I.I.I. Testifies on Private Lender-Placed Insurance
This testimony, presented by Robert Hartwig, president of the Insurance Information Institute, before the Property and Casualty Insurance Committee and Market Regulation and Consumer Affairs Committee of the National Association of Insurance Commissioners, is intended to provide insights into the economic and financial necessity of lender-placed insurance (LPI) and the broad benefits that LPI brings to the product’s many stakeholders—homeowners, lenders, investors in mortgage-backed securities, insurers, regulators and taxpayers—by virtue of the critical role that it plays in protecting all parties against potentially ruinous losses arising from the damage and destruction of mortgaged property from a wide spectrum of risks. LPI is a coverage whose important role in the economy, within the insurance industry and among lenders and borrowers is as complex as it is critical. Its importance has been growing, both as a result of increased demand for LPI in the wake of the nation’s housing crisis and also because of rising vulnerability of property to damage from increased catastrophe activity. LPI also facilitates the smooth functioning of the primary and secondary residential mortgage markets and serves as a means for satisfying the requirements placed on the mortgage market by federal regulators. The testimony is accompanied by a number of charts and graphs.
Robert P. Hartwig, Ph.D., CPCU, President & Economist, testified before the Property and Casualty Insurance Committee and Market Regulation and Consumer Affairs Committee National Association of Insurance Commissioners on August 9, 2012.
The hearing focused on "Private Lender-Placed Insurance". You can download the testimony below: