Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Notices 3891 

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

National Flood Insurance Program 

(NFIP); Assistance to Private Sector 

Property Insurers, Notice of FY 2026 

Arrangement 

AGENCY: Federal Emergency 

Management Agency, Department of 

Homeland Security. 

ACTION: Notice. 

SUMMARY: The Federal Emergency 

Management Agency announces the 

Fiscal Year 2026 Financial Assistance/ 

Subsidy Arrangement for private 

property insurers interested in 

participating in the National Flood 

Insurance Program’s Write Your Own 

Program. 

DATES: Interested insurers must submit 

intent to subscribe or re-subscribe to the 

Arrangement by May 15, 2025. 

FOR FURTHER INFORMATION CONTACT: 

Karolyn Kiss, Federal Insurance 

Directorate (FID), Resilience FEMA, 400 

C St. SW, Washington, DC 20472 (mail); 

(202) 646–3140 (phone); or 

karolyn.kiss@fema.dhs.gov (email). 

SUPPLEMENTARY INFORMATION: 

I. Background 

The National Flood Insurance Act of 

1968 (NFIA) (42 U.S.C. 4001 et seq.) 

authorizes the Administrator of the 

Federal Emergency Management Agency 

(FEMA) to establish and carry out a 

National Flood Insurance Program 

(NFIP) to enable interested persons to 

purchase flood insurance. See 42 U.S.C. 

4011(a). Under the NFIA, FEMA may 

use insurance companies and other 

insurers, insurance agents and brokers, 

and insurance adjustment organizations 

as fiscal agents of the United States to 

help it carry out the NFIP. See 42 U.S.C. 

4071. To this end, FEMA may ‘‘enter 

into any contracts, agreements, or other 

appropriate arrangements’’ with private 

insurance companies to use their 

facilities and services in administering 

the NFIP on such terms and conditions 

as they agree upon. See 42 U.S.C. 

4081(a). 

Pursuant to this authority, FEMA 

enters into a standard Financial 

Assistance/Subsidy Arrangement 

(Arrangement) with private sector 

property insurers, also known as Write 

Your Own (WYO) companies, to sell 

NFIP flood insurance policies under 

their own names and adjust and pay 

claims arising under the Standard Flood 

Insurance Policy (SFIP). Each 

Arrangement entered into by a WYO 

company must be in the form and 

substance of the standard Arrangement, 

a copy of which is published in the 

Federal Register annually, at least 6 

months prior to becoming effective. See 

44 CFR 62.23(a). To learn more about 

FEMA’s WYO Program, please visit 

https://nfipservices.floodsmart.gov/ 

write-your-own-program. 

II. Notice of Availability 

Insurers interested in participating in 

the WYO Program for Fiscal Year 2026 

must contact Karolyn Kiss at 

karolyn.kiss@fema.dhs.gov by May 15, 

2025. 

Prior participation in the WYO 

Program does not guarantee 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 

FY 2026 Arrangement, copied below. 

FEMA encourages private insurance 

companies 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 

other service providers 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 2026 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 2025 Arrangement for a period 

required for orderly transfer or cessation 

of the business and settlement of 

accounts, not to exceed forty-eight (48) 

months. See FY 2025 Arrangement, 

Article II.D. 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 at: 

Karolyn Kiss, Federal Insurance 

Directorate, Resilience, FEMA, 400 C St. 

SW, Washington, DC 20472 (mail); (202) 

646–3140 (phone); or karolyn.kiss@

fema.dhs.gov (email). 

III. Fiscal Year 2026 Arrangement 

Pursuant to 44 CFR 62.23(a), FEMA 

must publish the Arrangement at least 

six months prior to the Arrangement 

becoming effective. The FY 2026 

Arrangement provided below is 

substantially similar to the previous 

year’s Arrangement, but includes the 

following changes: 

1. For clarity, throughout the 

Arrangement, FEMA is making minor 

changes by adding ‘‘insurance’’ before 

‘‘agents’’ to clarify the type of ‘‘agent’’ 

when referring to licensed insurance 

professionals that sell property and 

flood insurance and have an agency 

contract with the Company, 

distinguishing the term from other types 

of ‘‘agents’’ referred to in the 

Arrangement (e.g., ‘‘fiscal agent,’’ 

‘‘customer service agents’’ and ‘‘direct 

servicing agent’’). 

2. For clarity, throughout the 

Arrangement, FEMA is substituting all 

references to ‘‘the Act’’ with the 

‘‘NFIA,’’ as abbreviated in Article I.C. 

3. In Article I.A, FEMA is deleting 

‘‘(as defined at III.N)’’ because a 

definition section is proposed in new 

Article I.D. 

4. In new Article I.D, FEMA is adding 

definitions for the terms ‘‘Service 

Provider,’’ ‘‘Vendor’’ and ‘‘Contractor,’’ 

as they are used throughout the 

Arrangement. 

5. In Article II.D.4.c, FEMA is deleting 

‘‘[i]n the event of a transfer of services 

provided’’ for clarity, because it is 

repetitive and could cause confusion. 

The first paragraph in Article II.D.4 

already states that it is regarding a 

required transfer of activities. 

6. In Article II.D.6, FEMA is making 

a minor grammatical change by deleting 

the word ‘‘other’’ and, in Article 

II.D.6.b, it is clarifying that the 

Company must provide the dates for the 

renewal or transfer of policies in its 

detailed transfer plan. 

7. In Article III.A.1.g, FEMA is 

clarifying that the Company is 

responsible for the payment of 

insurance brokers’ commissions, as well 

as insurance agents’, in alignment with 

Article IV.A and Article IV.B.2. 

8. For clarity, in Article III.A.3.a, 

FEMA is making a minor, nonsubstantive change by substituting ‘‘as 

much as possible’’ with ‘‘to the extent 

possible.’’ 

9. In new Article III.A.5.b, FEMA is 

adding a new provision in the 

Arrangement requiring a Vendor 

Oversight Plan to be included in the 

Operations Plan describing the 

Company’s oversight of its Vendors, 

pursuant to 44 CFR 62.24(d). 

10. FEMA is redesignating the 

remaining subparagraphs in Article 

III.A.5 as III.A.5.c through III.A.5.j. 

11. In newly-redesignated Article 

III.A.5.f, FEMA is requiring WYO 


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Companies to include in their 

distribution plan the average rate of 

commissions they pay insurance agents 

and brokers ‘‘for new business and 

renewals,’’ and substituting ‘‘producers’’ 

with ‘‘insurance agents and brokers.’’ 

12. In newly-redesignated Article 

III.A.5.g.iii, FEMA is adding 

‘‘independent adjusters’’ to the list of 

stakeholders the Company has to 

consider when providing key messaging 

during catastrophic events. 

13. For clarity and alignment with the 

definition in new Article I.D, in newlyredesignated Article III.A.5.i, FEMA is 

substituting ‘‘vendors or contractors’’ 

with ‘‘Service Providers.’’ 

14. In newly-redesignated Article 

III.A.5.j.i and in Article III.M, 

subparagraphs III.M.1, III.M.2.a.ii and 

III.M.2.b, FEMA is updating the 

reference to the system security 

requirements specified by the National 

Institute of Standards and Technology, 

‘‘Protecting Controlled Unclassified 

Information in Nonfederal Systems and 

Organizations,’’ to the latest version, 

Revision 3 (May 2024). FEMA is also 

updating the redesignated citation in 

Article III.M.2.b. 

