N.Y. Comp. Codes R. & Regs. tit. 11 § 227.6
Current through Register Vol. 46, No. 45, November 2, 2024
Section 227.6 - Prohibited Practices(a) For purposes of this section, the term force-placed insurance shall include hazard insurance to protect against flood loss obtained by a servicer as required by the Flood Disaster Protection Act of 1973, 42 U.S.C. § 4001 et. seq.******(b) No insurer shall issue force-placed insurance on mortgaged property serviced by a servicer affiliated with the insurer.(c) No insurer, insurance producer, or affiliate shall compensate a servicer or a person or entity affiliated with a servicer with respect to force-placed insurance on residential real property being serviced by the servicer.(d) No insurer, directly or indirectly, shall compensate an insurance agent that acts in the adjustment of a loss for force-placed insurance, or an independent adjuster that acts in the adjustment of a loss for force-placed insurance, based on underwriting profitability or loss ratio.(e) No insurer shall share force-placed insurance premiums or force-placed insurance risk with the servicer that obtained the force-placed insurance or a person or entity affiliated with the servicer that obtained the force-placed insurance.(f) No insurer, insurance producer, or affiliate shall make any payments, including but not limited to the payment of expenses, to a servicer or a person or entity affiliated with a servicer in connection with securing force-placed insurance business.(g) No insurer, insurance producer, or affiliate shall provide insurance tracking to a servicer or a person or entity affiliated with a servicer for a reduced fee or no separately identifiable charge.****** 42 United States Code sections 4001 - 4129 (revised January 3, 2012), published by U.S. Government Printing Office, Washington, D.C. 20401. Copies of such documents are available for inspection at the offices of the Department of Financial Services at One State Street, New York, NY 10004.
N.Y. Comp. Codes R. & Regs. Tit. 11 § 227.6