S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8404

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 19, 2009
                               ___________

Introduced  by M. of A. BRADLEY -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance  law,  in  relation  to  disclosing  title
  service  charges  by  a  title insurance provider to the customer upon
  receipt of an application for a title

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new section 6412
to read as follows:
  S 6412. DISCLOSURE OF TITLE  SERVICE  CHARGES  BY  A  TITLE  INSURANCE
PROVIDER.  (A)  DEFINITIONS. (1) "TITLE INSURANCE PROVIDER" SHALL MEAN A
TITLE INSURANCE CORPORATION, AS DEFINED IN  SUBSECTION  (A)  OF  SECTION
SIXTY-FOUR HUNDRED ONE OF THIS ARTICLE, AND ANY AGENT, APPROVED ATTORNEY
OR  EXAMINING  COUNSEL  WHICH  IS  ISSUING  A TITLE INSURANCE POLICY, AS
DEFINED IN SUBSECTION (B) OF SECTION  SIXTY-FOUR  HUNDRED  ONE  OF  THIS
ARTICLE, ON BEHALF OF A TITLE INSURANCE CORPORATION.
  (2)  "TITLE  SERVICES"  OR  "TITLE  SERVICE"  SHALL MEAN EVERY SERVICE
ORDERED OR TO BE ORDERED BY A CUSTOMER FROM A TITLE INSURANCE  PROVIDER,
WHETHER  SUCH  SERVICE  IS  RENDERED  BY  A  TITLE INSURANCE PROVIDER OR
OBTAINED BY A TITLE INSURANCE PROVIDER THROUGH A THIRD PARTY, THE CHARGE
FOR WHICH IS IMPOSED ON A CUSTOMER AND IS NOT REGULATED BY  THE  DEPART-
MENT,  INCLUDING,  WITHOUT  LIMITATION,  THE  OBTAINING  OF GOVERNMENTAL
RECORDS, THE ORDERING OF A  SURVEY  OR  A  SURVEY  INSPECTION,  AND  THE
RECORDING  OR FILING OF INSTRUMENTS IN THE OFFICE OF A RECORDING OFFICER
AS DEFINED IN SECTION TWO HUNDRED NINETY OF THE REAL PROPERTY LAW OR  IN
ANY OTHER STATE, COUNTY OR MUNICIPAL OFFICE.
  (3) "SERVICE CHARGES" OR "SERVICE CHARGE" SHALL MEAN AN AMOUNT CHARGED
TO  A  CUSTOMER  BY A TITLE INSURANCE PROVIDER FOR PROVIDING ONE OR MORE
TITLE SERVICES; PROVIDED, HOWEVER, THAT "SERVICE  CHARGES"  OR  "SERVICE
CHARGE"  SHALL  NOT  INCLUDE  A CHARGE FOR THE SEARCH AND EXAMINATION OF
TITLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11759-03-9
              

A. 8404                             2

  (4) "APPLICANT" SHALL MEAN THE PERSON OR ENTITY ORDERING TITLE  INSUR-
ANCE OR TITLE SERVICES, OR THE DULY AUTHORIZED REPRESENTATIVE THEREOF.
  (5)  "CUSTOMER"  SHALL MEAN ANY PERSON OR ENTITY PAYING A TITLE INSUR-
ANCE PROVIDER TITLE INSURANCE PREMIUMS AND  SERVICE  CHARGES  FOR  TITLE
SERVICES  FOR  REAL PROPERTY IMPROVED BY A ONE-TO-FOUR FAMILY RESIDENCE,
OR THE DULY AUTHORIZED REPRESENTATIVE THEREOF.
  (B) ON RECEIPT OF AN APPLICATION FOR A POLICY OF TITLE  INSURANCE  FOR
REAL PROPERTY IMPROVED BY A ONE-TO-FOUR FAMILY RESIDENCE, A TITLE INSUR-
ANCE PROVIDER SHALL ISSUE TO THE APPLICANT A LIST OF SERVICE CHARGES FOR
ALL  TITLE  SERVICES APPLICABLE TO THE TRANSACTION.  THE TITLE INSURANCE
PROVIDER SHALL ONLY BE REQUIRED TO PROVIDE THE AMOUNTS OF SERVICE CHARG-
ES APPLICABLE TO THE TRANSACTION BASED UPON THE FACTS KNOWN TO THE TITLE
INSURANCE PROVIDER AT THE TIME OF THE APPLICATION.
  (C) A STATEMENT OF CHARGES ISSUED BY A TITLE INSURANCE PROVIDER  TO  A
CUSTOMER SHALL CLEARLY AND SEPARATELY ITEMIZE:
  (1)  EACH SERVICE CHARGE TO BE PAID BY A CUSTOMER TO A TITLE INSURANCE
PROVIDER, WHICH THE TITLE INSURANCE PROVIDER WILL PAY TO A  THIRD  PARTY
FOR TITLE SERVICES RENDERED BY SUCH THIRD PARTY;
  (2)  EACH SERVICE CHARGE TO BE PAID BY A CUSTOMER TO A TITLE INSURANCE
PROVIDER FOR TITLE SERVICES RENDERED BY SUCH TITLE  INSURANCE  PROVIDER;
AND
  (3) ANY OTHER SERVICE CHARGES IMPOSED BY A TITLE INSURANCE PROVIDER ON
A CUSTOMER FOR ANY OTHER TITLE SERVICE.
  (D)  IN  THE EVENT OF A WILLFUL FAILURE TO COMPLY WITH THIS SECTION, A
CUSTOMER SHALL BE ENTITLED TO RECOVER FROM THE TITLE INSURANCE  PROVIDER
RENDERING THE TITLE SERVICES THE LESSER OF:
  (1) FIFTEEN HUNDRED DOLLARS; OR
  (2)  THREE  TIMES  THE  AMOUNT  OF  EACH  SERVICE CHARGE BILLED TO THE
CUSTOMER IN VIOLATION OF THIS SECTION.
  (E) NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED AS PERMITTING
ANY PRACTICE OR CONDUCT OTHERWISE PROHIBITED BY LAW.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.