With 61 ayes and 0 nays,
the New York State Senate passed S6704
which provides a definition for “an inducement for, or as compensation for, any
title insurance business” in Insurance
Law 6409. The new definition allows title companies and agents
to continue usual and customary marketing activities such as taking clients out
for coffee or lunch. The only requirement is that these marketing expenses must
not be offered as a quid pro quo for a particular piece of title insurance
business.
Nonetheless, title
insurance companies and agents are still holding their breath as it is still in
the Assembly’s hands to approve A8467
and effectively ease Regulation 208’s prohibitions
on inducements for title insurance business.
You can track the
Assembly’s actions on A8647 through this link.
