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Agent Update: Retention of Fees-Colorado Revised Statutes

posted Mar 9, 2020, 9:38 AM by Kim Whitlock

Recently, the Colorado Department of Regulatory Agencies Division of Insurance (DORA) re-released its November 2008 Bulletin No. B-5.22 (Bulletin) clarifying the Colorado Revised Statutes pertaining to the retention of certain fees for services not actually performed.

 

Section 10-11-108(1)(d), C.R.S. states, in relevant part, that “A title insurance company or title insurance agent shall not … give or receive or attempt to give or receive any portion or percentage of any charge made or received in connection with the business of title insurance if such charge is not for services actually rendered.”

 

As stated in the Bulletin, a copy of which can be found at the link below for your reference, DORA advises that the retention or processing of other “pass through” fees not used for the fee’s stated purpose constitutes receiving a portion of a charge for services not actually performed, in violation of Section 10-11-108(1)(d).

 

Pursuant to the Bulletin and Section 10-11-108(1)(d), C.R.S., ATGF issuing agents are instructed to return any unused portion of recording fees, taxes, homeowner association charges, utilities, water escrows or other “pass-through” fees to the consumer who paid the fee (as evidenced by the closing and settlement documents executed by the parties at closing, such as the Closing Disclosure or Settlement Statement).

 

https://drive.google.com/file/d/0BwMmWVFE3YMsdEVKWEEwblFnNWc/view

 

 

We appreciate your hard work and loyalty.

Questions? Contact us at: title@atgf.net or 303-292-3055

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