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CCS Condominium Insurance & Risk Management Flashcards

6 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CCS Condominium Insurance & Risk Management flashcards as text

  1. Condominium associations in flood-prone areas are typically required to purchase flood insurance through which program?

    Answer: The National Flood Insurance Program (NFIP)

    The National Flood Insurance Program (NFIP), administered by FEMA, is the primary source of flood insurance for condominiums in participating communities.

  2. What is coinsurance in the context of a condominium association's property insurance policy?

    Answer: A penalty applied when the insured carries less than the required percentage of the property's replacement value

    Coinsurance requires the association to insure the property to a specified percentage (typically 80–100%) of replacement value or face a penalty reducing claim payouts.

  3. Which liability coverage is essential for a condominium association that operates a pool or fitness center on common property?

    Answer: Commercial general liability (CGL) insurance

    Commercial general liability insurance covers bodily injury and property damage claims arising from accidents on common areas such as pools and fitness centers.

  4. An association's insurance deductible for hurricane damage is often expressed as a percentage rather than a flat dollar amount. This percentage is applied to:

    Answer: The insured replacement value of the building

    Hurricane (wind/hail) percentage deductibles are applied to the total insured replacement value of the building, which can result in very large deductible amounts.

  5. What risk management strategy involves the association retaining financial risk internally rather than transferring it to an insurer?

    Answer: Risk retention (self-insurance)

    Risk retention means the association accepts financial responsibility for certain losses, often using reserves or a self-insurance fund instead of purchasing insurance.

  6. Which document provided by the insurer outlines all coverage terms, exclusions, and conditions of the condominium master policy?

    Answer: Insurance policy jacket (policy form)

    The full insurance policy jacket contains the complete terms, conditions, exclusions, and endorsements that govern coverage, whereas the declarations page is only a summary.