15. For clarity and alignment, in 

newly-redesignated Article III.A.5.j.ii, 

FEMA is adding ‘‘pursuant to Article 

III.M’’ at the end of the subparagraph. 

16. For clarity, in Article III.F.2.a, 

FEMA is making a minor, nonsubstantive change by substituting 

‘‘Program’’ with ‘‘FEMA.’’ 

17. For clarity, in Article III.H.4, 

FEMA is making minor, non-substantive 

changes by deleting ‘‘notify agents of 

flood insurance’’ and adding ‘‘and.’’ 

18. In Article III.I.5, FEMA is adding 

‘‘[t]he Company must:’’ and making 

minor, non-substantive grammatical 

changes. 

19. In Article III.N, FEMA is clarifying 

that the Company must ensure its 

Service Providers act consistently with 

the NFIA and written standards and 

procedures issued by FEMA, in addition 

to the Arrangement and FEMA’s 

regulations and guidance. 

20. In Article IV.A, FEMA is making 

a minor, non-substantive change to 

clarify that the Company is liable for 

insurance broker commissions, as well 

as insurance agents’, in alignment with 

Article III.A.1.g and Article IV.B.2. 

21. In Article IV.B.1, FEMA is 

changing the reference to the source 

used to obtain the data for the property/ 

casualty industry, from A.M. Best to the 

National Association of Insurance 

Commissioners (NAIC). A.M. Best’s data 

is derived from the NAIC. This will 

enable FEMA to use the latest available 

data gathered directly from the primary 

source. FEMA is also making a minor, 

non-substantive change by substituting 

‘‘‘Other Act.,’ ‘Gen. Exp.’ And ‘Taxes’’’ 

and spelling it out as ‘‘‘Other 

Acquisition,’ ‘General Expenses’ and 

‘Taxes.’’’ 

22. In Article IV.B.3, FEMA is making 

a non-substantive change by 

substituting the term ‘‘Growth Bonus’’ 

with ‘‘Growth and Retention Bonus,’’ 

without any material change to the 

provision, to acknowledge the current 

practice that bonuses are paid for both 

growth and retention potential. 

23. In Article IV.E.3.a, FEMA added 

‘‘and broker’’ to clarify that it will not 

reimburse the Company for awards or 

judgements for damages and costs to 

defend litigation involving issues of 

broker negligence, errors or omissions, 

pursuant to 42 U.S.C. 4081(c). 

24. FEMA is adding two new 

subparagraphs to Article IV.E.3, 

subparagraphs IV.E.3.g and IV.E.3.h, to 

clarify that FEMA will not reimburse 

the Company for awards, judgments and 

costs to defend litigation when a default 

is entered against it, or the Company 

fails to remove a case filed in State court 

to Federal court in a timely manner. 

25. In Article V.A.3, FEMA is making 

a minor, non-substantive change by 

deleting ‘‘Allocated and unallocated’’ 

and leaving the more general term ‘‘Loss 

Adjustment Expenses,’’ to better align 

with the language in Article IV.C. 

26. In the last Article, FEMA is 

making a minor correction in 

numbering, from ‘‘Article XV’’ to 

‘‘Article XIV.’’ The previous WYO 

Arrangement had a non-substantive 

error in numbering and FEMA is 

clarifying it. 

The Fiscal Year 2026 Arrangement 

reads as follows: 

Financial Assistance/Subsidy 

Arrangement 

Article I. General Provisions 

A. Parties. The parties to the Financial 

Assistance/Subsidy Arrangement are the 

Federal Emergency Management Agency 

(FEMA) and the Company. This 

Arrangement is solely between FEMA 

and the Company, and in no instance 

shall any of the Company’s Service 

Providers have any rights under this 

Arrangement. 

B. Purpose. The purpose of this 

Financial Assistance/Subsidy 

Arrangement is to authorize the 

Company to sell and service flood 

insurance policies made available 

through the National Flood Insurance 

Program (NFIP) and adjust and pay 

claims arising under such policies as 

fiscal agents of the Federal Government. 

C. Authority. This Financial 

Assistance/Subsidy Arrangement is 

authorized under the National Flood 

Insurance Act of 1968 (NFIA) (42 U.S.C. 

4001 et seq.), and in particular, section 

1345(a) of the NFIA (42 U.S.C. 4081(a)), 

as implemented by 44 CFR 62.23 and 

62.24. 

D. Definitions. 

1. Service Provider means Vendors, 

Contractors, and independent adjusters 

working on behalf of the Company. 

2. Vendor means any entity hired by 

the Company to carry out administrative 

and operational responsibilities of the 

Company under the Arrangement, 

including, but not limited to, issuing 

and renewing policies, policy 

management, rating, collecting 

premiums and making refunds, claims 

handling, customer service, reporting 

and compliance requirements. In this 

context, Vendor does not include 

adjusters, insurance agents or brokers, 

or Company employees. 

3. Contractor means any other thirdparty Service Provider that does not 

meet the definition of Vendor. In this 

context, Contractor does not include 

adjusters, insurance agents or brokers, 

or Company employees. 

Article II. Commencement and 

Termination 

A. The effective period of this 

Arrangement begins on October 1, 2025, 

and terminates no earlier than 

September 30, 2026, subject to 

extension pursuant to Articles II.D and 

II.I. FEMA may provide financial 

assistance only for policy applications, 

renewals, and endorsements accepted 

by the Company during this period 

pursuant to the Program’s effective date, 

underwriting, and eligibility rules. 

B. Pursuant to 44 CFR 62.23(a), FEMA 

will publish the Arrangement and the 

terms for subscription or re-subscription 

for Fiscal Year 2027 in the Federal 

Register no later than April 1, 2026. 

Within ninety (90) calendar days of 

such publication, the Company must 

notify FEMA of its intent to re-subscribe 

to the WYO Program for the following 

term. 

C. Requesting Participation in WYO 

Program. Insurers interested in 

participating in the WYO Program, that 

have never participated or are returning 

to the Program after a period of nonparticipation, must submit a written 

request to participate. 

1. Participation is then contingent on 

submission of both: 

a. A completed application package, 

the requirements and contents of which 

FEMA will outline in its written 

response to the request to participate. 

b. A completed operations plan, 

whose requirements and contents are 


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outlined at Article III.A.5 of this 

Arrangement. 

2. Insurers that are already 

participating in the Program must 

submit their operations plan within 

ninety (90) calendar days as outlined in 

Article III.A.5 of this Arrangement. 

D. Uninterrupted Service to 

Policyholders and Transfer of Data and 

Records. 

1. To ensure uninterrupted service to 

policyholders, the Company must notify 

FEMA within thirty (30) calendar days 

from when the Company elects not to 

re-subscribe to the WYO Program during 

the term of this Arrangement, but no 

later than ninety (90) calendar days 

from the publication in the Federal 

Register of the Fiscal Year 2027 

Arrangement. 

2. The Company must notify FEMA as 

soon as possible, but no later than thirty 

(30) calendar days from when the 

Company elects to no longer sell or 

renew NFIP policies in a community as 

defined in 44 CFR 59.1. 

3. If so notified under Article II.D.1 or 

II.D.2, or if FEMA chooses not to renew 

the Company’s participation, FEMA, at 

its option, may require the continued 

performance of all or selected elements 

of this Arrangement for the period 

required for orderly transfer or cessation 

of business and settlement of accounts, 

not to exceed forty-eight (48) months 

after the end of this Arrangement 

(September 30, 2026), and may either 

require transfer of activities, in whole or 

in part, to FEMA under Article II.D.4 or 

allow transfer of activities, in whole or 

in part, to another WYO company under 

Article II.D.6. 

