The Federal Emergency Management Agency last week published guidance for Write Your Own private insurance companies on how to how to handle a potential lapse in National Flood Insurance Program authority. Without congressional reauthorization, the program is set to expire on Dec. 22.
The guidance includes information on new policies and renewals during a lapse period. In addition, the guidance includes frequently asked questions and a sample letter that may be used to help Write Your Own companies communicate the effects of a lapse to a prospective policyholder. In the event of an actual lapse in NFIP authority, the American Bankers Association is prepared to engage with member banks on how to ensure the continuation of business operations. For more information, contact ABA’s Diana Banks.