CMCA Final EXAM
Aggregate - ANS-a maximum amount an insurer will reimburse a policyholder for all
covered losses during a set time period, usually one year.
Risk Management - ANS-Identifying, assessing, responding to risk by reducing,
removing, and insuring threats
Risk Inventory - ANS-Contacts, resources, areas to inspect & keep record of
Immediate exposers to risk - ANS-Severe weather, deficiencies, negligence
Speed of Response - ANS-Authorization, information, money, equipment, personnel,
schedule
Types of Exposure - ANS-Property, Net Income, Liability, Personnel
Property Exposures - ANS-physical damages to property
Net Income exposures - ANS-Unexpected increase in cost/money
Personnel Exposures - ANS-death, retirement, resignation
Liability Exposures - ANS-3rd party claims against association. (worker injured and
suing ex)
Liability Insurance Coverages - ANS-Bodily injury, property damage, personnel injury
(said/did), advertising injury (written/published)
D&O Insurance - ANS-Wrongful acts by association/board, negligence, omission,
monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility - ANS-Identify, review, monitor risk,
inform Board, oversee insurance.
Insurance Agent - ANS-sells insurance, works for single carrier
Insurance broker - ANS-Sells insurance, works with multiple carriers
Loss Frequency - ANS-Number of times loss may occur
Loss Severity - ANS-expected $ loss from event.
Risk Control - ANS-reduce or eliminate exposure
Risk Financing - ANS-Options to cover $ of loss
,Exposure avoidance - ANS-eliminating chance of loss
Loss Prevention - ANS-reducing likelihood of loss (training, inspections)
Loss Reduction - ANS-reducing severity of loss (fire sprinkler)
Contractual Transfer - ANS-shift loss from association to other (ex. vendor, insurance)
Risk Retention - ANS-association finds way to pay for losses
Risk Transfer - ANS-association finds way to transfer responsibility to another party
Funding to pay for losses: Current expensing - ANS-shifting cost from one GL to
another
Funding to pay for losses: Funded Reserve - ANS-pull from reserves to cover cost
Funding to pay for losses: Unfunded expense. - ANS-Special assessment to cover cost
Funding to pay for losses: Borrowing - ANS-Taking out a loan/credit to cover expense
Decision Matrix: Risk Retention - ANS-Low frequency, low severity
Decision Matrix: Risk Transfer - ANS-Low frequency, High severity
Decision Matrix: Risk Control - ANS-High frequency, low severity
Decision Matrix: Combination - ANS-High frequency, High severity
Screening Bidders for Insurance - ANS-Policies tailored to your needs, HOA
experience, carrier ratings.
RFP Components for Insurance - ANS-Intro, contacts, instruction/timing for submission,
bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - ANS-primarily for large projects, bid specs, inform on association, work
conditions, surveys/outline job, dates, warranty reqs
BBB - ANS-Better Business Bureau
RFP Contract provisions - ANS--parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
, -default financial protection.
Loss Run - ANS-History of claims on insurance policy
Insurance proposal: Binding - ANS-carrier gives agent authority to commit to insuring
once association accepts.
Insurance proposal: Firm - ANS-numbers wont change unless specifications change
Insurance proposal: Conditional - ANS-all must be declared first
Insurance Premium Calculation: Property - ANS-Value of building x Rate
Insurance Premium Calculation: Commercial Gen Liability - ANS-# of units x rate +
features
Insurance Premium Calculation: Workers Comp - ANS-Payroll x rate (not fixed)
Property Coverage - ANS-fidelity, environmental, flood, vehicle
Liability Coverage - ANS-general, D&O, umbrella, (vehicle non-owned)
Personnel Coverage - ANS-Worker comp, employment liability
Fidelity - ANS-to protect the association and property owners from financial fraud
committed by the individuals who handle money for the association.
Net Income Coverage - ANS-Money
Workers Comp - ANS-protects volunteers, board, association (even if *workers* not
present)
Blanket Coverage - ANS-Includes all oversights of other coverages
Parts of Insurance Policy - ANS-conditions, declarations, exclusions, agreement,
definition, endorsement.
Lien - ANS-Legal claim by association/one party on the property of another/homeowner
to obtain debt or obligation
Association Purpose - ANS-Provide for community, Government, and business.
Planned Community - ANS-Owner owns lot, association owns common area
Condominium - ANS-owner owns unit/owns divided interest in common areas,
association owns no real estate.