4. FEMA may require the Company to 

transfer all activities under this 

Arrangement to FEMA. Within thirty 

(30) calendar days of FEMA’s election of 

this option, the Company must deliver 

to FEMA the following: 

a. A plan for the orderly transfer to 

FEMA of any continuing responsibilities 

in administering the policies issued by 

the Company under the Program 

including provisions for coordination 

assistance. 

b. All data received, produced, and 

maintained through the life of the 

Company’s participation in the Program, 

including certain data, as determined by 

FEMA, in a standard format and 

medium. 

c. All claims and policy files, 

including those pertaining to receipts 

and disbursements that have occurred 

during the life of each policy. The 

Company must provide FEMA with a 

report showing, on a policy basis, any 

amounts due from or payable to 

policyholders, insurance agents, 

brokers, and others as of the transition 

date. 

d. All funds in its possession with 

respect to any policies transferred to 

FEMA for administration and the 

unearned expenses retained by the 

Company. 

e. A point of contact within the 

Company responsible for addressing 

issues that may arise from the 

Company’s previous participation under 

the WYO Program. 

5. Within ninety (90) calendar days of 

FEMA receiving the Company’s data 

and supporting documentation, FEMA 

will notify the Company of the date that 

FEMA will complete the transfer. 

6. FEMA may allow the Company to 

transfer all activities under this 

Arrangement to one or more WYO 

companies. Prior to commencing such 

transfer, the Company must submit, and 

FEMA must approve, a formal request. 

Such request must include the 

following: 

a. An assurance of uninterrupted 

service to policyholders. 

b. A detailed transfer plan providing 

for either: (1) the renewal of the 

Company’s NFIP policies by one or 

more WYO companies and the date 

such transfer of NFIP policy renewals 

will be effective; or (2) the transfer of 

the Company’s NFIP policies to one or 

more WYO companies and the date of 

the transfer of policies. 

c. A description of who the 

responsible party will be for liabilities 

relating to losses incurred by the 

Company in this or preceding 

Arrangement years. 

d. A point of contact within the 

Company responsible for addressing 

issues that may arise from the 

Company’s previous participation under 

the WYO Program. 

7. FEMA will not reimburse the 

Company for costs associated with the 

transfer of activities under this 

Arrangement to FEMA or another WYO 

Company. 

8. Failure to timely transfer data. The 

Company agrees to hold FEMA harmless 

for all costs, liabilities, and expenses, 

including litigation expenses, incurred 

due to the Company’s failure to timely 

transfer the data and information 

requested by FEMA or another WYO 

Company. 

E. Cancellation by FEMA. 

1. FEMA may cancel financial 

assistance and this Arrangement upon 

thirty (30) calendar days written notice 

to the Company stating one or more of 

the following reasons for such 

cancellation: 

a. Fraud or misrepresentation by the 

Company subsequent to the inception of 

the Arrangement. 

b. Nonpayment to FEMA of any 

amount due. 

c. Material failure to comply with the 

requirements of this Arrangement or 

with the written standards, procedures, 

or guidance issued by FEMA relating to 

the NFIP and applicable to the 

Company. 

d. Failure to maintain compliance 

with WYO company participation 

criteria at 44 CFR 62.24. 

e. Any other cause so serious or 

compelling a nature that affects the 

Company’s present responsibility. 

2. If FEMA cancels this Arrangement 

pursuant to Article II.E.1, FEMA may 

require the transfer of administrative 

responsibilities, and the transfer of data 

and records as provided in Article II.D.4 

and Article II.D.7–8. If transfer is 

required, the Company must remit to 

FEMA the unearned expenses retained 

by the Company. In such event, FEMA 

will assume all obligations and 

liabilities owed to policyholders under 

such policies, arising before and after 

the date of transfer. 

3. As an alternative to the transfer of 

the policies to FEMA pursuant to 

Article II.E.2, FEMA will consider a 

proposal, if it is made by the Company, 

for the assumption of responsibilities by 

another WYO company as provided in 

Article II.D.6 and Article II.D.7–8. 

F. The Company shall notify FEMA, 

immediately, if: 

1. An independent financial rating 

company downgrades its financial 

strength during its period of 

performance under this Arrangement; or 

2. It receives an order or directive 

making it unable to carry out its 

obligations under this Arrangement by 

the insurance industry regulatory body 

of any jurisdiction (e.g., Department of 

Insurance or Commissioner or 

Superintendent of Insurance) or court of 

law to which the Company is subject, 

including but not limited to being 

placed in receivership or run-off status 

by a State insurance regulatory body. 

G. In the event that the Company is 

unable or otherwise fails to carry out its 

obligations under this Arrangement for 

reasons set out in Article II.F.2: 

1. The Company agrees to transfer, 

and FEMA will accept, any and all 

WYO policies issued by the Company 

and in force as of the date of such 

inability or failure to perform. In such 

event FEMA will assume all obligations 

and liabilities within the scope of the 

Arrangement owed to policyholders 

arising before and after the date of 

transfer, and the Company will 

immediately transfer to FEMA all 

needed records and data, pursuant to 

Article II.D.4 and Article II.D.7–8, and 

all funds in its possession with respect 


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to all such policies transferred and the 

unearned expenses retained by the 

Company. As an alternative to the 

transfer of the policies to FEMA, FEMA 

will consider a proposal, if it is made by 

the Company, for the assumption of 

responsibilities under this Arrangement 

by another WYO company as provided 

by Article II.D.6 and Article II.D.7–8. 

2. If there is ongoing litigation, the 

Company must file a motion to stay the 

proceedings on any and all pending 

litigation within the scope of the 

Arrangement, and FEMA or, if approved 

by FEMA, another WYO company, will 

assume full litigation responsibility. 

H. In the event the NFIA is amended, 

repealed, expires, or if FEMA is 

otherwise without authority to continue 

the Program, FEMA may cancel 

financial assistance under this 

Arrangement for any new or renewal 

business, but the Arrangement will 

continue for policies in force that shall 

be allowed to run their term under the 

Arrangement. 

I. If FEMA does not publish the Fiscal 

Year 2027 Arrangement in the Federal 

Register on or before April 1, 2026, then 

FEMA may require the continued 

performance of all or selected elements 

of this Arrangement through December 

31, 2027, but such extension may not 

exceed the expiration of the six (6) 

month period following publication of 

the Fiscal Year 2027 Arrangement in the 

Federal Register. 

Article III. Undertakings of the 

Company 

A. Responsibilities of the Company. 

1. Policy Issuance and Maintenance. 

The Company must meet all 

requirements of the Financial Control 

Plan and any guidance issued by FEMA. 

The Company is responsible for the 

following: 

a. Compliance with Rating 

Procedures. 

b. Eligibility Determinations. 

c. Policy Issuances. 

d. Policy Endorsements. 

e. Policy Cancellations. 

f. Policy Correspondence. 

g. Payment of Insurance Agents’ and 

Brokers’ Commissions. 

h. Fund management, including the 

receipt, recording, disbursement, and 

timely deposit of NFIP funds. 

2. The Company must provide a live 

customer service agent that (1) is 

accessible to all policyholders via 

telephone during business days, and (2) 

can resolve commonplace customer 

service issues. 

