CMCA Exam
Aggregate correct answersa maximum amount an insurer will reimburse a
policyholder for all covered losses during a set time period, usually one
year.
Risk Management correct answersIdentifying, assessing, responding
to risk by reducing, removing, and insuring threats
Risk Inventory correct answersContacts, resources, areas to inspect & keep
record of Immediate exposers to risk correct answersSevere weather,
deficiencies, negligence
Speed of Response correct answersAuthorization, information, money,
equipment, personnel, schedule
Types of Exposure correct answersProperty, Net Income, Liability,
Personnel Property Exposures correct answersphysical damages to
property
Net Income exposures correct answersUnexpected increase in
cost/money Personnel Exposures correct answersdeath,
retirement, resignation
Liability Exposures correct answers3rd party claims against association.
(worker injured and suing ex)
Liability Insurance Coverages correct answersBodily injury, property damage,
personnel injury (said/did), advertising injury (written/published)
D&O Insurance correct answersWrongful acts by association/board,
negligence, omission, monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility correct answersIdentify,
review, monitor risk, inform Board, oversee insurance.
Insurance Agent correct answerssells insurance, works for single
carrier Insurance broker correct answersSells insurance, works with
multiple carriers Loss Frequency correct answersNumber of times
loss may occur
,Loss Severity correct answersexpected $ loss from event.
Risk Control correct answersreduce or eliminate exposure
Risk Financing correct answersOptions to cover $ of
loss Exposure avoidance correct answerseliminating
chance of loss
Loss Prevention correct answersreducing likelihood of loss (training,
inspections) Loss Reduction correct answersreducing severity of loss
(fire sprinkler)
Contractual Transfer correct answersshift loss from association to other
(ex. vendor, insurance)
Risk Retention correct answersassociation finds way to pay for losses
Risk Transfer correct answersassociation finds way to transfer responsibility
to another party
Funding to pay for losses: Current expensing correct answersshifting cost
from one GL to another
Funding to pay for losses: Funded Reserve correct answerspull from
reserves to cover cost
Funding to pay for losses: Unfunded expense. correct answersSpecial
assessment to cover cost
Funding to pay for losses: Borrowing correct answersTaking out a
loan/credit to cover expense
Decision Matrix: Risk Retention correct answersLow frequency, low severity
Decision Matrix: Risk Transfer correct answersLow frequency, High
severity Decision Matrix: Risk Control correct answersHigh
frequency, low severity Decision Matrix: Combination correct
answersHigh frequency, High severity
Screening Bidders for Insurance correct answersPolicies tailored to your
needs, HOA experience, carrier ratings.
RFP Components for Insurance correct answersIntro, contacts,
instruction/timing for submission, bid specs, fact sheet HOA, Gov Docs,
Loss runs.
, RFP correct answersprimarily for large projects, bid specs, inform on
association, work conditions, surveys/outline job, dates, warranty reqs
BBB correct answersBetter Business Bureau
RFP Contract provisions correct answers-parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.
Loss Run correct answersHistory of claims on insurance policy
Insurance proposal: Binding correct answerscarrier gives agent authority to
commit to insuring once association accepts.
Insurance proposal: Firm correct answersnumbers wont change unless
specifications change
Insurance proposal: Conditional correct answersall must be declared
first Insurance Premium Calculation: Property correct answersValue of
building x Rate
Insurance Premium Calculation: Commercial Gen Liability correct
answers# of units x rate + features
Insurance Premium Calculation: Workers Comp correct answersPayroll x
rate (not fixed)
Property Coverage correct answersfidelity, environmental, flood,
vehicle Liability Coverage correct answersgeneral, D&O, umbrella,
(vehicle non-owned)
Personnel Coverage correct answersWorker comp, employment
liability
Fidelity correct answersto protect the association and property owners
from financial fraud committed by the individuals who handle money for
the association.
Net Income Coverage correct answersMoney
Workers Comp correct answersprotects volunteers, board, association
(even if
*workers* not present)
Blanket Coverage correct answersIncludes all oversights of other
coverages
Aggregate correct answersa maximum amount an insurer will reimburse a
policyholder for all covered losses during a set time period, usually one
year.
