81_FR_51610 81 FR 51460 - National Flood Insurance Program (NFIP); Assistance to Private Sector Property Insurers, Availability of FY 2017 Arrangement

81 FR 51460 - National Flood Insurance Program (NFIP); Assistance to Private Sector Property Insurers, Availability of FY 2017 Arrangement

DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency

Federal Register Volume 81, Issue 150 (August 4, 2016)

Page Range51460-51460
FR Document2016-18517

Each year, the Federal Emergency Management Agency (FEMA) is required by the Write-Your-Own (WYO) Program Financial Assistance/ Subsidy Arrangement (Arrangement) to notify private insurance companies (Companies) and to make available to the Companies the terms for subscription or re-subscription to the Arrangement. In keeping with that requirement, this notice provides the terms to the Companies to subscribe or re-subscribe to the Arrangement.

Federal Register, Volume 81 Issue 150 (Thursday, August 4, 2016) 
[Federal Register Volume 81, Number 150 (Thursday, August 4, 2016)]
[Notices]
[Page 51460]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18517]


-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2016-0019]


National Flood Insurance Program (NFIP); Assistance to Private 
Sector Property Insurers, Availability of FY 2017 Arrangement

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Each year, the Federal Emergency Management Agency (FEMA) is 
required by the Write-Your-Own (WYO) Program Financial Assistance/
Subsidy Arrangement (Arrangement) to notify private insurance companies 
(Companies) and to make available to the Companies the terms for 
subscription or re-subscription to the Arrangement. In keeping with 
that requirement, this notice provides the terms to the Companies to 
subscribe or re-subscribe to the Arrangement.

FOR FURTHER INFORMATION CONTACT: Lloyd A. Hake, Product Delivery 
Division Director, Federal Insurance and Mitigation Administration, 
FEMA, 400 C. St. SW., Suite 313, Washington, DC 20472; 202-646-3428 
(phone), 202-646-7970 (facsimile), or [email protected] (email).

SUPPLEMENTARY INFORMATION: Under the Write-Your-Own (WYO) Program 
Financial Assistance/Subsidy Arrangement (Arrangement), 74 (as of July 
27, 2016) private sector property insurers sell flood insurance 
policies and adjust flood insurance claims under their own names based 
on an Arrangement with the Federal Insurance and Mitigation 
Administration (FIMA) published at 44 CFR part 62, Appendix A.
    The WYO insurers retain an expense allowance and remit the 
remaining premium to the Federal Government. The WYO insurers pay flood 
losses and pay loss adjustment expenses based on a fee schedule through 
the regulated access of federal funds. In addition, under certain 
circumstances, reimbursement for litigation costs, including court 
costs, attorney fees, judgments, and settlements, are paid by FEMA 
based on documentation submitted by the WYO insurers.
    The complete Arrangement is published in 44 CFR part 62, Appendix 
A. Each year, FEMA is required to publish in the Federal Register and 
make available to the Companies the terms for subscription or re-
subscription to the Arrangement. 44 CFR part 62, Appendix A, Article 
V.B.
    Signatory Companies should remain aware that all requirements of 
the Arrangement, including, but not limited to, financial accounting in 
issues involving all transactions, must be met. As set forth in Article 
II.A.1. of Appendix A to Part 62--Federal Emergency Management Agency, 
Federal Insurance Administration, Financial Assistance/Subsidy 
Arrangement, the Company is responsible for meeting all fiduciary 
responsibilities for control and disbursement of funds in connection 
with policy administration. This includes ensuring that all accounting 
for policy administration is correct. If errors are made in policy 
administration, the Company shall be responsible for reimbursing any 
incorrect allocations, assessments, or other moneys compensated to that 
company by the Federal Government.
    The Company is responsible for ensuring that all activities meet 
the requirements of this Arrangement and of the NFIP Financial Control 
Plan, 44 CFR part 62, Appendix B. The NFIP WYO Standards Committee may 
take remedial action in the event any such conduct is not corrected.
    FEMA encourages all private insurance companies wishing to 
participate in the WYO Program for FY 2017 to contact the NFIP at 
[email protected] by September 4, 2016. Prior participation in 
the WYO Program does not guarantee that FEMA will approve continued 
participation. FEMA will evaluate requests to participate in light of 
publicly-available information, industry performance data, and other 
criteria listed in 44 CFR 62.24 and the Arrangement, 44 CFR part 62, 
Appendix A. Private insurance companies are encouraged to supplement 
this information with customer satisfaction surveys, industry awards or 
recognition, or other objective performance data. In addition, private 
insurance companies should work with their vendors and subcontractor 
involved in servicing and delivering their insurance lines to ensure 
FEMA receives the information necessary to effectively evaluate the 
criteria set forth in its regulations.
    FEMA will send a copy of the offer for the FY 2017 Arrangement, 
together with related materials and submission instructions, to all 
private insurance companies successfully evaluated by the NFIP. If 
FEMA, after conducting its evaluation, chooses not to renew a Company's 
participation, FEMA, at its option, may require the continued 
performance of all or selected elements of the FY 2016 Arrangement for 
a period required for orderly transfer or cessation of the business and 
settlement of accounts, not to exceed 18 months, 44 CFR part 62, 
Appendix A, Article V.C. All evaluations, whether successful or 
unsuccessful, will inform both an overall assessment of the WYO Program 
and any potential changes FEMA may consider regarding the Arrangement 
in future fiscal years.
    Any private insurance company with questions may contact FEMA in 
writing: DHS/FEMA, Federal Insurance and Mitigation Administration, 
Attn: Lloyd A. Hake, Product Delivery Division Director, Federal 
Insurance and Mitigation Administration, FEMA, 400 C. St. SW., Suite 
313, Washington, DC 20472; 202-646-3428 (phone), 202-646-7970 
(facsimile), or [email protected] (email).

