The Florida Department of Financial Services, Division of Insurance Agent and Agency Services, recently adopted new regulatory provisions regarding unlawful rebates and inducements relating to title insurance that constitute unfair or deceptive acts or practices. The new provisions, added to the Florida Administrative Code, are intended to conform with certain provisions in the Florida Statutes, which clarify that the reimbursement of premium, fees, or costs relating to title insurance transactions is an unlawful rebate.
Specifically, the new provisions in the Florida Administrative Code, rule 69B-186.010, provide that the following activities constitute inducements for the sale, placement or referral of title insurance business in violation of Florida law: (i) waiving of fees, costs, or premium for title updates or endorsements requested after the issuance of the title insurance policy; and (ii) assuming any party’s responsibility to provide refunds to consumers under applicable laws and regulations.
In addition, a licensed and appointed title insurance agent is permitted to affix a notice to any contract or agreement stating, “The terms of this contract are agreed to, but only to the extent that they do not violate the provisions of rule 69B-186.010, F.A.C., or paragraph 626.9541(1)(h), F.S.,” or substantially similar language.
These provisions became effective on May 13, 2018, and are available here.