Property and Casualty Insurance Practice Exam

Which of the following is an example of insurance provided by the federal government?

1. Life Insurance

2. Flood Insurance

3. Workers Compensation

4. Unemployment Insurance

The correct answer is: Flood Insurance

The correct answer is flood insurance, which is an example of insurance provided by the federal government through the National Flood Insurance Program (NFIP). This program was established to help reduce the financial impact of flooding on individuals and communities, especially in areas with a high risk of flood occurrences. By offering flood insurance, the federal government aims to encourage land use planning and floodplain management, making it easier for homeowners and businesses to protect their properties against flood damage. Life insurance, workers compensation, and unemployment insurance are generally provided by private insurance companies or state-mandated government programs but are not typically categorized as federal government insurance like flood insurance. Life insurance is mainly offered by private insurers, while workers compensation varies by state regulations and is not federally mandated. Unemployment insurance exists at both federal and state levels, but it is primarily administered and funded by state governments, meaning it does not fall under the same federal insurance framework as the NFIP.