FOR IMMEDIATE RELEASE

NAIC MODEL BULLETIN STRENGTHENS REQUIREMENTS FOR SELLING
FLOOD INSURANCE
Establishes Minimum Level of Training and Education

ST. LOUIS (Sept. 11, 2006) - The National Association of Insurance Commissioners (NAIC) adopted Sunday a model bulletin regarding training requirements for insurance producers who offer policies through the National Flood Insurance Program (NFIP).

This effort relates to Section 207 of the Flood Insurance Reform Act of 2004, which requires all producers, with a property line of authority, selling flood insurance policies under the NFIP to be properly trained and educated about the program to ensure their clients receive the best service possible.

The bulletin sets forth that the Federal Emergency Management Agency and state-approved continuing education providers are developing courses related to the NFIP.

In addition, the bulletin states that an insurance producer who sells flood insurance may satisfy the minimum training and education requirements by completing a course related to the NFIP, which may be approved for three hours of continuing education credit. The failure to comply with this continuing education requirement may jeopardize the producer's authority to write insurance through the NFIP.

"This is an important step in the states' efforts to support FEMA in establishing minimum training and education requirements for all insurance agents who sell flood insurance policies," said Iowa Commissioner of Insurance Susan Voss.

Flood Model Bulletin

About the NAIC

Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC's overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm

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