The National Flood Insurance Program is not Insurance but is a Government Entity
Post 5235
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A Suit Against the NFPA Must be Filed in Federal Court
In Brian Bevel v. Federal Emergency Management Agency (FEMA) , United States District Court, Middle District of Florida, 8:25-cv-02159-JLB-CPT (November 21, 2025)Judge: John L. Badalamenti resolved the dispute over insurance coverage..
Key Facts
Parties and Claim:
Plaintiff Brian Bevel sued FEMA for breach of an insurance contract under the National Flood Insurance Program (NFIP). The policy insured Bevel’s property in Longboat Key, Florida, against flood damage.
Incident: The property sustained damage on September 26, 2024. Bevel notified FEMA, which investigated but allegedly failed to adjust the loss per policy terms, constituting a material breach.
Procedural History:
Bevel filed the breach-of-contract suit in Florida state circuit court on May 6, 2025, seeking damages exceeding $50,000. FEMA removed the case to federal court on grounds of federal officer removal under 28 U.S.C. § 1442(a)(1).
FEMA moved to dismiss under Fed. R. Civ. P. 12(b)(1) for lack of subject-matter jurisdiction, citing derivative jurisdiction and sovereign immunity. Bevel failed to timely respond; the court ordered a response (Doc. 20), which was filed late (Doc. 21) but accepted in the court’s discretion.
Bevel’s Response Arguments (Rejected):
FEMA, as the removing party, should not seek dismissal. Independent jurisdiction exists under 42 U.S.C. §§ 4071–4072 (NFIP claims) or 28 U.S.C. § 1332 (diversity). Dismissal would waste resources, as Bevel could refile in federal court.
Relevant Law and Analysis
The court’s decision hinges on federal courts’ limited jurisdiction and the requirement to resolve jurisdictional issues first. The motion was treated as a factual attack under Rule 12(b)(1), allowing consideration of matters outside the pleadings. Burden to establish jurisdiction rests with the plaintiff. Dismissals for lack of jurisdiction are without prejudice.
Core Doctrines Applied
Federal jurisdiction over a removed case derives from the state court’s initial jurisdiction. If the state court lacked subject-matter jurisdiction, the federal court acquires none upon removal, even if it would have had original jurisdiction.
Florida state court lacked jurisdiction over Bevel’s NFIP breach claim, as 42 U.S.C. § 4072 vests “original exclusive jurisdiction” in the federal district court where the property is located. Bevel’s policy was issued under § 4071 (NFIP claims).
Statutory Framework
42 U.S.C. § 4071:
Authorizes issuance of Standard Flood Insurance Policies (SFIPs) by FEMA (or Write Your Own program insurers).
42 U.S.C. § 4072:
Grants federal district courts “original exclusive jurisdiction” over suits by policyholders against FEMA for disallowed claims or breach. Venue is proper in the district where the insured property is located.
28 U.S.C. § 1442(a)(1):
Allows removal by federal officers/agents acting under federal law (FEMA qualified). However, derivative jurisdiction still applies.
28 U.S.C. § 1332:
Diversity jurisdiction argued by Bevel but irrelevant due to derivative doctrine; NFIP claims are statutorily exclusive to federal question jurisdiction.
Plaintiff’s Arguments and Rebuttals
FEMA’s Removal as Estoppel:
Rejected; FEMA can seek dismissal in federal court even after removal, as it could have in state court based on § 4072.
Efficiency/Waste:
Dismissal without prejudice allows refiling in proper federal court; plaintiff “filed in the wrong court” and must comply with § 4072.
Implications
This order underscores the strict enforcement of exclusive federal jurisdiction for NFIP claims, preventing “forum shopping” via state filings followed by removal.
Plaintiffs must file directly in federal court to avoid derivative jurisdiction pitfalls. Sovereign immunity further insulates FEMA from state-court suits.
Bevel retains the right to refile in the U.S. District Court for the Middle District of Florida.
Outcome
FEMA’s Motion to Dismiss was granted; Plaintiff’s Complaint was dismissed without prejudice for lack of subject-matter jurisdiction and Plaintiff may refile in the proper federal court.
