Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1099 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 1277 FILED ON: 1/14/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 1099
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Antonio F. D. Cabral
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to reform title insurance.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Antonio F. D. Cabral13th Bristol1/14/2025Brian W. Murray10th Worcester2/4/2025 1 of 8
16	16	HOUSE DOCKET, NO. 1277 FILED ON: 1/14/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 1099
18	18	By Representative Cabral of New Bedford, a petition (accompanied by bill, House, No. 1099) of
19	19	Antonio F. D. Cabral and Brian W. Murray for legislation to further regulate title insurance.
20	20	Financial Services.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 951 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act to reform title insurance.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 The General Laws, as appearing in the 2022 Official Edition, are hereby amended by
32	32	2inserting after chapter 175M the following chapter:
33	33	3 CHAPTER 175N
34	34	4 TITLE INSURANCE LAW
35	35	5 Section 1. Short Title. This chapter shall be known and may be cited as the Title
36	36	6Insurance Law.
37	37	7 Section 2. Purpose. The purpose of this chapter is to promote the public welfare by
38	38	8prohibiting lender’s title insurance from being assessed to buyers who refinance the mortgage on
39	39	9their home. Nothing in this chapter is intended to prohibit or discourage reasonable competition, 2 of 8
40	40	10or to prohibit, or encourage, except to the extent necessary to accomplish the aforementioned
41	41	11purpose, uniformity in insurance rates, rating systems, rating plans or practices.
42	42	12 Section 3. Definitions. In this chapter—
43	43	13 (a)the term “applicant for insurance” shall be deemed to include approved attorneys,
44	44	14real estate brokers, real estate salesmen, attorneys at law and all others who from time to time
45	45	15apply to a title insurance company or to an agent of a title insurance company, for title insurance,
46	46	16and who at the time of such application are not agents for a title insurance company;
47	47	17 (b)the term “approved attorney” means an attorney at law in good standing upon
48	48	18whose examination of title and report of title thereon a title insurance company may issue a
49	49	19policy of title insurance;
50	50	20 (c)the term “refinancing” means the process of paying off an existing home loan by
51	51	21obtaining a new home loan and using the same property as security;
52	52	22 (d)the term “business of title insurance” means—
53	53	23 (1)the making as insurer, guarantor or surety, or proposing to make as insurer,
54	54	24guarantor or surety, of any contract or policy of title insurance;
55	55	25 (2)the transacting, or proposing to transact, any phase of title insurance, including
56	56	26solicitation, negotiation preliminary to execution, execution of a contract of title insurance,
57	57	27insuring and transacting matters subsequent to the execution of the contract and arising out of it,
58	58	28including reinsurance; or
59	59	29 (3)the doing, or proposing to do, any business in substance equivalent to any of the
60	60	30foregoing in a manner designed to evade the provisions of this article; 3 of 8
61	61	31 (e)the term “commissioner” means the Massachusetts commissioner of insurance;
62	62	32 (f)the term “company” means all corporations, associations, partnerships or
63	63	33individuals engaged as principals in the business of insurance and authorized to transact business
64	64	34in this commonwealth under clause 11 of section 47 of chapter 175;
65	65	35 (g)the term “insurance company” or “insurer” has the same meaning as “company”,
66	66	36defined in subsection (f);
67	67	37 (h)the term “rates”, when referring to title insurance, means the premium, the
68	68	38examination and settlement or closing fees, and every other charge, whether denominated
69	69	39premium or otherwise, made by a title insurance company, agent of a title insurance company
70	70	40and approved attorney of a title insurance company, to an insured or to an applicant for
71	71	41insurance, for any policy or contract for the issuance of, or an application for any class or kind
72	72	42of, title insurance. The term “rates” shall not include any charges paid by an insured or by an
73	73	43applicant for insurance, for any policy or contract, to an attorney at law acting as an independent
74	74	44contractor and retained by such attorney at law, whether or not he is acting as an agent of or an
75	75	45approved attorney of a title insurance company, or any charges made for special services not
76	76	46constituting title insurance, even though performed in connection with a title insurance policy or
77	77	47contract; and
78	78	48 (i)the term “title insurance” means the insuring, guaranteeing or indemnifying
79	79	49against loss or damage suffered by owners of real property or by others interested therein by
80	80	50reason of liens, encumbrances upon, defects in or the unmarketability of the title to said real
81	81	51property; guaranteeing, warranting or otherwise insuring the correctness of searches relating to 4 of 8
82	82	52the title to real property; and doing any business in substance equivalent to any of the foregoing
83	83	53in a manner designed to evade the provisions of this article.
84	84	54 Section 4. Title Insurance Requirements.
85	85	55 (a)Any insurance company who engages in the business of title insurance must file
86	86	56quarterly statements, forms, and endorsements with the commissioner and the attorney general
87	87	57that details the insurer’s rates related to the sale of title insurance in the commonwealth.
88	88	58 (b)The statements set forth in subsection (a) shall be filed by January 1, April 1, July
89	89	591, and October 1 of each year.
90	90	60 (b)(1)Any insurance company who fails to submit timely quarterly statements, forms,
91	91	61and endorsements with the commissioner and attorney general may be punished by a fine of not
92	92	62more than $500 for each violation by the commissioner.
93	93	63 (c)Within 10 days after each filing period, the commissioner shall post the schedule
94	94	64of rates for each title insurance company on the division of insurance’s website.
95	95	65 (d)All filings and supporting information shall be open to public inspection after the
96	96	66filing becomes effective.
