R592-6-3. Definitions

  For the purpose of this rule the Commission adopts the definitions as set forth in Section 31A-1-301 and 31A-2-402, and the following:

  (1) "Bona fide real estate transaction" means:

  (a) a preliminary title report is issued to a seller or listing agent in conjunction with the listing of a property; or

  (b) a commitment for title insurance is ordered, issued, or distributed in a purchase and sale transaction showing the name of the proposed buyer and the sales price, or in a loan transaction showing the proposed lender and loan amount.

  (2) "Business Activities" shall include sporting events, sporting activities, musical and art events. In no case shall such business activities rise to the level of ceremonies, for example, award banquets, recognition events or similar activities sponsored by or for clients, or include travel by air, or other commercial transportation.

  (3) "Business meals" shall include breakfast, brunch, lunch, dinner, cocktails and tips. In no case shall such business meals raise to the level of ceremonies, for example, awards banquets, recognition events or similar activities sponsored by or for clients.

  (4)(a) "Client" means any person, or group, who influences, or who may influence, the placement of title insurance business or who is engaged in a business, profession or occupation of:

  (i) buying or selling interests in real property; and

  (ii) making loans secured by interests in real property.

  (b) "Client" includes real estate agents, real estate brokers, mortgage brokers, lending or financial institutions, builders, developers, subdividers, attorneys, consumers, escrow companies and the employees, agents, representatives, solicitors and groups or associations of any of the foregoing.

  (5) "Discount" means the furnishing or offering to furnish title insurance, services constituting the business of title insurance or escrow services for a total charge less than the amounts set forth in the applicable rate schedules filed pursuant to Section 31A-19a-203 or 31A-19a-209.

  (6) "Official trade association publication" means:

  (a) a membership directory, provided its exclusive purpose is that of providing the distribution of an annual roster of the association's members to the membership and other interested parties; or

  (b) an annual, semiannual, quarterly or monthly publication containing information and topical material for the benefit of the members of the association.

  (7) "Title insurance business" means the business of title insurance and the conducting of escrow.

  (8) "Title producer" means a title insurer, agency title insurance producer, or individual title insurance producer.

  (9) "Trade Association" means a recognized association of persons, a majority of whom are clients or persons whose primary activity involves real property.