You asked if other states set in statute the amount of commission a title insurance agent may receive.

Four states set in statute the amount of commission a title insurance agent (usually an attorney) may receive from a title insurer: (1) Connecticut requires agents to receive up to 60% of the insurance policy's gross premium; (2) Florida requires 60% to 70% of premium based on the amount of liability under the policy; (3) New Mexico requires 42. 5% of premium; and (3) South Carolina requires up to 60% (See, CGS § 38a-415; Fla. Stat. Ann. § 627. 782 and Fla. Admin. Code Ann. 690-186. 003; N. M. Stat. Ann. § 59A-30-6 and N. M. Admin. Code tit. 13, § 13. 14. 3. 11C; and S. C. Code Ann. § 38-75-1000).

Commissions for other property/casualty insurance are generally in the range of 10% to 25% of premium. Title insurance is a unique and complex insurance product. The higher title insurance commission, or retention, reflects a sales commission as well as underwriting, loss prevention, and administration costs the agent incurs and which the insurer would incur if it issued the policy directly instead of through the agent.

Title insurance indemnifies for existing, but unidentified, or specifically underwritten defects in a property's title. A title insurance agent's responsibilities include a thorough title search by reviewing documents affecting a particular property, including affadavits, hold harmless agreements, liens, land surveys, zoning permits, among others. The agent examines the condition of the title, evaluates (underwrites) the insurability of the property, and attempts to clear any defects. The agent often transcribes the property's legal description and enumerates easements and other special property rights for inclusion in the policy. Because the policy insures against unknown defects at the time of transfer, the agent's search and evaluation is extremely important for mitigating potential claims made under the policy.

JLK: dw