FLOOD INSURANCE STUDY GUIDE ANSWERS AND
QUESTIONS SET A+
✔✔TEST: The standard deductible for building losses for policies written under the
Regular Program is... - ✔✔1,000; The standard deductible for risks written under the
Regular Program is $1,000, both building and personal property coverages.
✔✔TEST: The premium for a risk written under the flood dwelling policy and rated under
the regular program might be adjusted to reflect all of the following EXCEPT... - ✔✔The
coinsurance penalty; The premium for a risk written under a dwelling policy in the
regular program will be adjusted to reflect the federal policy fee, the ICC Premium
(Increased Cost of Compliance), and any discount or surcharge for an optimal
deductible amount. Coinsurance penalties apply to an amount paid for a claim and are
not applicable to flood dwelling policies.
✔✔TEST: A condominium building insured under a RCBAP has a replacement cost of
$1 million and carries $700,000 of building coverage. A flood causes $500,000 damage
to the building. How much would the policy pay? - ✔✔$437,500; Insureds who want
building coverage under the RCBAP (Residential Condominium Building Association
Policy) written on a replacement cost basis must carry insurance equal to 80% of the full
replacement cost of the building at the time of loss, up to the maximum amount of
insurance available under the NFIP. If insured does not carry adequate coverage, the
amount will be reduced.
✔✔TEST: What is the purpose of a Letter of Map Revision? - ✔✔Amend a communities
flood insurance rate map to reflect changes to flood zones, elevations, and other map
features; A Letter of Map Revision (LOMR) is an official amendment to a current flood
insurance map that reflects changes to flood zones, delineations, and elevations. It is
requested by the communities chief executive officer and issued by FEMA.
✔✔TEST: Flood insurance for nursing homes, restaurants, and farm buildings is written
under which NFIP form? - ✔✔Standard Flood Insurance General Property Form;
Nursing homes, restaurants, and farm buildings are all examples of non-residential
risks, which are covered under the general policy form.
QUESTIONS SET A+
✔✔TEST: The standard deductible for building losses for policies written under the
Regular Program is... - ✔✔1,000; The standard deductible for risks written under the
Regular Program is $1,000, both building and personal property coverages.
✔✔TEST: The premium for a risk written under the flood dwelling policy and rated under
the regular program might be adjusted to reflect all of the following EXCEPT... - ✔✔The
coinsurance penalty; The premium for a risk written under a dwelling policy in the
regular program will be adjusted to reflect the federal policy fee, the ICC Premium
(Increased Cost of Compliance), and any discount or surcharge for an optimal
deductible amount. Coinsurance penalties apply to an amount paid for a claim and are
not applicable to flood dwelling policies.
✔✔TEST: A condominium building insured under a RCBAP has a replacement cost of
$1 million and carries $700,000 of building coverage. A flood causes $500,000 damage
to the building. How much would the policy pay? - ✔✔$437,500; Insureds who want
building coverage under the RCBAP (Residential Condominium Building Association
Policy) written on a replacement cost basis must carry insurance equal to 80% of the full
replacement cost of the building at the time of loss, up to the maximum amount of
insurance available under the NFIP. If insured does not carry adequate coverage, the
amount will be reduced.
✔✔TEST: What is the purpose of a Letter of Map Revision? - ✔✔Amend a communities
flood insurance rate map to reflect changes to flood zones, elevations, and other map
features; A Letter of Map Revision (LOMR) is an official amendment to a current flood
insurance map that reflects changes to flood zones, delineations, and elevations. It is
requested by the communities chief executive officer and issued by FEMA.
✔✔TEST: Flood insurance for nursing homes, restaurants, and farm buildings is written
under which NFIP form? - ✔✔Standard Flood Insurance General Property Form;
Nursing homes, restaurants, and farm buildings are all examples of non-residential
risks, which are covered under the general policy form.
