Coruscation

QBE's sale of unregulated insurance in Florida is something of an oddity. State laws generally give preferential status to admitted carriers with regulated rates, and Florida statutes mandate that surplus coverage should only be purchased when coverage is "not procurable from authorized insurers." Insurance agents must document multiple "diligent efforts" to find a regulated carrier before venturing into the surplus-line market.

To someone outside the Florida industry, finding an admitted force-placed insurer wouldn't seem like a problem. Two large insurers, Assurant Specialty Property and Balboa Insurance Co., sell such coverage. Balboa, formerly owned by Bank of America Corp., is in the process of being purchased by QBE, a unit of QBE Insurance Group Ltd. of Australia, and declined to comment. But while Assurant is the largest operator in the Florida market, agents doing business with QBE aren't seeking Assurant out before placing new coverage by mortgage companies, the company said.

New Questions about Banks' Force-Placed Insurance Deals

QBE, carrier used by Wells Fargo and SunTrust, avoids oversight through 'surplus lines' structure
American Banker | Tuesday, April 12, 2011

By Jeff Horwitz