Volume 8 Issue 12   March 20, 2014

Map Changes Made Easy:

 

Now revised and better than ever:

Automatic Conversion to PRP after Map Change Sends Refunds and Retains Flood Policies

 
Important flood zone map changes are coming in your area and Wright Flood helps agents address the effects map changes might have on existing clients. Wright Flood's unique Automatic Conversion to Preferred Risk Policy (PRP) after Map Change process has now been enhanced to provide even better letters to the affected insureds and a report to allow agents to know the effects on existing policies.

 

At Wright Flood, we make the process easier to automatically review policies the very next day after a map change to convert to PRP, issue refunds to your client, eliminate work for you and your staff, and now provide a report for you to track the effect of map changes on your business. (Note:  No commission is lost through this refund and policies are maintained.) 

  • Using the old NFIP map change process, you would need to cancel the existing standard policy and re-write a new PRP policy using a new zone determination and the lender notification to the borrower as proof.  This process can't start until the lender notifies your client that flood insurance is no longer required.

At Wright Flood, the Automatic Conversion to PRP after Map Change process notifies affected insureds of the effects on their policy and now generates a report that agents can use to investigate without the need for further research.  See sample letters and sample Map Revision Status comments below. 

 

The new letters sent during this process, linked below, notify the insureds of the following results: 

  •  Conversion to PRP and Refund Due to Map Revision letter is sent
    • If the policy is eligible and lower premium would result as a PRP policy, the automatic conversion to PRP is completed
    • The refund is generated and mailed to the agent for transmission to the insured.
    • The insured may still cancel if they choose, NFIP cancellation process will apply.   
  •  Optional Conversion to PRP Due to Map Revision    Letter is sent
    • When the policy becomes a low risk zone, is eligible for conversion but would not result in lower premium.
    • Agents should proactively discuss the coverage and premium options with these clients.  
The process does NOT send letters in the following cases:  
  • If the flood zone remains in the high risk flood zone after flood map revisions, there can be no conversion to PRP--no letter is sent.  Agents can determine this from the report. 
  • If the flood zone change cannot be determined from the address information, no letter sent.  A request for more information to determine the flood zone is sent to the agent, waiting up to 30 days to determine a flood zone change to low risk.  If further information is not received from the agent, the automatic conversion process is suspended.

 

The new Map Revision Report provides information to the agent so they can respond to insured's questions about map changes without need to order any further zone determinations.The new report is available on the Report section of the www.wwrightflood.com  agent portal after log in.The sample below shows the Map Revision Status section of the report indicating the result of the map change on agents' specific policies.

 

Insured Name  

Map Revision Status

Current Zone

Prior Zone

 

 

  

Gus Jones

Does not qualify as an SFHA

A

AE

 

Bret Jones

Does not qualify as an SFHA

AE

AE

Mary Jones

Does not qualify as an SFHA

AE

VE

Lew Jones

Passed Edits and is advantageous and does not have a ZD

 

AE

Sally Jones

Passed Edits and is advantageous and does not have a ZD

 

AE

Sue Jones

Policy Rewritten

X

C

Ben Jones

Passed U/W edits and is not advantageous and FPRAP letter sent

X

AE

Ann Jones

Passed Edits and is not advantageous and does not have a ZD

 

AE

Lee Jones

Does not pass Edits and does not have ZD

 

VE

Joe Jones

Does not pass U/W edits and FMRNA form sent

X

AE

 

To learn more about the Auto Conversion to PRP process read the original Flood Communications at this link: Automatic Conversion to PRP after Map Change Process.

 

Important notes:   

  • Wright Flood's Automatic Conversion to PRP after Map Changebegins the day after a map change becomes effective to analyze the best action on your behalf as well as the insured.
  • Auto Conversion process after map change does not include Residential Condo Building Association Policies-agents should review those policies independently.
  • After a map change moves a policy from high risk to low risk, Wright Flood now will automatically convert it to the Preferred Risk Policy and generate a refund for the insured if conversion generates a lower premium to the insured.
  • The insured can still choose to cancel the policy after the auto conversion to PRP takes place.  
  • NFIP cancellation process is unchanged and still requires all named insureds/agent to sign the cancellation request and to provide the documentation from the lender.  Coverage amounts after conversion to PRP will be the same or the closest coverage level available, but not lower than the original.
  • Contents coverage will be applied as noted in the Preferred Risk Policy package.
  • Conversion of policies to PRP after map change does not result in any commission charge back to the agency.
  • This automated map change process relates only to flood zone changes from high risk zones (A or V) to low risk zones (B, C or X) resulting from map changes.  BFE or datum changes, or any other zone changes that occur during map revisions, are not addressed by the automatic conversion to PRP process.
  • This process is currently in effect and is ongoing until further notice. 

To reach FloodSmart.gov Map Update Schedule, please click here  Please select your state and county then scroll down to read any map updates scheduled for your municipality.. 

 
If you need more information about this feature, or help to prepare for map changes in your community, please contact your RSM and/or Wright Flood Marketing 866-373-5663 or at floodmarketing@weareflood.com.

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