Alert July 10, 2012

National Association of Insurance Commissioners to Hold Hearings on Force-Placed Insurance

The National Association of Insurance Commissioners announced it will hold a public hearing on force-placed insurance at its annual meeting in August 2012 to discuss the use of force-placed insurance and the effect of the practice on consumers.  State regulators have turned their attention to force-placed insurance recently.  For example, after an initial review, the New York Department of Financial Services announced it planned to continue investigating force-placed insurance carriers in New York and planned to hold hearings on whether the rates for force-placed insurance were excessive (see April 17, 2012 Alert).