Indiana: Commissioner Issues Bulletin on Flood Insurance Training

Indiana Insurance Commissioner Jim Atterholt issued Bulletin 160 on Feb. 12, instructing licensed and prospectively licensed producers about required training for the National Flood Insurance Program.

The Indiana Bulletin is loosely based on the NAIC’s Model Bulletin that was adopted in September 2006 after collaboration with the Federal Emergency Management Agency. The Model Bulletin sets out certain minimum NFIP training requirements for agents as provided for in the Flood Insurance Reform Act of 2004.

The Indiana Bulletin differs from the NAIC Model Bulletin in two significant ways. First, the NAIC Bulletin imposes a duty on licensed insurers to demonstrate upon request that their producers who sell flood insurance have complied with the training requirements. NAMIC has objected to that provision in that it is inconsistent with continuing education reporting requirements in Indiana and other jurisdictions. The Indiana Bulletin places the burden for demonstrating compliance on the producer only.

Second, while the NAIC Model Bulletin does not include specific dates for compliance, the Indiana Bulletin provides that agents licensed before July 1, 2008, must comply with the training requirements by June 30, 2010, or by the date of the producer’s first flood insurance sale, solicitation, or negotiation of flood insurance, whichever is later. Producers licensed after June 30, 2008, must comply prior to their flood insurance transaction.

Direct questions to NAMIC's Regulatory Affairs Counsel Marsha Harrison.

Posted: Tuesday, February 19, 2008 12:00:00 AM. Modified: Tuesday, February 19, 2008 1:20:41 PM.

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