ARLTA Rate Regulation Information Meeting
Monday, April 11, 2016
The Capitol Hotel
Arkansas
is one of four states in the nation that does not have some type of legally
mandated title insurance rates to be charged to the consumer. Regulations
issued by the Consumer Financial Protection Bureau, effective October 3rd,
2015, have put into effect certain timetables and requirements that have made
the timely and accurate communication to a financial institution of consumer rates
to be charged by a title agent more critical.
Based upon recent communications between our Association and the
Arkansas Insurance Commissioner, it is our belief that the Arkansas Insurance
Commissioner will be asking the Arkansas legislature to pass some type of file
and use rate regulation at its next regularly convened session in 2017. As a result, the Arkansas Land Title Association
Board of Directors has decided that it would be prudent to educate the members
of the Arkansas Land Title Association as to what other states have implemented
in this area.
For informational
purposes only, the Arkansas Land Title Association has scheduled an
informational meeting on this subject for April 11, 2016 at the Capitol Hotel
in Little Rock, Arkansas. The program
will begin at 9:00 am. It is anticipated
that the program will end early that afternoon. The two speakers at this event
will be Mr. Timothy V. Kemp of Butler Snow Law Firm and Joseph Petrelli of
Demotech, Inc. Both speakers are nationally known experts in the field of title
insurance rates. Anti-trust counsel will
preside over the meeting.
The
Arkansas Land Title Association is committed to adhering strictly to the letter
and spirit of the antitrust laws.
Seminars and meetings conducted under the auspices of the Arkansas Land
Title Association are designed solely to provide a forum for the expression of
various points of view on topics described in the program or agendas for such
meetings. Under no circumstances shall
Arkansas Land Title Association seminars or meetings be used as a means for competing
companies or firms to reach any understanding – expressed or implied – that
restricts competition or in any way impairs the ability of members to exercise
independent business judgment regarding matters affecting competition. It is the responsibility of all seminar or
meeting participants to be aware of antitrust regulations, to prevent any
written or verbal discussions that appear to violate these laws, and to adhere
in every respect to antitrust compliance policy.
Please
keep in mind that there are numerous state and federal laws that prohibit the
exchange of information among competitors regarding price, refusals to deal or
agreements to proceed in certain anti-competitive respects. To that end, we must not engage in
discussions (either at this meeting or in private conversation) of our
individual company plans or contemplated activates concerning such subjects,
including the following:
- Individual company plans for raising, lowering
or stabilizing prices (premiums or commissions); - Circumstances, conditions or actions under which
individual companies will withdraw from particular lines of coverage in a
geographic market or restrict coverage in a market; - Doing business or refusing to do business with
particular, or classes of, insureds, agents, brokers, insurers or reinsurers;
and - Potential actions that would affect the
availability of products or services.
This topic could dramatically affect
the future of our title insurance business in Arkansas. It is very important that you attend and
become better educated in this area.
Thanks!
Jim Pender
President
Arkansas Land Title Association