The Department of Financial Services (DFS), Office of Insurance Regulation, recently published an article to remind real estate professionals of the laws governing title insurance companies.
The giving of an inducement, or a thing of value, in return for the referral of title insurance business is a violation of Florida statutes. Florida Administrative Code, states “any ongoing or standing offer of gifts, compensation or special services to the same person or customer on a continuing basis as an inducement to referring title insurance transactions is prohibited.”
Florida Statutes do however provide for a licensed title insurer or its agent to give an article of merchandise for the purpose of advertising. Examples would include such items as a coffee mug or an umbrella with the insurer’s or agent’s name, logo, address or telephone number. The value of the article may not exceed $25.