CFM Flood Insurance & NFIP 2

Question 1

What is the primary purpose of the Elevation Certificate (EC) in relation to flood insurance?

Accepted Answer

To document a building's elevation for flood insurance rating and compliance purposes

Answer

The Elevation Certificate documents the elevation of a building relative to the Base Flood Elevation and is used by insurance agents to rate NFIP flood insurance policies and by communities to verify compliance with floodplain management ordinances.

Question 2

What is a Preferred Risk Policy (PRP) under the NFIP?

Accepted Answer

A lower-cost flood insurance policy available to eligible properties in low-to-moderate risk areas

Answer

A Preferred Risk Policy is a lower-cost NFIP flood insurance policy available to buildings located in moderate- or low-risk flood zones (B, C, and X zones) that meet eligibility requirements.

Question 3

Which of the following losses is typically NOT covered under a Standard NFIP flood insurance policy?

Accepted Answer

Additional living expenses while displaced

Answer

NFIP policies do not cover additional living expenses (ALE) or loss of use; this coverage must be obtained through a separate homeowners or renter's policy.

Question 4

What is a 'Repetitive Loss' property as defined by FEMA?

Accepted Answer

A property that has had two or more NFIP claim payments of more than $1,000 each within any 10-year period

Answer

FEMA defines a Repetitive Loss property as one with two or more NFIP claim payments of more than $1,000 each within any rolling 10-year period, regardless of ownership changes.

Question 5

What is a 'Severe Repetitive Loss' (SRL) property under the NFIP?

Accepted Answer

A property with NFIP cumulative claims exceeding the property value or with four or more separate claim payments over $5,000 each

Answer

SRL properties are those with cumulative NFIP claim payments exceeding the current value of the structure, OR those with four or more separate NFIP claim payments each exceeding $5,000 within any 10-year period.

CFM - Certified Floodplain Manager Practice Test

CFM - Certified Floodplain Manager Practice Test

CFM Flood Insurance & NFIP 2