Industry News

California proposes new rules for title insurance industry

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Claiming that there's not enough competition in the title insurance industry, California's Insurance Commissioner is proposing new regulations he says will result in rate reductions of at least 20 percent. A public hearing on the proposed regulations -- which include new reporting requirements and a rate-setting formula -- is set for 10 a.m. Aug. 30 in San Francisco. California's Insurance Commissioner has had the power to terminate title insurance rates found to be "excessive, inadequate or unfairly discriminatory" since 1973. Commissioner John Garamendi -- the Democratic Party nominee for lieutenant governor in the November election -- says he needs better tools to determine and set fair rates. Existing law grants the Insurance Commissioner the authority to collect financial data from title companies to generate statistics that can be used to review and evaluate rate filings. The new regulations would require title insurers, underwritten title companies and controlled e...