CCS CCS Condominium Insurance & Risk Management 1

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

An all-in policy covers the building structure plus all original fixtures, installations, and improvements within individual units under the association's master 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

A bare walls-in policy covers only the building structure and common areas, leaving unit owners responsible for insuring everything inside their unit walls.

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

Directors and Officers (D&O) liability insurance protects board members and officers from personal liability arising from decisions made in their official capacity.

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

A fidelity bond covers the association's financial losses caused by dishonest or fraudulent acts committed by employees, volunteers, or board members.

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

Loss assessment coverage pays the unit owner's share of a special assessment levied by the association when a covered loss exceeds the master policy limits.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS CCS Condominium Insurance & Risk Management 1