N.Y. Seeks Ban on Force-Placed Insurance Commissions to Banks

September 19, 2013
American Banker 
mortgage lending news

New York Gov. Andrew Cuomo on Thursday introduced a sweeping set of rules to overhaul the force-placed insurance industry, including forbidding New York insurers from paying commissions to banks or servicers to prevent them from issuing policies on properties serviced by affiliated companies. The new rules would protect homeowners and eliminate the "kickback culture" in the force-placed industry, Cuomo said. The rules are an attempt by Cuomo and the New York State Department of Financial Services to impose a set of reforms on the entire industry, including future entrants, that it imposed through settlements with major force-placed insurance providers earlier this year.

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