S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7152
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 11, 2023
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to allowable expenses for
   title insurance corporations and title insurance agents
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subsection (d) of section 6409 of  the  insurance  law,  as
 amended  by  section  17 of part V of chapter 57 of the laws of 2014, is
 amended to read as follows:
   (d) (1) No title insurance corporation, title insurance agent, or  any
 other  person acting for or on behalf of the title insurance corporation
 or title insurance agent, shall offer or make, directly  or  indirectly,
 any  rebate of any portion of the fee, premium or charge made, or pay or
 give to any applicant, or to any person, firm, or corporation acting  as
 agent, representative, attorney, or employee of the owner, lessee, mort-
 gagee or the prospective owner, lessee, or mortgagee of the real proper-
 ty  or  any interest therein, either directly or indirectly, any commis-
 sion, 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, nor shall any applicant, or  any  person,  firm,  or
 corporation  acting  as  agent, representative, attorney, or employee of
 the owner, lessee, mortgagee or of the  prospective  owner,  lessee,  or
 mortgagee  of  the  real  property or anyone having any interest in real
 property knowingly receive, directly or indirectly, any such  rebate  or
 other consideration or valuable thing. Any person or entity who violates
 this  section  shall  be subject to a penalty of [(1)] (I) five thousand
 dollars; or [(2)] (II) up to ten times the amount of any compensation or
 rebate received or paid in the case of a title insurance corporation  or
 title insurance agent; or [(3)] (III) up to five times the amount of any
 compensation or rebate received or paid; or [(4)] (IV) in the case of an
 applicant  for  title  insurance that covers real property used predomi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09342-01-3
              

 A. 7152                             2
 
 nantly for residential purposes, and which consists  of  not  more  than
 four  dwelling  units,  other  than  hotels and motels, an amount not to
 exceed the compensation or rebate received or paid, when such  applicant
 knew  that it was a violation to receive such rebate, or other consider-
 ation or valuable thing; provided, however, if such  applicant  did  not
 know  that it was a violation to receive such rebate, or other consider-
 ation or valuable thing, he or she shall not be assessed a penalty under
 this [subdivision] SUBSECTION.
   (2) NOTHING CONTAINED IN PARAGRAPH  ONE  OF  THIS  SUBSECTION  TO  THE
 CONTRARY  SHALL PROHIBIT ANY TITLE INSURANCE CORPORATION OR TITLE INSUR-
 ANCE AGENT, OR ANY OTHER PERSON ACTING FOR OR ON  BEHALF  OF  THE  TITLE
 INSURANCE  CORPORATION  OR  TITLE  INSURANCE AGENT, FROM UNDERTAKING ANY
 USUAL AND CUSTOMARY MARKETING ACTIVITY AIMED AT ACQUAINTING PRESENT  AND
 PROSPECTIVE  CUSTOMERS  WITH  THE ADVANTAGES OF USING A PARTICULAR TITLE
 INSURER OR TITLE INSURANCE AGENT THAT ARE NOT INTENDED FOR  THE  PURPOSE
 OF  A  REWARD  FOR  THE FUTURE PLACEMENT OF, OR THE PAST PLACEMENT, OF A
 PARTICULAR PIECE OF TITLE INSURANCE BUSINESS,  INCLUDING  THE  FOLLOWING
 EXPRESSLY PERMITTED ACTIVITIES:
   (I)  ADVERTISING  OR  MARKETING IN ANY PUBLICATION, EVENT OR MEDIA, AT
 MARKET RATES, INCLUDING  SPONSORSHIPS,  ADVERTISING  GIFTS,  PROMOTIONAL
 ITEMS AND CONSUMABLES;
   (II)  MEALS  AND BEVERAGES WITH PRESENT OR PROSPECTIVE CUSTOMERS WHERE
 ONE OR MORE EMPLOYEES OR REPRESENTATIVES OF THE TITLE  INSURANCE  CORPO-
 RATION OR TITLE INSURANCE AGENT ARE PRESENT AND TITLE INSURANCE BUSINESS
 IS DISCUSSED;
   (III) CONTINUING LEGAL EDUCATION COURSE MATERIALS OR INSTRUCTION; AND
   (IV)  CHARITABLE  CONTRIBUTIONS  IN  THE  NAME  OF THE TITLE INSURANCE
 CORPORATION OR TITLE INSURANCE AGENT.
   NOTWITHSTANDING THE PROVISIONS OF THIS PARAGRAPH, NO  TITLE  INSURANCE
 CORPORATION  OR TITLE INSURANCE AGENT, OR ANY OTHER PERSON ACTING FOR OR
 ON BEHALF OF A TITLE INSURANCE  CORPORATION  OR  TITLE  INSURANCE  AGENT
 SHALL  UNDERTAKE  ANY  EXPENSES  FOR PROVIDING VACATIONS, TRIPS, TRAVEL,
 GIFTS, GIFT CARDS, GIFT CERTIFICATES OR OTHER THING OF SPECIFIC MONETARY
 VALUE TO ANY PRESENT AND PROSPECTIVE CUSTOMERS.
   § 2. This act shall take effect immediately.