BULLETIN B 00-08
To: All Title Insurance Companies and Title Insurance Limited
Producers and Other Interested Parties
Re: Title Insurance Regulation
New regulations (3 AAC 27.301- 3 AAC 27.399) affecting the title
insurance industry in Alaska became effective on April 15, 2000.
These regulations were developed from a series of task force meetings
in which both title insurers and title insurance limited producers
Section 3 AAC 27.370 states: "A title insurance company
or title insurance limited producer shall charge for any class
of service delivered or provided in this state that relies in
whole or in part upon documents contained in the title plant or
public record. This charge must be commensurate with the cost
of delivering or providing the class of service." A very
limited exception to this requirement is allowed for a listing
package given to a real estate agent or broker so that the real
estate agent or broker may determine the owner of record and the
correct property description for listing a property. 3 AAC 27.399(1)
and (3). Any other distribution of a listing package, without
an appropriate charge, is considered a rebate or inducement to
obtaining title insurance business under AS 21.66.310.
It has been brought to the attention of the division that members
of the title insurance industry may not be complying with the
regulations with respect to listing packages and other individual
documents and maps. After much discussion, the Title Insurance
Task Force reached consensus that a listing package may consist
of public records only. Public records are defined in 3 AAC 27.399(6).
As referenced above, the types of public records that may be included
in a listing package are limited to those records that are used
by a real estate agent or broker to determine the owner of record
and the correct property description for listing a property. No
other information or documents may be included in a listing package.
A copy of an individual document or map that is given away must
be a public record that is allowed to be included in a listing
package. The reference to an individual document or map in the
"class of service" definition in 3 AAC 27.399(1) is
not intended to expand the types of documents that may be provided
without charge beyond documents that are in the public record.
Any title insurance company or title insurance limited producer
that includes a document other than a public record in a listing
package is in violation of Alaska law.
A title insurer must file a rate for a listing package with the
division under AS 21.66.370, if the insurer or a title insurance
limited producer intends to provide a listing package to anyone
other than a real estate agent or broker.
DATED: September 1, 2000