Lawyers and Settlements
What are you looking for?
Home Page >> Potential Lawsuit >> Forced-Placed Insurance

Force-Placed Insurance

Insurance companies, banks and other financial firms face force-placed insurance lawsuits alleging their force-placed insurance is offered at outrageous rates because of the relationship between banks and insurance companies. Allegations have been made that force-placed home insurance is much more costly than traditional home insurance and could be a conflict of interest for some financial institutions.


Send your Force-Place Insurance claim to a Lawyer who will review your claim at NO COST or obligation.Get Legal Help Now

Forced-Place Insurance Complaint

force_placed_insuranceAccording to Bloomberg (05/06/12), banks and mortgage services have agreements with insurance companies to buy policies on behalf of a homeowner whose insurance coverage has lapsed. The ability to provide force-placed insurance allows banks to protect properties that they have the mortgage for in case of disaster. The bank forwards the premium to the insurer, the insurer pays a commission to the bank and the homeowner is billed for the premium and commissions.

Critics say that once the financial firms realized there was profit to be made in force-placed insurance, reportedly to the tune of $5.5 billion in 2010, financial institutions formed their own specialty insurance companies, so they could offer force-placed insurance on properties without insurance coverage.

Furthermore, some critics argue that force-placed policies have less protection than cheaper policies and the policies usually protect the lender, not the homeowner.

Force-Place Insurance Lawsuits

Force-placed insurance lawsuits have reportedly been filed against insurers and banks for force-placed insurance. A lawsuit against Wells Fargo and QBE was recently granted class-action status by a judge in Florida who alleged the two companies "colluded in a scheme to artificially inflate the premiums charged to homeowners" (as quoted in Business Insider; 02/27/12).

Plaintiffs claim consumers are charged excessive and unreasonable premiums for their force-placed insurance. They argue that force-placed insurance can cost up to 10 times more than traditional homeowners insurance, often with inferior coverage. Meanwhile because banks have set up their own specialty insurance affiliate companies, there are concerns that the financial institutions are involved in a conflict of interest. Finally, there are allegations that unrelated companies may have offered kickbacks for forced-place insurance policies, offering the banks an incentive to pass customers along to force-placed insurance providers.

According to reports, up to 31 financial institutions have been subpoenaed by the New York State Department of Financial Services for an investigation into the overlap between banking and insurance. Meanwhile, more force-placed insurance lawsuits may be filed against insurance companies and banks for unreasonably high force-placed insurance premiums.

Force-Placed Insurance Legal Help

If you or a loved one has suffered damages in this case, please click the link below and your complaint will be sent to a Force-Placed Insurance lawyer who may evaluate your claim at no cost or obligation.

Last updated on Mar-17-15


Forced-Place Insurance Continues to Trigger Lawsuits
Forced-Place Insurance Continues to Trigger Lawsuits Sacramento, CA: The parade of Lender insurance lawsuits continues unabated in spite of legislators in various states attempting to put checks and balances in place aimed at preventing allegedly unnecessary and unjust placement of expensive lender insurance products. One of the more recent class actions accuses US Bank NA of systematically abusing its right to force-place insurance on mortgaged property [READ MORE]

Force-Placed Insurance Lawsuits Forcing Industry to Rethink Practices
Force-Placed Insurance Lawsuits Forcing Industry to Rethink Practices New York, NY: As some force-placed insurance lawsuits move closer to resolution, more companies are announcing that they are stopping force-placed insurance practices. Meanwhile, federal regulators have also considered implementing new rulings to curb unethical practices used by some companies in the industry [READ MORE]

Forced-Placed Insurance Lawsuits Close to Settling
Forced-Placed Insurance Lawsuits Close to Settling New York, NY: Two major players in the mortgage and insurance business are close to settling a putative Force-placed insurance lawsuit, after documents related to the class action and details of an ongoing settlement were filed with the courts this week [READ MORE]


Publish your Force-Place Insurance experience here for our readers to learn from.

Request Force-Place Insurance Legal Help

First name:

Last name:

Email address:

Phone number(s):


Zip Code:

Describe your complaint:

Check Claim Status Advertise with us Legal Funding

Related Lawsuits

Legal Services:


FAQ | TOS | Privacy | Disclaimer | About Us | Contact Us | Press | Advertise | Member Login | Jobs | Site Map | View Mobile Website |

Better Business Bureau   CAALA   Best of the Web Approved   Public Justice

This work is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License © 2001-2015 Online Legal Media. All rights reserved.