Question

Who sets the rates and coverage rules for flood insurance policies, FEMA, or private insurance companies?

a) FEMA
b) Private insurance companies
c) Both FEMA and private insurance companies collaboratively
d) Local government agencies

Answer 1

FEMA and private insurance companies both play a role in setting rates and coverage rules for flood insurance policies in the United States.

Step-by-step explanation:

Flood insurance policies in the United States are regulated by a combination of FEMA (the Federal Emergency Management Agency) and private insurance companies. FEMA sets the rates and coverage rules for the National Flood Insurance Program (NFIP), which is a federal program that provides flood insurance to homeowners, renters, and businesses. Private insurance companies also offer flood insurance policies and set their own rates and coverage rules outside of the NFIP.