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#1961889 - 09/15/14 12:48 PM double insurance bill
scottb Offline
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Joined: Sep 2006
Posts: 77
The bank pays Insurance Company A in March from customers escrow, then in August of the same year receives a premium due from Insurance Company B. The bank pays both policy premiums, the customer now wants the March payment to Ins Company A put back in their escrow because it should have been cancelled, although the customer never carried through with the cancellation. Is the bank at fault?

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Escrows on Higher-Priced Mortgages
#1961898 - 09/15/14 01:25 PM Re: double insurance bill scottb
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
the customer never carried through with the cancellation

They (the customer) needs to contact Insurance Co. A for any refunds they may be due. If they did not properly cancel the policy then they may not be entitled to any refund from Co. A.

then in August of the same year receives a premium due from Insurance Company B.

If you had no record of Co. B why would you pay a premium (within 5 months of paying Co. A) without a follow-up with your borrower?

Regardless though the cancellation and any potential refund from Co. A is between them and the borrower.
Last edited by Dan Persfull; 09/15/14 01:27 PM.
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The opinions expressed are mine and they are not to be taken as legal advice.

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