Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The New York Department of Financial Services proposed new rules today that will prohibit forced-placed insurers from placing such coverage on mortgaged property serviced by an affiliated bank or servicer. Force-placed carriers would also be prohibited from paying commissions on, or reinsuring, force-placed insurance with an affiliated mortgage service.

The rules are meant to address a practice wherein banks and servicing companies entered into profit-sharing agreements with force-placed insurers, thereby incentivizing those companies to seek insurance with higher premiums. This, in turn, drove up homeowners costs for consumers. It also spurred a probe in 2011 by the DFS against Assurant and QBE, the two largest carriers of forced-placed insurance.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.