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Code of Colorado Regulations eDocket
Details of Tracking Number
2016-00609
CCR details
| Tracking Number |
2016-00609 |
| Type of Filing |
Permanent Rule |
| Department |
700 Department of Regulatory Agencies |
| Agency |
702 Division of Insurance |
| CCR Number |
3 CCR 702-3 |
| CCR Title |
FINANCIAL ISSUES |
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Proposed rule
| Notice Filed with SOS |
11/29/2016 |
| Rule |
ProposedRuleAttach2016-00609.doc |
| Statutory Authority |
10-1-109, 10-2-104, 10-3-1110, 10-4-404(1), 10-11-118, and 10-11-124 (2), C.R.S. |
| Description of Subjects/Issues |
3-5-1 The provisions of this regulation are now contained in the new 8-Series, and this regulation is no longer needed. The purposes of this regulation are: to interpret and implement the title insurance code found in article 11 of title 10 of the Colorado Revised Statutes; to promote the public welfare by proscribing practices which, if not proscribed, could result in excessive, inadequate, or unfairly discriminatory rates for title insurance, and which practices, if not proscribed, could allow unlawful inducements, deceptive trade practices, and discriminatory acts, all of which are detrimental to the consumer and, in the aggregate, may threaten the solvency of title insurance companies and title insurance agents; and to ensure to the consumers the benefits of competition in the area of title insurance. |
| Purpose/Objective of Rule |
The purposes of this regulation are: to interpret and implement the title insurance code found in article 11 of title 10 of the Colorado Revised Statutes; to promote the public welfare by proscribing practices which, if not proscribed, could result in excessive, inadequate, or unfairly discriminatory rates for title insurance, and which practices, if not proscribed, could allow unlawful inducements, deceptive trade practices, and discriminatory acts, all of which are detrimental to the consumer and, in the aggregate, may threaten the solvency of title insurance companies and title insurance agents; and to ensure to the consumers the benefits of competition in the area of title insurance.
In Colorado, the majority of real estate transactions require a policy of title insurance. In most instances, a consumer makes the selection of a title entity not through comparison-shopping, but rather through a referral or recommendation from a real estate broker, lawyer, developer, lender, or mortgage broker. Thus, the competition for title insurance business is not at the level of the ultimate consumer, but rather at the level of the referring parties – the settlement producers.
Further, increasing consumer understanding of title insurance is difficult. Since most consumers will only need to purchase title insurance a few times in their lives, there is little economic incentive for the average consumer to learn about title insurance. These factors may cause a consumer to be vulnerable to excessive rates, deceptive trade practices, and/or discriminatory acts.
This regulation addresses the issues above. Its purpose is to protect the consumer, to ensure that the title industry is freely and fairly competitive, and to provide valuable products and services to consumers at reasonable rates. |
| Comments |
Being repealed as no longer needed now that the requirements of this rule are found in promulgated Colorado Insurance Regulations 8-1-1, 8-1-2, 8-1-3, 8-1-4, and 8-1-5 |
| Submitted in response to issues raised by COLS/OLLS? |
No
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| Is this rule adopted in response to recent legislation? |
No
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| Hearing Date |
01/03/2017 |
| Hearing Time |
02:00 PM |
| Hearing Location |
1560 Broadway, Ste 850, Denver CO 80202 |
| Contact Name |
Christine Gonzales-Ferrer |
| Contact Title |
Rulemaking Coordinator |
| Contact Telephone |
303-894-2157 |
| Contact email |
christine.gonzales-ferrer@state.co.us |
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Adopted rule
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