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M100 Community Association Management Exam
2025 – Study Guide, Practice Test, and Key Concepts
for CAM Certification
Prepare for your M100 Community Association Management Exam with this 2025 study
guide and practice test. Learn essential topics in governance, financial management, operations,
legal principles, and community leadership to excel in the M100 course and earn your CAM
certification.
M100 Community Association Management exam 2025
M100 CAI exam
Community association management course exam
M100 study guide PDF
True or false. The preservation of life and property are paramount concerns in any insurance contract -
ANSWER-True
There are certain important things to consider when filing insurance claims. Included among these are
that every insurance contract has its own requirements for filing claims, any possible claim that could
have an adverse economic impact on the community association should be reported to the insurer,
claims may require the filing of formal proofs of loss, and the preservation of life and property are
paramount concerns in any insurance contract.
Complete the following sentence: For a community association, _____________ is the process of
operating, maintaining, repairing, and replacing common property.
a. preventative maintenance
b. facilities management
,2|Page
c. maintenance record
d. scheduled replacement - ANSWER-b. facilities management
Facilities management is the process of operating, maintaining, repairing, and replacing common
property, and for a community association, that includes the common elements or areas.
True or false. One of the goals of maintenance for a community association is to limit injury to residents,
guests, and employees. - ANSWER-True
Maintenance has three major goals in a community association. These include to meet the needs of the
individual residents, to preserve and enhance the common property, and to limit injury to residents,
guests, and employees.
Each of the following include steps in establishing a maintenance system for a community association
EXCEPT:
a. assign blame to staff not adequately fulfilling maintenance responsibilities
b. develop maintenance management controls
c. analyze your assets' maintenance needs
d. evaluate your maintenance system and efforts - ANSWER-a. assign blame to staff not adequately
fulfilling maintenance responsibilities
There are five steps in establishing a maintenance system for a community association. These involve
developing maintenance management controls, identifying the physical assets to maintain, analyzing
your assets' maintenance needs, establishing five basic maintenance programs, and evaluating your
maintenance system and efforts. Assigning blame to staff not adequately fulfilling maintenance
responsibilities is not included among these steps.
Which of the following demonstrates the risk control technique of exposure avoidance?
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
,3|Page
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 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.
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.
, 4|Page
True or false. The Federal National Mortgage Association (FannieMae) has a direct impact on community
association insurance obligations. - ANSWER-True
The Federal National Mortgage Association (FannieMae) and the Federal Home Loan Mortgage
Corporation (FreddieMac) are government sponsored enterprise, or GSEs. Both GSEs buy mortgages
from lenders and in doing so require certain types of insurance to be in place, thus impacting
community association insurance obligations.
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 - ANSWER-d. hired and non-owned automobile
liability insurance
Common insurance coverages and endorsements for property exposures to loss include commercial
package policy insurance, boiler and machinery insurance, building ordinance insurance, flood
insurance, and electronic data processing. Hired and non-owned automobile liability insurance, a
common insurance coverage and endorsement for liability exposures to loss, covers legal claims arising
out of the use of automobiles that are not owned by the community association, but that are used while
acting on behalf of the association.
True or false. Employers' liability insurance provides protection for claims made by injured employees,
such as third-party-over actions and dual capacity actions - ANSWER-True
Employers' liability provides protection for claims made by injured employees (and their spouses) for
certain types of liability that is excluded in the CGL, such as third-party-over actions, dual capacity
actions, and so forth. Every community association should consider obtaining employers' liability
insurance.
Which terminology for the following homeowner policies is for a condominium or cooperative unit
owner?
M100 Community Association Management Exam
2025 – Study Guide, Practice Test, and Key Concepts
for CAM Certification
Prepare for your M100 Community Association Management Exam with this 2025 study
guide and practice test. Learn essential topics in governance, financial management, operations,
legal principles, and community leadership to excel in the M100 course and earn your CAM
certification.
M100 Community Association Management exam 2025
M100 CAI exam
Community association management course exam
M100 study guide PDF
True or false. The preservation of life and property are paramount concerns in any insurance contract -
ANSWER-True
There are certain important things to consider when filing insurance claims. Included among these are
that every insurance contract has its own requirements for filing claims, any possible claim that could
have an adverse economic impact on the community association should be reported to the insurer,
claims may require the filing of formal proofs of loss, and the preservation of life and property are
paramount concerns in any insurance contract.
Complete the following sentence: For a community association, _____________ is the process of
operating, maintaining, repairing, and replacing common property.
a. preventative maintenance
b. facilities management
,2|Page
c. maintenance record
d. scheduled replacement - ANSWER-b. facilities management
Facilities management is the process of operating, maintaining, repairing, and replacing common
property, and for a community association, that includes the common elements or areas.
True or false. One of the goals of maintenance for a community association is to limit injury to residents,
guests, and employees. - ANSWER-True
Maintenance has three major goals in a community association. These include to meet the needs of the
individual residents, to preserve and enhance the common property, and to limit injury to residents,
guests, and employees.
Each of the following include steps in establishing a maintenance system for a community association
EXCEPT:
a. assign blame to staff not adequately fulfilling maintenance responsibilities
b. develop maintenance management controls
c. analyze your assets' maintenance needs
d. evaluate your maintenance system and efforts - ANSWER-a. assign blame to staff not adequately
fulfilling maintenance responsibilities
There are five steps in establishing a maintenance system for a community association. These involve
developing maintenance management controls, identifying the physical assets to maintain, analyzing
your assets' maintenance needs, establishing five basic maintenance programs, and evaluating your
maintenance system and efforts. Assigning blame to staff not adequately fulfilling maintenance
responsibilities is not included among these steps.
Which of the following demonstrates the risk control technique of exposure avoidance?
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
,3|Page
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 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.
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.
, 4|Page
True or false. The Federal National Mortgage Association (FannieMae) has a direct impact on community
association insurance obligations. - ANSWER-True
The Federal National Mortgage Association (FannieMae) and the Federal Home Loan Mortgage
Corporation (FreddieMac) are government sponsored enterprise, or GSEs. Both GSEs buy mortgages
from lenders and in doing so require certain types of insurance to be in place, thus impacting
community association insurance obligations.
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 - ANSWER-d. hired and non-owned automobile
liability insurance
Common insurance coverages and endorsements for property exposures to loss include commercial
package policy insurance, boiler and machinery insurance, building ordinance insurance, flood
insurance, and electronic data processing. Hired and non-owned automobile liability insurance, a
common insurance coverage and endorsement for liability exposures to loss, covers legal claims arising
out of the use of automobiles that are not owned by the community association, but that are used while
acting on behalf of the association.
True or false. Employers' liability insurance provides protection for claims made by injured employees,
such as third-party-over actions and dual capacity actions - ANSWER-True
Employers' liability provides protection for claims made by injured employees (and their spouses) for
certain types of liability that is excluded in the CGL, such as third-party-over actions, dual capacity
actions, and so forth. Every community association should consider obtaining employers' liability
insurance.
Which terminology for the following homeowner policies is for a condominium or cooperative unit
owner?
