FEMA recently issued two bulletins in regards to the National Flood Insurance Program (NFIP). If you write flood insurance, please review them to stay in the know.
Bulletin W-17062 addresses the fall-out from April 1, 2015 Program Changes, which required policies to be re-underwritten to ensure the correct flood zone. At issue, according to FEMA, is that:
Some agents or policyholders are using information from policy Declarations pages that contain incorrect information because they were issued prior to the policy being re-underwritten. The use of these incorrect Declarations pages allows policyholders to obtain new policies from a new insurer using incorrect grandfathering information for rating, which thereby results in a policy misrating.
The memo goes on to warn insurers that the Standard Flood Insurance Policy must include accurate information to ensure payment in the event of a loss.
UPCOMING PROGRAM CHANGES
FEMA also announced upcoming changes to the NFIP, including April 1, 2018 Program Changes and Jan. 1, 2019 premium changes for Preferred Risk Policies and Newly Mapped procedure policies.