3. Claims Processing. 

a. In general. The Company must 

process all claims consistent with the 

Standard Flood Insurance Policy, 

Financial Control Plan, Claims Manual, 

other guidance adopted by FEMA, and 

to the extent possible, with the 

Company’s standard business practices 

for its non-NFIP policies. 

b. Adjuster registration. The Company 

may not use an independent adjuster to 

adjust a claim unless the independent 

adjuster: 

i. Holds a valid Flood Control Number 

issued by FEMA; or 

ii. Participates in the Flood Adjuster 

Capacity Program. 

c. Claim reinspections. The Company 

must cooperate with any claim 

reinspection by FEMA. 

4. Reports. The Company must certify 

its business under the WYO Program 

through monthly financial reports in 

accordance with the requirements of the 

Pivot Use Procedures. The Company 

must follow the Financial Control Plan 

and the WYO Accounting Procedures 

Manual. FEMA will validate and audit, 

in detail, these data and compare the 

results against Company reports. 

5. Operations Plan. Within ninety (90) 

calendar days of the commencement of 

this Arrangement, the Company must 

submit a written Operations Plan to 

FEMA describing its efforts to perform 

under this Arrangement. The plan must 

include the following: 

a. Private Flood Insurance Separation 

Plan. If applicable, a description of the 

Company’s policies, procedures, and 

practices separating their NFIP flood 

insurance lines of business from their 

non-NFIP flood insurance lines of 

business, including its implementation 

of Article III.F. 

b. Vendor Oversight Plan. If the 

Company uses a Vendor to carry out any 

of its responsibilities under this 

Arrangement, the Company shall submit 

to FEMA a Vendor Oversight Plan, and 

this Plan must: 

i. Identify the activities and 

responsibilities that will be carried out 

by the Vendor. 

ii. Include a description of the 

oversight measures the Company will 

perform of its Vendor to ensure 

compliance with the NFIA, this 

Arrangement, regulations, written 

standards, procedures, and guidance 

issued by FEMA. 

c. Marketing Plan. A marketing plan 

describing the Company’s forecasted 

growth, efforts to achieve that growth, 

and ability to comply with any 

marketing guidelines provided by 

FEMA. 

d. Policy Retention Plan. A retention 

plan describing the Company’s efforts to 

retain and renew policies and methods 

of communicating with policyholders 

on renewals. 

e. Customer Service Plan. A 

description of overall customer service 

practices, including ongoing and 

planned improvement efforts. 

f. Distribution Plan. A description of 

the Company’s NFIP flood insurance 

distribution network, including 

anticipated number of insurance agents, 

efforts to train those insurance agents, 

and the average rate of commissions for 

new business and renewals paid to 

insurance agents and brokers by State. 

g. Catastrophic Claims Handling Plan. 

A catastrophic claims handling plan 

describing how the Company will 

respond and maintain service standards 

in catastrophic flood events, including: 

i. Deploying mobile or temporary 

claims centers to provide immediate 

policyholder assistance, including 

submission of notice of loss and claim 

status information. 

ii. Preparing people, processes, and 

tools for claims processing in remote 

work scenarios. 

iii. Preparing communications in 

advance for readiness throughout the 

year including a suite of printed and 

digital materials (e.g., advertisements, 

educational materials, social media 

messaging, website blogs and 

announcements) that provide key 

messaging to stakeholders, including 

policyholders, insurance agents, 

independent adjusters and the public 

following a catastrophic flood event. 

iv. Identifying the core areas of 

information technology that need to be 

scaled pre-event or are scalable postevent. 

v. Ensuring the availability of 

sufficient adjusters and examiners to 

handle sudden surge in claims filings 

and handling. 

h. Business Continuity Plan. A 

business continuity plan identifying 

threats and risks facing the Company’s 

NFIP-related operations and how the 

Company will maintain operations in 

the event of a disaster affecting its 

operational capabilities. 

i. Privacy Protection Plan. A privacy 

protection plan that describes the 

Company’s standards and required 

procedures for using and maintaining 

personally identifiable information, in 

its possession and control or in the 

possession or control of its Service 

Providers. 

j. System Security Plan. A system 

security plan that describes system 

boundaries, system environments of 

operation, how security requirements 

are implemented, and the relationships 

with or connections to other systems, 

including plans of action that describe 

how unimplemented security 

requirements will be met and how any 

planned mitigations will be 


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implemented, prepared in accordance 

with either: 

i. National Institute of Standards and 

Technology (NIST) Special Publication 

(SP) 800–171 ‘‘Protecting Controlled 

Unclassified Information in Nonfederal 

Information Systems and 

Organizations,’’ Revision 3, https://

csrc.nist.gov/pubs/sp/800/171/r3/final; 

or 

ii. Another comparable standard 

deemed acceptable by FEMA, pursuant 

to Article III.M. 

B. Time Standards. WYO companies 

must meet the time standards provided 

below. Time will be measured from the 

date of receipt through the date the task 

is completed. In addition to the 

standards set forth below, all functions 

performed by the Company must be in 

accordance with the highest reasonably 

attainable quality standards generally 

used in the insurance and data 

processing field. Applicable time 

standards are: 

1. Application Processing—fifteen 

(15) business days (Note: if the policy 

cannot be sent due to insufficient or 

erroneous information or insufficient 

funds, the Company must send a request 

for correction or added moneys within 

ten (10) business days). 

2. Renewal processing—seven (7) 

business days. 

3. Endorsement processing—fifteen 

(15) business days. 

4. Cancellation processing—fifteen 

(15) business days. 

5. File examination—seven (7) 

business days from the day the 

Company receives the final report. 

6. Claims draft processing—seven (7) 

business days from completion of file 

examination. 

7. Claims adjustment—forty-five (45) 

calendar days average from the receipt 

of Notice of Loss (or equivalent) through 

completion of examination. 

8. Upload transactions to Pivot—one 

(1) business day. 

C. Policy Issuance. 

1. The flood insurance subject to this 

Arrangement must be only that 

insurance written by the Company in its 

own name pursuant to the NFIA. 

2. The Company must issue policies 

under the regulations prescribed by 

FEMA, in accordance with the NFIA, on 

a form approved by FEMA. 

3. The Company must issue all 

policies in consideration of such 

premiums and upon such terms and 

conditions and in such States or areas 

or subdivisions thereof as may be 

designated by FEMA and only where 

the Company is licensed by State law to 

engage in the property insurance 

business. 

D. Installment Plans for Premium 

Payments. During the term of the 

Arrangement, FEMA may require the 

Company to offer a monthly premium 

installment payment option. 

E. Lapse of Authority or 

Appropriation. FEMA may require the 

Company to discontinue issuing 

policies subject to this Arrangement 

immediately in the event Congressional 

authorization or appropriation for the 

NFIP lapses. 

F. Separation of Finances and Other 

Lines of Flood Insurance. 

1. The Company must separate 

Federal flood insurance funds from all 

other Company accounts, at a bank or 

banks of its choosing for the collection, 

retention and disbursement of Federal 

funds relating to its obligation under 

this Arrangement, less the Company’s 

expenses as set forth in Article IV. The 

Company must remit all funds not 

required to meet current expenditures to 

the United States Treasury, in 

accordance with the provisions of the 

WYO Accounting Procedures Manual. 

