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#1569255 - 06/23/11 09:43 PM 2 Two NFIP policies
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
Know you can't have 2 NFIP policies on one property. We have a "clever" borrower who has taken out 2 different NFIP policies with 2 different WYO agents, combined they don't even provide half the required coverage. In the meantime, we had gone through our 45 day FP process and have the full required coverage force placed. Does the NFIP database have controls to cancel one of the NFIP policies? Do we have to recognize one of the policies and FP only for the difference in required coverage the one NFIP policy? And do we have to cancel our policy and start the 45 day count over again and issue ours only for the difference? This is a mess. What is our obligation here?

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#1569315 - 06/24/11 12:13 PM Re: 2 Two NFIP policies Ninky
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
If I remember correctly, I think the NFIP policy that was issued first would be honored by the NFIP in the event of a loss. The second would not.

As far as your forceplacement, what type of policy do you use to forceplace? If MPPP, you still have the same issue, as MPPP policies are NFIP. If you use private insurance to forceplace, your need to have a concurrent coverage endorsement in order to make loss claims. The concurrent coverage endorsement works like coordination of benefits on a health plan, where the first policy has to pay then the private policy would pay so much after that.
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