7th Circ. Junks Force-Placed Insurance Suit Against Wachovia

Law360, Los Angeles (November 04, 2013, 9:45 PM ET) -- The Seventh Circuit on Monday affirmed the dismissal of a proposed class action alleging Wachovia Mortgage FSB placed fraudulent insurance on a homeowner’s property and paid kickbacks to an insurance agency affiliate, finding the complaint didn’t state a viable claim for relief.

Plaintiff Martha Schilke claimed Wachovia — her lender and holder of a mortgage on her home — had secured replacement coverage from co-defendant American Security Insurance Co. after Schilke’s homeowner’s policy lapsed. Wachovia allegedly charged her a premium more than twice what she had...
To view the full article, register now.