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New NFIP Bulletin Restricts Previous Waiver for Sandy-Related Claims

The National Flood Insurance Program (NFIP) issued a bulletin w-13027 on May 3, 2013 that is a clarification of the claims process for Sandy-related claims...
May 7, 2013

The National Flood Insurance Program (NFIP) issued a bulletin w-13027 on May 3, 2013 that is a clarification of the claims process for Sandy-related claims.

The NFIP previously issued a partial waiver as to what lesser degree of documentation would be needed in a policyholder’s proof of claim filing, when doing so for expedited advance payments of particular claims settlements. This partial waiver was detailed in bulletin w-12092a issued on November 9, 2012.

Now, NFIP is advising in the May 3 clarification bulletin w-13027 that these waived guidelines work, so long as the policyholder accepted the adjusters’ partial & then final claims adjustment! That means that w-12092a was a conditional waiver to be used for an expressed claims circumstance and outcome. It was not issued as an overall general waiver to all Sandy-affected policyholders, for any and all types of claims.

This is a significant change.

Some policyholders took advantage of this advance, partial claims payment process with a limited waiver for claims filing information. But then, they disagreed with the adjuster’s either partial or final claims payment, and as such, filed an appeal. For these NFIP policyholders, when they move to an appeal, the waiver benefits in w-12092a no longer apply. Now, the NFIP claims appeal process will require full filing of evidence for proof of loss to appeal for corrected claims.

What It Means to Agents: This NFIP clarification might give rise to some policyholder claims filing questions. Please advise patbo@pianet.org if this raises issues for your agency or if you have any questions.

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