Policy Issuance 2-00
Subject: Exceptions for Renewals of Target Repetitive Loss Properties
Background: As part of FEMA's Repetitive Loss Strategy, the policies for specific "Target Repetitive Loss Properties", are being transferred from WYO companies into the Special Direct Facility (SDF) being operated by the NFIP's Servicing Agent. Our procedures call for the Bureau and Statistical Contractor to request additional data from WYO companies, and when it is received, transmit it to the SDF. Only then can a Renewal Premium Notice be sent to the insured. It is possible that during the first year of operation for the SDF, there will be situations in which problems caused by the information transfer requirements result in delayed billings to insureds. The SDF policyholders should receive the same amount of time in which to pay their renewal bills as all other policyholders.
Policy Decision: In those situations where, due to delays in information transfer, the SDF cannot send a Renewal Premium Notice to a policyholder at least 45 days prior to policy expiration, I am waiving the Policy Renewal provision of the Standard Flood Insurance Policy (SFIP) in accordance with the authority provided in the Amendments, Waivers, and Assignment provision of the SFIP. Policyholders are to be given a total of 75 days (the normal 45 days plus the 30-day grace period) from the date of mailing of the Renewal Premium Notice to pay the premium before being subject to a lapse in coverage. Additionally, the business rule of requiring a new application for those policies where renewal premiums are received 90 days or more after expiration is rescinded in this situation. This waiver and this rescission of the business rule are effective for policies with expiration dates from August 1, 2000 to August 1, 2001.
Jo Ann Howard
Administrator
Mitigation Division
Last Modified: Thursday, 25-May-2006 15:33:35 EDT