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Friday, May 28, 2010

National Flood Insurance Program Allowed to Lapse by Congress!

NFIP Set to Lapse Once More on May 31—to Restart Earliest at June 7—Your Action is Imperative

Congressional wrangling of the vote to extend the funding of the NFIP could likely bring the NFIP into a lapse, once again, from May 31 through June 7 when Congress reconvenes. Efforts to separate the NFIP issue from the larger Tax Extenders bill to allow an NFIP extension to be funded have been blocked by House Majority Leader, Harry Reid. Fidelity recommends that agents contact their representatives to urge expeditious approval of NFIP funding through the 2010 Tax Extenders Bill and long term through HR 5114 Flood Reform Bill. Fidelity will be taking familiar steps to prepare for the NFIP lapse as guided by past directives by the NFIP.
You can use the link below to find the House of Representatives or Senate member for their area and express their interest in continued NFIP funding without a lapse and for future longer term extensions of the program.
Contact your Senator at:  http://www.senate.gov/general/contact_information/senators_cfm.cfm

Contact your Representative:  http://www.house.gov/house/MemberWWW_by_State.shtml

If the NFIP suffers a lapse, it is fully anticipated that federal funding will be extended when Congress reconvenes, hopefully on a retroactive basis. However, during the lapse between May 31 and when Congress can re-authorize the NFIP, new flood insurance policies and increases in existing policies will not be made effective. Fidelity will be taking the following steps in preparation for and during the lapse in the NFIP program in accordance with Bulletin W-09068:

· Submission of flood policy quotes, applications and premium payments will continue to be accepted via www.fidelityonline.com with policy effective dates adjusted based on the eventual NFIP reauthorization.

· Applications and premium payments must be received prior to the May 31, 2010 deadline to be made effective during the lapse. Electronic premium payment methods are available to policyholders at www.fidelityonline.com.

· Claim payments will be continued as usual for policies currently in effect.

Fidelity National Flood will follow all guidelines in accordance with the FEMA Bulletin W-09068, issued October 27, 2009, and titled “Recommendations/Guidance for Possible NFIP Authority Lapse and Hiatus” available at:   http://bsa.nfipstat.com/wyobull/w-09068.pdf.

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