CAM Risk Assessment and Management 2 — Questions and Answers
Question 1: A property manager discovers black mold in three apartment units after a pipe burst. What is the FIRST priority action?
- Document the mold with photos and notify the owner
- Relocate affected residents immediately and begin remediation (Correct answer)
- Post notices on the affected unit doors
- Contact the insurance company to file a claim
Correct answer: Relocate affected residents immediately and begin remediation
Resident safety is the top priority, requiring immediate relocation before remediation begins.
Question 2: Which type of insurance covers property damage caused by a tenant's negligence?
- Commercial general liability
- Loss of rents insurance
- Property owner's casualty policy
- Tenant's renter's insurance (Correct answer)
Correct answer: Tenant's renter's insurance
Renter's insurance (tenant's personal liability policy) covers damage the tenant causes to the property.
Question 3: When conducting a slip-and-fall risk assessment in a parking lot, which hazard should be prioritized during winter months?
- Faded parking lot striping
- Inadequate lighting near entrances
- Ice and snow accumulation on walkways (Correct answer)
- Potholes near the dumpster area
Correct answer: Ice and snow accumulation on walkways
Ice and snow accumulation is the most acute and immediate slip-and-fall hazard in winter conditions.
Question 4: A CAM manager is reviewing the property's risk register. What does a 'high likelihood, high severity' risk classification require?
- Acceptance and monitoring only
- Immediate mitigation or control measures (Correct answer)
- Transfer to insurance carrier only
- Documentation for annual review
Correct answer: Immediate mitigation or control measures
Risks rated high on both likelihood and severity demand immediate mitigation to protect residents and the property.
Question 5: Which clause in a lease agreement protects the property owner when a resident is injured due to their own negligence?
- Subrogation waiver
- Indemnification clause
- Hold harmless clause (Correct answer)
- Exculpatory clause
Correct answer: Hold harmless clause
A hold harmless clause releases the property owner from liability for injuries resulting from the resident's own negligence.
Question 6: A property experiences a bedbug infestation reported in multiple units. Under a risk management framework, this is best classified as which type of risk?
- Strategic risk
- Operational risk (Correct answer)
- Financial risk
- Compliance risk
Correct answer: Operational risk
Bedbug infestations are operational risks tied to day-to-day property management processes.
Question 7: What is the purpose of a Certificate of Insurance (COI) collected from vendors before they begin work on a property?
- To verify the vendor has paid their taxes
- To confirm the vendor carries adequate liability coverage (Correct answer)
- To establish the vendor's hourly rate
- To document the vendor's business license number
Correct answer: To confirm the vendor carries adequate liability coverage
A COI confirms the vendor's insurance is active and sufficient, protecting the property owner from liability for vendor-related incidents.
CAM Risk Assessment and Management 2
A property manager discovers black mold in three apartment units after a pipe burst.
What is the FIRST priority action?