BEFORE THE INSURANCE COMMISSIONER OF THE STATE OF UTAH STIPULATION AND ORDER UTAH INSURANCE DEPARTMENT, Complainant,

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1 GARY D. JOSEPHSON #5299 Assistant Attorney General SEAN D. REYES#7969 Attorney General Attorneys for Utah Insurance Department 160 East 300 South,. Fifth Floor P0 Box Salt Lake City, UT Telephone: Facsimile: BEFORE THE INSURANCE COMMISSIONER OF THE STATE OF UTAH UTAH INSURANCE DEPARTMENT, STIPULATION AND ORDER V. Complainant, DocketNo PC FDELJTY NATIONAL TITLE Enf. Case No [NSURANCECOMPANY,IDNo 1338, arid CHICAGO TITLE INSURANCE COMPANY., ID No. 224, 601 Riverside Ave., Bldg. Five, Fifth Floor, Jacksonville, FL Mark E. Kleinfield Respondents. Administrative Law Judg STIPULATION The Utah Insurance Department ( Department ), by and through its legal counsel, Gary D. Josephson, Assistant Attorney General, and Respondents Fidelity National Title Insurance Company, ( FNTIC ) and Chicago Title Insurance Company, ( CTTC ), by and through their authorized representative, Katie G. Schmidt, hereby stipulateand agree as follows:

2 2 Chicago Title Insurance Company, IDNo. 224, both hold active certificates of authority from the this matter. I. Respondents Fidelity National Title Insurance Company, ID Nb , and jurisdiction over the parties and subject matter of this administrative action. purpose of effecting a full and complete global settlement of this and any and all similar cases Code 63G-4-202; and irrevocably waive the right to any hearing, review or appeal concerning Building Five, Fifth Floor, Jacksonville, FL assistance of legal counsel ; acknowledge that this Stipulation and Order is an informal proceeding pursuant to Utah admit to any liability arising out of the facts. involving Respondents and now pending before the Department. renegotiation, modification, hearing or agency review or appeal. Utah Insurance Dep.rtment and have the following business address of 6Q1 Riverside Avenue, Commissioner, through the administrative lawjudge; and the Title and Escrow Commission; and the Findings of Fact and Conclusions of Law, shall not be subject to any reconsideration, 6. The parties agree to the Findings of Fact below; however, Respondents do not 3 Respondents cknowiedge notice of agency action pursuant to Utah Code 63G- 7. The issuance of the fully signed and adopted Order proposed below is for the 4. In regards to this, administrative proceeding, Respondents have the advice and 2. The Utah Insurance Commissioner and the. Title and Escrow Commission have 5. This signed Stipulation; the signed and adopted Order by both the Utah Insurance

3 coercion of any kind. Insurance Company 9. Respondents enter into this Stipulation voluntarily, knowingly, and free from The only promises, agreements and understandings that the parties have regarding this matter are contained in this Stipulation. and signing of the Order by both the administrative law judge and the Utah Title and Escrow that they are authorized to sign and bind the parties. Commission. Dated this lof, Dated this I day of,20l4 Il. Respondents understand that this Stipulation isonly fullyeffective upon approval 10. The persons signing this Stipulation on behalf of the named. parties hereby affirm LLSR Utah lnsurancedepartment Gary ep on, As istant Attorney General Fidelity National lnsurane Company and Chicago ritle Katie 0 Schniidt, Esq, Authorized Representative, 3

