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Media Advisory

Office Announces Public Rate Hearing for American Security Insurance Company’s Lender-Placed Insurance Program
Thursday, May 09, 2013
Contact Info:

Amy Bogner
850-413-2515
Amy.Bogner@floir.com


The Florida Office of Insurance Regulation (Office) is conducting a public hearing to review the proposed rate filing for American Security Insurance Company’s property collateral protection program, also known as “lender-placed” or “force-placed” insurance. American Security is an admitted Florida insurer and has the largest market share of lender-placed policies with more than 142,000 representing a total premium of $508 million.

Lender-placed (or force-placed) insurance is coverage that a mortgage lender or bank purchases to protect its interests when the property owner fails to purchase property insurance. This often occurs during situations of abandonment and foreclosure. The premium cost is usually higher than conventional property insurance premiums and is then charged to the property owner.  The high premium costs and the fact that property owners are often “forced” to pay for this coverage by the lender (mortgage lender/bank) has brought increased scrutiny to the industry.

Who:
American Security Insurance Company
What:

A public hearing to discuss American Security Company’s proposed statewide average rate change of 0% for its property collateral protection program. The proposed rate would become effective August 1, 2013 for any new and renewal business. The proposed rate change is not uniform and some areas of the state are subject to higher rates.

Agenda

MEDIA AVAILABILITY:

Monday, May 13, 2013 @ 12:45p.m. (EST)
(15 minutes prior to the start of the public hearing in Senate Office Building, Room 301)
Kevin McCarty, Florida’s Insurance Commissioner will provide a short statement about the public rate hearing.
Room access for set up is 12:15p.m. Press packets will be distributed to members of the media.

When:
Monday, May 13, 2013 1:00 PM
Where:

Senate Office Building, Room 301 (adjacent to the Capitol)
Florida Capitol Complex
Tallahassee, Florida

The Florida Channel will stream the hearing live online via Web Channel 2, as well as broadcast on their affiliate stations

For more information, visit the Office’s lender-placed insurance website page.

Video is now available.
Contact Info:

Amy Bogner
850-413-2515
Amy.Bogner@floir.com

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.  For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm.

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