This will my last comment on the subject as well.

the coverage with respect to the property which is the subject of the loan shall be effective as of the time of the loan closing, provided the written request for the coverage is received by the NFIP and the flood insurance policy is applied for and the presentment of payment of premium is made at or prior to the loan closing

This is, IMO, addressing the policy is effective as of loan closing if written request is received by the NFIP AND the policy is applied for and paid for at or prior to loan closing. I still don't see where it tells the original questioner that a copy of the application and proof of payment is acceptable documentation for the lender to close the loan. And a lender cannot close a loan without proof of insurance. So what constitutes proof of insurance for the lender, either a copy of an effective policy or a copy of the application and proof of payment of the premium.

Argh.

With a small distinction, you are agreeing with each other.

A copy of the actual policy is not required at application because it takes a fair amount of time from the point of payment for the policy to be mailed and such a requirement would therefore prevent loans from closing for no real purpose.

A copy of the app and proof of payment constitutes both proof of insurance and proof of effective date as of the loan closing date, with a caveat from Dan that in year 3 (pick a number) of a 5 year loan the regulators are going to insist that you have an actual policy to prove the payment went through and the policy is actually in force (was not cancelled two months later, etc).

i guess i kept prattling on because i didn't think dan realized this.

I have 2 questions: We verify that the flood zones listed on the flood policy and the SFHD coincide. We are running into an issue where the determination and the policy are the same zone letter (ie: "AE" versus "A07"). We have been advised by the insurance agency that it makes no difference since the premium is the same. Can we accept policies with this kind of discrepancy?

Also, is a general change form with proof of premium payment acceptable evidence of flood coverage? If so, must we obtain the updated dec page at a later date?

Zone AE has replaced zones A1-A30, see below:

Flood Insurance Basics - Zones

Thanks for the info on the zoning issue....Based on the previous information supplied above, I guess I should assume that a general change form (to increase flood coverage) with proof of payment is acceptable evidence of adequate insurance coverage, however, is it necessary to implement a process/procedure to ensure that we obtain the updated dec page after loan closing?

IMO most definitely yes.