Insurance Commissioner Garamendi Stays Busy
John Garamendi, the California Insurance Commissioner, is at it again.
Last time we wrote about him, Commissioner Garamendi was concerned about the cost of disability insurance. Now, it’s title insurance. According to a report prepared by Texas insurance economist Birny Birnbaum at the Commissioner's request, very little variation was found in price among the top six companies who provide title insurance in California. The report also concluded that 75% of the state’s title insurance business is controlled by three insurers.
Garamendi stated, “The report confirms that California homeowners and home buyers are being systematically overcharged because title insurers refused to compete with one another on the basis of low prices.”
Garamendi intends to hold hearings to examine title insurance premiums during 2006, his last year in office. He plans to run for Lieutenant Governor in the Democractic primary in 2006 also.
Garamendi has already reached settlements with the three largest insurers in July in another matter after he alleged they paid kickbacks to lenders, brokers and builders that drove up customers’ costs. The three companies, Fidelity National Financial Corp., First American and LandAmerica Financial Group, Inc., agreed to pay about $38M in refunds and fines.
You can read the whole report here
Gillian Parrillo
The Sacramento Executive
