As the mandatory compliance date for the new rules regarding private flood insurance are rapidly approaching each financial institution must ensure it is ready for the July 1, 2019 implementation date. Fortunately, there are a few things that can be done to ensure compliance.
Step 1: Understand the Rule
The first step to being ready for the July 1, 2019 implementation date is to fully understand the rule. While you might think that the rule should be very simple (and it can be if an insurance policy has the Compliance Aid), there are some real complexities that make it imperative for financial institutions to ensure they understand the rule.
To understand the new rules on private flood insurance, there are really two ways to learn the rule. The first way is to learn the rule yourself. This involves reading the actual issuance by the joint agencies (doesn’t that sound fun?) and then trying to figure out what exactly is important and what it all means. While some of us are up for that task, some of us prefer to be told what we need to know - which can be done by having someone lead us through the program.
Note: If you are interested, we have a quick video webinar on the new private flood insurance rules here.
Step 2: Train Your Staff
The second step to be prepared for the new rules on the mandatory acceptance of private flood insurance is to ensure our staff are fully trained. The best way to do this is to create checklists and uniform procedures for your staff to follow. This can be done a number of different ways, but it is important to ensure that all steps align with the actual rules themselves, ensuring that any such procedures are in compliance.
Step 3: Implement The Rule Early
While the new private flood insurance rules aren’t required until July 1, 2019, financial institutions have the option to implement the new rules prior to this time. This means that you have the option to begin following the new rules as early as today. By implementing the rules early, financial institutions are able to test their procedures and processes to ensure that compliance with the new rule is met.
The full curriculum to our Compliance Class (video webinar) on private flood insurance can be found at https://www.compliancecohort.com/video-webinar-private-flood-insurance-2019-final-rule