If a consumer sends evidence of hazard insurance compliance, what must a servicer do within 15 days?

When a consumer provides evidence of hazard insurance compliance, the servicer is required to take specific actions to ensure that the consumer's insurance is recognized and accounted for. The correct action within 15 days is to cancel any force-placed insurance and refund premiums for any overlapping period. This requirement is rooted in consumer protection regulations that aim to prevent unnecessary charges and ensure that consumers are not paying for duplicate coverage.

When consumers secure their own hazard insurance, any existing force-placed insurance should be canceled since it is typically more expensive and redundant. Refunds for any premiums paid during the overlapping period ensure that consumers are treated fairly and do not suffer financial loss due to this overlap. This practice reinforces the servicer's obligation to be transparent and fair in their dealings with consumers regarding insurance coverage.

The other options do not align with the regulatory requirements. Simply contacting the insurance agent may be prudent but does not fulfill the obligation of addressing the force-placed insurance. Continuing force-placed insurance at the servicer's cost does not protect the consumer from unnecessary charges. Sending an acknowledgment notice, while courteous, does not encompass the full scope of what is mandated once compliance evidence is provided. Therefore, cancelling the force-placed insurance and refunding premiums is the appropriate and required response