The financial industry's troubles with a controversial type of insurance coverage appear to be spreading to new areas. In recent weeks New York State's Department of Financial Services has issued subpoenas to at least 18 mortgage servicers, a dozen insurers and 20 affiliated insurance agencies, according to someone familiar with the investigation.

The state officials are seeking information about force-place property insurance that banks purchase on behalf of uninsured borrowers. Force-placed insurance is a type of coverage that protects creditors in the event an uninsured borrower's property is damaged.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access