March 31, 2010

Dear Travelers Flood Agent,

Congress failed to extend the National Flood Insurance Program (NFIP) authorization before it expired on March 28, 2010. Congress is now in recess until April 12, 2010 which means until Congress votes to extend the program, we are faced with a lapse in the NFIP.

We are hopeful that Congress will act quickly upon their return and it is expected that they will provide retroactive reauthorization for the NFIP. With this in mind, FEMA has provided guidance to all Write Your Own insurers on what should be done during this hiatus (see FEMA Bulletin for more information). We have tried to simplify this guidance for you in the attached document.

PLEASE NOTE: During this hiatus, no credit cards, E-Checks or ACH Transactions (agency sweep) will be accepted.

FEMA is due to release a document of Frequently Asked Questions for agents and consumers later today. We will be posting that information for your use as soon as it is available.

Properly advising your customers on how this lapse in the NFIP affects them is your responsibility, but we are here to help. If we can be of any assistance, please contact us at 800.356.6670 Option #4.