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CMCA EXAM 2025 | LATEST|COMPLETE
FREQUENTLY MOST TESTED QUESTIONS
WITH VERIFIED ANSWERS/ALREADY
GREADED A+ |GET IT 100% ACCURATE!!
Aggregate - (ANSWER)a maximum amount an insurer will reimburse a
policyholder for all covered losses during a set time period, usually one year.
Risk Management - (ANSWER)Identifying, assessing, responding to risk by
reducing, removing, and insuring threats
Risk Inventory - (ANSWER)Contacts, resources, areas to inspect & keep record of
Immediate exposers to risk - (ANSWER)Severe weather, deficiencies, negligence
Speed of Response - (ANSWER)Authorization, information, money, equipment,
personnel, schedule
Types of Exposure - (ANSWER)Property, Net Income, Liability, Personnel
Property Exposures - (ANSWER)physical damages to property
Net Income exposures - (ANSWER)Unexpected increase in cost/money
,2
Personnel Exposures - (ANSWER)death, retirement, resignation
Liability Exposures - (ANSWER)3rd party claims against association. (worker
injured and suing ex)
Liability Insurance Coverages - (ANSWER)Bodily injury, property damage,
personnel injury (said/did), advertising injury (written/published)
D&O Insurance - (ANSWER)Wrongful acts by association/board, negligence,
omission, monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility - (ANSWER)Identify, review,
monitor risk, inform Board, oversee insurance.
Insurance Agent - (ANSWER)sells insurance, works for single carrier
Insurance broker - (ANSWER)Sells insurance, works with multiple carriers
Loss Frequency - (ANSWER)Number of times loss may occur
Loss Severity - (ANSWER)expected $ loss from event.
,3
Risk Control - (ANSWER)reduce or eliminate exposure
Risk Financing - (ANSWER)Options to cover $ of loss
Exposure avoidance - (ANSWER)eliminating chance of loss
Loss Prevention - (ANSWER)reducing likelihood of loss (training, inspections)
Loss Reduction - (ANSWER)reducing severity of loss (fire sprinkler)
Contractual Transfer - (ANSWER)shift loss from association to other (ex. vendor,
insurance)
Risk Retention - (ANSWER)association finds way to pay for losses
Risk Transfer - (ANSWER)association finds way to transfer responsibility to
another party
Funding to pay for losses: Current expensing - (ANSWER)shifting cost from one GL
to another
Funding to pay for losses: Funded Reserve - (ANSWER)pull from reserves to cover
cost
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Funding to pay for losses: Unfunded expense. - (ANSWER)Special assessment to
cover cost
Funding to pay for losses: Borrowing - (ANSWER)Taking out a loan/credit to cover
expense
Decision Matrix: Risk Retention - (ANSWER)Low frequency, low severity
Decision Matrix: Risk Transfer - (ANSWER)Low frequency, High severity
Decision Matrix: Risk Control - (ANSWER)High frequency, low severity
Decision Matrix: Combination - (ANSWER)High frequency, High severity
Screening Bidders for Insurance - (ANSWER)Policies tailored to your needs, HOA
experience, carrier ratings.
RFP Components for Insurance - (ANSWER)Intro, contacts, instruction/timing for
submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - (ANSWER)primarily for large projects, bid specs, inform on association,
work conditions, surveys/outline job, dates, warranty reqs
CMCA EXAM 2025 | LATEST|COMPLETE
FREQUENTLY MOST TESTED QUESTIONS
WITH VERIFIED ANSWERS/ALREADY
GREADED A+ |GET IT 100% ACCURATE!!
Aggregate - (ANSWER)a maximum amount an insurer will reimburse a
policyholder for all covered losses during a set time period, usually one year.
Risk Management - (ANSWER)Identifying, assessing, responding to risk by
reducing, removing, and insuring threats
Risk Inventory - (ANSWER)Contacts, resources, areas to inspect & keep record of
Immediate exposers to risk - (ANSWER)Severe weather, deficiencies, negligence
Speed of Response - (ANSWER)Authorization, information, money, equipment,
personnel, schedule
Types of Exposure - (ANSWER)Property, Net Income, Liability, Personnel
Property Exposures - (ANSWER)physical damages to property
Net Income exposures - (ANSWER)Unexpected increase in cost/money
,2
Personnel Exposures - (ANSWER)death, retirement, resignation
Liability Exposures - (ANSWER)3rd party claims against association. (worker
injured and suing ex)
Liability Insurance Coverages - (ANSWER)Bodily injury, property damage,
personnel injury (said/did), advertising injury (written/published)
D&O Insurance - (ANSWER)Wrongful acts by association/board, negligence,
omission, monetary (devalued), non-monetary(freedom)
Community Manager role in Risk Responsibility - (ANSWER)Identify, review,
monitor risk, inform Board, oversee insurance.
Insurance Agent - (ANSWER)sells insurance, works for single carrier
Insurance broker - (ANSWER)Sells insurance, works with multiple carriers
Loss Frequency - (ANSWER)Number of times loss may occur
Loss Severity - (ANSWER)expected $ loss from event.
,3
Risk Control - (ANSWER)reduce or eliminate exposure
Risk Financing - (ANSWER)Options to cover $ of loss
Exposure avoidance - (ANSWER)eliminating chance of loss
Loss Prevention - (ANSWER)reducing likelihood of loss (training, inspections)
Loss Reduction - (ANSWER)reducing severity of loss (fire sprinkler)
Contractual Transfer - (ANSWER)shift loss from association to other (ex. vendor,
insurance)
Risk Retention - (ANSWER)association finds way to pay for losses
Risk Transfer - (ANSWER)association finds way to transfer responsibility to
another party
Funding to pay for losses: Current expensing - (ANSWER)shifting cost from one GL
to another
Funding to pay for losses: Funded Reserve - (ANSWER)pull from reserves to cover
cost
, 4
Funding to pay for losses: Unfunded expense. - (ANSWER)Special assessment to
cover cost
Funding to pay for losses: Borrowing - (ANSWER)Taking out a loan/credit to cover
expense
Decision Matrix: Risk Retention - (ANSWER)Low frequency, low severity
Decision Matrix: Risk Transfer - (ANSWER)Low frequency, High severity
Decision Matrix: Risk Control - (ANSWER)High frequency, low severity
Decision Matrix: Combination - (ANSWER)High frequency, High severity
Screening Bidders for Insurance - (ANSWER)Policies tailored to your needs, HOA
experience, carrier ratings.
RFP Components for Insurance - (ANSWER)Intro, contacts, instruction/timing for
submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - (ANSWER)primarily for large projects, bid specs, inform on association,
work conditions, surveys/outline job, dates, warranty reqs