Aggregate - ANS-a maximum amount an insurer will reimburse a policyholder for all
covered losses during a set time period, usually one year.
Risk Management - ANS-Identifying, assessing, responding to risk by reducing,
removing, and insuring threats
Risk Inventory - ANS-Contacts, resources, areas to inspect & keep record of
Immediate exposers to risk - ANS-Severe weather, deficiencies, negligence
Speed of Response - ANS-Authorization, information, money, equipment, personnel,
schedule
Types of Exposure - ANS-Property, Net Income, Liability, Personnel
Property Exposures - ANS-physical damages to property
Net Income exposures - ANS-Unexpected increase in cost/money
Personnel Exposures - ANS-death, retirement, resignation
Liability Exposures - ANS-3rd party claims against association. (worker injured and
suing ex)
Liability Insurance Coverages - ANS-Bodily injury, property damage, personnel injury
(said/did), advertising injury (written/published)
D&O Insurance - ANS-Wrongful acts by association/board, negligence, omission,
monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility - ANS-Identify, review, monitor risk,
inform Board, oversee insurance.
Insurance Agent - ANS-sells insurance, works for single carrier
Insurance broker - ANS-Sells insurance, works with multiple carriers
Loss Frequency - ANS-Number of times loss may occur
Loss Severity - ANS-expected $ loss from event.
Risk Control - ANS-reduce or eliminate exposure
Risk Financing - ANS-Options to cover $ of loss
,Exposure avoidance - ANS-eliminating chance of loss
Loss Prevention - ANS-reducing likelihood of loss (training, inspections)
Loss Reduction - ANS-reducing severity of loss (fire sprinkler)
Contractual Transfer - ANS-shift loss from association to other (ex. vendor, insurance)
Risk Retention - ANS-association finds way to pay for losses
Risk Transfer - ANS-association finds way to transfer responsibility to another party
Funding to pay for losses: Current expensing - ANS-shifting cost from one GL to
another
Funding to pay for losses: Funded Reserve - ANS-pull from reserves to cover cost
Funding to pay for losses: Unfunded expense. - ANS-Special assessment to cover cost
Funding to pay for losses: Borrowing - ANS-Taking out a loan/credit to cover expense
Decision Matrix: Risk Retention - ANS-Low frequency, low severity
Decision Matrix: Risk Transfer - ANS-Low frequency, High severity
Decision Matrix: Risk Control - ANS-High frequency, low severity
Decision Matrix: Combination - ANS-High frequency, High severity
Screening Bidders for Insurance - ANS-Policies tailored to your needs, HOA
experience, carrier ratings.
RFP Components for Insurance - ANS-Intro, contacts, instruction/timing for submission,
bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - ANS-primarily for large projects, bid specs, inform on association, work
conditions, surveys/outline job, dates, warranty reqs
BBB - ANS-Better Business Bureau
RFP Contract provisions - ANS--parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
, -default financial protection.
Loss Run - ANS-History of claims on insurance policy
Insurance proposal: Binding - ANS-carrier gives agent authority to commit to insuring
once association accepts.
Insurance proposal: Firm - ANS-numbers wont change unless specifications change
Insurance proposal: Conditional - ANS-all must be declared first
Insurance Premium Calculation: Property - ANS-Value of building x Rate
Insurance Premium Calculation: Commercial Gen Liability - ANS-# of units x rate +
features
Insurance Premium Calculation: Workers Comp - ANS-Payroll x rate (not fixed)
Property Coverage - ANS-fidelity, environmental, flood, vehicle
Liability Coverage - ANS-general, D&O, umbrella, (vehicle non-owned)
Personnel Coverage - ANS-Worker comp, employment liability
Fidelity - ANS-to protect the association and property owners from financial fraud
committed by the individuals who handle money for the association.
Net Income Coverage - ANS-Money
Workers Comp - ANS-protects volunteers, board, association (even if *workers* not
present)
Blanket Coverage - ANS-Includes all oversights of other coverages
Parts of Insurance Policy - ANS-conditions, declarations, exclusions, agreement,
definition, endorsement.
Lien - ANS-Legal claim by association/one party on the property of another/homeowner
to obtain debt or obligation
Association Purpose - ANS-Provide for community, Government, and business.
Planned Community - ANS-Owner owns lot, association owns common area
Condominium - ANS-owner owns unit/owns divided interest in common areas,
association owns no real estate.
