Certified Floodplain Manager (CFM) Practice Exam

What did the National Flood Insurance Act of 1968 authorize?

1. The construction of flood defenses across the USA.

2. A national program providing flood insurance through Federal and private collaboration.

3. Mandatory flood insurance for all coastal properties.

4. The establishment of FEMA.

The correct answer is: A national program providing flood insurance through Federal and private collaboration.

The National Flood Insurance Act of 1968 was significant in establishing a national program that provided flood insurance to property owners, renters, and businesses. This program was developed to address the challenges posed by flooding, particularly since many individuals and businesses were unable to secure insurance coverage for flood losses through conventional insurance means. The Act facilitated collaboration between the federal government and private insurers, allowing for the creation of a more accessible and standardized flood insurance offering. This program was pivotal in increasing public awareness of flood risks and encouraging community-level floodplain management initiatives. It also laid the groundwork for subsequent initiatives, including the National Flood Insurance Program (NFIP), which provided financial assistance and a framework for floodplain management to reduce the impact of future flood events. Other options relate to important aspects of flood management and disaster response but do not accurately capture the authorization provided by the National Flood Insurance Act of 1968. The primary focus of that Act was to create the flood insurance program, making option B the correct choice.