WikiAdmin: /* Reason Code 27: Property Becomes Ineligible for Coverage During Policy Term */

2025-03-26T15:33:19Z

Reason Code 27: Property Becomes Ineligible for Coverage During Policy Term

← Older revision		Revision as of 08:33, 26 March 2025
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	\|Evidence of ineligibility, such as community suspension documentation, Section 1316 declaration, or FEMA correspondence.		\|Evidence of ineligibility, such as community suspension documentation, Section 1316 declaration, or FEMA correspondence.
	\|}		\|}
	''This table can be seen on pages 6-8 and 6-9 of the {{FIM\|170}}.''		''This table can be seen on pages 6-8 and 6-9 of the {{FIM\|page=170}}.''

	==== Additional Guidance ====		==== Additional Guidance ====

WikiAdmin: Created page with "=== Reason Code 27: Property Becomes Ineligible for Coverage During Policy Term === This reason code applies when a property that was initially eligible for NFIP coverage becomes ineligible during the policy term due to a change in status, such as a community suspension or a Section 1316 violation. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be canceled if the property, which was eligible at the time of appl..."

2025-02-12T19:03:25Z

Created page with "=== Reason Code 27: Property Becomes Ineligible for Coverage During Policy Term === This reason code applies when a property that was initially eligible for NFIP coverage becomes ineligible during the policy term due to a change in status, such as a community suspension or a Section 1316 violation. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be canceled if the property, which was eligible at the time of appl..."

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=== Reason Code 27: Property Becomes Ineligible for Coverage During Policy Term ===

This reason code applies when a property that was initially eligible for NFIP coverage becomes ineligible during the policy term due to a change in status, such as a community suspension or a Section 1316 violation.

{| class="wikitable"
!'''Condition'''
!'''Details'''
|-
|'''Eligibility for Cancellation'''
|A policy may be canceled if the property, which was eligible at the time of application, becomes ineligible due to a FEMA designation, such as a community suspension or Section 1316 floodplain management violation.
|-
|'''Effective Date of Cancellation'''
|The first renewal date after the property became ineligible.
|-
|'''Policy Terms Eligible for Refund'''
|All policy terms since the first renewal date after ineligibility was established, up to 5 years prior to the request.
|-
|'''Type of Refund'''
|A full refund, including surcharges and fees, less any claims paid.
|-
|'''Required Documentation'''
|Evidence of ineligibility, such as community suspension documentation, Section 1316 declaration, or FEMA correspondence.
|}
''This table can be seen on pages 6-8 and 6-9 of the {{FIM|170}}.''

==== Additional Guidance ====
* Common reasons for ineligibility include:
* The property is in a community suspended from NFIP participation.
* The property is designated as a Section 1316 violation due to noncompliance with floodplain management regulations.
* Annexation of the property into a non-participating NFIP community.
* If the property was never eligible for coverage at the time of application, use **Reason Code 06** instead.
* If a claim has been paid under the policy, the policyholder must return the claim payment before a refund is issued.

== Required Documents ==
To process this cancellation reason, underwriters must verify the documentation provided.

* FEMA notification confirming property ineligibility.
* Community suspension or Section 1316 violation documentation.

=== Document Gallery ===
* '''FEMA Community Suspension Notice:''' Documentation showing the property’s ineligible status.
* '''Section 1316 Declaration:''' Proof of noncompliance leading to ineligibility.

== Scenarios for Context ==

'''Scenario 1:''' <br>
A property was insured under NFIP but later received a Section 1316 violation due to noncompliance with floodplain management regulations. The insurer cancels the policy at the first renewal after the violation and issues a full refund.

'''Scenario 2:''' <br>
An insured property was located in an NFIP-participating community but later became ineligible when the community was suspended from the program. The policy is canceled at the first renewal date following suspension, with a refund provided for applicable terms.

{{line-nfip-cxl}}

Cancellation Qualifying Reasons/RC 27 - Revision history

WikiAdmin: /* Reason Code 27: Property Becomes Ineligible for Coverage During Policy Term */