CAM Questions – Gold Coast Schools Exam
Questions and Verified Correct Answers latest
2025–2026
To establish the association's legal requirements in purchasing insurance, the association
should consult all of the following, EXCEPT:
a. Enabling statutes, such as the Condominium Act
b. Lenders who directly or indirectly affect the insurance market
c. A professional insurance consultant with expertise in the reinsurance market d. The
association documents - answer>>>c. A professional insurance consultant with expertise
in the reinsurance market
According to the business judgment rule, how should directors and officers perform their
duties?
a. Perform their duties as they see fit, based upon input from family and friends
b. Attend a CAM pre-licensure course
c. Perform their duties in a manner that they reasonably believe to be in the best interest
of the association
d. Always select the highest bidder on a contract, because it is likely to best serve the
association - answer>>>c. Perform their duties in a manner that they reasonably believe
to be in the best interest of the association
Which of the following is NOT true about self-insurance?
a. It is a risk management method in which a calculated amount of money is set aside for
a potential future loss.
b. The association may assess members to obtain the necessary funds.
c. It may be funded through a line of credit with a financial institution.
d. It is a risk management method that requires the purchase of insurance from an
insurance company. - answer>>>d. It is a risk management method that requires the
purchase of insurance from an insurance company.
,Which statement is CORRECT about reinsurance?
a. It enables a primary insurer to transfer part of the risk of insuring a property to other
insurers.
b. It is a form of windstorm self-insurance that is funded entirely by three or more
associations.
c. It must be provided by an excess lines insurer.
d. It is illegal in the state of Florida - answer>>>a. It enables a primary insurer to transfer
part of the risk of insuring a property to other insurers.
An association may apply to the OIR to form a self-insurance fund for windstorm
insurance with at least two other residential associations if all of the following criteria are
met, EXCEPT:
a. The associations operate more than 50 units.
b. The type of insurance is limited to property or casualty risk, general liability, or surety
insurance.
c. The coverage is sufficient to cover the probable loss of a 250-year windstorm event.
d. The associations were created under F.S. 718, 719, 720, or 721 - answer>>>b. The type
of insurance is limited to property or casualty risk, general liability, or surety insurance.
All of the following are presumed to be true about directors and officers under the
business judgment rule, EXCEPT:
a. They know the requirements of their positions.
b. They know the association documents and applicable laws.
c. They know when to defer policy decisions to a CAM, attorney, accountant, or other
person who has been trained to understand statutory responsibilities. d. They spend
sufficient time to properly carry out their responsibilities, pursuant to the association
documents and governing law. - answer>>>c. They know when to defer policy decisions
to a CAM, attorney, accountant, or other person who has been trained to understand
statutory responsibilities.
,Which of the following is NOT true about sinkhole and catastrophic ground cover collapse
coverage?
a. All insurers must provide coverage unless waived by the insured.
b. In most policies, structural damage is defined as damage affecting foundations or
buildings.
c. Renewal policies include coverage to driveways and sidewalks in addition to the
foundation and the building.
d. An insurer does not have to pay damages under a catastrophic ground cover collapse
insurance policy unless the structure is condemned. - answer>>>c. Renewal policies
include coverage to driveways and sidewalks in addition to the foundation and the
building.
Filing a fraudulent insurance claim is what type of violation?
a. A first-degree misdemeanor
b. A second-degree felony
c. A third-degree felony
d. A second-degree misdemeanor - answer>>>c. A third-degree felony
Which statement best describes Citizens Property Insurance Corporation?
a. It is a not-for-profit entity created by the Florida Community Association Coalition.
b. It is a not-for-profit government entity, created to provide insurance to individuals and
entities that are unable to find insurance in the private sector. c. It is a catastrophe fund
that assesses private insurers to cover unfunded liabilities.
d. It offers discounts to associations for hurricane protection, based upon a questionnaire
completed by the manager. - answer>>>b. It is a not-for-profit government entity, created
to provide insurance to individuals and entities that are unable to find insurance in the
private sector
Which of the following is NOT true about Citizens Property Insurance Corporation?
, a. Its legislative purpose is to provide property insurance to persons and entities,
including community associations, at a lesser cost than the private insurance market.
b. It offers commercial residential multiperil policies to existing policyholders. c. It offers
commercial residential windstorm only policies to new policyholders.
d. It offers commercial residential policies excluding wind to new policyholders -
answer>>>a. Its legislative purpose is to provide property insurance to persons and
entities, including community associations, at a lesser cost than the private insurance
market.
Certain insurance policies are required to include a notice regarding law and ordinance
coverage. Pursuant to statute, these policies must include specific language in which
font?
a. 16-point Arial, bold type
b. 1-point Times Roman, bold type
c. 18-point, bold type
d. 20-point, bold type - answer>>>c. 18-point, bold type
F.S. 718 requires condominium members to insure all of the following items in their own
units, EXCEPT:
a. Water heaters and water filters
b. All floor, wall, and ceiling coverings
c. Built-in cabinets and countertops unless they were initially installed by the developer
d. Appliances and electrical fixtures - answer>>>c. Built-in cabinets and countertops
unless they were initially installed by the developer
The Cooperative Act has which of the following insurance requirements for associations?
