Flood Insurance Overview FINAL EXAM (CT 109889)

Under the Community Rating System, a 10th class community would have which of the following?

3. A low premium discount (or no premium discount), and very little flood protection

What was the NFIP's intended purpose?

3. To hold floodplain owners at least partially responsible for any flood damage caused to their property

According to the NFIP, who should have flood insurance?

3. Everyone should have flood insurance

How can a property owner get an elevation certificate for their property?

1. By hiring a surveyor, architect, or engineer to survey the property or by relying on an older survey

Why did the private insurance industry give up on providing flood insurance in the 1920s?

1. Floodplain properties were practically guaranteed to sustain flood damage causing premiums to be unreasonably high.

In order for a building to have a basement, it must have which of the following?

3. A floor that is below ground level on all sides

Choosing a lower deductible usually results in the policyholder having which of the following?

A higher premium

A Standard Flood Insurance Policy (SFIP) will help cover the costs of which of the following activates?

3. The SFIP helps cover the costs of all the activities provided

What is the goal of the Coastal Barriers Resources Act (COBRA)?

3. To halt any Federal program that encourages coastal development in COBRA Zones in any way whatsoever

What is the purpose of the acknowledgement form required by the Flood Insurance Reform Act of 2004?

3. To legally indicate which materials were supplied during the sales process

Why is the Increased Cost of Compliance Coverage a good investment for the NFIP?

1. It permanently fixes buildings that get repeatedly damaged by floods.

Which elements of a Post-FIRM basement are covered by flood insurance?

4. Structural elements and essential equipment

Which system was put into place in order to incentivize behavior that reduces the severity or likelihood of flood damage?

Community rating

A CRS activity that represents a "Flood Preparedness" activity credit could include which of the following?

1. Creating a flood warning system and other emergency procedures

If a property is located in a Special Flood Hazard Area (SFHA), what must a lender require the property owner have before they make, extend, increase, or renew a loan on that property?

1. Flood insurance with a coverage value equal to or greater than the value of the loan

If a property owner hears a flood is going to happen in the next week, do they have enough time to get flood insurance?

1. No, there is a default 30-day waiting period for new NFIP applications.

The flood insurance appeals process can do which of the following?

1. Resolve disagreements about the resolution of a claim

Under the Community Rating System, a 1st class community would have which of the following?

2. A high premium discount and the most flood protection

Which of the following is potentially useful information for agents and policyholders found on a FIRM?

3. All of the answers provided are examples of important information found on a FIRM

Which of the following is a good step for a policyholder to take after a flood?

3. Answer the adjuster's questions as quickly and accurately as possible

What is the primary difference between a mudslide and a mudflow?

3. Damage from a mudslide is caused by falling rocks and debris while damage from a mudflow is caused by liquid

Which maps were drafted quickly in the 70s and 80s as a way to provide a rough estimation about which properties probably need flood insurance and which properties have a relatively small chance of flooding?

3. Flood Hazard Boundary Maps (FHBM)

The cost to replace all or part of a building that is damaged (without depreciation) is known as what kind of value assessment?

3. Replacement Cash Value (RCV)

A CRS activity that represents a "Mapping and Regulations" activity credit could include which of the following?

3. Slowing a community's development in order to reduce flood risks

If damage occurs before the effective date on the initial Flood Insurance Rate Map, what program can help cover that damage?

3. The Emergency Flood Insurance Program