ALTA Commends California Insurance Commissioner John Garamendi For Upholding Cease and Desist Order Against Radian Guaranty.Business Editors/Real Estate Writers WASHINGTON, D.C.--(BUSINESS WIRE)--July 22, 2003 National Trade Association Says Decision Reinforces Consumer Protection From Unregulated, Unlicensed Activity The American Land Title Association The American Land Title Association or ALTA, is a national trade association representing the interests of the abstract of title and title insurance industries. In addition to active members engaged in the title industry, associate members cover a wide range of businesses (ALTA), the national trade association for the title insurance industry, today applauded the decision by California Insurance Commissioner California Insurance Commissioner is an elected executive office position in California who is in charge of the California Department of Insurance. The current Insurance Commissioner is Steve Poizner. John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. to sustain the cease and desist order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. issued by the Department of Insurance in June 2002 against Radian ra·di·an n. Abbr. rad A unit of angular measure equal to the angle subtended at the center of a circle by an arc equal in length to the radius of the circle. Guaranty Inc., Amerin Guaranty Corp. and Radianexpress.com Inc. The order required the companies to stop selling unlicensed title insurance in the state, which was appealed by Radian on the grounds that its product, Radian Lien Protection, was a form of mortgage guaranty insurance and not title insurance. Administrative Law Judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. , Leonard Scott
Leonard Scott (born February 9, 1981) is also an American sprinter mainly competing in the 100 meters event. In 2005 he joined the exclusive list of sprinters to run in less than 10 seconds. , affirmed the legality of the Department's order on Jan. 6, 2003 ruling that Radian's product is title insurance, which Radian is not licensed to sell in California or any other state. Garamendi, in his final decision dated July 14, 2003, sustained the order. "We applaud the Commissioner's decision affirming the appropriateness and legality of the cease and desist order against Radian, which protects consumers against unregulated, unlicensed title insurance products," said James Maher, executive vice president of ALTA. "Radian should become a licensed title insurer to issue this product and submit to the regulatory oversight that is in place to safeguard consumers." According to Maher, Radian aggressively marketed its Lien Protection Product as an alternative to title insurance, claiming essentially the same benefits as title insurance but at a substantially reduced price -- claims he says are completely false and misleading. "Not only are costs of title insurance by licensed title insurers comparable to or less expensive than Radian's product, the protection and benefits of traditional title insurance are substantially greater." The California cease and desist order also prohibits Radian from offering its RLP RLP Rheinland-Pfalz (state in Germany) RLP Resource Location Protocol (Cisco) RLP Radio Link Protocol RLP Remote Line Printer RLP Revolving Loan Program RLP Rotatable Log Periodic product in any other state or it will risk losing its license to sell mortgage guaranty insurance in California. About ALTA The American Land Title Association represents title insurance companies and their agents nationwide on a variety of industry and legislative issues. Members of the Association search and insure land titles to protect real estate investors including homebuyers and mortgage lenders. |
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