Title Insurance January 2019

13 Unlawful Rebates and Commissions An unlawful rebate occurs when a lender or real estate broker or home builder receives free or discounted services, property, or money in exchange for steering business to a title company. Such rebates act to inflate title insurance premium rates for all consumers. It is also unlawful if a title insurer, underwritten title company, or a controlled escrow company offers you a fee or charge that is less than the currently effective schedule for fees and charges filed with the California Department of Insurance (CDI). The filed schedule is used as a basis for comparison between companies. If a title insurer offers a rebate from the scheduled fees and charges, it results in a discriminatory practice, which is unfair to all consumers. Like rebating, it is unlawful to pay a commission indirectly or directly to any person as a means of generating a referral or actual placement of title insurance. If either of these activities involves a real estate broker, you can report this activity to the Department of Consumer Affairs Bureau of Real Estate, and any other appropriate government agencies. If you suspect that a title insurance company, escrow company or title insurer is offering unlawful rebates or commissions, you can report this suspected activity to the California Department of Insurance. If you have a question, problem, or dispute with a title insurance company, contact the CDI for assistance.