Rate Rule Frees Wells Fargo, QBE From Force-Placed Action

Law360, New York (September 27, 2013, 4:29 PM ET) -- A Mississippi federal judge on Thursday threw out a putative class action claiming Wells Fargo Bank NA force-placed exorbitant QBE Insurance Corp. flood policies on mortgagors and took kickbacks off the premiums, ruling the disputed rates were unassailable.

U.S. District Judge Neal B. Biggers Jr. concluded that claims arising from allegedly overpriced force-placed policies are barred by the filed-rate doctrine, which holds that premium rates that have been approved by state insurance regulators are inherently reasonable and immune from judicial second-guessing.

In a November 2012 complaint,...
To view the full article, register now.