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Petition to FEMA Regarding Detrimental Decision to Discontinue the Rebating of Agents’ Commissions
Petition Background (Preamble):
The Federal Government has instructed Write Your Own (WYO) flood carriers to stop allowing agents to rebate any portion of their commission. This prohibits the rebating of commissions on all new or renewal NFIP policies.
The Federal Insurance and Mitigation Administration concluded that the goals of the National Flood Insurance program are better served by a system of uniform national pricing that will ensure that policyholders pay the same price for the same risk.
WHEREAS, the Federal Government has instructed Write Your Own (WYO) flood carriers to stop allowing agents to rebate any portion of their commission, and
WHEREAS, this prohibits the rebating of commissions on all new or renewal NFIP policies, and
WHEREAS, the rebating of agents’ commission has helped struggling communities during these tough economic times by offering rebates on paid premiums for flood insurance equaling thousands of dollars, and
WHEREAS, these rebates come from the agents’ commissions and not from the actual cost of the policy and the amount of commission allowed is based on the agents’ agreement with the WYO Program and is not capped or uniform as is the cost of the actual policy, and
WHEREAS, the Federal Emergency Management Agency (FEMA) has made the unilateral decision to terminate the rebating of agents’ commissions effective October 1, 2012, which decision will adversely affect over 2,059,371 flood insurance policies in the state of Florida with just over $471 billion in flood coverage,
NOW THEREFORE BE IT RESOLVED, that we the Undersigned urge FEMA to rescind its decision and reinstate the rebating of agents’ commissions.
The Petition to FEMA Regarding Detrimental Decision to Discontinue the Rebating of Agents’ Commissions petition to Edward L. Connor, FEMA Deputy Administrator for Federal Insurance was written by Julie Fishman and is in the category Consumer Affairs at GoPetition. Contact author here. Petition tags: fema, agents\' commission. agents\' commission rebates