FreeExam

Flood Insurance Product Training Examination

Flood zones, building and contents coverage, and waiting periods.

Insurance exams are administered by state insurance departments, designation sponsors, and actuarial societies. FreeExam is not affiliated with those organizations, and these questions are original practice, not an official test.

  1. 1.A river overflows and covers normally dry land around several homes, including the first floor of Nora's house. Her standard homeowners policy is in force. Which statement is correct?

  2. 2.Unusual surface runoff covers two neighboring yards and enters both homes. The land is normally dry. How should this water be classified for flood insurance?

  3. 3.A supply pipe inside Caleb's kitchen bursts and soaks that room. No outside water entered, and only his house is wet. Is this a flood under the program?

  4. 4.Which condition meets the program definition of a flood?

  5. 5.A house sits in Zone A on an inland flood map. Which description of that zone is correct?

  6. 6.Mara's inland home is mapped in Zone AE. What does that zone label mean?

  7. 7.A beach house is mapped in Zone V. Which statement is correct?

  8. 8.Which zone is a coastal high-risk flood zone with wave action?

  9. 9.Leah's house is in Zone X. Which statement about that zone is correct?

  10. 10.Which zones are special flood hazard areas?

  11. 11.Owen's house is in Zone AE. He is closing a mortgage from a federally regulated lender. What flood insurance duty comes with that loan?

  12. 12.A house in Zone X has a mortgage from a federally backed lender. Which statement is correct about mandatory purchase?

  13. 13.Why must a Zone A house with a new federally backed mortgage carry flood insurance?

  14. 14.Rita buys a standard program flood policy for a home she already owns. When does flood coverage begin?

  15. 15.Sam applies for a standard flood policy on a house he has owned for years. Which statement is correct?

  16. 16.A federally regulated lender is making a new mortgage on a Zone AE house, and flood coverage is required at the loan closing. Which waiting-period statement is correct?

  17. 17.Flood coverage is required because a federally backed lender is increasing an existing loan on a Zone V house. Which statement is correct?

  18. 18.At renewal of a federally regulated mortgage, the lender requires flood coverage on a Zone A building. Which statement is correct?

  19. 19.A lender is extending a federally backed loan, and flood coverage is required for that extension on a Zone VE house. What is true of the waiting period?

  20. 20.Helen buys flood insurance a month after she paid cash for a Zone AE house. When does the standard policy waiting period run?

  21. 21.A flood policy lists building coverage and does not list contents coverage. A flood damages both the structure and the furniture. Which statement is correct?

  22. 22.Building flood damage is $20,000. The building deductible is $2,000. The policy also has a $1,000 contents deductible, and contents were not damaged. What is the building payment if the limit is high enough?

  23. 23.Flood damages only the building. The building loss is $45,000 and the building deductible is $5,000. The contents deductible is $2,000, and there is no contents loss. The limit is high enough. What is the building payment?

  24. 24.Contents flood damage is $12,000. The contents deductible is $1,500. The building deductible is $3,000, and the building was not damaged. The contents limit is high enough. What is the contents payment?

  25. 25.A flood damages the building for $30,000 and the contents for $8,000. The building deductible is $2,000 and the contents deductible is $1,000. Limits are high enough. What is the building payment?

  26. 26.Building damage is $15,000 with a $1,000 building deductible. Contents damage is $6,000 with a $500 contents deductible. Limits are high enough. What are the two payments?

  27. 27.A residential flood policy is written at the program maximums. What is the longstanding maximum for the building?

  28. 28.What is the longstanding residential program maximum for contents?

  29. 29.Building flood damage is $300,000. The building limit is the $250,000 residential program maximum. The building deductible is $1,000. What building payment can the policy make?

  30. 30.Building flood damage is $80,000. The building limit is $250,000 and the building deductible is $5,000. What is the building payment?

  31. 31.Contents flood damage is $140,000. The contents limit is the $100,000 residential program maximum. The contents deductible is $1,000. What contents payment can the policy make?

  32. 32.Contents damage is $40,000. The contents limit is $100,000 and the contents deductible is $2,000. The building deductible is $5,000, and there is no building damage. What is the contents payment?

  33. 33.A sofa has a replacement cost of $2,000 and depreciation of $800. Contents are settled at actual cash value. What is the actual cash value before any deductible?

  34. 34.Damaged contents have a replacement cost of $10,000 and depreciation of $3,000. The contents deductible is $1,000. The contents limit is high enough. What is the contents payment?

  35. 35.A dwelling is the owner's principal residence. Its replacement cost is $200,000. The flood building amount is $160,000. Which statement is correct?

  36. 36.The owner's principal residence has a replacement cost of $200,000. The flood building amount is $140,000. Does that amount meet the 80 percent test?

