What is a Florida Butler Rebate?
In Florida there is now an available rebate on title insurance commonly referred to as the Butler Rebate.
As a result of Butler, Florida title insurance rates are promulgated with respect to the underwriter’s portion of the total premium charge and negotiable with respect to the agents portion. For example, aFlorida Butler Rebatessume a situation where a consumer is given a Butler rebate and the transaction calls for the consumer to be given a reissue credit. If the consumer doesn’t receive it, the premium charged to the consumer could still fall below the rate permitted pursuant to the Florida promulgated rate scheme, but only to the extent of the agencies portion. In Florida, the agencies’ portion can be as high as 70% of the total risk rate premium set forth in the F.A.C. The underwriter, however, in a situation identical to the one quoted above would still collect from the consumer a premium (based on a 70% /30% split) in excess of what the regulations permit an industry to charge, which would constitute an unjust enrichment.
Finally, the Butler case delineates terms for a negotiated marketplace between title insurance agents and consumers with respect to the charge for the performance of primary title services. Essentially, these are private contracts between consumers and title insurance agents. The inescapable conclusion is that these transactions involve individual issues of peculiar matter with respect to the portion of the title insurance premium retained by the issuing agent.