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HSBC, Assurant Mired In Force-Placed Coverage Class Action

Posted: March 28, 2014
By: Andrew Scurria
Source: Law360
Practice Areas: Consumer Protection, Insurance & Financial Products & Services, Lending Practices & Borrowers’ Rights

A New York federal judge on Thursday refused to absolve HSBC Bank USA NA of taking kickbacks in return for forcing excessive Assurant Inc. flood insurance on mortgagors, finding that standard lending contracts do not unambiguously afford the bank the right to select coverage limits.

U.S. District Judge Mae A. D'Agostino allowed putative class claims for breach of contract, unjust enrichment and violation of New York consumer protection law to advance over the allegedly anti-competitive force-placed insurance arrangement between HSBC and Assurant unit American Security Insurance Co.


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