You're working with a buyer who wants to make an offer on a house. You check the Flood Insurance Rate Maps and see that the property is located in a V Zone. What should you tell the buyer? This coastal property is not considered a high- risk category on the FIRM maps, so insurance is not required. The property is in a special flood hazard area, and flood insurance will be required if the buyer intends to use a federally insured or regulated lender. The property is in a 100-year flood plain, so flood insurance is encouraged but not required by lenders. The property is considered to be very valuable and is likely to increase in value in the near future.

You're working with a buyer who wants to make an offer on a house. You check the Flood Insurance Rate Maps and see that the property is located in a V Zone. What should you tell the buyer? This coastal property is not considered a high- risk category on the FIRM maps, so insurance is not required. The property is in a special flood hazard area, and flood insurance will be required if the buyer intends to use a federally insured or regulated lender. The property is in a 100-year flood plain, so flood insurance is encouraged but not required by lenders. The property is considered to be very valuable and is likely to increase in value in the near future.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

help
why and how can guaranteed issue (cannot be denied insurance due to pre-existing conditions)
Indicate whether the statement is true or false, and justify your answer.Whether a prospect is coded as a gain or as a loss can depend on how that prospect is framed.
All of the following are considerations in risk assessment for framing health policies, except a. Does the outcome vary with degree of exposure, such as higher levels of exposure being more strongly associated with the outcome? b. Which groups are the most exposed to the factor(s) under consideration, and in what maginitude and frequency? c. Will an industry incur loss or see a narrowing of their profit margins if regulations to mitigate adverse health impacts of an associated product are implemented? d. What is the quality of evidence regarding strength of association between a potentially harmful exposure and an outcome?
Which item of personal property is not excluded under Coverage C of the Dwelling Program? A: Credit card or fund transfer card loss in any amount when stolen. B: Manuscripts. C: Animals, birds or fish owned by the insured. D: Mausoleums owned by the insured.
Since a risk is something that has yet to happen--and may never happen--how much time and effort should be spent planning and preparing for it?
As a salesperson for a large Montreal-based robotics company. you have entered into a very complex negotiation with a major machinery manufacturer. The deal is worth millions to your company. You've been sitting across the desk from a very hard-nosed purchasing manager for days now. You discover that the purchasing manager is just months away from retirement and this will probably be his last major purchase before retirement. During one of your meetings, the prospect tells you about his impending retirement and without coming out and directly asking, he makes some subtle overtures regarding what it will take to get the deal done. He strongly hints that if you would make it worth his while personally, he would arrange to get the deal done. Your guess is that he is looking for a way to supplement his retirement. Perhaps a personal cash payout or a small cottage in the country would suffice. You figure it would cost your company approximately $150 000 to get the deal done. Explain what do…
who are potential customers for insurance?
A category of economic risk is: Liability risk Personal risk Property Risk All of the answers are correct None of the answers are correct
A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance weather pure parametric aggregate loss index parametric index
Effective risk management would attempt to maximize the expected return for a given level of risk. Select one: True False
A property sold for 180% of what the vendors originally paid for it. What was that original price if the recent selling price was $810,000 ?