FLOOD07997

• County: Statewide
• Basin: Statewide
• Title: Flood Insurance Manual
• Date: 10/1/1992
• Prepared For: US
• Prepared By: National Flood Insurance Program
• Floodplain - Doc Type: Project

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in substitution for this policy and we have received a written concurrence
in the cancellation from any mortgagee of which the NFlP has actual notice,
or (ii) you have extinguished the insured mortgage debt and are no longer
required by the mortgagee to maintain the coverage.
Refund of any premium. under this subparagraph "c". shall be pro rata
"ut with retention of the expense constant.
F. Voidance. Reduction or Reformation of the Coverage By Us:
1. Voidance: This policy shall be void and of no legal force and effect
in the event that anyone of the following conditions occurs:
a. The property listed on the application is not eligible for coverage, in
which case the policy is void from its inception;
b. The community in which the property is located was not participating
in the National Flood Insurance Program on the policy's inception date and
did not qualify as a participating community during the policy's lenn and
before the occurrence of any loss for which you may receive compensation
under the policy. in which case the policy is void from its inception date;
c. If, during the term of the policy, the participation in the National Flood
Insurance Program of the community in which your propeny is located
ceases, in which case the policy shall be deemed void effective at the end
of the last day of the policy year in which such cessation occurred and shall
not be renewed; in the event the voided policy included three policy years
in a contract term of three years, you shall be entitled to a pro-rata refund
of any premium applicable to the remainder of the policy's term after
voidance of the policy;
d. ]n the event you or your agent have (i) sworn falsely or (ii) fraudulent-
ly or willfully concealed or misrepresented any material fact (including facts
relevant to the rating of this policy) in the application for coverage, or upon
any renewal of coverage. or in connection with the submission of any claim
brought under the policy, in which case this entire policy shall be void as
of the date the wrongful act was conunined or from its inception if this policy
is a renewal policy and the wrongful act occurred in connection with an
application for or renewal or endorsement of a policy issued to you in a
prior year and affects the rating of or premium amount received for this
policy. Refunds of premiums. if any, shall be subject to offsets for our ad-
ministrative expenses (including the payment of agent's commissions for
any voided policy year) in connection with the issuance of the policy;
e. The premium you submit is less than the minimum premium set fonh
in 44 CFR 61.10 in cOMection with any application for a new policy or
policy renewal. in which case the policy is void from its inception date.
2. Reduction of coverage limits or reformation: In the event that the
premium payment received by us is not sufficient to purchase the amounts
of building coverage and contents (personal propeny) coverage requested
or in the event a rating error has been innocently made by you or your agent
on the application, renewal. endorsement, or other form (whether evident
or not) resulting in insufficient premium being received by us for the pur-
chase of the amounts of coverage requested, then:
(i) If the insufficient premium or other rating error is discovered by us
prior to a loss under the policy. the policy shall be deemed to provide only
such coverage as can be purchased, for the entire term of the policy. for
the amount of premium received; provided. you may increase any reduced
coverage(s} at any time by payment of the correct premium for the addi-
tionallimits of coverage requested and any such correct premium received
by us prior to any loss under the policy shall result in coverage being pro-
vided for the loss up to the additional amount of coverage requested by
you. The application of the insufficient premium received to the provision
of flood insurance coverage shall be made as follows:
a. In the event thal only one kind of coverage (building coverage or con-
tents coverage) has been requested. you shall receive the limits of thai kind
of coverage which can be purchased for the amount of premium received.
less the expense constant;
b. In the event that both building coverage and contents coverage have
been requested, we shall determine the percentage ratio that each kind of
insurance bears to the total amount of coverage requested, apportion the
total premium received by the percentage ratio for each kind of coverage.
and you shall receive, as to each kind of coverage requested. the amount
of coverage which can be purchased by the premium amount as apponioned
for each kind of coverage; where both building and contents coverage are
requested and where the application of the above percentage ratio causes
the premium received, as apportioned by the ratio. 10 produce an amount
of premium for one of the kinds of coverage to be more than sufficient to
purchase the amount of insurance of that kind of coverage requested by
you, any such excess of apponioned premium will be applied to obtain an

