Twenty-four questions and answers addressing the private flood insurance provisions of the 2012 Biggert-Watters Flood Insurance Reform Act were proposed Thursday by federal financial institution regulators.
The proposal – issued jointly by the Farm Credit Administration (FCA), Federal Deposit Insurance Corp. (FDIC), Federal Reserve Board, National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) – is subject to a 60-day public comment period that begins with its publication in the Federal Register.
Thursday’s proposal includes some references to a set of Q&As proposed last year and published July 6 in the Federal Register. Those Q&As only included two on private flood insurance, the agencies noted, adding that the rules for private insurance had just been finalized in 2019. The regulators said they plan to publish a final document in the Federal Register that will consolidate Thursday’s proposed private insurance Q&As with the 2020 proposed Q&As.
Areas covered by the Thursday’s proposed Q&As on private flood insurance include mandatory acceptance (nine Q&As), discretionary acceptance (four Q&As), and private flood insurance general compliance (11 Q&As).
The 2020 Q&As covered a broad range of topics related to technical flood insurance-related issues, the agencies noted, including the escrow of flood insurance premiums, the detached structure exemption to the mandatory purchase of flood insurance requirement, and force-placement procedures.
RR: Agencies propose updating flood insurance Q&As reflecting rule changes (June 26, 2020)
2020 proposal (Federal Register document)