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.