CMCA PRACTICE 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
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 - correct
answer-D
True or false: employers' liability insurance provides protection
for claims made by employees regarding sexual harassment or
discrimination. - correct answer-T
Which terminology for the following homeowner policies is for a
condominium or cooperative unit owner?
a. HO-6
b. HO-4
c. HO-1
,d. HO-2 - correct answer-A
True or false: the preservation of life and property are
paramount concerns in any insurance contract. - correct
answer-T
Each of the following legal courses specify management
authority and responsibilities for community associations
except:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions - correct answer-A
True or false: the basic authority in a community association
lies with the developer. - correct answer-F
Complete the following sentence: the board of directors in a
community association has a _____________ to act in the best
interests and for the benefit of the community as a whole.
a. bond
b. fiduciary duty
,c. ballot
d. quorum - correct answer-B
True or false: the "business judgment rule" means that if a
board has exercised reasonable business judgment in making
a decision, the court will generally not consider the board
negligent in its fiduciary duty. - correct answer-T
Which of the following types of community association
committees typically is assigned responsibilities related to
elections, nominations, and architectural standards?
a. standing committees
b. professional committees
c. ad hoc committes
d. mandatory committees - correct answer-D
True or false: the role of the professional community
association manager is to make all decisions for the association
and to delegate information gathering and fact-finding support
to the board of directors. - correct answer-F
, In which of the following forms of community association
management is the association managed by the board itself or
by committees under the direction of the board?
a. management company
b. volunteer or self-management
c. association-employed manager
d. municipal management - correct answer-B
True or false: an increase in assessment delinquencies that is
not due to poor economy may be an example of a warning sign
of a weak management situation. - correct answer-T
Complete the following sentence: a _______________ is a
statement of goals and objectives approved by the board that
includes the yearly cycle of tasks that management should
perform on the community association's behalf.
a. management audit
b. management contract
c. management plan
d. employment agreement - correct answer-C
Which of the following responsibilities relate to the governance
function of a community association board of directors?
QUESTIONS WITH VERIFIED
ANSWERS.
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 - correct
answer-D
True or false: employers' liability insurance provides protection
for claims made by employees regarding sexual harassment or
discrimination. - correct answer-T
Which terminology for the following homeowner policies is for a
condominium or cooperative unit owner?
a. HO-6
b. HO-4
c. HO-1
,d. HO-2 - correct answer-A
True or false: the preservation of life and property are
paramount concerns in any insurance contract. - correct
answer-T
Each of the following legal courses specify management
authority and responsibilities for community associations
except:
a. survey data
b. state statutes
c. community association governing documents
d. court decisions - correct answer-A
True or false: the basic authority in a community association
lies with the developer. - correct answer-F
Complete the following sentence: the board of directors in a
community association has a _____________ to act in the best
interests and for the benefit of the community as a whole.
a. bond
b. fiduciary duty
,c. ballot
d. quorum - correct answer-B
True or false: the "business judgment rule" means that if a
board has exercised reasonable business judgment in making
a decision, the court will generally not consider the board
negligent in its fiduciary duty. - correct answer-T
Which of the following types of community association
committees typically is assigned responsibilities related to
elections, nominations, and architectural standards?
a. standing committees
b. professional committees
c. ad hoc committes
d. mandatory committees - correct answer-D
True or false: the role of the professional community
association manager is to make all decisions for the association
and to delegate information gathering and fact-finding support
to the board of directors. - correct answer-F
, In which of the following forms of community association
management is the association managed by the board itself or
by committees under the direction of the board?
a. management company
b. volunteer or self-management
c. association-employed manager
d. municipal management - correct answer-B
True or false: an increase in assessment delinquencies that is
not due to poor economy may be an example of a warning sign
of a weak management situation. - correct answer-T
Complete the following sentence: a _______________ is a
statement of goals and objectives approved by the board that
includes the yearly cycle of tasks that management should
perform on the community association's behalf.
a. management audit
b. management contract
c. management plan
d. employment agreement - correct answer-C
Which of the following responsibilities relate to the governance
function of a community association board of directors?
