Property & Casualty: Chapter 7--specialty Policies

1. What type of insurance does the NFIP provide?

Home

Auto

Flood

Life

The National Flood Insurance Program (NFIP) specifically offers flood insurance to individuals in flood-prone areas to protect against property damage caused by flooding. The NFIP does not provide life, auto, or home insurance coverage.

Explanation

The National Flood Insurance Program (NFIP) specifically offers flood insurance to individuals in flood-prone areas to protect against property damage caused by flooding. The NFIP does not provide life, auto, or home insurance coverage.

2. Flood coverage becomes effective how many days after the application is received?

60

30

45

15

Flood coverage becomes effective 30 days after the application is received as stated in the correct answer.

Explanation

Flood coverage becomes effective 30 days after the application is received as stated in the correct answer.

3. Flood insurance applies deductibles to what?

Three. Twice to the building and once to the contents.

Zero. There are no deductibles applied.

One. Either to the building or the contents.

Two. Once to the building and once to the contents

4. An Insured's Boatowners policy can cover injury caused to water skiers being towed by the boat under which portion of the policy?

Liability coverage

Boatowners Med Pay

Comprehensive coverage

Uninsured boater coverage

Boatowners Med Pay typically covers medical expenses for injuries to water skiers being towed by the insured boat, while Liability coverage focuses on bodily injury or property damage to others, Comprehensive coverage covers physical damage to the insured boat, and Uninsured boater coverage protects against damages caused by uninsured boaters.

Explanation

Boatowners Med Pay typically covers medical expenses for injuries to water skiers being towed by the insured boat, while Liability coverage focuses on bodily injury or property damage to others, Comprehensive coverage covers physical damage to the insured boat, and Uninsured boater coverage protects against damages caused by uninsured boaters.

5. Boatowners covers the boat, motor, and trailer but not ______ ________ in the boat.

Personal Property

Electronic devices

Fishing equipment

Food and beverages

Boatowners insurance typically covers the physical attributes of the boat, motor, and trailer, but personal property such as fishing equipment, electronic devices, and food and beverages would not be covered under this policy.

Explanation

Boatowners insurance typically covers the physical attributes of the boat, motor, and trailer, but personal property such as fishing equipment, electronic devices, and food and beverages would not be covered under this policy.

6. What does FAIR plan coverage provide?

Life insurance for individuals.

Property coverage for homes and businesses in urban areas

Liability coverage for vehicles in rural areas.

Health insurance for seniors.

7. Which of the following is considered a flood? Mudflow or Landslide.

Forest fire

Landslide

Earthquake

Mudflow

Mudflow is a type of flood caused by heavy rainfall or rapid snowmelt, while landslides, earthquakes, and forest fires are not considered floods as they involve different natural phenomena and processes.

Explanation

Mudflow is a type of flood caused by heavy rainfall or rapid snowmelt, while landslides, earthquakes, and forest fires are not considered floods as they involve different natural phenomena and processes.

8. What types of properties are covered under NFIP?

Car. Flood can cover residential, commercial, and farm buildings but not automobiles

Barn

Vacation homes

Car

NFIP covers residential, commercial, and farm buildings for flood insurance, but does not cover automobiles, barns, or vacation homes.

Explanation

NFIP covers residential, commercial, and farm buildings for flood insurance, but does not cover automobiles, barns, or vacation homes.