CCS CCS Condominium Insurance & Risk Management

Question 1

Which type of condominium insurance policy covers all-in, including unit fixtures and improvements, under one master policy?

Accepted Answer

All-in policy

Answer

Bare walls-in policy

Answer

Single entity policy

Answer

Special form policy

Question 2

What does a 'bare walls-in' condominium master policy typically cover?

Accepted Answer

Only the common areas and building exterior, not unit interiors

Answer

All fixtures and appliances inside each unit

Answer

Personal property of unit owners

Answer

Loss of use for all residents

Question 3

Which coverage protects a condominium association against lawsuits alleging wrongful acts by board members or officers?

Accepted Answer

Directors and Officers (D&O) liability insurance

Answer

General liability insurance

Answer

Workers' compensation insurance

Answer

Umbrella liability policy

Question 4

A condominium association's fidelity bond (crime insurance) primarily protects against:

Accepted Answer

Fraudulent acts or theft by association employees or board members

Answer

Fire damage to common areas

Answer

Slip-and-fall accidents on common property

Answer

Structural defects in the building

Question 5

What is the purpose of loss assessment coverage in a unit owner's HO-6 policy?

Accepted Answer

To cover special assessments levied on the owner after a loss the master policy doesn't fully cover

Answer

To pay for the owner's personal property losses

Answer

To insure structural improvements made by the owner

Answer

To provide liability coverage for guests in the unit

Question 6

Which factor most directly influences the replacement cost calculation used to set a condominium building's insured value?

Accepted Answer

Cost per square foot to rebuild the structure to current construction standards

Answer

Current market sale price of units

Answer

Assessed tax value of the property

Answer

Outstanding mortgage balances on all units