The Virginian-Pilot
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The state took control of Southern Title Insurance Corp. after the company failed to meet state requirements for minimum capital reserves, the State Corporation Commission announced Tuesday.
The Richmond-based title insurance company, which operates in 21 states and has an office in Virginia Beach, voluntarily stopped issuing new title policies Sept. 15. The company blamed its difficulties on misuse of funds by an agent in Texas, according to an SCC news release.
Real estate title insurance is issued when a property is sold and protects the policy holder from problems relating to the property's title.
A Richmond judge named the SCC receiver for the company. A moratorium has been placed on the payment of claims until state regulators complete an investigation into the company's finances.
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
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