Force-placed coverage causes probe of New York insurance companies

A closer look into forced placed insurance practices The state insurance regulator in New York is currently performing an investigation as to whether or not the rates for force-placed insurance that are being charged by companies should be deemed excessive, and is requesting data from insurers such as Assurant Inc. The New York Department of Financial Services released a statement that said that it is trying to obtain basis for “consistently high profits” that are occurring at the investors’ and homeowners’ expense. It is also requiring that insurers such as…

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Auto insurance data spat could lead...
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New York regulators pressure Citigroup to comply with subpoena

New York insurance regulators are pressuring Citigroup to comply with a subpoena regarding investigations into force-placed insurance. Force-placed insurance has long been a source of controversy. These policies require homeowners to purchase coverage that is much more expensive than conventional policies. This is often done for the sake of lenders who hold sway with insurance companies and the tactic is used to secure returns on these investments. The New York Department of Financial Services has been investigating a number of insurance companies and financial institutions that may have been conducting…

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