NMSA 1978, 59A-16-17, unfair discrimination, rebates prohibited; other coverages

# STATE OF NEW MEXICO ## OFFICE OF SUPERINTENDENT OF INSURANCE Mailing Address: P.O. Box 1689, Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta, Room 428, Santa Fe, NM 87501 Main Phone: 505-827-4601; Main Fax 505-827-4734; Toll Free: 1-855-427-5674 www.osi.state.nm.us FILED 2015 MAY 28 AM 11:48 OF INSURANCE SUPERINTENDENT IN OFFICE OF SUPERINTENDENT OF INSURANCE John G. Franchini - 505.827.4299 DEPUTY SUPERINTENDENT Robert Doucette - 505.827.4439  TITLE BUREAU Otis Phillips Title Bureau Chief 505.827.4930 Bulletin 2015-020 May 28, 2015 TO: ALL TITLE INSURANCE AGENTS, AFFILIATES, AND DIRECT OPERATIONS COMPANIES AUTHORIZED TO TRANSACT BUSINESS IN NEW MEXICO RE: NMSA 1978, §59A-16-17, UNFAIR DISCRIMINATION, REBATES PROHIBITED; OTHER COVERAGES THE FOLLOWING BULLETIN is issued pursuant to NMSA 1978, §59A-2-8 and 13.1.2 NMAC. The purpose of this bulletin is to provide notice that, pursuant to the above referenced insurance laws and administrative rules, NMSA 1978, §59A-16-17.B shall be strictly enforced by the New Mexico Office of Superintendent of Insurance. This statute provides that: B. No title insurer or title insurance agent shall: (1) pay, directly or indirectly, to the insured or any person acting as agent, representative, attorney or employee of the owner, lessee, mortgagee, existing or prospective, of the real property, or interest therein, that is the subject matter of title insurance or as to which a service is to be performed any commission or part of its fee or charges or other consideration as inducement or compensation for the placing of any order for a title insurance policy of for performance of any escrow or other service by the insurer with respect thereto: (2) issue any policy or perform any service in connection with which it or any agent or other person has paid or contemplates paying any commission, rebate or inducement in violation of this section; s or other consideration as inducement or compensation for the placing of any order for a title insurance policy of for performance of any escrow or other service by the insurer with respect thereto: (2) issue any policy or perform any service in connection with which it or any agent or other person has paid or contemplates paying any commission, rebate or inducement in violation of this section; (3) give or receive, directly or indirectly, any consideration or thing of value for the referral of title insurance business or escrow or other service provided by a title insurer or title insurance agent unless otherwise permitted by regulation of the superintendent; or (4) enter into a reinsurance agreement with an affiliate of a real estate developer, real estate agency, mortgage lender or referrer of title business without the prior written approval of the superintendent. The New Mexico Office of Superintendent of Insurance shall investigate the use of any documents; including but not limited to, Marketing Service Agreements (MSA's), listing packages and preliminary binders; advertisements and any other marketing tool not specifically described in this Bulletin that are used to develop business in violation of this statute. In addition, the New Mexico Office of Superintendent of Insurance shall assess penalties for any violations of this statute pursuant to § NMSA 1978, 59A-1-18. For more information about this bulletin, please contact Otis Phillips, Title Bureau Chief at 505-827-4930. ISSUED at Santa Fe, New Mexico on May 28, 2015. John G. Franchini JOHN G. FRANCHINI Superintendent of Insurance