NFIA Does Not Preempt Policy-Procurement Claims, 6th Cir. Rules
August 29, 2016
DOCUMENTS
- Opinion
CINCINNATI — The National Flood Insurance Act (NFIA) does not preempt state law claims arising from an agent’s alleged failure to procure an adequate flood insurance policy because the Federal Treasury has no responsibility for any damages that might be awarded and federal interests are not at risk, a federal appellate court has ruled.
In an Aug. 8 opinion overturning a lower court ruling, the 6th Circuit U.S. Court of Appeals explained that damages stemming from policy-procurement claims, unlike those arising from policy-coverage claims, are not “flood policy claim payments.” As such, policy-procurement claims are not preempted, the court held.
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