Press Release 2005-07 The Arizona Department of Insurance and LandAmerica Title Companies Reach Regulatory Settlement Regarding Captive Reinsurance Arrangements $1 Million to Red Cross and $250,000 Education Fund

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Arizona Department of Insurance
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Phoenix, AZ  85007-2630


Starting July 1, 2020, we became the
Department of Insurance and Financial Institutions (DIFI).


Media Contact: Erin Klug Public Information Officer (602) 912-8456

For Immediate Release September 8, 2005
 

PHOENIX – The Arizona Department of Insurance (ADOI) reached a Regulatory Settlement Agreement
with LandAmerica Financial Group, Inc. (LandAmerica) to resolve ADOI’s investigation into LandAmerica’s
three title companies in Arizona, Commonwealth Land Title Insurance Company, Lawyers Title Insurance
Company and Transnation Title Insurance Company, regarding their use of Captive Reinsurance
Arrangements from 1997 to February, 2005, when the LandAmerica companies voluntarily terminated
these Captive Reinsurance Arrangements nationwide.
Under these Captive Reinsurance Arrangements, the LandAmerica title companies shared a portion of a
consumers' title insurance premium and risk with captive reinsurers, resulting in a potential benefit to the
reinsurer, or its owners. Although the LandAmerica companies disclosed these Arrangements to their
customers and did not charge any higher premium than they would have otherwise charged, ADOI
questioned the legality of these premium sharing Arrangements as possible violations of the Arizona antiinducement
statute (A.R.S. § 20-1585) which prohibits title insurers from paying an inducement to obtain
title insurance business.
To resolve this investigation, LandAmerica agreed to contribute $1,000,000 to the Arizona Chapters of the
American Red Cross for the benefit of Arizona citizens and the victims of Hurricane Katrina recently
evacuated to Arizona. In addition, LandAmerica will establish a $250,000 Title Insurance Education Fund,
under ADOI oversight and administration, to educate Arizona consumers about title insurance and raise
awareness of consumers’ rights in title insurance matters.
"The ADOI is pleased with LandAmerica’s willingness to resolve this matter to the benefit of Arizona
consumers and, in this time of national crisis, in recognition of the responsibilities we all share in
contributing to our common, collective humanity.” said Christina Urias, Insurance Director.

Period: 
2005
Priority: 
07