NU Online News Service, April 13, 9:58 a.m.EDT

Assurant Insurance Company's specialty-property unit defendedits forced-place-insurance practices, saying that, among otherprotections, it seeks to ensure that consumers are "well-informed"about their force-placed coverage.

The comments by Robert Byrd, senior director, communications atAssurant's specialty-property unit, follow an announcement by thefederal Consumer Financial Protection Bureau that it is draftingnew regulations governing the insurance product.

Additionally, the New York Department of Financial Services saidit plans to hold a hearing in May about forced-place insurance,and has asked nine underwriters, including two Assurancesubsidiaries, to provide financial and other data regarding itsissuance of these policies.

"We agree with the importance of ensuring consumers are wellinformed, with clear communication about their lender-placedcoverage," Assurant's Byrd says.

He says that is why Assurant follows an extensive notificationprocess before a policy is placed, with a large team ofcustomer-service professionals who make extensive efforts to verifyinsurance.

"Every customer is contacted multiple times, alerted to apossible lapse, and reminded to restore coverage," he explains.

He adds that in the event a policy is placed, all the homeownerhas to do is show proof of continuous coverage, and thelender-placed policy is cancelled at no charge.

"Many of the suggestions being proposed for lender-placedinsurance track the practices we have in place today," Byrdsays.

"As a leader in the industry, we have had productive discussionswith the CFPB, and look forward to continuing to work in the bestinterest of consumers," he states.

Speaking for Zurich, which has two subsidiaries that have beenasked to provide information to the New York DFS, Steve McKay,media and public relations director for Zurichin North America,says Zurich has "and will continue to cooperate with the [NY DFS]inquiry."

The regulations being drafted by the CFPB would give consumersmore rights, including requiring servicers to give advance noticeand pricing information before charging consumers for thisinsurance.