Welcome!




Expand Your Education with These Courses from
Territory Management: Skills for Sales Success: Part Eight.
A Consumer Advocate Approach to Real Estate & Mortgages: Courses 1 & 2.
Accredited Buyer's Representative.
Bundle 2: CIPS Elective Courses (Non-US Version).
Bundle 2: CIPS Elective Courses (US Version).

Stewart Title Pays $1 Million in California Insurance Settlement Claim

Have a comment on this article? Share on Facebook!

RISMEDIA, August 30, 2007-Stewart Title Guaranty Co. has settled a claim of $46,700,525 for $1,000,400 in an administrative proceeding filed by the California Department of Insurance (CDOI) concerning Stewart’s purchase of reinsurance from alleged captive reinsurance companies.

In June 2007, the CDOI amended its pleadings to dismiss its claim that Stewart did business with a non-admitted insurer and dismiss its claim that Stewart violated the federal Real Estate Settlement Procedures Act (RESPA). Stewart maintained in the action and continues to maintain that its reinsurance transactions are legal under both state and federal law and caused no consumer harm. In fact, CDOI did not allege any consumer harm in the action.

Stewart believes it has very strong legal and factual defenses to the CDOI’s allegations and has conducted its business appropriately. However, as Stewart has not been reinsuring California transactions with alleged captive reinsurance companies for some time, it is in Stewart’s interest to terminate the lengthy and costly scheduled hearing over matters not being practiced or pursued.

Contrary to the news release issued by the CDOI, Stewart did not pay 50% of the title insurance premium for reinsurance. Stewart was prepared to demonstrate that its reinsurance payments were at market rates. Further Stewart did not camouflage its reinsurance agreements; rather it disclosed its agreements in its annual filings with the CDOI. By entering into the Stipulation and Waiver with the CDOI, Stewart did not admit any wrongdoing, and has entered into the Stipulation and Waiver as a compromise to avoid the cost and time of further litigation.

For more information, visit http://www.stewart.com/.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Categories: Uncategorized

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>