Industry News

LandAmerica settles California kickback probe for $4.5 million

Sum includes $2.6 million refund to customers

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LandAmerica has settled with California's insurance commissioner for a total of $4.5 million in an alleged title insurance kickback scheme, a settlement that includes a $2.6 million refund to customers, state officials said this morning. LandAmerica Financial Corp., the parent company ofCommonwealth Land Title Insurance Co., Lawyers Title Insurance Corp. and Transnation Title Insurance Co., agreed to a settlement of $4.5 million, which includes $2.6 million refunded to customers and $1.9 million in monetary penalties, including legal cost reimbursement, officials said. LandAmerica was accused of setting up a captive reinsurance company to funnel illegal rebates to banks, builders and Realtors to steer business back to the title companies. "We have maintained from the start that our captive reinsurance arrangements complied with all known rules and regulations and that no consumer paid more under these arrangements," said LandAmerica President and CEO Theodore L. Chandler, Jr. "However...