Radian Withdraws Lien Protection Product
|December 13, 2001|
Washington, DC– It is reported that Radian Guaranty Co. has withdrawn its mortgage pool guaranty policy containing its Lien Protection product language from consideration for approval by the Florida Department of Insurance. This action comes after that agency rejected the filing because it constituted title insurance under Florida law, a line of insurance Radian is not licensed to issue in Florida. At the same time, Radian withdrew its request for a formal administrative hearing to dispute the Department of Insurance’s determination.
The American Land Title Association (ALTA) has sued Radian and its subsidiaries in California based on its argument that, as in Florida, the Radian product is title insurance and Radian isn’t licensed to issue such insurance. James R. Maher, Executive Vice President of ALTA, said, "Radian’s actions in Florida appear to acknowledge the inherent weakness of the company’s position in that state and elsewhere. Their contention that this coverage is mortgage guaranty insurance is patently in error and clearly in violation of state law."