Authorizes superintendent of insurance to conduct study and make recommendations on title insurance premium rates in NYS.
TITLE OF BILL:
An act in relation to directing the superintendent of insurance to conduct a study and issue a report regarding title insurance premium rates
PURPOSE OR GENERAL IDEA OF BILL:
It authorizes the state superintendent of insurance to conduct a study and make recommendations on title insurance premium rates in New York State.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1.1: The superintendent of insurance is hereby authorized and directed to conduct a comprehensive study on title insurance programs.The workers' compensation law is amended to add a new subdivision 6.
Section 1.2: Within a year of the effective date of the act the superintendent shall issue a report to the governor and the legislature that shall include but not be limited to a.) an analysis of title insurance premiums in New York State; b.) steps that can be taken to reduce such rates; and c.) what service charges are regularly added to customers' bills for title services.
Title insurance guarantees homebuyers against claims of prior liens against property they intend to purchase. Like other forms of insurance, it is regulated by New York State. currently, title insurance is available only through private entities and costs citizens an average of $1.2 billion, in order to guarantee payments of $50 million, according to 2007 statistics. Because title insurance is a requirement of home purchase, citizens must accept the prices set by private industry, but that require the approval of the New York State Insurance Department. New York State should take a greater interest in protecting citizens from the overpricing of something the state requires of home buyers. For example, the State of Iowa has prohibited the private sale of title insurance, allowing the government to set rates and ensure that its citizens are offered standard price. A study of current, private title insurance pricing will allow the State superintendent of insurance to properly assess what appropriate rates for title insurance should be according to both the market and the actual costs of insuring title.
PRIOR LEGISLATIVE HISTORY:
S.6289 2010: Held in Insurance Committee.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3571 2011-2012 Regular Sessions IN SENATE February 25, 2011 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT in relation to directing the superintendent of insurance to conduct a study and issue a report regarding title insurance premium rates THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. 1. The superintendent of insurance is hereby authorized and directed to conduct a comprehensive study on title insurance premium rates. 2. Within one year of the effective date of this act the superinten- dent of insurance shall issue a report to the governor and the legisla- ture. Such study and report shall include but shall not be limited to: a. an analysis of title insurance premium rates in New York state; b. steps that can be taken to reduce such rates; and c. what service charges are regularly added to customers' bills for title services. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05047-01-1