Test 3
1. All of the following are ways in which the emergency program and the regular program of the National Flood Insurance program differ EXCEPT:
a. The emergency program uses subsidized rates.
b. The regular program uses actuarial rates.
c. Emergency program is for communities that have been accepted into the NFIP for years.
d. The regular program provides higher coverage limits
i. Answer C
2. Which of the following perils are not covered by the Inside the Premises- Theft of Money and Securities insuring agreement of the ISO Commercial Crime Coverage Form?
a. collusion
3. In the emergency program, the maximum amount of flood insurance available for nonresidential properties personal property coverage is:
a. $100,000
4. The following are advantages of Ensuing Loss Provision in the ISO Flood Coverage Endorsement.
a. Prevent the insurer from having to pay the sum of the flood limit and the policy limit that applies to other covered perils
b. The insured has double coverage
c. The limits can be stacked i. Answer both A and C
5. Which of the following is considered an employee in terms of Employee Theft Coverage?
a. Temps
6. All of the following are benefits provided to the insured by highly protected risk (HPR) insurance EXCEPT:
a. Intensive risk control services
b. Broad property coverage
c. Premiums lower than standard commercial property rates
d. Coverage for intentional errors i. ANSWER: D
7. All of the following are components of employee dishonest coverage EXCEPT:
a. Dishonest act
b. Crime condition
c. Manifest intent
d. Financial benefit
i. Answer: Crime Condition
8. Residential condominium associations can purchase flood insurance building coverage up to:
a. @250,000

9. All of the following are ways in which the emergency program and the regular program of the National Flood Insurance program differ Except:
a. Flood Insurance rate maps are not available under the emergency program
b. Flood insurance rate maps (FIRMs) are available under the regular.
c. Regular program is for communities that have been accepted into the NFIP for years
d. The emergency program provides higher coverage limits i. ANSWER: D
10. All of the following are exclusions under the Employee Theft insuring agreement EXCEPT:
a. Fire
b. Inventory Shortages
c. Warehouse Receipts
d. Trading i. ANSWER: A
11. When does a loss have to occur to be covered under the loss sustained version of the ISO Commercial Crime Coverage Form?
a. During the policy period
12. All of the following are disadvantages of difference in condition (DIC) insurance EXCEPT:
a. The market is limited
b. It is approved by all regulators throughout the United States
c. Policy provisions are not standardized, so interpretation is uncertain
d. Minimum premium requirements making coverage expensive for smaller accounts.
i. ANSWER: B
13. In the regular program, the maximum amount of flood insurance available for nonresidential properties personal property coverage is:
a. $500,000
14. When does a loss have to be discovered to be covered under the loss sustained version of the ISO Commercial Crime Coverage Form?
a. During the Policy Period
15. In the regular program, the maximum amount of flood insurance available for nonresidential properties building coverage is:
a. $500,000
16. All of the following are duties required by the Commercial Crime Coverage Form that an insured must perform after discovering a loss that may be covered under that form EXCEOPT
a. The insured must take pictures of the damage
b. The insured must notify the insurer of the loss as soon as possible
c. The insured must