Bulletin 2004-9

420 SW 9 TH STREET TOPEKA, KANSAS 66612-1678 PHONE 785.296.3071 FAX 785.291.3673 CONSUMER HOTLINE 1.800.432.2484 WEBSITE www.ksinsurance.org Bulletin 2004-9 TO: All Title Insurance Companies FROM: Sandy Praeger Commissioner of Insurance DATE: November 1, 2004 RE: Controlled Business Arrangement Disclosure L. 2004, ch. 69, sec. 14(f) prohibits title insurers and title agents from accepting any order for, issue a title insurance policy to, or provide services to, an applicant if it knows or has reason to believe that the applicant was referred to it by any producer of title business or by any associate of such producer, where the producer, the associate, or both, have a financial interest in the title insurer or title agent to which business is referred unless the producer has disclosed to the buyer, seller and lender the financial interest of the producer of title business or associate referring the title insurance business. The Kansas Insurance Department has reviewed this law and it is our opinion that the following disclosure fulfills the requirements of this law: KANSAS CONTROLLED BUSINESS ARRANGEMENT DISCLOSURE In accordance with Kansas Law, before any commitment can be made to a title insurer or agent to perform services related to this real estate transaction in which you are involved, 2 the following written disclosure must be made: ____________________________ has a ___________% financial interest in (Name of producer of title business) ____________________________. (Name of title insurer/agency) Because of this financial interest, a referral to _________________________ (Name of title insurer/agency) to perform services related to this real estate transaction will provide _____________________________ a financial benefit. (Name of producer of title business) The following is a written estimate of charges by ________________________ (Name of title insurer/agency) for the following services: Owner’s policy of title insurance $____________________ Loan policy of title insurance $____________________ Escrow settlement services $____________________ Loan closing services $____________________ You are NOT required to use the services of _______________________ as a (Name of title insurer/agency) condition of this real estate transaction and may select any other title company to perform any or all of the services set forth above. You are free to shop around and determine that you are receiving the best services and best rates for services related to this real estate transaction. Other title companies and their telephone numbers which perform the same services as the above noted title insurer/agency and which operate from a physical location in ___________________ County are: NAME OF TITLE INSURER/AGENCY TELEPHONE NUMBER 1) ___________________________ ____________________ 2) ___________________________ ____________________ 3 3) ___________________________ ____________________ ACKNOWLEDGEMENT ___________________________________ DATE: _________________ Signature of Consumer If you have any questions regarding this Bulletin, please contact Marty Hazen at 420 SW 9th Street, Topeka, Kansas, 66612, via phone at (785)296-3405, or via email at mjhazen@ksinsurance.org.