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HOUSE DOCKET, NO. 1277 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 1099
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Antonio F. D. Cabral
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act to reform title insurance.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Antonio F. D. Cabral13th Bristol1/14/2025Brian W. Murray10th Worcester2/4/2025 1 of 8
HOUSE DOCKET, NO. 1277 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 1099
By Representative Cabral of New Bedford, a petition (accompanied by bill, House, No. 1099) of
Antonio F. D. Cabral and Brian W. Murray for legislation to further regulate title insurance.
Financial Services.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 951 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act to reform title insurance.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 The General Laws, as appearing in the 2022 Official Edition, are hereby amended by
2inserting after chapter 175M the following chapter:
3 CHAPTER 175N
4 TITLE INSURANCE LAW
5 Section 1. Short Title. This chapter shall be known and may be cited as the Title
6Insurance Law.
7 Section 2. Purpose. The purpose of this chapter is to promote the public welfare by
8prohibiting lender’s title insurance from being assessed to buyers who refinance the mortgage on
9their home. Nothing in this chapter is intended to prohibit or discourage reasonable competition, 2 of 8
10or to prohibit, or encourage, except to the extent necessary to accomplish the aforementioned
11purpose, uniformity in insurance rates, rating systems, rating plans or practices.
12 Section 3. Definitions. In this chapter—
13 (a)the term “applicant for insurance” shall be deemed to include approved attorneys,
14real estate brokers, real estate salesmen, attorneys at law and all others who from time to time
15apply to a title insurance company or to an agent of a title insurance company, for title insurance,
16and who at the time of such application are not agents for a title insurance company;
17 (b)the term “approved attorney” means an attorney at law in good standing upon
18whose examination of title and report of title thereon a title insurance company may issue a
19policy of title insurance;
20 (c)the term “refinancing” means the process of paying off an existing home loan by
21obtaining a new home loan and using the same property as security;
22 (d)the term “business of title insurance” means—
23 (1)the making as insurer, guarantor or surety, or proposing to make as insurer,
24guarantor or surety, of any contract or policy of title insurance;
25 (2)the transacting, or proposing to transact, any phase of title insurance, including
26solicitation, negotiation preliminary to execution, execution of a contract of title insurance,
27insuring and transacting matters subsequent to the execution of the contract and arising out of it,
28including reinsurance; or
29 (3)the doing, or proposing to do, any business in substance equivalent to any of the
30foregoing in a manner designed to evade the provisions of this article; 3 of 8
31 (e)the term “commissioner” means the Massachusetts commissioner of insurance;
32 (f)the term “company” means all corporations, associations, partnerships or
33individuals engaged as principals in the business of insurance and authorized to transact business
34in this commonwealth under clause 11 of section 47 of chapter 175;
35 (g)the term “insurance company” or “insurer” has the same meaning as “company”,
36defined in subsection (f);
37 (h)the term “rates”, when referring to title insurance, means the premium, the
38examination and settlement or closing fees, and every other charge, whether denominated
39premium or otherwise, made by a title insurance company, agent of a title insurance company
40and approved attorney of a title insurance company, to an insured or to an applicant for
41insurance, for any policy or contract for the issuance of, or an application for any class or kind
42of, title insurance. The term “rates” shall not include any charges paid by an insured or by an
43applicant for insurance, for any policy or contract, to an attorney at law acting as an independent
44contractor and retained by such attorney at law, whether or not he is acting as an agent of or an
45approved attorney of a title insurance company, or any charges made for special services not
46constituting title insurance, even though performed in connection with a title insurance policy or
47contract; and
48 (i)the term “title insurance” means the insuring, guaranteeing or indemnifying
49against loss or damage suffered by owners of real property or by others interested therein by
50reason of liens, encumbrances upon, defects in or the unmarketability of the title to said real
51property; guaranteeing, warranting or otherwise insuring the correctness of searches relating to 4 of 8
52the title to real property; and doing any business in substance equivalent to any of the foregoing
53in a manner designed to evade the provisions of this article.
54 Section 4. Title Insurance Requirements.
55 (a)Any insurance company who engages in the business of title insurance must file
56quarterly statements, forms, and endorsements with the commissioner and the attorney general
57that details the insurer’s rates related to the sale of title insurance in the commonwealth.
58 (b)The statements set forth in subsection (a) shall be filed by January 1, April 1, July
591, and October 1 of each year.
60 (b)(1)Any insurance company who fails to submit timely quarterly statements, forms,
61and endorsements with the commissioner and attorney general may be punished by a fine of not
62more than $500 for each violation by the commissioner.
63 (c)Within 10 days after each filing period, the commissioner shall post the schedule
64of rates for each title insurance company on the division of insurance’s website.
65 (d)All filings and supporting information shall be open to public inspection after the
66filing becomes effective.
