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Clear Communication of Flood Risk:
October 2016 NFIP Clear Communications Process Proves Wright Flood's Value to You!
The National Flood Insurance Program (NFIP) is implementing Section 28, Clear Communication of Risk, of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) on existing policies effective October 1, 2016 per W-16021 Addendum 4. This requires FEMA to clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full-risk rates. Ensuring clear and accurate communication of flood risk requires correct underwriting information. Let Wright Flood make this easy for you and your customers to understand. Clear Communications Phase 1- Renewals Effective on or after October 1, 2016
- All NFIP insurers must re-underwrite the following policy types:
- All policies receiving pre-FIRM subsidized premium rates; (Standard Policies and RCBAPs)
- All Standard rated B, C and X zone (pre and post FIRM)
- All Preferred Risk Policies; and
- All policies rated under the Newly Mapped rating procedure.
Wright Flood will review policies to update to the latest flood zone and base flood elevation to ensure the best rate is given to your insured. If a refund is due for the current (and/or up to 5 years for any prior terms written with Wright Flood), we will submit the needed documentation and request directly to NFIP for the refund to be generated.
If additional premium is needed, Wright Flood will wait until the renewal date on or after October 1, 2016 and explain why the policy needs to be reformed.
Wright Flood agents need only to respond to any requests from the underwriter to provide documentation of flood zone to complete the re-underwriting process.
All policyholders and agents affected by changes to their rating will be notified of any premium refunds or premium adjustments, within the last 180 days of their current expiring policy terms.
Clear Communications Phase 2 - Renewals Effective on or after October 1, 2017
- All NFIP insurers must re-underwrite all other policies Except:
- Mortgage Portfolio Protection Program (MPPP) policies,
- provisionally rated policies,
- tentatively rated policies,
- Group Flood Insurance Policies
This includes re-underwriting all EC rated policies (Standard Policies and RCBAPs)
Wright Flood need not wait until October 1, 2017 if a refund is due to the insured. By rolling your existing polices, they ensure the correct premium (validate if Grandfathering is an available option) is offered on business with effective dates on or after April 1, 2016 and not wait until 2017-- saving money for your insureds.
After the initial re-underwriting and for subsequent renewals, insurer must validate the current map information for policies covering properties located on a map panel that changed more than 180 days before the next renewal date.
Wright Flood does this now, automatically. If a map change moves a policy to a non-SFHA Wright Flood automatically offers the PRP if eligible. If the BFE and/or flood zone changes to a more hazardous area, they automatically convert to Newly Mapped program or grandfather!
Please contact your Regional Sales Manager or Flood Marketing at 866-373-5663 to discuss the upcoming NFIP Changes.
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