NFIP Industry Day PowerPoint Presentation.pptx

NFIP Industry Day National Flood Insurance Program Federal Emergency Management Agency U.S. Department of Homeland Security August 11, 2010

Welcome & Opening Remarks Mr. James Sadler, CPCU, AIC Director of Claims National Flood Insurance Program

Agenda Registration/Vendor Check-in Welcome & Opening Remarks FEMA Mission Panel Introduction NFIP Overview Questions & Answers FEMA Small Business Office Acquisition Questions and Answers Closing Remarks

FEMA’s Mission Statement “FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.”

Panel Introduction

PANELIST

Jhun de la Cruz, Chief of Underwriting Branch Demetria Carter, Director of Acquisition Policies & Legislative Division Veronica Key, Branch Chief Acquisition James Sadler, Director of Claims Nation Flood Insurance Program

NFIP Overview Underwriting Branch

Presenter: Jhun de la Cruz

National Flood Insurance Program Overview The NFIP provides flood insurance protection, otherwise unavailable through the private insurance market, to property owners in communities that agree to regulate new construction and development in their flood plains.

National Flood Insurance Program Overview Currently, approximately 2% of NFIP policies are sold and serviced directly by the Federal government through the NFIP Direct Program (Servicing Agent), managed by contractor, and using the same agents as WYO companies.

National Flood Insurance Program Overview The insurance is sold and serviced primarily by private insurance companies participating in the Write-Your-Own (WYO) Program, using State-licensed property insurance agents.

Current Statistics of the NFIP

Group Flood Insurance Policy Established in 1996 for recipients of Individual and Family Grant (IFG) disaster assistance to purchase flood insurance as a condition of the IFG assistance.

In September 2002, the program was changed to Individuals and Households Program (IHP) for presidentially disaster declarations on or after October 15, 2002.

IHP is for those recipients who don’t qualify for an SBA disaster loan or low-income.

Group Flood Insurance Policy

The State establishes a GFIP directly with the NFIP to cover all applicants who live in designated Special Flood Hazard Areas (SFHAs) only and who receive grants for flood-damaged real and/or personal property.

GFIP Master Policy takes effect 60 days after the date of the Presidential disaster declaration and expires 36 months from the date it becomes effective.

Coverage for a GFIP certificate holder begins 30 days after the NFIP receives the $600 premium payment.

Group Flood Insurance Policy GFIP premium of $600 is deducted from the grant amount.

GFIP is a 3-year policy, with $200 deductible each on building and contents, i.e., $400 for both.

Currently, the maximum amount of coverage is $29,900 and annually adjusted based on Consumer Price Index

(CPI).

GFIP is similar to an NFIP standard flood insurance policy in that it applies when there is a general condition of flooding.

Severe Repetitive Loss Properties Flood Insurance Reform Act of 2004 (FIRA 2004), made it a top priority to reduce the number of Severe Repetitive Loss (SRL) properties.

SRL property must meet one of the following criteria based on paid flood losses since 1978, regardless of ownership:

Four or more separate claim payments of more than $5,000 each (building and/or contents payments); or Two or more separate claim payments (building payments only) where the total of the payments exceeds the current value of the property.

In either case, two of the claim payments must have occurred within ten years of each other.

Severe Repetitive Loss Properties

As of May 2010, there are approximately 18,000 properties that meet the standard for SRL.

SRL properties are handled by the NFIP Servicing Agent, Special Direct Facility.

Approximately 3,000 SRL properties are transferred to the Special Direct Facility annually from WYO companies in the past 5 years.

Severe Repetitive Loss Properties SRL transfer process timeline 150 days from expiration – NFIP Legacy System Services provides list of qualified properties to WYO companies.

90 days from expiration - WYO notifies agent, insured, lender, property qualifies for SRL.

WYO sends additional data record to NFIP Legacy System Services.

75 days from expiration - Data from NFIP Legacy System and WYO received by SDF and policy record is created.

Severe Repetitive Loss Properties

45 days from expiration – SDF sends renewal bill and cover letter sent to policyholder, agent, and lender, if applicable.

0-30 days after expiration - Monthly report provided to NFIP Legacy System Services for distribution to WYO’s of unpaid premiums.

