My partner and I are title policy agents. One insurer wants to buy title policies we wrote for other companies. Can I 'sell' those policies?

Plain-English summary

The inquiring attorney and his partner were title policy agents for various title insurance companies. One of those companies asked the attorney to "sell" to it title policies that had been written for other title insurance companies. The attorney asked about the ethical propriety of doing so and submitted a contract for review.

The panel declined to review the validity of the submitted contract, because such an analysis involves questions of substantive law rather than professional ethics, and the panel has no authority to issue opinions dealing with substantive law outside the area of legal ethics.

On the ethics question, the panel took the position that the attorney must secure the informed consent of each client for whom a title insurance policy was prepared before such policy can be "sold" to other title insurance companies.

Currency note

This opinion was issued in 1991, after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which renumbered and amended several provisions. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific guidance mentioned here.

Common questions

Q: Can I sell title policies I prepared for one insurer to another insurer?

A: Under this opinion, only with consent. The panel concluded the attorney must secure each affected client's informed consent before such a policy can be "sold" to other title insurance companies.

Q: Will the panel tell me whether the sale contract is valid?

A: No. The panel declined to review the contract's validity because that involves substantive law outside legal ethics, which is beyond its authority.

Q: Whose consent do I need?

A: Per the opinion, the informed consent of each client for whom a title insurance policy was prepared.

Background and rules framework

The opinion does not cite a numbered Rule of Professional Conduct. It resolves the ethics question on the requirement of each affected client's informed consent before the lawyer may transfer the client's title policy to another insurer, and separately declines the contract-validity question as a matter of substantive law outside the panel's ethics authority.

Citations and references

Rules of Professional Conduct:

• None cited. The opinion conditions the transfer on each client's informed consent.

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

• RI EAP Op. 91-40: Title Insurer Prosecuting Actions in a Bank's Name
• RI EAP Op. 91-48: A Former-Firm Client Conflict

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2091-54.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

Digest of Ethics Advisory Panel
Opinion #91-54, Request #172
Issued August 29, 1991

An attorney seeks Panel advice concerning the ethical propriety of "selling" title insurance policies. He indicated that he and his partner are title policy agents for various title insurance companies. One of these companies has asked him to "sell" to them title policies which were written for other title insurance companies.

The Panel declines to review the validity of the contract he submitted because such an analysis involves questions of substantive law rather than professional ethics. The Panel has no authority to issue opinions dealing with substantive law outside the area of legal ethics.

The Panel takes the position that one must secure the informed consent of each client for whom a title insurance policy was prepared before such policy can be "sold" to other title insurance companies.