Which one of the following is a federal insurance plan in which the government acts as a partner with a private insurer that sells insurance and pays the claims, and then reimburses the insurer for the portion of losses that exceeds premiums and investment income?

Which one of the following is a federal insurance plan in which the government acts as a partner with a private insurer that sells insurance and pays the claims, and then reimburses the insurer for the portion of losses that exceeds premiums and investment income?



A.Beach and Windstorm Plan
B.National Flood Insurance Program (NFIP)
C.Terrorism Risk Insurance Program (TRIP)
D. Residual Auto Plan


Answer: B. In the National Flood Insurance Program (NFIP), the government acts as a partner with a private insurer that sells insurance and pays the claims, and then reimburses the insurer for the portion of losses that exceeds premiums and investment income.

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