Current through Reg. 50, No. 13; March 28, 2025
(a) Pursuant to §207 of the Flood
Insurance Reform Act of 2004, the Federal Emergency Management Agency on
September 1, 2005 published minimum training and education standards for
persons that intend to write or currently write flood insurance (Federal
Register, Vol.70, No. 169, pp. 52117-52119). This section establishes these
standards for a department-certified continuing education course.
(b) The course shall:
(1) be submitted for approval in compliance
with §
19.1007 of this subchapter
(relating to Course Certification Submission Applications, Course Expirations,
and Resubmissions);
(2) be at least
three hours in length;
(3) and
cover the topics listed in subsection (g) of this section.
(c) Providers may offer the course as a
classroom, classroom equivalent, or self study course.
(d) The course may be taken after the
department has issued a license or within 12 months preceding the license issue
date.
(e) Licensees may count up to
three hours towards completion of their initial continuing education
requirement for successful completion of a certified flood insurance training
course prior to issuance of their license. The licensee shall maintain proof of
completion of the flood insurance training course prior to licensure for four
years or through the second renewal of the license, whichever is longer. Upon
request, the licensee shall provide the proof of course completion to the
department or the department's designee.
(f) A provider-issued completion certificate
in compliance with §
19.1011(e) of
this subchapter (relating to Requirements for Successful Completion of
Continuing Education Courses) shall demonstrate proof of successful course
completion.
(g) Course topics for
the basic flood insurance course outline shall include:
(1) Section I - Introduction:
(A) National Flood Insurance Program (NFIP)
Background;
(B) Community
Participation;
(C) Emergency
Program Defined;
(D) Regular
Program Defined;
(E) Community
Rating System;
(F)
Eligible/Ineligible Buildings;
(G)
Coastal Barrier Resources System and Other Protected Areas;
(H) Who Needs Flood Insurance?
(i) Mandatory Purchase of Flood Insurance in
High Flood Risk Zones; and
(ii)
Recommended in Moderate and Low Flood Risk Zones; and
(I) Why Flood Insurance is Better than
Disaster Assistance.
(2)
Section II - Flood Maps and Zone Determinations:
(A) Flood Hazard Boundary Map
(FHBM);
(B) Flood Insurance Rate
Map (FIRM):
(i) Pre-FIRM/Post-FIRM Defined;
and
(ii) Special Flood Hazard Area
Defined;
(C) Base Flood
Elevation; and
(3)
Section III - Policies and Products Available:
(A) Dwelling Policy - Types of Buildings
Covered;
(B) General Property
Policy - Types of Buildings Covered;
(C) Residential Condominium Building
Association (RCBAP) Policy - Types of Buildings Covered;
(D) Preferred Risk Policy - Types of
Buildings Covered;
(E) Definitions:
(ii) Basement/Enclosure; and
(iii) Elevated Buildings;
(F) Damages Not Covered:
(i) Single Peril Policy; and
(ii) Mudslides vs. Mudflow;
(G) Property Covered:
(ii) Appurtenant Structure;
(iii) Loss Avoidance Measures;
(v) Improvements and Betterments;
(H) Property and Expenses Not
Covered:
(ii) Finished Items in Basements;
(iii) Property in Enclosures; and
(iv) Additional Living Expenses;
(I) Increased Cost of Compliance
Coverage.
(4) Section IV
- General Rules:
(A) Statutory Coverage
Limits;
(B) Deductibles:
(i) Standard Deductibles; and
(ii) Apply Separately for Building and
Contents;
(C) Property
Value Determination for Selecting Coverage Amount;
(D) Loss Settlement:
(i) Actual Cash Value (ACV);
(ii) Replacement Cost Value (RCV);
and
(iii) Co-insurance Penalty in
RCBAP;
(E) Reduction and
Reformation of Coverage;
(G) One Building per
Policy - No Blanket Coverage;
(H)
Building and Contents Coverage Purchased Separately;
(I) Waiting Period/Effective Date of
Policy;
(5) Section V - Rating:
(A) Types of Buildings:
(i) Elevated Buildings; and
(ii) Buildings with Basements;
(B) When to Use an Elevation
Certificate; and
(6)
Section VI - Claims Handling Process:
(A)
Helping Your Client to File a Claim;
(7) Section VII - Requirements of the Flood
Insurance Reform Act of 2004; Point of Sale and Renewal Responsibilities:
(A) Notification of Coverages Being
Purchased;
(B) Policy Exclusions
that Apply;
(C) Explanation
Regarding How Losses Will be Adjusted (ACV vs. RCV);
(D) Number and Dollar Amount of Claims for
Property; and
(E) Acknowledgement
Forms.
(8) Section VIII
- Agent Resources:
(A) Write Your Own
Company;
(B) FEMA Websites:
(i) http://www.fema.gov/nfip;
(ii) http://www.floodsmart.gov; and
(iii) http://training.nfipstat.com/;
and
(C) Flood Insurance
Manual.
