Law360, New York (April 11, 2012, 12:23 PM EDT) -- The use of force-placed insurance is receiving significant attention in 2012. Insurance coverage a lender or loan servicer obtains to protect its security interest in real property, force-placed insurance is a perfectly appropriate vehicle to protect a collateralized interest. Nevertheless, this product is coming under increasing scrutiny in 2012 because of increased investigation by governmental authorities, increased regulation and increased litigation.
Sometimes referred to as lender-placed insurance or collateral-protection insurance, force-placed insurance is the coverage of last resort that a lender or loan servicer...
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