Flood Q & A Follow Up - Citation Needed

Question:

On 1/11/10 David Dickinson answered a question regarding Flood Insurance renewal. Can you provide the citation for the annual forty-five day notice when a force placed policy is due to expire? I understood the forty-five day notice requirement to apply when we initially force placed flood insurance, not at each annual renewal.

Answer:

Each time a policy expires, you must begin force placement procedures anew. The citation depends on your regulator. The FDIC's is Section 339.7. There is no exemption for the second year. You can read more about Force Placement beginning on page 40 of the FEMA Guidelines.

Depending on what type of policy you forced placed dictates when you can begin force placement procedures. If it is a "standard policy", you must notify them when the policy expires and wait forty-five days before force placing again. If it is a MPPP, you can notify them forty-five days prior to expiration and force place at expiration of the MPPP.

First published on BankersOnline.com 4/12/10