CMCA EXAM QUESTIONS AND ANSWERS
BBB - ANSWER-Better Business Bureau
RFP Contract provisions - ANSWER--parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.
Loss Run - ANSWER-History of claims on insurance policy
Insurance proposal: Binding - ANSWER-carrier gives agent authority to commit to insuring
once association accepts.
Insurance proposal: Firm - ANSWER-numbers wont change unless specifications change
Insurance proposal: Conditional - ANSWER-all must be declared first
Insurance Premium Calculation: Property - ANSWER-Value of building x Rate
Insurance Premium Calculation: Commercial Gen Liability - ANSWER-# of units x rate +
features
Insurance Premium Calculation: Workers Comp - ANSWER-Payroll x rate (not fixed)
Property Coverage - ANSWER-fidelity, environmental, flood, vehicle
Liability Coverage - ANSWER-general, D&O, umbrella, (vehicle non-owned)
Personnel Coverage - ANSWER-Worker comp, employment liability
Fidelity - ANSWER-to protect the association and property owners from financial fraud
committed by the individuals who handle money for the association.
Net Income Coverage - ANSWER-Money
Workers Comp - ANSWER-protects volunteers, board, association (even if *workers* not
present)
Blanket Coverage - ANSWER-Includes all oversights of other coverages
Parts of Insurance Policy - ANSWER-conditions, declarations, exclusions, agreement,
definition, endorsement.
Lien - ANSWER-Legal claim by association/one party on the property of another/homeowner
to obtain debt or obligation
,Association Purpose - ANSWER-Provide for community, Government, and business.
Planned Community - ANSWER-Owner owns lot, association owns common area
Condominium - ANSWER-owner owns unit/owns divided interest in common areas,
association owns no real estate.
Cooperative - ANSWER-owner owns stock/leases unit, association owns
building/unit/common area
Umbrella Association - ANSWER-more than one association/has sub associations
Mixed use - ANSWER-residential and commercial space
55&Older - ANSWER-designated fair housing act with age restrictions
Association Legal Obligation - ANSWER-fed/state/local statutes regulations and case law,
gov docs, FHA regs, other authorities
EEOC (Equal Employment Opportunity Commission) - ANSWER-Work discrimination
race/color/religion
FLSA (Fair Labor Standards Act) - ANSWER-Minimum wage and pay
FMLA (Family and Medical Leave Act) - ANSWER-allows employees to take time off from
work for family or medical reasons. The FMLA requires employers that have 50 or more
employees to provide employees with up to 12 weeks of unpaid family or medical leave
during any 12 month period.
FICA (Federal Insurance Contributions Act) - ANSWER-social security & matching
OSHA - ANSWER-Occupational Safety and Health Administration
FDCPA (Fair Debt Collection Practices Act) - ANSWER-Fair Debt Collection Practices Act
Funding to pay for losses: Funded Reserve - ANSWER-pull from reserves to cover cost
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
Fair Housing Act (FHA) - ANSWER-The federal law that prohibits discrimination in housing
based on race, color, religion, sex, handicap, familial status, and national origin
SSCRA (The Soldiers and Sailors Civil Relief Act) - ANSWER-Requires the delay of all civil
court actions, such as bankruptcy and foreclosure's, until the service member returns from
active duty
U.S. Bankruptcy Code - ANSWER-Regulates how individuals and businesses can file for
bankruptcy
Specific Statute - ANSWER-applies to one or more types of association
Role of CPA - ANSWER-prepares year end reports, audit.
General State Statutes - ANSWER-Applies to all types of associations, including community
associations (for example, regular corporate or not-for-profit corporate statutes).
Uniform statutes - ANSWER-standardize laws for associations
Governing Documents - ANSWER-define rights and obligations, binding relationship, rules
and regulations
Hierarchy of Governing Docs - ANSWER-1. Federal Laws and State Statutes
2. Recorded plat/plan
3. Declaration, CC&R's, master plan
4. Lease/occupancy agreement
5. Articles of Incorporation
6. Bylaws
7. Board Resolutions
Higher documents always overrule lower
Recorded Map/Plat - ANSWER-who maintains property, title to property
CC&R's - ANSWER-covenants, conditions, and restrictions
Proprietary/Standard Lease/Occupancy - ANSWER-premises, term of lease, powers
Articles of Incorporation - ANSWER-basic powers/purpose, brings corporation into existence,
stock, # board members
BBB - ANSWER-Better Business Bureau
RFP Contract provisions - ANSWER--parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.
