Office of the Commissioner of Insurance - 1 - Issue 1 - Summer 2012

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S Issue 1 - Summer 2012

Commissioner’s Note IN THIS ISSUE:

By Ted Nickel, Commissioner of Insurance Talk to Clients About Flood I have hit an to be compelled by the romantic early Insurance...... 2 age where I beginning of insurance embodied by Administrative Actions...... 2 start to look Lloyd’s – sea captains, long voyages and Continuing Education...... 3 back at this pirates! Electronic License world, and Renewals Required...... 3 the truth In the 1600’s and 1700’s, captaining a is it is not ship was a dangerous and uncertain busi- Biennial Regulation Fees - the same ness. A sea captain might take goods from Renewal Notices...... 3 as it was England to South East Asia. He might Print Your License...... 3 when I was return with silk, tea, and exotic spices. E-mail Correspondence...... 3 younger. Along the way, he could face uncertain And it is weather, storms, uncharted rocks, and at- Recently Enacted definitely tacks by pirates. The uncertainty of these Legislation...... 4 not the same for my father. My office is voyages made them very risky in life and Application Procedures not the same as the office he used to work financially. Insurance was important to Following License at in Merrill, Wisconsin. Technology protect the ship’s owner from facing a Cancellation...... 5 has changed the way insurers and the total loss. Because Lloyds Coffee House Name or Address Changes.. 5 OCI do business. These changes are was a popular spot for local sea captains, leading to new tools, new opportunities, it was used as a place for them to meet, Advertising Requirements and ultimately changes in the way we share the latest intelligence, and gos- for Agents that Market regulate. We used to wait for a paper sip – and more importantly arrange for Medicare Supplement copy of a bill signed by the Governor, insurance. Policies...... 5 now we just wait until it is posted Medicare Information on-line. With our state insurers getting By creating a market of insurers (called Now Available in Sign bigger, and our insurers becoming more underwriters then) Lloyd’s Coffee House Language...... 5 international in scope, we are forced ensured captains were able to protect 2012 Milestones...... 6 to look at issues not only from a state themselves from problems caused by Updated Publications ...... 6 perspective but also from a national and uncertain events. And linking underwrit- international perspective. Wisconsin ers together in a group – through Lloyds Long-Term Care Insurance has the 8th largest domestic insurance – ensured that if a ship owner suffered Training Requirements ...... 6 market in the U.S. Part of my job is to a loss, the underwriters had access to Annuity Training ensure that our companies can continue the money to pay. It was one of the first Requirements ...... 6 to provide both good insurance and good insurance markets. Adequate Flood Insurance jobs for Wisconsin residents. Coverage Takes Community But that market was largely unregulated. Effort...... 7 While the business of insurance has As the industry expanded in size and changed, many of its principles have not into new markets, regulation became and should not. I was talking to our new necessary. In Wisconsin, Secretary of Deputy Legal Counsel, Richard Wicka, State Llywelyn Breese was not only about all of these changes. Before his Wisconsin’s first insurance commissioner work with the 11th Circuit Court of Ap- in 1870, but also the first President of peals, he had done some work with one the National Association of Insurance of the earliest insurance entities in the Commissioners. Inger Williams (who world – Lloyd’s of London. It’s hard not Continued on page 2 Office of the Commissioner of Insurance - 2 - Issue 1 - Summer 2012 Continued from page 1 future of insurance regulation is now Talk to Clients About months overdue. is in charge of records at OCI) recently • The Patient Protection and Affordable Flood Insurance showed me the “First Annual Report of Care Act (PPACA) adds new federal Property and casualty insurance agents in the Insurance Department” issued by him regulatory requirements to health in- Wisconsin should talk with their clients in 1870. At that time, Wisconsin had 80 surance and a federal health insurance about the need for flood insurance. companies doing business in the state exchange. including 8 Wisconsin companies. The • Insurance agents are seeking legisla- There are a number of myths about companies wrote just over $6.7 million in tion to make it easier to sell insurance flood insurance. These myths lead premiums. in multiple states. consumers to believe that they are unable • International regulators are increas- to purchase flood insurance or that it is We can literally “picture” insurance