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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA - page 4 / 38

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homeowners allegedly were overcharged for title insurance in Pennsylvania. The three related cases

presently before this Court involve three separate title insurance companies. Individual plaintiffs in

each case are different. However, each suit alleges the same basic grievance: unbeknownst to

insurance purchasers, title insurance companies systematically misrepresented the amount of money

due and owing for title insurance by failing to disclose that purchasers who paid an overcharged

amount at settlement were entitled to a discounted rate based on the history of the property being

insured.

A. The Rate Manual in Pennsylvania

In Pennsylvania, title insurance rates are regulated by the Title Insurance Companies Act, 40

P.S. § 910 (1999) (“TICA”). TICA requires that title insurance rates be approved by and filed with

the Insurance Commissioner of the Commonwealth of Pennsylvania. 40 P.S. § 910-37(a). As a title

insurance company selling title insurance in Pennsylvania, Defendant is obligated not to “charge any

fee for any policy or contract of title insurance except in accordance with filings or rates which are

in effect for said title insurance company.” 40 P.S. § 910-37(h). Defendant has received approval

for its rates as a member of Title Insurance Rating Bureau of Pennsylvania (“TIRBOP”), an agency

licensed by the Pennsylvania Insurance Department. (Pl. Am. Compl., ¶26.) TIRBOP publishes title

insurance rates in a Manual (“Manual”). The Manual sets forth a schedule of rates for members of

TIRBOP and is filed with and approved by the Pennsylvania Insurance Department in accordance

with the Insurance Company Law of 1921, 40 P.S. § 910-41. As a member of TIRBOP, Defendant

is required to abide by the rates set forth in the TIRBOP Manual. (Id.) The TIRBOP introduction

states:

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