Maryland Issues Bulletin About Prohibition of Rebates, Discounts and Inducements

December 21, 2017

The Maryland Insurance Administration (MIA) issued a bulletin reminding title producers about the state’s prohibition on rebating, discounts and other inducements offered in connection with real estate transactions.

In the bulletin, the MIA said it learned that title insurance producers were offering consumers free home warranties or other things of value as an inducement of the purchase of a title insurance policy.

“Offering rebates or discounts in the form of free home warranties or home inspections as thank you gifts to consumers who purchase a title insurance policy from an insurance producer is prohibited by Maryland insurance law,” the bulletin states. “Likewise, offering all consumers seeking title insurance free home warranties or inspections regardless of whether a title insurance purchase is ultimately made is also prohibited.”

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