You want to know why the Insurance Department rejected the Radian Guaranty Inc. insurance policy.

Radian Guaranty Inc. is a Philadelphia, Pennsylvania mortgage guaranty company. In May, Radian filed a "lien protection" policy form for the department's approval. In June, the department refused to approve Radian's lien protection policy form for use in Connecticut for the following reasons:

1. The lien protection policy is a title insurance policy as defined under CGS § 38a-402(15) in that it insures or indemnifies against loss or damage arising from defects in or liens or encumbrances on the insured title and constitutes doing the business of title insurance under CGS § 38a-402(14). Since a mortgage guaranty company may not do any line of business other than mortgage guaranty (CGS § 38a-45), Radian Guaranty Inc. may not offer title insurance as provided in the Radian Lien Protection policy.

2. Connecticut title insurers charge $ 255 for insurance on a piece of real estate valued at $ 140,000 if refinanced within five years of issuing the title policy for the mortgage, and $ 306 if refinanced within five to 10 years of issuing the title policy. Radian charges

$ 465 for a $ 140,000 refinance. This amount does not support Radian's claim of dramatic savings for consumers. It appears the premium cost for Connecticut consumers would increase under Radian's program, not decrease.

JH: ro