    Authority: 44 CFR part 62, Appendix A, Article V.B.

    Dated: July 29, 2016.
Roy E. Wright,
Deputy Associate Administrator for Insurance and Mitigation, Federal 
Emergency Management Agency.
[FR Doc. 2016-18517 Filed 8-3-16; 8:45 am]
 BILLING CODE 9111-52-P

51460 Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Notices Current Actions: This submission is insurers sell flood insurance policies publicly-available information, industry being made to extend the expiration and adjust flood insurance claims under performance data, and other criteria date with no change to the burden hours their own names based on an listed in 44 CFR 62.24 and the or to the information collected on Form Arrangement with the Federal Insurance Arrangement, 44 CFR part 62, Appendix 226. and Mitigation Administration (FIMA) A. Private insurance companies are Type of Review: Extension (without published at 44 CFR part 62, Appendix encouraged to supplement this change). A. information with customer satisfaction Affected Public: Businesses. The WYO insurers retain an expense surveys, industry awards or recognition, Estimated Number of Respondents: allowance and remit the remaining or other objective performance data. In 100. premium to the Federal Government. addition, private insurance companies Estimated Number of Responses per The WYO insurers pay flood losses and pay loss adjustment expenses based on should work with their vendors and Respondent: 11. a fee schedule through the regulated subcontractor involved in servicing and Estimated Number of Total Annual Responses: 1,100. access of federal funds. In addition, delivering their insurance lines to Estimated Time per Response: 2 under certain circumstances, ensure FEMA receives the information hours. reimbursement for litigation costs, necessary to effectively evaluate the Estimated Total Annual Burden including court costs, attorney fees, criteria set forth in its regulations. Hours: 2,200. judgments, and settlements, are paid by FEMA will send a copy of the offer for Dated: August 1, 2016. FEMA based on documentation the FY 2017 Arrangement, together with submitted by the WYO insurers. related materials and submission Seth Renkema, The complete Arrangement is Branch Chief, Economic Impact Analysis instructions, to all private insurance published in 44 CFR part 62, Appendix companies successfully evaluated by the Branch, U.S. Customs and Border Protection. A. Each year, FEMA is required to [FR Doc. 2016–18503 Filed 8–3–16; 8:45 am] NFIP. If FEMA, after conducting its publish in the Federal Register and evaluation, chooses not to renew a BILLING CODE 9111–14–P make available to the Companies the terms for subscription or re-subscription Company’s participation, FEMA, at its to the Arrangement. 44 CFR part 62, option, may require the continued DEPARTMENT OF HOMELAND Appendix A, Article V.B. performance of all or selected elements SECURITY Signatory Companies should remain of the FY 2016 Arrangement for a period aware that all requirements of the required for orderly transfer or cessation Federal Emergency Management Arrangement, including, but not limited of the business and settlement of Agency to, financial accounting in issues accounts, not to exceed 18 months, 44 [Docket ID FEMA–2016–0019] involving all transactions, must be met. CFR part 62, Appendix A, Article V.C. As set forth in Article II.A.1. of All evaluations, whether successful or National Flood Insurance Program Appendix A to Part 62—Federal unsuccessful, will inform both an (NFIP); Assistance