Q: May a lender decide to only accept private flood insurance policies under the mandatory acceptance provisions of the regulation?
A: The answer is yes. The lender is only required to accept flood insurance policies issued by a private insurer that meet the definition of “private flood insurance” under the regulation. A lender is not required to accept flood insurance policies that meet the criteria set forth in the discretionary acceptance or mutual aid provisions of the regulation.
This Q&A was part of the discussion in the Outlook Live – 2019 Interagency Flood Insurance Update on Private Flood Insurance Rule webinar held on 6/18/19 and focused on the new private flood insurance rules that become effective 7/1/19. Information may be found here: https://www.webcaster4.com/Webcast/Page/577/30085