Question:
The private flood insurance regulations have a provision requiring an insured to file suit not later than one year after the date of a written denial for all or part of a claim under a policy, but the policy we’re looking at does not contain this provision. Is this policy acceptable if it meets the other criteria?
Answer:
Unfortunately, it does have to have the provision regarding filing suit no later than 1 year.
The bank may still be able to accept it under discretionary acceptance provisions though.
Commenters asserted that the section of the proposed definition stating that a policy must require an insured to file suit not later than one year after the date of a written denial of all or part of a claim under the policy would disqualify private policies with different or no statutes of limitations. However, this provision also is part of the statutory definition,[24] and, therefore, the Agencies are retaining it in the final rule.
https://www.federalregister.gov/d/2019-02650/p-55
You can also find that in our checklist:
https://www.compliancealliance.com/find-a-tool/tool/private-flood-insurance-policy-checklist
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