(a) Notwithstanding any other provision of this article no title insurer, no controlled
escrow company, and no underwritten title company shall pay any commission for the
solicitation or negotiation of any services constituting the business of title insurance.
(b) The provisions of subdivision (a) notwithstanding, a title insurer, controlled
escrow company, or underwritten title company may pay to full-time salaried employees
a commission, incentive compensation or bonuses based on any such employees' level
of production of any services constituting the business of title insurance. Any title insurer, controlled escrow company, or underwritten title company and,
where applicable their affiliates, which makes such payments shall maintain adequate
records detailing the conditions to receipt of any commission, incentive compensation
or bonus, the recipient thereof and the amount paid.
(c) Any employee of a title insurer, underwritten title company, or controlled escrow
company shall not, directly or indirectly, pay or offer to pay, either directly or
indirectly, any part of his or her compensation, whether denominated salary, incentive
compensation, or bonuses to any person or entity defined in Section 12404, as an inducement for, or as compensation for, any title insurance business or any
escrow or other title business, and any payment or offer to pay this consideration
is an unlawful rebate.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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