Private Flood Ins. – If a policy includes the compliance aid assurance clause language, does a lender need to conduct additional review of the policy for compliance with the definition of private flood insurance?

Compliance > Lending > Flood > 2019 Private Flood Insurance Rule
Q:  If a policy includes the compliance aid assurance clause language, does a lender need to conduct additional review of the policy for compliance with the definition of private flood insurance?  Is a lender required to accept a policy that includes the compliance aid statement?
 
A:  The answer would be no to this question.  The regulation provides that if a policy or an endorsement to the policy contains the compliance aid assurance clause language, no further review is necessary in order for the lender to accept the policy.  However, a lender is not required to accept a policy solely because the policy contains the compliance aid assurance clause if the lender determines the policy actually does not meet the mandatory acceptance requirement.
 
 
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
 

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