QBE announces settlement agreement
NEW YORK, April 18, 2013
NEW YORK, April 18, 2013 /PRNewswire/ --QBE North America today announced
that it has entered into a settlement agreement with the New York Department
of Financial Services (NYDFS)resolving the Department's claims related to its
industry-wide investigation oflender-placed insurance (LPI).Under the
agreement QBE will make a settlement payment of $4 million and refund partial
premiums to New York homeowners who can show that they defaulted on their
mortgage loan or were foreclosed upon as a result of the required payment of
an LPI premium. Balboa also entered into a settlement agreement which resolves
the Department's claims against the Balboa insurance group, which entered into
a loss portfolio transfer with QBE in 2011.
QBE North America CEO David Duclos said, "QBE is pleased to have resolved this
matter. We value our regulatory relations in the U.S. and remain very engaged
and cooperative with all our 50 U.S. state regulators and federal agencies
that regulate mortgages.As a relatively new entrant to the U.S. LPI market,
we are keenly interested in determining its future shape and course.
"With this settlement completed," Duclos said, "our management team can now
return its full attention to growing our overall U.S. insurance business."
QBE North America Chief Legal Officer Pete Maloney said, "QBE elected to
settle the matter to avoid protracted litigation and the need for continuing
management attention on this long-running regulatory proceeding."
The agreement is neither an admission of liability nor a judicial finding. As
required by law, QBE filed its LPI premium rates in New York and had them
approved by the NYDFS. QBE has paid commissions as allowed by New York law.
LPI is a product unique to the U.S. and the agreement relates to LPI alone and
not other products of QBE North America.
QBE North America is part of QBE Insurance Group Limited, one of the top 20
insurers and reinsurers worldwide. QBE Insurance Group's 2011 results can also
be found at www.qbeamericas.com. Headquartered in Sydney, Australia, QBE
operates out of 52 countries around the globe, with a presence in every key
insurance market. The North America operation, headquartered in New York,
conducts business through various property and casualty insurance
subsidiaries. QBE insurance companies are rated "A" (Excellent) by A.M. Best
and "A+" by Standard & Poor's.
Contact: Frank Centore, Marketing & Communications, 212.894.7717,
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