The California Dept. of Insurance and two large national title insurers have reached a final settlement of allegedly illegal rebate activities.

The deals will result in $22.7 million delivered to consumers affected by the allegations, and will require the companies to cooperate with the department in reform of the title industry.

The department accused Fidelity National Financial Inc. and the First American Title Insurance Company of setting up captive reinsurance companies to funnel illegal rebates to banks, builders and real estate personnel in order to steer business back to the title companies.

Insurance Commissioner John Garamendi said the agreements and penalties “should send a strong message that illegal rebating will not be tolerated in California.”

Both companies have agreed to stop captive reinsurance business arrangements and to cooperate with the department to identify proper rate reductions.