By Gina Ellis, CRCM
The President and both houses of Congress extended the National Flood Insurance Program (NFIP) temporarily through February 8, 2018 and also authorized the Federal Emergency Management Agency (FEMA) to honor all policy related transactions inadvertently accepted during the recent government shut down that occurred between January 20-22, 2018. FEMA issued implementation guidance in the event of a lapse in NFIP authority in December 2017.
It might be wise to review this guidance with another possible government shut down looming in February. https://nfip-iservice.com/Stakeholder/pdf/bulletin/w-17069.pdf
The financial Services Committee has approved a collection of seven bills designed to reauthorize the NFIP for five years. This 21st Century Flood Reform Act (H.R. 2874) would also introduce private market competition and provide reforms to assist policyholders. This reauthorization bill passed the House of Representatives in November 2017 but the Senate has not taken any further action except assigning it for committee review.
You can track the progress of pending legislation to reauthorize the program for a longer term here: https://www.congress.gov/bill/115th-congress/house-bill/2874
As always, our compliance experts are here to help with your compliance questions! Contact us at www.americanbanksystems.com or call (405) 607-7000.