Flood Re Regulations and Scheme Document republished

Practical Law UK Legal Update 4-617-0782 (Approx. 3 pages)

Flood Re Regulations and Scheme Document republished

by Practical Law Property

New draft regulations to establish Flood Re were laid before Parliament on 1 July 2015, along with a new edition of the scheme document issued by Flood Re itself (now dated 22 June 2015).

New draft regulations to establish Flood Re were laid before Parliament on 1 July 2015, along with a new edition of the Scheme Document issued by Flood Re itself (now dated 22 June 2015). These documents replace those issued in March but the differences are very minor. For more detail of the headline issues raised by these regulations, see Legal update, Flood Re regulations and scheme document published. The draft regulations require positive approval by both Houses of Parliament. If approved by Parliament, Flood Re will start operating on 1 April 2016, though it is likely to test its systems with insurers, behind the scenes, before that point.

Practical Law believe the only changes are as follows.

Main Flood Re Regulations:

Regulations 13 and 14 (and the relevant paragraph of the Explanatory Memorandum) have been changed to make it clear that adjustment of the payment made by insurers to Flood Re (under regulation 12) is required even if repayment to that insurer (under regulation 13) is not awarded by the Flood Re Scheme Administrator.
“House of Commons” at the end of regulation 24(4) has been changed to “Parliament”.
Paragraph margins have been tidied up.

Scheme Document:

The date on the front page has changed from 16 March to 22 June.
Surprisingly, there has been no change to reflect the rumoured maximum £250 excess. Representatives from Flood Re have mentioned this additional feature in their recent publicity materials and it would be consistent with the original plan for Flood Re, but there is nothing in the Scheme Document to confirm it.

Practical Law is checking with the Department for Environment, Food and Rural Affairs (Defra) that this is correct. If there are any other changes, Practical Law Property will publish a further announcement. Otherwise, the changes stated here can be taken as correct.

Sources: Draft Flood Reinsurance (Scheme Funding and Administration) Regulations 2015 and draft Flood Reinsurance (Scheme and Scheme Administrator Designation) Regulations 2015.

End of Document

Also Found In

Resource ID 4-617-0782

Published on 03-Jul-2015

Resource Type Legal update: archive

Jurisdictions

England
Wales