Assurant, and subsidiaries American Security Insurance Company (ASIC) and American Bankers Insurance Company of Florida (ABIC), have reached an agreement with the New York Department of Financial Services (NYDFS) over lender-placed insurance in the state.
Based on the terms of the settlement agreement, ASIC and ABIC, both part of Assurant Specialty Property, will pay $14m to settle the case, without admitting or denying any charges.
They will also implement updated lender-placed business practices in accordance with the new regulations likely to be released by the NYDFS, which will be applicable for all New York-licensed lender-placed insurers of properties.
Further, both companies will submit their new lender-placed program and new rates in the city.
A refund opportunity program, supervised by an autonomous third party, will be launched by the companies to ensure New York property owners who purchased polices on or after 1 January 2008 may be eligible for some refunds.
Assurant Specialty Property president and chief executive officer Gene Mergelmeyer said with the settlement of the case with NYDFS, the company will fully concentrate its customers in New York with improved services and support.
Assurant, a specialty insurance and insurance-related products and services provider has almost $29bn in assets and $8bn in annual revenue.