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CMCA Practice Test Questions (Under Construction) (Verified Answers by Expert) 1.Which of the following is a common management control for ensuring maintenance work is performed in a timely manner?A.A purchase order system B.An equipment warranties C.A work order/response form
D.A contractor's invoice: C. A work order/response form - A, B, and D
speak to elements OTHER than a control to ensure maintenance work is completed.
2.The primary management control tool for identifying whether the
associ- ation needs to maintain a particular property element is:
A.Physical inspections B.Association bylaws C.Maintenance responsibility chart
D.Community asset inventory: C. Maintenance responsibility chart
along, with the governing documents, defines parameters of association maintenance respon- sibility.The other answers have no bearing on necessity of maintenance or 1 / 4
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maintenance responsibility.
3.In what type of a contract would a waiver of lien by recommended?A.Repair of the HVAC system B.Re-roofing the buildings C.Repair of the pool pump
D.Annual tree pruning: B. Re-roofing the buildings - Large contracts
involving significant material purchase and/or use of sub-contractors commonly include lien waivers and should be recommended to the board.A, C, and D typically do not include significant material purchases or the use of sub-contractors so a waiver of lien is not necessary.
4.What does "Co-Insurance" obligate the Association to do?A.Pay the deductible B.Maintain certain limits of insurance C.Cover the depreciated value of all association buildings
D.Provide insurance for homeowners: B. Maintain certain limits of
insurance - Co-insurance seeks to the limits of insurance in place at the time of a loss and 2 / 4
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speaks to insurance obligation for the parties involved in the claim.Co-insurance does not obligate the Association to pay a deductible.Provides no obligation to provide insurance for homeowners.
5.When an association contracts out all of its services and has no
employ- ees, it is a best business practice to:
A.Negotiate contracts within the bidding process.B.Purchase employment practices liability insurance.C.Assume the contractors carry their own insurance coverage.
D.Increase the coverage under the D&O insurance policy.: A. Negotiate
con- tracts within the bidding process.
Incorrect Answers:
B.Employment practices liability insurance is typically purchased by an association that has employees to provide coverage against certain types of claims by those employees, and usually accompanies a workers compensation insurance policy.C.The association MUST NEVER assume that contractors carry their own insur- ance coverage and should require all contractors to provide evidence of insurance.D.D&O insurance policies is designed to pay for wrongful acts that do not lead to property damage (PD), bodily injury (BI), personal injury 3 / 4
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(PI), or advertising injury (AI); an example of a claim for coverage under D&O would be if a board of directors is accused of not uniformly enforcing rules or covenants. Therefore, it is unlikely that the services of independent contractors would lead to claims under D&O.
6.If an owner fails to receive notice of a meeting, the association is
not responsible if the owner:
A.Did not notify association of their current address.B.Does not usually attend the meetings.C.Already signed the petition to call the meeting.
D.Shares title with multiple owners.: A. Did not notify association of their
current address. It is the owner's responsibility to provide current contact information to Management.
Incorrect:
B.The duty to notify all owners of meetings belongs to the Board, which is often delegated to Management.
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