CMCA EXAM 2025 NEWEST ACTUAL EXAM COMPLETE 257 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)||ALREADY
GRADED A+ (NEW BRAND)
Aggregate -CORRECT ANSWERa maximum amount an insurer will reimburse a policyholder
for all covered losses during a set time period, usually one year.
Risk Management -CORRECT ANSWERIdentifying, assessing, responding to risk by
reducing, removing, and insuring threats
Risk Inventory -CORRECT ANSWERContacts, resources, areas to inspect & keep record of
Immediate exposers to risk -CORRECT ANSWERSevere weather, deficiencies, negligence
Speed of Response -CORRECT ANSWERAuthorization, information, money, equipment,
personnel, schedule
Types of Exposure -CORRECT ANSWERProperty, Net Income, Liability, Personnel
Property Exposures -CORRECT ANSWERphysical damages to property
Net Income exposures -CORRECT ANSWERUnexpected increase in cost/money
Personnel Exposures -CORRECT ANSWERdeath, retirement, resignation
,Liability Exposures -CORRECT ANSWER3rd party claims against association. (worker injured
and suing ex)
Liability Insurance Coverages -CORRECT ANSWERBodily injury, property damage, personnel
injury (said/did), advertising injury (written/published)
D&O Insurance -CORRECT ANSWERWrongful acts by association/board, negligence,
omission, monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility -CORRECT ANSWERIdentify, review,
monitor risk, inform Board, oversee insurance.
Insurance Agent -CORRECT ANSWERsells insurance, works for single carrier
Insurance broker -CORRECT ANSWERSells insurance, works with multiple carriers
Loss Frequency -CORRECT ANSWERNumber of times loss may occur
Loss Severity -CORRECT ANSWERexpected $ loss from event.
Risk Control -CORRECT ANSWERreduce or eliminate exposure
Risk Financing -CORRECT ANSWEROptions to cover $ of loss
Exposure avoidance -CORRECT ANSWEReliminating chance of loss
Loss Prevention -CORRECT ANSWERreducing likelihood of loss (training, inspections)
, Loss Reduction -CORRECT ANSWERreducing severity of loss (fire sprinkler)
Contractual Transfer -CORRECT ANSWERshift loss from association to other (ex. vendor,
insurance)
Risk Retention -CORRECT ANSWERassociation finds way to pay for losses
Risk Transfer -CORRECT ANSWERassociation finds way to transfer responsibility to another
party
Funding to pay for losses: Current expensing -CORRECT ANSWERshifting cost from one GL
to another
Funding to pay for losses: Funded Reserve -CORRECT ANSWERpull from reserves to cover
cost
Funding to pay for losses: Unfunded expense. -CORRECT ANSWERSpecial assessment to
cover cost
Funding to pay for losses: Borrowing -CORRECT ANSWERTaking out a loan/credit to cover
expense
Decision Matrix: Risk Retention -CORRECT ANSWERLow frequency, low severity
Decision Matrix: Risk Transfer -CORRECT ANSWERLow frequency, High severity
Decision Matrix: Risk Control -CORRECT ANSWERHigh frequency, low severity
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)||ALREADY
GRADED A+ (NEW BRAND)
Aggregate -CORRECT ANSWERa maximum amount an insurer will reimburse a policyholder
for all covered losses during a set time period, usually one year.
Risk Management -CORRECT ANSWERIdentifying, assessing, responding to risk by
reducing, removing, and insuring threats
Risk Inventory -CORRECT ANSWERContacts, resources, areas to inspect & keep record of
Immediate exposers to risk -CORRECT ANSWERSevere weather, deficiencies, negligence
Speed of Response -CORRECT ANSWERAuthorization, information, money, equipment,
personnel, schedule
Types of Exposure -CORRECT ANSWERProperty, Net Income, Liability, Personnel
Property Exposures -CORRECT ANSWERphysical damages to property
Net Income exposures -CORRECT ANSWERUnexpected increase in cost/money
Personnel Exposures -CORRECT ANSWERdeath, retirement, resignation
,Liability Exposures -CORRECT ANSWER3rd party claims against association. (worker injured
and suing ex)
Liability Insurance Coverages -CORRECT ANSWERBodily injury, property damage, personnel
injury (said/did), advertising injury (written/published)
D&O Insurance -CORRECT ANSWERWrongful acts by association/board, negligence,
omission, monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility -CORRECT ANSWERIdentify, review,
monitor risk, inform Board, oversee insurance.
Insurance Agent -CORRECT ANSWERsells insurance, works for single carrier
Insurance broker -CORRECT ANSWERSells insurance, works with multiple carriers
Loss Frequency -CORRECT ANSWERNumber of times loss may occur
Loss Severity -CORRECT ANSWERexpected $ loss from event.
Risk Control -CORRECT ANSWERreduce or eliminate exposure
Risk Financing -CORRECT ANSWEROptions to cover $ of loss
Exposure avoidance -CORRECT ANSWEReliminating chance of loss
Loss Prevention -CORRECT ANSWERreducing likelihood of loss (training, inspections)
, Loss Reduction -CORRECT ANSWERreducing severity of loss (fire sprinkler)
Contractual Transfer -CORRECT ANSWERshift loss from association to other (ex. vendor,
insurance)
Risk Retention -CORRECT ANSWERassociation finds way to pay for losses
Risk Transfer -CORRECT ANSWERassociation finds way to transfer responsibility to another
party
Funding to pay for losses: Current expensing -CORRECT ANSWERshifting cost from one GL
to another
Funding to pay for losses: Funded Reserve -CORRECT ANSWERpull from reserves to cover
cost
Funding to pay for losses: Unfunded expense. -CORRECT ANSWERSpecial assessment to
cover cost
Funding to pay for losses: Borrowing -CORRECT ANSWERTaking out a loan/credit to cover
expense
Decision Matrix: Risk Retention -CORRECT ANSWERLow frequency, low severity
Decision Matrix: Risk Transfer -CORRECT ANSWERLow frequency, High severity
Decision Matrix: Risk Control -CORRECT ANSWERHigh frequency, low severity
