ILLINOIS COMMUNITY ASSOCIATION MANAGER (CAM) EXAM |
QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS GRADED A+ | LATEST EXAM UPDATE
1. Under the Illinois Condominium Property Act, which document has the
highest legal authority in governing a condominium association?
A. Rules and regulations
B. Bylaws
C. Declaration
D. Board resolutions
Answer: C. The declaration has the highest authority because it is recorded
with the county and establishes ownership interests, use restrictions, and legal
obligations.
2. What percentage of ownership interest is typically used to determine an
owner’s share of common expenses?
A. Equal shares among all units
B. Square footage only
C. Percentage of ownership stated in the declaration
D. Board-determined allocation
Answer: C. Common expenses are allocated according to the percentage of
ownership specified in the declaration, not by board discretion.
3. A board member with a financial interest in a vendor contract must:
A. Vote in favor to avoid liability
B. Abstain from discussion and voting
C. Resign immediately
D. Disclose only if asked
Answer: B. Illinois law and fiduciary duty require disclosure and abstention
to avoid conflicts of interest.
,4. Which reserve study component estimates remaining useful life of major
components?
A. Financial analysis
B. Condition assessment
C. Cash flow projection
D. Funding plan
Answer: B. Condition assessment evaluates physical condition and remaining
useful life of assets.
5. When must an association provide access to records requested by an
owner under Illinois law?
A. Within 10 business days
B. Within 30 calendar days
C. Immediately upon request
D. At the next board meeting
Answer: B. The Illinois Condominium Property Act requires access within 30
calendar days.
6. Which expense is typically classified as a reserve expense?
A. Landscaping contract
B. Insurance premiums
C. Roof replacement
D. Utility bills
Answer: C. Roof replacement is a capital expense with a limited useful life
and should be funded through reserves.
7. A special assessment generally requires approval by:
A. The property manager
B. A majority of unit owners, unless otherwise stated
C. The association attorney
D. The reserve analyst
Answer: B. Special assessments usually require owner approval unless
governing documents allow board authority.
,8. Which insurance policy covers bodily injury occurring in common
areas?
A. Fidelity bond
B. Directors and Officers insurance
C. General liability insurance
D. Workers’ compensation
Answer: C. General liability insurance covers bodily injury and property
damage in common areas.
9. Failure to enforce governing documents uniformly may expose the
association to:
A. Tax penalties
B. Selective enforcement claims
C. Criminal liability
D. Automatic dissolution
Answer: B. Inconsistent enforcement can result in claims of selective
enforcement.
10. What is the primary fiduciary duty of a CAM?
A. Loyalty to individual owners
B. Loyalty to the board president
C. Loyalty to the association
D. Loyalty to vendors
Answer: C. The CAM’s fiduciary responsibility is to act in the best interest of
the association as a whole.
11. Which vote is typically required to amend bylaws?
A. Board majority only
B. Owner majority as stated in documents
C. Unanimous consent
D. Manager approval
Answer: B. Bylaws are amended according to the percentage vote specified in
governing documents.
, 12. Which document defines limited common elements?
A. Rules and regulations
B. Annual budget
C. Declaration
D. Meeting minutes
Answer: C. Limited common elements are defined in the declaration.
13. What accounting method is most commonly used by associations?
A. Accrual accounting
B. Modified accrual accounting
C. Cash accounting
D. Zero-based accounting
Answer: C. Most associations use cash accounting for simplicity, unless
otherwise required.
14. Which action best mitigates fraud risk?
A. Single-signature authority
B. No reserve funding
C. Separation of financial duties
D. Annual social events
Answer: C. Separation of duties reduces fraud risk by preventing one
individual from controlling all financial processes.
15. A CAM who provides legal advice is at risk of:
A. Increased efficiency
B. Unauthorized practice of law
C. Lower insurance premiums
D. Automatic certification
Answer: B. CAMs must avoid providing legal advice unless licensed attorneys.
