Flood Insurance Questions with Correct Answers

The purpose of the flood insurance requirements is to: CORRECT ANSWER Inform and protect A home equity loan is not considered eligible for flood insurance. CORRECT ANSWER F An SFHDF is used to determine: CORRECT ANSWER Whether the property lies in an SFHA A detached structure that is joined by a structural connection to a part of a residential property is considered exempt from the flood insurance requirements. CORRECT ANSWER F NFIP insurance is available for: CORRECT ANSWER Residential buildings Commercial buildings Agricultural buildings **All of the above An institution's failure to use the SFHDF to determine if a property lies in an SFHA is a potential violation of the flood insurance requirements. CORRECT ANSWER T Financial institutions are required to accept private flood insurance that meets both: CORRECT ANSWER The definition of private flood insurance and the mandatory purchase requirement Because only one flood insurance policy can be issued per structure, it should be issued in an amount sufficient to cover both the first mortgage and the second mortgage, if there is one. CORRECT ANSWER T The intended purpose of the loan, as opposed to