Unlawful Inducement Update

A revised letter from the Dept. of Financial Services has been issued.

Dear Members,

A revised letter of interpretation has been issued by the Department of Financial Services. Here is the link.

Their position is that payment of an estoppel certificate fee, without reimbursement, is an unlawful REBATE under the Florida Insurance Code and not an unlawful INDUCEMENT for title insurance.

The letter does not make it clear how payments advanced for closings that “fall through” are viewed. This is likely to be the first question that you would ask and there are probably others. I will work with FLTA and other groups to gain clarification as soon as I can.

As always, thank you for your support of The Fund.

Best Regards,

Melissa Jay Murphy
Senior Vice President and
General Counsel