CPCU Ch. 7

Question 1

Area that the NFIP has classified as being expected to experience flooding at least once in 100 years

Answer 1

Special flood hazard area (SFHA)

Question 2

A temporary map designed to identify flood prone areas in the community

Answer 2

Flood hazard boundary map

Question 3

Initial phase of communities participation in the NFIP in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates

Answer 3

Emergency program

Question 4

A map that shows exact boundaries for special flood hazard areas, the various flood zones, and base flood elevations

Answer 4

Flood insurance rate map (FIRM)

Question 5

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

Answer 5

Regular program

Question 6

A program allowing private insurers to write flood insurance under the NFIP

Answer 6

Write your own (WYO) program

Question 7

A group of insurers or reinsurers involved in joint underwriting to insure major risks that are beyond capacity of a single insurer or reinsurer; each syndicate member accepts predetermined shares of premiums, losses, expenses, and profits

Answer 7

Syndicate

Question 8

Policy that covers on an all risks basis to fill gaps in the insured’s commercial property coverage, especially gaps in flood and earthquake coverage

Answer 8

Difference in conditions (DIC) policy, or DIC insurance