Newsletter Archive

Issue #72, Winter 2008

ALTA Adopts 'Principles of Fair Conduct'

The American Land Title Association ["ALTA"] recently adopted Principles of Fair Conduct. The Preamble and the Principles are set forth below:

Preamble

• The ALTA Principles of Fair Conduct represent the association's commitment to promote behavior within the title industry that serves the needs and interests of consumers.
• The Principles describe ALTA's expectation of its Members to adhere to the highest standards of ethical behavior and the laws and regulations governing the business of title insurance.
• The "Appropriate Steps to Implement the ALTA Principles" sets out specific actions that Members can take, and suggests what government can do to assist the title industry in this regard.
• ALTA encourages all if its Members to pledge to support The Principles, and to incorporate them into their daily business practices.
• ALTA pledges to assist its members in implementing The Principles through ongoing training on ethical standards and legal compliance.
• ALTA has forn1ed a special Committee for ongoing review of The Principles annually to el1Sure.tha they continue to address the needs and interests of the consumer public.

ALTA PRINCIPLES OF FAIR CONDUCT

1. To engage only in business practices that are lawful and consistent with a high standard of ethical behavior. .
2. To encourage a culture of compliance within their organizations for federal and state laws that govern the title insurance business and for these Principles.
3. To treat consumers in a fair and ethical manner.
4. To provide consumers with timely and comprehensive information regarding their policies, services, products, and prices so as to enable consumers to shop effectively among providers of title-related services.
5. To encourage and assist consumers to be educated purchasers of title insurance and title-related services.

As suggested above, ALTA is actively encouraging adoption and implementation of the Principles throughout the industry. Many state and local title associations (including the New Jersey Land Title Association) and their constituent underwriter and agent members have agreed to adhere to the Principles. The Fidelity National Financial family of title insurers (which includes Chicago and Ticor Title Insurance Companies) strongly supports both the Principles and ALTA's efforts to promote the same.

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