The Stewart Title Guaranty Company, a wholly owned subsidiary of Stewart Information Services, has settled a $1.95 million proceeding brought by the State of Washington's Office of Insurance Commissioner with a payment of $250,000.
In August 2007, the Office of Insurance Commissioner (OIC) had issued a cease and desist order seeking to impose a fine against Stewart through an administrative hearing. By the proposed agreement, the proceeding has been dismissed without any admission of liability from Stewart.
Stewart believes that the violations alleged were never prohibited by the OIC in any of its previous opinions or policy statements, nor were they prohibited by state or federal law.
While Stewart believes it has conducted its business appropriately and has both legal and factual defenses to the OIC allegations, it has decided to enter into the settlement to avoid further distractions to its business and the time and expense of litigation.