Industry News

Nine title insurers to pay $37.8 million in settlement

Companies settle in California kickback probe

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Nine major title insurance companies agreed to pay $37.8 million in refunds and penalties for alleged illegal rebating in a settlement with California Insurance Commissioner John Garamendi, the commissioner announced today.   In addition to $12.5 million in penalties, the companies will pay refunds to consumers totaling $25.3 million, or an average refund of over $300 for consumers.   "Just sit tight for more information to come," Insurance Department Spokesperson Norman Williams said as to how consumers should proceed in order to get their refunds. "When the mechanism is set up, we'll make an announcement as to how the refunds will be distributed."   There's a good possibility that the companies will simply mail the refunds to consumers with no further action being necessary, the spokesman said. Williams said, "Whatever the process is, we will monitor the process and receive regular reports from the companies" as refunds are made.   The companies were accused of...