  37. 37.Replacement cost of a principal residence is $300,000. The policy building amount is $240,000, which is within the $250,000 program maximum. Which statement is correct?

  38. 38.A principal residence has a replacement cost of $400,000. 80 percent of that cost is $320,000, above the $250,000 program building maximum. The policy is written for $250,000. Which statement is correct?

  39. 39.Which building can use replacement cost settlement when the insurance amount meets the 80 percent test or is the maximum available?

  40. 40.Flood damages a five-year-old bedroom set. Replacement cost is $4,000 and depreciation is $1,500. Which settlement applies to these contents?

  41. 41.Flood ruins a finished basement recreation room, including its carpet, paneling, and sofa. The first floor is undamaged. Which statement is correct?

  42. 42.Which loss is ordinary above-grade building damage rather than limited basement coverage?

  43. 43.What does an elevation certificate do in flood insurance?

  44. 44.After a flood, an insured says the elevation certificate alone is enough to claim payment. Which statement is correct?

  45. 45.A flood substantially damages a house. The policy states increased cost of compliance coverage of $20,000. Floodplain law requires compliance work that costs $20,000. What can that coverage do?

  46. 46.Increased cost of compliance on a policy is stated as $15,000. Compliance work after substantial flood damage costs $22,000. How much can that coverage pay toward the compliance cost?

  47. 47.A mudflow inundates two homes and the normally dry land around them. Which statement is correct?

  48. 48.Shore collapse along a lake inundates two or more acres of normally dry land. Which statement is correct?

  49. 49.A washing-machine hose inside one house breaks and wets only that basement. No outdoor water is involved. Which statement is correct?

  50. 50.A lake overflows and covers several normally dry lots, including two houses. Which description is correct?

  51. 51.Water from the ocean overflows and inundates two coastal properties in Zone VE. Which statement is correct?

  52. 52.A Zone A house is bought for cash. There is no mortgage. Which statement matches the mandatory-purchase rule?

  53. 53.A Zone V house will secure a new loan from a federally backed lender. Which statement is correct?

  54. 54.After a flood, which statement misrepresents the damage?

  55. 55.Which statement misrepresents a flood loss?

  56. 56.Unusual surface runoff covers two neighboring houses and their normally dry yards. No pipe inside either house broke. Which statement is correct?

  57. 57.Overflow covers three acres of a normally dry field. Only one barn stands there, and no second building is wet. Can this meet the flood definition?

  58. 58.Building damage is $250,000. The building limit is $250,000 and the building deductible is $10,000. What is the building payment?

  59. 59.A refrigerator has a replacement cost of $1,800 and depreciation of $600. The contents deductible has already been met by other items. What is payable for the refrigerator?

  60. 60.Replacement cost of a principal residence is $180,000. What building amount is 80 percent of that cost?

  61. 61.A principal residence has a replacement cost of $180,000. The flood building amount is $144,000. Which statement is correct?

  62. 62.Luis insures his house for the $250,000 building maximum and buys no contents coverage. A flood damages the structure for $20,000 and the furniture for $9,000. The building deductible is $2,000. What is payable for the furniture?

  63. 63.Building damage is $60,000. The building deductible is $4,000. Contents damage is $9,000, and the policy has no contents coverage. The building limit is $250,000. What is the building payment?

  64. 64.Two houses have mortgages from federally regulated lenders. One house is in Zone AE and the other is in Zone X. Which statement is correct?

  65. 65.A homeowner in Zone A buys a standard flood policy on a house owned free and clear. Which statement is correct about the start of coverage?

  66. 66.Flood coverage is required in connection with making a mortgage at closing. The lender is federally regulated, and the house is in Zone AE. Which statement is correct?

  67. 67.Surface water from a heavy storm covers a normally dry street and the ground floors of several houses. The owners look to their standard homeowners policies. Which statement is correct?

  68. 68.Which description of basement flood coverage is correct?

  69. 69.Increased cost of compliance coverage is stated on a policy as $30,000. The house has a small stain, the building is not substantially damaged, and no floodplain compliance work is required. What should the insured expect from that coverage?

  70. 70.An agent is rating a new flood policy and asks for an elevation certificate. The insured has not had a loss. Which statement is correct?

  71. 71.At Jordan's house, a river overflows and covers the neighborhood. On another day, a supply pipe inside a wall bursts and wets only his hallway. Which statement is correct?

  72. 72.A creek overflows into one house and also covers the neighbor's normally dry yard and first floor. Which statement is correct?

  73. 73.Which pairing of zone and description is correct?

  74. 74.Building damage is $22,000 with a $2,000 deductible. Contents damage, already measured at actual cash value, is $11,000 with a $1,000 deductible. Both limits are high enough. What is the contents payment?

