United States v. Title Insurance Rating Bureau of Arizona, Inc.

The United States, Arizona and two private plaintiffs sued the Title Insurance Rating Bureau of Arizona, Inc. (“TIRBA”) for fixing the prices of escrow services. Plaintiffs were granted summary judgment, despite two defenses offered by TIRBA: the McCarran-Ferguson Act exemption for the “business of insurance” and the state action immunity. The judgment of the district court is affirmed.

FACTS

TIRBA is a title insurance rating bureau licensed by the State of Arizona. It has thirteen insurer members and additional subscribers, all engaged in the business of title insurance.

Prior to 1977, Arizona law required title insurers to file only their title insurance rates with the state director of insurance. Ariz.Rev.Stat.Ann. § 20-376 (amended 1977). In 1977, the statute was amended to require title insurers to file their rates charged for escrow services. Ariz.Rev.Stat. Ann. § 20-376 (West Supp. 1982-1983). A title insurer was allowed to file its own rates, or, at its option, to have a title insurance rating bureau of which it was a member or subscriber file rates on its behalf. Ariz.Rev.Stat.Ann. §§ 20-376(A-C). The statute authorizes but does not require cooperative action by title…