Assurant (AIZ), the nation's largest force-placed insurer has agreed to New York State's demand that it stop paying bank partners for their business. This is likely more painful for the banks than it is for Assurant.

The insurer's concession to regulators appears likely either to precede similar settlements with rival force-placed insurers or a regulation imposing a similar prohibition statewide. It may also mark a major turn in the multi-year fight over whether banks and insurers have wrongfully colluded to inflate the price of specialty property coverage.

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