44-19,112. Affiliated business provisions.

(1) Whenever title insurance business to be written constitutes affiliated business, prior to commencing the transaction, the title insurance agent shall ensure that its customer has been provided with a written disclosure of the existence of the affiliated business arrangement and a written estimate of the charge or range of charges generally made for the title insurance services provided by the title insurance agent.

(2) The director may establish rules for use by all title insurance agents in the recording and reporting of the title insurance agent's owners and of the title insurance agent's ownership interests in other persons or businesses and of material transactions between the parties.

(3) The director shall require each title insurance agent to file, on forms prescribed by the director, reports setting forth the names and addresses of those persons, if any, that have a financial interest in the title insurance agent and who the title insurance agent knows or has reason to believe are producers of title insurance business or associates of producers of title insurance business.

(4) Nothing in the Title Insurance Agent Act shall be construed as prohibiting affiliated business arrangements in the provision of title insurance business so long as:

(a) The title insurance agent or party making a referral constituting affiliated business, at or prior to the time of the referral, discloses the arrangement and, in connection with the referral, provides the person being referred with a written estimate of the charge or range of charges likely to be assessed and otherwise complies with the disclosure obligations of this section;

(b) The person being referred is not required to use a specified title insurance agent or title insurer; and

(c) The only thing of value that is received by the title insurance agent or party making the referral, other than payments otherwise permitted, is a return on an ownership interest. For purposes of this subsection, the terms required use and return on an ownership interest have the meaning accorded to them under the federal Real Estate Settlement Procedures Act of 1974, as amended, 12 U.S.C. 2601, and Regulation X, 24 C.F.R. 3500 et seq.

Source