249 East Virginia Street, Tallahassee, FL = 32301 (850)=20 681-6422
FAX (850) 681-6271 WATS (800) 552-1065 = www.flta.org -=20 Kevin M. Hussey, CLC/CLS, President - Lee Huszagh, Executive = Secretary/Treasurer=20 e-mail - leeh@flta.org
The 2000 =
Legislative season has ended and I am happy to report that there were no =
major=20
changes what will affect our industry. In fact, it was a surprisingly =
quiet=20
year.=20
On May 9th your Board of Directors met =
for the=20
Spring Board Meeting in Orlando. One of the major issues that was =
discussed is=20
to formulate a strategic plan to address the expiration of the statutory =
title=20
insurance legislation that expires in just two years. This being an =
election=20
year, we will see significant changes in the Florida Legislature as well =
as the=20
Department of Insurance.=20
There was much discussion of these =
changes as=20
well as the effect of a constantly changing business environment and =
rapid=20
advancement in electronic capabilities. A task force has been assigned =
to=20
determine our best course of action be it re-enactment, modification, or =
return=20
to department of insurance regulatory power. We hope to have a plan in =
place by=20
the summer board meeting and any input you may have would be welcomed.=20
Another area of concern is expanding=20
membership. We are faced with several mergers of underwriters and =
changes in our=20
membership. There has been some discussion as to opening membership to =
attorney=20
agents as members. Initial surveys indicate that there is merit in the =
concept.=20
This will give the association a larger unified voice and present a =
forum for=20
communicating and understanding the different cultures.=20
At a recent ALTA workshop it was =
learned that=20
some changes may be needed to strengthen and expand the role of CLT. A =
work=20
group will be looking at any changes necessary to bring CLT current.=20
The Real Estate industry is very busy =
now. This=20
is the busiest and most competitive market I have ever been in. Please =
take a=20
few moments to reflect on our industry and give any feedback as to your =
thoughts=20
and ideas. They are important for us to change and move forward in a =
positive=20
manner. As we all know, changes can be rapid and usually dramatic. Our =
best=20
defense is to be aware and plan for change.=20
Notes on Referrals=20
I have received quite a few calls from =
around=20
the state and the most common discussion or question seems to be about=20
aggressive marketing efforts and whether they are legal. If anyone =
looking and=20
what can be done to stop or prevent it?=20
Aggressive marketing campaigns aimed at =
compensating the referrer of business is not uncommon in any business. =
In the=20
title industry we have heard reports of programs where a referrer of the =
order=20
is compensated for filling out an order form. Or a close relative of the =
referrer may be paid as a "marketer" of that referral.=20
We are all aware that RESPA prohibits =
the=20
payment of a referral fee, but as time moves forward many have attempted =
to=20
interpret any rules to determine what may be a violation or a clever =
business=20
interpretation. The Department of Insurance and the Department of Real =
Estate=20
are watching very closely to be sure that there are no violations. It =
seems that=20
as we see no enforcement, the "line" is being pushed even harder to what =
many=20
see as an obvious violation. I can assure you that enforcement efforts =
are in=20
place and that an audit may well be in place in your market. Initially =
most=20
callers were vitally concerned that these aggressive marketing efforts =
would put=20
them out of business. This has not been the case, and in follow up =
conversations=20
it seems that very little, if any, business was lost. The quality of the =
customer lost was determined not to be a negative issue.=20
One thing is for certain. These =
activities do=20
not look well to the regulators, and it would be wise to those =
participating or=20
thinking of participating to take a long, hard look at the message we =
are=20
sending our customer, regulators and the public in general. We must also =
look at=20
the impact giving away profits has on the bottom line.=20
I am always pleased to hear from =
someone who=20
refuses to participate, educates their customers, and works harder being =
a=20
better professional offering more value and service. It seems to me they =
