We attended the webinar on Private Flood Insurance and had a couple of questions. 1.In the examples provided in the webinar we noticed there isn’t a flood zone provided on the private insurance declarations page, is that not required? The NFIP discusses zones, but the private flood insurance does not have on the declarations page.
2. We have been accepting Private Flood Insurance policies for a few months already. If a company is not licensed with the Insurance Commission in the state where the property is located, we cannot refuse to accept the Private Flood Policy until after July 1, 2019-correct?
1) You are correct that the sample dec sheet for the private flood policy does not include the flood zone. However, there is a supplemental schedule attached to that particular policy’s dec sheet (not shown in the manual) that shows the property information and applicable flood zone. Many private policies will show the flood zone on the first page of the dec sheet. You will want to make sure the flood zone is listed.
2) You can certainly decline to accept a private flood policy if the insurer is not licensed, admitted, approved, etc. to engage in the business of insurance in the applicable state. There is no requirement that you accept a private policy until July 1, 2019 and after that time a licensed or approved insurer is a requirement of a private policy both for the mandatory acceptance criteria and the discretionary acceptance criteria.
See page 24 and 29 of the manual for the criteria related to the license or approval by state insurance regulators.