Division of Insurance - Regulation 3-5-1

BE INFORMED. Be PREPARED. BE COMPLIANT.

3-5-1 Document links:

- Repealed and Repromulgated in Full Regulation 3-5-1

- Repealed and Repromulgated in Full Regulation 3-5-1 (REDLINE VERSION)

- 3-5-1 FAQ

The upcoming revisions to Regulation 3-5-1 are effective May 1st 2010, highlighted below are areas that will generate the most change to current practices.

1. Section 5: Rates & Fees

a. All new or amended rates and fees require concurrent filing of a justification. “Fees” include charges for Ownership and Encumbrance Reports.  HTCO will be filing fees for Ownership and Encumbrance reports which will be effective May 1st, 2010.

2. Section 6: Standards of Conduct

a. It is an inducement to furnish a TBD commitment without a charge that bears a reasonable relation to the cost of production of the TBD commitment.  The charge must be filed and justified.  A company may credit this charge to the final premiums or fees paid upon the consummation of the transaction contemplated by the commitment.

b. All costs associated with classes, seminars, conventions, or any forms of continuing education for the benefit of any settlement producer are an inducement. The exception to the rule is for  education classes related to title or escrow, provided by and taught by the title company.  Any fees paid to instructors that are for title or escrow related classes must be paid by the class participant directly to the instructor. HTCO will continue to provide compliant educational opportunities for our customers.

c. It is an inducement to furnish, or subsidize through a third party, information farm packages, O&Es, information kits or similar packages without charging and attempting to collect for the actual cost of the work performed and the material furnished. Fees for services provided are forthcoming.

d. A title company may furnish a single copy of the last recorded vesting deed for a parcel to a settlement producer without charge as long as the document is provided as presented by the public records without anything of material value added to the information and the document furnished contains no advertising or promotional material on behalf of the settlement producer

 

 

Heritage Title Company is committed to providing information, tools, services and products that will support your business and meet all regulatory standards.