Forced-placed insurers will not be allowed to place suchcoverage on mortgaged property serviced by a bank or serviceraffiliated with the insurer under regulations dealing with thecontroversial product proposed Thursday by the New York Departmentof Financial Services.
The proposed rule will also not allow a force-placed carrier to paycommissions or reinsure force-placed insurance with a mortgageservice they are affiliated under the proposed rules.
That the strict rules governing placing of force-placed orlender-placed insurance would be proposed was announced by BenjaminLawsky, superintendent of the NY DFS, at the time he settledenforcement actions against Assurant and QBE, the top issuers ofFPI, starting in March.
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