NAIC's Force-Placed Market Inquiry Will Focus On Rates

Law360, New York (August 9, 2012, 9:54 PM EDT) -- National Association of Insurance Commissioners President Kevin McCarty told reporters Thursday that state insurance regulators will scrutinize controversial business practices in the force-placed homeowners insurance industry, directing their focus on whether rates for these policies are justified.

Regulators recently have turned an eye to the market for force-placed insurance — policies that banks impose when homeowners let their insurance lapse — following consumer advocates' claims that insurers had overcharged homeowners by millions of dollars.

Critics of force-placed insurers say their policies can cost as much as...
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