Panel: LandAm Tried to Discredit Regulator

Top executives at LandAmerica Financial Group approved the use of "personal information" about a Colorado insurance regulator to undermine her investigation of the title insurance company's payments to builders and lenders through captive reinsurance arrangements, according to a House Financial Services Committee report.Colorado Deputy Insurance Commissioner Erin Toll was also involved in negotiating a multistate captive reinsurance settlement with LandAmerica, which the title insurer was resisting in late 2005 and early 2006. "The company had personal information regarding Ms. Toll's family background and relationships and raised it with several other state insurance regulators, threatening to 'go public' and get 'real stinky real quick' if Ms. Toll continued her efforts," the committee report says. The information was supposed to show that Ms. Toll had conflicts of interest and was biased against LandAmerica because two sisters and an ex-husband had worked for the title insurer. At an April 26 committee hearing, Ms. Toll testified that she felt "threatened" by LandAmerica's actions, and the committee chairman launched an investigation. The committee report describes captive reinsurance arrangements as sophisticated "kickback" schemes. "LandAmerica appeared more interested in discrediting a state regulator than in addressing legitimate concerns about its business practices," the report concluded. LandAmerica officials could not be reached for comment by MortgageWire's deadline.