The history of Force-Placed Insurance would not be complete without including the force-placed flood insurance turmoil that occurred after the 2012 passage of the Biggert-Waters Act. The mandatory escrow requirements had a negative effect on the legacy force-placed insurance business model.
To understand why the words “force-placed insurance” appear in the Dodd-Frank Law 331 times, we have to look back on how the money-center banks got involved in the force-placed insurance premium money train.
Part II in the blog series “Challenging The Force-Placed Insurance Business Model: Early History”. This post will discuss the early history going back to when insurance trackers received overnight packages containing X-checking data files. We discuss the history up to the passage of the Dodd-Frank Act.
This blog post starts Miniter Group’s blog series that will challenge the Force-Placed Insurance business model. The History of Force-Placed Insurance including the fee income era, Dodd-Frank reform, on-going compliance issues, and a new proposed business model will be covered in this series.