Force placed insurance company may slash rates by 19 percent

Force placed insurance

Florida may see a considerable reduction from QBE following state regulator criticism. The biggest force placed insurance company in Florida, QBE, has responded to the criticisms that it has received from regulators by making an offer to decrease its rates by 19 percent. This could make a significant difference in the coverage and real estate marketplaces of the state. Force placed insurance is purchased by lenders – typically mortgage lenders – on behalf of homeowners who have failed to purchase their own coverage or who have let their policies expire.…

Read More

Forced place insurance lawsuit filed against Wells Fargo

force placed insurance

Bank accused of charging its mortgage clients inflated homeowners coverage premiums. A lawsuit has been filed against Wells Fargo Bank NA, which has accused the company of charging inflated force placed insurance premiums to homeowners who had allowed their coverage to lapse. The complaint stated that the inflated premiums are designed to cover kickbacks. The Fort Lauderdale, Florida federal court received the filing, in which homeowner Ira Fladell stated that “The premiums are inflated to cover kickbacks in the form of unearned commissions and bundled administrative costs not properly charged…

Read More

Force placed insurance most common in Florida

Forced Placed Insurance

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…

Read More

Force placed insurance policies to be the topic of official questioning

Florida Homeowners Insurance

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…

Read More

New York regulators announce price reduction for forced placed insurance

New York Homeowners Insurance Rules

Homeowners to see some relief from ultra high premiums. The top financial regulator in New York state has ordered that forced placed insurance on homeowners policies be provided at a lower price, following a probe that determined that companies had been overcharging their customers. The deadline for the changes to the premium rates has been set at July 6, 2012. Benjamin M. Lawsky, the superintendent of the Department of Financial Services set the deadline for the filing of new price on the coverage for homeowners in New York, within this…

Read More