ingly concerned about inconsistent too expensive. This is where an agent regulation in Gina Frank’s office. Gina, regulatory requirements between our can be an invaluable source of advice. who is our Administrator of the Division states and their country. Many Ameri- Flood insurance policies have a 30-day of Regulation and Enforcement, has two can companies want to make sure waiting period before they take effect. of the earliest pictures of the insurance they can compete on equal footing Most people are unaware of this waiting department. The 1895 insurance depart- with international companies. period. ment was presided over by Commis- • The National Association of Insur- sioner William A. Fricke and consisted ance Commissioners is continuing to The standard homeowner’s policy does of 7 men. By 1899, Commissioner Emil work to ensure the state-based regula- not cover property and possessions in Giljohann (the first commissioner born tory system becomes more efficient the event of a flood. Just a few inches in Wisconsin) presided over an insur- and consistent through use of technol- of flood water can cause thousands of ance department of 9 men and 3 women ogy and more consistent standards. dollars in damage. (apparently Commissioner Giljohann was • Congress continues to punt on issues more progressive). like flood insurance, Medicare and Flood insurance is relatively inexpensive Medicaid funding, and other issues. and is available under the National Flood Times have changed. Our staff has 76 Insurance Program (NFIP), a federally- women and 71 men. We still keep all re- And if that is not enough, all this is set backed program managed by the Federal cords in our office including early papers, against a backdrop of the Supreme Court Emergency Management Agency microfilm, microfiche, and other formats, deciding several important cases defining (FEMA). According to the FEMA but we’re in the process of converting the relationship between the states and Web site, the average cost of the policy them to an electronic format as well. Our the federal government (including the is slightly more than $300 a year for primary communications vehicle is now lawsuit on federal health care reform). approximately $100,000 of coverage. electronic, rather than the U.S. mail. We regulate over 380 domestic companies The Wisconsin OCI has long played a Under the flood insurance program, and over 3,000 companies overall. Our key role in insurance regulation both coverage may be purchased as long as employees include everyone from Nate individually and through its involvement the property is located in a community Raygor (a new law clerk still taking with the National Association of Insur- that participates in the NFIP. To verify exams) to Marcia Elliott (our Webmaster ance Commissioners. While change is if a community participates, check who began her work at OCI in the typing inevitable, I will work hard to be sure with a property insurance agent or visit pool over 35 years ago). We even have we remain at the head of the table. We the FEMA Web site at www.fema. several employees who have emigrated need to be certain that any changes to gov/business/nfip. Information on the from other countries and have mastered come will reflect the unique and diverse program can be obtained by calling English as their second language. insurance marketplace in Wisconsin and 1-800‑427-2419 or visiting www. ultimately benefit Wisconsin consumers. floodsmart.gov. As much as we have changed, more We have a great insurance department changes are coming. For example: with a professional staff and, as always, we will rely on their expertise as new • Dodd-Frank not only created new issues and perspectives arise. Wisconsin Administrative Actions federal rules for the collection of pre- continues to be well placed as a national mium taxes for some lines of insur- leader on insurance issues well into the OCI does not include its administrative ance but also created a new Federal foreseeable future. actions in this edition of the Wisconsin Insurance Office. Their report on the Insurance News. Administrative actions taken by OCI for the previous period are available for review at: oci.wi.gov/ins_ rev/1011_0312admact.pdf Office of the Commissioner of Insurance - 3 - Issue 1 - Summer 2012 Continuing Education Biennial Regulation Fees - Renewal Notices Resident-intermediary agents who locations, or view or print their tran- hold a license in any of the major lines script at any time on Sircon’s Web site at Agents are required to submit their of insurance must complete a total of www.sircon.com/Wisconsin by selecting biennial regulation fee in order to 24 credit hours of continuing education “Look up education courses/credits” and continue conducting insurance business during the biennium. At least 3 credit following the prompts. The continuing in