Rhode Island General Laws 27-2.6-15. Favored agent of title insurer
A title insurer shall not participate in any transaction in which it has actual knowledge that a producer or other person requires, directly or indirectly, or through any trustee, director, officer, agent, employee or affiliate, as a condition, agreement or understanding to selling or furnishing any other person a loan, or loan extension, credit, sale, property, contract, lease or service, that the other person shall place a title insurance policy of any kind with the title insurer or through a particular title insurance agent.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
Terms Used In Rhode Island General Laws 27-2.6-15
- Affiliate: means a specific person that directly, or indirectly through one or more intermediaries, controls, or is controlled by or is under common control with the person specified. See Rhode Island General Laws 27-2.6-3
- agent: means an authorized person, other than a bona fide employee of the title insurer who, on behalf of the title insurer, performs the following acts, in conjunction with the issuance of a title insurance report or policy:
(i) Determines insurability and issues title insurance reports or policies, or both, based upon the performance or review of a search or abstract of title; and
(ii) Performs one or more of the following functions:
(A) Collects or disburses premiums, escrow or security deposits or other funds;
(B) Handles escrows, settlements or closings;
(C) Solicits or negotiates title insurance business; or
(D) Records closing documents. See Rhode Island General Laws 27-2.6-3
- Contract: A legal written agreement that becomes binding when signed.
- insurer: means a company organized under laws of this state for the purpose of transacting the business of title insurance and any foreign or non-United States title insurer licensed in this state to transact the business of title insurance. See Rhode Island General Laws 27-2.6-3
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: means any natural person, partnership, association, cooperative, corporation, trust or other legal entity. See Rhode Island General Laws 27-2.6-3
- policy: means a contract insuring or indemnifying owners of, or other persons lawfully interested in, real or personal property or any interest in real property, against loss or damage arising from any or all of the following conditions existing and not excepted or excluded:
(i) Defects in or liens or encumbrances on the insured title;
(ii) Unmarketability of the insured title;
(iii) Invalidity, lack of priority or unenforceability of liens or encumbrances on the stated property;
(iv) Lack of legal right of access to the land; or
(v) Unenforceability of rights in title to the land. See Rhode Island General Laws 27-2.6-3
- Producer: means any person, including any officer, director or owner of five percent (5%) or more of the equity or capital of any person, engaged in this state in the trade, business, occupation or profession of:
(i) Buying or selling interests in real property;
(ii) Making loans secured by interests in real property; or
(iii) Acting as broker, agent, representative or attorney or a person who buys or sells any interest in real property or who lends or borrows money with the interest as security. See Rhode Island General Laws 27-2.6-3
- Trustee: A person or institution holding and administering property in trust.