Skip to content

Compliance aid provision of the private flood insurance rule

Question: 
How can the “compliance aid” provision be used?
Answer: 

The final rule includes the “compliance aid” provision designed to facilitate lenders' determination as to whether a flood insurance policy meets the definition of “private flood insurance,” and therefore must be accepted under the “mandatory acceptance” provision. The “compliance aid” in the final rule is now in the form of an assurance clause statement.
Specifically, a lender may determine that a policy meets the definition of “private flood insurance” without further review of the policy if the following statement is included within the policy or as an endorsement to the policy:
"This policy meets the definition of private flood insurance contained in 42 U.S.C. Section 4012a(b)(7) and the corresponding regulation."
-----------------------------
Learn more about Susan Costonis’s webinar Flood Insurance Fundamentals – Passing the next Compliance Exam

First published on 08/18/2019

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics