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DCLTA MEMBER INPUT NEEDED FOR DISB MARKET CONDUCT EXAMINATION OF TITLE INSURANCE RATES

December 22, 2014 11:55 AM | Anonymous

DCLTA MEMBER INPUT NEEDED FOR DISB MARKET CONDUCT EXAMINATION OF TITLE INSURANCE RATES

              As many of you are aware the District of Columbia’s Department of Insurance, Security and Banking (DISB) is conducting a market conduct examination of the DC’s title insurance rates. The stated goal of this examination is to “evaluat[e] DC title insurance rates and examining issues related to the operating environment in DC for title insurers and title agents…to identify all title insurance and settlement service activities to ensure that expenses associated with each set of activities are segregated or assigned to just those activities. … to examine all title insurance and settlement expenses to perform any evaluation of the reasonableness of the agent commission.”

            Specifically, it is currently not clear to the DISB “why DC title insurers are paying 80 to 85% of the risk rate title   premium in commissions to title agents.  District of Columbia Title Rate Examination: Revised Follow Up Questions, November 6, 2014.  DISB is seeking to identify the specific roles and activities of settlement   agents in a settlement of DC property so that they can assess the cost to the consumer of products and services to consumers.

              To assist in this process and to make sure that all of our membership has a voice in the process, I am inviting any interested settlement company member, or any member in any aspect of our industry, to volunteer to communicate with DISB’s representatives to educate them on the realities of their respective roles in our industry.  It is my goal that the governmental unit that regulates our industry is acutely aware of the work, professional judgment, training and experience that goes into bringing a high quality experience and insurance product to the citizens of the District of Columbia.

              Participation in this process will require only a modest time commitment from settlement agents and should be concluded in the next several weeks.  If you are able to participate in this important process affecting our industry please contact me at your next convenience at Russo@CouncilBaradel.com.

Thank you and have a great holiday season.

Mike Russo

President, DC Land Title Association.

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