Insurance reforms pushed by the New York Department of Financial Services now cover 100 percent of the New York force-placed insurance market. The Department of Financial Services recently announced settlements with four New York force-placed insurers (American Modern Insurance, Chubb, Fidelity and Deposit Company of Maryland, and FinSecure), that had not previously agreed to accept changes in the way they do business in New York. The most recent agreements follow regulators’ earlier settlements with Assurant and QBE, reached in March and April 2013. Assurant and QBE have more than 90 percent of the force-placed insurance market in New York and are the dominant players in the market nationally.
New York’s force-placed insurance reforms include the following prohibitions:
The Department of Financial Services regulations will cover any company – present or future – that offers force-placed insurance in New York. The reforms were badly needed and should be followed by other states.