ZALMA OPINION
FEMA is not an insurance company. It is a federal government agency that provides to people in flood zones indemnity to those who pay for the protection. It is not insurance. By its creation as a federal agency suits against FEMA can only be brought in federal courts. The Plaintiff attempted to avoid federal court by filing in state court only to have FEMA remove the case to a federal court where it was dismissed for lack of jurisdiction.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Insured Must Give Prompt Notice of Loss
Post 5256
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Once The Insured Knows There is Damage It is Obligated to Report the Loss to the Insurer
In Greater St. Stephen Ministries, Inc. v. Mt. Hawley Insurance Company, No. 24-cv-3130 (AS), United States District Court, S.D. New York (January 2, 2026) resolved a case brought by a church against an insurance company for denying coverage after Hurricane Ida. After discovery, the insurance company moved for summary judgment because it claimed the insured breached a material condition of the policy.
BACKGROUND
Greater St. Stephen Ministries, Inc., a church located in Louisiana, owned property that suffered damage from Hurricane Ida on August 29, 2021. The property was insured under a policy with Mt. Hawley Insurance Company, which required the insured to provide “prompt notice” of any loss or damage, ...
Insured Must Give Prompt Notice of Loss
Post 5256
Read the full article at https://lnkd.in/gBXRbKXD, see the video at https://lnkd.in/g4DKfUDz and at https://lnkd.in/g65V_RQ7 and at https://zalma.com/blog plus more than 5250 posts.
Once The Insured Knows There is Damage It is Obligated to Report the Loss to the Insurer
In Greater St. Stephen Ministries, Inc. v. Mt. Hawley Insurance Company, No. 24-cv-3130 (AS), United States District Court, S.D. New York (January 2, 2026) resolved a case brought by a church against an insurance company for denying coverage after Hurricane Ida. After discovery, the insurance company moved for summary judgment because it claimed the insured breached a material condition of the policy.
BACKGROUND
Greater St. Stephen Ministries, Inc., a church located in Louisiana, owned property that suffered damage from Hurricane Ida on August 29, 2021. The property was insured under a policy with Mt. Hawley Insurance Company, which required the insured to provide “prompt notice” of any loss or damage, ...
New Trial Because Jury Used Policy That Provides No Coverage to Assess Damages
Post 5255
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In Brown & Brown of Florida, Inc. v. Houligan’s Pub & Club, Inc., and Ormond Wine Company, LLC, Nos. 5D2024-2352, 5D2024-2458, Florida Court of Appeals (January 2, 2026) the Court of Appeals was faced with a case of first impression that involved damages from a hurricane that hit the East Coast of Florida almost a decade ago and the extent to which an insurance broker is responsible for paying for such damages.
The jury entered a verdict in favor of the insurance broker on the insured’s claim that it was negligent in failing to procure insurance, but it found in favor of the insured on claims of breach of fiduciary duty and negligent misrepresentation.
The insurance broker does not contest it breached its duties on these two claims, only ...
Court Must Follow Judicial Precedent
Post 5252
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Insurance Policy Interpretation Requires Application of the Judicial Construction Doctrine
In Montrose Chemical Corporation Of California v. The Superior Court Of Los Angeles County, Canadian Universal Insurance Company, Inc., et al., B335073, Court of Appeal, 337 Cal.Rptr.3d 222 (9/30/2025) the Court of Appeal refused to allow extrinsic evidence to interpret the word “sudden” in qualified pollution exclusions (QPEs) as including gradual but unexpected pollution. The court held that, under controlling California appellate precedent, the term “sudden” in these standard-form exclusions unambiguously includes a temporal element (abruptness) and cannot reasonably be construed to mean ...
Lack of Jurisdiction Defeats Suit for Defamation
Post 5250
Posted on December 29, 2025 by Barry Zalma
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He Who Represents Himself in a Lawsuit has a Fool for a Client
In Pankaj Merchia v. United Healthcare Services, Inc., Civil Action No. 24-2700 (RC), United States District Court, District of Columbia (December 22, 2025)
FACTUAL BACKGROUND
Parties & Claims:
The plaintiff, Pankaj Merchia, is a physician, scientist, engineer, and entrepreneur, proceeding pro se. Merchia sued United Healthcare Services, Inc., a Minnesota-based medical insurance company, for defamation and related claims. The core allegation is that United Healthcare falsely accused Merchia of healthcare fraud, which led to his indictment and arrest in Massachusetts, causing reputational and business harm in the District of Columbia and nationwide.
Underlying Events:
The alleged defamation occurred when United ...
Zalma’s Insurance Fraud Letter
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ZIFL Volume 29, Issue 24
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Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/
Zalma’s Insurance Fraud Letter
Merry Christmas & Happy Hannukah
Read the following Articles from the December 15, 2025 issue:
Read the full 19 page issue of ZIFL at ...
