Producers have no binding authority under the NFIP. No oral binder is effective, and a written binder needs the express authorization of the Federal Insurance Administrator. In NFIP matters the agent acts for the policyholder, not for FEMA or the Write Your Own (WYO) insurance company.

So what can the agent do for a client who wants flood coverage today? Send in the application and premium and explain the waiting period. Unless an exception applies, new coverage takes effect at 12:01 a.m. on the 30th calendar day after the application date and presentment of premium.

California adds a training rule. The CDI outline says a producer must complete the required pre-licensing or continuing education before submitting the first NFIP application. CDI states that a licensee who markets flood insurance must complete a three-hour, FEMA-approved flood course, one time during the life of the license. No separate federal license, bond or insurer employment is required.