16. What is the primary purpose of a fidelity bond?
A. Cover natural disasters
B. Protect against theft by employees or volunteers
QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS GRADED A+ | LATEST EXAM UPDATE
1. Under the Illinois Condominium Property Act, which document has the
highest legal authority in governing a condominium association?
A. Rules and regulations
B. Bylaws
C. Declaration
D. Board resolutions
Answer: C. The declaration has the highest authority because it is recorded
with the county and establishes ownership interests, use restrictions, and legal
obligations.
2. What percentage of ownership interest is typically used to determine an
owner’s share of common expenses?
A. Equal shares among all units
B. Square footage only
C. Percentage of ownership stated in the declaration
D. Board-determined allocation
Answer: C. Common expenses are allocated according to the percentage of
ownership specified in the declaration, not by board discretion.
3. A board member with a financial interest in a vendor contract must:
A. Vote in favor to avoid liability
B. Abstain from discussion and voting
C. Resign immediately
D. Disclose only if asked
Answer: B. Illinois law and fiduciary duty require disclosure and abstention
to avoid conflicts of interest.
,4. Which reserve study component estimates remaining useful life of major
components?
A. Financial analysis
B. Condition assessment
C. Cash flow projection
D. Funding plan
Answer: B. Condition assessment evaluates physical condition and remaining
useful life of assets.
5. When must an association provide access to records requested by an
owner under Illinois law?
A. Within 10 business days
B. Within 30 calendar days
C. Immediately upon request
D. At the next board meeting
Answer: B. The Illinois Condominium Property Act requires access within 30
calendar days.
6. Which expense is typically classified as a reserve expense?
A. Landscaping contract
B. Insurance premiums
C. Roof replacement
D. Utility bills
Answer: C. Roof replacement is a capital expense with a limited useful life
and should be funded through reserves.
7. A special assessment generally requires approval by:
A. The property manager
B. A majority of unit owners, unless otherwise stated
C. The association attorney
D. The reserve analyst
Answer: B. Special assessments usually require owner approval unless
governing documents allow board authority.
,8. Which insurance policy covers bodily injury occurring in common
areas?
A. Fidelity bond
B. Directors and Officers insurance
C. General liability insurance
D. Workers’ compensation
Answer: C. General liability insurance covers bodily injury and property
damage in common areas.
9. Failure to enforce governing documents uniformly may expose the
association to:
A. Tax penalties
B. Selective enforcement claims
C. Criminal liability
D. Automatic dissolution
Answer: B. Inconsistent enforcement can result in claims of selective
enforcement.
10. What is the primary fiduciary duty of a CAM?
A. Loyalty to individual owners
B. Loyalty to the board president
C. Loyalty to the association
D. Loyalty to vendors
Answer: C. The CAM’s fiduciary responsibility is to act in the best interest of
the association as a whole.
11. Which vote is typically required to amend bylaws?
A. Board majority only
B. Owner majority as stated in documents
C. Unanimous consent
D. Manager approval
Answer: B. Bylaws are amended according to the percentage vote specified in
governing documents.
, 12. Which document defines limited common elements?
A. Rules and regulations
B. Annual budget
C. Declaration
D. Meeting minutes
Answer: C. Limited common elements are defined in the declaration.
13. What accounting method is most commonly used by associations?
A. Accrual accounting
B. Modified accrual accounting
C. Cash accounting
D. Zero-based accounting
Answer: C. Most associations use cash accounting for simplicity, unless
otherwise required.
14. Which action best mitigates fraud risk?
A. Single-signature authority
B. No reserve funding
C. Separation of financial duties
D. Annual social events
Answer: C. Separation of duties reduces fraud risk by preventing one
individual from controlling all financial processes.
15. A CAM who provides legal advice is at risk of:
A. Increased efficiency
B. Unauthorized practice of law
C. Lower insurance premiums
D. Automatic certification
Answer: B. CAMs must avoid providing legal advice unless licensed attorneys.
16. What is the primary purpose of a fidelity bond?
A. Cover natural disasters
B. Protect against theft by employees or volunteers