October 1992

additional amount of the other kind of coverage until the amount of insurance
requested for the other coverage is obtained;
c. Provided, however, under this subsection (2.)(i) as to any mongagee
(or uustec:) named in the policy. we shall give a notice of additional premium
due and the right of reformation shall continue in force for the benefit only
of the mongagee (or trustee). up to the amount of your indebtedness, for
thirty (30) days after wrinen notice to the mortgagee (or trustee).
(ii) If the insufficient premium or other rating error is discovered by us
at the time of a loss under the policy, the policy shall be deemed to provide
coverage pursuant to the provisions of (i), above. unless:
a. You or your agent has sworn falsely or fraudulently or willfully con-
cealed or misrepresented any material fact (including facts relevant to the
rating of this policy) in the application for coverage, or upon any renewal
of coverage, or in connection with the submission of any claim brought
under this policy, in which case this entire policy shall be void as of the
date the wrongful act was commined or from its inception if this policy
is a renewal policy and the wrongful act occurred in connection with an
application for or renewal or endorsem~t of a policy issued to you in a
prior year and affects the rating of or premium amount received for this
policy.
Refunds of premiums, if any. shall be subject to offsets for our ad-
ministrative expenses (includina: the payment of agent's commissions for
any voided policy year) in connection with the issuance of the policy; or
b. Provided (ii)(a) above does not apply, you remit and we receive the
additional premium required to purchase (for the current policy term and
the previous policy term, if then insured) the limits of coverqe for each
kind of coverage as was initially requested by you within thirty (JO) days
from the date we give you written notice of additional premium due, in
which case the policy shall be reformed, from its inception date, to provide
flood insurance coverage to you in the amounts of coverage initially re-
quested. Silence or other failure to remit the additional premium required
or non-receipt of such premium by us within thiny (30) days from the dale
of notice of premium due shaU be deemed to be refusal to pay the addi-
tional premium due and any subsequent payment of the additional premium
due shall not reform the policy from its inception date but shall only add
the additional amounts of coverage to the policy for the remainder of its
term, pursuant to 44 CFR 61.11, with any excess of premium paid being
returned to you. Provided. however, under this subsection "b" as to any
mortgagee (ortruS1ee) named in the policy, we shall give a notice of addi-
tional premium due and the right of reformation shall continue in force for
the benefit only of the mortgagee (or trustee), up to the amount of your
indebtedness. for thirty (30) days after written notice to the mongagee (or
trustee); provided, further, weare under 00 obligation to send you any writ-
ten notice of additional premium due or notice of premium due under this
subsection.
G. Policy Renewal: The term of this policy commences on its inception
date and ends on its expiration date. as shown on the' 'Declaration Page"
which is attached to the policy. We are under no obligalion to send you
any renewal notice or other nOlice that your policy term is coming to an
end and the receipt of any such notice by you shall not be deemed to be
a waiver of this provision on our part. We are under no obligation to assure
that policy changes reflected in endorsements submitted by you during the
policy term and accepted by us are included in any renewal notice or new
policy which we send to you. "Policy changes" includes the addition by
you of new coverage (e.g. contents coverage added to a building coverage
policy or vice versa) or any increases in the amounts of coverage.
This policy shall not be renewed and the coverage provided by it shall
not continue into any successive policy term unless the renewal premium
payment is received by us at the office of the NFIP within 30 days of the
ex.piration dale of this policy. subject to Article VlII.F, above. If the renewal
premium payment is mailed by certified mail to the NFIP prior to the ex-
piration date. it shall be deemed to have been received within the required
30 days. The coverage provided by the renewal policy is in effect for any
loss occurring during this 30-day period even if the loss occurs before the
renewal premium payment is received. so long as the renewal premium
payment is received within the required 30 days. In all other cases, this
policy shall terminate as of the expiration date of the last policy term for
which the premium payment was timely received at the office of the NFIP.
and in that event. we shall not be obligated to provide you with any cancella-
tion, terminalion, policy lapse. or policy renewal notice advising you of
any such cancellation. termination. policy lapse. or policy renewal; pro-
vided. however with respect to any mongagee (or trustee) named in the

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