Items Tagged with 'force-placed'

ARTICLES

  • Another scandal: Wells Fargo may have wrongfully forced auto insurance on 570,000 customers

    Will refund customers $80 million
    Wells Fargo is still facing fallout from the bank’s fake account scandal, which saw the bank fined $185 million for more than 5,000 of the bank’s former employees opening more than 2 million potentially unauthorized accounts to get sales bonuses. But now, the bank has another scandal on its hands – this one involving the bank wrongfully force-placing auto insurance on as many as 570,000 customers.
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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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