Write Your Own (WYO) Company Principal Coordinators,
WYO Vendors, and the National Flood Insurance Program (NFIP)
Direct Servicing Agent
FROM: Roy E. Wright
Deputy Associate Administrator for Insurance and Mitigation
Federal Insurance and Mitigation Administration
SUBJECT: Addendum 4 to April 1, 2016, Program Changes -
Revised Underwriting Procedures for
HFIAA Section 28, Clear Communication of Risk
Bulletin W-15046 described the initial implementation of Section 28, Clear Communication of Risk, of the Homeowner Flood Insurance Affordability Act of 2014. Section 28 requires FEMA to clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full-risk rates. Ensuring clear and accurate communication of flood risk requires correct underwriting information. This bulletin describes how FEMA will rate policies using correct information. The full bulletin includes specific procedures for insurers to follow as part of this effort.
FEMA initially proposed that NFIP insurers report current flood zone and current Flood Insurance Rate Map information, including Base Flood Elevation, if applicable, for all new business policies effective on or after April 1, 2016, and for all renewals effective on or after Oct. 1, 2016. After further consultation with NFIP insurers, and out of concerns for our customers, FEMA determined that a phased approach would best implement these requirements.