Flood Insurance Training Requirements and Recommendations for Insurers and Nebraska Resident Insurance Producers

Nebraska Department of Insurance Guidance Document IGD - - F2 Title: Flood Insurance Training Requirements and Recommendations for Insurers and Nebraska Resident Insurance Producers Issue Date: October 20, 2022 Previously: Issued as CB-112, September 21, 2006 Notice: This guidance document is advisory in nature but is binding on an agency until amended by such agency. A guidance document does not include internal procedural documents that only affect the internal operations of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document. This guidance document advises insurers and Nebraska resident insurance producers on training requirements for selling flood insurance through the National Flood Insurance Program (NFIP) and recommends that insurance producers that they advise homeowners of the availability of flood insurance. IF YOU DO NOT ISSUE FLOOD INSURANCE POLICIES AS AN INSURER OR YOU DO NOT SELL FLOOD INSURANCE TO YOUR CLIENTS AS AN INSURANCE PRODUCER, THE CONTENT OF THIS GUIDANCE DOCUMENT DOES NOT APPLY TO YOU. The Federal Emergency Management Agency (FEMA) administers the federally-backed flood available through the NFIP. FEMA implemented the minimum flood insurance training requirements for insurance producers, as set forth in Section 207 of the Flood Insurance Reform Act of 2004, Pub. L. 108-264, (the Act Under the Act, FEMA, in cooperation with state insurance regulators, has developed flood insurance under NFIP are properly trained and educated about the program. Under these requirements, all Nebraska resident insurance producers licensed in property/casualty lines of authority that may sell a flood insurance policy must complete a one-time course related to NFIP which will provide at least three hours of continuing education credit. These three hours are not required in addition to the normal 24 hours. Some approved continuing education providers will have the NFIP course available. FEMA hosts an online webinar to complete the NFIP course. Failure to comply with this continuing education requirement may jeopardize the insurance producer’s authority to write flood insurance through the NFIP. Pursuant to the Act, the NDOI requires all Nebraska resident insurance producers who sell flood insurance through NFIP to comply with the minimum training requirements of Section 207 of the Act, and with basic flood education, as outlined in 70 FR 52117, or such later requirements as are published by FEMA. Licensed insurers, who sell flood insurance through NFIP, must , upon request, demonstrate to the NDOI that they’ve completed the above-described minimum flood insurance training requirements. To comply with the request, the insurance producer may show the continuing education certificate of completion for the course. The NDOI recommends that when an insurance producer is either selling or renewing a homeowner’s insurance policy that he/she advises all applicants of the availability of flood insurance through NFIP. If an applicant declines the coverage after being advised of the availability of flood insurance, it would be prudent for the insurance producer to have the applicant sign or initial a statement indicating that the applicant was advised of the availability of coverage but declined to purchase it. The insurance producer should maintain this statement as part of the applicant’s file. More information about the NFIP may be obtained by visiting FEMA’s NFIP website at http://www.fema.gov./business/nfip/. Questions regarding this guidance document should be directed to the Producer Licensing Division at (402) 471-2201.