The financial industry's troubles with a controversial type of insurance coverage appear to be spreading to new areas. In recent weeks New York State's Department of Financial Services has issued subpoenas to at least 18 mortgage servicers, a dozen insurers and 20 affiliated insurance agencies, according to someone familiar with the investigation.

The state officials are seeking information about force-place property insurance that banks purchase on behalf of uninsured borrowers. Force-placed insurance is a type of coverage that protects creditors in the event an uninsured borrower's property is damaged.

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