New York title insurers are being investigated in connection with alleged market conduct improprieties, a New York Insurance Department official confirmed today.
"We are investigating along with the attorney general's office the market conduct practices of certain title insurers that operate in the state," said department spokesman Mike Barry. He would not elaborate.
New York is the latest state to examine title insurers' activities. They have been probed in Colorado, California and Washington, and have paid more than $50 million to settle allegations that they have paid disguised kickbacks to mortgage brokers, developers and other sources to have business steered their way.
A spokesperson for the Washington Insurance Department, Sandi Peck, said that agency's investigation is still underway and "I'm expecting it will be wrapping up this spring."
Earlier this week, California Insurance Commissioner John Garamendi reached a $4.5 million settlement with one major title insurer holding company in the state, bringing the total settlements the department has reached with title insurers to $37 million
In the latest agreement the LandAmerica Financial Corp. agreed to stop captive reinsurance business arrangements and to cooperate with the CDI in improving consumer awareness of title insurance rates.
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