Insurance regulators in New York and California have demanded that banks lower the premiums they charge delinquent homeowners for force-placed hazard insurance. Now the National Association of Insurance Commissioners is taking a closer look as well.

The NAIC, the standard-setting body for state insurance regulators, announced late last week that it intends to hold a hearing on force-placed insurance, also known as lender-placed insurance. The focus of the event, which will take place during the state commissioners' annual meeting next month, appears to whether financial arrangements between banks and insurers are harming consumers—a controversial question about which American Banker has reported on extensively over the past two years.

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