4 Based upon the foregoing Stipulation and information in the Department file, the Administrative law Judge makes the following Findings of Fact: FINDINGS OF FACT 1. As a result of complaints received by the Department, an investigationwas conducted concerning the Respondents. The Department investigation found that Respondents were issuing title insurance policies: directly to Utah consumers, without having bona fide offices located in the State of Utah. 2. The investigation also determined the Respondents were conducting escrow closings without having required esvrow rates previously filed with the Department. 3. Through the ihvêstigation, it was determined, that at least fortyone title insurance policies were issued to Utah consumei s and at least the same number of escrow closings were conducted without escrow ratesbeihg filed with the Department. 4. Respondents were cooperative and responsive during the:investigation 5. The Department and Respondents have agreed to the imposition of administrative penalties as follows: (a) $123, for insuring title policies directly to, consumers without bonafide Utah offices; and (b) S 102, for conducting escrow closiügs without filed escrow rates Penalties total $225, Each Respondent agrees to pay onehalf of the total penalty 6. Also, the Department and Respondents have agreed that this Stipulation is to be a global settlement that includes any and all similar cases involving Respondents and now pending before the Department. 7. Finally, the Respondents have agreed to prepare a comprehensive corrective action plan listing the actions to be taken to ensure future compliance with Utah insurance 4

5 days of the Commission s signed. Order. statutes and rules. The action plan shall be submitted to the Department for approval within 90 action plan filing within 90 days is also appropriate. reasonable and appropriate in this matter. Also, requiring Respondents to provide:a proposed any and all similar cases involving Respondents and now pending before the Department is insurance and conducted esciow dosings without having rates on file with the Department conducting any escrow closings. In violation of Section 3 1Al9-209, Respondents issued title policies to Utah consumers without offices in Utah. Respondent paying one-half of the forfeiture, fora full and complete global settlement of this and producers to file escrow rates with the Department prior to issuing any title insurance or the following Conclusions of Law: fide office in Utah. in violation of Section 3.iA-l42ll, Respondents issued titleinsurance only insure pioperty in the State through a iesident title insurance producer or through a bona 3. An administrative forfeiture in the total amount of $225,500.00, with each 2 Utah Code Section 31 A equires title insurers, agencies, and individual Based upon the foregoing Stipulation and Findings of Fact, the Presiding Officerenters 1. Utah Code Section 31A-14-2ll states that an authorize.d foreign title insurer may CONCLUSJONS OF LAW

6 to _, Based on the.finding of Fact and Conclusions of Law, the following;isrecornmended:. RECOMMENDED ORDER IT IS RECOMMENDED THAT THE TITLE AND ESCROW COMMISSION IMPOSE THE FOLLOWING PENALTY: I, Respondents, Fidelity National Title Insurance Company and ChicagQ Title Insurance Company, shall be assessed an administrative forfeiture in the amount of $225,500 00, with each Respondent paying one-half of the forfeiture, to be paid to the Department within thirty (30) days of thedate of the Commission s, Order. 2. Respondents shall prepare an action plan listing actions to be taken in the futwç to ensure compliance with Utah insurance statutes and rules This plan shall be submitted to the Department for appraisal within 90 days of the date of the hilly signed Order DATED,this day Of,2014. TODD E. KISER insurance Commissioner Utah. Insurance Department ADOPTION OF RECOMMENDED ORDER AND IMPOSiTTONOF PENALTY By a vote of taken in open meeting on this date, the Title and Escrow Commission hereby adopts the recommended.. order of the presiding officer and imposes the 6

7 penalty recommended above. DATED this & day of, _9 JEFF D. WTENER, Chairman Titleand Escrow Commission NOTIFICATION TO RESPONDENT You are hereby notified that a failure to obey an Order of the Commissioner may subject you to further penalties, including forfeitures of up to $5,000 per violation andthe suspension or revocation of your license and thefiling of an action in district court, which mayirnpos.e forfeitures of up to $10,000 per day for continued violation. You are further notified that other jurisdictions in which you may be licensed may require that you report this action tothem. 7

8 COMMISSIONER CONCURRENCE WITH COMMISSION IMPOSED PENALTIES The Commissioner of the Utah Insurance Department hereby concurs with the above and forgoing Utah Title and Escrow Commission imposed penalties in the present adjudicative proceedings. Dated this day of, 2O1. TODD E. KISER, Commissioner. Utah Insurance Department, BY: Mark E. Kicinfield Administrative Law Judge

