PIA National staff attended the 2006 NFIP Flood Conference in Philadelphia, PA May 7-10.  This year’s attendance was the largest in recent years with approximately 800 agents, lenders, floodplain managers, and other interested parties attending.  In addition, nearly 125 people attended a day-long workshop dedicated to training agents who work with NFIP flood insurance.  The day included an overview of the coverages, limitations, exclusions in the NFIP’s three policy forms, and how policies are rated using the Elevation Certificate.

During the NFIP Conference the Flood Insurance Producers National Committee met with FEMA staff to discuss several issues of interest. Regarding agent continuing education, FEMA reps responded that state DOIs are being asked to coordinate the NFIP training as stated in the September, 2005 Federal Register.

FEMA has provided states with a sample outline of course training, but says it is up to the states themselves as to how they will implement it. PIA followed up on May 16 with a letter to NAIC reps, with a copy to FEMA reps, in an attempt to further clarify the current confusion within the states as to what is expected of CE training for this program.

During separate May 2006 meetings of  FEMA/NFIP and NAIC respectively, both organizations moved forward in resolving the recent confusions. Both confirm as correct their original understanding from September 2005 and the separate roles that each will play in terms of the federal requirements. In brief:

• The federal NFIP CE requirement only applies to insurance producers that sell NFIP business.
• As such, these insurance producers must know of and seek to comply with this requirement (as with the other NFIP requirements made of them).
• FEMA/NFIP, as the regulatory authority, agreed to and welcomes the benefits of the coordinating with the existing state insurance CE system.
• States are not required to mandate any specific NIFP CE requirements, additional or otherwise.

PIA National is continuing to work with NAIC and FEMA/NFIP to resolve several additional details. Should you have any questions, please advise patbo@pianet.org.

What It Means to Agents:  Although states may not be required to mandate any specific NFIP CE requirements, nevertheless the federal NFIP CE requirement still applies to all producers that sell NFIP policies.
 

Federal Register – FEMA Flood Insurance Training Requirements (PDF, 9/2005)

PIA Letter to NAIC (5/16/96)

May 26, 2006