COVID-19 Regulatory Updates and Response
We are continuing to navigate the current situation and evaluate a rapidly changing regulatory environment.
Update on April 8th, 2020
Allied's Response to Grace Period For NFIP Renewal Premiums
As stated in our April 3 update, FEMA extended the 30-day grace period for NFIP policy renewals to 120 days due to the COVID-19 pandemic.
Allied’s understanding of the recent ruling:
- Extending the grace period from 30 days to 120 days does not alter the requirements of lender placed flood coverage as outlined in the Flood Disaster Protection Act and subsequent amendments such as the Biggert-Waters Reform Act of 2012.
- To minimize risk and stay 100% in compliance, all exposure letters should be mailed as normal and evidence of lender-placed insurance, as required, should be issued on or near day 46.
- If your financial institution is interested in utilizing a lender-placed notice insert that explains the NFIP grace-period extension or if you have questions about the impact of FEMA’s rule change, please contact your Allied Solutions representative.
Update on April 6th, 2020
Based on guidance and mandates from state departments of insurance, during the COVID-19 pandemic Allied Solutions is accommodating its insured financial institutions by implementing a moratorium on the cancellation of policies and certificates of insurance for non-payment and waiving any late fees associated with such premium payments. Such accommodations will remain in effect until further notice.
Update on April 3rd, 2020
FEMA EXTENDS GRACE PERIOD FOR NFIP RENEWAL PREMIUMS
On Sunday, March 29, 2020 FEMA published the following release which extends the 30-day grace period for NFIP policy renewals to 120 days due to the COVID-19 pandemic. While many of us are anticipating further clarification on this ruling, the current language and direction does not alter Allied’s process regarding a borrower’s mandatory purchase of insurance, including the 45-day notification and lender-placement requirements. As we receive more information from FEMA and the regulatory agencies, we will be providing further updates on this topic.