Flood Insurance News- "Get in the flow, Be in the know"
April Showers, Bulletins Abound
Throughout March and into the first part of April, FEMA has issued a series of bulletins announcing rating, underwriting and processing changes. Here's a quick glimpse into each along with a link to more reading material.
W-16018 - Deductible Disclosure and Cancellation Receipt Date Procedures - in the November 2015 edition of the NFIP Flood Insurance Manual (FIM), FEMA indicated that when a mortgagee was listed on an NFIP flood policy, the mortgagee's written consent had to be secured before requesting a deductible higher than the applicable minimum deductible. That requirement has now been eliminated retroactive to November 1, 2015, since it is too burdensome to policyholders. Read more
The same bulletin revises how cancellation effective dates that are based on the cancellation receipt date are determined. The November 2015 edition of the FIM stated that for the purpose of determining the receipt date of the cancellation/nullification request, the receipt date shall be that date on which the cancellation/nullification request, along with the complete supporting documentation for that request, is received by the insurer. That cancellation receipt date determination has now been revised. Read more
W-16020 - April 2016 Revisions to the NFIP Flood Insurance Manual Posted Online - on March 29th an updated version to the NFIP Flood Insurance Manual was posted at: http://www.fema.gov/flood-insurance-manual.
W-16022 - October 1, 2016 Program Changes - FEMA provides a look ahead to program changes coming this autumn. FEMA is implementing a number of changes to refund procedures that will better benefit policyholders. Some of the changes outlined are retroactive to a November 1, 2015, receipt date, but the effective date cannot be earlier than April 1, 2016.
Because the April 1, 2016, revisions to the FIM were already being finalized at the time of the preparation of this bulletin, the provisions of this bulletin supersede any conflicting guidance in the November 1, 2015, or April 1, 2016, FIM. Read more
W-16024 - Implementation of Section 100214 of BW-12 - Payment of Condominium Claims - Section 100214 of Biggert-Waters prohibits FEMA from denying payment to condominium unit owners who purchased unit-owner building coverage under the Dwelling Form policy for building claims that cannot be paid by the Residential Condominium Building Association Policy (RCBAP). The RCBAP's coinsurance penalty triggers when the building insurance coverage purchased by the condominium association is less than 80 percent of the full replacement cost of the RCBAP insured condominium building, or less than the maximum amount of insurance available. Read more
For More Information
For additional information on flood insurance training for insurance agents, go to: www.h2opartnersusa.com.
Lenders can locate information on flood compliance training at: www.h2opartnersusa.com.
