GA Claims Adjuster Licensing Exam| 129
questions| 14 pages| with complete solutions
What coverage does Community Eligibility apply to? Correct Answer: Flood insurance through
FEMA
What's the difference between Emergency Program and Regular Program in the National Flood
Insurance Program? Correct Answer: Emergency applies to homes in communities that are a
normally not a flood hazard. Regular programs are awarded to an entire community that is
eligible due to flood hazard.
What is the flood coverage on a regular program in a 1-4 Family Dwelling? Correct Answer:
$250,000
On what policy can you add the Flood Program endorsement? Correct Answer: None! It has its
own policy through the Federal Government.
Difference in Conditions (DIC) Insurance Correct Answer: A separate insurance policy that
provides open-perils coverage to fill in the gaps left by flood coverage if a home is worth over
$250K. Coverage is produced through Excess/Surplus Lines.
What is the waiting period on NFIP coverage? Correct Answer: 30 days after policy purchase
What is the coverage change waiting period for the NFIP? Correct Answer: 5 days
Give examples of the flood peril Correct Answer: - an overflow of inland or tidal waters
- unusual or rapid accumulation or runoff of surface waters
-Mudflow or Mudslide
- Collapse of land along the shore of a lake as a result of erosion
What kinds of things does flood insurance cover? Correct Answer: Your house and your things
(dwelling and personal property). No indirect charges.
Dwelling coverage extension for flood insurance covers what? How much is it? Correct Answer:
Structures not attached to dwelling (O.S. or Appurtenant structures). 10% of Dwelling limit.
***It is an extension of coverage, NOT the $250K limit so any coverage needed here will reduce
the amount able to go to the dwelling.
Contents coverage of flood insurance is limited to what? Correct Answer: Personal property
damaged or destroyed by the flood itself and belongs to insured and resident spouse/relatives.
The insured is liable for content of others.
What are the coverages of flood insurance? Correct Answer: Dwelling, Contents, Debris
Removal
, How are damaged items valued in flood coverage? Correct Answer: Dwelling - replacement cost
Contents - Actual Cash Value
What kind of property is not covered by flood insurance? Correct Answer: Basements and
underground structure (ex. septic tanks), animals, money/accounts/bills, land, anything else
covered by other policies (motor vehicles, aircraft, watercraft)
Loss Valuation on flood insurance Correct Answer: (amount of insurance purchased/80%
Dwellings Total replacement cost) x Loss Amount
Standard deductible on flood insurance Correct Answer: $1K for Dwelling and $1K for Content
Personal Inland Marine Insurance Correct Answer: Floaters or policies for world-wide coverage
of personal property on an open-peril basis.
Is flood excluded from Personal Inland Marine Insurance? Correct Answer: NOPE. It's covered!
What are the floaters available on Personal Inland Marine Insurance? Correct Answer: Personal
Articles Floaters, Personal Property Floaters, and Personal Effects Floaters
What perils are covered under Personal Inland Marine Insurance floaters? Correct Answer: all;
open-peril
Which PIMI floater would be appropriate for a diamond ring? Why? Correct Answer: Personal
Articles Floater - itemizes valuables such as jewelry and furs
What is a Personal Effects Floater good for? What deductible does it have? Correct Answer:
world-wide open peril coverage of personal property for people who are traveling - luggage,
sports equipment, clothes, and camera. NO DEDUCTIBLE.
What is a Personal Property Floater good for? What kind of limit do they have? Correct Answer:
World-wide open peril coverage of personal property - usually for special occasions like
weddings or exhibitions. There is a blanket limit!
Does personal inland marine insurance cover flood? Correct Answer: Yes. Somehow.
