Assurant Class Action Lawsuit: Investigating Fraudulent Force-Placed Insurance Practices
Assurant, Inc. is a global provider of risk management products and services, including insurance. It has been a major player in the force-placed insurance industry, offering policies through its subsidiaries such as Voyager Indemnity Insurance and American Security Insurance Company (ASIC). Force-placed insurance, also known as lender-placed insurance, is coverage that a lender buys on behalf of a homeowner when the homeowner’s original policy is canceled, lapsed, or deemed insufficient. Assurant has faced several legal challenges due to allegations of fraudulent practices, leading to the ongoing Assurant class action lawsuit.
Force-Placed Insurance Lawsuits
Over the past few years, class action lawsuits have been filed, uncovering long-standing fraudulent practices by lending institutions and their insurance providers, such as Assurant. These companies are accused of paying kickbacks to banks and mortgage companies in exchange for being awarded force-placed insurance contracts. In turn, homeowners were often forced to pay inflated premiums for policies that provided less protection than standard insurance.
While force-placed insurance is legal, investigations have revealed that banks and mortgage servicers received unlawful commissions or kickbacks from insurance companies like Assurant. This created a conflict of interest, incentivizing lenders to choose insurance companies based on their financial relationship rather than the homeowner’s best interest. This fraudulent practice is central to the Assurant class action lawsuit, which seeks to hold the company accountable for these deceptive practices.
In many cases, the cost of force-placed insurance, often two to ten times higher than voluntary policies, contributed to homeowners falling into foreclosure or facing severe financial difficulties. These exorbitant charges were often automatically added to the homeowner’s mortgage payments without clear communication or justification. Moreover, when homeowners tried to present proof of alternative coverage, many reported that it was overly difficult to have the force-placed charges removed, exacerbating their financial strain.
Notable Settlements and Ongoing Investigations
The fraudulent practices related to force-placed insurance have led to significant legal actions. For example, the State of New York settled a $25 million lawsuit against Assurant and other companies for their role in force-placed insurance fraud. Despite these settlements, numerous homeowners are still battling to have their force-placed insurance claims resolved.
Several other major settlements have taken place, including:
- JP Morgan Chase settled a $300 million lawsuit over fraudulent force-placed insurance practices.
- Wells Fargo settled a $19 million class action lawsuit related to similar allegations.
- American Security Insurance Company (ASIC), a subsidiary of Assurant, settled for $15 million in California.
However, the Assurant class action lawsuit continues as investigations are ongoing in other states. Homeowners affected by force-placed insurance practices from Assurant and its subsidiaries may still have an opportunity to seek compensation.
What is Assurant’s Role in Force-Placed Insurance?
Assurant is a global insurance provider with a large market share in the force-placed insurance sector. Through its subsidiaries such as American Security Insurance Company (ASIC) and Voyager Indemnity Insurance, Assurant provides force-placed insurance policies to banks and mortgage servicers. These policies are typically purchased by the lender when the homeowner’s original insurance is no longer in place.
Despite the vital role that Assurant plays in the force-placed insurance market, its practices have come under scrutiny. Investigations have revealed that Assurant engaged in deals with banks that prioritized profits over homeowners’ financial well-being. This led to inflated premiums, unnecessary coverage, and, in many cases, foreclosure for homeowners struggling to meet these unexpected charges. The Assurant class action lawsuit aims to address these fraudulent practices and seeks to provide compensation to affected homeowners.
For more information on the legal proceedings involving Assurant, see the following resources:
- Assurant’s Official Website – For background on Assurant and its insurance products.
- Consumer Financial Protection Bureau (CFPB) – For guidelines on force-placed insurance and consumer rights.
- New York Department of Financial Services – For more on the $25 million settlement with Assurant.
Other Banks and Insurance Companies Involved
The following financial institutions have also been implicated in fraudulent force-placed insurance practices, with many cases leading to settlements or ongoing class action lawsuits:
- JP Morgan Chase (Chase Home Finance, Chase Insurance Agency)
- Bank of America (BAC Home Loan Servicing)
- Wells Fargo (Wells Fargo Insurance, Wells Fargo Home Mortgage)
- Citigroup (Citibank, CitiMortgage)
- HSBC Bank
- U.S. Bank
- Nationstar Mortgage
Join the Assurant Class Action Lawsuit
If you have been affected by fraudulent force-placed insurance practices involving Assurant or any of its subsidiaries, you may be eligible to join the Assurant class action lawsuit. Contact Audet & Partners, LLP today for a free, confidential case evaluation and to learn more about your legal rights.