Title Firm Pays US $ 1 Million Tremendous After Insurance coverage Division Alleges Violations of Anti-Inducement Legal guidelines | Weiner Brodsky Kider PC
A title company recently agreed to a determination and waiver with a fine of $ 1 million, including a reimbursement of $ 185,000 for investigation and legal costs, after an investigation by the California Department of Insurance alleged that one of its agents was responsible for the Title marketing by providing illegal benefits to real estate agents. In January 2021, the same title company agreed to pay $ 50,000 to settle similar allegations.
The investigation found that the company’s marketing officer provided illegal incentives through the use of tour buses to induce agents to view and promote offers, social media training, sales coaching, and personalized video marketing. The investigation also found that the marketing rep was running a 600-strong real estate group where he was the only marketing rep in the group. Despite the internal guidelines of the title company for compliance with anti-inducement laws, the company encouraged the marketing representative to participate in the real estate group.
The title company has neither admitted nor denied any wrongdoing.