FLORIDA CAM LICENSE PRACTICE EXAM 2 Versions
Actual 200 Questions with Answers & Explanations
| instant pdf download
1. Which Florida statute primarily governs community association managers?
A) Chapter 607, Florida Statutes
B) Chapter 718, Florida Statutes
C) Chapter 468, Part VIII, Florida Statutes
D) Chapter 720, Florida Statutes
Answer: C
Rationale: Florida Statute Chapter 468, Part VIII, specifically regulates the
licensing and professional responsibilities of Community Association Managers.
2. The primary role of a Community Association Manager (CAM) is to:
A) Create association policies independently
B) Enforce criminal laws within the community
C) Implement board decisions and manage daily operations
D) Replace board members when necessary
Answer: C
Rationale: CAMs carry out the policies established by the board and oversee day-
to-day association management, including maintenance coordination and
administrative tasks.
3. Which of the following is considered a fiduciary duty of a CAM?
A) Acting in self-interest to maximize personal gain
B) Maintaining confidentiality and loyalty to the association
C) Ignoring board directives when inconvenient
D) Representing competing associations without disclosure
,Answer: B
Rationale: A CAM owes fiduciary duties such as loyalty, confidentiality, and care
to the association. Acting in self-interest or ignoring board directives would
violate these duties.
4. A CAM receives funds belonging to the association. How must these funds be
handled?
A) Deposited into the CAM's personal account
B) Used immediately for any association expense
C) Held in a properly designated trust account
D) Converted into cash for convenience
Answer: C
Rationale: Association funds must be placed in a segregated trust account to
prevent commingling with personal or other funds.
5. Which action would most likely be considered commingling?
A) Depositing association funds into a trust account
B) Separating client funds from personal funds
C) Mixing association funds with the manager's personal funds
D) Maintaining separate bank accounts for different associations
Answer: C
Rationale: Commingling occurs when association funds are mixed with personal
funds. This is a serious ethical and legal violation.
6. Which insurance typically covers association board members against wrongful
acts?
A) Flood insurance
B) Fidelity bond
C) Directors and Officers (D&O) insurance
D) Auto insurance
,Answer: C
Rationale: D&O insurance protects board members from liability claims related to
their decisions and actions on behalf of the association.
7. A reserve fund is primarily used for:
A) Daily operating expenses
B) Long-term capital repairs and replacements
C) Employee bonuses
D) Marketing campaigns
Answer: B
Rationale: Reserve funds are designated for long-term repairs and replacements,
such as roofs, paving, and other major capital expenditures.
8. Which governing document generally outlines meeting procedures and voting
requirements?
A) Articles of Incorporation
B) Bylaws
C) Budget Report
D) Reserve Study
Answer: B
Rationale: Bylaws establish governance procedures, including how meetings are
conducted, elections are held, and voting requirements are set.
9. The association budget should be prepared:
A) Once every five years
B) Annually
C) Only when assessments increase
D) Every two years
, Answer: B
Rationale: Associations typically adopt an annual operating budget. Florida
statutes require budgeting for both operational costs and reserves.
10. Conflict of interest disclosures are important because they:
A) Reduce maintenance costs
B) Promote transparency and ethical governance
C) Increase reserve funding
D) Eliminate board meetings
Answer: B
Rationale: Disclosing conflicts of interest promotes transparency and ethical
governance. Florida law and ethical guidelines require full disclosure to protect
association integrity.
11. A CAM must complete continuing education to:
A) Maintain insurance coverage
B) Renew licensure
C) Avoid property taxes
D) Obtain real estate appraisal rights
Answer: B
Rationale: Florida CAMs must complete continuing education as a requirement
for license renewal with the DBPR.
12. The purpose of association bylaws is to:
A) Regulate federal taxation
B) Outline internal governance procedures
C) Replace state law
D) Set mortgage rates
Actual 200 Questions with Answers & Explanations
| instant pdf download
1. Which Florida statute primarily governs community association managers?
A) Chapter 607, Florida Statutes
B) Chapter 718, Florida Statutes
C) Chapter 468, Part VIII, Florida Statutes
D) Chapter 720, Florida Statutes
Answer: C
Rationale: Florida Statute Chapter 468, Part VIII, specifically regulates the
licensing and professional responsibilities of Community Association Managers.
2. The primary role of a Community Association Manager (CAM) is to:
A) Create association policies independently
B) Enforce criminal laws within the community
C) Implement board decisions and manage daily operations
D) Replace board members when necessary
Answer: C
Rationale: CAMs carry out the policies established by the board and oversee day-
to-day association management, including maintenance coordination and
administrative tasks.
3. Which of the following is considered a fiduciary duty of a CAM?
A) Acting in self-interest to maximize personal gain
B) Maintaining confidentiality and loyalty to the association
C) Ignoring board directives when inconvenient
D) Representing competing associations without disclosure
,Answer: B
Rationale: A CAM owes fiduciary duties such as loyalty, confidentiality, and care
to the association. Acting in self-interest or ignoring board directives would
violate these duties.
4. A CAM receives funds belonging to the association. How must these funds be
handled?
A) Deposited into the CAM's personal account
B) Used immediately for any association expense
C) Held in a properly designated trust account
D) Converted into cash for convenience
Answer: C
Rationale: Association funds must be placed in a segregated trust account to
prevent commingling with personal or other funds.
5. Which action would most likely be considered commingling?
A) Depositing association funds into a trust account
B) Separating client funds from personal funds
C) Mixing association funds with the manager's personal funds
D) Maintaining separate bank accounts for different associations
Answer: C
Rationale: Commingling occurs when association funds are mixed with personal
funds. This is a serious ethical and legal violation.
6. Which insurance typically covers association board members against wrongful
acts?
A) Flood insurance
B) Fidelity bond
C) Directors and Officers (D&O) insurance
D) Auto insurance
,Answer: C
Rationale: D&O insurance protects board members from liability claims related to
their decisions and actions on behalf of the association.
7. A reserve fund is primarily used for:
A) Daily operating expenses
B) Long-term capital repairs and replacements
C) Employee bonuses
D) Marketing campaigns
Answer: B
Rationale: Reserve funds are designated for long-term repairs and replacements,
such as roofs, paving, and other major capital expenditures.
8. Which governing document generally outlines meeting procedures and voting
requirements?
A) Articles of Incorporation
B) Bylaws
C) Budget Report
D) Reserve Study
Answer: B
Rationale: Bylaws establish governance procedures, including how meetings are
conducted, elections are held, and voting requirements are set.
9. The association budget should be prepared:
A) Once every five years
B) Annually
C) Only when assessments increase
D) Every two years
, Answer: B
Rationale: Associations typically adopt an annual operating budget. Florida
statutes require budgeting for both operational costs and reserves.
10. Conflict of interest disclosures are important because they:
A) Reduce maintenance costs
B) Promote transparency and ethical governance
C) Increase reserve funding
D) Eliminate board meetings
Answer: B
Rationale: Disclosing conflicts of interest promotes transparency and ethical
governance. Florida law and ethical guidelines require full disclosure to protect
association integrity.
11. A CAM must complete continuing education to:
A) Maintain insurance coverage
B) Renew licensure
C) Avoid property taxes
D) Obtain real estate appraisal rights
Answer: B
Rationale: Florida CAMs must complete continuing education as a requirement
for license renewal with the DBPR.
12. The purpose of association bylaws is to:
A) Regulate federal taxation
B) Outline internal governance procedures
C) Replace state law
D) Set mortgage rates