Loss Run - ANSWER-History of claims on insurance policy
Insurance proposal: Binding - ANSWER-carrier gives agent authority to commit to insuring
once association accepts.
Insurance proposal: Firm - ANSWER-numbers wont change unless specifications change
Insurance proposal: Conditional - ANSWER-all must be declared first
Insurance Premium Calculation: Property - ANSWER-Value of building x Rate
Insurance Premium Calculation: Commercial Gen Liability - ANSWER-# of units x rate +
features
Insurance Premium Calculation: Workers Comp - ANSWER-Payroll x rate (not fixed)
Property Coverage - ANSWER-fidelity, environmental, flood, vehicle
Liability Coverage - ANSWER-general, D&O, umbrella, (vehicle non-owned)
Personnel Coverage - ANSWER-Worker comp, employment liability
Fidelity - ANSWER-to protect the association and property owners from financial fraud
committed by the individuals who handle money for the association.
Net Income Coverage - ANSWER-Money
Workers Comp - ANSWER-protects volunteers, board, association (even if *workers* not
present)
Blanket Coverage - ANSWER-Includes all oversights of other coverages
Parts of Insurance Policy - ANSWER-conditions, declarations, exclusions, agreement,
definition, endorsement.
Lien - ANSWER-Legal claim by association/one party on the property of another/homeowner
to obtain debt or obligation
,Association Purpose - ANSWER-Provide for community, Government, and business.
Planned Community - ANSWER-Owner owns lot, association owns common area
Condominium - ANSWER-owner owns unit/owns divided interest in common areas,
association owns no real estate.
Cooperative - ANSWER-owner owns stock/leases unit, association owns
building/unit/common area
Umbrella Association - ANSWER-more than one association/has sub associations
Mixed use - ANSWER-residential and commercial space
55&Older - ANSWER-designated fair housing act with age restrictions
Association Legal Obligation - ANSWER-fed/state/local statutes regulations and case law,
gov docs, FHA regs, other authorities
EEOC (Equal Employment Opportunity Commission) - ANSWER-Work discrimination
race/color/religion
FLSA (Fair Labor Standards Act) - ANSWER-Minimum wage and pay
FMLA (Family and Medical Leave Act) - ANSWER-allows employees to take time off from
work for family or medical reasons. The FMLA requires employers that have 50 or more
employees to provide employees with up to 12 weeks of unpaid family or medical leave
during any 12 month period.
FICA (Federal Insurance Contributions Act) - ANSWER-social security & matching
OSHA - ANSWER-Occupational Safety and Health Administration
FDCPA (Fair Debt Collection Practices Act) - ANSWER-Fair Debt Collection Practices Act
Funding to pay for losses: Funded Reserve - ANSWER-pull from reserves to cover cost
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
Fair Housing Act (FHA) - ANSWER-The federal law that prohibits discrimination in housing
based on race, color, religion, sex, handicap, familial status, and national origin
SSCRA (The Soldiers and Sailors Civil Relief Act) - ANSWER-Requires the delay of all civil
court actions, such as bankruptcy and foreclosure's, until the service member returns from
active duty
U.S. Bankruptcy Code - ANSWER-Regulates how individuals and businesses can file for
bankruptcy
Specific Statute - ANSWER-applies to one or more types of association
Role of CPA - ANSWER-prepares year end reports, audit.
General State Statutes - ANSWER-Applies to all types of associations, including community
associations (for example, regular corporate or not-for-profit corporate statutes).
Uniform statutes - ANSWER-standardize laws for associations
Governing Documents - ANSWER-define rights and obligations, binding relationship, rules
and regulations
Hierarchy of Governing Docs - ANSWER-1. Federal Laws and State Statutes
2. Recorded plat/plan
3. Declaration, CC&R's, master plan
4. Lease/occupancy agreement
5. Articles of Incorporation
6. Bylaws
7. Board Resolutions
Higher documents always overrule lower
Recorded Map/Plat - ANSWER-who maintains property, title to property
CC&R's - ANSWER-covenants, conditions, and restrictions
Proprietary/Standard Lease/Occupancy - ANSWER-premises, term of lease, powers
Articles of Incorporation - ANSWER-basic powers/purpose, brings corporation into existence,
stock, # board members
