URGENT MESSAGE FOR ALL TRAVELERS AGENTS!
The National Flood Insurance Program's (NFIP) authorization expired at Midnight on May 31, 2010
**During this lapse, no credit cards, E-Checks or ACH Transactions (agency sweep) will be accepted.**
The following is based on guidance that FEMA published on rules of the NFIP during the lapse:
Flood New Business
- If Travelers received a new business application with proper payment prior to midnight 5/31/10, the policy will be processed and issued in accordance with standard NFIP effective date rules.
- If Travelers received an application prior to midnight 5/31/10, but did not receive proper payment until after midnight on 5/31/10, the new business will not be issued until the NFIP is reauthorized. The effective date of the policy will depend on whether or not Congress reauthorizes the NFIP retroactively.
- If a new business application is submitted and payment received after 5/31/10, Travelers is not able to issue the new business policy during the lapse period. The effective date of the policy will depend on whether or not Congress reauthorizes the NFIP retroactively.
- For loans that closed prior to midnight on 5/31/10, if the flood application date is on or before the closing and the payment check is from the escrow account (lender's check), title company or settlement attorney, the policy will be issued even if the application and money are received after 5/31/10. Standard NFIP receipt date rules apply.
- If Congress fails to reauthorize the NFIP, or if congressional action is not taken within a reasonable amount of time, any premiums being held for any new business application that we are unable to process as outlined above will be returned and no policy or coverage will have gone into effect.
Flood Renewals or Added Coverage Endorsements
- If Travelers received a renewal instruction or added coverage endorsement with proper payment prior to midnight 5/31/10, the renewal policy or change will be processed and issued with standard NFIP effective date rules.
- If Travelers received an added coverage endorsements prior to midnight 5/31/10, but the money was received by Travelers after midnight on 5/31/10, the added coverage endorsement will not be processed until after the NFIP is reauthorized. The effective date will depend on whether or not the legislation is retroactive.
- Travelers cannot mail renewal offers after midnight on 5/31/2010. Travelers is not allowed to process any increase in coverage if the request and payment are received by Travelers after midnight 5/31/2010.
- If Travelers issued the renewal offer prior to midnight on 5/31/2010 and the premium is received by Travelers within the 30-day grace period, the renewal policy can be issued even if the premium is received after 5/31/2010.
- If an Underpayment Notice was issued prior to midnight on 5/31/10 and the premium is received by Travelers within 30 days of the date of the Underpayment Notice, the added coverage endorsement can be issued even if the premium is received after 5/31/2010.
- If Congress fails to reauthorize the NFIP, or if congressional action is not taken within a reasonable amount of time, any premium we are unable to apply based on the rules stated above will be returned. Coverage will be determined based upon the rules of the NFIP.
FEMA HAS RECOMMENDED THAT WE HOLD ANY PREMIUM RECEIVED AFTER MIDNIGHT ON MAY 31, 2010 FOR NEW POLICIES, RENEWAL POLICIES, OR ADDED COVERAGE ENDORSEMENTS AS WE AWAIT CONGRESSIONAL ACTION. IF CONGRESS PROVIDES RETROACTIVE REAUTHORIZATION TO THE NFIP, POLICIES/ADDED CHANGE ENDORSEMENTS WILL BE AFFORDED THE EARLIEST EFFECTIVE DATE BASED UPON TRAVELERS RECEIPT OF THE TRANSACTION AND PREMIUM.
For Example: If you submit a new policy today and the reauthorization is made retroactive, we will use today's date as the beginning of the waiting period using standard NFIP effective date rules. If you wait to submit something until the reauthorization is approved, that future submission date will be used in calculating the waiting period.
Flood Claims
- Claims on properties where there are policies in force will be processed and paid as usual during this lapse.
- Unless Congress provides retroactive authorization of the NFIP, claims CANNOT be HONORED under a new policy, renewal policy or an added coverage endorsement transaction, if those transactions were not able to be processed and issued as outlined above. WYO Companies may investigate claims under a reservation of rights or non-waiver agreement, up to the point of payment. WYO Companies would continue to investigate the claim but would reserve the right not to pay the claim if Congress does not reauthorize the NFIP.
Travelers Flood Team appreciates your business and we are hopeful that this communication is helpful. If you have any questions regarding a specific policy or the lapse in general, please call the Travelers Flood Customer Service Team at 1-800-356-6670 Option #4.
Important notice regarding Travelers Personal Insurance Property Eligibility - Homeowners and Homesaver/Dwelling Fire Eligibility
Our current Homeowners and Homesaver/Dwelling Fire Eligibility Guidelines show the following as ineligible:
In addition, in some coastal areas of East Coast and Gulf Coast states, excess flood insurance coverage above the limits provided by FEMA is also required.
There is no change to the above eligibility requirements for Homeowners and Homesaver/Dwelling Fire business. We cannot accept business in these areas where a flood policy is not in force. Accordingly, new or increased Homeowners and Homesaver/Dwelling Fire coverage requests on homes located in these areas are ineligible and cannot be bound without an inforce flood policy.
Questions regarding Homeowners and Homesaver/Dwelling Fire Eligibility should be directed to 1-877-878-2468 (ASO Agents) OR 1-877-872-8737 (CCC Agents).
A dwelling subject to flood or wavewash (all Flood Zones V and A) unless the risk is covered by a Flood Policy up to the Coverage A and C limit, or the FEMA maximums of $250,000 Coverage A and $100,000 Coverage C, whichever is less.
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