CMCA Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
RFP Components for Insurance - CORRECT ANSWER Intro, contacts, instruction/timing for
submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - CORRECT ANSWER primarily for large projects, bid specs, inform on association,
work conditions, surveys/outline job, dates, warranty reqs
BBB - CORRECT ANSWER Better Business Bureau
RFP Contract provisions - CORRECT ANSWER -parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.
Loss Run - CORRECT ANSWER History of claims on insurance policy
Insurance proposal: Binding - CORRECT ANSWER carrier gives agent authority to commit
to insuring once association accepts.
Insurance proposal: Firm - CORRECT ANSWER numbers wont change unless specifications
change
Insurance proposal: Conditional - CORRECT ANSWER all must be declared first
Insurance Premium Calculation: Property - CORRECT ANSWER Value of building x Rate
,Insurance Premium Calculation: Commercial Gen Liability - CORRECT ANSWER # of units
x rate + features
Insurance Premium Calculation: Workers Comp - CORRECT ANSWER Payroll x rate (not
fixed)
Property Coverage - CORRECT ANSWER fidelity, environmental, flood, vehicle
Liability Coverage - CORRECT ANSWER general, D&O, umbrella, (vehicle non-owned)
Personnel Coverage - CORRECT ANSWER Worker comp, employment liability
Fidelity - CORRECT ANSWER to protect the association and property owners from financial
fraud committed by the individuals who handle money for the association.
Net Income Coverage - CORRECT ANSWER Money
Workers Comp - CORRECT ANSWER protects volunteers, board, association (even if
*workers* not present)
Blanket Coverage - CORRECT ANSWER Includes all oversights of other coverages
Parts of Insurance Policy - CORRECT ANSWER conditions, declarations, exclusions,
agreement, definition, endorsement.
Lien - CORRECT ANSWER Legal claim by association/one party on the property of
another/homeowner to obtain debt or obligation
, Association Purpose - CORRECT ANSWER Provide for community, Government, and
business.
Planned Community - CORRECT ANSWER Owner owns lot, association owns common area
Condominium - CORRECT ANSWER owner owns unit/owns divided interest in common
areas, association owns no real estate.
Cooperative - CORRECT ANSWER owner owns stock/leases unit, association owns
building/unit/common area
Umbrella Association - CORRECT ANSWER more than one association/has sub associations
Mixed use - CORRECT ANSWER residential and commercial space
55&Older - CORRECT ANSWER designated fair housing act with age restrictions
Association Legal Obligation - CORRECT ANSWER fed/state/local statutes regulations and
case law, gov docs, FHA regs, other authorities
EEOC (Equal Employment Opportunity Commission) - CORRECT ANSWER Work
discrimination race/color/religion
FLSA (Fair Labor Standards Act) - CORRECT ANSWER Minimum wage and pay
FMLA (Family and Medical Leave Act) - CORRECT 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.
Questions and CORRECT Answers
RFP Components for Insurance - CORRECT ANSWER Intro, contacts, instruction/timing for
submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - CORRECT ANSWER primarily for large projects, bid specs, inform on association,
work conditions, surveys/outline job, dates, warranty reqs
BBB - CORRECT ANSWER Better Business Bureau
RFP Contract provisions - CORRECT ANSWER -parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.
Loss Run - CORRECT ANSWER History of claims on insurance policy
Insurance proposal: Binding - CORRECT ANSWER carrier gives agent authority to commit
to insuring once association accepts.
Insurance proposal: Firm - CORRECT ANSWER numbers wont change unless specifications
change
Insurance proposal: Conditional - CORRECT ANSWER all must be declared first
Insurance Premium Calculation: Property - CORRECT ANSWER Value of building x Rate
,Insurance Premium Calculation: Commercial Gen Liability - CORRECT ANSWER # of units
x rate + features
Insurance Premium Calculation: Workers Comp - CORRECT ANSWER Payroll x rate (not
fixed)
Property Coverage - CORRECT ANSWER fidelity, environmental, flood, vehicle
Liability Coverage - CORRECT ANSWER general, D&O, umbrella, (vehicle non-owned)
Personnel Coverage - CORRECT ANSWER Worker comp, employment liability
Fidelity - CORRECT ANSWER to protect the association and property owners from financial
fraud committed by the individuals who handle money for the association.
Net Income Coverage - CORRECT ANSWER Money
Workers Comp - CORRECT ANSWER protects volunteers, board, association (even if
*workers* not present)
Blanket Coverage - CORRECT ANSWER Includes all oversights of other coverages
Parts of Insurance Policy - CORRECT ANSWER conditions, declarations, exclusions,
agreement, definition, endorsement.
Lien - CORRECT ANSWER Legal claim by association/one party on the property of
another/homeowner to obtain debt or obligation
, Association Purpose - CORRECT ANSWER Provide for community, Government, and
business.
Planned Community - CORRECT ANSWER Owner owns lot, association owns common area
Condominium - CORRECT ANSWER owner owns unit/owns divided interest in common
areas, association owns no real estate.
Cooperative - CORRECT ANSWER owner owns stock/leases unit, association owns
building/unit/common area
Umbrella Association - CORRECT ANSWER more than one association/has sub associations
Mixed use - CORRECT ANSWER residential and commercial space
55&Older - CORRECT ANSWER designated fair housing act with age restrictions
Association Legal Obligation - CORRECT ANSWER fed/state/local statutes regulations and
case law, gov docs, FHA regs, other authorities
EEOC (Equal Employment Opportunity Commission) - CORRECT ANSWER Work
discrimination race/color/religion
FLSA (Fair Labor Standards Act) - CORRECT ANSWER Minimum wage and pay
FMLA (Family and Medical Leave Act) - CORRECT 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.
