Force-Placed Policies Likely Gouge Homeowners, NY Says

Law360, New York (April 5, 2012, 6:11 PM EDT) -- New York's Department of Financial Services said Thursday that insurers owned by three multibillion-dollar conglomerates are likely charging homeowners too-steep rates for required policies and that some could be sending those profits back to the banks that issue home loans.

Insurers owned by New York-based Assurant Inc., Sydney-headquartered QBE Insurance Group Ltd., and Swiss-based Zurich charge high premiums for the so-called force-placed policies but pay out as little as 20 cents on the dollar to fund claims, agency head Benjamin M. Lawsky said.

"In addition, questionable...
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