First American Title has been fined $303,000 for Colorado insurance law violations, the result of a 2011 market conduct exam performed by the Colorado Division of Insurance on the company for calendar year 2009.
“Market conduct exams ensure that Colorado insurers abide by state insurance laws and regulations, and that consumers are protected,” insurance coommissioner Jim Riesberg said today.
The market conduct examination found 20 separate violations, including: failure to require agents to keep adequate documentation and records in title underwriting files, failure to require agents to remit title premiums within the required contractual period, and failure to provide evidence of written instructions from all necessary parties when First American’s agent or direct operation provided closing and settlement services; failure to ensure agents were duly licensed prior to transacting business; failure to provide anti-fraud statements and failure to charge rates in accordance with the rates on file with the Division of Insurance.
The division said the last two violations are a repeat of violations found in the 2002 market conduct examination of First American.
A $7,500 surcharge has been added to the $303,000 civil penalty, in accordance with state law. The penalties have not been paid, pending the outcome of a lawsuit filed by First American Title against the state.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com.
