American Institute of Certified Planners (AICP) Practice Exam

Which federal agency is primarily responsible for the administration of the National Flood Insurance Program?

1. Department of Housing and Urban Development

2. Federal Emergency Management Agency

3. Environmental Protection Agency

4. Department of Transportation

The correct answer is: Federal Emergency Management Agency

The Federal Emergency Management Agency (FEMA) is specifically designated as the agency responsible for the management of the National Flood Insurance Program (NFIP). FEMA oversees the program to provide flood insurance to property owners, helping to mitigate the impact of flooding, which is a common risk in many areas across the United States. FEMA’s role includes administering flood insurance policies, promoting floodplain management practices, and conducting community outreach to increase awareness of flood risks and encourage participation in the program. The NFIP not only aims to provide financial flood insurance protection to homeowners but also seeks to reduce the vulnerability of communities to flood hazards through compliance with federally mandated land use regulations and local planning strategies. While other agencies such as the Department of Housing and Urban Development and the Environmental Protection Agency deal with housing and environmental concerns, respectively, they do not have the direct responsibility for managing the flood insurance program, which is distinctly led by FEMA. The Department of Transportation, although involved in infrastructure and transportation emergency response, does not oversee flood insurance issues.