CMCA ACTUAL EXAM QUESTIONS AND ANSWERS
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2025/2026
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
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)
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
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
Funding to pay for losses: Funded Reserve - CORRECT ANSWER pull from
reserves to cover cost
Funding to pay for losses: Unfunded expense. - CORRECT ANSWER Special
assessment to cover cost
Funding to pay for losses: Borrowing - CORRECT ANSWER Taking out a
loan/credit to cover expense
, Decision Matrix: Risk Retention - CORRECT ANSWER Low frequency, low
severity
Decision Matrix: Risk Transfer - CORRECT ANSWER Low frequency, High
severity
Decision Matrix: Risk Control - CORRECT ANSWER High frequency, low
severity
Decision Matrix: Combination - CORRECT ANSWER High frequency, High
severity
Screening Bidders for Insurance - CORRECT ANSWER Policies tailored to your
needs, HOA experience, carrier ratings.
RFP Components for Insurance - CORRECT ANSWER Intro, contacts,
instruction/timing for submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - CORRECT ANSWER primarily for large projects, bid specs, inform on
association, work conditions, surveys/outline job, dates, warranty reqs
BBB - CORRECT ANSWER Better Business Bureau
RFP Contract provisions - CORRECT ANSWER -parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
UPDATE 2025/2026
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
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)
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
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
Funding to pay for losses: Funded Reserve - CORRECT ANSWER pull from
reserves to cover cost
Funding to pay for losses: Unfunded expense. - CORRECT ANSWER Special
assessment to cover cost
Funding to pay for losses: Borrowing - CORRECT ANSWER Taking out a
loan/credit to cover expense
, Decision Matrix: Risk Retention - CORRECT ANSWER Low frequency, low
severity
Decision Matrix: Risk Transfer - CORRECT ANSWER Low frequency, High
severity
Decision Matrix: Risk Control - CORRECT ANSWER High frequency, low
severity
Decision Matrix: Combination - CORRECT ANSWER High frequency, High
severity
Screening Bidders for Insurance - CORRECT ANSWER Policies tailored to your
needs, HOA experience, carrier ratings.
RFP Components for Insurance - CORRECT ANSWER Intro, contacts,
instruction/timing for submission, bid specs, fact sheet HOA, Gov Docs, Loss runs.
RFP - CORRECT ANSWER primarily for large projects, bid specs, inform on
association, work conditions, surveys/outline job, dates, warranty reqs
BBB - CORRECT ANSWER Better Business Bureau
RFP Contract provisions - CORRECT ANSWER -parties involved
-scope of work
-compensation, time period
-warranty, indemnification, insurance
-permits/license