2. Other Undertakings of the 

Company. 

a. Clear communication. If the 

Company also offers insurance policies 

covering the peril of flood outside of the 

NFIP in any geographic area in which 

FEMA authorizes the purchase of flood 

insurance, the Company must ensure 

that all public communications 

(whether written, recorded, electronic, 

or other) regarding non-NFIP insurance 

lines would not lead a reasonable 

person to believe that the NFIP, FEMA, 

or the Federal Government in any way 

endorses, sponsors, oversees, regulates, 

or otherwise has any connection with 

the non-NFIP insurance line. The 

Company may assure compliance with 

this requirement by prominently 

including in such communications the 

following statement: ‘‘This insurance 

product is not affiliated with the 

National Flood Insurance Program.’’ 

b. Data protection. The Company may 

not use non-public data, information, or 

resources obtained in course of 

executing this Arrangement to further or 

support any activities outside the scope 

of this Arrangement. 

G. Claims. The Company must 

investigate, adjust, settle, and defend all 

claims or losses arising from policies 

issued under this Arrangement. 

Payment of flood insurance claims by 

the Company bind FEMA, subject to 

appeal. 

H. Compliance with Agency 

Standards and Guidelines. 

1. The Company must comply with 

the NFIA, regulations, written 

standards, procedures, and guidance 

issued by FEMA relating to the NFIP 

and applicable to the Company, 

including, but not limited to the 

following: 

a. WYO Program Financial Control 

Plan. 

b. Pivot Use Procedures. 

c. NFIP Flood Insurance Manual. 

d. NFIP Claims Manual. 

e. NFIP Litigation Manual. 

f. WYO Accounting Procedures 

Manual. 

g. WYO Company Bulletins. 

2. The Company must market flood 

insurance policies in a manner 

consistent with marketing guidelines 

established by FEMA. 

3. FEMA may require the Company to 

collect customer service information to 

monitor and improve its program 

delivery. 

4. The Company must notify its 

insurance agents of the requirement to 

comply with State regulations regarding 

flood insurance agent education and 

training opportunities, and assist FEMA 

in periodic assessment of insurance 

agent training needs. 

I. Compliance with Appeals Process. 

1. In general. FEMA will notify the 

Company when a policyholder files an 

appeal. After notification, the Company 

must provide FEMA the following 

information: 

a. All records created or maintained 

pursuant to this Arrangement requested 

by FEMA. 

b. A comprehensive claim file 

synopsis, redacted of personally 

identifiable information, that includes a 

summary of the appeal issues, the 

Company’s position on each issue, and 

any additional relevant information. If, 

in the process of writing the synopsis, 

the Company determines that it can 

address the issue raised by the 

policyholder on appeal without further 

direction, it must notify FEMA. The 

Company will then work directly with 

the policyholder to achieve resolution 

and update FEMA upon completion. 

The Company may have a claims 

examiner review the file who is 

independent from the original decision 

and who possesses the authority to 

overturn the original decision if the 

facts support it. 

2. Cooperation. The Company must 

cooperate with FEMA throughout the 

appeal process until final resolution. 

This includes adhering to any written 

appeals guidance issued by FEMA. 

3. Resolution of Appeals. FEMA will 

close an appeal when: 

a. FEMA upholds the denial by the 

Company. 

b. FEMA overturns the denial by the 

Company and all necessary actions that 

follow are completed. 

c. The Company independently 

resolves the issue raised by the 

policyholder without further direction. 


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d. The policyholder voluntarily 

withdraws the appeal. 

e. The policyholder files litigation. 

4. Processing of Additional Payments 

from Appeal. The Company must follow 

established NFIP adjusting practices and 

claim handling procedures for appeals 

that result in additional payment to a 

policyholder when FEMA does not 

explicitly direct such payment during 

the review of the appeal. 

5. Time Standards. The Company 

must: 

a. Provide FEMA with requested files 

pursuant to Article III.I.1.a—ten (10) 

business days after request. 

b. Provide FEMA with a 

comprehensive claim file synopsis 

pursuant to Article III.I.1.b—ten (10) 

business days after request. 

c. Respond to inquiries from FEMA 

regarding an appeal—ten (10) business 

days after inquiry. 

d. Inform FEMA of any litigation filed 

by a policyholder with a current 

appeal—ten (10) business days of 

notice. 

J. Subrogation. 

1. In general. Consistent with Federal 

law and guidance, the Company must 

use its customary business practices 

when pursuing subrogation. 

2. Referral to FEMA. Pursuant to 44 

CFR 62.23(i)(8), in lieu of the Company 

pursuing a subrogation claim, WYO 

companies may refer such claims to 

FEMA. 

3. Notification. No more than ten (10) 

calendar days after either the Company 

identifies a possible subrogation claim 

or FEMA notifies the Company of a 

possible subrogation claim, the 

Company must notify FEMA of its 

intent to pursue the claim or refer the 

claim to FEMA. 

4. Cooperation. Pursuant to 44 CFR 

62.23(i)(11), the Company must extend 

reasonable cooperation to FEMA’s 

Office of the Chief Counsel on matters 

related to subrogation. 

K. Access to Records. The Company 

must furnish to FEMA such summaries 

and analysis of information including 

claim file information and property 

address, location, and/or site 

information in its records as may be 

necessary to carry out the purposes of 

the NFIA, in such form as FEMA, in 

cooperation with the Company, will 

prescribe. 

L. System for Award Management 

(SAM). The Company must be registered 

in the System for Award Management. 

Such registration must have an active 

status during the period of performance 

under this Arrangement. The Company 

must ensure that its SAM registration is 

accurate and up to date. 

M. Cybersecurity. 

1. In general. Unless the Company 

uses a compliance alternative pursuant 

to Article III.M.2, the Company must 

implement the security requirements 

specified by National Institute of 

Standards and Technology (NIST) 

Special Publication (SP) 800–171 

‘‘Protecting Controlled Unclassified 

Information in Nonfederal Information 

Systems and Organizations’’, Revision 3 

(https://csrc.nist.gov/pubs/sp/800/171/ 

r3/final) for any system that processes, 

stores, or transmits information that 

requires safeguarding or dissemination 

controls pursuant to and consistent with 

law, regulations, this Arrangement, or 

other applicable requirements, 

including information protected 

pursuant to Article XII.C and personally 

identifiable information of NFIP 

applicants and policyholders. Such 

implementation must be validated by a 

third-party assessment organization. 

2. Compliance alternatives. In lieu of 

compliance with Article III.M.1, the 

Company may either: 

a. Provide FEMA with documentation 

that the Company is securing the 

systems subject to the requirements of 

Article III.M.1 with either: 

i. ISO/IEC 27001, https://www.iso.org/ 

isoiec-27001-information-security.html 

ii. NIST Cybersecurity Framework, 

https://csrc.nist.gov/pubs/sp/800/171/ 

r3/final; 

iii. Cybersecurity Maturity Model 

Certification (CMMC 2.0), https://

dodcio.defense.gov/CMMC/; 

iv. Service and Organization Controls 

(SOC) 2, https://www.aicpa.org/ 

interestareas/frc/assuranceadvisory

services/sorhome.html; or 

v. Another comparable standard 

deemed acceptable by FEMA. 

b. Provide a plan of action that 

describes how unimplemented security 

requirements of NIST SP 800–171, rev. 

3, (https://csrc.nist.gov/pubs/sp/800/ 

171/r3/final) will be met and how any 

planned mitigations will be 

implemented as part of the system 

security plan required under Article 

III.A.5.j. 

N. Company’s Service Providers. The 

Company is required to ensure its 

Service Providers are acting consistently 

with the NFIA, this Arrangement, and 

regulations, written standards, 

procedures, and guidance issued by 

FEMA. 

