Which program is an example of the government acting as exclusive insurer?

• A. Social security (federal)
• B. Federal crop insurance
• C. NFIP
• D. TRIA

Answer: (A)

Exclusive insurer means the government is the only entity providing or guaranteeing that line of coverage. Social Security is designed as the sole provider of retirement, disability, and survivors benefits, funded through payroll taxes, with private insurers not issuing Social Security benefits or competing for that protection. The other programs involve private-sector participation alongside government roles: federal crop insurance relies on private insurers selling policies with government subsidies and reinsurance; the NFIP uses private insurers to issue flood policies under a federal program; and TRIA provides a government backstop but leaves private insurers underwriting and issuing coverage. So Social Security best fits the idea of the government acting as the exclusive insurer.