  75. 75.Building damage is $22,000. The building deductible is $2,000 and the contents deductible is $1,000. Contents were not damaged. The building limit is $200,000. What is the building payment?

  76. 76.A residential flood policy is at the program maximums. The building is insured for $250,000. What is the longstanding maximum the policy can provide for contents?

  77. 77.The contents actual cash value loss is $130,000. The contents limit is $100,000 and the contents deductible is $500. What contents payment can be made?

  78. 78.Replacement cost of a principal residence is $250,000. The building is insured for $200,000. Which statement is correct?

  79. 79.Replacement cost of a principal residence is $250,000. The building is insured for $180,000, below the $250,000 program maximum. Which statement is correct?

  80. 80.Contents have a replacement cost of $8,000 and depreciation of $2,000. The dwelling is a principal residence insured to 80 percent of its replacement cost. The insured wants replacement cost on the contents. Which statement is correct?

  81. 81.A house in Zone VE and a house in Zone X each have a mortgage from a federally regulated lender. Which statement is correct?

  82. 82.How long is the standard waiting period before flood coverage begins on a standard program policy?

  83. 83.On the day a federally backed lender renews a mortgage, flood coverage is required for a Zone A house. The borrower asks whether coverage is always blocked for 30 days. Which answer is correct?

  84. 84.Building damage is $50,000, the building deductible is $5,000, and the contents deductible is $2,500. Contents damage is $0. Which building calculation is correct?

  85. 85.Building damage is $16,000 with a $1,000 deductible. Contents actual cash value loss is $5,000 with a $500 deductible. Limits are high enough. What is the total of the two payments?

  86. 86.Building damage is $400,000. The building limit is the $250,000 residential maximum. The building deductible is $5,000. What is the building payment?

  87. 87.Contents actual cash value is $25,000. The contents deductible is $1,000. The building deductible is $2,000, and the building is undamaged. The contents limit is $100,000. What is the contents payment?

  88. 88.Which event can be a flood under the program definition?

  89. 89.Which document relates the lowest floor to the base flood elevation for rating a flood policy?

  90. 90.A substantially damaged house must be brought into compliance with a floodplain law. The policy states increased cost of compliance coverage of $25,000. The compliance work costs $18,000. How much of that work can this coverage help pay?

  91. 91.Priya wants coverage for river overflow that covers her street and two homes. She already has a standard homeowners policy. Which statement is correct?

  92. 92.A Zone X house is outside a special flood hazard area, and the owner has no mortgage. Which statement is correct?

  93. 93.The program definition describes a flood as which kind of condition?

  94. 94.An agent says one deductible is taken twice from the building payment. Building damage is $20,000, the building deductible is $2,000, and the contents deductible is $1,000. There is no contents loss. Which correction is right?

  95. 95.A principal residence has a replacement cost of $125,000. The building is insured for $100,000. Which statement is correct?

  96. 96.A principal residence has a replacement cost of $150,000. The owner insures the building for $100,000. Which statement is correct?

  97. 97.A claim asks to settle a finished basement recreation room, its carpet, and its furniture the same way as the first-floor living room. Which statement is correct?

  98. 98.Which statement misrepresents the damage?

  99. 99.Collapse along the shore of a lake sends water across two normally dry parcels and into both houses. Which statement is correct?

  100. 100.Unusual surface runoff flows across normally dry land and into two houses. It does not cover two acres. Which statement is correct?

  101. 101.Building damage is $90,000. The building limit on the policy is $150,000, below the $250,000 program maximum. The building deductible is $10,000. What is the building payment?

  102. 102.A dining table has a replacement cost of $3,000 and depreciation of $3,000. What is its actual cash value?

  103. 103.Contents have a replacement cost of $9,000 and depreciation of $2,250. The contents deductible is $750. The contents limit is $100,000. What is the contents payment?

  104. 104.A map shows four houses: one in Zone A, one in Zone AE, one in Zone V, and one in Zone X. Which house is not in a special flood hazard area?

  105. 105.A borrower lives in a Zone AE house. A federally regulated lender is increasing the loan, and flood coverage is required for that increase. Which statement is correct?

  106. 106.Building damage is $10,000 with a $1,500 building deductible. The contents loss is $4,000 at actual cash value with a $500 contents deductible. Limits are high enough. What is the building payment?

  107. 107.Increased cost of compliance on the policy is $10,000. A flood substantially damages the house, and floodplain law requires work that costs $40,000. What is the most this coverage can pay toward that work?

  108. 108.A Zone AE house is closing a new mortgage with a federally regulated lender, and flood coverage is required at that closing. The owner also has a standard homeowners policy. Which statement is correct?