Homeowner Owes to Pay Lender Placed Insurance Premium to Mortgagee

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Robert Lewis (“Lewis”) sued his mortgage loan servicer, M&T Bank (“M&T”), in connection with flood insurance coverage purchased by M&T on his behalf. Lewis also sued three subsidiaries of the insurance company Assurant, Inc. (collectively, the “Assurant”). Lewis alleges that, in “force-placing” flood insurance on his mortgaged property, M&T and Assurant violated RICO). In Robert R. Lewis v. M&T Bank Corp., Et Al., Civil Case No. 3:20-CV-00552 (JCH), USDC (3/ 19/21) the defendants motions to dismiss the Complaint.

ZALMA OPINION

Insurers admitted to do business in a state, like Connecticut, must submit their rates to the Department of Insurance for approval. Once approved no court – due to the filed rate doctrine – has the right or ability to contest the rates charged. Lewis sought to have free flood insurance and tried – by litigation – to have a court sustain his breach as proper. His attempt failed since the bank only sought to recover the premium paid. They warned him twice and twice he ignored the warning.