Required Cancellation Signatures: Difference between revisions

Latest revision as of 08:13, 2 December 2024

Required Signatures by Reason Code

See the FIM for specific details about the table below.

Reason Code	Agent's Signature	Insured's Signature
01 - Building sold, removed, or destroyed	X	X^[1]
02 - Contents sold, removed, or destroyed	X	X
03 - Establish a common expiration date	X	X
04 - Duplicate NFIP policies	X	X^[2]
05 - Invalid payment	X
06 - Property not eligible for coverage
07 - Property closing did not occur	X	X
10 - Policy converted to RCBAP	X	X
13 - Nullification prior to policy effective date	X	X
20 - SRL written with incorrect insurer	X	X
21 - Continuous lake flooding or closed basin lakes
22 - Cancel and rewrite due to administrative error
23 - Fraud or misrepresentation
26 - Duplicate policy from a source other than NFIP	X	X
27 - Property becomes ineligible during term
28 - Insurance no longer required by lender	X	X
29 - Building physically altered	X	X^[3]
30 - Insufficient premium to retain coverage

↑ Not required if the building was foreclosed and the lender is entitled to a refund.
↑ Not required when the insurer created a duplicate policy with a later effective date.
↑ Not required if the building became ineligible for coverage during the middle of the policy term due to a physical alteration of the building.

Electronic Signatures

As an agent, it's important to know that NFIP insurers are encouraged to use electronic signatures to streamline processes and enhance the customer experience. FEMA fully supports the use of electronic signatures and ensures they are legally valid, provided they meet certain criteria.

To comply with requirements, electronic signatures must:

Be in an acceptable electronic format;
Clearly indicate the signer's intent to sign the document;
Be attached to or associated with the signed document;
Include a method to identify and authenticate the signer; and
Ensure the integrity of the signed document is preserved.

Agents should verify that electronic signatures meet these standards and align with their insurer's policies and applicable laws.

This page contains details about NFIP Cancellations.
Find more in the How To Cancel section of the NFIP Flood Insurance Manual.

[1] Not required if the building was foreclosed and the lender is entitled to a refund.

[2] Not required when the insurer created a duplicate policy with a later effective date.

[3] Not required if the building became ineligible for coverage during the middle of the policy term due to a physical alteration of the building.

[1]

[2]

[3]

@@ Line 1: / Line 1: @@
-{{draft}}{{info-nfip-sfip}}
+{{info-nfip-sfip}}
-{{line-nfip-cxl}}
+== Required Signatures by Reason Code ==
+[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=176 See the FIM for specific details about the table below.]
+{| class="wikitable sortable"
+!'''Reason Code'''
+!'''Agent's<br>Signature'''
+!'''Insured's<br>Signature'''
+|-
+|01 - Building sold, removed, or destroyed
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''<ref>Not required if the building was foreclosed and the lender is entitled to a refund.</ref>
+|-
+|02 - Contents sold, removed, or destroyed
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|03 - Establish a common expiration date
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|04 - Duplicate NFIP policies
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''<ref>Not required when the insurer created a duplicate policy with a later effective date.</ref>
+|-
+|05 - Invalid payment
+| style="text-align:center;" |'''X'''
+|
+|-
+|06 - Property not eligible for coverage
+|
+|
+|-
+|07 - Property closing did not occur
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|10 - Policy converted to RCBAP
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|13 - Nullification prior to policy effective date
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|20 - SRL written with incorrect insurer
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|21 - Continuous lake flooding or closed basin lakes
+|
+|
+|-
+|22 - Cancel and rewrite due to administrative error
+|
+|
+|-
+|23 - Fraud or misrepresentation
+|
+|
+|-
+|26 - Duplicate policy from a source other than NFIP
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|27 - Property becomes ineligible during term
+|
+|
+|-
+|28 - Insurance no longer required by lender
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''
+|-
+|29 - Building physically altered
+| style="text-align:center;" |'''X'''
+| style="text-align:center;" |'''X'''<ref>Not required if the building became ineligible for coverage during the middle of the policy term due to a physical alteration of the building.</ref>
+|-
+|30 - Insufficient premium to retain coverage
+|
+|
+|}
+<references />
+== Electronic Signatures ==
+As an agent, it's important to know that NFIP insurers are encouraged to use electronic signatures to streamline processes and enhance the customer experience. FEMA fully supports the use of electronic signatures and ensures they are legally valid, provided they meet certain criteria.
-== Electronic Signatures ==
+To comply with requirements, electronic signatures must:
-NFIP insurers must sell and service NFIP policies in a customer-centric manner as part of their normal business practices. To improve the policyholder’s experience and to reduce administrative burden, FEMA approves and encourages the use of electronic signatures on NFIP transactions. FEMA will not deny the legal effect, validity, or enforceability of
+* Be in an acceptable electronic format;
-a signature solely because it is in electronic form. Insurers should accept electronic signatures in accordance with their general business practices and applicable laws.
+* Clearly indicate the signer's intent to sign the document;
+* Be attached to or associated with the signed document;
+* Include a method to identify and authenticate the signer; and
+* Ensure the integrity of the signed document is preserved.
+Agents should verify that electronic signatures meet these standards and align with their insurer's policies and applicable laws.
-Electronic signatures must comply with the following requirements.
+{{line-nfip-cxl}}
-* The signer must use an acceptable electronic form of signature;
-* The electronic form of signature must be executed or adopted by a person with the intent to sign the electronic document;
-* The electronic form of signature must be attached to or associated with the electronic document being signed;
-* There must be a means to identify and authenticate a particular person as the signer; and
-* There must be a means to preserve the integrity of the signed document.