Risk Management correct answersIdentifying, assessing, responding
to risk by reducing, removing, and insuring threats
Risk Inventory correct answersContacts, resources, areas to inspect & keep
record of Immediate exposers to risk correct answersSevere weather,
deficiencies, negligence
Speed of Response correct answersAuthorization, information, money,
equipment, personnel, schedule
Types of Exposure correct answersProperty, Net Income, Liability,
Personnel Property Exposures correct answersphysical damages to
property
Net Income exposures correct answersUnexpected increase in
cost/money Personnel Exposures correct answersdeath,
retirement, resignation
Liability Exposures correct answers3rd party claims against association.
(worker injured and suing ex)
Liability Insurance Coverages correct answersBodily injury, property damage,
personnel injury (said/did), advertising injury (written/published)
D&O Insurance correct answersWrongful acts by association/board,
negligence, omission, monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility correct answersIdentify,
review, monitor risk, inform Board, oversee insurance.
Insurance Agent correct answerssells insurance, works for single
carrier Insurance broker correct answersSells insurance, works with
multiple carriers Loss Frequency correct answersNumber of times
loss may occur
,Loss Severity correct answersexpected $ loss from event.
Risk Control correct answersreduce or eliminate exposure
Risk Financing correct answersOptions to cover $ of
loss Exposure avoidance correct answerseliminating
chance of loss
Loss Prevention correct answersreducing likelihood of loss (training,
inspections) Loss Reduction correct answersreducing severity of loss
(fire sprinkler)
Contractual Transfer correct answersshift loss from association to other
(ex. vendor, insurance)
Risk Retention correct answersassociation finds way to pay for losses
Risk Transfer correct answersassociation finds way to transfer responsibility
to another party
Funding to pay for losses: Current expensing correct answersshifting cost
from one GL to another
Funding to pay for losses: Funded Reserve correct answerspull from
reserves to cover cost
Funding to pay for losses: Unfunded expense. correct answersSpecial
assessment to cover cost
Funding to pay for losses: Borrowing correct answersTaking out a
loan/credit to cover expense
Decision Matrix: Risk Retention correct answersLow frequency, low severity
Decision Matrix: Risk Transfer correct answersLow frequency, High
severity Decision Matrix: Risk Control correct answersHigh
frequency, low severity Decision Matrix: Combination correct
answersHigh frequency, High severity
Screening Bidders for Insurance correct answersPolicies tailored to your
needs, HOA experience, carrier ratings.
RFP Components for Insurance correct answersIntro, contacts,
instruction/timing for submission, bid specs, fact sheet HOA, Gov Docs,
Loss runs.
, RFP correct answersprimarily for large projects, bid specs, inform on
association, work conditions, surveys/outline job, dates, warranty reqs
BBB correct answersBetter Business Bureau
RFP Contract provisions correct answers-parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.
Loss Run correct answersHistory of claims on insurance policy
Insurance proposal: Binding correct answerscarrier gives agent authority to
commit to insuring once association accepts.
Insurance proposal: Firm correct answersnumbers wont change unless
specifications change
Insurance proposal: Conditional correct answersall must be declared
first Insurance Premium Calculation: Property correct answersValue of
building x Rate
Insurance Premium Calculation: Commercial Gen Liability correct
answers# of units x rate + features
Insurance Premium Calculation: Workers Comp correct answersPayroll x
rate (not fixed)
Property Coverage correct answersfidelity, environmental, flood,
vehicle Liability Coverage correct answersgeneral, D&O, umbrella,
(vehicle non-owned)
Personnel Coverage correct answersWorker comp, employment
liability
Fidelity correct answersto protect the association and property owners
from financial fraud committed by the individuals who handle money for
the association.
Net Income Coverage correct answersMoney
Workers Comp correct answersprotects volunteers, board, association
(even if
*workers* not present)
Blanket Coverage correct answersIncludes all oversights of other
coverages
