CMCA- Risk Management UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Actual cash value (ACV) - CORRECT ANSWER The depreciated value of an item.
Advertising injury - CORRECT ANSWER Provisions in CGL (comprehensive general
liability) include language providing coverage to the community association with respect to
damages resulting in "misappropriation of advertising ideas or style of doing business" or
"infringement of copyright, slogan or title."
Agreed amount endorsement - CORRECT ANSWER Provides for an agreed upon limit of
property insurance.
Coinsurance - CORRECT ANSWER A standard element in most property policies that
obligates the insured to maintain certain limit of property insurance based on a stated percentage.
Common declarations - CORRECT ANSWER This section of the policy is like the title page
of a book. It typically includes such information as the name and address of the insured and the
period of coverage.
Common policy conditions - CORRECT ANSWER These are the basic provisions that apply
to all insurance coverages in the package. For example, when to file proof of a loss or what
happens when a premium is not paid.
Contingent liability - CORRECT ANSWER Covers the value of any undamaged portion of a
building which may have to be replaced because of building laws.
Contractual transfers - CORRECT ANSWER This involves entering into a contract that will,
among other things, transfer the community association's legal responsibility for any loss.
ACTUAL Exam Questions and CORRECT
Answers
Actual cash value (ACV) - CORRECT ANSWER The depreciated value of an item.
Advertising injury - CORRECT ANSWER Provisions in CGL (comprehensive general
liability) include language providing coverage to the community association with respect to
damages resulting in "misappropriation of advertising ideas or style of doing business" or
"infringement of copyright, slogan or title."
Agreed amount endorsement - CORRECT ANSWER Provides for an agreed upon limit of
property insurance.
Coinsurance - CORRECT ANSWER A standard element in most property policies that
obligates the insured to maintain certain limit of property insurance based on a stated percentage.
Common declarations - CORRECT ANSWER This section of the policy is like the title page
of a book. It typically includes such information as the name and address of the insured and the
period of coverage.
Common policy conditions - CORRECT ANSWER These are the basic provisions that apply
to all insurance coverages in the package. For example, when to file proof of a loss or what
happens when a premium is not paid.
Contingent liability - CORRECT ANSWER Covers the value of any undamaged portion of a
building which may have to be replaced because of building laws.
Contractual transfers - CORRECT ANSWER This involves entering into a contract that will,
among other things, transfer the community association's legal responsibility for any loss.
