National Flood Insurance Program Bureau and Statistical Agent Flood Insurance

1. National Flood Insurance Program Bureau and Statistical AgentFlood Insurance Two-Year Preferred Risk Policy Eligibility Extension Kristin Minich, Regional Manager iService Team, Region X KMinich@ostglobal.com P: 360-658-8188

2. Housekeeping • Attendees may be muted to reduce background noise • To increase efficiency and so that we can end on time, • Use “Raise Hand” icon if you want to speak • Use “Q&A” feature to ask a question • Please do NOT put your phone on “hold”, it plays the hold music for everyone else on this call. • If you have to step away, mute your phone or hang up and rejoin the call later.

3. National Flood Insurance Program Bureau and Statistical AgentFlood Insurance Two-Year Preferred Risk Policy Eligibility Extension Kristin Minich, Regional Manager iService Team, Region X KMinich@ostglobal.com P: 360-658-8188

4. Two-Year PRP Eligibility Extension A New Low-Cost Flood Insurance Option Two-Year Preferred Risk Policy (PRP) Eligibility Extension

5. Lesson OneThe Basics • PRP Background • A Low Risk Rating Structure • Moderate-Low Risk Flood Zones • B, C, D and X Zones • Standard Flood Insurance Policy • Dwelling Form • Favorable Loss History

6. The Basics, continued • Learn more about the PRP, FEMA offers additional information online in the FEMA Library – Search Preferred Risk Policy eligibility to find: • a PRP Study Guide • Talking Points • Fact Sheet and FAQ’s

7. The PRP Eligibility Extension • Expanding the PRP • Eligibility Criteria • Risk • Likelihood of Loss • Special Flood Hazard Area • Map Changes • Insurance Concept • The lower the risk, the lower • the insurance premium.

8. The PRP Eligibility Extension FEMA Map Service Center website for assistance at: WWW.MSC.FEMA.gov

9. Outreach Materials Exhibit A Exhibit B

10. The PRP Eligibility Extension • To learn more about CRS, visit the FEMA website: • FEMA Library Community Rating System (CRS) Coordinator's Manual

11. Expanding the PRP, continued • Reasons for Expanding the PRP Eligibility Criteria • Cost Savings • Transitioning to Standard Rating • Mandatory Purchase • Regulatory Mandate • Buying Time • Time to Make Changes

12. Expanding the PRP, continued • More information about the Mandatory Purchase Requirement can be found at the FEMA website: • FEMA Library Mandatory Purchase Guidelines

13. Expanding the PRP, continued • How the Process Works • Notify • Validate • Offer • Prepare Property Owner

14. Expanding the PRP, continued • The Impact Revised Flood Maps Have on NFIP Flood Insurance • Newly Designated Flood Zones • High-Risk Property • Grandfathering • Positive of Negative? • Be A Hero

15. Weather, Landscape, or Development changes affect our Lives Rains cause flooding in Oregon December 29-30, 2011 – Between 8-10” Snohomish, Washington November 2011 Cordova, Alaska snow in early January 2012 – Between 4-5’ Flooding is the most common natural disaster

16. Lesson TwoTwo-Year PRP Eligibility Extension Period • How the Two-Year Extension is Determined • Primary Responsibility • Insurance Agent • Teamwork • Floodplain Manager • Insurance Agents

17. Eligibility Period, continued • How the Two-Year Extension Period is Determined • Either January 1, 2011 or the effective date of the map revision, whichever is later • Map revision is between October 1, 2008 and December 3, 2010 • Map revision on or after January 1, 2011 • New policy, second year of extension

18. Properties Not Eligible The following properties are ineligible for the extension: • Properties located in an Emergency Program community • Properties newly designated within an SFHA by the initial FIRM, where the initial FIRM is the current FIRM • Properties constructed in an SFHA after the effective date of the most recent FIRM • Repetitive loss properties – including those with a “disqualifying loss” during the eligibility period • Properties insured in the name of a residential condominium association eligible under the Residential Condominium Building Association Policy • Leased Federal Properties • Non-residential condominium units are ineligible for building coverage under the PRP • Residential units in a non-residential condominium building are ineligible for building coverage under the PRP

19. Lesson Three – Notification and Documentation • Who Notifies • Write-Your-Own • Direct Side • Documentation • LOMA • LOMR • LODR • Recent Map • Current and Previous Map • Letter • Elevation Certificate • Flood Zone Determination New 2-Year PRP Eligibility Extension

20. Lesson Four - Benefits • Cost Savings • Buys Time • Community and Insured • Education • Risk • Property owners • Prepare and Protect

21. Grandfathering Benefit At the end of the PRP extension, Policies on these buildings must be written upon its anniversary as standard-rated X-Zone policies. So in reality, The properties as shown on the old map moving from a B, C, D or X zone to SFHAs on the new map will not have to be rated at a SFHAs rate if the policy stays in force throughout the extension and is “grandfathered” after the extension period.

22. Benefits, Continued • Disaster Assistance is not always the answer • Presidential Declaration • Most flooding events are not declared • Loan • Have to be paid back • Must purchase flood insurance • If located in a high-risk flood zone Insurance vs. SBA loan: $50,000 loan would require $320 monthly for 18.5 years (average); same $50,000 insurance coverage would cost $350 for annual premium

23. Benefits, Continued

24. Summary • The Basics • What You Need to Know • Acceptable Documentation Congratulations! You’ve completed the Basics!

25. Summary, Continued • Rating Option • Moderate-Low Risk = Low Premium • PRP Eligibility

26. Questions? (There will be a test) • Q & A will be open for up to 15 minutes following the class • Use “Raise Hand” feature to address the class verbally

27. Ask the Help Desk • The Region X Help Desk is available for all your questions about the NFIP: RegionXHelpDesk@starr-team.com

28. TEST TIME Required for Continuing Education Credit

29. Test FAQ • Required for Continuing Education Credit • 70% is passing • Two attempts • You will receive results via email • Certificate of attendance will be emailed upon completion

30. Thank you!