Article IV. Loss Costs, Expenses, 

Expense Reimbursement, and Premium 

Refunds 

A. The Company is liable for 

operating, administrative, and 

production expenses, including any 

State premium taxes, dividends, 

insurance agents’ and brokers’ 

commissions or any other expense of 

whatever nature incurred by the 

Company in the performance of its 

obligations under this Arrangement but 

excluding other taxes or fees, such as 

municipal or county premium taxes, 

surcharges on flood insurance premium, 

and guaranty fund assessments. 

B. Payment for Selling and Servicing 

Policies. 

1. Operating and Administrative 

Expenses. The Company may withhold, 

as operating and administrative 

expenses, other than insurance agents’ 

or brokers’ commissions, an amount 

from the Company’s written premium 

on the policies covered by this 

Arrangement in reimbursement of all of 

the Company’s marketing, operating, 

and administrative expenses, except for 

allocated and unallocated loss 

adjustment expenses described in 

Article IV.C. This amount will equal the 

sum of the average industry expenses 

ratios for ‘‘Other Acquisition’’, ‘‘General 

Expenses’’ and ‘‘Taxes’’ calculated by 

aggregating premiums and expense 

amounts for each of five property 

coverages using direct premium and 

expense information to derive weighted 

average expense ratios. For this purpose, 

FEMA will use the latest available data 

for the property/casualty industry for 

the prior Arrangement year, from the 

National Association of Insurance 

Commissioners (NAIC) annual 

statement in Part III of the Insurance 

Expense Exhibit for the following five 

property coverages: Fire, Allied Lines, 

Farmowners Multiple Peril, 

Homeowners Multiple Peril, and 

Commercial Multiple Peril (non-liability 

portion). 

2. Insurance Agent and Broker 

Compensation. The Company may 

retain fifteen (15) percent of the 

Company’s written premium on the 

policies covered by this Arrangement as 

the commission allowance to meet the 

commissions or salaries of insurance 

agents, brokers, or other entities 

producing qualified flood insurance 

applications and other related expenses. 

3. Growth and Retention Bonus. 

FEMA may increase the amount of 

expense allowance retained by the 

Company depending on the extent to 

which the Company meets the 

marketing goals for the Arrangement 

year contained in marketing guidelines 

established pursuant to Article III.H.2. 

The total growth and retention bonuses 

paid to companies pursuant to this 

Arrangement may not exceed two (2) 

percent of the aggregate net written 

premium collected by all WYO 

companies. FEMA will pay the 

Company the amount of any increase 

after the end of the Arrangement year. 


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C. FEMA will reimburse Loss 

Adjustment Expenses as follows: 

1. FEMA will reimburse unallocated 

loss adjustment expenses to the 

Company pursuant to a ‘‘ULAE 

Schedule’’ coordinated with the 

Company and provided by FEMA. 

2. FEMA will reimburse allocated loss 

adjustment expenses to the Company 

pursuant to a ‘‘Fee Schedule’’ 

coordinated with the Company and 

provided by FEMA. To ensure the 

availability of qualified insurance 

adjusters during catastrophic flood 

events, FEMA may, in its sole 

discretion, temporarily authorize the 

use of an alternative Fee Schedule with 

increased amounts during the term of 

this Arrangement for losses incurred 

during a time frame established by 

FEMA. 

3. FEMA will reimburse special 

allocated loss expenses under 44 CFR 

62.23(i)(9) and subrogation expenses 

reimbursable under 44 CFR 62.23(i)(8) 

to the Company in accordance with 

guidelines issued by FEMA. 

D. Loss Payments. 

1. The Company must make loss 

payments for flood insurance policies 

from Federal funds retained in the bank 

account(s) established under Article 

III.F.1 and, if such funds are depleted, 

from Federal funds withdrawn from the 

National Flood Insurance Fund 

pursuant to Article V. 

2. Loss payments include payments 

because of awards, judgments for 

damages or settlements that arise under 

the scope of this Arrangement, and the 

Authorities set forth herein. All such 

loss payments and related expenses 

must meet the documentation 

requirements of the Financial Control 

Plan and of this Arrangement, and the 

Company must comply with the 

litigation documentation and 

notification requirements established by 

FEMA. Failure to meet these 

requirements may result in FEMA’s 

decision not to provide reimbursement. 

E. Litigation Oversight and 

Reimbursable Litigation Expenses. 

1. Any litigation resulting from, 

related to, or arising from the 

Company’s compliance with the written 

standards, procedures, and guidance 

issued by FEMA arises under the NFIA 

or regulations, and such legal issues 

raise a Federal question. 

2. The Company must conduct and 

oversee litigation arising out of the 

Company’s participation in the NFIP in 

accordance with the National Flood 

Insurance Program Litigation Manual. 

When a specific issue is not addressed 

by the National Flood Insurance 

Program Litigation Manual, the 

Company must consult with FEMA’s 

WYO Oversight Team. 

3. Limitation on Reimbursement and 

Payment of Litigation Expenses and 

Payment of Judgment and Award. 

FEMA will not reimburse the Company, 

in whole or part, for any award or 

judgment for damages, and any costs to 

defend litigation: 

a. Involving issues of insurance agent 

and broker negligence, errors or 

omissions; 

b. Grounded in actions by the 

Company that are significantly outside 

the scope of this Arrangement, 

including, but not limited to, reckless 

disregard of the Company’s duties under 

the Arrangement, regulations or FEMA’s 

written standards, procedures or 

guidance relating to the NFIP; 

c. Involving the submittal of 

inaccurate, false or fraudulent requests 

for litigation expense reimbursement; 

d. Where the Company failed to 

comply with the requirements of the 

NFIP Litigation Manual; 

e. Incurred after the Company became 

unable or otherwise failed to carry out 

its obligations under this Arrangement 

for the reasons contained in Article 

II.F.2, except that FEMA will reimburse 

the Company for reasonable costs of 

filing motions to stay proceedings; 

f. When FEMA and the Company’s 

interests diverge, including positions on 

litigation strategy and settlement; 

g. When a Company fails to respond 

to a lawsuit and a default is entered; or 

h. When a Company fails to remove 

a case filed in State court to Federal 

court in a timely manner. 

F. Refunds. The Company must make 

premium refunds required by FEMA to 

applicants and policyholders from 

Federal flood insurance funds referred 

to in Article III.F.1, and, if such funds 

are depleted, from funds derived by 

withdrawing from the National Flood 

Insurance Fund pursuant to Article V. 

The Company may not refund any 

premium from Federal flood insurance 

funds to applicants or policyholders in 

any manner other than as specified by 

FEMA since flood insurance premiums 

are funds of the Federal Government. 

G. Suspension and Debarment. 

1. In general. The Company may not 

contract with or employ any person who 

is suspended or debarred from 

participating in Federal transactions 

pursuant to 2 CFR part 180 (covering 

Federal nonprocurement transactions) 

or 48 CFR part 9, subpart 9.4 (covering 

Federal procurement transactions) in 

relation to this Arrangement. 

2. Reimbursement. FEMA will not 

reimburse the company for any 

expenses incurred in violation of Article 

IV.G.1. 

3. Compliance. The Company may 

ensure compliance with Article IV.G.1 

by: 

a. Checking the System for Awards 

Management at sam.gov; 

b. Collecting a certification from that 

person; or 

c. Adding a clause or condition to the 

transaction with that person. 

