California Insurance Code

§ 12404

INS § 12404 Effective Jan 1, 2009Div. 2 · Part 6 · Ch. 1 · Art. 6

Statute text

(a)It is unlawful for any title insurer, underwritten title company or controlled escrow company to pay, directly or indirectly, any commission, compensation, or other consideration to any person as an inducement for the placement or referral of title business. Actual placement or referral of title business is not a precondition to a violation of this section, whether the violation is or is not a per se violation pursuant to subdivision (c).

(b)For purposes of this section, the following definitions are applicable:

(1)“Compensating balance” is a balance maintained in a lending institution by any title insurer, underwritten title company, or controlled escrow company for the express or implied purpose of influencing the extension of credit to a third party or the provision of goods, services, or benefits to a third party as an inducement for the placement or referral of title business by a third party.

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Legislative history

Amended by Stats. 2008, Ch. 280, Sec. 1. Effective January 1, 2009.