State Codes and Statutes

Statutes > Connecticut > Title38a > Chap700a > Sec38a-416

      Sec. 38a-416. Disclosure of financial interest. (a) No title insurer or title insurance agent may accept any order for, issue a title insurance policy to, or provide services to, an applicant if it knows or has reason to believe that the applicant was referred to it by any producer of title insurance business or by any associate of such producer, where the producer, the associate or both, have a financial interest in the title insurer or title agent to which business is referred unless the producer has disclosed to the buyer, seller, lender, the financial interest of the producer of title insurance business or associate referring the title insurance business. The disclosure must be made in writing on forms prescribed by the commissioner. The title insurer shall maintain the disclosure forms for a period of three years.

      (b) Each title insurer and title agent shall file with the commissioner on forms prescribed by the commissioner a report setting forth the names and addresses of those persons, if any, who have had a financial interest in the title insurer or title agent during the calendar year, who are known or reasonably believed by the title insurer to be producers of title business or associates of producers. Each title insurer licensed on October 1, 1990, shall file the report required under this subsection within ninety days after October 1, 1990. Each title insurer shall file the report required under this subsection with its application for a license and at any time there is a change in the information provided in the last report.

      (c) No title insurer or title agent may accept an order for title insurance business, issue a title insurance policy or receive or retain any premium, or charge in connection with any transaction if (1) the title insurer or title agent knows or has reason to believe that the transaction will constitute controlled business for that title insurer and (2) twenty per cent or more of the gross operating revenue of that title insurer in the calendar year in which the transaction takes place is derived from controlled business.

      (d) For purposes of subsection (c) of this section, the percentage limitation set forth in subdivision (2) of subsection (c) shall be eighty per cent in the first calendar year after October 1, 1990, sixty per cent in the second calendar year after October 1, 1990, forty per cent in the third calendar year after October 1, 1990, and twenty per cent in any later calendar year.

      (e) No license may be issued, renewed or continued for a title insurer or title agent who fails to comply with this section.

      (P.A. 90-218, S. 17.)