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NFIP - Extended PRP Program Update

On August 21, 2012 FEMA/NFIP issued a bulletin (w-12054) addressing the status of the ongoing use of extended Preferred Risk Policy (PRP) eligibility
August 31, 2012

On August 21, 2012 FEMA/NFIP issued a bulletin (w-12054) addressing the status of the ongoing use of extended Preferred Risk Policy (PRP) eligibility. FEMA/NFIP is confirming for WYOs and producers that at this time, properties that meet certain specs will continue to be renewed in the program.

For properties that were and/or will be newly remapped (as of October 1, 2010 and forward) from B,C,X to SFHA flood zones; which continue to meet the loss history requirements of the regular PRP program; beginning with 01-01-2013 renewals, the Extended PRP will continue. Properties that still meet these specs will continue to be renewed in the program. WYOs/producers may also continue to write new business that complies with these specs, as well. (see attached info slide from PIA National 2010 PRP webcast). Please be sure you refer to your WYO for more details as to insurance processing instructions.

Background: Almost two years ago, FEMA/NFIP was allowed to use this special extended PRP rate treatment to mitigate sharply increased NFIP premiums that would have been experienced by many properties owners as a result of the recent flood zone remapping process. This special program was to be for two-years, after which policyholders would be renewed at the full current NFIP rate. The first wave of this two-year-matured NFIP business is coming up for renewal beginning 01-01-13.

What It Means to Agents: It is important to note that this is not a blanket extension of PRP. FEMA/NFIP is aware that there are additional clarifications needed. Many reforms and changes provided for in the recent NFIP renewal laws (the Biggert-Waters Flood Insurance Reform Act of 2012 and HR 5740) may ultimately lead to changes in this special program. These changes could lead to the termination of the program at some point. PIA is monitoring this and we advise that you check the flood resource section on this website regularly and follow your WYOs updates.

As FEMA/NFIP continues to issue what will become a torrent of program bulletins to comply with the Biggert-Waters Flood Insurance Reform Act of 2012, PIA National continues to press for changes to foster better continuity through these transitions for the best interests of NFIP policyholders and the program. PIA National Secretary/Assistant Treasurer Richie Clements serves as PIA National’s representative to the NFIP. As always, we invite and welcome your questions, comments or suggestions involving the NFIP program (

WYO Program Bulletin W-12054 (8/21/2012)

The PIA/Hartford Flood Insurance Program

Since 2004, PIA and The Hartford have joined together to provide PIA member agents the opportunity to offer their customers flood insurance through The Hartford, a premier WYO company. The program is available to PIA members and their policyholders in all 50 states, the District of Columbia and Puerto Rico.

Learn more about the PIA/Hartford flood insurance program online or contact Karen Piacenta of The Hartford at (860) 547-5005 or for more information.

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