Suspension

{
  "id": "MLC-T-INS-000240",
  "term": "Suspension",
  "field": "Insurance and risk management",
  "definition": "1. FEMA's removal of an NFIP participating community from the program because the community has not enacted and/or enforced the proper floodplain management regulations required for participation.\n\n2. The National Flood Insurance Act of 1968 prohibits FEMA from providing flood insurance in a community unless the community adopts and enforces floodplain management regulations that meet or exceed minimum NFIP criteria. A community can be suspended from the NFIP for failure to adopt compliant floodplain management measures or if it repeals or amends previously compliant floodplain management measures. A community can also be suspended from the NFIP for failure to enforce its floodplain management regulations.\nNew flood insurance coverage cannot be purchased and policies cannot be renewed in a suspended community. In addition, three-year policies become void at the end of the current policy year with a pro rata refund given for any remaining years of the original three-year policy term.\nNational Flood Insurance Program Requirements\n• 59.24 - Suspension of community eligibility\n• (a) Suspension for Failure to Adopt Regulations\n• (c) Suspension for Failure to Enforce Regulations",
  "subject": "National Flood Insurance Program",
  "references": [
    "FloodSmart Flood Insurance Glossary",
    "FEMA Glossary"
  ],
  "url": "https://mlchart.com/terminology/insurance/suspension/"
}