New York regulators have proposed new rules governing insurance obtained by lenders to protect their investments in properties with troubled mortgages.

The Department of Financial Services says the rules are for the industry going forward to protect homeowners from abuse while eliminating kickbacks. It reached agreements this year with Assurant, QBE and other insurers to revise their practices.

The department in 2011 investigated the practice where banks or mortgage servicers obtained insurance policies when homeowners failed to maintain required coverage, often because of financial troubles. The new policies often had much higher premiums ultimately charged to homeowners.

The proposed rules would prohibit insurers from issuing policies on properties mortgaged by any affiliated company and would prohibit insurers paying commissions to mortgage lenders or servicers or anyone affiliated with them.