PLTA

Following up on the May 28th public informational hearing concerning the title insurance industry, the Pennsylvania Insurance Department ("Department") has decided to conduct a Title Insurance Study ("Study").  The Study will be directed to a representative sample of Pennsylvania title agents.

The Study will be under the direction and control of the Department with funding provided through the Title Insurance Rating Bureau of Pennsylvania. The Study is to be conducted jointly by Regulatory Research Corporation [Dr. Nelson R. Lipschutz] and Birny Birnbaum Consulting Inc. [ Birny Birnbaum] [the “Consultants”]. 

The Study will begin with a request for agent information from underwriter companies.  The Consultants will use this information to develop a sample cross section of agents (e.g., small, large and geographically distributed). While underwriter companies will provide the Consultants with agent information, the Consultants will determine the sample parameters and will make the selection of agents.

Once the sample is determined, the Consultants will communicate directly with agents to collect information relating to their revenue, operations, expenses, and profitability. Agents will be asked to respond to questions relating to 1. The impact, if any, of technological changes on operating practices and costs, and 2. The impact, if any, on operating practices and costs of their marketing activities, including what are referred to as “affiliated business arrangements” (AfBAs).  There will be safeguards for maintaining the confidentiality of information including that agent-provided information will not be shared with underwriter companies.

Timing:

• The Department will first request agent information from underwriter companies. From this information, certain agents will be selected by the Consultants.
• Information will then be requested from the selected agents, anticipated to occur about October 2009.

The Department has not indicated the potential courses of action it may take, if any, after the Study is concluded.

PLTA will keep you informed of any additional information about the Study as it becomes known.