Wisconsin. Approximately 60 days hours must be in the ethics of insurance. education provider also can be contacted prior to license expiration, OCI mails a The major lines include Property, directly to determine if the completed renewal notice to the mailing address that Casualty, Personal Lines P&C, Life, course has been submitted for approval the agent has on file with our office. All and Accident and Health, or the limited in Wisconsin or to bank any approved notices are sent by first class mail and line of Automobile. Excess credit hours credits. There is no grace period for the are in a postcard format. Renewal fees accumulated during any reporting period completion of the required continuing must be paid by credit card, debit card, or will not be carried forward to the next education courses during the biennium. electronic check. reporting period. Internet Transcripts Available from Resident agents who are required to Sircon Print Your License complete continuing education will The transcript mentioned above can be receive a notice mailed 90 days prior to printed free of charge by logging on to Agents and firms can print a copy the expiration date if they are deficient www.sircon.com/wisconsin. By printing of the license on the OCI Web site in course credits. Agents are encouraged and viewing the transcript, agents at oci.wi.gov. to not wait until the last few weeks can take any action that is necessary of their reporting period to complete to add, delete, or change information • Click “Print your license” under continuing education. By rule, continuing that is inaccurate. To correct credit “How Do I?” / “Apply for an education providers are given 10 days to discrepancies, agents are required to Insurance License” electronically bank the credits, and paper contact their continuing education confirmation of continuing education is provider(s) directly. These discrepancies • Select the “Agent Search” or not acceptable. Agents should complete can only be resolved between the “Agency Search” tab all continuing education at least 10 agent, the provider and Pearson VUE. days before the expiration date in order Agents may contact Pearson VUE at • Enter License No. to avoid revocation of the license and 1-800-274‑4679 for answers to general termination of appointment(s). questions, to obtain information on • Click “Search” course availability, and to confirm if Agents can view lists of approved credits have been banked in an agent’s • Click “Print License” providers, approved courses, and course individual record.

Electronic License Renewals Required E-mail Correspondence Resident or nonresident agents must renew their license online either by credit We would like to remind our card, debit card or electronic check. Agents have the following three options to constituents that we do respond make these payments: to e-mail correspondence from SIRCON­ (www.sircon.com/wisconsin)—All payments made at this site are consumers and from companies, and made in real time to the Office of the Commissioner of Insurance (OCI), and those contacts are often the quickest an agent’s record is updated immediately. Sircon adds a $6 transaction fee in way to get questions answered or addition to the renewal fee. transact business. However, please Office of the Commissioner of Insurance (oci.wi.gov)—A $1 transaction fee is note that e-mail that you send us added in addition to the renewal fee. Due to a 72-hour time delay in posting the is not necessarily secure against transaction with this option, agents making payments within five days of their interception. Therefore, please do expiration date are required to use Sircon to avoid delays or license cancellation. not send us any e-mail with sensitive National Insurance Producer Registry (www.nipr.com)—A $5 transaction fee information like your Social Security is added in addition to the renewal fee. number. If you must provide us with such information contact us in writing Agents with questions may visit our Web site at oci.wi.gov or contact OCI Agent by U.S. mail. Licensing at [email protected]. Office of the Commissioner of Insurance - 4 - Issue 1 - Summer 2012 Recently Enacted Legislation

