Fidelity National Financial Inc. and First American Title Insurance Company have reached agreements with the California Dept. of Insurance regarding allegations that both firms participated in illegal rebating activities, according to a statement released last week by the Dept. of Insurance. The two firms have agreed to pay $30.3 million in penalties, including $22.7 million in reimbursements to consumers and $10.25 million in fines. In addition, the firms will pay $350,000 to cover the costs of the Department's investigation.
Fidelity and First American were accused of setting up captive reinsurance companies to send illegal rebates to banks, builders and real estate agents in exchange for business. Under the agreement, both firms will discontinue any captive reinsurance business arrangements and work with the Department to improve consumer awareness of title insurance rates.
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Two Title Companies Fined For Alleged Illegal Rebate Activities
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