§ 10-11-108 — Prohibitions

Colorado § 10-11-108

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Title Insurance

Text

(1) A title insurance company or title insurance
agent shall not:

(a) Engage in the business of guaranteeing the payment of the principal or
the interest of bonds, notes, or other obligations;

(b) Transact, underwrite, or issue any kind of insurance other than title
insurance;

(c) Give or receive or attempt to give or receive remuneration in any form
pursuant to any agreement or understanding, oral or otherwise, for the referral of
title insurance business;

(d) Give or receive or attempt to give or receive any portion or percentage of
any charge made or received in connection with the business of title insurance if
such charge is not for services actually rendered. For purposes of this article,
services actually rendered shall include but not be limited to a reasonable
examination of a title, including instruments of record, and a determination of
insurability of such title in accordance with sound underwriting practices; services
actually rendered shall not include the mere referral of title insurance business.

(2) Nothing in this article, or in any other provision of law governing the
insurance industry, shall be construed to prohibit:

(a) Compensation by a title insurance company of an attorney who is
licensed to practice in Colorado for services actually rendered in connection with a
real estate transaction, regardless of whether such attorney represents a client in
such real estate transaction. Compensation of the attorney for services actually
rendered shall not include the payment of an hourly fee paid by the client combined
with a payment from the title insurance company for the same service; except that
prior to issuing any title insurance commitment, such attorney shall disclose to any
party represented by such attorney in the transaction for which the commitment
shall be issued that such attorney may be compensated for the issuance of such
title insurance commitment.

(b) Payment to any person of a bona fide salary or compensation for payment
of goods and facilities actually furnished or for services actually rendered.

(3) Any party to a transaction which is subject to this section shall have a
right of action for any actual loss or damage resulting from any violation of this
section.

Legislative History

Source: L. 69: p. 522, � 1. C.R.S. 1963: � 72-26-8. L. 92: Entire section amended, p. 1748, � 1, effective April 24.