BB&T, ASIC Force-Placed Insurance Class Action Settlement

A settlement has been reached in a class action lawsuit alleging Branch Banking & Trust Company (BB&T) imposed excessively expensive insurance policies when a borrower’s insurance policy lapsed or when the borrower failed to maintain a homeowner’s insurance policy that met its requirements.

If you were charged by BB&T between Jan. 1, 2010 and Aug. 12, 2016 for a force-placed insurance policy for your residential property, you may be entitled to benefits from this class action settlement.

The proposed BB&T force-placed insurance settlement, if approved, will resolve a class action lawsuit filed in September 2015 by two Florida homeowners who claim BB&T received kickbacks from American Security Insurance Company, Voyager Indemnity Insurance Company or Standard Guaranty Insurance Company (collectively the Assurant Defendants) by forcing borrowers into purchasing expensive insurance policies.

According to the class action lawsuit, BB&T force-placed hazard, flood, flood-gap, or wind-only insurance policies when borrowers’ insurance policies lapsed or when they failed to maintain an insurance policy that met the bank’s requirements.

Although lenders are authorized to impose a force-placed insurance policy in these instances, they may not force a borrower to purchase insurance policies that cause the rates and amount of coverage to be excessive.

The defendants deny the allegations and maintain that their actions did not violate the law. However, they have agreed to settle the force-placed insurance class action settlement to avoid the burden and expense of continued litigation.

If you would like to opt out of or object to the force-placed insurance class action settlement, you must do so no later than Dec. 12, 2016.

Who’s Eligible

Class Members of this force-placed insurance settlement include all borrowers in the United States who, between Jan. 1, 2010 and Aug. 12, 2016, were charged by BB&T under a hazard, flood, flood gap or wind-only force-placed insurance policy for their residential property, and who, during the same time period, either:

• Paid to BB&T some or all of the net premium for that force-placed insurance policy; or
• Still owe BB&T the net premium for the force-placed insurance policy.

Potential Award

The defendants have agreed to provide a cash award or credit to Class Members in the following amounts:

• 5% of the net premium you were charged by BB&T for a flood or wind force-placed insurance policy procured by ASIC during the Class Period, or charged by BB&T for a hazard force-placed insurance policy procured by ASIC on or after June 1, 2014;
• 8% of the net premium if you were charged by BB&T for a hazard force-placed insurance policy that was procured by ASIC before June 1, 2014;
• 10% of the net premium if you were charged by BB&T for a hazard, flood or wind force-placed insurance policy procured by BB&T from any insurance carrier on or before Dec. 31, 2012; or
• 5% of the net premium if you were charged by BB&T for a hazard flood or wind force-placed insurance policy on or after Jan. 1, 2013 and the policy was procured by Overby-Seawell Company during the Class Period.

The Class Period is Jan. 1, 2010 through Aug. 12, 2016.

NOTE: Class Members who made at least one full monthly mortgage payment to BB&T after they were subjected to the force-placed insurance policy are eligible for a cash payment while Class Members who still owe the charged net premium for the policy are eligible for a reduction in the amount they owe.

Proof of Purchase

N/A. Claimants must declare under the penalty of perjury that all information provided in the Claim Form is true and correct.

NOTE: Claimants may be asked to provide additional information and/or documentation, such as valid identification, a copy of a BB&T mortgage statement or a completed notary verification. Make sure you read the instructions on the Claim Form carefully before you submit your claim.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

4/10/2017

Case Name

Beber v. Branch Banking and Trust Co., Case No. 1:15-cv-23294, in the U.S. District Court for the Southern District of Florida

Final Hearing

1/10/2017

Settlement Website

www.BeberSettlementInfo.com

Claims Administrator

Beber Settlement Center
c/o Rust Consulting
P.O. Box 2542
Faribault, MN 55021-9542
1-800-889-1534

Class Counsel

Adam M. Moskowitz
KOZYAK TROPIN & THROCKMORTON PA

Aaron S. Podhurst
PODHURST ORSECK PA

Lance A. Harke
HARKE CLASBY & BUSHMAN LLP

Defense Counsel

Counsel for BB&T:
Robyn C. Quattrone
BUCKLEYSANDLER LLP

Counsel for Assurant Defendants:
Frank G. Burt
CARLTON FIELDS JORDEN BURT PA