1IN THE SUPREME COURTOF OHIOSTATE OF OHIO EX RELATOR, OHIO )ASSOCIATION OF INDEPENDENT ) CASE NO.TITLE AGENTS )1940 E. 6

Street )Cleveland, Ohio 44114 ))Relator, ))vs. )

PETITION FOR WRIT OF

)

MANDAMUS

MARY JO HUDSON, DIRECTOR of )OHIO DEPARTMENT OF INSURANCE )50 West Town Street )Third Floor - Suite 300 )Columbus, Ohio 43215 ))Also serve: ))NANCY HARDIN ROGERS, )OHIO ATTORNEY GENERAL )30 E. Broad Street )17

Floor )Columbus, Ohio 43215 ))Respondent. )

PARTIES

Relator, State of Ohio ex relator, Ohio Association of Independent TitleAgents (“OAITA”) is an Ohio non-profit corporation consisting of members who are independent Ohio title insurance agents withoutaffiliation to banks, mortgage brokers, and/or realtors.2.

Respondent, the Honorable Mary Jo Hudson, Director of the OhioDepartment of Insurance (“ODI”) is the duly appointed Director of the

2Ohio Department of Insurance and is authorized in said capacity by Title39 of the Ohio Revised Code and the Ohio Constitution.3.

Nancy Hardin Rogers is the interim Ohio Attorney General and is beingprovided a copy of the within Complaint pursuant to Ohio law.

JURISDICTION AND VENUE

Jurisdiction and venue are proper in this Court pursuant to Ohio Rule of Civil Procedure 3. Further, under Ohio Rev. Code § 2731.02 and pursuantto Article IV, Section 2(B)(1) of the Ohio Constitution, this Court has theauthority to issue a determination of the propriety of a writ of mandamusand to advance on the trial list the hearing of a writ of mandamus.

BACKGROUND FACTSa. The Factual History

The following request for a writ of mandamus seeks to compel theDirector of ODI from construing certain rules promulgated by the ODI ina manner that conflicts with Ohio statutory law, as codified under Title 39of the Ohio Revised Code.6.

At the heart of the current matter is the business of title insurance in Ohio.Title insurance facilitates homeownership by mitigating the risks related tothe transfer of real estate ownership for both the buyers and the lendersthat finance their purchase. Title insurance is also a critical component of a homeowner’s ability to participate in the mortgage refinance process.

37.

Title insurance services are designed to afford the homeowners, lendersand others with interests in real estate the maximum degree of protectionfrom adverse title claims or risks.

The business of title insurance is principally conducted by three distinctgroups: (1) licensed title insurance agents; (2) title insurancecompanies/underwriters; and, (3) the title agencies appointed by the titleinsurance companies/underwriters.9.

The title insurance industry is highly concentrated, with only five insurer-underwriter groups controlling about 93 percent of the market nationwide.In Ohio, the same five insurer-underwriter groups control over 96 percentof the market statewide.10.

Title insurance companies/underwriters, title insurance agencies and titleinsurance agents market their products to real estate professionals – banks,mortgage brokers and realtors -- who, because of their position in the realestate transaction, are able to direct or control the homeowner who isactually paying for the product and steer them to a particular titleinsurance agent, title insurance agency or title insurancecompany/underwriter.

11.

Unlike commercial real estate transactions where the buyers and sellersare typically more sophisticated and are more often represented by legalcounsel, residential real estate transactions involve buyers and sellers whotypically lack sophistication and counsel and therefore exercise little or nomarket power in the selection of a title insurance agent, title insurance