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

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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.
 

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  1. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  2. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  3. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  4. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  5. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

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