CMCA Knowledge 4

Question 1

An association's insurance policy that covers claims arising from board members' decisions in managing the association is called:

Accepted Answer

Directors and Officers (D&O) liability insurance

Answer

Directors and Officers (D&O) insurance protects board members from personal liability arising from their management decisions.

Question 2

When is a quorum required in a community association board meeting?

Accepted Answer

Whenever the board takes any official action or passes a resolution

Answer

A quorum — the minimum number of members needed to conduct business — is required before the board can officially act on any matter.

Question 3

Under the FHA's Housing for Older Persons Act (HOPA), a community may lawfully restrict residency to persons 55 and older if:

Accepted Answer

At least 51% of units are occupied by a person 55 or older and the community publishes and follows policies demonstrating intent to be 55+ housing

Answer

HOPA requires that at least 80% of occupied units have one resident 55+, and the community must publish and adhere to policies demonstrating its senior housing intent.

Question 4

A fidelity bond (employee dishonesty coverage) in a community association context primarily protects against:

Accepted Answer

Theft or fraud by employees or board members who handle association funds

Answer

A fidelity bond covers financial losses due to dishonest acts, such as embezzlement, by those who handle the association's funds.

Question 5

Which of the following is typically considered a limited common element in a condominium?

Accepted Answer

A balcony attached to and exclusively serving one unit

Answer

A limited common element is a portion of the common area reserved for the exclusive use of one or more, but not all, unit owners.

CMCA - Certified Manager of Community Associations Practice Test

CMCA - Certified Manager of Community Associations Practice Test

CMCA Knowledge 4