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Title Insurance: Kickback Scam?

May 8, 2006 by Jonathan Stein

I don’t usually talk about title insurance, but when the chance comes up, why not? After all, a lot of my readers either own a home or will be buying a home at some point in time. So, title insurance will become important.

Kenneth Harney wrote a great piece for the Detroit Free Press about title insurance. Basically, Congressional hearings revealed a product where kickbacks may be the norm. Title insurance companies have recently settled charges of kickbacks in Colorado and California. Of course, the industry says this is a bunch of hooey.

Mr. Harney notes that Iowa has dropped private title insurance in favor of a state backed plan. Guess what? Prices have fallen by 50%. I think Mr. Harney and Congress are on to something. Maybe our state legislators need to spend some time looking at this as well.

Categories: Consumer Issues, Current Affairs, Insurance Operations

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