CAM FLORIDA EXAM QUESTIONS ACCURATE AND VERIFIED ACTUAL EXAM QUESTIONS WITH DETAILED ANSWERS FOR GUARANTEED PASS | ALREADY GRADED A

1. Who is responsible for insuring appliances inside a unit? A. The condominium association B. The property manager C. The unit owner D. The board of directors Rationale: Appliances inside a unit are the responsibility of the unit owner to insure, not the association. 2. The replacement cost of insured property must be determined every: A. 12 months B. 24 months C. 36 months D. 60 months Rationale: Insurance regulations typically require property replacement cost evaluations every 36 months. 3. Who is responsible for protecting the condominium association’s assets through insurance? A. The property manager B. The insurance company C. The unit owners D. The board of directors Rationale: The board of directors holds the fiduciary responsibility to insure and protect the association's assets. 4. Which type of insurance protects board members from claims of breach of duty? A. General liability insurance B. Property insurance C. Directors' and officers' liability insurance D. Fidelity bond Rationale: D&O insurance protects against claims involving breach of fiduciary duties by board members. 5. Insurance provides a guarantee of compensation in exchange for: A. A deductible B. A premium C. A claim D. An endorsement Rationale: A premium is the payment made by the insured in exchange for insurance coverage. 6. In an HOA, the fidelity bond must cover: A. Board member salaries B. All insurance deductibles C. The average annual expenses D. The maximum funds in custody at any time Rationale: Fidelity bonds must cover the maximum amount of association funds handled. 7. Who should ideally be included in a D&O liability policy, in addition to directors and officers? A. Insurance agent B. Maintenance staff C. Community association manager D. Unit owners Rationale: Including the community association manager helps extend coverage for administrative decision-makers. 8. A D&O liability insurance policy should cover: A. Only current officers B. Future directors C. Former and current officers and directors D. Only elected board members Rationale: Coverage typically includes both former and current directors and officers for full protection. 9. If an association cannot find windstorm insurance on the private market, it should: A. Skip coverage B. Insure only common areas C. Raise funds for self-insurance D. Check eligibility for CPIC Rationale: Citizens Property Insurance Corporation (CPIC) is a state-run insurer of last resort in Florida. 10. Which liability insurance offers permanent coverage for incidents that occurred during the policy period? A. Claims-made B. Occurrence C. Term-based D. Comprehensive Rationale: Occurrence policies cover incidents that happen during the coverage period, even if claims are filed later. 11. What is the dollar amount paid before insurance coverage kicks in? A. Premium B. Bond C. Deductible D. Endorsement Rationale: The deductible is the insured's out-of-pocket responsibility before the insurer pays. 12. Which is NOT a factor in selecting an association's insurance program? A. Property location B. Risk exposure C. Which unit owners carry individual insurance D. Policy limits Rationale: The insurance coverage of individual unit owners is not relevant to the association’s comprehensive program. 13. If a cooperative has $25,000 in its account, how much must the treasurer be bonded for? A. $10,000 B. $25,000 C. $50,000 D. $5,000 Rationale: The fidelity bond must cover the maximum amount held in the association’s accounts. 14. What insurance protects cooperative board members in performing governance duties? A. Property insurance B. Fidelity bond C. Directors’ and Officers’ liability insurance D. Fire and casualty insurance Rationale: D&O insurance protects board members against lawsuits related to governance actions. 15. Who is typically exempt from the cooperative’s fidelity bonding requirement? A. President B. Secretary C. On-site maintenance supervisor D. Treasurer Rationale: Maintenance staff who do not handle money are usually exempt from bonding requirements. 16. What policy covers tree damage from a lightning strike in a cooperative property? A. Unit owner’s insurance B. Fire and casualty insurance C. Auto insurance D. Flood insurance Rationale: Fire and casualty insurance covers damage from natural events like lightning. 17. Insurance policy prices vary mainly because of: A. The policyholder’s age B. Size of the property C. Deductibles chosen D. Number of board members Rationale: Higher deductibles often result in lower premiums, and vice versa. 18. The first step when acquiring insurance for an association should be: A. Comparing insurers B. Reviewing state law C. Identifying loss exposures