Assurant 2014 Annual Report Download - page 151

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ASSURANT, INC. – 2014 Form 10-K F-63
25 Commitments and Contingencies
reached an agreement with the New York Department of
Financial Services (the “NYDFS”) regarding the Company’s
lender-placed insurance business in the State of New York.
Under the terms of the agreement, and without admitting
or denying any wrongdoing, ASIC made a $14,000 settlement
payment to the NYDFS. In addition, among other things,
ASIC and ABIC agreed to modify certain business practices
in accordance with requirements that apply to all New York-
licensed lender-placed insurers of properties in the state, and
fi led our new lender-placed program and new rates in New
York which were approved in August 2014. The Company also
continues to respond to and cooperate with other regulators
regarding its lender-placed insurance business.
In addition, as previously disclosed, the Company is involved
in a variety of litigation relating to its current and past
business operations and may from time to time become
involved in other such actions. In particular, the Company
is a defendant in class actions in a number of jurisdictions
regarding its lender-placed insurance programs. These cases
allege a variety of claims under a number of legal theories.
The plaintiffs seek premium refunds and other relief. The
Company continues to defend itself vigorously in these class
actions. The Company has accrued an estimated loss for
this litigation.
We have participated and may participate in settlements on
terms that we consider reasonable given the strength of our
defenses. However, the possible loss or range of loss resulting
from such litigation and regulatory proceedings, if any, in
excess of the amounts accrued is inherently unpredictable
and involves signifi cant uncertainty. No estimate can be
made of any possible loss or range of loss in excess of the
above-mentioned accrual.
In July 2007 an Assurant subsidiary acquired Swansure Group,
a privately held U.K. company, which owned D&D Homecare
Limited (“D&D”). D&D was a packager of mortgages and
certain insurance products, including Payment Protection
Insurance (“PPI”) policies that, for a period of time, were
underwritten by an Assurant subsidiary and sold by various
alleged agents, including Carrington Carr Home Finance
Limited (“CCHFL”), which is now in administration. In early
2014, as a result of consumer complaints alleging that CCHFL
missold certain D&D-packaged PPI policies between August 8,
2003 and November 1, 2004, the U.K. Financial Ombudsman
Service (“FOS”) requested that an Assurant subsidiary, Assurant
Intermediary Limited, review complaints relating to CCHFL’s
sale of such PPI policies. Assurant is cooperating with the FOS.
The possible loss or range of loss resulting from such litigation
and regulatory proceedings, if any, in excess of the amounts
accrued is inherently unpredictable and involves signifi cant
uncertainty. No estimate can be made of any possible loss
or range of loss in excess of the above-mentioned accrual.
Although the Company cannot predict the outcome of
any action, it is possible that such outcome could have
a material adverse effect on the Company’s consolidated
results of operations or cash fl ows for an individual reporting
period. However, based on currently available information,
management does not believe that the pending matters are
likely to have a material adverse effect, individually or in
the aggregate, on the Company’s fi nancial condition.