Financial

Gaining Control of Your Forced Placed Insurance Program

Fri, 16 Mar 2012 09:56:00 GMT

The policies and procedures used in the administration of lenders’ forced placed insurance have recently received increased scrutiny by regulators. While most of the attention thus far has been focused on lenders that have subsidiaries that actually underwrite the forced placed coverage, many of the issues (e.g. unreasonably high rates, communication breakdowns with the borrower and incorrect placement issues) could also give rise to additional regulation and lawsuits against lenders that outsource forced placed services.

More...

Unforeseen Risks Arising From Foreclosed Properties

Mon, 28 Nov 2011 15:51:00 GMT

As you may be aware, a recent news article noted that a large multi-national bank is being sued for $15 million for negligence following a robbery and homicide at a vacant building owned by the bank through foreclosure. Liability coverage for bank owned/foreclosed properties is handled quite differently from bank to bank, and coverage limits available may be insufficient to cover this type of catastrophic liability claim.

More...

Avoid Common Banker's Bond Pitfalls

Tue, 18 Oct 2011 08:35:00 GMT

Financial institution bonds are, in contrast to management liability policies (such as D&O and employment practices), written on standardized coverage forms. Although this provides buyers with a more clear understanding of the protection afforded, unfavorable terms and conditions are often accepted when more favorable language may be available. Below are several examples of common bond provisions that can often be amended to broaden your protection...

More...