Page 3 - NFIP October 2017 changes Aon
P. 3

FEMA has revised the refund rules for the Homeowner Flood Insurance Aordability
                                                             Act (HFIAA) surcharge. Currently, HFIAA surcharges are fully earned. Beginning
                                                             October 1, 2017, FEMA will allow pro-rata refunds of the HFIAA surcharge when a
                                                             policy is canceled. Pro-rata refunds of the HFIAA surcharge are available for policies
                                                             being canceled for the following reasons:


                                                               1.  Building sold or removed
                                                               2. Contents sold or removed
                                                               3.  Policy canceled or rewritten to establish a common expiration date with other
        Revised Cancellation                                   4.  Duplicate NFIP policies
                                                                  insurance coverage


        Refund Rules                                           5.  Policy not required by mortgagee
                                                               6.  Insurance no longer required by mortgagee because property is no longer
                                                                  located in a Special Flood Hazard Area (SFHA) because of a physical map revision
                                                               7.  Condominium policy (unit or association) converting to Residential
                                                                  Condominium Building Association Policy (RCBAP)
                                                               8. Mortgage paid o
                                                               9.  Insurance no longer required based on FEMA review of lender’s SFHA
                                                                  determination
                                                              10. Mortgage paid o on an Mortgage Portfolio Protection Program (MPPP) policy
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