All of the following coverage is available under a Standard Flood Insurance Policy issued by the
National Flood Insurance Program except:
a. Loss of Use
b. Dwelling
c. Personal Property
d. Removal Correct Answer: A. Loss of Use
The maximum number of days that a Standard Flood Insurance Policy will cover property
removed is:
questions| 14 pages| with complete solutions
What coverage does Community Eligibility apply to? Correct Answer: Flood insurance through
FEMA
What's the difference between Emergency Program and Regular Program in the National Flood
Insurance Program? Correct Answer: Emergency applies to homes in communities that are a
normally not a flood hazard. Regular programs are awarded to an entire community that is
eligible due to flood hazard.
What is the flood coverage on a regular program in a 1-4 Family Dwelling? Correct Answer:
$250,000
On what policy can you add the Flood Program endorsement? Correct Answer: None! It has its
own policy through the Federal Government.
Difference in Conditions (DIC) Insurance Correct Answer: A separate insurance policy that
provides open-perils coverage to fill in the gaps left by flood coverage if a home is worth over
$250K. Coverage is produced through Excess/Surplus Lines.
What is the waiting period on NFIP coverage? Correct Answer: 30 days after policy purchase
What is the coverage change waiting period for the NFIP? Correct Answer: 5 days
Give examples of the flood peril Correct Answer: - an overflow of inland or tidal waters
- unusual or rapid accumulation or runoff of surface waters
-Mudflow or Mudslide
- Collapse of land along the shore of a lake as a result of erosion
What kinds of things does flood insurance cover? Correct Answer: Your house and your things
(dwelling and personal property). No indirect charges.
Dwelling coverage extension for flood insurance covers what? How much is it? Correct Answer:
Structures not attached to dwelling (O.S. or Appurtenant structures). 10% of Dwelling limit.
***It is an extension of coverage, NOT the $250K limit so any coverage needed here will reduce
the amount able to go to the dwelling.
Contents coverage of flood insurance is limited to what? Correct Answer: Personal property
damaged or destroyed by the flood itself and belongs to insured and resident spouse/relatives.
The insured is liable for content of others.
What are the coverages of flood insurance? Correct Answer: Dwelling, Contents, Debris
Removal
, How are damaged items valued in flood coverage? Correct Answer: Dwelling - replacement cost
Contents - Actual Cash Value
What kind of property is not covered by flood insurance? Correct Answer: Basements and
underground structure (ex. septic tanks), animals, money/accounts/bills, land, anything else
covered by other policies (motor vehicles, aircraft, watercraft)
Loss Valuation on flood insurance Correct Answer: (amount of insurance purchased/80%
Dwellings Total replacement cost) x Loss Amount
Standard deductible on flood insurance Correct Answer: $1K for Dwelling and $1K for Content
Personal Inland Marine Insurance Correct Answer: Floaters or policies for world-wide coverage
of personal property on an open-peril basis.
Is flood excluded from Personal Inland Marine Insurance? Correct Answer: NOPE. It's covered!
What are the floaters available on Personal Inland Marine Insurance? Correct Answer: Personal
Articles Floaters, Personal Property Floaters, and Personal Effects Floaters
What perils are covered under Personal Inland Marine Insurance floaters? Correct Answer: all;
open-peril
Which PIMI floater would be appropriate for a diamond ring? Why? Correct Answer: Personal
Articles Floater - itemizes valuables such as jewelry and furs
What is a Personal Effects Floater good for? What deductible does it have? Correct Answer:
world-wide open peril coverage of personal property for people who are traveling - luggage,
sports equipment, clothes, and camera. NO DEDUCTIBLE.
What is a Personal Property Floater good for? What kind of limit do they have? Correct Answer:
World-wide open peril coverage of personal property - usually for special occasions like
weddings or exhibitions. There is a blanket limit!
Does personal inland marine insurance cover flood? Correct Answer: Yes. Somehow.
All of the following coverage is available under a Standard Flood Insurance Policy issued by the
National Flood Insurance Program except:
a. Loss of Use
b. Dwelling
c. Personal Property
d. Removal Correct Answer: A. Loss of Use
The maximum number of days that a Standard Flood Insurance Policy will cover property
removed is:
