N.Y. Comp. Codes R. & Regs. tit. 11 § 228.3 : INSURANCE — Unfair Trade Practices — TITLE INSURANCE RATES, EXPENSES AND CHARGES — Expense reporting and rate filings

(a)
(1) A title insurance corporation or title insurance agent shall not include any expenditure that is prohibited or exceeds any expenditure permitted under the Insurance Law or this Part in its expense schedules reporting title expenses for underwriter direct operations; title expenses for underwriter subsidiary agents; underwriter title expenses for underwriting, claims, and agent remittance operations; or title revenue and expense for title insurance agents when responding to a statistical agent's data call. Every title insurance corporation and, except as provided in subdivision (d) of this section, every title insurance agent, in response to the annual data call shall affirm in writing that its expense schedules do not include any expenditure that is prohibited or exceeds any expenditure permitted under the Insurance Law or this Part.
(2) Every title insurance corporation and every title insurance agent, except as provided in subdivision (d) of this section, shall report all expenditures made for meals and beverages, entertainment, gifts, outings, parties, sponsorships, seminars and continuing education, charitable contributions, and political contributions as separate line items in supplemental expense schedules to the expense schedules submitted annually to the department's statistical agent. The statistical agent shall include the supplemental expense schedule data in the annual statistical report submitted to the superintendent.
(b) A rate service organization or title insurance corporation that submits a rate filing shall not include, for rate setting purposes, any expenditure that is prohibited or exceeds any expenditure permitted under the Insurance Law or this Part.
(c)
(1) Except as provided in paragraph (2) of this subsection, a title insurance corporation that submitted expense schedules to the statistical agent, including for allocated expenses, in response to the annual data call for any year of the most recent six-year period preceding the effective date of this Part shall:
(i) affirm in writing to the superintendent, within 120 days of the effective date of this Part, that no expense schedule submitted in response to the annual data call for the most recent six-year period preceding the effective date of this Part contains any expenditure that is not in accordance with this Part, Insurance Law article 23, or is prohibited under Insurance Law section 6409(d);
(ii) present reasonable data with actuarial support for the calculation of title rates that exclude the expenditures prohibited by this Part, Insurance Law article 23 or section 6409(d). This requirement shall be satisfied by the submission of expense schedules for the six-year period preceding the effective date of this Part to the statistical agent within 120 days of the effective date of this Part, in accordance with subdivision (a) of this section, that exclude all expenditures not in accordance with this Part, or prohibited by Insurance Law article 23 or section 6409(d). Within 180 days of the effective date of this Part, the title insurance corporation shall submit to the superintendent a rate filing that reflects the exclusion of expenditures that are not permissible under this Part, along with data and actuarial support. The submission shall include the title insurance corporation's expense schedules and an affirmation that no improper expenditures are included; or
(iii) submit a rate filing to the superintendent, within 180 days of the effective date of this Part, which provides for a uniform five percent reduction in the base rate schedule for each category of policy.
(2) A title insurance corporation shall not be required to comply with paragraph (1) of this subsection if a rate service organization of which the title insurance corporation is a member files, and the title insurance corporation adopts, within 180 days of the effective date of this Part, a rate filing providing for a uniform five percent reduction of the current base rate schedule for each category of policy.
(d)
(1) Every title insurance corporation shall provide the annual agent data call to every title insurance agent that it has appointed to act as an agent in this State, with the exception of those title insurance agents on whose behalf the title insurance corporation reports revenue and expenses. Every title insurance agent who receives the agent data call shall complete an expense schedule and a revenue schedule, including premium and all other operating income, for each title insurance corporation that appointed it as an agent and shall timely submit to each such title insurance corporation revenue and expense schedules associated with the issuance of that title insurance corporation's policies. The title insurance agent shall allocate expenses based upon premiums written for each title insurance corporation unless a compelling reason exists to allocate in a different manner. If the title insurance agent allocates expenses on another basis, it shall specify the basis and the reason for doing so. Every title insurance agent whose revenue and expenses are not reported by another entity shall also prepare and maintain an expense schedule and a revenue schedule setting forth the title insurance agent's total annual revenue and expenses.
(2) A title insurance agent who reports data on behalf of another title insurance agent shall submit to the title insurance corporation, along with its revenue and expense schedules, the names and license numbers of every title insurance agent whose data is included in its reported schedules. A title insurance agent whose revenue and expenses are reported by a title insurance corporation or another title insurance agent by whom such agent is employed or with whom such agent is affiliated shall not submit individual revenue and expense schedules in connection with the data call. A title insurance corporation or title insurance agent shall report to the superintendent the name and license number of any agent on whose behalf it reports expense and revenue data and shall notify the title insurance agent on whose behalf it reports data that it is not required to submit individual revenue and expense schedules.
(3) Every title insurance agent shall maintain all revenue and expense schedules in accordance with the requirements set forth in Part 243 of this Title (Insurance Regulation 152), in a durable medium, for a period of at least six years.
(4) Every title insurance corporation shall collect and compile revenue and expense schedules for its appointed agents and submit a single title insurance agent revenue schedule and a single title insurance agent expense schedule to the statistical agent. The statistical agent shall compile all title insurance agent data into a title insurance agent expense schedule and a title insurance agent revenue schedule, and include such schedules in the annual statistical report.
(5) Every title insurance corporation shall report to the superintendent, within 30 days after the title insurance agent was due to submit the revenue and expense schedules, the name and license number of any appointed title insurance agent that is required to submit the schedules but does not do so.
(e) Every title insurance corporation shall submit to the superintendent, by May 30 of each year, individual annual revenue and expense schedules, which shall include the supplemental expenditure schedules required pursuant to subdivision (a)(2) of this section.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 228.3

Adopted New York State Register October 18, 2017/Volume XXXIX, Issue 42, eff. 12/18/2017