Force Placed Insurance is coverage obtained by the lien holder to cover their interest in the financed property when the buyer fails to meet the required coverage conditions of the finance note. No coverage is provided to the buyer at all, only the lien holder.
Basically if the finance company has obtained force placed insurance coverage then the buyer is already in default on the terms of the finance contract.
The cost of the coverage is added to your bill or finance note without benefit of coverage to the buyer.
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