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Under the flood regulations banks must accept private flood insurance policies, and can accept a private flood insurance policy that contains the compliance aid assurance clause without further review. Must the compliance aid statement be identical to the one provided?

Under the flood regulations banks must accept private flood insurance policies, and are allowed to accept a private flood insurance policy that contains the compliance aid assurance clause without further review. Must the compliance aid statement be identical to the one provided or may it be slightly different (such as an added “§” before “42 U.S.C.”)?

The compliance aid statement must be identical according to the interagency exam procedures, which reads:

If the institution accepted a private flood insurance policy in accordance with the mandatory acceptance requirements, verify that the policy either: (a) contains the compliance aid assurance clause exactly as follows: “This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation”; or (b) that the policy meets the definition of “private flood insurance” as set forth in the regulation. (June 2019)

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