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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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