67 (e) Any changes by any insurance company to the quarterly statements, forms, and
68endorsements must be filed with the commissioner and attorney general within 30 days before
69implementation.
70 Section 5. Insurance Company Groups. 5 of 8
71 (a)Two or more insurers who, by virtue of their business associations in the United
72States, represent themselves to be or are customarily known as an “insurance company group”,
73or similar insurance trade designation, shall have the right to make the same filings or to use the
74same rates for each such insurer. This chapter may not be construed to prohibit an agreement to
75make the same filings or use the same rates and concerted action in connection with such filings
76or rates by such insurers.
77 (b)This section shall not apply to 2 or more insurers who are not under the same
78common executive or general management or control and who act in concert in underwriting
79groups or pools.
80 Section 6. Except to the extent necessary to satisfy the provisions of section 7, nothing in
81this chapter shall abridge or restrict the freedom of contract between insurers and agents or
82brokers with respect to commissions or between insurers and their employees with respect to
83compensation.
84 Section 7. Written Disclosure. All applicants for insurance, including agents, brokers
85attorneys and approved attorneys must provide a written disclosure to every prospective buyer of
86a title insurance policy at or prior to closing, which shall be signed by or on behalf of the buyer
87of the title insurance policy, and shall include the following disclosures:
88 (a)That the agent, broker, or attorney is an agent of the title insurance company.
89 (b)The total cost to the buyer for a lender’s title insurance policy.
90 (c)The total cost to the buyer for an owner’s title insurance policy, if applicable.
91 (d)The total amount of the cost that is dedicated to title insurance premiums. 6 of 8
92 (e)The total amount of the cost that is dedicated to commissions or fees paid to the
93agent, broker or attorney.
94 (f)The total amount of the cost that is dedicated to any other component of the
95transaction and a specification of what those other components are.
96 Section 8. Buyer Provisions.
97 (a)A buyer of a title insurance policy shall be entitled to the basic rate in accordance
98with subsection (e) of this section.
99 (b)A buyer of a title insurance policy shall be entitled to the reissue rate, in
100accordance with subsection (e), if the real property to be insured is identical to, or is part of, real
101property insured within the 15 years immediately prior to the date the insured transaction closes.
102Evidence of previous insurance must be considered in order to apply the reissue rate. As
103evidence of previous insurance, an insurer shall rely upon —
104 (1)the recording of either—
105 (i)a deed to a bone fide buyer for value; or
106 (ii)an unsatisfied mortgage to an institutional lender; or
107 (2)any of the following documents produced by or on behalf of the purchases of the
108title insurance policy:
109 (i)A copy of the prior policy.
110 (ii)A copy of the marked-up commitment. 7 of 8
111 (iii)A settlement sheet showing payment of a title insurance premium.
112 (iv)Written evidence acceptable to the insurer that title insurance coverage was
113purchased for the property.
114 (c)In the event that a current homeowner seeks title insurance at the time of a
115refinancing through a different lender than the original lender on a home mortgage, the
116homeowner shall be entitled to the reissue rate, in accordance with subsection (e), if evidence of
117previous insurance is provided in accordance with the provisions of subsection (b).
118 (d)In the event that a homeowner seeks title insurance at the time of a refinancing of
119a home mortgage through the same lender or a successor-in-interest to the original lender on a
120home mortgage, the title insurance company shall issue the homeowner a continuation of his title
121insurance at no additional cost from the original title insurance payment. The homeowner shall
122provide evidence of—
123 (1)previous insurance, in accordance with subsection (b); and
124 (2)a continuous and unbroken chain of ownership.
125 (e)The rate charged to customers who do not qualify for the reissue rate or a
126refinance waiver under subsections (b), (c) and (d) shall be charged the insurer’s basic rate as
127reported to the commissioner. The reissue rate shall be 50 per cent of the basic rate.
128 (f)A clear and conspicuous written notice must be provided to every prospective
129buyer of a title insurance policy at or prior to closing that must be signed by or on behalf of the
130buyer of the title insurance policy. Said notice shall include the following disclosure: 8 of 8
131 THIS CONVEYANCE OR REFINANCE MAY BE ENTITLED TO A REDUCED
132RATE OR WAIVED PURCHASE REQUIREMENT UNDER M.G.L. CHAPTER 174D.
133 Section 9. No person or organization shall willfully withhold information from, or
134knowingly give false or misleading information to, the commissioner, any statistical agency
135designated by the commissioner, any rating organization, or any insurer, which will affect the
136rates or premiums chargeable under this chapter.
137 Section 10. Any person or organization willfully violating any provision of this chapter
138shall be punished by a fine of not more than $500 for each violation. Such penalty may be in
139addition to any other penalty provided by law.