CMCA Insurance Exam With 100% Correct Answers

Contractual transfer - ANSWER-Involves entering into a contract that will, among other things, transfer the community association's legal responsibility for any loss. Exposure avoidance - ANSWER-Avoiding circumstances that would expose the community to certain types of loss. Loss prevention and reduction - ANSWER-Taking steps to reduce the frequency of potential loss. Real property - ANSWER-Includes buildings, land and the newest type of property exposure such as web sites, logos and similar electronic information. Cross liability - ANSWER-The right to sue another party insured under the same liability policy. CPCU - ANSWER-Chartered Property Casualty Underwriter. ARM - ANSWER-Associate in Risk Management. CIC - ANSWER-The Certified Insurance Counselors Program. Co-insurance - ANSWER-A standard element in most property policies that obligates the insured to maintain a certain limit of property insurance based on a stated percentage. Subrogation - ANSWER-In its most common usage refers to circumstances in which an insurance company tries to recoup expenses for a claim it paid out when another company should have been responsible for paying at least a portion of that claim. CIRMS - ANSWER-Community Insurance and Risk Management Specialist. Insurance replacement cost - ANSWER-The cost to replace property that can be insured and it would exclude the land, foundations, underground piping and other components not typically insurable. Directors and Officers liability insurance - ANSWER-This insurance is designed to pay for damages arising from wrongful acts that do not lead to property damage, bodily injury, advertising injury or personal injury. Direct writer system of insurance - ANSWER-Comprised of employees of a single insurance company who only place the insurance of that company.