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)

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


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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.

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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