ANFI 205: National Flood Insurance Fundamentals & Exam Drill

Vocabulary practice flashcards covering the ANFI 205 (Associate in National Flood Insurance) exam scenarios, regulatory rules, structural eligibility requirements, and core acronyms across Educational Objectives 1 through 28.

Write Your Own (WYO) Program

A cooperative program where private insurance companies issue and service Standard Flood Insurance Policies under their own names, while the federal government (FEMA) retains $100\%$ of the financial underwriting risk.

NFIP Community Probation

A formal $1\text{-year}$ warning status imposed on a community for non-compliance with NFIP floodplain management standards; flood policies remain valid, but a \n$50 surcharge is applied to all policies at renewal.

NFIP Community Suspension

A penalty status resulting from failure to adopt or enforce compliant floodplain ordinances; no new or renewal flood insurance policies may be issued, and federal disaster assistance is restricted within Special Flood Hazard Areas.

NFIP Building Eligibility Criteria

Minimum physical structural requirements to qualify for coverage: at least two outside rigid walls, a fully secured roof, affixed to a permanent site, and at least $51\%$ of the structure's Actual Cash Value (ACV) situated above ground level.

General Property Form

An SFIP form covering non-residential buildings and multi-family residential structures not meeting dwelling criteria (such as a 12-unit apartment building), providing up to \n$500,000 in building coverage settled strictly on an Actual Cash Value (ACV) basis.

Post-FIRM Revision Waiting Period

A modified $1\text{-day}$ waiting period applying to newly purchased coverage when an owner buys within the $13\text{-month}$ exception window following a FEMA FIRM revision that maps the property into an SFHA (e.g., Zone AE).

Increased Cost of Compliance (ICC / Coverage D)

Coverage providing up to \n$30,000 to help pay for elevation, floodproofing, relocation, or demolition of a substantially or repetitively flood-damaged structure to comply with local codes, provided total Building plus ICC payout does not exceed the statutory cap of \n$250,000.

HFIAA Surcharge

A mandatory annual policy surcharge established by the Homeowner Flood Insurance Affordability Act, set at \n$25 for primary residences and \n$250 for non-primary residential or non-residential (commercial) structures.

Newly Mapped Rating Eligibility Window

The requirement that a property owner must buy flood coverage within $12\text{ months}$ of the FIRM revision effective date for properties newly mapped into an SFHA on or after April 1, 2015, to qualify for preferred transitional rating.

Residential Condominium Building Association Policy (RCBAP)

A master policy form insuring residential condominium buildings where at least $75\%$ of the total floor area is residential, providing coverage up to \n$250,000 \times \text{units} (capped at the building's Replacement Cost Value).

RCBAP Statutory Coinsurance Exception

A rule stating that when an RCBAP is insured to the statutory cap (\n$250,000 \times \text{units}), the policyholder avoids the $80\%$ coinsurance penalty even if $80\%$ of the building's Replacement Cost Value exceeds that statutory maximum.

Provisional Rating

A temporary NFIP rating valid for $1\text{ year}$ that cannot be renewed on a provisional basis; complete rating information (such as a valid Elevation Certificate) must be submitted during that policy year.

Mid-Term Deductible Reduction Waiting Period

The mandatory $30\text{-day}$ waiting period required before a mid-term reduction in deductible takes effect (unless tied to a loan closing), because reducing a deductible increases NFIP risk exposure in the same manner as adding coverage.

NFIP Renewal Grace Period

A $30\text{-day}$ window following policy expiration during which premium payment can be received without a lapse in coverage or a new waiting period, maintaining continuous coverage from the expiration date.

NFIP Mid-Term Cancellation Restrictions

Policy conditions that prohibit mid-term cancellation simply due to expense; mid-term cancellation requires a valid NFIP-approved reason (such as sale/destruction of property, payoff of a mortgage when insurance was lender-required, or a LOMA removing lender mandate) plus mortgagee consent.

SFIP Statutory Definition of Flood

A general and temporary condition of partial or complete inundation of two or more acres of normally dry land OR two or more properties by overflow of inland or tidal waters, unusual and rapid accumulation of surface runoff, or mudflow.

Dwelling Form Detached Garage Extension

A coverage feature allowing up to $10\%$ of the Building limit to apply to an unfinished detached garage used exclusively for parking and storage; it is not additional insurance and reduces the total limit available for the main dwelling.

Basement Coverage Inclusions (SFIP)

The specific limited items covered inside a basement: essential building utilities (furnace, water heater, central AC, electrical panel, sump pump, unfinished drywall/insulation) and, under Contents, clothes washers, dryers, and food freezers.

