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#1917262 - 04/24/14 05:27 PM Need Elevation Certificate
lds1958 Offline
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Joined: Oct 2006
Posts: 508
I have the following situation that I need help with please: A customer has flood insurance that will not renew on 5-8-14 because they need an elevation certificate. The non-renewal statement sent to the bank states that all coverage will cease effective 5-8-14 at 12:01a.m. The Agent e-mailed us and says that the insurance will need to be forced placed the same day as the nonrenewal date (5-8-14). This is not a policy that is expiring, it can't be renewed as is. My question is can we force place insurance on the same day the other policy lapses? I know we can't charge the customer until day 46 after the 45 day letter expires. How do we handle these types of situations now that elevation certificates are being required before the policy can be renewed?
Thanks!

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Flood Compliance
#1917274 - 04/24/14 05:40 PM Re: Need Elevation Certificate lds1958
RR Joker Offline
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Yes, you can. That's part of the new rules.
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#1917280 - 04/24/14 05:49 PM Re: Need Elevation Certificate RR Joker
lds1958 Offline
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Joined: Oct 2006
Posts: 508
Thanks Joker so would we charge the customer on day 31 or on day 46 in this situation?

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#1917284 - 04/24/14 05:57 PM Re: Need Elevation Certificate lds1958
RR Joker Offline
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46.
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#1917497 - 04/25/14 11:34 AM Re: Need Elevation Certificate lds1958
rlcarey Online
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rlcarey
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Galveston, TX
The agent is all wet - they can issue a tentatively rated policy without the elevation certificate for a period of one year.
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#1919537 - 05/01/14 09:43 PM Re: Need Elevation Certificate lds1958
CountryBanker Online
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Joined: Mar 2013
Posts: 266
Northern IL
Randy, the form letter we're seeing from the insurance companies states "your agent may submit an application to renew your policy using tentative rates." That's the same thing you are describing?

Why don't insurers just renew these policies using full-risk premium rates? Will the elevation certificates make that much of a difference, if the property has, and always will be, Zone AE ?
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#1919538 - 05/01/14 09:51 PM Re: Need Elevation Certificate lds1958
WI Banker Offline
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Posts: 253
The chart I found looks like tentative rates are VERY high. The one case so far where our borrower needed an elevation certificate to renew policies (3), the agent wouldn't provide tentative rates so we ended up force placing. We have more coming up so will be interesting to see what happens on those.

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#1919541 - 05/01/14 10:12 PM Re: Need Elevation Certificate lds1958
CountryBanker Online
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Posts: 266
Northern IL
Yikes! WI.B, Are you also finding out that each agent office has a different level of understanding of how this all works?
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#1919542 - 05/01/14 10:14 PM Re: Need Elevation Certificate lds1958
rlcarey Online
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rlcarey
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Galveston, TX
Yes, that is what I am describing. The rate may or may not be significantly higher depending on where the ground floor elevation is in relation to the base flood elevation. They will be eligible for full refunds down to their proper premium amount if it drops.

Agents that refuse to write a flood policy using tentative rates in these situations should be reported to the State insurance regulators.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1919629 - 05/02/14 01:38 PM Re: Need Elevation Certificate lds1958
CountryBanker Online
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Northern IL
And if they are eligible, refunds are determined when "proper premiums" are available:
1) by 1/1/2016, when funds become available for Section 207 purposes (and IF that date holds), or
2) some arbitrary future date when the gov't gets around to it?

I understand your point about agents who refuse to write a flood policy. Most of the time, the 1st point of contact is not the agent themselves, but their support/staff. Am finding THEIR level of understanding isn't the deepest on this topic.
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#1919704 - 05/02/14 02:40 PM Re: Need Elevation Certificate lds1958
rlcarey Online
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rlcarey
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Galveston, TX
Don't confuse the refund process for policies paid for in which the premiums are now being rolled back with the refund process for tentative or provisionally rated policies. Those procedures have not changed and are not delayed.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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