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2011 NFDA Annual Conference
The National Flood Determination Association's 14th Annual Retreat & Conference is right around the corner (April 3-5, 2011) in Scottsdale, AZ at the Scottsdale Plaza Resort. The registration deadline is March 11. If you have not attended the conference in previous years, you may register at a discounted rate of $400 by the March 11. Your organization may also opt to become a member of the NFDA at last year's rates if you join by April 30, 2011.
Thank you to our sponsors for supporting our conference. There are still a few sponsorships available, if you are interested, please contact Tiffany O'Shea at tiffany_oshea@hotmail.com.
The ASFPM is offering Certified Floodplain Managers (CFMs) 8 Continuing Education Credits for attending NFDA's Conference. If you have any questions, contact Rhiannon Hanson at (800) 833-6347 ext 125 or rhiannon.hanson@lpsvcs.com. |
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2011 NFDA Officers President, Cheryl Small Corelogic Flood Services VP, Leila Taha LPS National Flood Secretary, Lisa Kittredge LandSafe Flood Treasurer, Steve Murchison CBCInnovis Directors Dennis Littlejohn Kroll Factual Data Amy Dirksen Wells Fargo |
Industry News Wall Street Journal Detroit Free Press Business Insurance The Times-Picayune |
Upcoming Events
NFDA will be presenting at the following meetings:
NFDA Annual Conference
(April 3-5)
Colorado Flood Risk Symposium
(April 14)
National Flood Conference
(May 1-4)
ASFPM Annual Conference
(May 15-20) |
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National Flood Determination Association
Mission Statement
The NFDA promotes the common interests of stakeholders involved with flood risk information through education, industry standards and a collaborative approach to legislative issues.
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Rethinking NFIP
In recent years there has been considerable attention paid to FEMA and the NFIP by Congress, the media, consumer groups, and others. While Congress is considering reforming the NFIP, FEMA is in the middle of its own reform effort initiated by Administrator Craig Fugate. Called "Rethinking the NFIP", Fugate has charged an internal group with the responsibility of reinventing the program to improve itself in response to the many criticisms received over the past several years. The group has reached out to all stakeholder groups as well as the public at large to encourage the free flow of ideas. From this outreach effort, FEMA has identified four general Straw Man Policy Options for major program reform. Obviously, the direction taken by administrators and Congress may impact the flood program dramatically, which in turn could impact our industry. You are encouraged to engage in this process and work within your companies as well as with the NFDA to ensure your voice is heard.
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| PRP Extension vs. Grandfathering
Effective this past January 1, properties newly mapped into the Special Flood Hazard Area (SFHA) on flood maps with an effective date on or after October 1, 2008 may be eligible for a Preferred Risk Policy (PRP) for two-policy terms under the new FEMA eligibility program. To be eligible, properties must meet NFIP's loss history requirements. FEMA issued memoranda on the program for WYO companies and agents and lenders. FEMA confirmed that lenders are not responsible for determining if a property is eligible for the PRP extension program. Rather, the WYO companies are responsible to make this determination and to ensure the PRP declarations page of the flood insurance policy includes the current flood zone and the flood zone used for rating (based on the prior flood map).
Properties may be eligible under the PRP eligibility program only if the property previously was not mapped in the SFHA and has been newly mapped into the SFHA on the current map. This eligibility extends for only two policy terms and then the policy would need to be rated based on standard rates (or considered for grandfathering). The coverage differs between the PRP and the standard policy issued in the case of grandfathering.
Grandfathering is utilized to reward NFIP's loyal customers or those who have built in compliance at the time of construction. As such, to determine whether a policy may be grandfathered, the flood zone from the flood map in effect at the time of construction or back to the original policy inception date is utilized. Depending on the construction or policy inception date (whichever is applicable), this may mean going back several map revisions to confirm eligibility. Also, a policy that has been grandfathered will continue to receive this discounted rate provided the policy remains in effect. Finally, the policy issued when grandfathered is not a Preferred Risk Policy, rather it is a Standard Flood Insurance Policy rated based on Zone X.
Whether applying the grandfathering rule or PRP Extension provision, insurance agents are advised to consider which rating provides the consumer with the best rate and appropriate coverage for their needs. Otherwise, however, the two are distinct from each other.
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 Legislative Update
The NFIP will once again expire on September 30, 2011 unless the Congress acts to reauthorize the program. The House Financial Services Committee is planning to develop a draft reauthorization and reform bill very soon with the hope of moving a bill through subcommittee and full committee and to the House floor by late spring or early summer. Kicking off this process, the Insurance, Housing and Community Opportunity Subcommittee has scheduled a hearing on reauthorization and reform for March 9th at 2:00.
It is unclear at this point how extensive the reform aspects will be as well as what the suggested period of reauthorization will be. The hearing will include testimony from FEMA (Administrator Fugate), the Government Accountability Office (GAO), the Association of State Floodplain Managers (ASFPM) and a representative of Write Your Own (WYO) companies. Indications are that the Senate Banking Committee is also planning to take action on reauthorization and reform, but that will likely not occur until later in the spring.
A number of bills have already been introduced dealing with the NFIP, flood maps and the treatment of levees on flood maps. H.R. 435, introduced by Rep. Candice Miller (R-MI) would, according to her press release "end the NFIP by December 31, 2013, allow states to form regional insurance compacts to spread risk, and continue to allow the Federal Emergency Management Agency (FEMA) to assist their efforts by producing high quality flood maps to allow states and the private sector to insure against flood loss." H.R. 700, introduced by Rep. Tim Walberg (R-MI) would provide for a moratorium on the issuance of flood insurance rate maps to "assist property owners in adapting to flood insurance rate map changes". H.R. 764, introduced by Rep. Rodney Alexander (R-LA) would "ensure fair treatment of existing levees and flood control structures under the national flood insurance program". All of these bills have been referred to the House Committee on Financial Services for consideration.
Issues associated with accuracy of flood maps, treatment of levees and non-levee features on flood maps and affordability of flood insurance continue to capture the attention of many Members of Congress and Senators. Twenty seven Senators signed a letter to FEMA Administrator Craig Fugate asking that FEMA discontinue its practice of showing no levee on a flood map if it cannot be accredited as providing 100 year flood protection. Two additional Senators sent related letters. Forty nine Members of the House have sent the same letter to Administrator Fugate. FEMA officials are actively working to develop a way to address the concerns of so many Congressmen and Senators.
For a full legislative report, please click on this link.
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