Parting the Waters: Private Flood Insurance Compliance and Examination Procedures

This presentation will discuss the Biggert-Waters Flood Insurance Reform Act of 2012, which obligated interagency regulators to issue a final rule requiring financial institutions to accept private flood insurance. The final private flood rule, which went into effect on July 1, 2019, requires financial institutions to accept flood insurance policies that meet the Biggert-Waters Act statutory definition of “private flood insurance.” Heather Wright will explain the four primary components of the final rule and provide guidance regarding compliance with the final rule. In addition, she will review the updated examination procedures released by the FDIC, which provide guidance regarding the regulator’s expectations as to how institutions will implement the private flood insurance requirements.