Commonwealth Land Title Insurance Co., Lawyers Title Insurance Corp. and Transnation Title Insurance Co.
by Kelly Johnson, www.bizjournals.com
The California Department of Insurance reached a $3.5 million settlement with three title underwriters within LandAmerica Financial Corporation Group Inc. over unfair rating practices.
From the settlement with the Virginia corporation, $2 million will be refunded to consumers, department officials said in a Wednesday news release.
Commonwealth Land Title Insurance Co., Lawyers Title Insurance Corp. and Transnation Title Insurance Co., principal title underwriters of parent company LandAmerica Financial, were accused of failing to comply with agreed-to rates, incorrectly rating policies and failing to apply discounts, which resulted in consumers being overcharged. The insurance department made these accusations after examining the companies between Jan. 1 and March 31, 2005.
In the settlement, LandAmerica agreed to stop its unfair practices in rating and underwriting and to follow its own rates. LandAmerica also agreed to pay $3.5 million in penalties and refunds to consumers.
Of the total, $1.5 million is a penalty. LandAmerica will issue refunds to identified overcharged consumers, for up to $2 million total.
Consumers can check their eligibility for a refund by calling LandAmerica at 1-800-446-7086.
Sacramento Business Journal