|July 7, 2009|
Dear C.A.R. Member:
We have good news to report: Property profiles again may be provided to you by title companies. As you may have heard, the California Dept. of Insurance (CDI)
issued a letter June 12 that was unclear in this respect. C.A.R.’s Governmental Affairs Dept. met with the Dept. of Insurance on July 2 and expressed concern about the interpretation of the June 12 letter and its impact on the market. The CDI said they did not intend their letter to be interpreted to prohibit property profiles, and agreed to look at the matter, recognizing the urgency and the need for immediate action. Clarification was received today. View a copy of C.A.R.’s letter to the Dept. of Insurance here.
We are pleased that the Dept. of Insurance is so responsive to industry needs, particularly when it results in tangible benefits to consumers, such as detecting fraud and providing valuable information about the title when taking listings and servicing buyers and sellers.
Yesterday’s letter makes it clear that the CDI’s chief deputy “did not intend for my June 12 letter to be interpreted as a call for title insurers to change their business practices.” It goes on to say that any conduct must continue to be within existing law and does not mean that “anything goes”. However, the letter is clear that the department will not take enforcement action against title insurers for distributing information about properties in the manner that they did immediately prior to June 12. The CDI will be proceeding with possible regulations in a manner that will not result in continued market disruption. C.A.R. will continue to be vigilant and protect your interests. We will be proactively monitoring this process as it goes forward and will inform you immediately of any changes.
CALIFORNIA ASSOCIATION OF REALTORS®