Under the November 2005 multi-state agreement led by Colorado, title insurers promised to make refunds of an estimated $1.2 million to customers in at least 18 states. The title insurers admitted no wrongdoing, but the agreement outlined title captive company insurance arrangements that it said violated laws against kickbacks.

Elsewhere, title insurers have paid more than $35 million in individual settlements with states.

Title insurer activities were the target of an April hearing by the Housing Subcommittee of the U.S. House Financial Services Committee after the Government Accountability Office issued a scathing report finding a lack of competitiveness, regulation and questionable title insurance costs.

Mr. Kreidler's office's 18-month investigation of 12 title companies in three counties found that title insurers in the state "routinely flaunt state laws and regulations by using illegal incentives and inducements to steer business."

"Heading into the investigation, we suspected that the industry might have a problem," Mr. Kreidler said. "But we sure didn't expect to find that all of the major players in the greater Seattle title insurance market were routinely breaking state laws that limit and restrict the use of incentives and giveaways to steer business."

He added that "the real shocker, however, was the scope and extent of the abuse."

State law sets a limit of $25 per person per year as inducement, payment or reward for placing or causing title business placement, but investigators said they found that many of the companies exceeded those limits by thousands of dollars on a regular basis.

Washington investigators found that one company spent $11,000 on tickets and expenses at a pair of Sonics games. One company's agent spent $6,000 for cocktails during the 18-month period under investigation. Another company picked up a single restaurant tab for more than $3,300.

The report said the investigation targeted "reverse competition" marketing ploys commonly found in the title insurance industry.

(Reverse competition, it was explained, refers to the practice by title insurers of soliciting business not from the consumers who buy their products, but from other major players in the sale and purchase of homes--real estate agents, builders, banks, lenders and other middlemen.)

Wining and dining of middlemen by title insurers, the report said, is intended to convince real estate agents and others to steer their home-buying clients to their title companies for their title insurance needs.

"Because of the sheer numbers of violations uncovered in the investigation" in King, Snohomish and Pierce counties, and "the anticipated costs and resources needed to mount a state-wide enforcement effort to punish companies for past wrongdoing, the agency will focus its efforts on future prevention and compliance," it was announced.

The department said it will mount an educational campaign "to help companies understand that they have a serious problem and show how they can fix it."

Mr. Kreidler said title companies can expect to receive technical guidance from his office that will explain state law, establish expectations for compliance and set down enforcement sanctions for violators. Future infractions will be prosecuted to the fullest extent of the law, he promised.

In the past, the American Land Title Association trade group has said the carriers' problems with authorities have been caused by inadequate information from the U.S. Department of Housing and Urban Development, from which they had sought guidance.

The insurance commissioner's report said that among the companies it looked at, First American Title Insurance Co. was "the worst offender in the investigation," ignoring the $25 limit and spending $120,000 a month on improper activities and giveaways.

Thomas Hartman, Northwest regional vice president for First American Title Insurance Company, stated in response:

"Over the past several years, we have consistently sought clarity and uniform enforcement of the rules within our industry. While we dispute some of the individual findings, we welcome the clarity this report provides and we are in complete agreement with the suggested recommendations. We will continue to work closely with the Office of the Insurance Commissioner and will do everything within our power to effect the changes outlined in Mr. Kreidler's report."

The agency's report said it also examined Chicago Title Insurance Company, The Land America Companies, Fidelity National Title Company of Washington, Old Republic Title Ltd., Pacific Northwest Title Company of Washington, Rainier Title Company, Stewart Title Company of Seattle and Ticor Title Company of Washington.

Mr. Kreidler said his office will undertake a consumer protection campaign to educate consumers about title insurance and urge them to shop just as they would for other lines of insurance.