12 CFR 1024.37 - Force-placed insurance (full regulatory text)

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These are the only claims this record is used to carry anywhere in the library.

• Within 15 days of receiving evidence that a borrower has hazard insurance coverage that complies with the loan contract's requirements, a servicer must cancel the force-placed insurance it purchased.

  claim cfr-1024-37-lii#c1

• The servicer must refund to the borrower all force-placed insurance premium charges and related fees paid for any period of overlapping insurance coverage.

  claim cfr-1024-37-lii#c2

• The servicer must also remove from the borrower's account all force-placed insurance charges and related fees for any period of overlapping coverage.

  claim cfr-1024-37-lii#c3

• A bona fide and reasonable charge is a charge for a service actually performed that bears a reasonable relationship to the servicer's cost of providing the service and is not otherwise prohibited by applicable law.

  claim cfr-1024-37-lii#c4

• The bona fide and reasonable requirement does not reach charges subject to State regulation as the business of insurance or charges authorized by the Flood Disaster Protection Act of 1973.

  claim cfr-1024-37-lii#c5

• The section's definition of force-placed insurance excludes hazard insurance required by the Flood Disaster Protection Act of 1973, servicer renewal of borrower-obtained hazard insurance as described in 12 CFR 1024.17(k)(1), (2), or (5), and servicer renewal of borrower-obtained hazard insurance at the servicer's discretion if the borrower agrees.

  claim cfr-1024-37-lii#c6

Each claim above has its own address. Link to a single claim with/sources/cfr-1024-37-lii#c1, and read the same list with its identifiers, checksums and dates at cfr-1024-37-lii.json. A checksum lets you tell whether a claim you cited still says what it said.

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Reviewer notes

Fetched on 2026-08-31 to confirm the 15-day cancellation, the refund and account-removal duty, and the bona fide and reasonable definition with its two carve-outs, which the CFPB rendering did not surface as cleanly. The content is primary law; the publisher is a law-school republisher of the official text, not the issuing agency.