1. National Flood Insurance Program Bureau and Statistical Agent Flood Insurance Two-Year Preferred Risk Policy Eligibility Extension Kristin Minich, Regional Manager iService Team, Region X KMinich@ostglobal.com P: 360-658-8188

2. HousekeepingHousekeeping Attendees may be muted to reduce background noise To increase efficiency and so that we can end on time, –Use “Raise Hand” icon if you want to speak –Use “Q&A” feature to ask a question Please do NOT put your phone on “hold”, it plays the hold music for everyone else on this call. –If you have to step away, mute your phone or hang up and rejoin the call later. 2

3. National Flood Insurance Program Bureau and Statistical Agent Flood Insurance Two-Year Preferred Risk Policy Eligibility Extension Kristin Minich, Regional Manager iService Team, Region X KMinich@ostglobal.com P: 360-658-8188

4. Two-Year PRP Eligibility Extension A New Low-Cost Flood Insurance Option Two-Year Preferred Risk Policy (PRP) Eligibility Extension

5. Lesson One The Basics PRP Background –A Low Risk Rating Structure –Moderate-Low Risk Flood Zones B, C, D and X Zones –Standard Flood Insurance Policy Dwelling Form –Favorable Loss History

6. Learn more about the PRP, FEMA offers additional information online in the FEMA Library – Search Preferred Risk Policy eligibility to find: –a PRP Study Guide –Talking Points –Fact Sheet and FAQ’s The Basics, continued

7. The PRP Eligibility Extension Expanding the PRP –Eligibility Criteria –Risk Likelihood of Loss –Special Flood Hazard Area –Map Changes –Insurance Concept The lower the risk, the lower the insurance premium.

8. The PRP Eligibility Extension FEMA Map Service Center website for assistance at: WWW.MSC.FEMA.gov

9. Outreach Materials Exhibit A Exhibit B

10. To learn more about CRS, visit the FEMA website: –FEMA Library Community Rating System (CRS) Coordinator's Manual The PRP Eligibility Extension

11. Expanding the PRP, continued Reasons for Expanding the PRP Eligibility Criteria –Cost Savings Transitioning to Standard Rating –Mandatory Purchase Regulatory Mandate –Buying Time Time to Make Changes

12. More information about the Mandatory Purchase Requirement can be found at the FEMA website: –FEMA Library Mandatory Purchase Guidelines Expanding the PRP, continued

13. How the Process Works –Notify –Validate –Offer –Prepare Property Owner Expanding the PRP, continued

14. The Impact Revised Flood Maps Have on NFIP Flood Insurance –Newly Designated Flood Zones –High-Risk Property –Grandfathering –Positive of Negative? –Be A Hero

15. Weather, Landscape, or Development changes affect our Lives Rains cause flooding in Oregon December 29-30, 2011 – Between 8-10” Cordova, Alaska snow in early January 2012 – Between 4-5’ Snohomish, Washington November 2011 Flooding is the most common natural disaster

16. Lesson Two Two-Year PRP Eligibility Extension Period How the Two-Year Extension is Determined –Primary Responsibility Insurance Agent –Teamwork Floodplain Manager Insurance Agents

17. Eligibility Period, continued How the Two-Year Extension Period is Determined –Either January 1, 2011 or the effective date of the map revision, whichever is later –Map revision is between October 1, 2008 and December 3, 2010 –Map revision on or after January 1, 2011 –New policy, second year of extension

18. Properties Not Eligible The following properties are ineligible for the extension: Properties located in an Emergency Program community Properties newly designated within an SFHA by the initial FIRM, where the initial FIRM is the current FIRM Properties constructed in an SFHA after the effective date of the most recent FIRM Repetitive loss properties – including those with a “disqualifying loss” during the eligibility period Properties insured in the name of a residential condominium association eligible under the Residential Condominium Building Association Policy Leased Federal Properties Non-residential condominium units are ineligible for building coverage under the PRP Residential units in a non-residential condominium building are ineligible for building coverage under the PRP

19. Lesson Three – Notification and Documentation Who Notifies –Write-Your-Own –Direct Side Documentation –LOMA –LOMR –LODR –Recent Map –Current and Previous Map –Letter –Elevation Certificate –Flood Zone Determination New 2-Year PRP Eligibility Extension New 2-Year PRP Eligibility Extension

20. Lesson Four - Benefits Cost Savings Buys Time –Community and Insured Education –Risk –Property owners Prepare and Protect

21. Grandfathering Benefit At the end of the PRP extension, Policies on these buildings must be written upon its anniversary as standard-rated X-Zone policies. So in reality, The properties as shown on the old map moving from a B, C, D or X zone to SFHAs on the new map will not have to be rated at a SFHAs rate if the policy stays in force throughout the extension and is “grandfathered” after the extension period.

22. Benefits, Continued Insurance vs. SBA loan: $50,000 loan would require $320 monthly for 18.5 years (average); same $50,000 insurance coverage would cost $350 for annual premium Disaster Assistance is not always the answer –Presidential Declaration Most flooding events are not declared –Loan Have to be paid back –Must purchase flood insurance If located in a high-risk flood zone

23. Benefits, Continued

24. SummarySummary The Basics What You Need to Know Acceptable Documentation Congratulations! You’ve completed the Basics!

25. Summary, Continued Rating Option Moderate-Low Risk = Low Premium PRP Eligibility

26. Questions? (There will be a test) Q & A will be open for up to 15 minutes following the class Use “Raise Hand” feature to address the class verbally 26

27. Ask the Help Desk The Region X Help Desk is available for all your questions about the NFIP: RegionXHelpDesk@starr-team.com

28. Required for Continuing Education Credit 28

29. Test FAQ Required for Continuing Education Credit 70% is passing Two attempts You will receive results via email Certificate of attendance will be emailed upon completion 29

31. Self-Assessment Test Note: more than one answer may apply 1) Some property owners will find themselves in the position of having to purchase flood insurance when they did not before. This is the result of: a.Mandatory NFI Map Changes b.Mandatory Flood Zone Determinations c.Mandatory Purchase Requirements 2) Which of the following are a true statements about the PRP: a.The NFIP PRP is a low-cost rating structure used to insure buildings at moderate-low risk of flooding. b.The PRP offers the same coverage and provisions as a standard rated flood insurance policy. c.Information about the PRP can be found on the FEMA website.

32. Self-Assessment Test Note: more than one answer may apply 3) To qualify for the Two-Year PRP Eligibility Extension, property owners must: a.Prove that their building meets the elevation requirements of the community floodplain management ordinance. b.Prove that their building was previously or is currently zoned as moderate-low risk. c.Prove that they have had the building continuously insured through the NFIP since before the flood zone change. 4) Which of the following statements are True; Property owners benefit from the Two-Year PRP Eligibility Extension by: a.Saving NFIP premium dollars over the course of the eligibility extension period. b.Gaining time to prepare for an increase in flood insurance premium at the end of the eligibility extension period. c.Learning their current flood risk.