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The Florida Butler Rebate

November 10th, 2009

The Butler Rebate refers to a Florida Supreme Court decision in 2000, Chicago Title Insurance Co., et al., Appellants, vs. S. Clark Butler, et al., Appellees. [October 19, 2000] Corrected Opinion PER CURIAM, which gave title insurance agents in Florida the ability to negotiate, or otherwise rebate, the portion of the split title insurance premium retained by them (70% agents/30% underwriter).

In essence, the Butler ruling declares certain anti-rebate statutes in Florida to be unconstitutional to the extent they prohibit a Florida title insurance agent from rebating a portion of the risk rate premium retained by the agent for services rendered (i.e., “Primary Title Services”) in connection with the issuance of title insurance policies. See Sec. 627.7711(b) Fla. Stat. Entitlement to any portion of the promulgated rate strictly depends on performance of these primary title services, or as HUD puts it, “core title services”.

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