Probation

{
  "id": "MLC-T-INS-000190",
  "term": "Probation",
  "field": "Insurance and risk management",
  "definition": "1. A FEMA-imposed change in a community's status resulting from violations and deficiencies in the administration and enforcement of NFIP local floodplain management regulations.\n\n2. When attempts to resolve enforcement problems through community assistance or consultation have failed, the FEMA Regional Director may place a community on probation. The probationary period lasts at least until all program deficiencies have been corrected and violations have been remedied to the maximum extent possible, and it may be extended for up to one year after that. Probation has no effect on the continued availability of flood insurance; however, an additional charge of $50.00 will be added to the premium for each policy for a period of at least one1 year.\nWhen the community is given the 90-day written notice of probation, there is concurrent notification to the affected Congressional delegation, a 90-day notice to each flood insurance policyholder in the community that they will be surcharged $50 because of actions by their community, and a 60-day notice in the form of a press release to local media.\nIf the community fails to take remedial measures during the probationary period, the Regional Director may recommend suspension from the NFIP. A community may also be reinstated on probationary status after having been suspended.\nNational Flood Insurance Program Requirements\n• 59.24 (b) - Probation",
  "subject": "National Flood Insurance Program",
  "references": [
    "FloodSmart Flood Insurance Glossary",
    "FEMA Glossary"
  ],
  "url": "https://mlchart.com/terminology/insurance/probation/"
}