Article V. Undertakings of the 

Government 

A. FEMA must enable the Company to 

withdraw funds from the National Flood 

Insurance Fund daily, if needed, 

pursuant to prescribed procedures 

implemented by FEMA. FEMA will 

increase the amounts of the 

authorizations as necessary to meet the 

obligations of the Company under 

Article IV.C–F. The Company may only 

request funds when net premium 

income has been depleted. The timing 

and amount of cash advances must be 

as close as is administratively feasible to 

the actual disbursements by the 

recipient organization for allowable 

expenses. Request for payment may not 

ordinarily be drawn more frequently 

than daily. The Company may withdraw 

funds from the National Flood 

Insurance Fund for any of the following 

reasons: 

1. Payment of claims, as described in 

Article IV.D. 

2. Refunds to applicants and 

policyholders for insurance premium 

overpayment, or if the application for 

insurance is rejected or when 

cancellation or endorsement of a policy 

results in a premium refund, as 

described in Article IV.F. 

3. Loss Adjustment Expenses, as 

described in Article IV.C. 

B. FEMA must provide technical 

assistance to the Company as follows: 

1. NFIP policy and history. 

2. Clarification of underwriting, 

coverage, and claims handling. 

3. Other assistance as needed. 

C. FEMA must provide the Company 

with a copy of all formal written appeal 

decisions conducted in accordance with 

Section 205 of the Bunning-BereuterBlumenauer Flood Insurance Reform 

Act of 2004, Public Law 108–264 and 44 

CFR 62.20. 

D. Prior to the end of the Arrangement 

period, FEMA may provide the 

Company a statistical summary of their 

performance during the signed 

Arrangement period. This summary will 

detail the Company’s performance 

individually, as well as compare the 

Company’s performance to the aggregate 

performance of all WYO companies and 

the NFIP Direct Servicing Agent. 


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Article VI. Cash Management and 

Accounting 

A. FEMA must make available to the 

Company during the entire term of this 

Arrangement the ability to withdraw 

funds from the National Flood 

Insurance Fund provided for in Article 

V. The Company may withdraw funds 

from the National Flood Insurance Fund 

for reimbursement of its expenses as set 

forth in Article V.A that exceed net 

written premiums collected by the 

Company from the effective date of this 

Arrangement or continuation period to 

the date of the draw. In the event that 

adequate funding is not available to 

meet current Company obligations for 

flood policy claim payments issued, 

FEMA must direct the Company to 

immediately suspend the issuance of 

loss payments until such time as 

adequate funds are available. The 

Company is not required to pay claims 

from their own funds in the event of 

such suspension. 

B. The Company must remit all funds, 

including interest, not required to meet 

current expenditures to the United 

States Treasury, in accordance with the 

provisions of the WYO Accounting 

Procedures Manual or procedures 

approved in writing by FEMA. 

C. In the event the Company elects 

not to participate in the Program in this 

or any subsequent fiscal year, or is 

otherwise unable or not permitted to 

participate, the Company and FEMA 

must make a provisional settlement of 

all amounts due or owing within three 

(3) months of the expiration or 

termination of this Arrangement. This 

settlement must include net premiums 

collected, funds withdrawn from the 

National Flood Insurance Fund, and 

reserves for outstanding claims. The 

Company and FEMA agree to make a 

final settlement of accounts for all 

obligations arising from this 

Arrangement within forty-eight (48) 

months, which may be extended for 

good cause and subject to audit, of its 

expiration or termination, except for 

contingent liabilities that must be listed 

by the Company. At the time of final 

settlement, the balance, if any, due 

FEMA or the Company must be remitted 

by the other immediately and the 

operating year under this Arrangement 

must be closed. 

D. Upon FEMA’s request, the 

Company must provide FEMA with a 

true and correct copy of the Company’s 

Fire and Casualty Annual Statement, 

and Insurance Expense Exhibit or 

amendments thereof as filed with the 

State Insurance Authority of the 

Company’s domiciliary State. 

E. The Company must comply with 

the requirements of the False Claims Act 

(41 U.S.C. 3729–3733), which prohibits 

submission of false or fraudulent claims 

for payment to the Federal Government. 

Article VII. Arbitration 

If any misunderstanding or dispute 

arises between the Company and FEMA 

with reference to any factual issue 

under any provisions of this 

Arrangement or with respect to FEMA’s 

nonrenewal of the Company’s 

participation, other than as to legal 

liability under or interpretation of the 

Standard Flood Insurance Policy, such 

misunderstanding or dispute may be 

submitted to arbitration for a 

determination that will be binding upon 

approval by FEMA. The Company and 

FEMA may agree on and appoint an 

arbitrator who will investigate the 

subject of the misunderstanding or 

dispute and make a determination. If the 

Company and FEMA cannot agree on 

the appointment of an arbitrator, then 

two arbitrators will be appointed, one to 

be chosen by the Company and one by 

FEMA. 

The two arbitrators so chosen, if they 

are unable to reach an agreement, must 

select a third arbitrator who must act as 

umpire, and such umpire’s 

determination will become final only 

upon approval by FEMA. The Company 

and FEMA shall bear in equal shares all 

expenses of the arbitration. Findings, 

proposed awards, and determinations 

resulting from arbitration proceedings 

carried out under this section, upon 

objection by FEMA or the Company, 

shall be inadmissible as evidence in any 

subsequent proceedings in any court of 

competent jurisdiction. 

This Article shall indefinitely succeed 

the term of this Arrangement. 

Article VIII. Errors and Omissions 

A. In the event of negligence by the 

Company that has not resulted in 

litigation but has resulted in a claim 

against the Company, FEMA will not 

consider reimbursement of the 

Company for costs incurred due to that 

negligence unless the Company takes all 

reasonable actions to rectify the 

negligence and to mitigate any such 

costs as soon as possible after discovery 

of the negligence. The Company may 

choose not to seek reimbursement from 

FEMA. 

B. If the Company has made a claim 

payment to an insured without 

including a mortgagee (or trustee) of 

which the Company had actual notice 

prior to making payment, and 

subsequently determines that the 

mortgagee (or trustee) is also entitled to 

any part of said claim payment, any 

additional payment may not be paid by 

the Company from any portion of the 

premium and any funds derived from 

any Federal funds deposited in the bank 

account described in Article III.F.1. In 

addition, the Company agrees to hold 

the Federal Government harmless 

against any claim asserted against the 

Federal Government by any such 

mortgagee (or trustee), as described in 

the preceding sentence, by reason of any 

claim payment made to any insured 

under the circumstances described 

above. 

Article IX. Officials Not to Benefit 

No Member or Delegate to Congress, 

or Resident Commissioner, may be 

admitted to any share or part of this 

Arrangement, or to any benefit that may 

arise therefrom; but this provision may 

not be construed to extend to this 

Arrangement if made with a corporation 

for its general benefit. 

Article X. Offset 

At the settlement of accounts, the 

Company and FEMA have, and may 

exercise, the right to offset any balance 

or balances, whether on account of 

premiums, commissions, losses, loss 

adjustment expenses, salvage, or 

otherwise due one party to the other, its 

successors or assigns, hereunder or 

under any other Arrangements 

heretofore or hereafter entered into 

between the Company and FEMA. This 

right of offset shall not be affected or 

diminished because of insolvency of the 

Company. 