to Private Sector Emergency Management Agency, overall assessment of the WYO Program Property Insurers, Availability of FY Federal Insurance Administration, and any potential changes FEMA may 2017 Arrangement Financial Assistance/Subsidy consider regarding the Arrangement in Arrangement, the Company is future fiscal years. AGENCY: Federal Emergency responsible for meeting all fiduciary Management Agency, DHS. Any private insurance company with responsibilities for control and ACTION: Notice. disbursement of funds in connection questions may contact FEMA in writing: with policy administration. This DHS/FEMA, Federal Insurance and SUMMARY: Each year, the Federal Mitigation Administration, Attn: Lloyd includes ensuring that all accounting for Emergency Management Agency A. Hake, Product Delivery Division policy administration is correct. If errors (FEMA) is required by the Write-Your- Director, Federal Insurance and are made in policy administration, the Own (WYO) Program Financial Company shall be responsible for Mitigation Administration, FEMA, 400 Assistance/Subsidy Arrangement reimbursing any incorrect allocations, C. St. SW., Suite 313, Washington, DC (Arrangement) to notify private assessments, or other moneys 20472; 202–646–3428 (phone), 202– insurance companies (Companies) and compensated to that company by the 646–7970 (facsimile), or Lloyd.hake@ to make available to the Companies the Federal Government. fema.dhs.gov (email). terms for subscription or re-subscription The Company is responsible for to the Arrangement. In keeping with Authority: 44 CFR part 62, Appendix A, ensuring that all activities meet the that requirement, this notice provides Article V.B. requirements of this Arrangement and of the terms to the Companies to subscribe Dated: July 29, 2016. the NFIP Financial Control Plan, 44 CFR or re-subscribe to the Arrangement. part 62, Appendix B. The NFIP WYO Roy E. Wright, FOR FURTHER INFORMATION CONTACT: Standards Committee may take remedial Deputy Associate Administrator for Insurance Lloyd A. Hake, Product Delivery action in the event any such conduct is and Mitigation, Federal Emergency Division Director, Federal Insurance and not corrected. Management Agency. Mitigation Administration, FEMA, 400 FEMA encourages all private [FR Doc. 2016–18517 Filed 8–3–16; 8:45 am] C. St. SW., Suite 313, Washington, DC insurance companies wishing to BILLING CODE 9111–52–P 20472; 202–646–3428 (phone), 202– participate in the WYO Program for FY sradovich on DSK3GMQ082PROD with NOTICES 646–7970 (facsimile), or Lloyd.hake@ 2017 to contact the NFIP at fema.dhs.gov (email). Kevin.Brown4@fema.dhs.gov by SUPPLEMENTARY INFORMATION: Under the September 4, 2016. Prior participation Write-Your-Own (WYO) Program in the WYO Program does not guarantee Financial Assistance/Subsidy that FEMA will approve continued Arrangement (Arrangement), 74 (as of participation. FEMA will evaluate July 27, 2016) private sector property requests to participate in light of VerDate Sep<11>2014 18:12 Aug 03, 2016 Jkt 238001 PO 00000 Frm 00031 Fmt 4703 Sfmt 9990 E:\FR\FM\04AUN1.SGM 04AUN1


Document Created: 2016-08-04 02:53:20
Document Modified: 2016-08-04 02:53:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactLloyd A. Hake, Product Delivery Division Director, Federal Insurance and Mitigation Administration, FEMA, 400 C. St. SW., Suite 313, Washington, DC 20472; 202-646-3428 (phone), 202-646-7970 (facsimile), or [email protected] (email).
FR Citation81 FR 51460 
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR