PA Attorney General Issues Remarks on Title Insurance Industry, Says ABAs Should be Illegal
Following a recent hearing on title insurance by the Pennsylvania Insurance Department, Tom Corbett, the statersquo;s attorney general, issued some remarks regarding the practice of title insurance, its rate policies and the roles that affiliated business arrangements play in the title insurance industry. Corbett noted in his remarks that the promise of reduced fees through the bundling of service options often fails to be realized. He also stated that, while afffiliated business arrangements can be beneficial when properly structured, they often lead to conflicts of interest and create an environment of collusion. Thus, in his opinion, Corbett believes that they should be illegal in today’s real estate market.