LandAmerica Resolves Captive Reinsurance Case
LandAmerica Financial Group Inc., Richmond, Va., has entered into a settlement agreement with the Nevada Division of Insurance over captive reinsurance arrangements.
LandAmerica has agreed to a settlement of approximately $3 million, the majority of which will be refunded to Nevada's consumers who were affected. In addition, the company will pay $560,280 in administrative fines and $239,720 toward a consumer education program concerning title insurance.
DOI said the consumer education program was one of the major points to the settlement agreement.
"The development of an educational program to help consumers understand title insurance is long overdue," said Alice A. Molasky-Arman, Nevada's insurance commissioner. "The settlement agreement is a step in the right direction."
LandAmerica neither admitted nor denied the allegations in the order.
"We appreciate the willingness of the Nevada DOI to work with us to resolve this matter so that consumers receive the ultimate benefit from the education program we are creating under the direction of the Nevada commissioner of insurance," said president and chief executive Theodore L. Chandler Jr., in a statement issued by LandAmerica
According to the agreement, LandAmerica from 1997 through February 2005 participated in captive reinsurance arrangements. There were some 14,007 title orders involving properties in Nevada, with reinsurance premiums of over $3.8 million.
On June 19, commissioner Molasky-Arman will be conducting a public hearing on title insurance rates, including looking at ways to simplify and clarify them. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com