JPMorgan and a major insurer have agreed to a $300m settlement to resolve accusations that they forced homeowners into over-priced property insurance and entered into kickback arrangements that inflated the policies' prices.
Reuters reports that the lawsuit being settled - one of several targeting large U.S. banks over force-placed insurance - said that the improper practices unjustly enriched JPMorgan and insurer Assurant by more than $1bn since 2008.
JPMorgan and Assurant didn't admit any wrongdoing as part of the settlement, which was in documents filed late on Friday in a Miami federal court.
'The settlement will have no expected impact on our financials', JPMorgan spokeswoman Amy Bonitatibus said in a statement. She said the bank earlier this year discontinued a reinsurance agreement with Assurant.
The settlement calls for JPMorgan to stop accepting commissions for force-placed insurance.
The JPMorgan settlement is the first nationally to result from several cases against banks pending in Miami federal court that involve force-placed insurance.
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