Bulletin: WA2019004

Dear Associates:

The office of the Insurance Commissioner has taken the position that any referral fees are prohibited, whether the referral fee is between two different title agents or between a title underwriter and an agent. The Office of the Insurance Commissioner believes the only compensation that is permissible is the split of the premium between offices of the same underwriter or the underwriter and the agent under their underwriting/agency agreement.  

Please contact your underwriter prior to agreeing to a fee split with any office outside of your company.   

Please refer to RCW 284-29-200 to 284-29-265 copied in part below,

RCW 48.29.210

Business inducements - Prohibited practices.

(1) A title insurer, title insurance agent, or employee, agent, or other representative of a title insurer or title insurance agent shall not, directly or indirectly, give any fee, kickback, or other thing of value to any person as an inducement, payment, or reward for placing business, referring business, or causing title insurance business to be given to either the title insurer, or title insurance agent, or both.

(2) A title insurer, title insurance agent, or employee, agent, or other representative of a title insurer or title insurance agent shall not, directly or indirectly, give anything of value to any person in a position to refer or influence the referral of title insurance business to either the title insurance company or title insurance agent, or both, except as permitted under rules adopted by the commissioner.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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