In a force-placed flood insurance situation, how far back must we back-date the force-place policy? Back to the date of lapse, or only from day 30 to 45? Please also provide the pertinent part of the regulation where the requirement can be found. Thanks!

How can you back-date a forced placed policy? Isn't a policy effective on the day you force place it? I would think backdating a policy and making the customer pay for a time period in which there would be no possbility of a claim would be considered a UDAAP.

Under current guidance, see the Flood Q&As, you cannot charge the customer until the 45 day letter period expires, although that is currently under review.

Did I ask about charging the customer? No, I am asking about how far we have to back-date? Aren't we required to maintain continuous coverage with no lapses?

You force place after the 45 days expires. If you want the bank to be covered prior to the that, you could force place on day 31, when the mortgagee coverage expires on a normal NFIP policy. It would most likely be a lot cheaper for the bank and less of an administrative burden to buy a blanket protection policy for the bank covering that period of time. But again, what does back-dating a policy do for anyone?

What I think it does is to cover the Bank if there was a flood event of which the bank was unaware.

But there is one final point that confuses me...question #62 in the 2011 FEMA FAQs is written thus, "When may a lender or its servicer charge a customer for the cost of insurance that covers collateral during the 45-day notice period?" Why would they ask that question if they did not expect that the Bank would have such coverage in place during the 45-day notice period?

Question #62 is still out for comment, that is why I referred to current guidance in my first response.

By the way, force placed insurance or not, I don't think that there is an insurance policy out there that will pay a claim through backdating a policy to a date prior to an event that has already occurred. I would re-read your master policy very carefully...

Believe it or not I have asked our force-placed agent that very question and the say that we would be covered. But I understand where you are coming from and should probably get it in writing, LOL!