NYS Department of Financial Services/American Security Insurance Company and American Bankers Insurance Company of Florida Force-Placed Insurance Program
Important Notice Regarding Refunds for Charges Relating to Force-Placed Insurance
This is the official website for the settlement between the New York State Department of Financial Services ("DFS"), American Security Insurance Company ("ASIC") and American Bankers Insurance Company of Florida ("ABIC") concerning force-placed insurance policies issued in New York State by ASIC and ABIC. To view a copy of the Consent Order, which incorporates the terms of the settlement, please click here.
Under the terms of the settlement, ASIC paid a civil penalty of $14 million. Also under the settlement, eligible claimants may be entitled to a refund for some of the charges incurred in connection with force-placed insurance.
Force-placed insurance is insurance taken out by a homeowner's bank, lender or mortgage servicer when the insurance required by the mortgage is not maintained. This can occur if a homeowner's insurance policy lapses or if the policy is not sufficient. Some homeowners have been issued a force-placed policy erroneously and often the premiums for the force-placed coverage far exceed the premiums charged for voluntary homeowners' insurance. Force-placed insurance is also sometimes referred to as lender-placed insurance.
Eligibility Requirements for Refund
To qualify for a refund, you must have been issued a force-placed policy by ASIC or ABIC on or after January 1, 2008 and meet the eligibility criteria for one of the following three categories of claimants:
- You defaulted on your mortgage or were foreclosed upon because of the forced placement.
- You were charged for force-placed insurance at a coverage amount higher than the amount permitted by your mortgage.
- You had voluntary homeowner's coverage in effect or were charged commercial force-placed insurance rates on a one-to-four family residence.
On May 2, 2013, the Notice and Claim Forms were mailed to homeowners who have been identified as having been charged for force-placed insurance by ASIC or ABIC. If you do not receive a Claim Form and believe you may be eligible for a refund, please contact us and provide your full name and mailing address with your request. Alternatively, you can download or print out a Notice and Claim Form from this website.
Completed Claim Forms and any accompanying documentation may be submitted either by mail or by fax using the contact information posted here.
Please continue to check this website for important updates.