FORCED PLACED INSURANCE

forced placed insurance: translation

Insurance purchased by a creditor covering personal or real property owned by debtor. In some cases, forced placed flood insurance is required by law. In other cases, creditors are granted the right to force place insurance by provisions in loan agreements, security agreements, and/or mortgages. Forced placed insurance is almost exclusively purchased when the debtor refuses to obtain or renew required insurance coverage. American Banker Glossary