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M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM AND PRACTICE EXAM WITH REVIEW
QUESTIONS NEWEST 2029/2027 COMPLETE EXAM
300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Because a community association relies on the timely
collection of assessments in order to meet operating
expense requirements, delinquent payments may result in
each of the following EXCEPT:
a. Property beginning to appear run-down
b. A budget surplus
c. Disharmony between paying owners and delinquent
ones
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d. Essential maintenance becoming unaffordable -
ANSWER-b. A budget surplus
Instead of creating a budget surplus, a large number of
delinquent payments can actually lead a community
association to increase annual assessments for all
residents to cover the deficit.
Exposure avoidance involves avoiding the circumstances
that would expose the community association to certain
type of loss. For example, to avoid problems with serving
alcohol in the clubhouse, the community association has a
rule prohibiting the use of alcohol in the facility.
True or false. The insurance industry is unregulated at the
state level. - ANSWER-False
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The insurance industry is a highly regulated legal
environment at the state level. Insurers are either admitted
or non-admitted at the state level: both, if licensed, can
write insurance, but only admitted insurers are eligible for
state guarantee funds if the insurer becomes insolvent.
Non-admitted insurers are often called Excess & Surplus
(E&S) Lines insurers. The insurance industry is highly
regulated at the state level in terms of policy forms and
rates, claims practices, financial operations, and other
basic business practices.
True or false. The American Agency System is comprised
of employees of a single insurance company who only
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place the insurance of that company, such as Allstate,
Farmers, Nationwide, and State Farm. - ANSWER-False
The American Agency System is comprised of insurance
agencies which place insurance for more than one
insurance company. Insurance companies who participate
in this system include Aetna, Chubb, CNA, and Travelers.
The Direct Writer System is comprised of employees of a
single insurance company who only place the insurance of
that company. Insurance companies who participate in this
system include Allstate, Farmers, Nationwide, and State
Farm.
Commercial package policies contain all of the following
EXCEPT:
M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM AND PRACTICE EXAM WITH REVIEW
QUESTIONS NEWEST 2029/2027 COMPLETE EXAM
300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Because a community association relies on the timely
collection of assessments in order to meet operating
expense requirements, delinquent payments may result in
each of the following EXCEPT:
a. Property beginning to appear run-down
b. A budget surplus
c. Disharmony between paying owners and delinquent
ones
,2|Page
d. Essential maintenance becoming unaffordable -
ANSWER-b. A budget surplus
Instead of creating a budget surplus, a large number of
delinquent payments can actually lead a community
association to increase annual assessments for all
residents to cover the deficit.
Exposure avoidance involves avoiding the circumstances
that would expose the community association to certain
type of loss. For example, to avoid problems with serving
alcohol in the clubhouse, the community association has a
rule prohibiting the use of alcohol in the facility.
True or false. The insurance industry is unregulated at the
state level. - ANSWER-False
,3|Page
The insurance industry is a highly regulated legal
environment at the state level. Insurers are either admitted
or non-admitted at the state level: both, if licensed, can
write insurance, but only admitted insurers are eligible for
state guarantee funds if the insurer becomes insolvent.
Non-admitted insurers are often called Excess & Surplus
(E&S) Lines insurers. The insurance industry is highly
regulated at the state level in terms of policy forms and
rates, claims practices, financial operations, and other
basic business practices.
True or false. The American Agency System is comprised
of employees of a single insurance company who only
, 4|Page
place the insurance of that company, such as Allstate,
Farmers, Nationwide, and State Farm. - ANSWER-False
The American Agency System is comprised of insurance
agencies which place insurance for more than one
insurance company. Insurance companies who participate
in this system include Aetna, Chubb, CNA, and Travelers.
The Direct Writer System is comprised of employees of a
single insurance company who only place the insurance of
that company. Insurance companies who participate in this
system include Allstate, Farmers, Nationwide, and State
Farm.
Commercial package policies contain all of the following
EXCEPT:
