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National Flood Insurance Program October 1, 2012, Rate and Rule Changes: A Summary

Premium Increases Premiums will increase an average of 5% for policies written or renewed Gl1 or after October 1, 2012.The average premium change by zone varies as described below, The premium for a particular policy may change more or less than the average change, See Attachment B for updated rate tables. V Zones (coastal high-velocity zones) Rate increases are being implemented again this year as a result of the Heinz Center's Erosion Zone Study, which clearly indicates that current rates significantly underestimate the increasing hazard from steadily eroding coastlines. o Post-FIRM V Zones: Premiums will increase 6%. o Pre-FIRM V Zones: Premiums will increase 10%. A Zones (non-velocity zones, which are primarily riverline zones) o Post-FIRM AI-A30 and AE Zones: Premiums will increase 2%, o Pre-FIRM AE Zones: Premiums will increase 9% to decrease the amount of subsidy in the Pre-FIRM rates. o AO, AH, AOB, and AHB Zones (shallow flooding zones): Premiums will increase 1%. o Unnumbered A Zones (remote A Zones where elevations have not been determined): Premiums will increase 2%. o A99 Zones (approved flood mitigation projects, e,g., levees still in the course of construction) and AR Zones: Premiums will increase 5%. X Zones (zones outside the Special Flood Hazard Area) o Standard Risk Policy: Premiums will increase 5%. o Preferred Risk Policy (PRP): Premiums will increase 3%. Mortgage Portfolio Protection Program (MPPP): Premiums will increase 10%. Other: Other than updates to Provisional Rates, there are no additional changes ( to Tentative Rates, Increased Cost of Compliance [lCC] premiums, Federal Policy Fee, deductibles, etc.) that would affect the premium for an individual policy.

Effective Date Rule Change A change will be made to the effective date rule for new policies issued in connection with a lender requirement (mortgage portfolio review). For new policies issued in response to a lender requirement, the borrower must purchase coverage within 60 days of the date of the lender's letter requiring the borrower to obtain flood insurance in order to avoid the 30-day waiting period.

New Application Requirements for the Mortgage Portfolio Protection Program (MPPP) Effective October 1, 2012, WYO Companies writing business through the MPPP will be required to obtain two additional data elements. The underwriting application must now include the following questions: 1. Is building walled and roofed? YES NO 2. Is building over water? NO PARTIALLY New Signature Requirement for the Cancellation Form Effective October 1, 2012, WYO Companies and the NFIP Servicing Agent will be required to obtain the signatures of all named insured on the cancellation form when canceling a policy. New Edits for Cancellation Effective Dates Effective October 1, 2012, the TRRP Plan will establish new edits for the cancellation effective date to ensure that the cancellation date is not earlier than the NFIP Flood Insurance Manual rules allow. New Edits for the Date of Construction After an ICC Claim is Closed New edits will validate that the construction date is later than the date of loss on a policy with a closed ICC claim. New Obstruction Type for Lattice, Slats, or Shutters (Including Louvers) Enclosing an Elevator in V Zones Effective October 1, 2012, the TRRP Plan will establish a new code for elevated buildings in V Zones that have: Lattice, slats, or shutters (including louvers) enclosing an elevator below the Base Flood Elevation (BFE); No machinery and equipment (M&E) servicing the building located below the BFE; and No other obstruction below the BFE.

ENTIRELY

The building will be rated free of obstruction, with the V Zone elevator loading added to the building basic limit. The Community Rating System (CRS) discount will be allowed.