Raf Flood Insurance - A

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By NeilHS
N
NeilHS
Community Contributor
Quizzes Created: 1 | Total Attempts: 245
| Attempts: 245 | Questions: 10
Please wait...
Question 1 / 10
0 %
0/100
Score 0/100
1. Lenders are __________ to abide by the SFHA until a LOMR or LOMA is issued.

Explanation

Lenders are required to abide by the SFHA until a LOMR or LOMA is issued. This means that they must follow the guidelines and regulations set forth in the Special Flood Hazard Area until they receive official documentation stating otherwise. This is important for ensuring that lenders are aware of the potential flood risks associated with a property and can make informed decisions regarding lending and insurance.

Submit
Please wait...
About This Quiz
Insurance Quizzes & Trivia

An assessment of understanding for those that participated in the RAF Flood Training conducted by Susan Stephens on September 26 and 27, 2011.

2. Lenders must require flood insurance not only at the time the loan is made but throughout the term of the loan.

Explanation

Lenders must require flood insurance throughout the term of the loan to protect their investment in case of a flood event. This ensures that the borrower has adequate insurance coverage to cover any potential damage or loss caused by a flood. By requiring flood insurance throughout the loan term, lenders can mitigate their risk and protect their financial interests.

Submit
3. Can flood insurance be waived on a structure if there is enough value or equity in the land being pledged as collateral.

Explanation

Flood insurance cannot be waived on a structure based on the value or equity of the land being pledged as collateral. The requirement for flood insurance is determined by the location of the structure and the risk of flooding in that area, rather than the value of the property. Therefore, even if there is enough value or equity in the land, flood insurance cannot be waived.

Submit
4. Flood insurance coverage is not limited to consumer or mortgage loans and is triggered by collateral of the loan.

Explanation

Flood insurance coverage is not limited to consumer or mortgage loans means that flood insurance can be obtained for purposes other than just consumer or mortgage loans. It implies that flood insurance can be purchased for various types of properties or assets, not just those associated with loans. The statement also mentions that flood insurance is triggered by collateral of the loan, indicating that the insurance coverage is activated when the loan collateral is affected by a flood. Therefore, the correct answer is true.

Submit
5. Why is Flood Insurance Important? 

Explanation

Flood insurance is important for several reasons. Firstly, regulators are strict about enforcing flood requirements, and failing to comply can result in civil money penalties. Additionally, not having flood insurance can damage a person's reputation. Moreover, flood insurance protects both the borrower and the lender from financial losses in the event of a flood. Therefore, all of the above reasons make flood insurance important.

Submit
6. Lender must have proof of flood insurance?

Explanation

The correct answer is "At the time of closing." This means that the lender must have proof of flood insurance when the loan is being finalized and the property is being transferred to the buyer. It is important for the lender to have this proof to ensure that the property is protected against potential flood damage, which could affect the value of the property and the borrower's ability to repay the loan. Having flood insurance in place at the time of closing helps mitigate these risks for the lender.

Submit
7. Lender does not need to ensure that the customer has continued flood insurance and force place the flood insurance if needed?  

Explanation

The correct answer is False. This means that the lender does need to ensure that the customer has continued flood insurance and force place the flood insurance if needed. This is because having flood insurance is important for protecting the property and ensuring that the borrower can repay the loan in the event of a flood. The lender wants to mitigate their risk and protect their investment by making sure the borrower has the necessary insurance coverage.

Submit
8.  A lender can allow the borrower to use the maximum deductibles to reduce the cost of flood insurance but it is not a sound business practice.

Explanation

Allowing the borrower to use the maximum deductibles to reduce the cost of flood insurance may seem like a beneficial option for the borrower, but it is not a sound business practice for the lender. By allowing the borrower to use maximum deductibles, the lender is taking on a higher risk as they would have to bear a larger portion of the cost in case of a flood. This can potentially lead to financial losses for the lender, making it an unsound business practice.

Submit
9. Property owners ___________ contest a lender's policy.

Explanation

Property owners may not contest a lender's policy. This means that property owners do not have the ability or right to challenge or dispute a lender's policy. They are bound by the terms and conditions set by the lender and do not have the authority to contest it.

Submit
10. General requirements of flood are:

Explanation

The correct answer is "A and C". This means that both the Standard Flood Hazard Determination Form must be used to document SFHA and flood insurance is required when making, renewing, increasing, or extending a designated loan. These requirements are important for identifying and managing flood risks, as well as ensuring that appropriate insurance coverage is in place for properties located in flood hazard areas.

Submit
View My Results

Quiz Review Timeline (Updated): Mar 19, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 19, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 06, 2011
    Quiz Created by
    NeilHS
Cancel
  • All
    All (10)
  • Unanswered
    Unanswered ()
  • Answered
    Answered ()
Lenders are __________ to abide by the SFHA until a LOMR or LOMA is...
Lenders must require flood insurance not only at the time the loan is...
Can flood insurance be waived on a structure if there is enough value...
Flood insurance coverage is not limited to consumer or mortgage loans...
Why is Flood Insurance Important? 
Lender must have proof of flood insurance?
Lender does not need to ensure that the customer has continued flood...
 A lender can allow the borrower to use the maximum deductibles...
Property owners ___________ contest a lender's policy.
General requirements of flood are:
Alert!

Advertisement