Property and Casualty Insurance Practice Exam

Which of the following is NOT included as a type of insurance offered by the federal government?

1. Workers Compensation

2. Nuclear Energy Liability Insurance

3. War Risk Insurance

4. Flood Insurance

The correct answer is: Workers Compensation

Workers’ compensation is primarily managed at the state level and is not offered directly by the federal government as a type of insurance. Each state has its own workers' compensation laws and systems in place, which means the administration, policies, and coverage can vary significantly from one state to another. In contrast, the other types of insurance listed are indeed offered by the federal government. For example, nuclear energy liability insurance provides coverage for nuclear facilities and is structured to protect the public from potential nuclear incidents. War risk insurance, which covers damages related to acts of war, is also available through federal programs in specific contexts. Flood insurance, particularly through the National Flood Insurance Program (NFIP), serves to protect homeowners and businesses in flood-prone areas, making it an essential federal program for disaster preparedness and recovery. Understanding the distinctions among these types of insurance highlights the unique role federal programs play in providing coverage for specific risks that may not be adequately handled by the private market.