Industry News

California delays title insurance rate cap until 2011

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California's insurance commissioner has decided to delay until 2011 a plan to cap title insurance rates and escrow fees but says he expects the industry to introduce a comprehensive package of reforms that includes rate cuts long before then. Insurance Commissioner Steve Poizner, while critical of what he sees as a lack of competition in the title insurance industry, has also said a rate cap proposed by his predecessor is not his "first instinct" for remedying the problem. On Thursday, Poizner announced he had submitted changes to proposed rate regulations put forward by former Insurance Commissioner John Garamendi, which would delay the implementation of a rate cap by one year. Poizner told Inman News the decision was driven in part by delays in what has been a lengthy approval process. But he said it was also his intention to "create a small window, a short opportunity for the title industry to step up and propose and implement a series of structural reforms that clean up problems ...