Raf Flood Insurance - A

10 Questions | Total Attempts: 220

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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.


Questions and Answers
  • 1. 
    Why is Flood Insurance Important? 
    • A. 

      Regulators are serious about enforcing flood requirements.

    • B. 

      Civil Money Penalties can be assessed.

    • C. 

      Reputational risk for not complying.

    • D. 

      It protects the Borrower and the Lender.

    • E. 

      All the above.

  • 2. 
    Flood insurance coverage is not limited to consumer or mortgage loans and is triggered by collateral of the loan.
    • A. 

      True

    • B. 

      False

  • 3. 
    Lenders must require flood insurance not only at the time the loan is made but throughout the term of the loan.
    • A. 

      True

    • B. 

      False

  • 4. 
     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.
    • A. 

      True

    • B. 

      False

  • 5. 
    General requirements of flood are:
    • A. 

      A Standard Flood Hazard Determination Form must be used to document SFHA.

    • B. 

      Notice must be provided to a customer if in a SFHA at the time of closing.

    • C. 

      Flood insurance is required when making, renewing, increasing, or extending a designated loan.

    • D. 

      All of the above

    • E. 

      A and C

  • 6. 
    Can flood insurance be waived on a structure if there is enough value or equity in the land being pledged as collateral.
    • A. 

      Yes

    • B. 

      No

  • 7. 
    Lender must have proof of flood insurance?
    • A. 

      At the time of closing.

    • B. 

      At the time the notice is provided to the customer.

    • C. 

      At the time the customer can afford it.

    • D. 

      All of the above

    • E. 

      None of the above

  • 8. 
    Lender does not need to ensure that the customer has continued flood insurance and force place the flood insurance if needed?
    • A. 

      True

    • B. 

      False

  • 9. 
    Property owners ___________ contest a lender’s policy.
    • A. 

      May

    • B. 

      May not

  • 10. 
    Lenders are __________ to abide by the SFHA until a LOMR or LOMA is issued.
    • A. 

      Required

    • B. 

      Not required

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