RULES AND REGULATIONS
INSURANCE DEPARTMENT
[31 PA. CODE CH. 125]
Title Insurance Rebates
[29 Pa.B. 3209] The Insurance Department (Department) amends Chapter 125 (relating to title insurance rebates) to read as set forth at 28 Pa.B. 4796 (September 26, 1998) and in Annex A.
The rulemaking amends Chapter 125 to make it consistent with the act of December 21, 1995 (P. L. 714, No. 79) (Act 79). This chapter, originally adopted in 1968, identified and defined prohibited rebating and inducement activities associated with title insurance transactions.
Statutory Authority
This chapter is amended under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); sections 701(4) and 731 of the act of May 17, 1921 (P. L. 682, No. 284) (40 P. S. §§ 910-1(4) and 910-31); and sections 635 and 636 of the act of May 17, 1921 (P. L. 789. No. 285) (40 P. S. §§ 275 and 276).
Comments
Notice of the proposed rulemaking was published at 28 Pa.B. 4796 with a 30-day public comment period.
No comments were received from the standing committees or the Independent Regulatory Review Commission (IRRC). Comments regarding the proposed amendments were received during the 30-day comment period from the Insurance Federation of Pennsylvania, Inc. (IFP). IFP endorsed the amendment as recommended.
The Department in preparing this final-form rulemaking noted that the reference in § 125.4 (relating to participation fees) to cash commissions should have been removed due to the previous deletion of § 125.1(b) (relating to prohibited rebates and inducements). An editorial change has been made to correct the oversight.
Fiscal Impact
There is no fiscal impact as a result of this final-form rulemaking.
Paperwork
This final-form rulemaking will affect all licensed title insurers, agents and approved attorneys in this Commonwealth.
Persons Regulated
This final-form rulemaking applies to all title insurance companies licensed by the Commissioner to transact business in this Commonwealth.
Contact Person
Any questions regarding this final-form rulemaking, should be directed to Peter J. Salvatore, Regulatory Coordinator, Office of Special Projects, 1326 Strawberry Square, Harrisburg, PA 17120, (717) 787-4429, or e-mail psalvato@ins.state.pa.us.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 14, 1998, the Department submitted a copy of this final-form rulemaking to IRRC and to the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition to the submitted final-form rulemaking, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the agency in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of that material is available to the public upon request.
In preparing this final-form rulemaking, the Department considered all comments received from IRRC, the Committees and the public. This final-form rulemaking was deemed approved by the House and Senate Committees on May 18, 1999. In accordance with section 5a(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)), IRRC met on May 20, 1999, and deemed approved the regulation in accordance with section 5a(e) of the Regulatory Review Act.
Findings
The Commissioner finds that:
(1) Public notice of intention to adopt this rulemaking as amended by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The adoption of this rulemaking in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statutes.
Order
The Commissioner, acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 31 Pa. Code Chapter 125, are amended by amending §§ 125.1 and 125.3 and by deleting §§ 125.5--125.9 to read as set forth at 28 Pa.B. 4796 and by amending § 125.4 to read as set forth in Annex A.
(b) The Commissioner shall submit this order, 28 Pa.B. 4796 and Annex A to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.
(c) The Commissioner shall certify this order, 28 Pa.B. 4796 and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) The amendments adopted by this order shall take effect upon final publication in the Pennsylvania Bulletin.
M. DIANE KOKEN,
Insurance Commissioner(Editor's Note: The amendment of § 125.4, amended in this document, was not included in the proposal at 29 Pa.B. 4796. For the text of the order of the Independent Regulatory Review Commission relating to this document, see 29 Pa.B. 2933 (June 6, 1999).)
Fiscal Note: Fiscal Note 11-175 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 31. INSURANCE
PART VIII. MISCELLANEOUS PROVISIONS
CHAPTER 125. TITLE INSURANCE REBATES § 125.4. Participation in fees.
Participation by a person in any of the fees charged by a title insurance company or agent thereof for title insurance, including, but not limited to, charges for special insurance, is an illegal rebate and inducement.
[Pa.B. Doc. No. 99-1007. Filed for public inspection June 25, 1999, 9:00 a.m.]
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