뉴저지 모기지 Advisor

New Jersey 모기지 뉴스/정보 공유

NJ Federal Court Rejects Homeowners’ Claims Under Lender-Placed Insurance Policies

Author
admin
Date
2019-04-30 14:16
Views
1523
A federal district court in New Jersey has dismissed a homeowner’s claims against his mortgage servicers and the insurers that issued lender-placed insurance policies on his property.
By Steven A. Meyerowitz | April 23, 2019 at 01:00 PM
This story is reprinted with permission from the Insurance Coverage Law Center, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

The U.S. District Court for the District of New Jersey has dismissed a homeowner’s claims against his mortgage servicers and the insurers that issued lender-placed insurance policies on his property.
The Case
The mortgage on Luigi Francese’s New Jersey home required that he maintain insurance on the property “in the amounts . . . for the periods that Lender requires.” The mortgage also provided that if he failed to maintain adequate, continuous insurance, then:

Lender may obtain insurance coverage, at Lender’s option and Borrower’s expense. . . . [S]uch coverage shall cover Lender, but might or might not protect Borrower, Borrower’s equity in the Property, or the contents of the Property, . . . and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the [Lender] insurance coverage so obtained might significantly exceed the cost of the insurance that Borrower could have obtained.

New Jersey Insurance LawBOOK
Comprehensive, accurate & in-depth information about insurance policy law, as well as recent statutory requirements, in-depth discussions of key
insurance concepts, and a glossary of insurance terms.
Get More Information

Mr. Francese subsequently sued his mortgage loan servicers and insurers in a putative class action, alleging that they charged borrowers for “kickbacks” when buying force-placed or lender-placed hazard insurance policies (“LPIs”); that several of the defendants together undervalued losses on LPI-covered properties; and that, when his property suffered damage, the insurance proceeds had been misappropriated.

The defendants moved to dismiss.
The Court’s Decision
The court granted the defendants’ motion.

In its decision, the court first ruled that the “filed rate doctrine” – under which any filed rate approved by state insurance regulators was “per se reasonable and unassailable in judicial proceedings brought by ratepayers” – barred the kickback claims.

With respect to Mr. Francese’s insurance benefits claims, the court ruled that he failed to “plausibly plead” how he could recover the insurance proceeds when the loan servicer was the named insured under the LPI policies. The insurer paid the loan servicer after Mr. Francese’s home was damaged because that was “what the insurance contract required.”

The LPI policies, the court pointed out, contained “unambiguous terms” showing that the contracting parties had no intention to make Mr. Francese a beneficiary.

The court concluded that, in all, the parties conducted a regular business transaction authorized under both the mortgage’s terms and LPI policies, and Mr. Francese had no right to recover the insurance proceeds arising under the LPI policies.

The case is Francese v. American Modern Ins. Group, Inc., No. 2:17-2246 (D.N.J. April 16, 2019). Attorneys involved include: For LUIGI FRANCESE, Plaintiff: FREDERIC AURELIEN, LEAD ATTORNEY, THE LAW OFFICES OF FREDERIC AURELIEN, HACKETTSTOWN, NJ. For AMERICAN MODERN HOME INSURANCE COMPANY, AMERICAN MODERN INSURANCE GROUP, INC., Defendants: JEFFREY MATTHEW BRENNER, LEAD ATTORNEY, POST & SCHELL PC, PHILADELPHIA, PA. For SPECIALIZED LOAN SERVICING LLC, Defendant: JONATHAN E. SAMON, LEAD ATTORNEY, MCGLINCHEY STAFFORD, NEW YORK, NY. For RESIDENTIAL CREDIT SOLUTIONS, INC., Defendant: JOY HARMON SPERLING, LEAD ATTORNEY, DAY PITNEY LLP, Parsippany, NJ.

Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. Mr. Meyerowitz is the Director of the Insurance Coverage Law Center and editor-in-chief of journals on insurance law, banking law, bankruptcy law, energy law, government contracting law, and privacy and cybersecurity law, among other subjects. He may be contacted at smeyerowitz@meyerowitzcommunications.com.


https://www.law.com/njlawjournal/2019/04/23/new-jersey-court-rejects-homeowners-claims-under-lender-placed-insurance-policies-399-25223/?slreturn=20190330101612
Total 111
NumberTitleAuthorDateVotesViews
111
[Pending] Waiting for administrator Approval.
admin | 2024.01.03 | Votes 0 | Views 266
admin2024.01.030266
110
[Pending] Waiting for administrator Approval.
admin | 2024.01.03 | Votes 0 | Views 224
admin2024.01.030224
109
[Pending] Waiting for administrator Approval.
admin | 2024.01.03 | Votes 0 | Views 249
admin2024.01.030249
108
美 모기지 상환비용, 월세의 1.5배…"27년 만 최대 격차"
admin | 2023.10.24 | Votes 0 | Views 266
admin2023.10.240266
107
미국서 집 사서 모기지 갚으려면 1년에 11만 5천불은 벌어야
admin | 2023.10.22 | Votes 0 | Views 260
admin2023.10.220260
106
8% 향하는 미국 모기지 금리…"주택 수요 빠르게 식어"
admin | 2023.10.07 | Votes 0 | Views 311
admin2023.10.070311
105
미국 모기지 금리 연 7.49%…2000년 12월 이후 최고
admin | 2023.10.06 | Votes 0 | Views 264
admin2023.10.060264
104
[Pending] Waiting for administrator Approval.
admin | 2023.10.05 | Votes 0 | Views 287
admin2023.10.050287
103
모기지 고금리에도 여전히 뜨거운 전국 주택시장
admin | 2023.10.03 | Votes 0 | Views 312
admin2023.10.030312
102
[Pending] Waiting for administrator Approval.
admin | 2023.09.05 | Votes 0 | Views 330
admin2023.09.050330
101
미국 모기지은행협회 지난 2년간 모기지금리
admin | 2023.09.05 | Votes 0 | Views 302
admin2023.09.050302
100
[부동산] 모기지론 종류와 수수료
admin | 2023.09.05 | Votes 0 | Views 316
admin2023.09.050316
99
5월 1일부터 새 모기지 수수료 규정이 시행
admin | 2023.06.01 | Votes 0 | Views 267
admin2023.06.010267
98
“매매차익·배당수익 다 잡는 미국 리츠, 무릎까지 하락”
admin | 2023.05.04 | Votes 0 | Views 352
admin2023.05.040352
97
미국 5월부터 새 모기지 규정 시행 ‘신용점수 높은 주택구입자 수수료 2배’
admin | 2023.05.03 | Votes 0 | Views 404
admin2023.05.030404