Chapter 650 of the Laws of 2022

Bulletin 22-12 Date: September 13, 2022 To: All Title Insurance Producers and Title Insurers Re: Chapter 650 of the Laws of 2022 The Maryland Insurance Administration (“the Administration”) is issuing this Bulletin to remind title insurance producers of prohibited practices in light of the changes to the Business Occupations and Professions Article of the Maryland Annotated Code. Chapter 650 of the Laws of 2022, which takes effect on October 1, 2022, revises § 17- 604 of the Business Occupations and Professions Article to add: (c) During the settlement of property, a licensed title insurance producer may, on behalf of a real estate broker and in accordance with a written disbursement authorization provided by the real estate broker, pay compensation to: (1) An associate real estate broker; (2) A real estate salesperson; or (3) A business entity formed under § 17-512 of this title. The Administration reminds licensees that this does not alter the provisions of the Insurance Article. In that regard, the Administration reminds title producers of the following provision: Section 27-212 of the Insurance Article states in part: (b) Except to the extent provided for an applicable filing with the Commissioner as provided by law, an insurer, employee or representative of an insurer or insurance producer may not pay, allow, give or offer to pay, allow, or give directly or indirectly as an inducement to insurance or after insurance has become effective: (1) a rebate, discount, abatement, credit, or reduction of the premium stated in the policy; (2) a special favor or advantage in the dividends or other benefits to accrue on the policy; or KATHLEEN A. BIRRANE Commissioner GREGORY M. DERWART Deputy Commissioner LARRY HOGAN Governor BOYD K. RUTHERFORD Lt. Governor 200 St. Paul Place, Suite 2700 Baltimore, Maryland 21202 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov