Flood Insurance - Fact or Fiction? What do you need to know?

Flood insurance training is no longer "optional". The Biggert-Waters Flood Insurance Reform Act of 2012 made several changes. In addition to extending authority for the National Flood Insurance Program (NFIP) through 2017, this legislation allowed regulators to increase fines to $2,000 per incident and removed the annual limit. Congress passed the Homeowner Flood Insurance Affordability Act on March 23rd and revised some parts of Biggert-Waters and eliminated or delayed  some sections. The final rules that were expected in March have been delayed. Attend this session to help train your staff to understand the rules of coverage and the root causes for common violations, including proper completion of the Standard Flood Hazard Determination Form, controls to require adequate flood insurance coverage, and proving that the Notice of Special Flood Hazards was delivered for each type of "triggering" event.

Covered Topics:

  • Expectations for flood insurance compliance, including recent regulatory guidance and suggestions for oversight by the Board and Senior management
  • What "pattern or practice" violations will trigger mandatory assessment of civil money penalties by your financial institution's primary regulator?
  • Requirements of the  Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Insurance Affordability Act
  • How to deliver proper flood hazard notices for the four types of "trip wire" events; proper insurance calculation methods, and force placement rules
  • Problem areas - what are they and how can you avoid making costly mistakes? Portions of the interagency question and answers will be covered. Topics to be covered include examples for:
    • Contents coverage for commercial loans
    • Residential condominium loans
    • Force placement of flood insurance
    • Map changes
    • Disputing flood zone determinations
    • Flood zone discrepancies
    • Notice to borrower
    • Proof of coverage
    • Construction Loans
    • Modifications
    • Detached garages
  • Flood Insurance Resources - helpful references and tools for compliance

Who Should Attend?

This informative session is designed for auditors, loan officers, loan assistants, and loan administration staff. This seminar is designed for both those new to flood insurance compliance or more experienced personnel looking for a review of existing requirements.