Wells Fargo, QBE Face Suit Over Preset Policies

Law360, New York (April 11, 2011, 7:58 PM ET) -- Several Wells Fargo & Co. subsidiaries were hit with a proposed class action in Florida on Thursday alleging that the companies received kickbacks from QBE Insurance Group Ltd. for forcing mortgage owners to buy high-priced homeowner’s insurance after their policies lapsed.

The suit filed in the U.S. District Court for the Southern District of Florida alleges that Wells Fargo Financial Inc. and other mortgage servicers engaged in “force-placed” insurance practices that violated the Florida Deceptive and Unfair Trade Practices Act.

According to the complaint, when a...
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