Excerpt: Section 14 Flood Insurance Manual (October 2016)

22. Cancel/Rewrite Due to Misrating (TRRP Reason 22)

This reason is used to cancel and rewrite a policy due to misrating in the following situations:

  • (1) to correct a policy effective date;
  • (2) when ineligible PRPs or MPPP policies are canceled and rewritten within the same company;
  • (3) to cancel a standard-rated policy that is eligible for a PRP due to misrating, as defined in the General Change Endorsement section of this manual. This includes a standard-rated policy incorrectly rated in an SFHA, the failure to apply the PRP Eligibility Extension to an eligible property, or failure to apply for a Newly Mapped property;
  • (4) the property was eligible for continuous coverage or built-in-compliance grandfathering discovered after the time of application; and
  • (5) when system constraints prevent a legitimate correction.

Refunds resulting from the cancellation must be applied to the rewritten policy prior to any refund being generated. Use New/Rollover Indicator “Z” to report the new policy. In order to process a cancel/ CN 8 OCTOBER 1, 2016 rewrite due to misrating, the policy to be canceled must have no paid or pending claim during the policy year(s) to be canceled.

• Cancellation Effective Date: The effective date of the first eligible policy term.

• Type of Refund: Full premium refund, as well as all fees and surcharges, but the refund must be applied towards the new policy.

• Cancellation Request: N/A • Required Documentation is documentation supporting the misrating. For a standard-rated policy eligible for the Preferred Risk Policy (PRP), submit one of the following:

o A Letter of Map Amendment (LOMA);

o A Letter of Map Revision (LOMR);

o A letter indicating the property address and flood zone of the building, and signed and dated by a local community official;

o An Elevation Certificate indicating the exact location and flood zone of the building, signed and dated by a surveyor, an engineer, an architect, or a local community official;

o A flood zone determination certification that guarantees the accuracy of the information; or

o A copy of the most recent flood map marked to show the exact location and flood zone of the building is also acceptable, though additional documentation may be required if the building is close to the zone boundary.

• Years Eligible for Refund: Going back a maximum of 5 years from the current policy year when converting a standard-rated B, C, or X zone policy to a PRP or a policy misrated in an SFHA that is eligible for the PRP.