From The Denver Post:
Investigations of alleged kickbacks and overcharging in the title industry are proceeding on several fronts.
In California, state Insurance Commissioner John Garamendi said Tuesday that he was investigating kickbacks paid by title insurers to developers, lenders and real estate agents who referred homebuyers to the insurance companies.
The action came a day after the state of Colorado announced a consent agreement with First American Title Insurance Co., based in Santa Ana, Calif., to refund consumers nationwide $24 million as a result of its probe.
If a piece of property has been sold a few times, what exactly is being insured by title insurance? That the title insurers did their job right the previous times? What are the actual risks? I know I might have an auto accident, so I have auto insurance. I know that my house could be hit by lightning (my previous house was), so I have homeowners insurance. Has anyone ever had their title questioned?