Prohibits title insurance corporations from making payments to lenders on title insurance claims when the transaction conveying such title is false or fraudulent.
STATE OF NEW YORK
________________________________________________________________________
7732
2025-2026 Regular Sessions
IN SENATE
May 2, 2025
___________
Introduced by Sen. BRISPORT -- 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 prohibiting title
insurance corporations from paying certain claims for fraudulent
conveyances
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "deed
2 theft: bank and lender accountability act".
3 § 2. Section 6408 of the insurance law is amended by adding a new
4 subsection (e) to read as follows:
5 (e) Notwithstanding any other provisions of this article, no person,
6 firm, association or corporation organized or qualified under this arti-
7 cle shall make payments to a lender or mortgage lender on claims based
8 on a title insurance policy issued by such person, firm, association, or
9 corporation when the transaction conveying such title is false or frau-
10 dulent.
11 § 3. This act shall take effect on the ninetieth day after it shall
12 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10523-01-5
