Alert April 17, 2012

New York State Department of Financial Services to Further Investigate Force-Placed Insurance Practices

New York’s Department of Financial Services announced that it intends to continue investigating force-placed insurance practices of insurers operating in New York. The Department conducted an initial review, the result of which raised concerns that has led to requests from the Department for more detailed and extensive information, including how rates and expected losses are calculated and itemized reports of insurers’ expenses. The result of the Department’s initial investigation have led it to widen the depth of it’s investigation. The Department plans to hold public hearings in May to hear from interested parties about the whether the rates for force-placed insurance are excessive. Click here for the Department’s press release.