97	97	67 (e) Any changes by any insurance company to the quarterly statements, forms, and
98	98	68endorsements must be filed with the commissioner and attorney general within 30 days before
99	99	69implementation.
100	100	70 Section 5. Insurance Company Groups. 5 of 8
101	101	71 (a)Two or more insurers who, by virtue of their business associations in the United
102	102	72States, represent themselves to be or are customarily known as an “insurance company group”,
103	103	73or similar insurance trade designation, shall have the right to make the same filings or to use the
104	104	74same rates for each such insurer. This chapter may not be construed to prohibit an agreement to
105	105	75make the same filings or use the same rates and concerted action in connection with such filings
106	106	76or rates by such insurers.
107	107	77 (b)This section shall not apply to 2 or more insurers who are not under the same
108	108	78common executive or general management or control and who act in concert in underwriting
109	109	79groups or pools.
110	110	80 Section 6. Except to the extent necessary to satisfy the provisions of section 7, nothing in
111	111	81this chapter shall abridge or restrict the freedom of contract between insurers and agents or
112	112	82brokers with respect to commissions or between insurers and their employees with respect to
113	113	83compensation.
114	114	84 Section 7. Written Disclosure. All applicants for insurance, including agents, brokers
115	115	85attorneys and approved attorneys must provide a written disclosure to every prospective buyer of
116	116	86a title insurance policy at or prior to closing, which shall be signed by or on behalf of the buyer
117	117	87of the title insurance policy, and shall include the following disclosures:
118	118	88 (a)That the agent, broker, or attorney is an agent of the title insurance company.
119	119	89 (b)The total cost to the buyer for a lender’s title insurance policy.
120	120	90 (c)The total cost to the buyer for an owner’s title insurance policy, if applicable.
121	121	91 (d)The total amount of the cost that is dedicated to title insurance premiums. 6 of 8
122	122	92 (e)The total amount of the cost that is dedicated to commissions or fees paid to the
123	123	93agent, broker or attorney.
124	124	94 (f)The total amount of the cost that is dedicated to any other component of the
125	125	95transaction and a specification of what those other components are.
126	126	96 Section 8. Buyer Provisions.
127	127	97 (a)A buyer of a title insurance policy shall be entitled to the basic rate in accordance
128	128	98with subsection (e) of this section.
129	129	99 (b)A buyer of a title insurance policy shall be entitled to the reissue rate, in
130	130	100accordance with subsection (e), if the real property to be insured is identical to, or is part of, real
131	131	101property insured within the 15 years immediately prior to the date the insured transaction closes.
132	132	102Evidence of previous insurance must be considered in order to apply the reissue rate. As
133	133	103evidence of previous insurance, an insurer shall rely upon —
134	134	104 (1)the recording of either—
135	135	105 (i)a deed to a bone fide buyer for value; or
136	136	106 (ii)an unsatisfied mortgage to an institutional lender; or
137	137	107 (2)any of the following documents produced by or on behalf of the purchases of the
138	138	108title insurance policy:
139	139	109 (i)A copy of the prior policy.
140	140	110 (ii)A copy of the marked-up commitment. 7 of 8
141	141	111 (iii)A settlement sheet showing payment of a title insurance premium.
142	142	112 (iv)Written evidence acceptable to the insurer that title insurance coverage was
143	143	113purchased for the property.
144	144	114 (c)In the event that a current homeowner seeks title insurance at the time of a
145	145	115refinancing through a different lender than the original lender on a home mortgage, the
146	146	116homeowner shall be entitled to the reissue rate, in accordance with subsection (e), if evidence of
147	147	117previous insurance is provided in accordance with the provisions of subsection (b).
148	148	118 (d)In the event that a homeowner seeks title insurance at the time of a refinancing of
149	149	119a home mortgage through the same lender or a successor-in-interest to the original lender on a
150	150	120home mortgage, the title insurance company shall issue the homeowner a continuation of his title
151	151	121insurance at no additional cost from the original title insurance payment. The homeowner shall
152	152	122provide evidence of—
153	153	123 (1)previous insurance, in accordance with subsection (b); and
154	154	124 (2)a continuous and unbroken chain of ownership.
155	155	125 (e)The rate charged to customers who do not qualify for the reissue rate or a
156	156	126refinance waiver under subsections (b), (c) and (d) shall be charged the insurer’s basic rate as
157	157	127reported to the commissioner. The reissue rate shall be 50 per cent of the basic rate.
158	158	128 (f)A clear and conspicuous written notice must be provided to every prospective
159	159	129buyer of a title insurance policy at or prior to closing that must be signed by or on behalf of the
160	160	130buyer of the title insurance policy. Said notice shall include the following disclosure: 8 of 8
161	161	131 THIS CONVEYANCE OR REFINANCE MAY BE ENTITLED TO A REDUCED
162	162	132RATE OR WAIVED PURCHASE REQUIREMENT UNDER M.G.L. CHAPTER 174D.
163	163	133 Section 9. No person or organization shall willfully withhold information from, or
164	164	134knowingly give false or misleading information to, the commissioner, any statistical agency
165	165	135designated by the commissioner, any rating organization, or any insurer, which will affect the
166	166	136rates or premiums chargeable under this chapter.
167	167	137 Section 10. Any person or organization willfully violating any provision of this chapter
168	168	138shall be punished by a fine of not more than $500 for each violation. Such penalty may be in
169	169	139addition to any other penalty provided by law.