NFIP Flood Insurance Exam Questions With Correct Answers WYO Program - Answer "Write your own" insurers write the coverage on their own "paper" but the NFIP reinsures 100% of the coverage
Wait period for policy to become effective - Answer 30 days, this is done to avoid panic buying before disasters strike
Standard Flood Insurance Policy (SFIP) - Answer Defines coverage, limits , and exclusions for NFIP flood Insurance policies with terms and conditions unique to the NFIP
- NFIP insurers can ONLY use the SFIP
How to cancel a policy - Answer Policy holders insurance agent must submit cancellation to their respective underwriting office with applicable cancellation code
NFIP Direct Servicing Agency (DSA) - Answer FEMA program that assists in issuing for the NFIP - delivers policies and payment of claims for losses as prescribed at the discretion of FEMA - Underwrites all policies for: State Farm, Allstate, Gulf
Cancellation Code #1 - Answer Building sold, removed, destroyed, or physically altered and no longer meets the definition of an eligible building
Cancellation Code #2 - Answer Contents sold, removed, or destroyed
Reason Code #7 - Answer Property closing did not occur:
1. An insurer issues a policy and the anticipated transfer of the property does not take place. 2. The insured does not acquire an insurable interest in the property.
Reason Code #9 - Answer Insurance no longer required by lender because property is no longer located in an SFHA because of a map revision or LOMR
Becoming an agent with the NFIP process - Answer DSA --> Option #3
Preferred Risk Policy (PRP) - Answer lower-cost Standard Flood Insurance Policies available for most homeowners and renters living in moderate- and low-risk areas across the country. PRPs offer the same protection at a lower rate.
Grandfathering - Answer Grandfathering gives policyholders the option of having their premium rate determined using either the rating criteria for that property under the current effective FIRM (new map) or the BFE and/or flood zone on a prior FIRM
DSA options - Answer 1: Claims
2: General policy info 3: Agent Referral
Elevation Certificate - Answer used often for rating purposes, not required for LOMC's, but can help make a premium lower if BFE is below buildings elevation
Flood Insurance Ratings - Answer All insurance agents use the NFIP Flood Manual for reference when rating flood insurance policies
- Subsequently, rates are same regardless of insurance company/underwriting office
NFIP Rate tables - Answer Used by every agent or underwriting office when rating an NFIP policy
Standard Flood Insurance Policy - Answer NFIP insurers may only use the Standard Flood Insurance Policy
(SFIP) established by FEMA in federal regulation to sell NFIP flood insurance policies. The SFIP defines the
coverages, limitations, and exclusions for NFIP flood insurance policies and includes terms and conditions
that are unique to the NFIP . T
Flood Insurance Reform Act (FIRA) - Answer strengthened the NFIP with a number of reforms that
Wait period for policy to become effective - Answer 30 days, this is done to avoid panic buying before disasters strike
Standard Flood Insurance Policy (SFIP) - Answer Defines coverage, limits , and exclusions for NFIP flood Insurance policies with terms and conditions unique to the NFIP
- NFIP insurers can ONLY use the SFIP
How to cancel a policy - Answer Policy holders insurance agent must submit cancellation to their respective underwriting office with applicable cancellation code
NFIP Direct Servicing Agency (DSA) - Answer FEMA program that assists in issuing for the NFIP - delivers policies and payment of claims for losses as prescribed at the discretion of FEMA - Underwrites all policies for: State Farm, Allstate, Gulf
Cancellation Code #1 - Answer Building sold, removed, destroyed, or physically altered and no longer meets the definition of an eligible building
Cancellation Code #2 - Answer Contents sold, removed, or destroyed
Reason Code #7 - Answer Property closing did not occur:
1. An insurer issues a policy and the anticipated transfer of the property does not take place. 2. The insured does not acquire an insurable interest in the property.
Reason Code #9 - Answer Insurance no longer required by lender because property is no longer located in an SFHA because of a map revision or LOMR
Becoming an agent with the NFIP process - Answer DSA --> Option #3
Preferred Risk Policy (PRP) - Answer lower-cost Standard Flood Insurance Policies available for most homeowners and renters living in moderate- and low-risk areas across the country. PRPs offer the same protection at a lower rate.
Grandfathering - Answer Grandfathering gives policyholders the option of having their premium rate determined using either the rating criteria for that property under the current effective FIRM (new map) or the BFE and/or flood zone on a prior FIRM
DSA options - Answer 1: Claims
2: General policy info 3: Agent Referral
Elevation Certificate - Answer used often for rating purposes, not required for LOMC's, but can help make a premium lower if BFE is below buildings elevation
Flood Insurance Ratings - Answer All insurance agents use the NFIP Flood Manual for reference when rating flood insurance policies
- Subsequently, rates are same regardless of insurance company/underwriting office
NFIP Rate tables - Answer Used by every agent or underwriting office when rating an NFIP policy
Standard Flood Insurance Policy - Answer NFIP insurers may only use the Standard Flood Insurance Policy
(SFIP) established by FEMA in federal regulation to sell NFIP flood insurance policies. The SFIP defines the
coverages, limitations, and exclusions for NFIP flood insurance policies and includes terms and conditions
that are unique to the NFIP . T
Flood Insurance Reform Act (FIRA) - Answer strengthened the NFIP with a number of reforms that
