Agents Urged to Tell Insureds of Flood Program Lapse

March 1, 2010

  • March 1, 2010 at 2:25 am
    anon the mouse says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    I the premium has been paid for a calendar period, and the policy has 9 months remaining today, a covered event happens 3 months from now and Congress has not acted on this issue, what will happen? Are the companies who underwrote the policy based on Government rulings going to be required to pay? If they don’t pay, is it Bunning’s or Reid’s E&O that takes the hit. Oh, I guess we can just lay this up the the great equalizer ‘Buck’ as another of his unintended socialistic guffaws.

  • March 1, 2010 at 3:12 am
    Advisor says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    If there is a policy in force and premiums are current the claim will be paid. The issue only affects those who want new coverage or who want to increase their existing coverage. This issue will likely only last a few days to a week.

  • March 1, 2010 at 3:17 am
    Chris says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    HUGE mistake in the article. If you have an active policy claims will be paid. The hiatus affects new policies that aren’t in force. You can’t expect to be paid a claim if you don’t have a policy.

  • March 1, 2010 at 5:00 am
    NFIP agent says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Anyone wanting information on the NFIP can go to http://bsa.nfipstat.com.
    Look under WYO Company Bulletins / Previous Bulletins / W-09068
    This bulletin explains what will and will not occur during the lapse.
    This bulletin is referenced in Bulletin W-10014 that was issued on 2/26/09.
    This site is the best place for insurance professionals to get correct information on the NFIP.

  • March 2, 2010 at 7:32 am
    Observer says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    An NAIC press release dated March 2 includes this sentence: “Until Congress approves this reauthorization, the NFIP cannot issue new policies, increase coverage, approve renewal policies or pay claims.” It also contains this sentence: “However, consumers with current policies are still covered by the federal program.” It’s not clear how one can be covered by a policy under which the insurer pays no claims.

  • March 2, 2010 at 11:00 am
    Big Dog says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    …when we forwarded the link to this Insurance Journal article – heard a rumbling, likely to be fine.

    How profound…

  • March 2, 2010 at 11:36 am
    Mr. Solvent says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    This is my response on why government doesn’t belong in the health insurance business. Don’t have a heart attack this week as we let the Federal Health Program expire…guess you’ll have to expire as well.



Add a Comment

Your email address will not be published. Required fields are marked *

*