Q: Under existing force placement requirements, a declarations page is sufficient to evidence a borrower's purchase of flood insurance. Is the declaration page sufficient information for the lender to determine whether the policy complies with the private flood insurance rule?
A: Not necessarily. A declarations page would not provide enough information for the mandatory acceptance rules or for the institution to determine that the policy meets the statutory definition of “private flood insurance.” It also may not provide enough information for the discretionary approach. In these cases, the lender should request additional information about the policy to aid it in making its determination.
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