1
CMCA EXAM STUDY GUIDE QUESTIONS
AND CORRECT ANSWERS
Aggregate - correct-answer -a maximum amount an insurer will reimburse a
policyholder for all covered losses during a set time period, usually one year.
Risk Management - correct-answer -Identifying, assessing, responding to risk by
reducing, removing, and insuring threats
Risk Inventory - correct-answer -Contacts, resources, areas to inspect & keep
record of
Immediate exposers to risk - correct-answer -Severe weather, deficiencies,
negligence
Speed of Response - correct-answer -Authorization, information, money,
equipment, personnel, schedule
, 2
Types of Exposure - correct-answer -Property, Net Income, Liability, Personnel
Property Exposures - correct-answer -physical damages to property
Net Income exposures - correct-answer -Unexpected increase in cost/money
Personnel Exposures - correct-answer -death, retirement, resignation
Liability Exposures - correct-answer -3rd party claims against association. (worker
injured and suing ex)
Liability Insurance Coverages - correct-answer -Bodily injury, property damage,
personnel injury (said/did), advertising injury (written/published)
D&O Insurance - correct-answer -Wrongful acts by association/board, negligence,
omission, monetary (devalued), non-monetary(freedom)
, 3
Community Manager role in Risk Responsibility - correct-answer -Identify, review,
monitor risk, inform Board, oversee insurance.
Insurance Agent - correct-answer -sells insurance, works for single carrier
Insurance broker - correct-answer -Sells insurance, works with multiple carriers
Loss Frequency - correct-answer -Number of times loss may occur
Loss Severity - correct-answer -expected $ loss from event.
Risk Control - correct-answer -reduce or eliminate exposure
Risk Financing - correct-answer -Options to cover $ of loss
Exposure avoidance - correct-answer -eliminating chance of loss
, 4
Loss Prevention - correct-answer -reducing likelihood of loss (training, inspections)
Loss Reduction - correct-answer -reducing severity of loss (fire sprinkler)
Contractual Transfer - correct-answer -shift loss from association to other (ex.
vendor, insurance)
Risk Retention - correct-answer -association finds way to pay for losses
Risk Transfer - correct-answer -association finds way to transfer responsibility to
another party
Funding to pay for losses: Current expensing - correct-answer -shifting cost from
one GL to another
CMCA EXAM STUDY GUIDE QUESTIONS
AND CORRECT ANSWERS
Aggregate - correct-answer -a maximum amount an insurer will reimburse a
policyholder for all covered losses during a set time period, usually one year.
Risk Management - correct-answer -Identifying, assessing, responding to risk by
reducing, removing, and insuring threats
Risk Inventory - correct-answer -Contacts, resources, areas to inspect & keep
record of
Immediate exposers to risk - correct-answer -Severe weather, deficiencies,
negligence
Speed of Response - correct-answer -Authorization, information, money,
equipment, personnel, schedule
, 2
Types of Exposure - correct-answer -Property, Net Income, Liability, Personnel
Property Exposures - correct-answer -physical damages to property
Net Income exposures - correct-answer -Unexpected increase in cost/money
Personnel Exposures - correct-answer -death, retirement, resignation
Liability Exposures - correct-answer -3rd party claims against association. (worker
injured and suing ex)
Liability Insurance Coverages - correct-answer -Bodily injury, property damage,
personnel injury (said/did), advertising injury (written/published)
D&O Insurance - correct-answer -Wrongful acts by association/board, negligence,
omission, monetary (devalued), non-monetary(freedom)
, 3
Community Manager role in Risk Responsibility - correct-answer -Identify, review,
monitor risk, inform Board, oversee insurance.
Insurance Agent - correct-answer -sells insurance, works for single carrier
Insurance broker - correct-answer -Sells insurance, works with multiple carriers
Loss Frequency - correct-answer -Number of times loss may occur
Loss Severity - correct-answer -expected $ loss from event.
Risk Control - correct-answer -reduce or eliminate exposure
Risk Financing - correct-answer -Options to cover $ of loss
Exposure avoidance - correct-answer -eliminating chance of loss
, 4
Loss Prevention - correct-answer -reducing likelihood of loss (training, inspections)
Loss Reduction - correct-answer -reducing severity of loss (fire sprinkler)
Contractual Transfer - correct-answer -shift loss from association to other (ex.
vendor, insurance)
Risk Retention - correct-answer -association finds way to pay for losses
Risk Transfer - correct-answer -association finds way to transfer responsibility to
another party
Funding to pay for losses: Current expensing - correct-answer -shifting cost from
one GL to another
