A Washington broker part-owns a title agency in 2026 and pays its originators $75 for each referral sent there. May the broker reward referrals to the title agency in which it has a financial interest?
Correct Answer
A) Prohibited: an inducement for placing title business where an interest exists
A broker, originator, officer or employee, or a person with a financial interest in a broker, may not directly or indirectly give any fee, kickback, payment or thing of value as an inducement or reward for placing or referring business, or for causing title insurance business to go to a title agent in which they also have a financial interest. Other choices: paying employees is expressly covered; disclosure does not license the inducement; and pricing is a separate question. Source: RCW 19.146.103(1)
Why This Is the Correct Answer
A broker, originator, officer or employee, or a person with a financial interest in a broker, may not directly or indirectly give any fee, kickback, payment or thing of value as an inducement or reward for placing or referring business, or for causing title insurance business to go to a title agent in which they also have a financial interest. Other choices: paying employees is expressly covered; disclosure does not license the inducement; and pricing is a separate question. Source: RCW 19.146.103(1)
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