9 Katie G. Schmidt, Esq. The undersigned hereby certify that on this date, a true and correct copy of the foregoing STIULATION AND ORDER was mailed, postage prepaid, to the following: 601 Riverside Avenue DATED this 8 day September, 2014 LINDA HARDY UTAH INSURANCE DEPARTMENT STATE OFFICE BUILDING, ROOM 3110 SALT LAKE CITY, UT Fidelity National Title Insurance Building Five, Fifth Floor Jacksonville, FL CERTIFICATE OF MAILING

10 (I) State of Utah GARY R. HERBERT Governor SPENCER J. COX Tiputpnnnr (7nurnnr Insurance Department UTAH Invoice - Original PAUL I PEREZ FIDELITY NATIONAL TITLE INSURANCE COMPANY 601 RIVERSIDE AVENUE BLDG 5 5TH FLOOR JACKSONVILLE FL Printed Date: September 8, 2014 Invoice Date: September 8, 2014 Balance Due: $112, Due Date: October 13, 2014 Invoice ID: PayorlD: 1338 Date Item Description Monetary Penalty Agency Amount $112, E-Case 3376 Docket # PC No Adjustments No Payments Balance Amount Due $112, Make check payable to: Utah Insurance Department Send payment to: Utah Insurance Department 3110 State Office Building Salt Lake City, UT UTAH Invoice - Original Invoice Date: September 8, 2014 Balance Due: $112, Due Date: October 13, 2014 Invoice ID: PayorlD: 1338 E-Case 3376 Docket # PC Detach and Return this Voucher with Payment Payments Will Not Be Processed without Voucher State Office Building Suite 3110, Salt Lake City, UT (801) Facsimile (801)

11 State of Utah GARY R. HERBERT Governor SPENCER J. COX Ijp;,tpnnnt Gnvernnr Insurance Department UTAH Invoice - Original PAUL I PEREZ Printed Date: September 8, 2014 CHICAGO TITLE INSURANCE COMPANY Invoice Date: September 8, RIVERSIDE AVENUE Balance Due: $112, BLDG 5 5TH FLOOR Due Date: October 13, 2014 JACKSONVILLE FL Invoice ID: Payor ID: 244 Date Item Description Amount Monetary Penalty Agency $112, E-Case 3376 Docket # PC No Adjustments No Payments Balance Amount Due $112, UTAH Invoice - Original Make check payable to: Utah Insurance Department Invoice Date: September 8, 2014 Send payment to: Balance Due: $112, Utah Insurance Department Due Date: October 13, State Office Building Invoice ID: Salt Lake City, UT Payor ID: 244 E-Case 3376 Docket # PC Detach and Return this Voucher with Payment Payments Will Not Re Processed without Voucher State Office Building Suite 3110, Salt Lake City, UT (801) Facsimile (801)

12 State of Utah GARY R. HERBERT Governor SPENCER J. COX 1isnnpnnnf Governor Insurance Department UTAH Invoice - Original PAUL I PEREZ Printed Date: September 8, 2014 CHICAGO TITLE INSURANCE CMPAIY Invoice Date: September 8, RWERSIDE AVENUE Balance Due: $112, BLDG 5 5TH FLOOR Due Date: October 13, 2014 JACKSONVILLE FL Invoice ID: Payor ID: 244 Date Item Description Amount Monetary Penalty Agency $112, E-Case 3376 Docket # PC No Adjustments No Payments Balance Amount Due $112, UTAH Invoice - Original Make check payable to: Utah Insurance Department Invoice Date: September 8, 2014 Send payment to: Balance Due: $112, Utah Insurance Department Due Date: October 13, State Office Building Invoice ID: Salt Lake City, UT Payor ID: 244 E-Case 3376 Docket # PC Detach and Return this Voucher with Payment Payments Will Not Be Processed without Voucher State Office Building Suite 3110, Salt Lake City, UT (801) Facsimile (801)