Question

XYZ Insurance is a private insurer that sells flood insurance policies. Which of the following statements is FALSE?

A. XYZ Insurance is responsible for adjusting all flood claims made by its policyholders.
B. XYZ Insurance is responsible for paying claims.
C. XYZ Insurance receives expense allowances from the federal government.
D. XYZ Insurance participates in the NFIP Direct Program.

Answer 1

XYZ Insurance is responsible for adjusting all flood claims made by its policyholders and for paying claims.

Step-by-step explanation:

The false statement is option C. XYZ Insurance does not receive expense allowances from the federal government.

XYZ Insurance is a private insurer that sells flood insurance policies. They are responsible for adjusting all flood claims made by their policyholders and for paying claims. However, they do not receive expense allowances from the federal government.

XYZ Insurance may participate in the NFIP Direct Program, which is a partnership between private insurers and the National Flood Insurance Program (NFIP). This program allows private insurers like XYZ Insurance to issue and service flood insurance policies on behalf of the NFIP.