Basic Agent Tutorial

The maximum coverage limit for a 1-4 family dwelling in the regular program is: A. $35,000 B. $100,000 C. $250,000 D. $500,000

C

Characteristics of an SFHA

100 year flood plain with 1% annual chance of flood at least a 26% chance of flooding over a 30 year mortgage High-risk zones are designated as either A or V zones Federally regulated & insured lenders must require flood insurance

Generally, the elevation difference is the difference between the lowest floor used for rating an the: A. Base Flood Elevation (BFE) B. Special Flood Hazard Area (SFHA) C. Highest Adjacent Grade (HAG) D. Lowest Adjacent Grade (LAG)

A

How close to grade does the bottom of the flood vent need to be located to be a proper opening? A. 1 foot or less B. 2 feet or less C. 3 feet or less D. 4 feet or less

A

What is the initial phase of a community's participation in the NFIP called? A. Emergency Program B. Continuation Program C. Primary Program D. Regular Program

A

PRP - Preferred Risk Policy

Building must be in a Non-SFHA. It is a rating option only, not a policy form. Must meet certain loss eligibility requirements that apply to any 10 year period regardless of change of ownership. Can be written on a Dwelling or General Property form but NOT a RCBAP.

A Preferred Risk Policy A. Is available to policy holders who have had insurance for at least 5 years B. Is a low-cost rating option C. Is available in low-and-moderate-risk flood zones regardless of loss history D. All of the above

B

The NFIP Servicing Agent is also referred to as the: A. NFIP Select B. NFIP Direct C. NFIP Complete D. NFIP Target

B

The Preferred Risk Policy (PRP) offers coverage to owners & tenants of eligible buildings located in: A. Emergency Program communities only B. A99, AR, B, C, & X zones C. V & A zones only D. Non participating communities only

B

The Special Loss Settlement is reserved for A. Misrepresentation of damaged items B. Manufactured homes or travel trailers C. Losses that do not meet the NFIP definition D. Litigation claims

B

The Standard Flood policy covers which of the following: A. Swimming Pools B. A hot tub within a bathroom C. Additional Living Expenses D. Business interruption

B

Where can current and historic FIRMS be found: A. The FloodSmart Website B. FEMA's Flood Map Service Center C. The Community Status Book D. The NFIP Flood Insurance Manual

B

Which statement is true when insuring personal property: A. Personal Property is insurable outside the building's walls B. A built-in microwave is not considered a personal property item C. Currency is covered as a personal property item D. Personal property includes items such as blinds & awnings

B

Which of the following is a responsibility of an NFIP community? A. Provide Elevation Certs free of charge B. Identify Coastal Barrier Resource System (CBRS) areas and Otherwise Protected Areas (OPAs) C. Adopt and enforce flood plain management regulations D. Provide a listing of all insurance professionals who sell flood insurance in the area.

C

Which of the following is not one of the Standard Flood Insurance policy's 3 coverage forms? A. The General Property Form B. The Residential Condominium Building Association Polcy C. The Commerical Building Form D. The Dwelling form

C

Which of these is a benefit for a community participating in the Community Rating System (CRS)? A. Floodplain variances can be granted by the mayor of the community B. Flood maps are revised every 3 years C. NFIP policyholders receive discounts on their flood insurance policies D. Elevation Certificates are not required to rate policies

C

Which characteristic of a building would make it eligible for flood insurance A. Affixed to a temporary site B. Has less than 2500 sq ft C. A fully secured roof D. One or more outside rigid walls

C. Must be affixed to a permanent site, resist flotation, collapse or movement. Be principally above ground level.

Pre-FIRM buildings that do not meet the primary residence definition (non-primary residences)will be subject to a ____annual premium increase. A. 1 B. 15 C. 18 D. 25

D

The __________ is calculated as a percentage of the total premium. A. Federal Policy Fee B. Submit For Rate fee C. Expense Constant D. Reserve Fund Assessment

D

What important flood-insurance-related information is shown on a FIRM? A. Location of state insured buildings. B. Addresses of previously flood damaged buildings C. Completed Elevation Certificates D. Flood Zone

D

What is the standard waiting period for a flood insurance policy to be effective? A. 1 day B. 5 days C. 15 days D. 30 days

D

Coverage is extended to detached garages on all three Standard Flood Insurance Policy Forms. True False

False

Property owners in a nan-participating community can purchase NFIP flood insurance. True False

False

Replacement Cost Value loss settlement is guaranteed as part of the Standard Flood Insurance Policy. True False

False

When selecting the $10,000 residential deductible option, the same deductible must apply to both dwelling & contents. True False

False

What does FIRM stand for?

Flood Insurance Rate Map

Exceptions to 30 day waiting period:

Loan transaction or closing. 1 day waiting period for Map Revision-map change from Non-SFHA ot an SFHA within 13 months of a new map the waiting period is reduced to 1 day.

How to determine if a community participates in the NFIP

Look in the Community Status Book

Characteristics of a Non-SFHA

Represented on flood maps by zone B, C & X Moderate to low risk areas No federal statute requiring purchase of flood insurance

RCBAP - Residential Condominium Building Association Policy 3 characteristics

Owned & administered as a condo Contains one or more units 75% of the floor area is residential

A basement is defined as any area of the building including any sunken room or sunken portion of a room having its floor below grand level (subgrade) on all sides. True False

True

A policy written with both building & contents coverage, in the event of a covered loss, the deductible applies separately to the building & contents. True False

True

An elevated building has no basement and has its lowest elevated floor raised above the ground by foundation walls, shear walls, posts, piers, pilings, or columns. True False

True

The NFIP's mission is to reduce the consequences of flooding my making flood insurance available to property owners & encouraging communities to establish floodplain management programs including ordinances. True False

True