Chapter 24 RSM Exam | Questions with 100%
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Terms in this set (61)
Government property insurance Government property insurance programs exist
programs because some perils are so severe, unpredictable,
or widespread that private insurers either cannot
provide coverage at all or cannot provide it at an
affordable price. These programs step in when the
private market cannot adequately insure certain
risks.
Reason government insurance Some perils are difficult to insure privately because
programs are needed coverage may be unavailable or unaffordable. This
usually happens when the potential losses are
catastrophic, highly concentrated, or difficult for
insurers to predict and spread.
:contentReference[oaicite:1]{index=1}
National Flood Insurance Program The National Flood Insurance Program is a federal
(NFIP) program that provides flood insurance coverage to
property owners in flood-prone areas. It exists
because flood is a peril that has historically been
difficult for private insurers to insure on a broad,
affordable basis. :contentReference[oaicite:2]
{index=2}
, How flood insurance is sold under Flood insurance is purchased from agents or
the NFIP brokers who represent private insurers. Under the
write-your-own program, private insurers sell
federal flood insurance in their own names, collect
the premiums, and receive an expense allowance,
but the federal government remains responsible for
underwriting losses. :contentReference[oaicite:3]
{index=3}
Write-your-own program A system within the NFIP in which private insurers
sell federal flood insurance policies under their
own names, collect premiums, and are
compensated for expenses, while the federal
government bears the underwriting risk and losses.
:contentReference[oaicite:4]{index=4}
Who administers the NFIP The NFIP is administered by the Federal Emergency
Management Agency (FEMA), which oversees the
program's operation and federal role in providing
flood insurance. :contentReference[oaicite:5]
{index=5}
Underwriting losses in the NFIP Underwriting losses in the NFIP are borne by the
federal government rather than by the private
insurers that sell the policies under the write-your-
own arrangement. :contentReference[oaicite:6]
{index=6}
Goal of the NFIP The program was designed to be self-supporting
during an average historical loss year, meaning
premiums were intended to be sufficient to cover
expected losses in a typical year, though this goal
has been difficult to maintain in practice.
:contentReference[oaicite:7]{index=7}
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (61)
Government property insurance Government property insurance programs exist
programs because some perils are so severe, unpredictable,
or widespread that private insurers either cannot
provide coverage at all or cannot provide it at an
affordable price. These programs step in when the
private market cannot adequately insure certain
risks.
Reason government insurance Some perils are difficult to insure privately because
programs are needed coverage may be unavailable or unaffordable. This
usually happens when the potential losses are
catastrophic, highly concentrated, or difficult for
insurers to predict and spread.
:contentReference[oaicite:1]{index=1}
National Flood Insurance Program The National Flood Insurance Program is a federal
(NFIP) program that provides flood insurance coverage to
property owners in flood-prone areas. It exists
because flood is a peril that has historically been
difficult for private insurers to insure on a broad,
affordable basis. :contentReference[oaicite:2]
{index=2}
, How flood insurance is sold under Flood insurance is purchased from agents or
the NFIP brokers who represent private insurers. Under the
write-your-own program, private insurers sell
federal flood insurance in their own names, collect
the premiums, and receive an expense allowance,
but the federal government remains responsible for
underwriting losses. :contentReference[oaicite:3]
{index=3}
Write-your-own program A system within the NFIP in which private insurers
sell federal flood insurance policies under their
own names, collect premiums, and are
compensated for expenses, while the federal
government bears the underwriting risk and losses.
:contentReference[oaicite:4]{index=4}
Who administers the NFIP The NFIP is administered by the Federal Emergency
Management Agency (FEMA), which oversees the
program's operation and federal role in providing
flood insurance. :contentReference[oaicite:5]
{index=5}
Underwriting losses in the NFIP Underwriting losses in the NFIP are borne by the
federal government rather than by the private
insurers that sell the policies under the write-your-
own arrangement. :contentReference[oaicite:6]
{index=6}
Goal of the NFIP The program was designed to be self-supporting
during an average historical loss year, meaning
premiums were intended to be sufficient to cover
expected losses in a typical year, though this goal
has been difficult to maintain in practice.
:contentReference[oaicite:7]{index=7}
