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Chicago Title Insurance Co. claims a competitor is offering real estate agencies, mortgage lenders, attorneys and others compensation in exchange for title insurance business referrals in a "thinly disguised kickback scheme" to secure business.
Chicago Title, based in Jacksonville, Fla., is seeking a cease-and-desist order to stop the practice from the Wisconsin insurance commissioner to prevent what the firm terms illegal practices under Wisconsin insurance law. The culprit Chicago Title is pursuing is Stewart Express, a program launched in December 2003 by Stewart Title Guaranty Co., Houston.
A decision from the commissioner is expected within the next few weeks, said Frederick Nepple, general counsel for the state agency.
"We still have a few steps to go in the investigation," said Nepple, who declined further comment because no enforcement action had yet been taken.
Chicago Title in January riled the complaint with the insurance commissioner against Stewart Title and Jackson Kahl Insurance Agency Inc., a Fond du Lac insurance broker and Stewart agency with exclusive rights to market the program...