We force placed flood insurance on the 45th day. We receive the policy and the policy does not go into effect for another 30 days (75 days coverage has been lapsed). We have contacted the insurance company and told that the 30 day waiting period does not apply, but they say they can not do anything and there will be 30 day waiting period.

We are waiting for our examiner to contact us back, but has anyone ran into a situation like this before? How did you resolve it?

Did the original policy expire and the borrower not pay the renewal premium until day 45?

If so, read my posts in this thread:

http://www.bankersonline.com/forum/ubbth...966#Post1384966

However, if you are referring to your force placed policy there would be no waiting period and if the company insists on imposing one then I would insist on changing companies. Refer them to Appendix 6 of the Mandatory Purchase guidelines.

BTW, you shouldn't have forced placed until day 46. The borrower has until the end of the 45th day to present you a policy.

We had something similar wherein a borrower was found to have insufficient coverage on one of their two buildings. We sent a notice to the borrower who did go to their insurance agency and increase the coverage. The insurance company would not make the change immediately but put a 30-day wait on the increase. The insurance agent argued the point with the company, saying that it needed to be effective immediately but the company would not do it. All we can do is document everything in the file and we'll see what happens during our next Flood Exam.