Flashcards in Section 3C Deck (27):
Federal Insurance Administration
Sets the rates, eligibility requirements, and coverage limits for NFIP.
National Flood Insurance Program
Department of Housing and Urban Development (HUD)
set program standards for NFIP
Flood Insurance may be written directly with
The NFIP , or with one of the several participating private insurers.
If a community agrees to adopt
Flood-control measures and improved land-use regulations, it may apply for participation in NFIP
When the community first participates, structures become eligible for the NFIP's emergency program
Which provides coverage for an interim period of time during which the FIA studies the area.
Single family homes covered up to $35,000
Apartment houses and other residential properties, including commercial properties, may be covered up to $100,000
Regular program covers
Single family homes up to maximum of $250,000 (and contents from $10,000 to $100,000)
Small business and other non-residential structures covered up to $500,000
Flood policies have a deductible of
$500 to each building loss and each contents loss on a per occurrence basis.
Single-Family homes are covered on a
Replacement cost basis if structure is insured for at least 80% of its replacement value.
All other buildings, as well as contents, are insured on an ACV basis.
NFIP policies cover
All direct losses by or from flood.
Temporary, partial, or complete inundation of normally dry land by an overflow of inland or tidal waters, an unusual and rapid accumulation or runoff of surface waters or mud flows on the surface of normally dry areas. Also covered is the collapse of land along the shore of a body of water
Debris removal is covered,
Up to the policy
Whether the flood coverage is written by the NFIP or through a participating private carrier's write your own program,
The federal govt is underwriting the risk of loss.
There is a 30 day
Waiting Period for NFIP
Boat owners policies are similar to auto insurance.
They cover watercraft liability in the event you negligently injure someone or damage his or her property (BI and PD)
The boat itself is covered for physical damage in the event it sinks, is stolen or is involved in a collision.
Coverage is provided on an ACV basis.
Yacht Policies are written as a type of ocean marine insurance.
They include coverages for the hull, medical coverage for passengers, BI and PD liability (called P&I- protection and indemnity on a yacht policy) and the federal Jones Act (a type of workers' compensation for the crew--if any)
Premiums discounted for a 'layup period' which is the period of time the boat is out of the water each year for maintenance or repairs.
Type of workers' compensation for the crew
The period of time the boat is out of the water each year for maintenance or repairs.
Federal Crop Insurance
Administered by the USDA Risk Management Agency (RMA)
Provides producers with risk management tools to address crop-yield and/or revenue losses on their farms.
Farmer grows an insurable crop and pays a portion of the premium--the govt pays the other 60% of the total.
Multiple Peril Crop Insurance (MPCI)
Protected against low yields and poor quality as well as prevented planting,late planting, and replanting costs for most crops due to weather-related causes of loss.
Minimum CAT (catastrophic risk protection)
Is available for a ver low administrative fee per crop per county.
These policies pay only those losses in excess of 50% of your yield guarantee and at 55% of the price set for the crop.
CAT coverage allows one basic unit per crop per county per shareholder.
Crop Hail Insurance
Provides coverage against loss to growing crops caused by hail.it may also provide coverage for fire, lightning,wind (when accompanied by hail or by separate endorsement), vandalism and malicious mischief.
Is coverage for loss or damage caused by windstorm during a hurricane. It includes damage to the interior of the building, or to property inside the building, caused by rain, snow, sleet, hail, sand or dust.