Restrictions on Cash and Investments

12 Months Ended

Dec. 31, 2011

Restrictions on Cash and Investments [Abstract]

Restrictions on cash and investments

NOTE 2

Restrictions on cash and investments. Statutory reserve funds of $397.1 million and $396.3 million and cash and cash equivalents of $23.6 million and $9.9 million at December 31, 2011 and 2010, respectively, were maintained to comply with legal requirements for statutory premium reserves and state deposits. These funds are not available for any other purpose. In the event that the insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease.

A substantial majority of consolidated investments and cash at each year end was held by the Company’s title insurance subsidiaries. Generally, the types of investments a title insurer can make are subject to legal restrictions. Furthermore, the transfer of funds by a title insurer to its parent or subsidiary operations, as well as other related party transactions, is restricted by law and generally requires the approval of state insurance authorities.