According to his agency the effort also involved expensive wining and dining of agents and brokers.

Southland came under investigation in March after numerous complaints surfaced concerning alleged illegal rebates and the other inducements, a department announcement said.

Officials said the rebates were paid to generate more business for the companies and noted that in 2002 the firm was fined $1.5 million for similar violations and agreed to put money in escrow against further infractions.

"Consumers count on brokers to help them find the best deals at the best prices for their insurance transactions," said California Insurance Commissioner John Garamendi. "When illegal rebates are offered to entice brokers to steer business to a dishonest firm, there is very little hope that the best interests of the consumer will be served."

Southland responded that, "At no point has the consumer been negatively impacted by any of the marketing practices of Southland or any of our competitors."

The company said it is "one of many major title companies that went through a market conduct investigation by the Department of Insurance. We have cooperated fully with the department during this process and per our settlement agreement of 2002 we have released the $500,000 held in escrow.

"With the conclusion and this final settlement we are glad to be given clarity as to acceptable marketing practices in this competitive market," said Southland.

The investigation, according to the department, uncovered suspected illegal activity including: the compensation of employees for fraudulent and/or fabricated invoices and expense reports in excess of $47,000; providing food, beverages, and entertainment in excess of $174,000; providing gifts and gift certificates in excess of $62,000; and providing business support services in excess of $218,000?all to benefit real estate agents and brokers.

The department noted that in April 2002, after similar violations were unearthed, former Commissioner Harry W. Low ordered Southland to comply with California's anti-rebate statutes.

Mr. Low also ordered the company to suspend marketing efforts to sales representatives for five business days, to pay the $1.5 million fine, and to deposit $500,000 in an independent escrow account for two years. This escrow account was subject to immediate seizure by the commissioner in the event of further illegal rebate activities.

Mr. Williams said purchasers of the insurance were never informed of the rebate and the department was concerned that customers depend on brokers to get the best deal. "If [brokers] steer you to the same company over and over it can impact competition and the type of deal you get as a consumer."