NY Goes After Agents, Brokers On Force-Placed Insurance

Law360, New York (August 22, 2013, 2:43 PM EDT) -- A New York regulator on Wednesday warned insurance agents and brokers not to offer cheap or free services to mortgage lenders and servicers as part of efforts to lure force-placed insurance business.

In the latest crackdown on practices in the force-placed market, the New York Department of Financial Services said insurance agents and brokers that were not affiliated with insurers were improperly offering low-cost or free tracking services to mortgage servicers and lenders.

According to the regulator, these agents and brokers volunteered to keep track of...
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