NY Borrowers Overcharged $500M For Insurance, Expert Says

Law360, New York (May 21, 2012, 6:49 PM EDT) -- The force-placed insurance market is characterized by reverse competition, where two dominant insurers have incentive only to raise rates, an expert told New York regulators Monday, estimating Empire State homeowners have been gouged out of $500 million since 2004 as a result.

Assurant Inc. and QBE Insurance Corp. control the market for policies bankers impose when homeowners let their insurance lapse — and there is no downward pricing pressure, Center for Economic Justice Executive Director Birny Birnbaum told the New York Department of Financial Services....
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