Assurant Inc. fined $75M in settlement; Delaware to see $212K
Officials with the Delaware Department of Insurance say they and insurance regulators from 48 other jurisdictions have reached a settlement with Assurant, Inc. in relation to Assurant's reported excessive rates for consumers on force-placed property insurance.
According to a multi-state targeted market conduct examination by regulators from Delaware and six other states, Assurant allegedly transferred the consumer-paid surplus premiums to mortgage servicers through rebates.
In the settlement, Assurant agreed to change certain business practices, regularly re-file its rates on force-placed property insurance and make yearly reports to regulators to help market surveillance, officials said. Delaware reportedly gets $212,505 of the total $75 million settlement payment by Assurant.
"Consumers deserve an insurance marketplace that is fair, affordable and competitive," Delaware Insurance Commissioner Trinidad Navarro said. "By entering into this agreement, Assurant has drawn a line under the past and committed to being part of the solution in the force-placed property insurance market. The Delaware Department of Insurance commends Assurant for its confirmation of these business practices and for its commitment to fair and compliant competition."
The Department of Insurance says force-placed property insurance is taken out by lenders on properties where the property owner's insurance has either expired or fails to provide satisfactory coverage.