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California Orders Rate Cut of over 30% for Assurant's Force-Placed Business

California has imposed a higher-than-expected rate cut on Assurants force-placed line of insurance business in the state, creating concern by an analyst that other states might follow suit and the profitability of the line nationwide may be substantially reduced.

By Arthur D. Postal | Updated on October 24, 2012

California has imposed a higher-than-expected rate cut on Assurant’s force-placed line of insurance business in the state, creating concern by an analyst that other states might follow suit and the profitability of the line nationwide may be substantially reduced.

In an announcement Monday, California Insurance Commissioner Dave Jones announced that Assurant had agreed to a 30.5 percent rate reduction, for “lender-placed” or force-placed homeowners-insurance coverage offered by American Security Insurance Company, an Assurant Inc.-owned company.

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