Skip to Content

Get Your FREE Consultation

Blog

NY State Reaches Settlement with All Force-Placed Insurers

August 7, 2013

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:

  • Force-placed insurers may not make any payments, including but not limited to payment of expenses, to servicers, lenders, or their affiliates in connection with securing business.
  • Force-placed insurers may not issue force-placed insurance on mortgaged property serviced by a bank or servicer affiliated with the insurers.
  • Force-placed insurers may not reinsure force-placed insurance policies with any entity affiliated with the lender or servicer that obtained the policies.
  • Force-placed insurers may not pay contingent commissions based on underwriting profitability or loss ratios.
  • Force-placed insurers may not pay commissions to a lender or servicer or a person or entity affiliated with a lender or servicer on force-placed insurance policies obtained by the servicer.

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.

TALK TO US NOW
FOR FREE
No Win, No Fee

Review Us

Martin & Jones, PLLC logo

“I appreciate all you’re doing and trying to do for me. I don’t think I’ve ever talked to a nicer attorney than Mike, and his assistant. You’re real nice people. It really makes you feel better, even with all the problems I have.”

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
TALK TO US NOW
FOR FREE
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.