CPCU 551, Chapter 6 Exam: National Flood Insurance Program and Property Insurance, Exams of Commercial Law

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CPCU 551, CHAPTER 6 EXAM

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Write your own (WYO) - ANSWERA program allowing private insurers to write flood insurance under the National Flood Insurance Program Emergency Program - ANSWERInitial phase of a community's participation in the National Flood Insurance Program in which property owners in flood areas can purchase limited amounts of insurance at a subsidized rate Coverage under the National Flood Insurance Program's (NFIP) Residential Condominium Building Association Policy (RCBAP) is similar to that found in the General Property Form. However, one distinct difference is - ANSWERThe NFIP offers replacement cost coverage on building property insured under a RCBAP. Residential Condominium Business Association Policy (RCBAP) - ANSWERA version of the National Insurance Flood Insurance Program Standard Insurance policy that is used for insuring residential condominium buildings as well as contents that are owned either by the unit owners in common or by the condominium association solely Coinsurance - ANSWERAn insurance to value provision in many property insurance policies providing that if the property is under-insured, the amount that an insurer will pay for a covered loss is reduced Increased Cost of Compliance (ICC) - ANSWERNational Flood Insurance coverage that pays for compliance costs related to floodplain management for qualifying structures Difference in Conditions (DIC) policy or DIC Insurance - ANSWERPolicy that covers on an all-risk basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage Highly protected risk (HPR) - ANSWERA large property whose construction meets high standards of risk, mitigation and control characteristics and whose management maintains best practices loss control and risk mitigation techniques for the specific occupancy Regular Program - ANSWERSecond phase of the National Flood Insurance Program in which the community agrees to adopt flood control and land-use restrictions and in which property owners purchase higher amounts of flood insurance that under the emergency program General Property Form - ANSWERThe version of the National Flood Insurance Program Standard Flood Insurance policy that is used for insuring commercial building and contents Layered property coverage - ANSWERTwo or more property policies arranged in levels of coverage, the policies in the second or higher levels provide coverage only when the loss exceeds the coverage afforded by the lower level policies