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ALTA® Sues Property and Casualty Companies in California for Illegally Issuing Title Insurance

May 27, 2008

ALTA filed a lawsuit in California against 13 property and casualty companies and six producers to stop the illegal practice of selling mortgage impairment/lien priority insurance, which is title insurance.

According to ALTA CEO Kurt Pfotenhauer:

"ALTA initiated the lawsuit because these companies are not licensed to sell title insurance and, therefore, are not subject to appropriate regulatory oversight nor have they been required to establish the appropriate capital and reserves.

"Mortgage impairment/lien priority insurance offered by property and casualty companies not only violates state laws, it puts lenders and consumers at risk and, because no title search or corrective function is performed, threatens the integrity of public land records—the bedrock upon which real estate ownership in this country is built."


The Complaint was filed in California in the Superior Court of San Francisco County Case # C-08-474045.



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