2-Year Preferred Risk Policy (PRP) Extension

Effective January 1, 2011, a building is eligible for a PRP for 2 years after the building’s flood zone is re-designated as a Special Flood Hazard Area (SFHA) through a map revision, so long as the building also meets the PRP loss history requirements.

2-Year PRP Extension

Buildings that were newly designated within an SFHA due to a map revision on or after October 1, 2008, are eligible for a PRP for 2 policy years.

The Servicing Agent must identify all potentially eligible policies that are new or renewed for properties located on a panel that has undergone a map change effective on or after October 1, 2008. As maps continue to be revised, the potentially eligible policies can be identified by the panel number.

2-Year PRP Extension

The NFIP Servicing Agent must send a notice to all potentially eligible policyholders at least 90 days prior to policy expiration.

Approximately 10,000 currently active policies may be eligible for the 2-year PRP extension.

Claims and Appeals

Presenter: James Sadler

Forms Reinspections Increased Cost of Compliance / Severe Repetitive Loss

(ICC/SRL)

Adjuster Control Office (ACO) Flood Insurance Claims Office (FICO) Group Flood Insurance Program

(GFIP)

Freedom of Information Act (FOIA) Repetitive Loss / Severe Repetitive Loss (SDF) Operation Reviews (Annually)

Claims and Appeals Policy Forms and Claims Forms WYO may not use official FEMA forms with FEMA logo and OMB number. The forms used must include same information as official forms.

Direct Servicing Agent (DSA) required to use only official forms.

Claims and Appeals Reinspections Performed by:

Routine DSA / WYO Reinspections – iServices General Adjusters Special Assist DSA Reinspections – DSA General Adjuster Special Assist WYO Reinspections – iServices General Adjusters

Claims and Appeals Increased Cost of Compliance - Severe Repetitive Loss (ICC/SRL) A new initiative allowing ICC Claim payments to be paid in Non SFHA.

Will develop into a full claims operation.

Volume of payments uncertain, but not expected to be high.

For the time being only payment requested by FEMA will be made.

Claims and Appeals Adjuster Control Office (ACO) Established by DSA for smaller flood events.

Serves as a FEMA presence in the area.

Assignments to Adjusters are not made and claims are not paid from ACO.

Claims and Appeals Flood Insurance Claims Office (FICO) Claims are Assigned and Payments are made from the FICO.

DSA General Adjusters have forms available for adjusters handling DSA claims.

Claims and Appeals Group Flood Insurance Program (GFIP) Identity of policyholder is verified Policyholder may be:

Landlord Owner Occupant Tenant

Freedom of Information Act (FOIA) FEMA can only provide information that it has in its possession.

Information in the possession of the DSA is considered in the possession of FEMA.

Claims and Appeals con’t Repetitive Loss / Severe Repetitive Loss (SDF) Prior losses are assumed – adjuster must review.

Adjuster must prepare a SRL Report – to determine characteristics of area that may contribute to repetitive losses.

Claims and Appeals con’t Operation Reviews WYO Companies on a triennial schedule DSA is reviewed annually

Questions?

FEMA

Small Business Office Presenter: Demetria Carter

Socio-economic Report – FY 2010

July 2, 2010

Subcontracting Goals Category Goal

Acquisitions

Presenter: Veronica Key

Contractual Information Current Contractor

CSC

Contract Expires November 30, 2010 Contracting Method and Contract Type FAR Part 15 Contract by Negotiation Award one (1) Firm Fixed Price Indefinite Delivery Indefinite Quantity (IDIQ) Contract Performance Based Performance Requirement Summary (PRS) to be Released with Solicitation Period of Performance One (1) Base Year with four (4) one year option periods

Contractual Information Continued Important Milestones Request for Proposal (RFP) Release Date NLT August 16, 2010 Estimated Award Date- December 1, 2010 Contractor Must Be Registered in Contractor Central Registration (CCR) Website: www.ccr.gov Complete Representation and Certification Website: https://orca.bpn.gov/ Contractor Must Not Be Listed in Excluded Party List System (EPLS) Website: www.epls.gov Competition Requirements Full and Open Competition Encourage Small Business Participation

Questions?

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