Tuesday, April 23, 2013

Major Player In Banksters' Force Placed Insurance Racket Agrees To Cough Up $10M In Penalties, Plus Homeowner Restitution To Settle NYS Regulator Probe

From the Office of New York State Governor Andrew Cuomo:

  • Governor Andrew M. Cuomo [] announced that a New York State Department of Financial Services (DFS) investigation has produced an additional settlement with a major force-placed insurer, QBE, which requires the company to implement New York’s nation-leading reforms to help better protect homeowners from abuse in this industry.

    The QBE settlement includes restitution for homeowners who were harmed, a $10 million penalty paid to the State of New York, and a set of reforms – first agreed to last month by Assurant, Inc., the nation’s largest force-placed insurer, in a DFS settlement – that will save homeowners, taxpayers, and investors millions of dollars going forward through lower rates.

    Together with DFS’s previous settlement with Assurant, today’s agreement with QBE means that companies responsible for at least 90 percent of the force-placed insurance market in New York have signed onto the Cuomo Administration’s nation-leading reforms. (QBE has been the second-largest force-placed insurer both nationally and in New York since it acquired Balboa Insurance Company’s -- a subsidiary of Bank of America – force-placed insurance business in 2011. Bank of America insurance holding company is also a signatory to the settlement.)
For more, including all the key settlement terms, see Cuomo Administration Settles With Country's Second Largest 'Force-Placed' Insurer, Leading Nationwide Reform Effort and Saving Millions for Homeowners and Investors (New York Settlement with QBE Includes Restitution for Homeowners, a $10 Million Penalty, and Industry-leading Reforms; Settlement Comes On Heels of Deal with Assurant, the Nation's Largest Force Placed Insurer; Companies Responsible for More than 90 Percent of the 'Force-placed' Market in New York Have Now Signed onto Reforms).

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