will be=20
the winners.=20
Keeping Up to Date=20
Keeping our members informed of matters =
impacting the title insurance industry is a primary focus of you =
Association.=20
The monthly newsletter will continue to keep you abreast of =
developments, but=20
the term monthly alerts you to the fact that the news stories that have =
a short=20
shelf life may be stale when you read them. To stay on top of things on =
a daily=20
basis consult the FLTA web site, www.flta.org=20
in the section of the Bulletin Board entitled Legislative Issues almost =
daily=20
postings of new events are found here. You may also wish to browse the =
other=20
areas of the web site to see who has been promoted or who has changed =
companies=20
or job opportunities. There is also a category of Member Services that =
describe=20
discount services available to Association members.=20
The ABCs of MSAs=20
This month marks the third anniversary =
of the=20
start of the federal government's Medical Savings Account program. The =
original=20
concept was intended to be simple-provide affordable access to health =
care while=20
allowing people to save tax-deferred money for un-reimbursed medical =
costs. In=20
the three years since MSAs have been on the market, many employers and=20
self-employed are still not aware of them.=20
What, in simple terms, is a medical savings account? =
A medical savings account (MSA) is a =
tax-exempt=20
custodial account established for the purpose of paying medical expenses =
in=20
conjunction with a high deductible health plan. This innovative program =
was made=20
possible by the federal government. MSAs have been available since =
January 1,=20
1997.=20
Is an MSA a health plan or a savings plan?=20
It's both. In addition to providing =
medical,=20
hospital and pharmacy benefits, the MSA allows a covered person to =
deposit funds=20
in the MSA account to pay for qualified medical expenses and other =
out-of-pocket=20
costs that may not be covered under the health plan.=20
How does the savings portion of the MSA work?=20
Employers (or employees) can contribute =
up to=20
75% of the family deductable coverage and up to 65% of the single =
deductible.=20
Funds go into a tax-deferred account similar to an individual retirement =
account. The account holder (or insured) then pays for expenses out of =
savings=20
account funds by using a check or debit card. Unused money rolls over =
into=20
subsequent years and accrues interest. The balance can be withdrawn as =
regular=20
income, with tax penalty, for any purpose at age 65.=20
What are the primary benefits for people covered by =
MSAs?=20
An MSA gives individuals more control =
over=20
their health care and how their health care dollars are spent. In =
addition, this=20
is one way to save money for the future. Remember, interest earned in an =
MSA is=20
tax-deferred.=20
If MSAs have been around since January 1st, 1997, why haven't =
we=20
heard about them?=20
There has been criticism that the =
federal=20
government has not done enough to promote the availability of MSAs. =
There is=20
also a misconception that MSAs are complicated. In fact they were =
implemented to=20
make health insurance readily available to more people who need it, and =
to give=20
people a way to save money for the future. MSAs are only available to =
small=20
businesses and self-employed people.=20
Are MSAs a trend or will they be around?=20
The House has already voted to end the "temporary" status of the MSA =
program=20
as well as the lower deductibles and make MSAs available to employers of =
all=20
sizes. If the Senate follows suit, we'll likely see larger corporations =
signing=20
up for the program, which will make MSAs more visible to the general =
public.=20
Call ABI toll free at 877-711-5213 or (850) 222-9443 or fax us at =
(850)=20
383-1209 for more information or to begin to take advantage of the great =
health=20
care benefits offered.=20
e-mail www.room100.com/tsa ABI is Affiliated with the Florida Land Title =
Association.=20
New Association Member:=20
It is a pleasure to announce the opening of Community Land Title =
Corporation.=20
The Company is owned by R.F. "Bob" Booth, Jr., C.L.S., a 3rd generation =
title=20
man with over 16 years of experience. Booth serves on the Board of =
Directors of=20
the Florida Land Title Association and is proud to also serve on the=20
Association's Certified Land Title Institute. The Company is a full =
service=20
