Flood Insurance Practice Test

For the Insurance program to require placement, the community must participate in the __________.

NFIP NFPA NIFP NFSP

Correct Answer:

NFIP

Explanation:

Participation in the National Flood Insurance Program is required for the flood insurance rule to apply. When a community joins NFIP, it adopts floodplain management regulations and residents in the high-risk SFHAs become eligible for NFIP flood insurance. This eligibility is what allows lenders to require flood insurance as a condition of financing. The other options aren’t related to flood insurance in this context: NFPA is the National Fire Protection Association, and the others aren’t recognized programs for flood insurance.

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