NFIP Hiatus -
Updated 7/01/2010
APPROVED by the Senate Awaiting the President's signature later today!
TO: WYO Principal Flood Coordinators and Agents
The U.S. Senate approved an extension to the NFIP late Wednesday night, HR 5569, which was approved by the House of Representatives last week. The legislation extends the NFIP to Sept. 30 retroactively.
We expect President Obama to sign the bill today and once confirmed, NFS will begin processing all new business, renewals and endorsements. We will also update the flood website interrupter notice and post the updated official FEMA communication as soon as it is received.
The Insurance Journal is reporting:
The Associated Press reported tonight that Congress has sent President Barack Obama a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
The legislation would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The bill only allows people who already have signed contracts to finish at the later date.
The House approved the measure on Tuesday.
Thanks and as soon as we have any additional information we will update you.
As of Thursday, June 10, 2010 Congress is on a four-day break. They will not resume consideration of a bill to extend the NFIP authority until Monday, June 14, and votes will not occur until Tuesday, June 15 at the earliest. The Senate plans to consider H.R. 4213, which contains an NFIP authorization through December 31, 2010.
You are to be guided by the memorandum of May 28, 2010, Bulletin W10063.
We will continue to keep you informed of changes to the reauthorization status.
cc: Vendors, IBHS, FIPNC, Government Technical Representative
Required Routing: All Departments
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Congress failed to pass legislation required to extend the NFIP. Without this extension, the NFIP does not have statutory authority. This will generally constrain issuance of new policies, renewal offers, and increased coverage limits on existing policies. While online submission of payment via credit card will be disabled on June 1, 2010, all other processing functionality remains accessible.
Recommendations/Guidance for Possible NFIP Authority Lapse and Hiatus:
http://www.nfipiservice.com/stakeholder/pdf/bulletin/W-10063.pdf
The bulliten posted above outlines guidance to be followed during this Hiatus. Franklin, via NFS will be somewhat limited in what we will be able to actually process or issue, it is our intent to keep all web applications and service related business running for our agents except for access to the credit card payment process. This means agents and representatives will have access to complete quotes and applications, service existing business, report notices of loss and generally perform the functions they already complete, except for providing direct payment through the web as well as access to our normal customer service phone service.
From a processing perspective, NFS will continue to accept all of the business through our normal channels except credit card payments. It is our intent to stage the work so when the reauthorization does occur, we will be ready to process those items that have been received, but for which we did not yet have authorization to issue. If it appears as though the lapse might extend beyond one or two days, we will re-evaluate the specifics within our processing environment to minimize the impact to your flood business. We will keep you updated as we receive additional information. “
We will update this message as additional information is received from FEMA.
The Senate is not expected to vote on this matter until at least June 7, 2010. During the lapse your flood business will be serviced in accordance to the guidelines set by FEMA. The attached document will provide you with additional details regarding the lapse of NFIP authority.
We will update this message as additional information becomes available.
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NFIP Reauthorization - Hiatus
UPDATED 4/16/2010
Important Update to the NFIP reauthorization.
Congress Thursday voted to restore jobless benefits for hundreds of thousands of Americans who had lost them during a partisan standoff in the Senate over spending.
[The bill also reauthorizes the federal flood insurance program until the end of May and restores federal COBRA health insurance subsidies.]
The House of Representatives voted 289-112 to restore the lapsed programs and sent the measure to President Barack Obama, who signed it into law. The Senate had approved it earlier in the day after weeks of delay
[The provision reauthorizing the federal flood insurance program is effective retroactively to Feb. 28 and extends the program until May 31, 2010, the day before the new hurricane season officially starts.
We will update this message as additional information is received from FEMA.
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MEMORANDUM FOR: Write Your Own (WYO) Company Principal Coordinators and the
National Flood Insurance Program (NFIP) Servicing Agent
FROM: Dennis L. Kuhns
Division Director
Risk Insurance
Federal Insurance and Mitigation Administration
SUBJECT: NFIP Reauthorization
The NFIP’s authorization will expire – March 28, 2010 – at midnight. If Congress does not act to extend the NFIP’s authorization before the deadline, the Program will not be allowed to operate and you are to be guided by Bulletin W-09068, issued October 27, 2009, and titled “Recommendations/Guidance for Possible NFIP Authority Lapse and Hiatus” available at:
Recommendations/Guidance for Possible NFIP Authority Lapse and
Hiatus:
http://bsa.nfipstat.com/wyobull/w-09068.pdf
The bulliten posted above outlines guidance to be followed during this Hiatus. Franklin, via NFS will be somewhat limited in what we will be able to actually process or issue, it is our intent to keep all web applications and service related business running for our agents except for access to the credit card payment process. This means agents and representatives will have access to complete quotes and applications, service existing business, report notices of loss and generally perform the functions they already complete, except for providing direct payment through the web as well as access to our normal customer service phone service.
From a processing perspective, NFS will continue to accept all of the business through our normal channels except credit card payments. It is our intent to stage the work so when the reauthorization does occur, we will be ready to process those items that have been received, but for which we did not yet have authorization to issue. If it appears as though the lapse might extend beyond one or two days, we will re-evaluate the specifics within our processing environment to minimize the impact to your flood business. We will keep you updated as we receive additional information. “
We will update this message as additional information is received from FEMA.
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Yesterday, March 2, 2010, Congress passed and the President signed H.R. 4691, which extends the NFIP through March 28, 2010. The extension was not made retroactive at this time; however, Congress is considering legislation that would make it retroactive. Please reference this link for details relating to processing flood insurance policies.
I will provide updates as additional information is received from FEMA.
NFIP Reauthorization:
http://bsa.nfipstat.com/wyobull/w-10012.pdf
Recommendations/Guidance for Possible NFIP Authority Lapse and
Hiatus:
http://bsa.nfipstat.com/wyobull/w-09068.pdf
Important information delivered to Franklin from NFS (National Flood Services) our online flood insurance system administrator via email:
“We would like to provide you with an update regarding our activities surrounding the pending lapse of authority for the NFIP. While NFS will be somewhat limited in what we will be able to actually process or issue, it is our intent to keep all web applications and service related business running for you and your agents except for access to the credit card payment process. This means your agents and representatives will have access to complete quotes and applications, service existing business, report notices of loss and generally perform the functions they already complete, except for providing direct payment through the web as well as access to our normal customer service phone service.
From a processing perspective, NFS will continue to accept all of the business through our normal channels except credit card payments. It is our intent to stage the work so when the reauthorization does occur, we will be ready to process those items that have been received, but for which we did not yet have authorization to issue. If it appears as though the lapse might extend beyond one or two days, we will re-evaluate the specifics within our processing environment to minimize the impact to your flood business. We will keep you updated as we receive additional information. “
We will update this message as additional information is received from FEMA.
