Flood exam procedures revised

The Federal Reserve Board has issued Consumer Affairs Letter CA-19-10 announcing the update of Interagency Exam Procedures for the Flood Disaster Procedures Act (FDPA), with the addition of these new sections:

• mandatory acceptance of a private insurance policy to satisfy the flood insurance purchase requirement if the policy meets the statutory and regulatory definition of “private flood insurance;”
• discretionary acceptance of a flood insurance policy issued by a private insurer, even if the policy does not meet the statutory and regulatory definition of “private flood insurance;” and
• discretionary acceptance of a plan issued by a mutual aid society in satisfaction of the flood insurance purchase requirement, if certain criteria are met.