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,C. A work order/response form - A, B, and D speak to Which of the following is a common management control for ensuring maintenance work
elements OTHER than a control to ensure maintenance work is is performed in a timely manner?
completed.
A. A purchase order system
B. An equipment warranties
C. A work order/response form
D. A contractor's invoice
C. Maintenance responsibility chart along, with the governing The primary management control tool for identifying whether the association needs to
documents, defines parameters of association maintenance maintain a particular property element is:
responsibility.
A. Physical inspections
The other answers have no bearing on necessity of B. Association bylaws
maintenance or maintenance responsibility. C. Maintenance responsibility chart
D. Community asset inventory
B. Re-roofing the buildings - Large contracts involving In what type of a contract would a waiver of lien by recommended?
significant material purchase and/or use of sub-contractors
commonly include lien waivers and should be recommended A. Repair of the HVAC system
to the board. B. Re-roofing the buildings
C. Repair of the pool pump
A, C, and D typically do not include significant material D. Annual tree pruning
purchases or the use of sub-contractors so a waiver of lien is
not necessary.
B. Maintain certain limits of insurance - Co-insurance seeks to What does "Co-Insurance" obligate the Association to do?
the limits of insurance in place at the time of a loss and speaks
to insurance obligation for the parties involved in the claim. A. Pay the deductible
B. Maintain certain limits of insurance
Co-insurance does not obligate the Association to pay a C. Cover the depreciated value of all association buildings
deductible. Provides no obligation to provide insurance for D. Provide insurance for homeowners
homeowners.
, A. Negotiate contracts within the bidding process. When an association contracts out all of its services and has no employees, it is a best
business practice to:
Incorrect Answers:
B. Employment practices liability insurance is typically A. Negotiate contracts within the bidding process.
purchased by an association that has employees to provide B. Purchase employment practices liability insurance.
coverage against certain types of claims by those employees, C. Assume the contractors carry their own insurance coverage.
and usually accompanies a workers compensation insurance D. Increase the coverage under the D&O insurance policy.
policy.
C. The association MUST NEVER assume that contractors carry
their own insurance coverage and should require all
contractors to provide evidence of insurance.
D. D&O insurance policies is designed to pay for wrongful acts
that do not lead to property damage (PD), bodily injury (BI),
personal injury (PI), or advertising injury (AI); an example of a
claim for coverage under D&O would be if a board of
directors is accused of not uniformly enforcing rules or
covenants. Therefore, it is unlikely that the services of
independent contractors would lead to claims under D&O.
A. Did not notify association of their current address. It is the If an owner fails to receive notice of a meeting, the association is not responsible if the
owner's responsibility to provide current contact information owner:
to Management.
A. Did not notify association of their current address.
Incorrect: B. Does not usually attend the meetings.
B. The duty to notify all owners of meetings belongs to the C. Already signed the petition to call the meeting.
Board, which is often delegated to Management. D. Shares title with multiple owners.
C. Signing a petition to hold a meeting is not legal notice of
the meeting. The duty to notify all owners of meetings belongs
to the Board, which is often delegated to Management.
D. The notice of meetings is sent to the "Owner of Record" at
the last known address. In the case of multiple owners sharing
title to a unit, the owners of that unity have the duty to notify
the Board/Management which one of the owners will receive
notices, and provide current contact information.