Document ID: FEMA-2010-0018-0001
Agency: fema
Document Type: Notice
Title: National Flood Insurance Program (NFIP); Assistance to Private Sector Property Insurers, Availability of FY2011 Arrangement
Posted Date: 2010-07-22T04:00Z

[Federal Register Volume 75, Number 140 (Thursday, July 22, 2010)]
[Notices]
[Pages 42766-42767]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17977]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2010-0018]

National Flood Insurance Program (NFIP); Assistance to Private 
Sector Property Insurers, Availability of FY2011 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: Edward L. Connor, DHS/FEMA, 1800 South 
Bell Street, Room 720, Arlington, VA 20598-3020, 202-646-3429 (phone), 
202-646-3445 (facsimile), or Edward.Connor@dhs.gov (e-mail).

SUPPLEMENTARY INFORMATION: Under the Write-Your-Own (WYO) Program 
Financial Assistance/Subsidy Arrangement (Arrangement), (90 as of June 
1, 2010) private sector property insurers issue flood insurance 
policies

[[Page 42767]]

and adjust flood insurance claims under their own names based on an 
Arrangement with the Federal Insurance Administration (FIA) published 
at 44 CFR part 62, appendix A. The WYO insurers receive an expense 
allowance and remit the remaining premium to the Federal Government. 
The Federal Government also pays flood losses and pays loss adjustment 
expenses based on a fee schedule. In addition, under certain 
circumstances reimbursement for litigation costs, including court 
costs, attorney fees, judgments, and settlements, are paid by the FIA 
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.
    Though not substantive, there has been a recent change to the 
marketing guidelines discussed in the Arrangement. As noted in the 
first sentence of the third paragraph of 44 CFR part 62, appendix A, 
Article III. B. of the Arrangement:

    [t]he amount of expense allowance retained by the Company may 
increase a maximum of two percentage points, depending on the extent 
to which the Company meets the marketing goals for the Arrangement 
year contained in marketing guidelines established pursuant to 
Article II.G.

    The marketing incentive percentage will remain the same. However, 
through a separate document the National Flood Insurance Program is 
revising its targeted goals regarding the criteria for growth.
    During August 2010, FEMA will send a copy of the offer for the 
FY2011 Arrangement, together with related materials and submission 
instructions, to all private insurance companies participating under 
the current FY2010 Arrangement. Any private insurance company not 
currently participating in the WYO Program but wishing to consider 
FEMA's offer for FY2011 may request a copy by writing: DHS/FEMA, 
Mitigation Directorate, Attn: Edward L. Connor, WYO Program, 1800 South 
Bell Street, Room 720, Arlington, VA 20598-3020, or contact Edward 
Connor at 202-646-3445 (facsimile), or Edward.Connor@dhs.gov (e-mail).

Edward L. Connor,
Acting Federal Insurance and Mitigation Administrator, National Flood 
Insurance Program, Federal Emergency Management Agency, Department of 
Homeland Security.
[FR Doc. 2010-17977 Filed 7-21-10; 8:45 am]
BILLING CODE 9110-11-P