Governor Scott Walker recently signed a The provisions of Act 120 first apply to The Act also prohibits intermediaries number of bills affecting the business of license applications received on June 1, from issuing a misleading certificate of insurance. This summary is for infor- 2012. insurance. mational purposes and is not the office’s interpretation of these newly enacted 2011 Wisconsin Act 183 – Various The Act specifies commercial liability laws. It is recommended that copies of changes to the worker’s compensation policies are exempt from requirements applicable laws be obtained. Copies of law. The Act makes changes to the to offer uninsured motorist, underinsured any legislation are available from Leg- worker’s compensation statutes affecting motorist and medical payments islative Documents, 1 East Main Street, claims and payments including rates for coverages if the incidental coverage for Madison, WI 53703, and (608) 266-2400 permanent partial disability, the standard motor vehicles is limited to only non- or through the Legislature’s Web site at deviation for disputed fees, persons re- owned motor vehicles. It also specifies legis.wisconsin.gov. ceiving vocational rehabilitation training, commercial automobile liability policies compensation for permanent disfigure- are subject to the requirements to offer 2011 Wisconsin Act 46 – Small Busi- ment, and submission of practitioner’s uninsured motorist, underinsured motorist ness Regulatory Review Board. The Act reports to the Department of Workforce and medical payments coverages. changes the membership of the Small Development (DWD). The Act also Provides minimum coverage limits for Business Regulatory Review Board makes changes to the worker’s compen- exempt policies that do provide such (SBRRB). It requires each state agency to sation law supplemental benefit fund coverages. The Act also clarifies that assist small businesses in complying with and requires DWD to conduct a study on only one named insured is required to agency rules and encourage small busi- certain aspects of worker’s compensation. reject medical payments or underinsured ness participation in administrative rule Act 183 became effective on April 17, motorist coverages. development. It requires state agencies 2012. Certain provisions of Act 183 are to designate a small business regulatory applicable between April 17, 2012, and The Act clarifies that retained asset coordinator and publicize the coordina- December 31, 2012. Other provisions accounts are eligible for Wisconsin tor’s contact information. It also requires are applicable on April 22, 2012, and Insurance Security Fund (fund) the SBRRB to evaluate the impact of any January 1, 2013. protection. It also provides a definition of proposed rules or emergency rules on “disability insurance” as comprehensive small business. The SBRRB can suggest 2011 Wisconsin Act 209 – Veterans health insurance and major medical changes or withdrawal of proposed rules license fee waivers. The Act requires health insurance. The Act clarifies that the or emergency rules. the Commissioner to grant a one-time maximum obligation applies regardless The provisions of Act 46 first apply to fee waiver to eligible veterans for the of the number of policies or contracts administrative rules submitted to the leg- issuance of an initial covered license. and sets the maximum aggregate liability of the fund for a single risk, loss, or life islature, or to emergency rules submitted Act 209 is effective for all qualifying after November 15, 2011. with respect to benefits for property license applications beginning on July 1, insurance, liability insurance, and 2012. 2011 Wisconsin Act 49 – Imputed disability insurance at $500,000, while Income. This Act excludes from state the maximum for other insurance policy 2011 Wisconsin Act 218 – Coverage of or contract types remains at $300,000. taxable income any amounts paid by an abortions in health plans sold through employer to provide medical care for the exchanges. Prohibits any qualified health Act 224 became effective April 20, 2012. employee’s adult child. plan sold through a health insurance The provisions of Act 49 apply to taxable exchange from providing coverage for 2011 Wisconsin Act 225 – Portable years beginning on January 1, 2011. abortions. electronics insurance. The Act clarifies licensing, training, termination of 2011 Wisconsin Act 120 – Applying mili- Act 218 became effective on April 20, insurance, changes to the policy, tary training to licensing requirements. 2012. compensation and disclosure standards The Act requires the Commissioner applicable to portable electronics to include any relevant instruction in 2011 Wisconsin Act 224 – Various insurance. connection with military service toward changes to insurance statutes. The Act Act 225 became effective April 20, 2012. satisfying any prelicensing education implements statutory changes needed requirements for licensure. An applicant to comply with the Nonadmitted and 2011 Wisconsin Act 226 – Regulating must satisfy the Commissioner that the Reinsurance Reform Act (NRRA), which certain service contracts. The Act allows instruction is substantially equivalent to modifies how states would regulate new and existing service contract plans the prelicensing education required for surplus lines business. to choose to be licensed under the new licensure. statute or under the existing statute. It Continued on page 5 Office of the Commissioner of Insurance - 5 - Issue 1 - Summer 2012 Continued from page 4 