New York regulators, Assurant settle over 'force-placed' insurance

March 21 Thu Mar 21, 2013 10:59am EDT

March 21 (Reuters) - New York state regulators have reached a settlement with Assurant Inc over "force-placed" insurance policies, with the insurer agreeing to a $14 million civil penalty, refunds for some homeowners and new restrictions on its relationships with banks and mortgage servicers.

Force-placed policies are typically taken out by banks or other lenders on homes where the owner does not have sufficient or any coverage. Regulators in the past have accused insurers of dramatically overcharging for such policies.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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