Seterus Force-Placed Insurance Class Action Settlement

A settlement has been reached in a class action lawsuit alleging Seterus Inc. received an unauthorized benefit in connection with lender-placed insurance (also called force-placed insurance) placed on borrowers’ property.

If you were charged by Seterus for a lender-placed insurance policy for your residential property between Aug. 19, 2010 and Nov. 4, 2016, and you paid Seterus all or a portion of the premium for that policy, you may be entitled to a cash payment or account credit from the force-placed insurance class action settlement.

The term “force-placed insurance” refers to hazard, wind or flood insurance that is placed by a lender on a borrower’s property if the borrower’s insurance policy lapses or if the borrower fails to maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. In this case, Seterus pays the premiums to the insurance company that writes the force-placed insurance policy. Seterus then charges the borrower for the premiums.

The insurers listed as defendants in the Seterus force-placed insurance class action lawsuit include QBE Specialty Insurance Company, QBE FIRST Insurance Agency Inc. n/k/a NGLS Insurance Services Inc., Praetorian Insurance Company, or QBE Insurance Corporation (QBE Defendants).

The practice of force-placed insurance is not illegal, and is sometimes necessary to protect the lender and the borrower in case the property suffers hazard, wind or flood damage. However, lenders must not impose force-placed insurance policies in such a manner that they receive an unauthorized benefit.

According to the force-placed insurance class action lawsuit, the manner in which Seterus placed insurance allowed Seterus to receive an unauthorized benefit through “kickbacks” in the form of commissions from the insurers. The plaintiffs also claim that the force-placed insurance policies were placed in such a way that the rates and amount of coverage was excessive.

The defendants deny the allegations and maintain their force-placed insurance practices were fully authorized by the applicable laws. They also deny that Seterus received any unauthorized benefits or kickbacks in connection with the force-placed insurance policies.

Although the defendants deny any wrongdoing, they agreed to settle the Seterus force-placed insurance class action lawsuit to avoid the cost and risk of trial.

Who’s Eligible

Class Members of the Seterus force-placed insurance settlement include all borrowers in the United States who, between Aug. 19, 2010 and Nov. 4, 2016, were charged by Seterus under a hazard, wind or flood lender-placed insurance policy issued or procured by any of the QBE defendants, and who either paid Seterus the net premium for the policy or who did not pay and still owe Seterus the net premium for the policy.

Potential Award

Varies. The amount each Class Member will receive depends on the type of force-placed insurance policy and when it was placed.

• QBE Specialty Insurance Company: If you were charged for a force-placed insurance policy by QBE Specialty Insurance Company during the Class Period, you will receive 10.5 percent of the net premium.

• Praetorian Insurance Company or QBE Insurance Corporation: If you were charged for a force-placed insurance policy by Praetorian Insurance Company or QBE Insurance Corporation during the Class Period, you will receive six percent of the net premium.

Compensation will be distributed in the form of an account credit for those who still owe the net premium for the policy, or a check for those who made at least one full monthly mortgage payment after an escrow account was adjusted or created due to the placement of the force-placed insurance policy.

Proof of Purchase

N/A

Class Members may be asked to provide proof of identity. They must also declare under the penalty of perjury that all information provided in the Claim Form is true and correct. Please follow the directions on the Claim Form carefully to avoid having your claim denied.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

To be determined. According to the Seterus class action settlement website, the Claim Form deadline will be “60 days after the Final Settlement Date and no earlier than July 16, 2017.”

Case Name

Edwards, et al. v. Seterus Inc., et al., Case No. 1:15-cv-23107-DPG, in the U.S. District Court for the Southern District of Florida

Final Hearing

4/14/2017

UPDATE: The Seterus Force-Placed Insurance Class Action Settlement was granted final approval on April 14, 2017.  According to the settlement website, eligible claimants will receive your cash award or credit within 180 days after the Settlement becomes Final and effective.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.EdwardsSettlementInfo.com

Claims Administrator

Edwards v. Seterus LPI Settlement
Epiq Systems Inc.
P.O. Box 2995
Portland, OR 9720802995
1-844-418-6623
info@EdwardsSettlementInfo.com

Class Counsel

Adam M. Moskowitz
KOZYAK TROPIN & THROCKMORTON PA

Aaron S. Podhurst
PODHURST ORSECK PA

Lance A. Harke
HARKE CLASBY & BUSHMAN LLP

Defense Counsel

Representing Seterus:
Allen Paige Pegg
HOGAN LOVELLS US LLP

Representing QBE Defendants:
Robyn Quattrone
BuckleySandler LLP