Name or Address Changes also includes standards for licensing Agents and firms must notify the or by e-mail at ociagentlicensing@ of service contract providers and any Commissioner of Insurance in writing, wisconsin.gov. Agents/firms must administrators appointed by providers. within 30 days, of any change in the include name, license number, new Standards also include financial name, residence address, mailing address, address, and effective date. Telephone disclosure requirements, service contract and business address. Agents should use requests are not accepted. form filing with the Commissioner, the following options to notify OCI: required contract disclosures, prohibited Agents whose residential address acts and other record-keeping • Log on to www.sircon.com/wisconsin change involves a change from one requirements. and select “Update your Name or state to another state are reminded that, Act 226 became effective April 20, 2012. Address.” This option also allows in addition to the address change, they agents to add or maintain e-mail also must provide OCI with either a addresses; letter of certification or a copy of their • Notify the Agent Licensing Section in new resident license from their new Application Procedures writing at P.O. Box 7872, Madison, WI state of residence. This should be sent 53707-7872, by fax at (608) 267-9451, to OCI within 60 days of the change of Following License residence. Cancellation Agents who have had their license Advertising Requirements for Agents that Market revoked for failure to pay the renewal fee or failure to comply with continuing Medicare Supplement Policies education requirements must reapply in Agents are reminded that they need The Medicare Supplement Advertising order to have their license reinstated. to file a copy of any advertisement Transmittal Form (OCI 26-042) and they plan to use in connection with instructions for filing advertisements is Residents who held a major-line or the sale of Medicare supplement available on the OCI Web site at limited-line license have one year from insurance in Wisconsin prior to using oci.wi.gov/company/forms-policy. their expiration date to reapply without the advertisement. This includes lead htm. The OCI Web site also includes having to complete any prelicensing generating materials such as reply cards a Medicare Supplement Advertisement education or examinations. Agents created by the agent or a vendor and checklist. must complete continuing education used to obtain agent leads for Medicare requirements and the credits must be supplement sales. banked electronically with our office before the agent can reapply. Medicare Information Now Available in Sign Language Resident and nonresident agents may reapply online on Sircon at www.sircon. The Centers for Medicare & Medicaid Care Act, and help paying Medicare com/wisconsin or on NIPR at www.nipr. Services (CMS) has released an costs. com. educational video in American Sign Language (ASL) to provide important The video will be available on Medicare. Resident agents who wish to reapply information about the Medicare program gov, cms.gov and the CMS YouTube for a major-line license after one year to people who are Deaf or hard of channel. are required to complete all of the hearing. prelicensing education for each line To access go to http://www.youtube.com/ previously held and take the law portion The video consists of an overview of watch?v=eskZVAg7v0o. of each examination. Residents holding the Medicare program, including what a limited line license would need to take Medicare is, who qualifies, the four To download, go to http://downloads. the entire examination. parts of Medicare (A, B, C, and D), new cms.gov/media/video/ASLOverview. preventive services under the Affordable mp4. Agents can view lists of approved providers and approved prelicensing courses on Sircon’s Web site at www. Miss an issue of the WIN? sircon.com. Select “Look Up Education Courses/Credit” and follow the prompts. No problem. We have old issues of Wisconsin Insurance News dating back to 2002 on our Web site: For questions, please contact Agent Licensing at (608) 266-8699. http://oci.wi.gov/ins_rev.htm Office of the Commissioner of Insurance - 6 - Issue 1 - Summer 2012 2012 Milestones Long-Term Care Insurance Training Requirements OCI Financial Examiner David Jensen earned the Certified Financial Examiner designation Resident agents who sell long-term the 24-month period June 1, 2010, to from the Society of Financial Examiners. care insurance (LTC) are required to May 31, 2012. If the agent does not Stephen Elmer has met the requirements to be complete 8 hours of initial LTC training complete the ongoing training by May designated an Accredited Financial Examiner prior to soliciting, negotiating or selling 31, 2012, the agent may not sell LTC by the Society of Financial