The National Flood Insurance Program (NFIP) was up forrenewal in September, and renewal was pushed back to Dec. 8.

Then it was pushed back to Dec. 22, which is Friday. It looks asthough nothing will happen to extend it, so what happens tocoverage?

The Federal Emergency Management Association (FEMA) hasissued guidance so companies know how to proceed. Theplan will have a lapse in authority, which means the write-your-own(WYO) companies may not issue policies for new or renewalbusiness, or increase or add coverage to existing policies.

New coverage

For requests to increase or begin coverage that are on or beforethe last day of effective authorization, if the carrier receivesthe application and payment within the lapse period and within 10days of the date of request, the policy or coverage change may beissued and effective on the requested date in accordance withstandard rules. For example, the authorization lapses Dec. 22; anapplication is effective Dec. 21, and the carrier receives theapplication and the premium payment on Dec. 28.

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Christine G. Barlow, CPCU

Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.