Q. May a title insurer or agent pay a portion of the premium to another title insurer or agent in exchange for the referral of title insurance business?

A. No. The only exception is when an agent is issuing a policy for the insurer for which it is appointed. Then the split of the premium is permitted according to the agency agreement between the insurer and its agent.

It is important to note that Washington state law differs from the federal Real Estate Settlement Procedures Act (RESPA) statute on this matter. State law (RCW 48.29.210(1)) specifies that no fees may be paid for business referrals. Unlike RESPA, this is true even if the referring insurer or agent actually performs a service.

[March 2009]

Some files on this website require a free reader. Download a free reader.