Title Agency located in Port St. Lucie servicing Martin and St. Lucie =
Counties=20
and is an approved source to provide title evidence to the majority of =
the=20
Underwriters and their agents.=20
New Application Procedures for Agents, Adjusters and other =
Insurance=20
Representatives:=20
The Department of Insurance is pleased =
to=20
introduce new application filing procedures for agents, adjusters and =
other=20
miscellaneous insurance representatives. Effective today, Assessment =
Systems,=20
Inc., will begin providing application screening services to the Florida =
Department of Insurance for all types except emergency adjusters, =
viatical=20
settlement brokers and reinsurance intermediaries. Many in the industry =
already=20
know ASI through the license exam administration and education tracking =
services=20
it currently provides in Florida.=20
The following is a quick overview of =
the new=20
process. The same information can also be found on our website at ************************************=20
CLC/CLS and Continuing Education Seminar St. Petersburg Association of Realtors 7655 38th =
Avenue North=20
St. Petersburg, FL.=20
CLC/CLS Training 9:00 to 12:00 $105.00 for Non-members Continuing Education only CLC/CLS Training For more information contact K.C. Price =
at Directory Updates:=20
We are beginning to update the Florida Land Title Association's =
Membership=20
Directory. If you have any changes for the 2000-2001 publication please =
mail=20
them to:=20
Or fax your changes to: (850) 681-6271 Upcoming Seminars:=20
June 12th: Melbourne=20
June 20th: St. Petersburg=20
July 17th: Coral Gables=20
All registration forms for these seminars are enclosed =
with this=20
newsletter.=20
***************************************=20
Money Saving Ideas=20
Elsewhere in this newsletter is an article on saving money through a =
health=20
care savings plan. In addition to this Association's efforts to provide=20
educational opportunities in the field of title insurance it is also our =
mission=20
to provide information that is of a general business nature. We welcome =
ideas=20
and tips from our members on how they have saved money or become more =
efficient.=20
This month's tip comes from Trish Matarazzo, President of Warranty Title =
Insurance Agency, in Melbourne, and member of the Agents' Section =
Executive=20
Committee, and deals with saving postage costs. Many of our members =
disburse=20
payments to the same vendors each and every month. Pest inspection =
companies,=20
surveyors, home warranty companies, underwriter remittances, and the =
like.=20
Rather than sending each of these in a separate mailing, bundle your =
payments in=20
one mailing, thus saving on postage, envelopes, and the time spent =
addressing=20
multiple mailings. Another idea would be to check out "Stamps.com", an =
internet=20
postage provider whose fees are extremely competitive. Send us your cost =
reduction ideas to assist our membership.=20
Enclosed in this newsletter are Advertising Space Reservations for =
FLTA's=20
Florida Land Title News and the Tallahassee Report. If you are =
interested in=20
Advertising in either of our two publications, simply fill out the form =
and=20
return it to the association office.=20
UPS offers Discount of FLTA=20
We have had a very favorable response to the UPS discount program =
that is=20
being offered to our membership. The program entitles FLTA members to =
special=20
savings on overnight letter and package deliveries and Worldwide =
Express.=20
Whether you already have a UPS account or are a new UPS customer, just =
call=20
1-800-325-7000 and refer to special discount #P890494, or simply mention =
the=20
Florida Land Title Association. Act now and begin to save!!=20
Basic Title Insurance Handbook Revisions:=20
Chapter 8: Trusts These chapters have been revised and are now ready to be purchased =
for $34.00=20
(including tax and shipping). If you would like to purchase these =
chapters=20
simply call the association office and we will mail them out to you.=20
or
http://www.msapage.org/=20
June 20, =
2000=20
Lunch 12:00 to=20
1:00
Continuing Education Film 1:00 to 4:00=20
$80.00 for members=20
$75.00 for =
Non-members
$50.00=20
for members=20
$35.00=20
1-800-434-4104=20
Florida Land Title Association
249 East Virginia=20
Street
Tallahassee, FL 32301=20
Chapter 9: Bankruptcy
Chapter 10: =
Foreclosures/ Deeds=20
in Lieu
Chapter 12: Judgements & Liens
Chapter 15: Access=20