Utah Admin. Code R592-6-4 - Prohibited Unfair Methods of Competition
A person identified in Section R592-6-2 who provides or offers to provide, directly or indirectly, any of the following benefits to any client has violated Section 31A-23a-402 and has engaged in an unfair method of competition.
(1)
Waiving any charge, premium, or rate for insurance or services otherwise due
and payable.
(2) Furnishing
services not related to a bona fide title insurance, escrow, settlement, or
closing transaction without receiving fair market payment for the services
provided.
(3) Paying for,
furnishing, or waiving all or any part of the rental or lease charge for space
that is occupied by a client.
(4)
Renting or leasing space from a client at a rate that is excessive or
inadequate when compared with rental or lease charges for comparable space in
the same geographic area, or paying rental or lease charges based in whole or
in part on the volume of business generated by the client.
(5) Furnishing any part of a title producer's
facilities, including conference rooms or meeting rooms, to a client or its
trade association, for anything other than providing escrow or title services,
or related meetings, without receiving a fair rental or lease charge comparable
to other rental or lease charges for facilities in the same geographic
area.
(6) Furnishing all or any
part of the time or productive effort of any employee of the title producer,
including a secretary, clerk, messenger, or escrow officer, to any client when
such time or productive effort is not reasonably related to a bona fide title
insurance, escrow, settlement, or closing transaction.
(7) Paying a client or an employee of a
client for a referral of business.
(8)
(a)
Payment or pre-payment of the following:
(i)
fees or charges of a professional, including an appraiser, surveyor, engineer,
or attorney, whose services are required by any party or client to structure or
complete a particular transaction; or
(ii) fees or charges of a client or party to
the transaction, for example, subordination, loan, or HOA payoff request fees,
that are required by any party or client to structure or complete a particular
transaction.
(b)
Subsection (8)(a) does not prohibit pre-payment of overnight mail and delivery
fees.
(9)
(a) Except as provided in Subsection (9)(b),
sponsoring, cosponsoring, subsidizing, contributing fees, prizes, gifts, food,
or otherwise providing anything of value for an activity of a client including:
(i) an open house at a home or property for
sale;
(ii) a meeting;
(iii) a breakfast, luncheon, or
dinner;
(iv) a
convention;
(v) an installation
ceremony;
(vi) a
celebration;
(vii) an
outing;
(viii) a cocktail
party;
(ix) a hospitality room
function;
(x) an open house
celebration;
(xi) a
dance;
(xii) a sporting event of
any kind, including a fishing trip, gambling trip, hunting trip or outing, or
golf or ski tournament;
(xiii) an
artistic performance; or
(xiv) an
outing in a recreation or entertainment area.
(b) A title producer may attend an activity
of a client if:
(i) there is no additional
cost to the title producer, other than the title producer's own entry fee,
registration fee, and meals; and
(ii) the fees in Subsection (9)(b)(i) are not
greater than those charged to a client or other person attending the function.
(10)
Sponsoring a trade association event at a cost that is greater than the
sponsorships offered to members of the association, affiliates, vendors, or
other participants of the event.
(11) Furnishing or providing the following,
even for a cost:
(a) building plans;
(b) construction critical path
timelines;
(c) "For Sale by Owner"
lists;
(d) surveys;
(e) appraisals;
(f) credit reports;
(g) mortgage leads for loans;
(h) rental or apartment lists; or
(i) printed labels.
(12)
(a)
Engaging in the following advertising activity:
(i) paying for any advertising on behalf of a
client;
(ii) advertising jointly
with a client;
(iii) placing an
advertisement in a publication, including an internet web page and its links,
that is hosted, published, produced for, or distributed by or on behalf of a
client;
(iv) placing an
advertisement that fails to comply with Section
31A-23a-402 and Rule
R590-130;
(v) placing an
advertisement that is in an official trade association publication that does
not offer each title producer an equal opportunity to advertise in the
publication and at the standard rates other advertisers in the publication are
charged;
(vi) advertising with free
or paid social media services that are not open and available to the general
public; or
(vii) paying a fee to
share, like, respond to, comment on, or increase the visibility, ranking, or
distribution of any social media involving a client or a client's social media
page.
(b) Nothing in
Subsection (12)(a) prohibits the following:
(i) advertising independently that the title
producer has provided title insurance for a particular subdivision or
condominium project, but the title producer may not indicate that all future
title insurance will be written by that title producer; or
(ii)
(A)
writing or posting on social media services about an event that directly
involves the title producer and a client; and
(B) referencing or linking to the event on
the client's social media page or the client company's social media
page.
(13) Using an interest in another business
entity to avoid the provisions of Title 31A, Insurance Code, or any applicable
rule.
(14)
(a) Holding more than two self-promotional
open houses per calendar year for each owned or occupied facility, including
branch offices.
(b) Holding a
self-promotional open house at a location other than a registered office of the
title producer.
(15)
Making a donation to a charitable organization controlled or managed by a
client.
(16) Distributing to a
client, consumer, or member of the general public a self-promotional item that:
(a) has a cost of more than $25;
(b) is edible;
(c) does not contain a permanent marking
identifying the title producer; or
(d) is personalized in the donee's
name.
(17) Making an
expenditure for a business meal or business activity on behalf of any person,
whether a client or not, as a method of advertising if:
(a) the person representing the title
producer is not present during the business meal or business
activity;
(b) a substantial title
insurance business discussion does not occur directly before, during, or after
the business meal or business activity;
(c) the total cost of the business meal, the
business activity, or both exceeds $100 per person, per day;
(d) more than three individuals from an
office of a client are provided a business meal or business activity in a
single day by an individual title producer; or
(e) the entire business meal or business
activity takes place on a client's premises.
(18) Conducting education that:
(a) does not address title insurance, escrow,
or a related subject;
(b) involves
expenditure of more than $20 per anticipated person including the cost of meals
and refreshments;
(c) involves
expenditure of more than $500 for a facility and instructor; or
(d) is conducted at an individual, physical
office location of a client more than once per calendar quarter.
(19)
(a) Acknowledging a wedding, a birth or
adoption of a child, or a funeral of a client or a member of the client's
immediate family with flowers or gifts exceeding $150.
(b) Acknowledging any other life event of a
client or a member of the client's immediate family with a gift or anything of
value.
(c) A letter or card in
these instances is not a thing of value.
Notes
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