Bulletin 06-06: Flood Insurance Training Requirements

To:            All Insurers and Insurance Producers with a Property Line of Authority

From:       Rochelle Hendrickson

                 Director of the Resource Administration

                 Missouri Department of Insurance, Financial Institutions and Professional Registration

Date:        November 1, 2006


Section 207 of the Flood Insurance Reform Act of 2004 requires all producers selling policies under the National Flood Insurance Program (NFIP) to be properly trained and educated about the NFIP to ensure producers may best serve their clients.

The federal law directs the Missouri Department of Insurance, Financial Institutions & Professional Registration (DIFP) to require property producers to complete a one-time course related to NFIP which will provide at least three hours of continuing education credit. These three hours are not required in addition to the normal 10 hours. NFIP flood courses are available through some approved continuing education providers. The failure to comply with this continuing education requirement may jeopardize the producer's authority to write insurance through the NFIP.

All Missouri state licensed insurance producers who sell federal flood insurance policies must comply with the minimum training requirements of Section 207, and basic flood education as outlined in 70 C.F.R. Sec. 52117, or such later requirements as published by the Federal Emergency Management Agency. Effective January 1, 2007, insurance producers are encouraged to fulfill these requirements by December 31, 2009. If an insurance producer has already taken the "What's New at the NFIP?" or the "NFIP: The 2007 EC made EZ" course, these courses can be used to fulfill the minimum training requirements.

Licensed insurers shall demonstrate to the director, upon request, that their licensed and appointed producers who sell federal flood insurance policies have complied with the minimum federal flood insurance training requirements.

Additionally, the Department suggests insurance producers selling or renewing homeowners' insurance policies advise their clients of the availability of flood insurance coverage.

Insurance producers seeking more information about NFIP workshops, can visit FEMA's NFIP Agent Workshop or call the NFIP at 888-318-5112.