Industry News

Fidelity to refund $1.2M for alleged kickbacks

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Fidelity National Financial has settled Colorado's investigation of alleged title insurance-related kickbacks, agreeing to pay about $1.2 million to consumers nationwide, Colorado's Insurance Commission reported. In the settlement agreement, Fidelity, which already terminated its captive reinsurance treaties as part of the probe, agreed to refund about $1.2 million to consumers in approximately 18 states, without admitting wrongdoing. The company also agreed to continue to refrain from such captive insurance arrangements and not enter into new ones, unless it can get a court order saying the arrangements are legal. The Colorado investigation of nine title insurers, including Fidelity, led to the earlier refunding of about $24 million to consumers by First American Title Insurance Co., and sparked dozens of similar investigations nationwide in states including Florida, Washington, California, Oklahoma, Minnesota and Washington. The companies are accused of phony reinsurance contracts ...