NFIP-WYO Flood Transfer Plan.pdf

NFIP- WYO Flood Transfer Plan

General Summary and Overview

Policyholders who are currently insured under the NFIP and serviced by this WYO will have their flood policies transferred to the NFIP Direct contractor.

The current servicing WYO agents will be able to continue to write and service flood insurance policies through the federal government’s program, NFIP Direct. The current

WYO agent should remain as the agent of record on the flood policy that is transferred to and issued by NFIP Direct.

The transfer of existing policies under this plan will take place over a one year renewal cycle, beginning October 1, 2010. This WYO will provide existing policyholders at least

90 days notice that their WYO flood policy through NFIP will cease on the policy expiration date listed for the policy and hat their flood policy will transfer to the NFIP

Direct. Mortgagees and/or Additional Interest will receive a copy of this notice.

FEMA/FIA expressly agrees that existing WYO policyholders as of October 30, 2010, will not have to complete a new application in order for the policy to be continued through NFIP Direct. NFIP Direct will send the renewal premium notice to its policyholders without any disruption in coverage.

Approximately 90 days prior to expiration of the policies, WYO will provide NFIP Direct with additional data so NFIP Direct can provide renewal notices to its policyholders.

The information to be provided will be the same information that is provided today for those policies that are written through NFIP Direct for several repetitive losses, including information regarding mortgagee and/or additional interests and the WYO agent of record. This data will be delivered to NFIP Direct on a monthly basis in DVD and/or

FTP format, so that NFIP Direct can process this information, along with policy data that is normally transferred to NFIP Direct, in an electronic form through TRPP reporting, I an orderly manner. This data can be provided in larger batch upon NFIP Direct request.

In consideration of the volume of data to be transferred, other policy information in

WYO’s possession, including elevation certificates, will be provided to NFIP Direct in an electronic format at an agreed upon date, no later than April 1, 2012, unless NFIP Direct should specify another format within a reasonable time prior to the transfer.

WYO will ensure that the WYO agents and the WYO Flood Service Office are prepared to handle questions that existing policyholders may have regarding the transfer of policies from WYO to NFIP Direct, prior to the expiration date of the existing WYO policy. In order to provide advance notice to policyholders regarding the news f the transfer, existing policyholders will received in advance of sending the 90 day notice, a letter advising them of WYO’s decision to change its participation in the NFIP (“the pre-

90 day notice”).

Claims submitted on policies written under the 2009-2010 Arrangement, from October

1, 2009 through October 30, 2010, will be handled by WYO.

WYO claim representatives will not handle claims written through the NFIP Direct program. NFIP Direct will assign claim handlers for these losses.

Operations Impact

Servicing of Impacted Policyholders

No policies will be written or renewed after September 30, 2010 under the new

Arrangement. Policies written with an application date on or before September 30, 2010 that have a 30 day waiting period, that last date being October 30, 2010, are considered part of the current Arrangement.

WYO will continue to process new applications and requests for changes to existing policies written under the current Arrangement, until the WYO flood policy issued through the NFIP ceases. October 30, 2011 is the latest date any policyholder request will be made.

Underwriting:

WYO generates 100% of new business applications in paper format.

WYO will provide submit-for-rate worksheet to determine the rate for manually rated policies that come up for renewal. WYO will provide documentation to support the rates on submit-for-rate policies, such as the elevation certificates, variance statements, elevated building determination forms, and photographs. There are between 700 and 1,000 submit- for-rate policies up for renewal each month.

WYO is responsible for any errors generated during a policy term, which was underwritten by WYO, and the NFIP Direct becomes responsible for errors generated after the renewal of that policy.

WYO will use the existing record layouts that FEMA has defined for TRRP records and additional data records to develop the renewal billing offer and subsequent renewal policy.

WYO will provide policy changes in a timely fashion for the rollover policy to bill correctly because of the TRPP reporting lag time. WYO will work to provide TRRP and additional data updates on a daily basis to NFIP Direct.

Policyholder Notice

The termination of existing policies under the plan will take place over a one year renewal cycle, beginning October 1, 2010. WYO will provide existing policyholders with at least 90 days notice that their WYO flood policy through NFIP will cease on its policy expiration date. Mortgagees and/or Additional Interests will also receive a copy of these notices.

Orderly Transfer of Policy Information

Beginning June 30, 2010, approximately 90 days prior to expiration of the policies, WYO will provide additional data that is not included in the normal TRPP reporting to NFIP

Direct so they can provide renewal premium notices to its policyholders. The information provided will be the same information that is provided today for those policies that are written directly by NFIP Direct for severe repetitive losses, including information regarding mortgagee and/or additional interests and WYO agent record.

This data will be delivered to NFIP Direct on a monthly basis in DVD and/or FTP format so that NFIP Direct can process this information, along with policy data hat is normally transferred through TRPP reporting. The additional data can be provided in larger bulk upon NFIP Direct request.

Other policy information in WYO’s possession, including elevation certificates, will be provided to NFIP Direct in an electronic format at an agreed upon date, no later than

April 1, 2012, unless NFIP Direct should specify another format within a reasonable time prior to the transfer.

Claims Impact

Claims Submitted on Policies Written Under the Arrangement

WYO will continue to service claims on policies written from October 1, 2009 – October

30, 2010 under the current Arrangement.