Producers Selling Flood Insurance Face Education Requirements

The Alaska Division of Insurance reminding producers about the education requirements for producers selling flood insurance policies under the National Flood Insurance Program.

According to a statement by Director of Insurance Linda S. Hall, “Section 207 of the Flood Insurance Reform Act of 2004, Public Law 108-264 (Act) requires all
producers selling flood insurance policies under the National Flood Insurance Program (NFIP) to be trained and educated about the NFIP so that they may properly serve their clients. The Act requires the Director of the Federal Emergency Management Agency (FEMA), in cooperation with the insurance industry, state insurance regulators and other interested parties, to establish minimum flood insurance training requirements for producers who sell flood insurance policies.”

FEMA has developed a Training Station at http://training.nfipstat.com to help producers comply with the flood insurance training requirements. Upon compelting the basic agent training module and the mastery test at the end of the gold level agent training module, producers will receive a certificate of completion.

Completion of the modules also will provide the producer with three hours of continuing education credit in Alaska.

Failing to comply with the NFIP education requirement could jeopardize the producer’s authority to write insurance through the NFIP, Hall stated.

The Division also recommends that when an insurance producer renews or sells a home insurance policy, he or she should advise the applicant of the availability of flood insurance through the NFIP.
If, after being advised of the availability of flood insurance, the applicant declines the coverage, it is advisable for the producer to have the applicant sign or initial a statement indicating that the applicant was advised of the availability of the coverage but declined to purchase it. This statement should be retained in the producer’s file on the applicant.

For questions regarding the education requirement, call licensing staff at 907-465-2515.

Source: DOI

Topics Flood Training Development