STORY FROM: Reinsurance & Arbitration
QBE Not Covered for Participation in Alleged Force-Placed Mortgage Insurance Scheme, N.Y. Judge Says
September 25, 2017
NEW YORK — QBE Americas Inc. and its affiliates are not entitled to insurance coverage for lawsuits and state investigations arising from its participation in an alleged kickback scheme involving force-placed mortgage insurance, a New York judge has ruled.
On Sept. 18, Judge Shirley W. Kornreich of the New York County Supreme Court found that QBE’s alleged conduct, as outlined in a consent order and the lawsuits, falls within the policies’ “Fee Arrangement Exclusion,” which bars coverage for kickbacks, among other conduct.
Banks usually require mortgage borrowers to buy insurance to protect the bank’s secured interest in the home. ...