S05093 Summary:

BILL NOS05093
 
SAME ASNo same as
 
SPONSORDEFRANCISCO
 
COSPNSR
 
MLTSPNSR
 
Add S6412, Ins L
 
Requires disclosure of title service charges by a title insurance provider to the customer upon receipt of an application for a title insurance policy.
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S05093 Actions:

BILL NOS05093
 
05/08/2013REFERRED TO INSURANCE
01/08/2014REFERRED TO INSURANCE
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S05093 Floor Votes:

There are no votes for this bill in this legislative session.
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S05093 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5093
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                       May 8, 2013
                                       ___________
 
        Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
          when printed to be committed to the Committee 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:
 
     1    Section  1.  The insurance law is amended by adding a new section 6412
     2  to read as follows:
     3    § 6412. Disclosure of title  service  charges  by  a  title  insurance
     4  provider.  (a)  Definitions. (1) "Title insurance provider" shall mean a
     5  title insurance corporation, as defined in subsection (a) of section six
     6  thousand four hundred one of  this  article,  and  any  agent,  approved
     7  attorney or examining counsel which is issuing a title insurance policy,
     8  as defined in subsection (b) of section six thousand four hundred one of
     9  this article, on behalf of a title insurance corporation.

    10    (2)  "Title  services"  or  "title  service"  shall mean every service
    11  ordered or to be ordered by a customer from a title insurance  provider,
    12  whether  such  service  is  rendered  by  a  title insurance provider or
    13  obtained by a title insurance provider through a third party, the charge
    14  for which is imposed on a customer and is not regulated by  the  depart-
    15  ment,  including,  without  limitation,  the  obtaining  of governmental
    16  records, the ordering of a  survey  or  a  survey  inspection,  and  the
    17  recording  or filing of instruments in the office of a recording officer
    18  as defined in section two hundred ninety of the real property law or  in
    19  any other state, county or municipal office.

    20    (3) "Service charges" or "service charge" shall mean an amount charged
    21  to  a  customer  by a title insurance provider for providing one or more
    22  title services; provided, however, that "service  charges"  or  "service
    23  charge"  shall  not  include  a charge for the search and examination of
    24  title.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06616-02-3

        S. 5093                             2
 
     1    (4) "Applicant" shall mean the person or entity ordering title  insur-
     2  ance or title services, or the duly authorized representative thereof.

     3    (5)  "Customer"  shall mean any person or entity paying a title insur-
     4  ance provider title insurance premiums and  service  charges  for  title
     5  services  for  real property improved by a one-to-four family residence,
     6  or the duly authorized representative thereof.
     7    (b) On receipt of an application for a policy of title  insurance  for
     8  real property improved by a one-to-four family residence, a title insur-
     9  ance provider shall issue to the applicant a list of service charges for
    10  all  title  services applicable to the transaction.  The title insurance
    11  provider shall only be required to provide the amounts of service charg-
    12  es applicable to the transaction based upon the facts known to the title
    13  insurance provider at the time of the application.

    14    (c) A statement of charges issued by a title insurance provider  to  a
    15  customer shall clearly and separately itemize:
    16    (1)  each service charge to be paid by a customer to a title insurance
    17  provider, which the title insurance provider will pay to a  third  party
    18  for title services rendered by such third party;
    19    (2)  each service charge to be paid by a customer to a title insurance
    20  provider for title services rendered by such title  insurance  provider;
    21  and
    22    (3) any other service charges imposed by a title insurance provider on
    23  a customer for any other title service.
    24    (d)  In  the event of a willful failure to comply with this section, a
    25  customer shall be entitled to recover from the title insurance  provider

    26  rendering the title services the lesser of:
    27    (1) fifteen hundred dollars; or
    28    (2)  three  times  the  amount  of  each  service charge billed to the
    29  customer in violation of this section.
    30    (e) Nothing contained in this section shall be construed as permitting
    31  any practice or conduct otherwise prohibited by law.
    32    § 2. This act shall take effect on the ninetieth day  after  it  shall
    33  have become a law.
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