All debts or credits of the same class, 

whether liquidated or unliquidated, in 

favor of or against either party to this 

Arrangement on the date of entry, or any 

order of conservation, receivership, or 

liquidation, shall be deemed to be 

mutual debts and credits and shall be 

offset with the balance only to be 

allowed or paid. No offset shall be 

allowed where a conservator, receiver, 

or liquidator has been appointed and 

where an obligation was purchased by 

or transferred to a party hereunder to be 

used as an offset. 

Although a claim on the part of either 

party against the other may be 

unliquidated or undetermined in 

amount on the date of the entry of the 

order, such claim will be regarded as 

being in existence as of the date of such 

order and any credits or claims of the 

same class then in existence and held by 

the other party may be offset against it. 

Article XI. Equal Opportunity 

A. Age Discrimination Act of 1975. 

The Company must comply with the 

requirements of the Age Discrimination 

Act of 1975, Public Law 94–135 (42 


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U.S.C. 6101 et seq.) which prohibits 

discrimination on the basis of age in any 

program or activity receiving Federal 

financial assistance. 

B. Americans with Disabilities Act. 

The Company must comply with the 

requirements of Titles I, II, and III of the 

Americans with Disabilities Act, Public 

Law 101–336 (42 U.S.C. 12101–12213), 

which prohibits recipients from 

discriminating on the basis of disability 

in the operation of public entities, 

public and rivate transportation 

systems, places of public 

accommodation, and certain testing 

entities. 

C. Civil Rights Act of 1964–Title VI. 

The Company must comply with the 

requirements of Title VI of the Civil 

Rights Act of 1964 (42 U.S.C. 2000d et 

seq.), which provides that no person in 

the United States will, on the grounds 

of race, color, or national origin, be 

excluded from participation in, be 

denied the benefits of, or be subjected 

to discrimination under any program or 

activity receiving Federal financial 

assistance. Department of Homeland 

Security implementing regulations for 

the Act are found at 6 CFR part 21 and 

44 CFR part 7. 

D. Civil Rights Act of 1968. The 

Company must comply with Title VIII of 

the Civil Rights Act of 1968, which 

prohibits recipients from discriminating 

in the sale, rental, financing, and 

advertising of dwellings, or in the 

provision of services in connection 

therewith, on the basis of race, color, 

national origin, religion, disability, 

familial status, and sex as implemented 

by the U.S. Department of Housing and 

Urban Development at 24 CFR part 100. 

E. Rehabilitation Act of 1973. The 

Company must comply with the 

requirements of Section 504 of the 

Rehabilitation Act of 1973 (29 U.S.C. 

794), which provides that no otherwise 

qualified handicapped individuals in 

the United States will, solely by reason 

of the handicap, be excluded from 

participation in, be denied the benefits 

of, or be subjected to discrimination 

under any program or activity receiving 

Federal financial assistance. 

Article XII. Access to Books and 

Records 

A. FEMA, the Department of 

Homeland Security, and the 

Comptroller General of the United 

States, or their duly authorized 

representatives, for the purpose of 

investigation, audit, examination, and to 

enable FEMA to carry out the NFIP shall 

have access to any books, documents, 

papers and records of the Company that 

are pertinent to this Arrangement. The 

Company shall keep records that fully 

disclose all matters pertinent to this 

Arrangement, including premiums and 

claims paid or payable under policies 

issued pursuant to this Arrangement. 

Records of accounts and records relating 

to financial assistance shall be retained 

and available for three (3) years after 

final settlement of accounts, and to 

financial assistance, three (3) years after 

final adjustment of such claims. FEMA 

shall have access to policyholder and 

claim records at all times for purposes 

of the review, defense, examination, 

adjustment, or investigation of any 

claim under a flood insurance policy 

subject to this Arrangement. 

B. Nondisclosure by FEMA. FEMA, to 

the extent permitted by law and 

regulation, will safeguard and treat 

information submitted or made 

available by the Company pursuant to 

this Arrangement as confidential where 

the information has been marked 

‘‘confidential’’ by the Company and the 

Company customarily keeps such 

information private or closely held. To 

the extent permitted by law and 

regulation, FEMA will not release such 

information to the public pursuant to a 

Freedom of Information Act (FOIA) 

request, 5 U.S.C. 552, without prior 

notification to the Company. FEMA may 

transfer documents provided by the 

Company to any department or agency 

within the Executive Branch or to either 

house of Congress if the information 

relates to matters within the 

organization’s jurisdiction. FEMA may 

also release the information submitted 

pursuant to a judicial order from a court 

of competent jurisdiction. 

C. Nondisclosure by Company. 

1. In general. The Company, to the 

extent permitted by law, must safeguard 

and treat information submitted or made 

available by FEMA pursuant to this 

Arrangement as confidential where the 

information has been marked or 

identified as ‘‘confidential’’ by FEMA 

and FEMA customarily keeps such 

information private or closely held. The 

Company may not disclose such 

confidential information to a third-party 

without the express written consent of 

FEMA or as otherwise required by law. 

2. Other protections. Article XII.C.1 

shall not be construed as to limit the 

effect of any other requirement on the 

Company to protect information from 

disclosure, including a joint defense 

agreement or under the Privacy Act. 

Article XIII. Compliance With the NFIA 

and Regulations 

This Arrangement and all policies of 

insurance issued pursuant thereto are 

subject to Federal law and regulations. 

Article XIV. Relationship Between the 

Parties and the Insured 

Inasmuch as the Federal Government 

is a guarantor hereunder, the primary 

relationship between the Company and 

the Federal Government is one of a 

fiduciary nature, that is, to ensure that 

any taxpayer funds are accounted for 

and appropriately expended. The 

Company is a fiscal agent of the Federal 

Government, but is not a general agent 

of the Federal Government. The 

Company is solely responsible for its 

obligations to its insured under any 

policy issued pursuant hereto, such that 

the Federal Government is not a proper 

party to any lawsuit arising out of such 

policies. 

Authority: 42 U.S.C. 4071, 4081; 44 

CFR 62.23. 

Jeffrey Jackson, 

Assistant Administrator (A) for Federal 

Insurance Directorate, Resilience Federal 

Emergency Management Agency. 

[FR Doc. 2025–00511 Filed 1–14–25; 8:45 am] 

BILLING CODE 9111–52–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Notice Regarding the Uyghur Forced 

Labor Prevention Act Entity List 

AGENCY: Department of Homeland 

Security. 

ACTION: Notice. 

SUMMARY: The U.S. Department of 

Homeland Security (DHS), as the Chair 

of the Forced Labor Enforcement Task 

Force (FLETF), announces the 

publication and availability of the 

updated Uyghur Forced Labor 

Prevention Act (UFLPA) Entity List, a 

consolidated register of the four lists 

required to be developed and 

maintained pursuant to the UFLPA, on 

the DHS UFLPA website. The updated 

UFLPA Entity List is also published as 

an appendix to this notice. This update 

adds three entities to the section 

2(d)(2)(B)(ii) list of the UFLPA and 

thirty-five entities to the section 

2(d)(2)(B)(v) list of the UFLPA. This 

update adds one entity to both the 

2(d)(2)(B)(ii) list and section 

2(d)(2)(B)(v) of the UFLPA. This update 

also includes a technical correction to 

the name of an entity listed in section 

2(d)(2)(B)(ii) of the UFLPA. Details 

related to the process for revising the 

UFLPA Entity List are included in this 

Federal Register notice. 

DATES: This notice announces the 

publication and availability of the 

UFLPA Entity List updated as of January 


lotter on DSK11XQN23PROD with NOTICES1