NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A362
SPONSOR: Weprin TITLE OF BILL:
An act in relation to directing the superintendent of financial services
to conduct a study and issue a report regarding title insurance premium
rates
PURPOSE OR GENERAL IDEA OF BILL:
It authorizes the state superintendent of insurance to conduct a study
and make recommendations on title insurance premium rates in New York
State.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1.1: The superintendent of insurance is hereby authorized and
directed to conduct a comprehensive study on title insurance programs.
The workers' compensation law is amended to add a new subdivision 6.
Section 1.2: Within a year of the effective date of the act the super-
intendent shall issue a report to the governor and the legislature that
shall include but not be limited to a.) an analysis of title insurance
premiums in New York State; b.) steps that can be take n to reduce such
rates; and c.) what service charges are regularly added to customers'
bills for title services.
JUSTIFICATION:
Title insurance guarantees homebuyers against claims of prior liense
gainst property they intend to purchase. Like other forms of ins it is
regulated by New York State. Currently, title insurance is available
only through private entities and costs citizens a n average of $1.2
billion, in order to guarantee payments of $50 million, according to
2007 statistics. Because title insurance is a requirement of home
purchase, citizens must accept the prices set by private industry, but
that require the approval of the New York State Insurance Department.
New York State should take a greater interest in protecting citizens
from the overpricing of something the state requires of home-buyers. For
example, the State of Iowa has prohibited the private sale of title
insurance, allowing the government to set rates and ensure that its
citizens are offered standard price. A study of current, private title
insurance pricing will allow the State superintendent of insurance to
properly assess what appropriate rates for title insurance should be
according to both the market and the actual costs of insuring title.
PRIOR LEGISLATIVE HISTORY:
02/09/17 referred to insurance
01/03/18 referred to insurance
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
362
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Insurance
AN ACT in relation to directing the superintendent of financial services
to conduct a study and issue a report regarding title insurance premi-
um rates
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. 1. The superintendent of financial services is hereby
2 authorized and directed to conduct a comprehensive study on title insur-
3 ance premium rates.
4 2. Within one year of the effective date of this act the superinten-
5 dent of financial services shall issue a report to the governor and the
6 legislature. Such study and report shall include but shall not be limit-
7 ed to:
8 a. an analysis of title insurance premium rates in New York state;
9 b. steps that can be taken to reduce such rates; and
10 c. what service charges are regularly added to customers' bills for
11 title services.
12 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01187-01-5
