Flood Insurance & NFIP Flashcards
7 cards from real CFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Flood Insurance & NFIP flashcards as text
What federal legislation established the National Flood Insurance Program (NFIP)?
Answer: The National Flood Insurance Act of 1968
The NFIP was created by the National Flood Insurance Act of 1968, which authorized the federal government to make flood insurance available to communities that adopt and enforce floodplain management regulations.
Under the NFIP, what is the standard maximum building coverage limit for a single-family residential structure?
Answer: $250,000
The standard NFIP flood insurance policy provides a maximum of $250,000 in building coverage for residential structures.
Which federal agency administers the National Flood Insurance Program?
Answer: Federal Emergency Management Agency (FEMA)
FEMA administers the NFIP, which includes flood hazard mapping, floodplain management regulations, and the flood insurance program.
What is the waiting period before a new Standard Flood Insurance Policy (SFIP) goes into effect?
Answer: 30 days
There is generally a 30-day waiting period before a new NFIP policy takes effect, with limited exceptions such as when insurance is purchased in connection with a loan closing.
A community that fails to enforce NFIP floodplain management requirements may be placed on what status?
Answer: Probation or Suspension
Communities that fail to enforce NFIP requirements can be placed on probation (with a $50 surcharge on policies) or suspended from the NFIP entirely, which means federal flood insurance becomes unavailable to property owners.
What does the term 'Write Your Own' (WYO) refer to in the context of the NFIP?
Answer: A program allowing private insurers to sell and service NFIP policies under their own names
The WYO program allows participating private insurance companies to sell and service NFIP Standard Flood Insurance Policies under their own names while FEMA retains the financial risk.
Under the NFIP, what is the maximum contents coverage available for a residential building?
Answer: $100,000
NFIP policies provide up to $100,000 in contents coverage for residential properties, which is separate from the $250,000 building coverage limit.