In the wake of Hurricane Ike, the Department has received numerous inquiries and complaints involving the insurers and agents participating in the National Flood Insurance Program ("NFIP"). Certain state and federal regulations, including House Bill 4409, recently enacted by the 81st Texas Legislature, require certain persons to carry flood insurance. This bulletin is to provide notice to agents, carriers and all persons engaged in the Write Your Own (WYO) NFIP Program in Texas, that the Texas Department of Insurance will exercise its full regulatory authority as it relates to the writing, marketing, soliciting and delivery of the Standard Flood Insurance Policy (SFIP) through the WYO program.
Current case law reflects that state law is applicable to actions arising during the policy procurement process of SFIPs issued by WYO carriers through the NFIP. It is the duty and responsibility of the agents and carriers operating in Texas to comply with the Texas Insurance Code and any other regulatory statutes that are applicable to the license and activities of the agent or carrier. The Department will thus review complaints and bring regulatory actions against WYO carriers, agents and persons that violate the Texas Insurance Code, including, but not limited to, fraud, misrepresentations, negligence, or deceptive, unfair, or prohibited practices during the procurement process. Complaints and inquiries concerning the procurement of SFIPs should be directed to: the Department's Consumer Protection Division at www.tdi.state.tx.us/consumer/complfrm.html or 800-252-3439.
The Federal Emergency Management Agency asserts that complaints and inquiries pertaining to the claims handling process should be directed to FEMA at 800-621-FEMA (3362). Further information may also be found at FEMA's website, www.fema.gov. Policyholders should note that the time to appeal a flood insurance claim decision to FEMA is limited and may not be subject to review in the courts if the policyholder is not in full compliance with FEMA's appeal requirements.
Mike Geeslin
Commissioner of Insurance