Olympia, Wash. — Beginning March 21, the way title insurance companies interact with real estate agents and others who refer business to them will change. Insurance Commissioner Mike Kreidler has adopted new rules that specify what incentives are and are not allowed.

The rules were developed in response to widespread allegations that some title companies provide gifts and incentives to real estate agents to buy their customers’ business. Insurers expressed confusion about what was allowed under the old rules, which limited all inducements to $25 per person per year, so Kreidler’s office focused on providing clearer guidelines.

The new rules specify individual limits for different activities. If something is not specifically approved in the new language, it is not allowed.

The new rules are a result of legislation passed in 2008 that prohibits title insurers from giving anything of value to anyone in a position to refer or influence the referral of title insurance business, except as permitted under rules adopted by the commissioner. Title companies, real estate agents and representatives from trade associations were actively involved in the rule-making process.

The Insurance Commissioner’s Web site provides a summary of the new rules and includes links to the rules themselves.

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