Industry News

California to cap title insurance inducements at $25 a year

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California regulators plan to collect more detailed information on title insurers' affiliated businesses, and will prohibit title insurance marketers from spending more than $25 per year on gifts or other inducements for real estate professionals who are in a position to refer business to them. Insurance Commissioner Steve Poizner announced the planned regulatory reforms Monday in San Diego, where he addressed members of the California Land Title Association (CLTA) at their 101st annual convention. "Improper kickbacks and other excessive marketing costs are being passed directly onto the consumers," Poizner said in a statement, promising the state will soon release regulations aimed at "eliminating abuses and excess costs in the system." California law currently requires title insurance businesses to obtain more than 50 percent of their business from unaffiliated sources. The Department of Insurance will soon require companies to provide detailed infor...