Examiners. LTC insurance. Resident agents are insurance in Wisconsin after May 31, Legal Counsel Fred Nepple has retired from also required to complete 4 hours of 2012. state service. ongoing training every 24 months after completing the initial training. Insurance companies that market LTC Financial Examiner Russell Lamb retired in January 2012 to become an advisor in Nonresident agents who have completed in Wisconsin are required to maintain Kosovo. another state’s LTC training requirements verification that their appointed agents are required to complete an initial 2 hours received the LTC training. Insurance examiner Janelle Dvorak earned the of Wisconsin-specific LTC training Accredited Insurance Examiner Designation from the Insurance Regulatory Examiners prior to selling LTC in Wisconsin. A list of LTC courses approved for Society. Nonresident agents are also required to continuing education (CE) credit in complete 1 hour of Wisconsin-specific Wisconsin is available electronically on Market Regulation Bureau Deputy Director ongoing training every 24 months after Sircon. Agents can also look up their CE Jo LeDuc received the 2012 Paul DeAngelo Teaching Award at the IRES Foundation completing the initial Wisconsin LTC credit status on Sircon at www.sircon. National School on Market Regulation. training. The LTC training requirements com/wisconsin. apply to agents selling life or annuity Advanced Financial Examiner Tim Vande Hey was appointed to lead the Minnesota Depart- products with LTC riders. Questions regarding CE courses and ment of Commerce Insurance Division as credits can be directed to Pearson VUE at Assistant Commissioner. The initial training and the 4 credit hours www.pearsonvue.com/contact/ce/ or by or 1 credit hour of ongoing training calling 1-800-274-4679. that are required every 24 months run concurrent with an agent’s license A Frequently Asked Questions, Long- Updated Publications renewal cycle. For example: An agent Term Care Insurance regarding agent who completed LTC initial training in training requirements and with links to OCI has recently updated January 2010 and whose license renewal other LTC information is available on several publications. Choose the cycle is June 1, 2010, to May 31, 2012, OCI’s Web site at oci.wi.gov/agentlic/ “Publications” link in the top must complete ongoing training in faq_ltc.htm. navigation on our home page, oci.wi.gov, then “Consumer Publications” to view, print or request Annuity Training Requirements a copy. Agents selling annuities are reminded agent’s continuing education credits Fact Sheet on the Independent Review that changes to s. 628.347, Wis. Stat., requirement. Process in Wisconsin (PI-203) pertaining to the suitability of annuities (Updated April 2012) require licensed life insurance agents A list of annuity training courses ap- Group Health Insurance Index who sell annuities to complete a one- proved for continuing education (CE) (Updated April 2012) time, four-credit general annuity training credit is available on Sircon’s Web site at Health Insurance for Small Employers course approved by OCI. The training is www.sircon.com by selecting “Look Up and Their Employees (2012) (PI- required of both resident and nonresident Education Courses/Credit” and follow the 206) (Updated March 2012) agents. Agents who complete an annuity prompts. Medicare Advantage in Wisconsin training course approved in another state (PI-099) (Updated March 2012) that is substantially similar to Wisconsin’s Questions regarding CE courses and Medicare Part D - Things to Know requirements can satisfy this annuity credits can be directed to Pearson VUE at Before Signing Up (PI-222) training requirement. Completion of a www.pearsonvue.com/contact/ce/ or by (Updated March 2012) Wisconsin-approved annuity training calling 1-800-274-4679. Medicare Supplement Insurance course can also count towards a resident Approved Policies (PI-010) (Updated March 2012) Wisconsin Guide to Health Insurance OCI in Your E-mail for People with Medicare (PI-002) (Updated March 2012) OCI’s subscription service will send you an e-mail every time OCI issues a new Other Sources of Help (Updated bulletin, press release, or an issue of the Wisconsin Insurance News. Please visit September 2011) oci.wi.gov/listserv.htm to sign up. Office of the Commissioner of Insurance - 7 - Issue 1 - Summer 2012 Adequate Flood Insurance Coverage Takes Community Effort by Gary Heinrichs, Floodplain Most flood events never receive a federal • Most federal disaster aid is loans that Planning Program Manager, Wisconsin disaster declaration. No declaration, no have to be paid back with interest. Department of Natural Resources disaster assistance. No disaster assistance, Grant money is typically reserved for no grants, loans, buyouts, temporary low-income citizens and the maximum Since it’s been less