2012 New York Consolidated Laws
ISC - Insurance
Article 64 - (6401 - 6411) TITLE INSURANCE CORPORATIONS
6409 - Filing of policy forms; rates; classification of risks; commissions and rebates prohibited.

 
    §  6409.  Filing  of  policy  forms;  rates;  classification of risks;
  commissions and rebates prohibited. (a) No title insurance policy  shall
  be  issued  or  delivered  in this state, unless and until a copy of the
  form thereof shall have been  filed  with  the  superintendent  for  his
  information.
    (b)   Every   title   insurance   corporation   shall  file  with  the
  superintendent its rate manual, if any, its basic schedule of rates  and
  classification  of  risks,  its rating plan and rules in connection with
  the writing or  issuance  of  policies  of  title  insurance  and  shall
  thereafter  likewise  file any changes therein. After any such filing no
  such corporation shall, in connection with the writing  or  issuance  of
  any  such  policy,  deviate from the rates, classifications of risks and
  rules last filed by it, either by making any reduction in rates  without
  having   filed   the   same  as  herein  provided,  or  by  way  of  any
  discriminations in favor of or against any insured.  The  superintendent
  shall  have the powers specified in article twenty-three of this chapter
  applicable to title insurers.
    (c) Notwithstanding any other provision of this article,  every  title
  insurance  company  shall  be  required  to  offer, at or prior to title
  closing, an  optional  policy  form  which  will  insure  the  title  of
  owner-occupied real property used predominantly for residential purposes
  which  consists of not more than four dwelling units for an amount equal
  to the market value of the property at the time a  loss  is  discovered.
  Such  policy  form  shall  be  filed with the superintendent pursuant to
  subsection (a) of this section. Rates for such coverage shall  be  filed
  pursuant to subsection (b) of this section.
    (d)  No  title insurance corporation or any other person acting for or
  on behalf of it, shall make any  rebate  of  any  portion  of  the  fee,
  premium  or  charge made, or pay or give to any applicant for insurance,
  or to any person, firm, or corporation acting as agent,  representative,
  attorney, or employee of the owner, lessee, mortgagee or the prospective
  owner,  lessee,  or  mortgagee  of  the  real  property  or any interest
  therein, either directly or indirectly, any commission, any part of  its
  fees  or  charges,  or  any other consideration or valuable thing, as an
  inducement for, or as compensation for, any  title  insurance  business.
  Any person or entity who accepts or receives such a commission or rebate
  shall  be  subject  to  a  penalty  equal to the greater of one thousand
  dollars or five times the amount thereof.
    (e) Premium rates for  coverage  shall  fully  reflect  the  foregoing
  prohibitions of subsection (d) hereof.