NCOIL ADOPTS RESIDENTIAL FLOOD INSURANCE MODEL ACT

The National Council of Insurance Legislators (NCOIL), at its “summer meeting” in Alexandria, Virginia, has adopted the Primary Residential Flood Insurance Model Act to serve as the template for state legislators in developing robust flood insurance programmes in their states. The model act was approved by the organisation’s Special Committee on Natural Disaster Recovery and is expected to be affirmed by the executive committee this week. The model recommends that states utilise a “use and file” or “file and use” rate filing system for private flood cover, and requires insurers to attest that rates are based on actuarial data methodologies, standards and guidelines that are not excessive, inadequate or unfairly discriminatory. NCOIL said the act is “designed to encourage a robust private primary residential flood market to provide consumer choices and alternatives to the existing National Flood Insurance Programme.”