NFIP Cancellations: Difference between revisions
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== Key Differences from Industry Practices == | == Key Differences from Industry Practices == | ||
NFIP [[SFIP|flood insurance policies]] have a one-year term. Unlike general insurance practices, where a signed "lost policy release" (LPR) form may be the only step needed for a policyholder to cancel their insurance, the NFIP has a more structured process. | NFIP [[SFIP|flood insurance policies]] have a one-year term. Unlike general insurance practices, where a signed "lost policy release" (LPR) form may be the only step needed for a policyholder to cancel their insurance, the NFIP has a more structured process. | ||
'''Qualifying Reasons'''<br> | |||
NFIP cancellations use qualifying reasons, each with its own [[Cancellation Qualifying Reasons|NFIP code]], refund rules, and [[Required Cancellation Documents|required documentation]]. | |||
'''Documentation Requirements'''<br> | '''Documentation Requirements'''<br> | ||
NFIP cancellations require specific supporting documents to justify the reason for cancellation. A simple signed request from the policyholder is not sufficient. | NFIP cancellations require specific supporting documents to justify the reason for cancellation. A simple signed request from the policyholder is not sufficient. | ||
==Steps for Processing NFIP Cancellations == | ==Steps for Processing NFIP Cancellations == | ||
Agents should follow these steps when submitting NFIP cancellations. | Agents should follow these steps when submitting NFIP cancellations. | ||
# '''Identify the [[Cancellation Qualifying Reasons]]''' | # '''Identify the [[Cancellation Qualifying Reasons|Cancellation Qualifying Reason]]''' | ||
# '''Gather [[Required Cancellation Documents|Supporting Documentation]]''' | # '''Gather [[Required Cancellation Documents|Supporting Documentation]]''' | ||
# '''Submit the [[NFIP Cancellation Request|Cancellation Request]]''' | # '''Submit the [[NFIP Cancellation Request|Cancellation Request]]''' | ||
# '''Collect [[Required Cancellation Signatures|Proper Signatures]]''' | |||
==Special Considerations for Agents == | ==Special Considerations for Agents == | ||
Latest revision as of 12:39, 6 March 2025
NFIP policies can be cancelled prior to the end of the policy term if specific steps are followed. The involved procedure and additional documentation requirements often create barriers that can be difficult to overcome.
Equinox simplifies cancellation submissions for agents, taking the additional cost and difficulties out of the equation. An intuitive interface and embedded support allow agents to comply with NFIP requirements from the start.
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Submit a Cancellation Request in Equinox |
Key Differences from Industry Practices
NFIP flood insurance policies have a one-year term. Unlike general insurance practices, where a signed "lost policy release" (LPR) form may be the only step needed for a policyholder to cancel their insurance, the NFIP has a more structured process.
Qualifying Reasons
NFIP cancellations use qualifying reasons, each with its own NFIP code, refund rules, and required documentation.
Documentation Requirements
NFIP cancellations require specific supporting documents to justify the reason for cancellation. A simple signed request from the policyholder is not sufficient.
Steps for Processing NFIP Cancellations
Agents should follow these steps when submitting NFIP cancellations.
- Identify the Cancellation Qualifying Reason
- Gather Supporting Documentation
- Submit the Cancellation Request
- Collect Proper Signatures
Special Considerations for Agents
Policies with Claims
Open claims prevent cancellation. Closed claims limit refund eligibility based on specific reason codes.
Eligibility Rules
Some properties may lose eligibility mid-term, such as those in communities suspended from the NFIP.
Lender Requirements
Lenders may impose requirements beyond federal regulations. Ensure proper documentation if a lender no longer requires flood insurance.
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This page contains details about NFIP Cancellations. |