NFIP: Flood Insurance

Cancellation Code #2

Contents sold, removed, or destroyed

FIRA Packet

Parts: 1) Acknowledgment of Receipt - Loss history report - claims manual - Acknowledgment Form 2) C3 Mailer - General reminder to renew policy - to renew, must speak with insurance agent/underwriting office 3) Declarations page - shows length of policy term and shows insurance you've renewed coverage

Loss history required statement

"I certify under penalty of perjury that the information given is correct" (Something like that) dated and signed

WYO Program

"Write your own" insurers write the coverage on their own "paper" but the NFIP reinsures 100% of the coverage

DSA options

1: Claims 2: General policy info 3: Agent Referral

Wait period for policy to become effective

30 days, this is done to avoid panic buying before disasters strike

Repetitive Loss

4 claims over $1,000 or 2 claims that exceed half the value of the insured property/structure

Severe Repetitive Loss

5 claims over $5,000 or 2 claims that exceed value of the insured property. (within claims period, RR 2.0 it will be previous 20 years vs span of 10 years throughout loss history of a property)

Loss History

A listing of past claims, including the date of occurrence, the line of business, the type or description of the claim, the date of the claim, the amount paid, the amount reserved, and the claim's current status.

Flood Insurance Ratings

All insurance agents use the NFIP Flood Manual for reference when rating flood insurance policies - Subsequently, rates are same regardless of insurance company/underwriting office

Declarations Page

An insurance policy information page or pages providing specific details about the insured and the subject of the insurance. Can only be provided by IA or underwriting office

Cancellation Code #1

Building sold, removed, destroyed, or physically altered and no longer meets the definition of an eligible building

Map Revision Exception

Coverage becomes effective after a one-day waiting period during the first 13 months following the revision of a flood map in the property's community.

Mortgage loan exception

Coverage becomes effective at the time of the closing when the initial purchase of flood insurance is in connection with a mortgage loan transaction.

Post-Wildfire Exception

Coverage becomes effective immediately if: a. The covered property experiences damage caused by flood that originated on federal land; b. Post-wildfire conditions on federal lands caused or worsened the flooding; and c. The insured purchased the policy either: i. Before the fire containment date; or ii. During the 60-calendar day period following the fire containment date.

Becoming an agent with the NFIP process

DSA --> Option #3

Standard Flood Insurance Policy (SFIP)

Defines coverage, limits , and exclusions for NFIP flood Insurance policies with terms and conditions unique to the NFIP - NFIP insurers can ONLY use the SFIP

NFIP Direct Servicing Agency (DSA)

FEMA program that assists in issuing for the NFIP - delivers policies and payment of claims for losses as prescribed at the discretion of FEMA - Underwrites all policies for: State Farm, Allstate, Gulf

C3 Mailers

General courtesy reminders to renew NFIP policy - is not a bill and - not saying that you have not renewed - Part of the FIRA packet

Grandfathering

Grandfathering gives policyholders the option of having their premium rate determined using either the rating criteria for that property under the current effective FIRM (new map) or the BFE and/or flood zone on a prior FIRM

Reason Code #9

Insurance no longer required by lender because property is no longer located in an SFHA because of a map revision or LOMR

Standard Flood Insurance Policy

NFIP insurers may only use the Standard Flood Insurance Policy (SFIP) established by FEMA in federal regulation to sell NFIP flood insurance policies. The SFIP defines the coverages, limitations, and exclusions for NFIP flood insurance policies and includes terms and conditions that are unique to the NFIP. T

How to know a policy is through DSA?

Policy # begins with SF, 4000, 4400, RL, SRL

How to cancel a policy

Policy holders insurance agent must submit cancellation to their respective underwriting office with applicable cancellation code

Reason Code #7

Property closing did not occur: 1. An insurer issues a policy and the anticipated transfer of the property does not take place. 2. The insured does not acquire an insurable interest in the property.

Increased Cost of Compliance (ICC)

Provides help to homeowner to bring non-compliant structures into compliance with floodplain regulations: post-flood, for structures in SFHA, included in Standard and Preferred Risk policies. This program provides additional money to the homeowner on top of a claim payment under their flood insurance policy; this is automatically included as a fee when the flood insurance policy is written. (FEMA 480) An additional claim payment made to a flood insurance policy holder to help cover the cost of bringing a substantially damaged or repetitively damaged building into compliance with the community's floodplain management ordinance.

Legacy Ratings

RR 2.0 will replace this

RCBAP

Residential Condominium Building Association Policy

The Office of the Flood Insurance Advocate (OFIA)

The OFIA can assist with complex flood insurance related inquiries. The OFIA can assist with the following: customers in a "do-loop", customers frustrated with the ICC process, SRL/PRP eligibility verification, cross-directorate issues, potential congressional cases, and potential lawsuits. Please consult a lead before drafting a ticket to the OFIA.

Community Rating System

The national flood insurance programs community rating system is a voluntary incentive program that encourages community floodplain management activities that go above and beyond standards required by the NFIP - RR 2.0 will allow for a uniform discount on policies for a community regardless of Flood zone ranging from 15%-45%

NFIP Rate tables

Used by every agent or underwriting office when rating an NFIP policy

Mortgage Portfolio Protection Program (MPPP)

a force-placed policy available only through a Write Your Own (WYO) Company. a tool to help the mortgage lending and servicing industries bring their mortgage portfolios into compliance with the flood insurance requirements of the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994

Preferred Risk Policy (PRP)

lower-cost Standard Flood Insurance Policies available for most homeowners and renters living in moderate- and low-risk areas across the country. PRPs offer the same protection at a lower rate.

Mortgagee Clause

provision in a property insurance policy that ensures that the insurance company will pay the mortgagee (bank etc.) in the event that loss or damage occurs to a mortgagor's property. The clause is an important measure that mortgagees take to protect their investment in a mortgagor's property.

Flood Insurance Reform Act (FIRA)

strengthened the NFIP with a number of reforms that included increasing the focus on lender compliance, creating mitigation insurance and developing a mitigation assistance program to further reduce the costly and devastating impacts of flood

Pre-Firm Policies

typically cheaper than Post-Firm policies

Elevation Certificate

used often for rating purposes, not required for LOMC's, but can help make a premium lower if BFE is below buildings elevation