Colorado Division of Insurance fines First American Insurance [Colorado Springs Business Journal, The (CO)]

The Colorado Division of Insurance fined First American Title$303,000 for violation of state insurance laws, after a market conduct exam.

"Market conduct exams ensure that Colorado insurers abide by state insurance laws and regulations, and that consumers are protected," said Commissioner of Insurance Jim Riesberg.

The investigation, which covered First American's policies in 2009, found 20 issues that violated insurance regulations.

The company apparently failed to have agents retain documentation and records in its title underwriting files, failed to have agents remit title premiums and failed to provide evidence of written instructions from all necessary parties, according to the DOI's report.

Other violations included having agents that were not duly licensed, resulting in the transaction of unauthorized insurance and failed to maintain adequate licensing records.

The company also is accused of not retaining title files and failing to produce anti-fraud statements.

Some of the violations are repeated from a 2002 market conduct exam of First American.

In addition to the $303,000 fine, the DOI has levied a $7,500 surcharge, as required by state law.

In response, First American has filed a lawsuit against the state of Colorado, and has not paid the fines.