Items Tagged with 'force-placed insurance'

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American Modern Insurance Group fined $1M for over-charging on force-placed insurance

Also required to cut rates by 43%
The state of Minnesota announced earlier this week that it is fining American Modern Insurance Group $1 million for over-charging Minnesota residents for force-placed insurance. American Modern Insurance Group will also be required to cut its insurance rates by 43% and provide refunds to the affected homeowners.
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HSBC to pay $4 million to settle force-placed insurance kickback charges

Second settlement this month for HSBC
HSBC will pay a fine of $4 million as part of a settlement with the state of Massachusetts over charges that the bank took commissions and kickbacks for force-placed insurance policies. According to the office of Massachusetts Attorney General Maura Healey, HSBC received "compensation" in connection to the force-placed insurance premiums charged to HSBC’s borrowers.
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Assurant continues shift toward housing insurance programs

Finds buyer for several health insurance business lines
Assurant is taking the next step in its shift toward a focus on its housing insurance programs, which include renters/apartment insurance, flood insurance, manufactured housing and force-placed insurance. The company announced Wednesday that it will immediately begin to wind down its major medical operations and has reached an agreement in principle to sell “certain business lines and assets” to National General Holdings Corp.
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Assurant exits health insurance; focus shifts to housing

Plans expansion of lender-placed insurance and other programs
Assurant is planning to exit the health insurance and employee benefits business and will shift its focus instead to its housing insurance programs, which include renters/apartment insurance, flood insurance, manufactured housing and force-placed insurance.
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Ocwen, Assurant to pay $140 million to settle force-placed insurance suit

Class-action suit accused Ocwen of artificially inflating costs
Ocwen Financial and Assurant agreed to pay $140 million to settle a massive class-action lawsuit, which accused Ocwen of artificially inflating the cost of force-placed insurance in exchange for kickbacks from Assurant. The settlement agreement, which is awaiting final approval from federal court in Florida, resolves claims of 399,843 homeowners who allege they were overcharged for insurance.
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FHFA-OIG: FHFA should sue over force-placed insurance practices

Excessively priced insurance cost GSEs $158 million in 2012
The Federal Housing Finance Agency’s Office of the Inspector General is suggesting that the FHFA sue its servicers and lender-placed insurance providers because Fannie Mae and Freddie Mac have suffered “considerable financial harm” in the LPI market.
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