IS-1108: Insuring Condominiums Answers

1

Which building type has the availability of optional higher deductibles: low-rise buildings or high-rise buildings?

  • Low-rise buildings
  • High-rise buildings
  • Both
  • Neither
2

Under which SFIP forms can condominiums be written?

  • Dwelling Form
  • General Property Form
  • RCBAP
  • C only
  • A and C
  • All of the above
3

The RCBAP covers loss assessments levied against a condominium association to cover the cost of a coinsurance penalty.

  • True
  • False
4

Which of the following apply to all three SFIP forms?

  • Separate deductibles for building and contents
  • Federal policy fee
  • Reserve Fund Assessment
  • A and B
  • All of the above
  • None of the above
5

Which of the following statements apply to low-rise buildings?

  • They must have less than five units, regardless of the number of floors, or five or more units with less than three floors.
  • They must have five or more units and at least three floors.
  • An enclosure below an elevated building cannot be counted as a floor, even if it is the lowest floor for rating purposes.
  • The basic limit rate is the first $60,000 worth of building coverage for each unit.
  • A and B
  • A and D
6

Which of the following statements are true about the RCBAP coinsurance clause?

  • It only applies to building coverage.
  • The building must be insured to at least 80% of the full replacement cost of the building at the time of loss or up to the maximum amount of insurance available under the NFIP.
  • Building coverage purchased under individual Dwelling Forms cannot be added to RCBAP coverage in order to avoid the co-insurance penalty.
  • All of the above
7

Which SFIP form has an Increased Cost of Compliance limit of $30,000?

  • Dwelling Form
  • General Property Form
  • RCBAP
  • All of the above
  • None of the above
8

Part of the Shubert Condominium complex includes a theater and concert hall building. Under what form should the policy for this building be written?

  • Dwelling Form
  • General Property Form
  • RCBAP
  • The structure could be written under any of these forms.
9

Which SFIP form has a coinsurance penalty?

  • Dwelling Form
  • General Property Form
  • RCBAP
  • The SFIP does not have a coinsurance penalty.
10

Under which SFIP form should a residential condominium building used as a hotel or motel, or being rented either short or long term be insured?

  • Dwelling Form
  • General Property Form
  • RCBAP
  • This is a trick question; hotels and motels cannot be insured under the SFIP.

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