CFM Flood Insurance & NFIP 3

Question 1

What is the Community Rating System (CRS) in the context of the NFIP?

Accepted Answer

A voluntary program that rewards communities implementing floodplain management activities exceeding NFIP minimums with reduced flood insurance premiums

Answer

The CRS is a voluntary FEMA incentive program that recognizes and encourages community floodplain management activities beyond the NFIP minimum requirements, providing discounts of 5–45% on flood insurance premiums for policyholders in participating communities.

Question 2

CRS discounts on flood insurance premiums are organized into class levels. What is the range of CRS classes?

Accepted Answer

Class 1 through 10

Answer

CRS classes range from Class 10 (no discount, just meeting NFIP minimums) to Class 1 (the highest discount of 45%), with each class improvement providing an additional 5% discount on premiums.

Question 3

Which of the following is NOT one of the four CRS credit series activity categories?

Accepted Answer

Emergency Management Training (Series 700)

Answer

The four CRS credit series are: Public Information (300), Mapping and Regulations (400), Flood Damage Reduction (500), and Warning and Response (600); Emergency Management Training is not a CRS credit series.

Question 4

What is the Biggert-Waters Flood Insurance Reform Act of 2012 primarily known for?

Accepted Answer

Phasing out subsidized NFIP rates and moving toward risk-based premiums

Answer

The Biggert-Waters Act of 2012 was landmark legislation that sought to phase out subsidized flood insurance rates and move NFIP toward actuarially sound, risk-based premiums, though many provisions were later modified by the Homeowner Flood Insurance Affordability Act of 2014.

Question 5

Under the NFIP, what does 'substantial improvement' mean for an existing building in the floodplain?

Accepted Answer

Any reconstruction or improvement where the cost equals or exceeds 50% of the market value of the structure

Answer

Substantial improvement is any reconstruction, rehabilitation, addition, or improvement of a structure where the cost equals or exceeds 50% of the market value of the structure before the start of construction, triggering the requirement to bring the entire structure into compliance with current floodplain regulations.

CFM - Certified Floodplain Manager Practice Test

CFM - Certified Floodplain Manager Practice Test

CFM Flood Insurance & NFIP 3