Q: What does the July 2015 rule say about terminating force placed flood insurance?
A: Force placed (FP) flood insurance must be terminated within 30 days of receiving confirmation of a borrower’s flood coverage. A lender/servicer must:
1) notify the insurance provider to terminate any FP insurance, and
2) refund to the borrower all premiums paid by the borrower for any FP insurance purchased by the institution which was in effect at the same time as the borrower’s insurance.