January 15, 2019

Statement by DFS Superintendent Maria T. Vullo Regarding The Appellate Court’s Decision Upholding Regulation 208

“The First Department's decision unanimously upholds DFS's regulatory authority to protect consumers from excessive title insurance rates and to enforce New York's anti-inducement statute which, as the Court held, DFS rationally interpreted in promulgating Regulation 208. After an investigation and a thorough regulatory process, DFS took the appropriate step in finalizing Regulation 208 in October 2017. As I have maintained throughout this years-long process, the practice of using high-priced tickets, meals, lavish gifts and strip clubs as inducements for title insurance business is prohibited by New York Insurance Law, and those improper expenditures may not be passed on to consumers. New Yorkers all across the state can now rest assured that Regulation 208 will provide real relief from inflated title insurance premiums.”