(1) An affiliated business arrangement between a person and a title entity violates Section 8 of RESPA for purposes of state law if:
(a) the title entity does not have sufficient capital and net worth in a reserve account in the title entity's name; or
(b) more than 70% of the title entity's annual title insurance business is affiliated business on or after the later of:
(i) two years after the title entity begins an affiliated business arrangement; or
(ii) June 1, 2021.
(2) In addition to Subsection (1), the division may find that an affiliated business arrangement between a person and a title entity violates Section 8 of RESPA after evaluating and weighing the following factors in light of the specific facts before the division:
(a) whether the title entity:
(i) is staffed with the title entity's own employees to conduct title insurance business;
(ii) manages the title entity's own business affairs;
(iii) has a physical office for business that is separate from any producer's or associate's office and pays market rent;
(iv) provides the essential functions of title insurance business for a fee, including incurring the risks and receiving the rewards of any comparable title entity; and
(v) performs the essential functions of title insurance business itself;
(b) if the title entity contracts with another person to perform a portion of the title entity's title insurance business, whether the contract:
(i) is with an independent third party; and
(ii) provides payment for the services that bears a reasonable relationship to the value of the services or goods received; and
(c) whether the person from whom the title entity receives referrals under the affiliated business arrangement also sends title insurance business to other title entities.