a. To obtain flood, windstorm, and liability insurance, based upon an appraisal performed
by a licensed appraiser within the past 36 months
b. To use its best efforts to obtain and maintain adequate insurance to protect the
association property
c. To purchase D&O insurance if required by the documents
Questions and Verified Correct Answers latest
2025–2026
To establish the association's legal requirements in purchasing insurance, the association
should consult all of the following, EXCEPT:
a. Enabling statutes, such as the Condominium Act
b. Lenders who directly or indirectly affect the insurance market
c. A professional insurance consultant with expertise in the reinsurance market d. The
association documents - answer>>>c. A professional insurance consultant with expertise
in the reinsurance market
According to the business judgment rule, how should directors and officers perform their
duties?
a. Perform their duties as they see fit, based upon input from family and friends
b. Attend a CAM pre-licensure course
c. Perform their duties in a manner that they reasonably believe to be in the best interest
of the association
d. Always select the highest bidder on a contract, because it is likely to best serve the
association - answer>>>c. Perform their duties in a manner that they reasonably believe
to be in the best interest of the association
Which of the following is NOT true about self-insurance?
a. It is a risk management method in which a calculated amount of money is set aside for
a potential future loss.
b. The association may assess members to obtain the necessary funds.
c. It may be funded through a line of credit with a financial institution.
d. It is a risk management method that requires the purchase of insurance from an
insurance company. - answer>>>d. It is a risk management method that requires the
purchase of insurance from an insurance company.
,Which statement is CORRECT about reinsurance?
a. It enables a primary insurer to transfer part of the risk of insuring a property to other
insurers.
b. It is a form of windstorm self-insurance that is funded entirely by three or more
associations.
c. It must be provided by an excess lines insurer.
d. It is illegal in the state of Florida - answer>>>a. It enables a primary insurer to transfer
part of the risk of insuring a property to other insurers.
An association may apply to the OIR to form a self-insurance fund for windstorm
insurance with at least two other residential associations if all of the following criteria are
met, EXCEPT:
a. The associations operate more than 50 units.
b. The type of insurance is limited to property or casualty risk, general liability, or surety
insurance.
c. The coverage is sufficient to cover the probable loss of a 250-year windstorm event.
d. The associations were created under F.S. 718, 719, 720, or 721 - answer>>>b. The type
of insurance is limited to property or casualty risk, general liability, or surety insurance.
All of the following are presumed to be true about directors and officers under the
business judgment rule, EXCEPT:
a. They know the requirements of their positions.
b. They know the association documents and applicable laws.
c. They know when to defer policy decisions to a CAM, attorney, accountant, or other
person who has been trained to understand statutory responsibilities. d. They spend
sufficient time to properly carry out their responsibilities, pursuant to the association
documents and governing law. - answer>>>c. They know when to defer policy decisions
to a CAM, attorney, accountant, or other person who has been trained to understand
statutory responsibilities.
,Which of the following is NOT true about sinkhole and catastrophic ground cover collapse
coverage?
a. All insurers must provide coverage unless waived by the insured.
b. In most policies, structural damage is defined as damage affecting foundations or
buildings.
c. Renewal policies include coverage to driveways and sidewalks in addition to the
foundation and the building.
d. An insurer does not have to pay damages under a catastrophic ground cover collapse
insurance policy unless the structure is condemned. - answer>>>c. Renewal policies
include coverage to driveways and sidewalks in addition to the foundation and the
building.
Filing a fraudulent insurance claim is what type of violation?
a. A first-degree misdemeanor
b. A second-degree felony
c. A third-degree felony
d. A second-degree misdemeanor - answer>>>c. A third-degree felony
Which statement best describes Citizens Property Insurance Corporation?
a. It is a not-for-profit entity created by the Florida Community Association Coalition.
b. It is a not-for-profit government entity, created to provide insurance to individuals and
entities that are unable to find insurance in the private sector. c. It is a catastrophe fund
that assesses private insurers to cover unfunded liabilities.
d. It offers discounts to associations for hurricane protection, based upon a questionnaire
completed by the manager. - answer>>>b. It is a not-for-profit government entity, created
to provide insurance to individuals and entities that are unable to find insurance in the
private sector
Which of the following is NOT true about Citizens Property Insurance Corporation?
, a. Its legislative purpose is to provide property insurance to persons and entities,
including community associations, at a lesser cost than the private insurance market.
b. It offers commercial residential multiperil policies to existing policyholders. c. It offers
commercial residential windstorm only policies to new policyholders.
d. It offers commercial residential policies excluding wind to new policyholders -
answer>>>a. Its legislative purpose is to provide property insurance to persons and
entities, including community associations, at a lesser cost than the private insurance
market.
Certain insurance policies are required to include a notice regarding law and ordinance
coverage. Pursuant to statute, these policies must include specific language in which
font?
a. 16-point Arial, bold type
b. 1-point Times Roman, bold type
c. 18-point, bold type
d. 20-point, bold type - answer>>>c. 18-point, bold type
F.S. 718 requires condominium members to insure all of the following items in their own
units, EXCEPT:
a. Water heaters and water filters
b. All floor, wall, and ceiling coverings
c. Built-in cabinets and countertops unless they were initially installed by the developer
d. Appliances and electrical fixtures - answer>>>c. Built-in cabinets and countertops
unless they were initially installed by the developer
The Cooperative Act has which of the following insurance requirements for associations?
a. To obtain flood, windstorm, and liability insurance, based upon an appraisal performed
by a licensed appraiser within the past 36 months
b. To use its best efforts to obtain and maintain adequate insurance to protect the
association property
c. To purchase D&O insurance if required by the documents
