Fla. Judge Dismisses Force-Placed Insurance Case Against Insurer, Mortgage Servicer

MIAMI — A Florida federal judge has dismissed a case accusing an insurer of engaging in a force-placed insurance scheme with a mortgage lender, finding the defendants adequately disclosed to the plaintiffs the consequences of failing to maintain property insurance.

On Aug. 25, Judge Federico Monero explained that plaintiffs’ mortgage gave the mortgage servicer broad discretion to protect its own interests and advised plaintiffs that they would have to pay higher premiums for lender-placed insurance.

Renata Circeo-Loudon and Louis Circeo sued American Reliable Insurance Co., Green Tree Servicing LLC and Green Tree Insurance Agency, accusing them of participating in a …