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Source of Title Blog : New Jersey Legislation

Should We Allow Consumer Incentives on Title Insurance?
by Robert Franco | 2007/08/07

I have always thought of the filed insurance rates as a consumer protection device to keep title insurance companies from over-charging customers who normally do not select their title company. But... what if the title company wants to charge their customer LESS than the filed rate? Wouldn't that be good for consumers?

New Jersey Senate Commerce Committee is currently reviewing S-2229, which would allow title insurers and their agents to offer rebates, discounts, and other incentives to their consumers notwithstanding the filed rates. Currently, they may not "pay... as an inducement to insure, or after insurance has been affected, any rebate, discount, abatement, credit or reduction of premium or special favor, advantage, or other benefit.. or valuable consideration or inducement... not specified or provided for in the policy, except to the extent provided for in [the filed rates]."

S-2229 would add another exception for offers to a person purchasing title insurance, who is not required to use the offering title insurance provider, and it prohibits the savings from being added to any of the person's other costs.

According to an article on NJBIZ.COM the New Jersey Land Title Association opposes the bill, along with some area agents.

[read more...]

Categories: Competition, New Jersey Legislation, RESPA, Small Agents

Source of Title Blog :: 6 comments ::

Source of Title Blog

Robert A. FrancoThe focus of this blog will be on sharing my thoughts and concerns related to the small title agents and abstractors. The industry has changed dramatically over the past ten years and I believe that we are just seeing the beginning. As the evolution continues, what will become of the many small independent title professionals who have long been the cornerstone of the industry?

Robert A. Franco
SOURCE OF TITLE

 

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