CMCA EXAM Real Exam Questions and Answers | Guaranteed Verified Answers

CMCA EXAM Real Exam Questions
and Answers | Guaranteed Verified
Answers
• Risk Management -✓✓Identifying, assessing, responding to risk by reducing,
removing, and insuring threats

• Risk Inventory -✓✓Contacts, resources, areas to inspect & keep record of

• Immediate exposers to risk -✓✓Severe weather, deficiencies, negligence

• Speed of Response -✓✓Authorization, information, money, equipment,
personnel, schedule

• Types of Exposure -✓✓Property, Net Income, Liability, Personnel

• Property Exposures -✓✓physical damages to property

• Net Income exposures -✓✓Unexpected increase in cost/money

• Personnel Exposures -✓✓death, retirement, resignation

• Liability Exposures -✓✓3rd party claims against association. (worker injured and
suing ex)

• Liability Insurance Coverages -✓✓Bodily injury, property damage, personnel
injury (said/did), advertising injury (written/published)

• D&O Insurance -✓✓Wrongful acts by association/board, negligence, omission,
monetary (devalued), non-monetary(freedom)

• Community Manager role in Risk Responsibility -✓✓Identify, review, monitor
risk, inform Board, oversee insurance.

• Insurance Agent -✓✓sells insurance, works for single carrier

,• Insurance broker -✓✓Sells insurance, works with multiple carriers

• Loss Frequency -✓✓Number of times loss may occur

• Loss Severity -✓✓expected $ loss from event.

• Risk Control -✓✓reduce or eliminate exposure

• Risk Financing -✓✓Options to cover $ of loss

• Exposure avoidance -✓✓eliminating chance of loss

• Loss Prevention -✓✓reducing likelihood of loss (training, inspections)

• Loss Reduction -✓✓reducing severity of loss (fire sprinkler)

• Contractual Transfer -✓✓shift loss from association to other (ex. vendor,
insurance)

• Risk Retention -✓✓association finds way to pay for losses

• Risk Transfer -✓✓association finds way to transfer responsibility to another party

• Funding to pay for losses: Current expensing -✓✓shifting cost from one GL to
another

• Funding to pay for losses: Funded Reserve -✓✓pull from reserves to cover cost

• Funding to pay for losses: Unfunded expense. -✓✓Special assessment to cover
cost

• Funding to pay for losses: Borrowing -✓✓Taking out a loan/credit to cover
expense

• Decision Matrix: Risk Retention -✓✓Low frequency, low severity

• Decision Matrix: Risk Transfer -✓✓Low frequency, High severity

, • Decision Matrix: Risk Control -✓✓High frequency, low severity

• Decision Matrix: Combination -✓✓High frequency, High severity

• Screening Bidders for Insurance -✓✓Policies tailored to your needs, HOA
experience, carrier ratings.

• RFP Components for Insurance -✓✓Intro, contacts, instruction/timing for
submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.

• RFP -✓✓primarily for large projects, bid specs, inform on association, work
conditions, surveys/outline job, dates, warranty reqs

• BBB -✓✓Better Business Bureau

• RFP Contract provisions -✓✓-parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
-default financial protection.

• Loss Run -✓✓History of claims on insurance policy

• Insurance proposal: Binding -✓✓carrier gives agent authority to commit to
insuring once association accepts.

• Insurance proposal: Firm -✓✓numbers wont change unless specifications change

• Insurance proposal: Conditional -✓✓all must be declared first

• Insurance Premium Calculation: Property -✓✓Value of building x Rate

• Insurance Premium Calculation: Commercial Gen Liability -✓✓# of units x rate
+ features

• Insurance Premium Calculation: Workers Comp -✓✓Payroll x rate (not fixed)