than two years since housing, no federal assistance period. grant amount will never cover the the Milwaukee area was devastated by Even if there is a declaration, most folks costs to repair a significantly damaged record flooding and much of West Central only qualify for small grants for unmet home. Well less than half of all flood Wisconsin experienced extreme rainfalls needs and loans. While the interest rate disasters get a presidential disaster and flood flows, it’s an opportune time is generally lower, it is still a loan and declaration. to consider the advantages of flood it imposes further financial hardship on insurance and examine what industry people who are struggling to recover. These reasons point to the benefits professionals and local officials can do to to communities to get more people promote awareness of flood risk and how The simple truth is that people with covered. There are ways they can do this, flood insurance can lessen the burden adequate flood insurance rebuild and including: for those folks who have suffered from recover faster and return to normal faster flooding. than people without. People without the • Telling people of the advantages of needed financial resources may not be flood insurance in newsletter articles, When reviewing the history of flooding able to make full repairs to their home public service announcements, and and flood recovery in this country, two and may move back into an unsafe or other outreach projects; important conclusions stand out from the unsanitary structure. Neighborhoods • Helping insurance agents with map rest: deteriorate over time if homes are not interpretation; brought up to standard, resulting in social • Providing insurance agents and • Flooding doesn’t just happen in problems and reductions in the tax base. residents with Elevation Certificates floodplains. that are kept with building permit files; • Disaster assistance will never make Businesses with the proper coverage can • Advising permit applicants for you whole after a flood. repair, reopen, and put their employees projects in the floodplain about the back to work faster, generating much- advantages of flood insurance; and We know a lot more about flooding than needed revenue and providing a sense of • Buying flood insurance for we did when the NFIP program was first “normalcy” in the heart of the community community-owned buildings to set authorized in 1968. One of the most which can be difficult to restore after a a good example and to be prepared revealing statistics is that FEMA has devastating flood. for the next flood, when disaster not mapped all floodplains and probably assistance will be reduced by the never will. Yet these unmapped areas The cost of flood insurance, while sharing amount of insurance the community continue to flood, the residents struggle similarities with other insurance products, should have. to recover and flood insurance continues is dependent on some unique factors, to be an afterthought for many of those including elevation of the building in For communities the lesson is clear: who would benefit the most from it. relation to the base flood elevation, preparing for flooding and pursuing building design, basement or crawl space flood mitigation strategies are important; For every four structures damaged features, and number of floors. While however, it is equally critical to prepare by a flood, one or more are outside local officials may not consider it their for the financial burdens which will be the mapped floodplain. It is the responsibility to promote the sale of flood placed on the community and its residents responsibility of community officials insurance, there are some compelling and businesses when the next flood to inform these folks of their flood risk, reasons to get involved: occurs. Don’t count on federal disaster provide information on simple steps assistance to make your community they can take to mitigate the flood risk • More flood insurance coverage is whole again. Self-reliant communities and make sure that residents, insurance good for the community. Reliance know that flood insurance is the only agents, lenders and real estate agents on scarce local or state resources or guaranteed vehicle to assure a smooth are aware that low-cost flood insurance unpredictable federal assistance is and complete recovery for everyone is available in these areas and can be too risky. Businesses and residents affected. purchased from the same agent who need the certainty that flood insurance insures their home and car. provides. Remember, legitimate claims for a covered event will be paid – no exceptions. Office of the Commissioner of Insurance - 8 - Issue 1 - Summer 2012

Governor: Scott Walker

Insurance Commissioner: Ted Nickel

WIN Editor: Jim Guidry

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oci.wi.gov 800-236-8517