ILNews

COA affirms cures imposed for title insurance company’s statutory violations

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals found nothing wrong in the trial court’s decision to uphold the Indiana Department of Insurance’s order that found a title insurance company violated several statutes and outlined what the company must do to cure its violations.

In Commonwealth Land Title Insurance Company v. Stephen W. Robertson, Insurance Commissioner of the State of Indiana, et al, 49A04-1302-PL-84, Commonwealth Land Title Insurance Co. appealed the trial court’s affirmation of the IDOI’s administrative order that was issued after the agency conducted a target market examination of Commonwealth to determine if it was in compliance with state insurance code.

After examining a sample of title insurance transactions in Indiana from Jan. 1, 2005, to Jan. 1, 2010, the companies that conducted the investigation found problems with Commonwealth’s program for pricing title insurance premiums, dubbed the “Cents Per Thousand” program. In this program, an agent pays remittance rate dollars to the underwriter based on a special rate chart rather than relying on the more traditional method of calculating premium for title insurance. The program was discontinued after Commonwealth was acquired by another company in December 2008.

The examination also found that the premium charged to the consumer during the CPT program was not specifically tied to risk. As a result of the program, Commonwealth underpaid approximately $60,000 in premium taxes during the examination period.

The IDOI’s administrative order found Commonwealth violated the Rate Statute, Unsafe Business Practices Statute, and Gross Premium Tax Statute. In order to cure the violations, the IDOI ordered Commonwealth to file premium rates and policy forms with the state agency for approval; recalculate its premium tax liability for Jan. 1, 2005, through Dec. 31, 2009; and other actions.

The trial court upheld the administrative order, concluding the IDOI properly interpreted Indiana’s insurance laws, that substantial evidence established that Commonwealth violated the statutes, and that IDOI ordered appropriate curative measures.

Commonwealth appealed to the COA, contending that the trial court erred in accepting the state agency’s interpretations of the Rate, Unsafe Business Practices, Gross Premium Tax and Cure statutes. But the appeals judges agreed with the trial court’s determinations.

There is ample evidence in the record that Commonwealth charged an excessive rate and an unfairly discriminatory rate. The judges also rejected the company’s assumption that the IDOI was required to make findings that Commonwealth’s business practices threatened its solvency in order to determine that it violated the Unsafe Business Practices Statute.

The cures imposed by the IDOI for the statutory violations are authorized by the Cure Statute, the COA held. The agency was within its authority to order Commonwealth to recalculate its premium tax liability for the examination period, and it has the authority under the Cure Statute to order Commonwealth to perform a retrospective actuarial analysis of its rates.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Oh, the name calling was not name calling, it was merely social commentary making this point, which is on the minds of many, as an aside to the article's focus: https://answers.yahoo.com/question/index?qid=20100111082327AAmlmMa Or, if you prefer a local angle, I give you exhibit A in that analysis of viva la difference: http://fox59.com/2015/03/16/moed-appears-on-house-floor-says-hes-not-resigning/

  2. Too many attorneys take their position as a license to intimidate and threaten non attorneys in person and by mail. Did find it ironic that a reader moved to comment twice on this article could not complete a paragraph without resorting to insulting name calling (rethuglican) as a substitute for reasoned discussion. Some people will never get the point this action should have made.

  3. People have heard of Magna Carta, and not the Provisions of Oxford & Westminster. Not that anybody really cares. Today, it might be considered ethnic or racial bias to talk about the "Anglo Saxon common law." I don't even see the word English in the blurb above. Anyhow speaking of Edward I-- he was famously intolerant of diversity himself viz the Edict of Expulsion 1290. So all he did too like making parliament a permanent institution-- that all must be discredited. 100 years from now such commemorations will be in the dustbin of history.

  4. Oops, I meant discipline, not disciple. Interesting that those words share such a close relationship. We attorneys are to be disciples of the law, being disciplined to serve the law and its source, the constitutions. Do that, and the goals of Magna Carta are advanced. Do that not and Magna Carta is usurped. Do that not and you should be disciplined. Do that and you should be counted a good disciple. My experiences, once again, do not reveal a process that is adhering to the due process ideals of Magna Carta. Just the opposite, in fact. Braveheart's dying rebel (for a great cause) yell comes to mind.

  5. It is not a sign of the times that many Ind licensed attorneys (I am not) would fear writing what I wrote below, even if they had experiences to back it up. Let's take a minute to thank God for the brave Baron's who risked death by torture to tell the government that it was in the wrong. Today is a career ruination that whistleblowers risk. That is often brought on by denial of licenses or disciple for those who dare speak truth to power. Magna Carta says truth rules power, power too often claims that truth matters not, only Power. Fight such power for the good of our constitutional republics. If we lose them we have only bureaucratic tyranny to pass onto our children. Government attorneys, of all lawyers, should best realize this and work to see our patrimony preserved. I am now a government attorney (once again) in Kansas, and respecting the rule of law is my passion, first and foremost.

ADVERTISEMENT