Other coverages Flashcards
Hurricane coverage includes coverage for all of the following when the direct force of the windstorm first damages the building causing an opening EXCEPT:
A. Damage to the interior caused by hail
B. Damage to the interior caused by sleet
C. Flood
D. Damage caused to property inside a building by dust
Answer: C. Flood
Minimum catastrophic risk protection (CAT) coverage is which of the following?
A. The most expensive type of crop insurance
B. A broader coverage than multiple peril crop insurance
C. A more limited coverage than multiple peril crop insurance
D. A more limited coverage than crop hail insurance
Answer: C
Federal flood insurance covers: A. Growing crop B. Piers, wharves and docks C. Motor vehicles D. Tidal wave caused by a hurricane
Answer: D.
Which of the following is incorrect regarding windstorm coverage?
A. Windstorm coverage may have a separate deductible, expressed as a percentage of the limit
B. All states limit the coverage for the peril of windstorm
C. High-risk areas such as coastal or beach regions will require a homeowner to purchase special insurance coverage for windstorms and/or hurricanes
D. In some states windstorm coverage is available through a state-run program
Answer: B
Crop hail insurance would never cover which of the following perils A. Low yield B. Hail C. Fire D. Vandalism and malicious mischief
Answer: A. Low Yield
Who sets the rates for crop insurance policies?
A. The USDA’s Risk Management Agency
B. Private insurers who sell the policies
C. The Federal Insurance Administration (FIA)
D. The Federal Trade Commission
Answer: A.
Which of the following is true regarding multiple peril crop insurance?
A. It is only available on corn crops
B. It provides comprehensive coverage against weather related causes of loss and certain on other unavoidable perils
C. It provides coverage for a very low fee
D. It provides coverage that is more limited than catastrophic risk protection
Answer: B.
Flood insurance will exclude damage done by: A. Mudflow on normally dry land B. Overflow of inland or tidal waters C. Collapsed shore D. Windblown rain
Answer: D. Windblown rain
All are true about the National Flood Insurance Program EXCEPT:
A. Communities must apply for eligibility
B. Private insurers may participate in the program
C. It is regulated by the Federal Insurance Administration (FIA)
D. Coverage is unlimited
Answer: D.
Coverage is NOT unlimited
Who sets the rates for policies sold through the National Flood Insurance Program?
A. The Federal Trade Commission
B. The USDA’s Risk Management Agency
C. Private insurers who sell the policies
D. The Federal Insurance Administration (FIA)
Answer: D. The FIA
Each of the following is true about the National Flood Insurance program EXCEPT:
A. Coverage is sold by licensed insurance agents
B. The federal government reimburses insurance companies for losses
C. Coverage may be written by private insurance carriers
D. Eligibility requirements are set by private insurance carriers.
Answer: D
When an insurer's losses from their write your own flood insurance program exceeds premiums and investment income, how are losses paid? A. By the state Guaranty Fund B. There is no coverage C. By assessing customers D. By the federal government
Answer: D. By the federal government
Which of the following are excluded on the NFIP flood insurance policy? A. Overflow of tidal waves B. Unusual runoff of surface waters C. Commercial structures D. Wharves, piers, bridges and docks
Answer: D. Wharves, piers, bridges and docks
Under the National Flood Insurance regular program, a single-family home may be insured up to: A. $150,000 B. $185,000 C. $100,000 D. $250,000
Answer: D. $250,000
Federal flood insurance will cover which of the following? A. Mudflow B. Storm sewer backup C. Landslide D. Mudslide
Answer: A. Mudflow
