Cancellation Qualifying Reasons/RC 29 - Revision history

WikiAdmin: /* Reason Code 29: Building Physically Altered and No Longer Eligible for NFIP Coverage */

2025-03-26T15:33:45Z

Reason Code 29: Building Physically Altered and No Longer Eligible for NFIP Coverage

← Older revision		Revision as of 08:33, 26 March 2025
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	\|Documentation verifying the building’s ineligibility for NFIP coverage, such as photographs or other relevant proof.		\|Documentation verifying the building’s ineligibility for NFIP coverage, such as photographs or other relevant proof.
	\|}		\|}
	''This table can be seen on page 6-9 of the {{FIM\|171}}.''		''This table can be seen on page 6-9 of the {{FIM\|page=171}}.''

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

WikiAdmin at 19:20, 12 February 2025

2025-02-12T19:20:08Z

← Older revision		Revision as of 12:20, 12 February 2025
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	=== Reason Code 29: Building ~~physically altered~~ and ~~no longer eligible~~ for NFIP ~~coverage~~ ===		=== Reason Code 29: Building Physically Altered and No Longer Eligible for NFIP Coverage ===

	This reason code applies when a ~~policy must be canceled due to an error~~ in ~~the Risk Rating 2~~.~~0 premium calculation~~, ~~requiring the policy to be reissued with the correct rating~~.		This reason code applies when a building has been physically altered in such a way that it is no longer eligible for flood insurance coverage. An example of this scenario is when a policyholder removes a mobile home from a permanent foundation and places it on wheels, making it ineligible for NFIP coverage.

	{\| class="wikitable"		{\| class="wikitable"
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	\|-		\|-
	\|'''Eligibility for Cancellation'''		\|'''Eligibility for Cancellation'''
	\|A policy may be canceled if ~~an error in~~ the ~~Risk Rating 2.0 calculation resulted~~ in ~~an incorrect premium, and~~ a ~~corrected policy needs to be issued~~.		\|A policy may be canceled if the insured building has been physically altered in a manner that makes it ineligible for NFIP coverage.
	\|-		\|-
	\|'''Effective Date of Cancellation'''		\|'''Effective Date of Cancellation'''
	\|The ~~effective~~ date of the ~~incorrectly rated policy~~.		\|The date the building became ineligible for NFIP coverage.
	\|-		\|-
	\|'''Policy Terms Eligible for Refund'''		\|'''Policy Terms Eligible for Refund'''
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	\|-		\|-
	\|'''Type of Refund'''		\|'''Type of Refund'''
	\|A ~~full~~ refund, ~~including surcharges~~ and ~~fees, is applied to the canceled policy. The corrected policy is issued separately~~.		\|A pro-rata refund, excluding the HFIAA Surcharge, Federal Policy Fee, and Probation Surcharge.
	\|-		\|-
	\|'''Required Documentation'''		\|'''Required Documentation'''
	\|Documentation ~~showing~~ the ~~incorrect Risk Rating 2.0 calculation and the corrected rating determination~~.		\|Documentation verifying the building’s ineligibility for NFIP coverage, such as photographs or other relevant proof.
	\|}		\|}
	''This table can be seen on page 6-9 of the {{FIM\|171}}.''		''This table can be seen on page 6-9 of the {{FIM\|171}}.''

	==== Additional Guidance ====		==== Additional Guidance ====
	* ~~The corrected policy must be issued~~ to ~~replace~~ the ~~canceled policy with no lapse in~~ coverage.		* This reason code applies strictly to cases where the building itself has been physically altered, affecting its eligibility for NFIP coverage.
	* ~~Common Risk Rating 2.0 errors include:~~		* If the policyholder moves the building to a different location but it remains insurable, this reason code does not apply.
	* Miscalculated first-floor height.		* The cancellation effective date must reflect the date the building was physically altered and deemed ineligible.
	* Incorrect base flood elevation data.
	* Incorrect structure characteristics leading to ~~rating discrepancies~~.
	* ~~If a claim has been paid on~~ the ~~incorrectly rated policy, adjustments should be made through endorsement rather than cancellation~~ and ~~reissuance~~.

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

	* ~~Evidence of~~ the ~~rating miscalculation~~.		* Photographs or other visual evidence confirming the building alteration.
	* ~~Corrected rating determination~~.		* Documentation explaining how the alteration affected the eligibility of the building for NFIP coverage.

	=== Document Gallery ===		=== Document Gallery ===
	* '''~~Incorrect Rating Documentation~~:''' ~~Screenshot or underwriting memo highlighting~~ the ~~miscalculation~~.		* '''Photographs:''' Images demonstrating the physical alteration of the building.
	* '''~~Corrected Rating Details~~:''' ~~The new rating information used for~~ the ~~corrected policy~~.		* '''Verification Report:''' A report or official document confirming the ineligibility status.

