Jesse,(posted 7485 days ago)As a MIG only covers the lender (even if you were told otherwise when you bought it) then it's their bad luck if their insurer goes down the pan. It won't make any difference to the borrower as the lender will still be looking to recuperate all the shortfall. The only way I think you may be able to counterclaim that the MIG was mis-sold or mis-represented would be if you have WRITTEN evidence of such, and of course you'd need to be within the 6 year time frame to counterclaim.
Mark.