Saturday, October 29, 2011

query - does title insurer have a duty to audit agents and report fraud

Would I be too unkind to say that any title insurer who does not audit its agents is a fool?  There may not be a legal requirement to report fraud but I would certainly hope that the title insurer severs its contract with a fraudulent agent.  I think the title insurer would be doing a service to the industry to report the fraud and have the fraudster taken out of the position of trust they enjoy.

What do you think?

1 comment:

Tim Killcoyne said...

Having worked as closely as I have with our state's Division of Insurance, I would have to say that Title Insurers need to be the police of the industry, while the regulators need to protect the public.
Title Insurers especially because they are publicly traded companies need to police the agents they allow to issue their paper. That is good practice for the industry and an absolute necessity for the safety of the public's investment in the company.