	== Scenarios for Context ==		== Scenarios for Context ==

	'''Scenario 1:''' <br>		'''Scenario 1:''' <br>
	An NFIP ~~policy is issued with an incorrect premium due to an erroneous first-floor height calculation~~. The ~~underwriter identifies~~ the ~~mistake, cancels the policy, and issues a corrected policy with~~ the ~~proper premium~~.		A policyholder removes a manufactured home from a permanent foundation and places it on a wheeled chassis. This alteration makes the building ineligible for NFIP coverage. The insurer processes a cancellation effective the date of the modification.

	'''Scenario 2:''' <br>		'''Scenario 2:''' <br>
	A ~~homeowner’s flood policy premium~~ is ~~based on outdated base flood elevation data~~. ~~Upon review,~~ the ~~insurer determines that~~ the ~~property should have a lower rate. The~~ policy ~~is canceled and reissued with~~ the ~~correct premium calculation~~.		A commercial structure is converted into an open pavilion without walls, removing it from eligibility under NFIP guidelines. The underwriter reviews the documentation and cancels the policy effective the date of the modification.

	{{line-nfip-cxl}}		{{line-nfip-cxl}}

WikiAdmin at 19:16, 12 February 2025

2025-02-12T19:16:55Z

← Older revision		Revision as of 12:16, 12 February 2025
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	=== Reason Code 29: ~~Policy Canceled Due to Risk Rating 2.0 Calculation Error~~ ===		=== Reason Code 29: Building physically altered and no longer eligible for NFIP coverage ===

	This reason code applies when a policy must be canceled due to an error in the Risk Rating 2.0 premium calculation, requiring the policy to be reissued with the correct rating.		This reason code applies when a policy must be canceled due to an error in the Risk Rating 2.0 premium calculation, requiring the policy to be reissued with the correct rating.

WikiAdmin: Created page with "=== Reason Code 29: Policy Canceled Due to Risk Rating 2.0 Calculation Error === This reason code applies when a policy must be canceled due to an error in the Risk Rating 2.0 premium calculation, requiring the policy to be reissued with the correct rating. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be canceled if an error in the Risk Rating 2.0 calculation resulted in an incorrect premium, and a corrected..."

2025-02-12T19:06:44Z

Created page with "=== Reason Code 29: Policy Canceled Due to Risk Rating 2.0 Calculation Error === This reason code applies when a policy must be canceled due to an error in the Risk Rating 2.0 premium calculation, requiring the policy to be reissued with the correct rating. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be canceled if an error in the Risk Rating 2.0 calculation resulted in an incorrect premium, and a corrected..."

New page

=== Reason Code 29: Policy Canceled Due to Risk Rating 2.0 Calculation Error ===

This reason code applies when a policy must be canceled due to an error in the Risk Rating 2.0 premium calculation, requiring the policy to be reissued with the correct rating.

{| class="wikitable"
!'''Condition'''
!'''Details'''
|-
|'''Eligibility for Cancellation'''
|A policy may be canceled if an error in the Risk Rating 2.0 calculation resulted in an incorrect premium, and a corrected policy needs to be issued.
|-
|'''Effective Date of Cancellation'''
|The effective date of the incorrectly rated policy.
|-
|'''Policy Terms Eligible for Refund'''
|The current policy term.
|-
|'''Type of Refund'''
|A full refund, including surcharges and fees, is applied to the canceled policy. The corrected policy is issued separately.
|-
|'''Required Documentation'''
|Documentation showing the incorrect Risk Rating 2.0 calculation and the corrected rating determination.
|}
''This table can be seen on page 6-9 of the {{FIM|171}}.''

==== Additional Guidance ====
* The corrected policy must be issued to replace the canceled policy with no lapse in coverage.
* Common Risk Rating 2.0 errors include:
* Miscalculated first-floor height.
* Incorrect base flood elevation data.
* Incorrect structure characteristics leading to rating discrepancies.
* If a claim has been paid on the incorrectly rated policy, adjustments should be made through endorsement rather than cancellation and reissuance.

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

* Evidence of the rating miscalculation.
* Corrected rating determination.

=== Document Gallery ===
* '''Incorrect Rating Documentation:''' Screenshot or underwriting memo highlighting the miscalculation.
* '''Corrected Rating Details:''' The new rating information used for the corrected policy.

== Scenarios for Context ==

'''Scenario 1:''' <br>
An NFIP policy is issued with an incorrect premium due to an erroneous first-floor height calculation. The underwriter identifies the mistake, cancels the policy, and issues a corrected policy with the proper premium.

'''Scenario 2:''' <br>
A homeowner’s flood policy premium is based on outdated base flood elevation data. Upon review, the insurer determines that the property should have a lower rate. The policy is canceled and reissued with the correct premium calculation.

{{line-nfip-cxl}}