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Procedural Rule P-53:
Rebates and Discounts Prohibited
effective April 1, 2004
By now it should be widely known in
the industry that Texas Insurance Commissioner Montemayor has adopted a
groundbreaking Procedural Rule implementing the Insurance Code relating to
prohibitions on marketing activities considered to be rebates in the title
insurance business. The new rule, Procedural Rule P-53, is effective on
April 1, 2004. As with any significant new enactment, many questions have
been raised about the application of the rule and the meaning of many of
its provisions. As with legislation, we will probably have to wait until
the results of enforcement actions pursuant to the new Rule become
publicly available in order to reach explicit conclusions about the
applicability of the rule to specific fact situations. However, also like
legislation, we can gain some insight into the meaning and intent of the
rule by reviewing the history of its proposal and adoption, the public
comments submitted during the adoption process and the response by the TDI
to those comments, all of which are matters of public record.
Click here
to view the full article.
- Insights Into P-53
by Rob Carter - Deputy Commissioner, Title Insurance Division, Texas Dept.
of Insurance
Deputy Commissioner Robert Carter
spoke to a group of settlement services industry professionals regarding
the new Procedural Rule P-53, in Austin, February 25th. Mr.
Carter answered questions from the audience and relayed the following
additional insights in a document sent to TLTA General Counsel, Tom
Rutledge. The following document is not an official pronouncement of TDI.
Click
here to view the document
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