Pub. 12 2021 I Issue 2 Summer 29 West Virginia Banker or the maximum amount of the coverage available under the Act for the type of property and that other key aspects of the policy are accurate, like the borrower’s name and address. Lastly, if a policy lacks the compliance aid assurance clause, the lender is still free to review the policy to determine if it meets the criteria under discretionary Acceptance from the Regulation. But it must still determine, even if the policy does not meet the requirement for discretionary Acceptance, whether they are still required to accept under mandatory Acceptance. Discretionary Acceptance Key Takeaways Under the discretionary acceptance test, lenders must evaluate the sufficiency of the insurer’s solvency, strength, and ability to satisfy claims under general safety and soundness principles. They may obtain information from a State insurance regulator for the State where the property is located and rely on licensing and other processes used by the State insurance regulator for such an evaluation. Additionally, if a lender has previously accepted a private flood insurance policy under the discretionary acceptance requirements and that policy is renewed, the lender still must review the policy to ensure it continues to meet the discretionary acceptance requirements. A conclusion to this fact must be documented in writing. General Compliance Key Takeaways There are additional requirements when it comes to mandatory Acceptance or discretionary Acceptance and deductibles when it comes to coverage amounts exceeding or not exceeding the amount available under the NFIP. Additionally, lenders are not prohibited when using a third party to review private flood insurance policies from charging a fee to the borrower. Disclosure requirements regarding the fee do come into play, however. If a declarations page provides enough information for the lender to make a determination on mandatory or discretionary Acceptance, or if the declarations page contains the compliance aid assurance clause, lenders are free to rely on the declarations page to determine if the policy complies with the Regulation but should request additional information about the policy if not able to make that determination. Lastly, servicers must comply with the Regulation as well when determining whether private flood insurance may be accepted under the mandatory or discretionary acceptance provisions if the lender is supervised by the Agencies. Elizabeth K. Madlem, Associate General Counsel Elizabeth has come back to Compliance Alliance as Associate General Counsel and Compliance Officer. Elizabeth will be handling C/A document reviews, participating in the Education department, and contributing as a featured author. She is looking forward to assisting members with their compliance and regulatory questions. Contact Membership Development Team at (888) 353-3933 or firstname.lastname@example.org . There are additional requirements when it comes to mandatory Acceptance or discretionary Acceptance and deductibles when it comes to coverage amounts exceeding or not exceeding the amount available under the NFIP. Additionally, lenders are not prohibited when using a third party to review private flood insurance policies from charging a fee to the borrower.