CAS Exam 6C Fall 2016, Question 8

Study guide: Exam 6C

Overland flood coverage has only recently been optionally offered to consumers by several private insurance companies in Canada.

Part a (1.5 points)

Describe three reasons for the historical limited availability of flood insurance in Canada.

Part b (0.5 points)

Explain one precondition that is essential to establishing a strong flood risk management culture which is not included within your response to part a. above.

Part c (0.5 points)

Explain why government involvement in a national flood program may still be needed to supplement the flood coverage offerings from private insurers.

Part d (1 point)

Flood coverage for personal property has typically not been offered by private insurers in Canada. Describe two reasons why insurers have historically paid for a large portion of these losses.

Answer this question and see the worked solution

Concepts tested

• Flood Insurance
• Government and Industry Insurance Programs
• Adverse Selection
• Disaster Financial Assistance Arrangements

More questions from this set

• CAS Exam 6C Fall 2016, Question 7
• CAS Exam 6C Fall 2016, Question 9