New law prohibits title companies from providing free data

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New law prohibits title companies from providing free data
Posted by CC in OC on June 25, 2009 at 11:33 AM
In Reply to: Re: Changes in 'property profiles' posted by JK (the other JK) on June 25, 2009 at 11:12 AM
Senate Bill 133. Link:
http://www.clta.org/e-news/sep2008/sb_133_bill_20080826_enrolled.pdf
Pertinent portion:
SECTION 1. Section 12404 of the Insurance Code is amended
to read:
12404. (a)   It is unlawful for any title insurer, underwritten
title company or controlled escrow company to pay, directly or
indirectly, any commission, compensation, or other consideration
to any person as an inducement for the placement or referral of
title business. Actual placement or referral of title business is not
a precondition to a violation of this section, whether the violation
is or is not a per se violation pursuant to subdivision (c). [...]
(3)  “Title business” means the “business of title insurance” as
defined in Section 12340.3, and includes, but is not limited to, the
offering of title insurance, escrow, or other services by a title
insurer, underwritten title company, or controlled escrow company.
(c)  The following activities, whether performed directly or
indirectly, are deemed per se inducements for the placement or
referral of title insurance business by any person and are unlawful:
(1)  Paying or offering to pay, furnishing or offering to furnish,
or providing or offering to provide assistance with the business
expenses of any person, including, but not limited to, rent,
employee salaries, furniture, copiers, facsimile machines,
automobiles, telephone services or equipment, or computers.
(2)  Providing or offering to provide any form of consideration
intended for the benefit of any person, including cash, below
market rate loans, automobile charges, or merchandise or
merchandise credits. [...]
(3)  Other expenditures for a person, as permitted by the
Department of Insurance by regulation.
(e)  The provision or payment of any form of consideration as
an inducement for the placement or referral of title business not
specifically set forth in this section shall not be presumed lawful
merely because they are not specifically prohibited.

Follow Ups:

What part of that law says they can't provide free data? (nt) JK (the other JK) 12:01 AM, 06/25/09 (12)

First American Title interprets the prohibition to include data CC in OC 12:46 AM, 06/25/09 (1)

Re: First American Title interprets the prohibition to include data JK (the other JK) 3:28 PM, 06/25/09 (0)

If you use CC logic, I guess you wouldn't be able to get a prelim, either. JK (the other JK) 12:06 AM, 06/25/09 (9)

Re: If you use CC logic, I guess you wouldn't be able to get a prelim, either. Rob 3:35 PM, 06/25/09 (8)

Show me a link where any Title company has been fined for giving access to data? JK (the other JK) 3:58 PM, 06/25/09 (7)

prelims, etc. Kristine-CA 10:28 PM, 06/30/09 (0)

I'm not much of a link-meister... Rick, the Probate Guy 7:45 AM, 06/27/09 (0)

Re: Show me a link where any Title company has been fined for giving access to data? Rob 4:53 PM, 06/25/09 (4)

We are in agreement that you lied. JK (the other JK) 6:58 PM, 06/29/09 (0)

Re: Show me a link where any Title company has been fined for giving access to data? bukzin 6:37 PM, 06/29/09 (0)

I'm not a member of that site. Maybe you can cut & paste the text. (nt) JK (the other JK) 10:16 AM, 06/27/09 (1)

Here is that article bukzin 8:46 PM, 06/30/09 (0)

Post a Followup:

Name : E-Mail : Subject :
Comments: : Senate Bill 133. Link: : http://www.clta.org/e-news/sep2008/sb_133_bill_20080826_enrolled.pdf : Pertinent portion: : SECTION 1. Section 12404 of the Insurance Code is amended : to read: : 12404. (a)   It is unlawful for any title insurer, underwritten : title company or controlled escrow company to pay, directly or : indirectly, any commission, compensation, or other consideration : to any person as an inducement for the placement or referral of : title business. Actual placement or referral of title business is not : a precondition to a violation of this section, whether the violation : is or is not a per se violation pursuant to subdivision (c). [...] : (3)  “Title business” means the “business of title insurance” as : defined in Section 12340.3, and includes, but is not limited to, the : offering of title insurance, escrow, or other services by a title : insurer, underwritten title company, or controlled escrow company. : (c)  The following activities, whether performed directly or : indirectly, are deemed per se inducements for the placement or : referral of title insurance business by any person and are unlawful: : (1)  Paying or offering to pay, furnishing or offering to furnish, : or providing or offering to provide assistance with the business : expenses of any person, including, but not limited to, rent, : employee salaries, furniture, copiers, facsimile machines, : automobiles, telephone services or equipment, or computers. : (2)  Providing or offering to provide any form of consideration : intended for the benefit of any person, including cash, below : market rate loans, automobile charges, or merchandise or : merchandise credits. [...] : (3)  Other expenditures for a person, as permitted by the : Department of Insurance by regulation. : (e)  The provision or payment of any form of consideration as : an inducement for the placement or referral of title business not : specifically set forth in this section shall not be presumed lawful : merely because they are not specifically prohibited.

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