Force-placed insurance (Regulation X)

What this document is

12 C.F.R. s. 1024.37 - Force-placed insurance (Regulation X) is a regulation published by Consumer Financial Protection Bureau; Office of the Federal Register / National Archives (eCFR). It is one of the documents that insurance license exam questions are written from, including property & casualty, personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 12 C.F.R. § 1024.37(a) (Definition of force-placed insurance)

  “(a) Definition of force-placed insurance - (1) In general. For the purposes of this section, the term “force-placed insurance” means hazard insurance obtained by a servicer on behalf of the owner or assignee of a mortgage loan that insures the property securing such loan. (2) Types of insurance not...”

• 12 C.F.R. § 1024.37(g) (Cancellation of force-placed insurance)

  “(g) Cancellation of force-placed insurance. Within 15 days of receiving, from the borrower or otherwise, evidence demonstrating that the borrower has had in place hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance, a servicer must: (1) Cancel...”

• 12 C.F.R. § 1024.37(d)(1) (Reminder notice)

  “The notice required by paragraph (c)(1)(ii) of this section shall be delivered to the borrower or placed in the mail at least 15 days before a servicer assesses on a borrower a premium charge or fee related to force-placed insurance. A servicer may not deliver to a borrower or place in the mail the...”

• 12 C.F.R. § 1024.37(c)(1)(i) (Requirements before charging borrower)

  “(1) In general. Before a servicer assesses on a borrower any premium charge or fee related to force-placed insurance, the servicer must: (i) Deliver to a borrower or place in the mail a written notice containing the information required by paragraph (c)(2) of this section at least 45 days before a...”

• 12 C.F.R. § 1024.37(e)(5) (Frequency of renewal notices)

  “(5) Frequency of renewal notices. Before each anniversary of a servicer purchasing force-placed insurance on a borrower's property, the servicer shall deliver to the borrower or place in the mail the written notice required by paragraph (e)(1) of this section. A servicer is not required to provide...”

• 12 C.F.R. § 1024.37(e)(1)(iii) (Charging a borrower before end of notice period)

  “(iii) Charging a borrower before end of notice period. Notwithstanding paragraphs (e)(1)(i) and (ii) of this section, if not prohibited by State or other applicable law, if a servicer has renewed or replaced existing force-placed insurance and receives evidence demonstrating that the borrower...”

• 12 C.F.R. § 1024.37(f) (Mailing the notices)

  “(f) Mailing the notices. If a servicer mails a written notice required by paragraphs (c)(1)(i), (c)(1)(ii), or (e)(1) of this section, the servicer must use a class of mail not less than first-class mail.”

• 12 C.F.R. § 1024.37(h)(2) (Bona fide and reasonable charge)

  “(2) Bona fide and reasonable charge. A bona fide and reasonable charge is a charge for a service actually performed that bears a reasonable relationship to the servicer's cost of providing the service, and is not otherwise prohibited by applicable law.”

• 12 C.F.R. § 1024.37(b) (Basis for charging borrower)

  “(b) Basis for charging borrower for force-placed insurance. A servicer may not assess on a borrower a premium charge or fee related to force-placed insurance unless the servicer has a reasonable basis to believe that the borrower has failed to comply with the mortgage loan contract's requirement to...”

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Questions about this source

More Federal sources sources

• Coverage for Pre-existing Conditions (Affordable Care Act) - HealthCare.govFederal guidance
• 20 C.F.R. § 404.1520 -- Evaluation of Disability in General (the five-step sequential evaluation process)Regulation
• Parts of Medicare (Medicare & You / medicare.gov)Federal guidance
• Continuation of Health Coverage (COBRA) - U.S. Department of LaborReference
• Portability of Health Coverage (HIPAA) - U.S. Department of LaborReference
• Fair Credit Reporting Act - 15 U.S.C. § 1681a (Definitions)State statute
• 15 U.S.C. s. 1681b: FCRA permissible purposes of consumer reportsState statute
• 15 U.S.C. s. 1681c: FCRA requirements relating to obsolete information in consumer reportsState statute