ALBANY, N.Y. (AP) — A federal judge has approved settlement of a class-action lawsuit against JPMorgan Chase for its force-placed insurance practices, an agreement that could pay more than $300 million to about 750,000 mortgage borrowers.
The national settlement prohibits the bank for six years from commissions, kickbacks or reinsurance from the hazard insurance it obtains when a homeowner's policy lapses.
Under Judge Federico Moreno's order Friday in Miami, class members will have to file claim forms to recover 12.5 percent of the net premiums they were charged between Jan. 1, 2008 and Oct. 4, 2013.
Moreno also barred JPMorgan Chase and Assurant and its insurance subsidiaries "from inflating premiums" for six years.
Assurant says it hasn't acknowledged wrongdoing but it's in the company's best interests to settle.
New York-based JPMorgan Chase didn't initially reply to requests for comment.
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