Underwriting Questions and Answers

  1. If renewal premium is received over 30 days but less than 90 days on a policy that is a mandatory purchase, can the policy be renewed effective the date of receipt with no waiting period?
  2. When I reduce coverage on a VE zone policy, should I check the replacement cost ratio?
  3. When a building is in the course of construction how do I determine the rating information?
  4. If the surveyor does not fill in all of the necessary information on the elevation certificate and refuses to do so, what can we as a WYO company do?
  5. Why should you provide front and rear pictures of a structure with each new business application?
  6. The mortgage company mailed the premium to the wrong WYO company. There have been no losses. If there is documentation that the payment was issued within the 30 days, can the policy be renewed with no lapse in coverage even though the correct WYO company did not receive it within 30 days?
  7. A condominium association has purchased a RCBAP with a large deductible. Can the individual unit owner use his building coverage for an assessment from the association for his/her part to pay this deductible?
  8. Why can't we rate Pre-FIRM policies using Submit for Rates?
  9. We are receiving old elevation certificates completed before 10-1-2000. They may not have the diagram number or LAG. Do we need this information?
  10. If the bottom floor of a structure with a walkout basement is used primarily for storage, access or parking, should it always be rated as elevated with an enclosure? If not, what are the exceptions?
  11. When do you include an elevator as an enclosure or load for it?
  12. If the WYO does not receive proper documentation for a PRP from the agent, what should they do?
  13. The community officials are using the old elevation certificate certifying the elevation data collected and placed in the community records before October 1, 2000, but the certification date being used is on or after October 1, 2000. Are we allowed to use these elevation certificates?

1. If renewal premium is received over 30 days but less than 90 days on a policy that is a mandatory purchase, can the policy be renewed effective the date of receipt with no waiting period?
No, not automatically, only if there is a letter from the mortgagee requiring the mortgagor to get coverage back in force. It must be written as new business.


2. When I reduce coverage on a VE zone policy, should I check the replacement cost ratio?
Yes, this could change the rates.


3. When a building is in the course of construction how do I determine the rating information?
A policy should be written using the plans. If the plans indicate there is to be an enclosure, the policy should be rated with enclosure, unless there is documentation for compliant venting. A building in the course of construction can not be written as a RCBAP unless the condominium association has been established and at least two units sold. The future RCBAP will be written with Other Residential as building occupancy on a General Property Form. One to four family dwellings are written on Dwelling Forms.


4. If the surveyor does not fill in all of the necessary information on the elevation certificate and refuses to do so, what can we as a WYO company do?
Send the elevation certificate to the NFIP Bureau Underwriting Department. They will contact the surveyor on behalf of Mitigation Directorate to make the surveyor aware of the importance of the information and to get the needed information.


5. Why should you provide front and rear pictures of a structure with each new business application?
Although this is not a NFIP requirement, except for RCBAP's, it is a good underwriting decision. The photographs help to reduce questions of what the risk really looks like and can help determine the proper elevation to be used for rating. Take photographs of what you are trying to prove.


6. The mortgage company mailed the premium to the wrong WYO company. There have been no losses. If there is documentation that the payment was issued within the 30 days, can the policy be renewed with no lapse in coverage even though the correct WYO company did not receive it within 30 days?
No.


7. A condominium association has purchased a RCBAP with a large deductible. Can the individual unit owner use his building coverage for an assessment from the association for his/her part to pay this deductible?
No. See the Dwelling Form, III.C.3.b.2


8. Why can't we rate Pre-FIRM policies using Submit for Rates?
The Submit for Rates for elevated buildings assume that the coverage limitations apply. They do not apply to Pre-FIRM buildings.


9. We are receiving old elevation certificates completed before 10-1-2000. They may not have the diagram number or LAG. Do we need this information?
Yes.


10. If the bottom floor of a structure with a walkout basement is used primarily for storage, access or parking, should it always be rated as elevated with an enclosure? If not, what are the exceptions?
Yes. There are no exceptions.


11. When do you include an elevator as an enclosure or load for it?
The walls around the elevator car are always an enclosure.


12. If the WYO does not receive proper documentation for a PRP from the agent, what should they do?
If the WYO company is requiring their agents to provide documentation to confirm PRP eligibility and the agent fails to provide such documentation, they should issue a standard policy. The WYO may choose to perform the PRP eligibility determination.


13. The community officials are using the old elevation certificate certifying the elevation data collected and placed in the community records before October 1, 2000, but the certification date being used is on or after October 1, 2000. Are we allowed to use these elevation certificates?
Yes, but the community official must note on the elevation certificate that the information was collected before October 1, 2000.

Last Modified: Friday, 19-Oct-2007 14:44:33 EDT