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M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM AND PRACTICE EXAM WITH REVIEW
QUESTIONS NEWEST 2026 COMPLETE EXAM 300
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||NEWEST EXAM!!!!
Which of the following demonstrates the risk control
technique of exposure avoidance?
a. a community association rule prohibiting the use of
alcohol in the clubhouse
b. conducting weekly fire safety inspections where
flammables are stored
c. contracting for landscape services
d. backing up all computer files and storing the backup
files in a separate place - ANSWER-a. a community
association rule prohibiting the use of alcohol in the
clubhouse
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.
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True or false. The insurance industry is unregulated at the
state level. - ANSWER-False
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
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
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system include Allstate, Farmers, Nationwide, and State
Farm.
Commercial package policies contain all of the following
EXCEPT:
a. common declarations
b. a selection of forms
c. claims made coverage
d. glossaries - ANSWER-c. claims made coverage
Community associations purchase commercial package
policies (CPP), sometimes called "package policies,"
which combine property and liability insurance—and
possibly other insurance coverages. All commercial
package policies contain common declarations, common
policy conditions, a selection of forms, optional
endorsements, and glossaries. Claims made coverage
means that the claim must be made during the period of
policy coverage.
True or false. The Federal National Mortgage Association
(FannieMae) has a direct impact on community
association insurance obligations. - ANSWER-True
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The Federal National Mortgage Association (FannieMae)
and the Federal Home Loan Mortgage Corporation
(FreddieMac) are government sponsored enterprise, or
GSEs. Both GSEs buy mortgages from lenders and in
doing so require certain types of insurance to be in place,
thus impacting community association insurance
obligations.
Which of the following is not a common insurance
coverage and endorsement for property exposures to
loss?
a. commercial package policy (CPP) insurance
b. boiler and machinery insurance
c. flood insurance
d. hired and non-owned automobile liability insurance -
ANSWER-d. hired and non-owned automobile liability
insurance
Common insurance coverages and endorsements for
property exposures to loss include commercial package
policy insurance, boiler and machinery insurance, building
ordinance insurance, flood insurance, and electronic data
processing. Hired and non-owned automobile liability
insurance, a common insurance coverage and
endorsement for liability exposures to loss, covers legal
claims arising out of the use of automobiles that are not
M100 COMMUNITY ASSOCIATION MANAGEMENT
EXAM AND PRACTICE EXAM WITH REVIEW
QUESTIONS NEWEST 2026 COMPLETE EXAM 300
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||NEWEST EXAM!!!!
Which of the following demonstrates the risk control
technique of exposure avoidance?
a. a community association rule prohibiting the use of
alcohol in the clubhouse
b. conducting weekly fire safety inspections where
flammables are stored
c. contracting for landscape services
d. backing up all computer files and storing the backup
files in a separate place - ANSWER-a. a community
association rule prohibiting the use of alcohol in the
clubhouse
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.
,2|Page
True or false. The insurance industry is unregulated at the
state level. - ANSWER-False
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
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
,3|Page
system include Allstate, Farmers, Nationwide, and State
Farm.
Commercial package policies contain all of the following
EXCEPT:
a. common declarations
b. a selection of forms
c. claims made coverage
d. glossaries - ANSWER-c. claims made coverage
Community associations purchase commercial package
policies (CPP), sometimes called "package policies,"
which combine property and liability insurance—and
possibly other insurance coverages. All commercial
package policies contain common declarations, common
policy conditions, a selection of forms, optional
endorsements, and glossaries. Claims made coverage
means that the claim must be made during the period of
policy coverage.
True or false. The Federal National Mortgage Association
(FannieMae) has a direct impact on community
association insurance obligations. - ANSWER-True
, 4|Page
The Federal National Mortgage Association (FannieMae)
and the Federal Home Loan Mortgage Corporation
(FreddieMac) are government sponsored enterprise, or
GSEs. Both GSEs buy mortgages from lenders and in
doing so require certain types of insurance to be in place,
thus impacting community association insurance
obligations.
Which of the following is not a common insurance
coverage and endorsement for property exposures to
loss?
a. commercial package policy (CPP) insurance
b. boiler and machinery insurance
c. flood insurance
d. hired and non-owned automobile liability insurance -
ANSWER-d. hired and non-owned automobile liability
insurance
Common insurance coverages and endorsements for
property exposures to loss include commercial package
policy insurance, boiler and machinery insurance, building
ordinance insurance, flood insurance, and electronic data
processing. Hired and non-owned automobile liability
insurance, a common insurance coverage and
endorsement for liability exposures to loss, covers legal
claims arising out of the use of automobiles that are not
