The Butler rebate in Florida refers to the Supreme Court decision in the 2000 case of Chicago Title Insurance Co. v. Butler, 2000 WL 1535354 (Fla. 2000).
In 1992 the Florida Legislature enacted the following laws.
1.
Require the Department of Insurance to establish rates to be charged for Florida title insurance "risk premium"
2.To guarantee that 30% of the adopted "risk premium" would be paid to the title insurance underwriter.
3.
To require that at least actual cost must be charged for related title services in addition to the adopted risk premium.
4.
To prohibit the giving of "unlawful rebates" by a Florida title insurer or Florida title agent.
Butler argued that the anti-rebate law deprived him of his constitutionally protected right to negotiate a Florida title agent’s commission. The Supreme Court agreed with him. In Florida there is now an available rebate on title insurance commonly referred to as the Butler Rebate.
Many Florida title insurance agents will not offer this discount or will only provide it when the customer asks about it. Since many customers are not aware of the Florida Butler Rebate they never ask and therefore pay more than they should.
|