Requirement to purchase flood insurance where available.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (2) (3) (i) Provides coverage in the amount required by paragraph (a) of this section; (ii) Is issued by an insurer that is licensed, admitted, or otherwise approved to engage in the business of insurance by the insurance regulator of the State or jurisdiction in which the property to be insured is located; or in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is issued by a surplus lines insurer recognized, or not disapproved, by the insurance regulator of the State or jurisdiction where the property to be insured is located; (iii) Covers both the mortgagor(s) and the mortgagee(s) as loss payees, except in the case of a policy that is provided by a condominium association, cooperative, homeowners association, or other applicable group and for which the premium is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense; and (iv) Provides sufficient protection of the designated loan, consistent with general safety and soundness principles, and the credit union documents its conclusion regarding sufficiency of the protection of the loan in writing. (4) (i) The NCUA has determined that such plans qualify as flood insurance for purposes of the Act; (ii) The plan provides coverage in the amount required by paragraph (a) of this section; (iii) The plan covers both the mortgagor(s) and the mortgagee(s) as loss

official document · source cfr-2024 · id 12:§ 760.3