What does the WYO Program enable private insurers to do?

The WYO (Write Your Own) Program allows private insurers to underwrite policies based on federal government guidelines while participating in the National Flood Insurance Program (NFIP). This arrangement enables qualified private insurance companies to write and administer flood insurance policies, providing greater flexibility and availability of flood insurance in the market. It allows them to offer coverage that complies with federal standards and pricing guidelines, ensuring that policies meet the requirements set forth by the NFIP.

In the context of the other options, selling unregulated flood insurance would not align with the regulation and oversight principles established by the NFIP. Increasing government intervention in insurance sales does not describe the purpose of the WYO Program, which is aimed at fostering private sector involvement in a regulated manner. Additionally, the stipulation regarding negotiating claim amounts freely contradicts the standardized process for claims within the NFIP, which has specific guidelines and provisions that must be followed. The WYO Program facilitates a structured approach rather than allowing for unregulated negotiations.