1|Page
M100 COMMUNITY ASSOCIATION MANAGEMENT EXAM LATEST
2026-2027 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Which of the following types of exposure to loss for a community
association is characterized by net losses that may involve a
reduction in income or an increase in operating expenses or
both?
a. property exposure to loss
b. liability exposure to loss
c. income exposure to loss
d. personnel exposure to loss - ANSWER-c. income exposure to
loss
There are four types of accidental loss to which a community
association is exposed. Income exposure to loss are net
losses that may involve a reduction in income or an increase
in operating expenses or both.
Which of the following demonstrates the risk control technique of
exposure avoidance?
,2|Page
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.
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
,3|Page
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 system include Allstate, Farmers, Nationwide,
and State Farm.
, 4|Page
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
M100 COMMUNITY ASSOCIATION MANAGEMENT EXAM LATEST
2026-2027 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Which of the following types of exposure to loss for a community
association is characterized by net losses that may involve a
reduction in income or an increase in operating expenses or
both?
a. property exposure to loss
b. liability exposure to loss
c. income exposure to loss
d. personnel exposure to loss - ANSWER-c. income exposure to
loss
There are four types of accidental loss to which a community
association is exposed. Income exposure to loss are net
losses that may involve a reduction in income or an increase
in operating expenses or both.
Which of the following demonstrates the risk control technique of
exposure avoidance?
,2|Page
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.
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
,3|Page
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 system include Allstate, Farmers, Nationwide,
and State Farm.
, 4|Page
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
