3 Colo. Code Regs. § 702-8-1-1-7

Current through Register Vol. 48, No. 1, January 10, 2025

Section 3 CCR 702-8-1-1-7 - Mandatory Obligations and Prohibited Fees

A. General.

1. Agreements between the title insurance companies and title insurance agents/title insurance agencies must include a commission schedule which lists the title insurance agent's and title insurance agency's compensation for soliciting and acquiring title insurance business.

2. Title insurance companies subsequently include these commissions and/or other acquisition expenses in their comprehensive rate filings and must justify these expenses.

3. If title insurance agents or title insurance agencies charge a separate fee for the title insurance product in addition to those included as commissions in the title insurance companies' rate filings, the premiums could be considered excessive.

B. Title insurance agents, title insurance agencies, and title insurance companies are prohibited from charging separate fees in addition to those contemplated in the rate filing and included in their commissions for the solicitation and procurement of insurance products or for servicing existing insurance policies. These services may include, but are not limited to:

1. Quoting premiums;

2. Issuing or signing policies;

3. Examinations and searches of title and mailing policies;

4. Correspondence and other bookkeeping and clerical work; and

5. Issuing certificates of insurance and endorsements, except those endorsements placed on file with the Division.

C. Insurance producers are also prohibited from charging fees for purchasing new computer equipment, adding new sales facilities, or other overhead expenses associated with the solicitation or procurement of insurance products or the servicing of existing insurance policies.

D. The prohibitions in this Section 7 shall not apply to insurance wholesale intermediaries.

E. This Section does not prohibit title insurance entities from charging fees for the closing and settlement of a real estate transaction.

F. Title insurance companies may file a properly justified rate with the Division that allows for an increased rate for transactions that require additional search or resources. Title insurance agents and title insurance agencies must charge the rate the title insurance company has on file, if any. Title insurance agents and title insurance agencies are prohibited from charging a fee for extraordinary circumstances.

3 CCR 702-8-1-1-7

38 CR 17, September 10, 2015, effective 10/1/2015

39 CR 14, July 25, 2016, effective 8/15/2016

40 CR 03, February 10, 2017, effective 3/15/2017

41 CR 12, June 25, 2018, effective 7/15/2018

42 CR 14, July 25, 2019, effective 8/15/2019

43 CR 14, July 25, 2020, effective 8/15/2020

45 CR 16, August 25, 2022, effective 9/14/2022