What do we do when we are adding the premium to the loan at closing and right to rescind applies? The Note is dated July 6 and we cannot disburse until Friday, July 10. In other words, we cannot pay the premium until July 10 and note is dated July 6.
Will we be in violation of not having flood insurance in place at closing?

You are in violation of the NFIP. You MUST have documented paid insurance in place BEFORE you close the loan.

Thank you for your reply.
Must have been our lucky day...examiners didn't write us up for this violation.
We'll be more careful in the future, though.

I would say you were. But everyone deserves a little luck here and there!!!!