CPCU 551 - Chapter 6 Practice Questions with 100% Correct Answers
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Course
CPCU 551
Institution
CPCU 551
"write your own" a program allowing private insurers to write flood insurance under the national flood insurance program
emergency program initial phase of a community's participation in the National Flood Insurance Program in which property owners in flood areas can purchase limited amounts of ...
CPCU 551 - Chapter 6 Practice Questions with 100% Correct Answers "write your own" ✅a program allowing private insurers to write flood insurance under the national flood insurance program emergency program ✅initial phase of a community's participation in the National Flood Insurance Program in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates regular program ✅second phase of the NFIP in which the community agrees to adopt flood -control and land -use restrictions and in which property owners purchase higher amounts of flood insurance than under the emergency program general property form ✅the version of the NFIP Standard Flood Insurance Policy that is used for insuring commercial buildings and contents residential condominium building association policy ✅a version of the national flood insurance program standard insurance policy that is used for insuring residential condominium buildings, as well as contents that are owned either by the unit owners in common or by the condominium association solely coinsurance ✅an insurance -to-value provision in many property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced difference in conditions policy or DIC insurance ✅policy that covers on an Special form ("all-risks") basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage output policy ✅a policy that combines, in one form and associated endorsements, all or most of the commercial property coverages that the insured organization needs, and uses a flexible rating plan highly protected risk ✅a large property whose construction meets high standards of risk mitigation and control characteristics and whose management maintains best practices loss control and risk mitigation techniques for the specific occupancy layered property coverage ✅two or more property policies arranged in levels of coverage; the policies in the second or higher levels provide coverage only when the loss exceeds the coverage afforded by the lower -level policies attachment point ✅the dollar amount above which the reinsurer responds to losses National Flood Insurance Program (NFIP) ✅A government -sponsored flood insurance program available to owners of property located in communities that participate in theNFIP To participate in the NFIP community must _____________________ ✅regulate new construction by enforcing community floodplain management ordinances Flood Insurance rate maps ✅show boundaries of flood zones. Zone in which a property is located determine flood insurance rates. Insured's enrolled in the NFIP Emergency Program will remain in the program until? ✅Floodplain management plan is developed NFIP Emergency Program provide subsidized rates of $_____________ for buildings and $__________________ for contents ✅$100,000; $100,000 NFIP Standard Insurance Policy comes in two forms: ✅1) General Property form 2) Residential Condominium Building Association Policy Characteristics of General Property form ✅1) Covers direct physical loss caused by flood at premises described in declarations 2) Covers building and contents on ACV basis with no option for replacement cost 3) does not include a coinsurance provision 4) Cannot be written on a blanket basis 5) Excludes loss of use and loss of income 6) Excludes several types of property and coverage for contents in a basement General Property Coverage -A covers ✅Building Property Generally more restrictive than coverage under a standard commercial property form For property to be covered under the General Property Coverage -A ✅Building must include two or more outside rigid walls and secure roof. Open -sided parking garage would not be covered General Property Form Coverage -A construction materials ✅Covered as long as they are stored in a fully -enclosed building
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