On Friday, FEMA released a memorandum outlining procedures if there is a lapse in authority for the NFIP.
The NFIP is currently reauthorized through Friday, Dec. 22, which is when funding for the government is also scheduled to run out. Congress is working on a short-term funding bill that would keep the government funded and the NFIP operating through mid-January.
The guidance is similar to guidance released last time the program lapsed in 2012. The Big “I” has been working with FEMA since August to update the 2012 guidance.
The guidance states that during a lapse in authority, a WYO company may not issue policies for new business or requests to increase or add coverage that are initiated during the lapse. In addition, WYO companies cannot issue renewal notices during the lapse. However, claims will continue to be paid on all insurance contracts in force prior to the lapse.
Insurance agents and brokers who sell and service NFIP policies should get in touch with the WYO companies they work with if they have questions concerning what to do in the event of a lapse in NFIP authority.
The Big “I” expects Congress to pass short-term funding measures this week, but will continue to provide information to members through News & Views and otherwise on the status of government funding and the NFIP.
Jennifer Webb is Big “I” federal government affairs counsel.