General Property Form vs. Dwelling Form Differences

Three primary distinctions: 1) Losses are settled strictly at Actual Cash Value (no RCV); 2) No $10\%$ detached garage extension is provided; 3) The policy cannot be assigned to a property buyer at closing.

Compliant Ground-Level Enclosure (Lowest Floor Rule)

An enclosure located below an elevated building that is not rated as the lowest floor because it is unfinished, used solely for parking, building access, or storage, and equipped with compliant hydrostatic flood openings/vents (or breakaway walls in V-zones).

Otherwise Protected Area (OPA)

An undeveloped coastal area designated under CBRA where flood insurance coverage is unavailable for new construction unless the building is used in a manner consistent with the conservation purpose of the area (e.g., a park visitor center or ranger station).

Proof of Loss

A formal, sworn statement of flood damage that an insured must sign and submit within $60\text{ days}$ after the date of loss, unless the deadline is extended in writing by the Federal Insurance Administrator.

Community Rating System (CRS)

A voluntary incentive program under the NFIP Regular Program that awards premium discounts ranging from $5\%$ to $45\%$ (in $5\%$ increments from Class 9 down to Class 1) to communities whose floodplain management practices exceed minimum federal standards.

Flood Zone D

A flood zone designation indicating an unmapped area where FEMA has not conducted a flood hazard analysis and flood risks remain undetermined.

Letter of Map Amendment (LOMA)

An official FEMA document that amends an effective FIRM panel by removing a structure or parcel of land from an SFHA because the natural ground elevation is at or above the Base Flood Elevation.

Letter of Map Revision Based on Fill (LOMR-F)

An official FEMA document that removes a structure or property from an SFHA based on the fact that the building pad has been elevated above the Base Flood Elevation using engineered earthen fill.

Severe Repetitive Loss (SRL) Property

A building that has incurred either: 1) Four or more flood claims exceeding \n$5,000 each with a cumulative total over \n$20,000; OR 2) Two or more flood claims whose cumulative payout exceeds the fair market value of the building.

Standard Flood Insurance Policy (SFIP)

The federal policy contract issued under the National Flood Insurance Program in three standard forms: the Dwelling Form, the General Property Form, and the Residential Condominium Building Association Policy (RCBAP).

Replacement Cost Value (RCV)

A loss settlement basis providing the cost to repair or replace damaged property without deduction for depreciation; applies to single-family principal residences insured to at least $80\%$ of full replacement value and to RCBAP residential condominiums.

Actual Cash Value (ACV)

A loss settlement valuation calculated as Replacement Cost Value minus physical depreciation; applies to all contents coverage, non-principal residences, and all losses under the General Property Form.

Building Replacement Cost Value (BRCV)

The total cost to replace an insured structure in its entirety, utilized in rating the policy and determining compliance with the mandatory $80\%$ coinsurance requirement.

Special Flood Hazard Area (SFHA)

A designated high-risk flood area (including Zones A, AE, AO, AH, AR, A99, V, and VE) where mandatory flood insurance purchase requirements apply for loans backed by federal or federally regulated lenders.

Base Flood Elevation (BFE)

The computed elevation to which floodwaters are anticipated to rise during a base flood event (a flood having a $1\%$ annual chance of being equaled or exceeded in any given year, also called the 100-year flood).

Elevation Certificate (EC)

An official land-survey document that certifies a building's lowest floor elevation relative to the Base Flood Elevation and surrounding grade, and records flood opening, foundation, and building data.

Flood Hazard Boundary Map (FHBM)

The initial flood map issued to a community entering the NFIP Emergency Program that identifies flood-prone boundaries without establishing Base Flood Elevations.

Flood Insurance Rate Map (FIRM)

The official map of a community participating in the NFIP Regular Program that delineates both special flood hazard areas and risk premium zones applicable to the community.

Letter of Map Revision (LOMR)

An official FEMA determination that documents revisions to the flood zones, base flood elevations, or floodplain boundaries displayed on an active Flood Insurance Rate Map (FIRM) panel.

Coastal Barrier Resources Act (CBRA) & System (CBRS)

Federal legislation establishing designated undeveloped coastal barrier areas where federal financial assistance, including NFIP flood insurance, is legally prohibited for buildings constructed or substantially improved after the designation date.

Flood Mitigation Assistance (FMA)

A federal grant program funded through the NFIP that provides assistance to communities and policyholders to implement measures reducing or eliminating long-term flood damage risks for repetitive loss and Severe Repetitive Loss properties.