FEMA Memo on Limitations on Credit Card Collection
Transactions and Policy for Splitting Transactions
On August 5, FEMA issued a memo that clarifies and revises the Federal Government's
policy on the transaction dollar-value limit to collect funds using credit cards for
agencies using the Card Acquiring Service. Please see Treasury Financial Manual
for more information.
WYO Companies, as fiscal agents of the Federal Government, collect, retain and
distribute NFIP funds.
The overall framework of the policy follows:
The revised policy will be effective June 15, 2015;
Agencies must limit their credit card collections so that the individual
payment transaction does not exceed $24,999.99;
This limit was lowered from the previous payment transaction limit
The $24,999.99 limit applies whether the credit card transaction represents
a single payment or a bundled payment;
Debit card transactions remain unlimited due to lower associate fees;
Customers who owe an amount on a bill, debt, or obligation due to the
Federal Government are prohibited from splitting the total amount on a bill,
debt, or obligation due to the Federal Government are prohibited from
splitting the total amount due into multiple payments; and
Those multiple transactions that cause the total charge to exceed the maximum
dollar amount will be rejected by the acquiring processor.
NAIC Summer Meeting Begins This Week
The National Association of Insurance Commissioners (NAIC) summer
2014 National Meeting will take place in Louisville, Kentucky, from
Thursday, August 14 to Tuesday, August 19. Issues relevant to
independent agents are on the agenda, including:
The Auto Insurance Study Group
will discuss the Federal Insurance Office's (FIO's) ongoing review
of auto-insurance affordability issues.
The NAIC Crop Insurance Working Group will discuss
private crop insurance and federally subsidized index-based weather
The NAIC Producer Licensing Task Force will
consider adoption of its final recommendations on which additional
jurisdictions should be certified as meeting the heightened
licensing reciprocity standards of the Gramm-Leach-Bliley Act and
will discuss licensure requirements for selling contingent deferred
annuities. The NAIC Producer Licensing Working Group will discuss
suggested revisions to the State Licensing Handbook and state
implementation of the uniform licensing standards in adjuster
licensing and continuing education.
The NAIC Center for Insurance Policy and
Research will hold a panel discussion on the ambiguity around
insurance coverage provided through ride-sharing companies.
The Terrorism Insurance Working Group will
discuss the reauthorization of the Terrorism Risk Insurance Act
(TRIA) and potential revisions to policyholder disclosures.
Questions regarding the NAIC can be directed to Jennifer Webb,
PIA National counsel & director of regulatory affairs at
Ten-Year Anniversary of a Wave of Hurricanes
Ten years ago on August 13, 2004, the first of what would be a series
of destructive hurricanes hit the United States. The string of 2004
and 2005 storms, which included the devastating Hurricanes Katrina,
Wilma, Ivan, Rita, Frances and Jeanne, caused around $100 billion
worth of insured losses when adjusted to 2013 dollars, according to
the Insurance Information Institute (I.I.I.).
In 2005, two hurricanes hit the Gulf Coast of the United States in
rapid succession. First, Hurricane Katrina devastated New Orleans
and the southern portions of Louisiana and Mississippi. Then just
after all the water had been pumped out of New Orleans, another big
hurricane, Rita, devastated portions of southwest Louisiana and
eastern Texas. After the disaster, PIA members from around the
country came to the aid of their fellow members of the PIA Family.
Over 100 PIA members, from as far away as Maine and Montana,
volunteered to host agents whose homes had been destroyed.
Read Ted Besesparis' October, 2005 article in PIA Connection which
looked at the tragedy of Hurricanes Katrina and Rita, the heavy toll
on agents, and how PIA members helped their clients and their fellow
agents in a time of need:
Agents and the Hurricanes of 2005
NFIP Agent Flood Training Seminars for August and September
Each month the National Flood Insurance Program (NFIP) conducts web
training on a number of flood insurance topics important to agents.
Registration is now open for two webinars:
Basic Agent Webinar —
This course addresses basic flood
insurance issues as well as some more advanced components. At the
conclusion of both sessions, attendees with little or no prior NFIP
experience will understand how to build a flood insurance policy from
the ground up.
FEMA Mapping Changes —
The Federal Emergency Management
Agency (FEMA) Mapping Changes provides a practical look at how map
changes can affect your policyholders in their roles as insureds and
borrowers. Find out how to ease the transition to new flood maps. Learn
how mapping changes affect insurance rates, premiums and the mandatory
purchase of flood insurance.
These webinars are FREE to attend, but spaces are limited so please
register early. No continuing education (CE) credits are offered for
these courses in any state. Register here:
Let Us Know What You Think!
The webinars have been designed by
FEMA/NFIP, to assist agents in their understanding of all the NFIP
changes moving forward. They work together with the more detailed
information and instructions that you will receive from your WYO
insurers. We encourage PIA members to take advantage of these
opportunities — and let us know what you think of the content: