Section R592-6-4 - Prohibited Unfair Methods of CompetitionA person identified in Section R592-6-2 who provides or offers to provide, directly or indirectly, any of the following benefits to any client has violated Section 31A-23a-402 and has engaged in an unfair method of competition.
(1) Waiving any charge, premium, or rate for insurance or services otherwise due and payable.(2) Furnishing services not related to a bona fide title insurance, escrow, settlement, or closing transaction without receiving fair market payment for the services provided.(3) Paying for, furnishing, or waiving all or any part of the rental or lease charge for space that is occupied by a client.(4) Renting or leasing space from a client at a rate that is excessive or inadequate when compared with rental or lease charges for comparable space in the same geographic area, or paying rental or lease charges based in whole or in part on the volume of business generated by the client.(5) Furnishing any part of a title producer's facilities, including conference rooms or meeting rooms, to a client or its trade association, for anything other than providing escrow or title services, or related meetings, without receiving a fair rental or lease charge comparable to other rental or lease charges for facilities in the same geographic area.(6) Furnishing all or any part of the time or productive effort of any employee of the title producer, including a secretary, clerk, messenger, or escrow officer, to any client when such time or productive effort is not reasonably related to a bona fide title insurance, escrow, settlement, or closing transaction.(7) Paying a client or an employee of a client for a referral of business. (8)(a) Payment or pre-payment of the following:(i) fees or charges of a professional, including an appraiser, surveyor, engineer, or attorney, whose services are required by any party or client to structure or complete a particular transaction; or(ii) fees or charges of a client or party to the transaction, for example, subordination, loan, or HOA payoff request fees, that are required by any party or client to structure or complete a particular transaction.(b) Subsection (8)(a) does not prohibit pre-payment of overnight mail and delivery fees.(9)(a) Except as provided in Subsection (9)(b), sponsoring, cosponsoring, subsidizing, contributing fees, prizes, gifts, food, or otherwise providing anything of value for an activity of a client including: (i) an open house at a home or property for sale;(iii) a breakfast, luncheon, or dinner;(v) an installation ceremony;(ix) a hospitality room function;(x) an open house celebration;(xii) a sporting event of any kind, including a fishing trip, gambling trip, hunting trip or outing, or golf or ski tournament;(xiii) an artistic performance; or(xiv) an outing in a recreation or entertainment area.(b) A title producer may attend an activity of a client if:(i) there is no additional cost to the title producer, other than the title producer's own entry fee, registration fee, and meals; and(ii) the fees in Subsection (9)(b)(i) are not greater than those charged to a client or other person attending the function. (10) Sponsoring a trade association event at a cost that is greater than the sponsorships offered to members of the association, affiliates, vendors, or other participants of the event.(11) Furnishing or providing the following, even for a cost:(b) construction critical path timelines;(c) "For Sale by Owner" lists;(g) mortgage leads for loans;(h) rental or apartment lists; or(12)(a) Engaging in the following advertising activity: (i) paying for any advertising on behalf of a client;(ii) advertising jointly with a client;(iii) placing an advertisement in a publication, including an internet web page and its links, that is hosted, published, produced for, or distributed by or on behalf of a client;(iv) placing an advertisement that fails to comply with Section 31A-23a-402 and Rule R590-130;(v) placing an advertisement that is in an official trade association publication that does not offer each title producer an equal opportunity to advertise in the publication and at the standard rates other advertisers in the publication are charged;(vi) advertising with free or paid social media services that are not open and available to the general public; or(vii) paying a fee to share, like, respond to, comment on, or increase the visibility, ranking, or distribution of any social media involving a client or a client's social media page.(b) Nothing in Subsection (12)(a) prohibits the following: (i) advertising independently that the title producer has provided title insurance for a particular subdivision or condominium project, but the title producer may not indicate that all future title insurance will be written by that title producer; or(ii)(A) writing or posting on social media services about an event that directly involves the title producer and a client; and(B) referencing or linking to the event on the client's social media page or the client company's social media page.(13) Using an interest in another business entity to avoid the provisions of Title 31A, Insurance Code, or any applicable rule.(14)(a) Holding more than two self-promotional open houses per calendar year for each owned or occupied facility, including branch offices.(b) Holding a self-promotional open house at a location other than a registered office of the title producer.(15) Making a donation to a charitable organization controlled or managed by a client. (16) Distributing to a client, consumer, or member of the general public a self-promotional item that: (a) has a cost of more than $25;(c) does not contain a permanent marking identifying the title producer; or(d) is personalized in the donee's name.(17) Making an expenditure for a business meal or business activity on behalf of any person, whether a client or not, as a method of advertising if: (a) the person representing the title producer is not present during the business meal or business activity;(b) a substantial title insurance business discussion does not occur directly before, during, or after the business meal or business activity;(c) the total cost of the business meal, the business activity, or both exceeds $100 per person, per day;(d) more than three individuals from an office of a client are provided a business meal or business activity in a single day by an individual title producer; or(e) the entire business meal or business activity takes place on a client's premises.(18) Conducting education that: (a) does not address title insurance, escrow, or a related subject;(b) involves expenditure of more than $20 per anticipated person including the cost of meals and refreshments;(c) involves expenditure of more than $500 for a facility and instructor; or(d) is conducted at an individual, physical office location of a client more than once per calendar quarter.(19)(a) Acknowledging a wedding, a birth or adoption of a child, or a funeral of a client or a member of the client's immediate family with flowers or gifts exceeding $150.(b) Acknowledging any other life event of a client or a member of the client's immediate family with a gift or anything of value.(c) A letter or card in these instances is not a thing of value.Utah Admin. Code R592-6-4
Amended by Utah State Bulletin Number 2015-17, effective 8/11/2015Amended by Utah State Bulletin Number 2021-11, effective 5/24/2021Amended by Utah State Bulletin Number 2021-17, effective 8/23/2021Amended by Utah State Bulletin Number 2024-12, effective 6/7/2024