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If you find yourself in foreclosure, understand that you may not be covered by homeowners insurance at all….


(That’s what happens when the banking and insurance industry owns government)

TALLAHASSEE, Fla. – The Office of Insurance Regulation today approved the resubmitted rate filing by Praetorian Insurance Company (Praetorian) for its property collateral protection program, also known as “lender-placed” or “force-placed insurance”. This form of insurance is imposed by lenders on individuals who fail to secure homeowners insurance for their property as required by the mortgage or other lending document.

Praetorian is an admitted insurer in Florida and amended its certificate of authority to include the credit line of business (lender-placed coverage is reported under this line of business for annual statement purposes) in May 2012. QBE Specialty Insurance Company, a surplus lines insurer, and its affiliated admitted company, Balboa Insurance Company, are merging each of their lender-placed insurance programs into Praetorian.

Praetorian submitted this second rate filing to the Office on December 11, 2012 reflecting an overall statewide proposed rate decrease of 18.8 percent. The filing contained satisfactory documentation and actuarial justification addressing the previous rate filing concerns as noted by the Office. Those included the failure to support the selected loss trend, expenses relative to services rendered, excessive rates and reinsurance issues. The company provided extensive expense support and information on services rendered to policyholders, specifically noting that 3.2 million letters were issued, 1.6 million phone calls were handled and $36.1 million was expended to support technology and new client needs.

After a careful review and evaluation of the second rate filing, the Office approved the average statewide decrease of 18.8% based upon the stipulation that another rate filing will be submitted to the Office by February 1, 2014 with additional financial information.

This rate filing impacts 126,336 policies representing a premium volume of $521 million and results in a decrease to consumers of $98 million.

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