Berger & Montague, P.C. and Nichols Kaster, PLLP Announce Final Approval of Nationwide Class Action Settlement with Citibank, N.A, Assurant, Inc., American Security Insurance Company, and Standard Guaranty Insurance Company
Aug 25 14
Judge David Hurd of the United States District Court for the Northern District of New York has granted final approval of a nationwide class action settlement in a pair of consolidated federal cases, Casey v. Citigroup Inc., No. 12-cv-820 (N.D.N.Y.) and Coonan v. Citibank, N.A., No. 13-cv-353 (N.D.N.Y.), involving force-placed insurance. The law firms appointed to represent the plaintiffs and the classes, Berger & Montague, P.C. and Nichols Kaster, PLLP, are pleased that the court approved all aspects of the settlement, which makes force-placed insurance refunds available to over 400,000 borrowers. Specifically, Citibank and the other defendants have made more than $115 million in refunds and escrow credits available to borrowers whose mortgage loans were serviced by Citibank, and who submit a claim form to receive a refund of the force-placed insurance premiums that were charged to them. The lawsuits alleged that Citibank and its force-placed insurance vendors, Assurant Inc., American Security Insurance Company, and Standard Guaranty Insurance Company, unlawfully profited from force-placing insurance on borrowers' properties, including by arranging for improper kickbacks or so-called 'commissions' to be paid to Citibank or its affiliates by the force-placed insurance vendors. The Casey lawsuit also alleged that Citibank increased the amount of force-placed flood insurance required for some borrowers in excess of their unpaid principal balance, in violation of borrowers' loan agreements. To receive compensation under the settlement, mortgage borrowers whose loans have been serviced by Citibank and who were subjected to force-placed insurance must submit a claim form by the end of the claim period, which remains open. Class members who submit timely and valid claims will receive a check or escrow credit equal to 12.5% of any hazard insurance premiums they were charged between January 1, 2007 and April 2, 2014; 8% of any wind insurance premiums they were charged between January 1, 2007 and April 2, 2014; and 8% of any flood insurance premiums they were charged between May 17, 2006 and April 2, 2014.
Assurant Inc., American Security Insurance Company and American Bankers Insurance Company Of Florida, Inc. Reach Agreement with New York Department of Financial Services
Mar 21 13
Assurant Inc., and its subsidiaries American Security Insurance Company (ASIC) and American Bankers Insurance Company Of Florida, Inc. (ABIC), reached an agreement with the New York Department of Financial Services (NYDFS) regarding lender-placed insurance in the State of New York. Under the terms of the agreement, ASIC and ABIC, both part of Assurant Specialty Property, will: Make a $14 million settlement payment, without admitting or denying any wrongdoing. Modify certain lender-placed business practices consistent with new regulations expected to be issued by the NYDFS that will apply to all New York-licensed lender-placed insurers of properties in the state. File its new lender-placed program and new rates in New York. Establish a refund opportunity program to be administered by an independent third party, through which New York property owners with ASIC or ABIC polices issued on or after Jan. 1, 2008 may be eligible for refunds of a portion of their premiums.
American Security Insurance Company Provides Earnings Guidance for 2012
Oct 22 12
American Security Insurance Company provided earnings guidance for 2012. For 2012, the company estimates that it will record approximately $140 million of gross written premiums and $108 million of net earned premiums in California for the type of policies that are subject to the rate reduction. This is based on actual September year-to-date California results of $105 million in gross written premiums and $81 million in net earned premiums. On the basis of 2012 placement rates and the current book of business, the company estimates that annualized net earned premiums and net income would be reduced by approximately $33 million and $18 million, respectively.