I used an extreme example with the "fail next month", but there are certainly insurance companies with ratings that indicate they have a substantially higher risk of being able to fulfill on policies they've written. Fannie Mae, for example, currently has ratings standards for property insurance carriers (which would include flood) here:
https://www.fanniemae.com/content/guide/selling/b7/3/01.htmlWill the new rules force Fannie to do away with these standards as relate to flood insurance companies?
To rephrase the question - while we know we must accept a PFIP that meets the standard, can we still have standards for acceptable private flood insurance providers? Or must we accept a PFIP from an insurance company that is rated as C from AM Best?