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Nevada Insurance Commissioner Reaches
$3 million Settlement with Land America
5/15/06, Carson City, NV – Insurance
Commissioner Alice A. Molasky-Arman announced today
that she has reached an agreement with LandAmerica Financial
Group, Inc.; the parent company of Lawyers Title Insurance
Corporation, Commonwealth Land Title Insurance Company,
Transnation Title Insurance Company, LandAmerica Reinsurance
Services, Inc., Commonwealth Land Title Insurance Company
of New Jersey, Land Title Insurance Company, and the
Title Insurance Company of Nevada, concerning illegal
title insurance rebating.
LandAmerica has agreed to a settlement of approximately
$3 million, the majority of which will be refunded to
Nevada’s consumers who were affected. In addition, the
company will pay $560,280 in administrative fines and
$239,720 toward a consumer education program concerning
title insurance. The settlement stems from allegations
by Division staff that LandAmerica Financial Corporation
ceded a percentage of title insurance premiums to certain
captive reinsurance companies to negotiate illegal rebates
to banks, builders and realtors and to steer business
back to the title companies.
“The development of an educational program to help consumers
understand title insurance is long overdue,” said Molasky-Arman.
“The settlement agreement is a step in the right direction.
I expect the company’s continued cooperation as we move
forward to evaluate the appropriateness of rates being
charged.”
As part of the settlement, LandAmerica agreed to stop
engaging in the captive reinsurance arrangements, as
well as any similar captive reinsurance arrangements
in Nevada. Further, LandAmerica will conduct reasonable
due diligence in locating affected Nevada homeowners/buyers.
The company has until May 26, 2007 to complete the refund
process.
LandAmerica neither admitted nor denied the allegations
in the Order issued by the Commissioner.
For consumer refund information, contact Kevin Harris
or Lloyd Osgood at LandAmerica Financial Corporation
by calling toll free at (800) 446-7086.
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