forced homeowners insurance Archives

Force placed insurance settlement reached by Assurant and J.P. Morgan Chase

September 13, 2013September 10, 2013 Julie Campbell

The agreement that has been reached will require a payment of a total of $300 million to resolve the allegations. Assurant Inc. and J.P. Morgan Chase have now agreed to a settlement in a class action suit against them that will cause them to pay $300 million in order to resolve the allegations against them regarding force placed insurance selling. The claims against the companies had to do with a special type of homeowners coverage applied on behalf of the policyholders. The settlement that has been proposed is among the…

Force placed insurance settlement achieved in New York

April 5, 2013April 4, 2013 H. Cutner

The state has reached a decision to help to prevent future questionable practices in the industry. New York has faced a number of financial industry questionable practices in recent years and, among them, has been the issues with force placed insurance, where homeowners have found that they were paying far more than they would if they had found the coverage on their own. The coverage is purchased by mortgage lenders on behalf of homeowners that have let their policies lapse. The primary struggle that was faced in the force placed…

Force placed insurance crackdown launched in the United States

March 27, 2013March 26, 2013 G. Turner

American housing regulators are putting a stop to wrongful practices in this sector of the market. Housing regulators in the United States have commenced a crackdown on the practices surrounding force placed insurance, which is an entirely legal and often necessary form of coverage that has been abused in recent years in the American marketplace. The problem is that this misuse is causing harm to struggling borrowers which is sometimes unnecessary. The issue is that the coverage that is purchased through force placed insurance is often considerably more expensive than…

Force placed insurance sales information released by Assurant following inquiry

September 10, 2012April 30, 2013

The Securities and Exchange Commission has put the pressure on the company to release these details. Assurant Inc. is currently under review regarding whether or not it has been overcharging for force placed insurance purchased on behalf of some homeowners, and has broadened its disclosure regarding the profits this activity has generated, following an inquiry by the Securities and Exchange Commission (SEC). According to the insurer’s data, this coverage represented 89 percent of the specialty property profits in Q1 and Q2. Throughout the first half of the year, the company…

Force placed insurance should be carefully monitored by the homeowner

August 22, 2012April 30, 2013

The moment a mortgage borrower finds out that coverage has been purchased, the bank should be phoned. When a bank purchases force placed insurance on behalf of a customer, it typically isn’t the highest point on a priority list, as it typically occurs at a time when the homeowners are already at risk of losing their homes. However, it is still in the homeowners best interest to investigate it. Force placed insurance is bought by a bank on a customer’s home when there is still a mortgage on that property…

Force placed insurance most common in Florida

July 11, 2012April 30, 2013

California came in second for the state with the most premiums collected. According to sworn testimony regarding force placed insurance, before the United States Judicial Panel, Florida has the largest share of premiums from these policies. Its share was 35 percent of the entire country in 2011, equaling about $1.2 billion. The state was among the highest for home foreclosures in the country, and the majority of people whose mortgage payments defaulted also stopped paying their insurance premiums. This meant that many people had the force placed policies imposed in…

Force placed insurance policies to be the topic of official questioning

July 9, 2012July 8, 2012 Nordstrom

Florida regulators will grill Praetorian execs as well as those from two insurers. Regulators in Florida will be questioning executives of two insurers and Praetorian Insurance Company this week regarding their policies and behaviors regarding force placed insurance policies. Significant controversy has been growing around this form of coverage. These policies are imposed on homeowners by lenders when coverage on the mortgaged property has been allowed to lapse or expired, as they are often sold by companies whose rates are unregulated, by surplus lines insurers, or by companies that are…