[Federal Register Volume 79, Number 164 (Monday, August 25, 2014)]
[Notices]
[Page 50688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-20068]



[[Page 50688]]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2014-0026]


National Flood Insurance Program (NFIP); Assistance to Private 
Sector Property Insurers, Availability of FY 2015 Arrangement

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: Each year, the Federal Emergency Management Agency (FEMA) is 
required by the Write-Your-Own (WYO) Program Financial Assistance/
Subsidy Arrangement (Arrangement) to notify private insurance companies 
(Companies) and to make available to the Companies the terms for 
subscription or re-subscription to the Arrangement. In keeping with 
that requirement, this notice provides the terms to the Companies to 
subscribe or re-subscribe to the Arrangement.

FOR FURTHER INFORMATION CONTACT: Edward L. Connor, Deputy Associate 
Administrator for Federal Insurance, Federal Insurance and Mitigation 
Administration, DHS/FEMA, 1800 South Bell Street, Room 720, Arlington, 
VA 20598-3020, 202-646-3429 (phone), 202-646-3445 (facsimile), or 
[email protected] (email).

SUPPLEMENTARY INFORMATION: Under the Write-Your-Own (WYO) Program 
Financial Assistance/Subsidy Arrangement (Arrangement), 82 (as of 
August 2014) private sector property insurers sell flood insurance 
policies and adjust flood insurance claims under their own names based 
on an Arrangement with the Federal Insurance and Mitigation 
Administration (FIMA) published at 44 CFR Part 62, Appendix A.
    The WYO insurers retain an expense allowance and remit the 
remaining premium to the Federal Government. The WYO insurers pay flood 
losses and pay loss adjustment expenses based on a fee schedule through 
the regulated access of federal funds. In addition, under certain 
circumstances reimbursement for litigation costs, including court 
costs, attorney fees, judgments, and settlements, are paid by FEMA 
based on documentation submitted by the WYO insurers.
    The complete Arrangement is published in 44 CFR Part 62, Appendix 
A. Each year, FEMA is required to publish in the Federal Register and 
make available to the Companies the terms for subscription or re-
subscription to the Arrangement. 44 CFR Part 62, Appendix A, Article 
V.B.
    Signatory Companies should remain aware that all requirements of 
the Arrangement, including, but not limited to, financial accounting in 
issues involving all transactions, must be met. As set forth in Article 
II.A.1. of Appendix A to Part 62--Federal Emergency Management Agency, 
Federal Insurance Administration, Financial Assistance/Subsidy 
Arrangement, the Company is responsible for meeting all fiduciary 
responsibilities for control and disbursement of funds in connection 
with policy administration. This includes ensuring that all accounting 
for policy administration is correct. If errors are made in policy 
administration, the Company shall be responsible for reimbursing any 
incorrect allocations, assessment or other moneys compensated to that 
company by the Federal Government.
    The Company is responsible for ensuring that all activities meet 
the requirements of this Arrangement and of the NFIP Financial Control 
Plan, 44 CFR Part 62, Appendix B. The NFIP WYO Standards Committee may 
take remedial action in the event any such conduct is not corrected.
    FEMA will send a copy of the offer for the FY 2015 Arrangement, 
together with related materials and submission instructions, to all 
private insurance companies participating under the current FY 2014 
Arrangement.
    Any private insurance company not currently participating in the 
WYO Program but wishing to consider FEMA's offer for FY 2015 may 
request a copy by writing: DHS/FEMA, Federal Insurance and Mitigation 
Administration, Attn: Edward L. Connor, Deputy Associate Administrator 
for Federal Insurance, Federal Insurance and Mitigation Administration, 
DHS/FEMA, 1800 South Bell Street, Room 720, Arlington, VA 20598-3020, 
or contact Edward Connor at 202-646-3445 (facsimile), or 
[email protected] (email).

    Dated: August 8, 2014.
David L. Miller,
Associate Administrator, Federal Insurance and Mitigation 
Administration, Federal Emergency Management Agency, Department of 
Homeland Security.
[FR Doc. 2014-20068 Filed 8-22-14; 8:45 am]
BILLING CODE 9110-11-P