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Market for Coverage of Lapsed Borrowers to Shrink

The market for insurance that homeowners are required to buy when they lapse on existing policies will contract, said Robert Hartwig, president of the Insurance Information Institute.

“LPI premiums have peaked,” Hartwig said today at a hearing in Atlanta held by the National Association of Insurance Commissioners into so-called lender-placed insurance. “The LPI market will shrink, probably dramatically.”

Assurant Inc. and QBE Insurance Group Ltd. are among companies that provide the coverage.

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