M100 Community Association Management Exam - Questions, Answers and Rationales Which of the following is not a common insurance coverage and endorsement
... [Show More] for property exposures to loss? a. commercial package policy (CPP) insurance b. boiler and machinery insurance c. flood insurance d. hired and non-owned automobile liability insurance Common insurance coverages and endorsements for property exposures to loss include commercial package policy insurance, boiler and machinery insurance, building ordinance insurance, flood insurance, and electronic data processing. Hired and non-owned automobile liability insurance, a common insurance coverage and endorsement for liability exposures to loss, covers legal claims arising out of the use of automobiles that are not owned by the community association, but that are used while acting on behalf of the association. True or false. Employers' liability insurance provides protection for claims made by injured employees, such as third-party-over actions and dual capacity actions True Employers' liability provides protection for claims made by injured employees (and their spouses) for certain types of liability that is excluded in the CGL, such as third-party-over actions, dual capacity actions, and so forth. Every community association should consider obtaining employers' liability insurance. Which terminology for the following homeowner policies is for a condominium or cooperative unit owner? a. HO-6 b. HO-4 c. HO-1 d. HO-1 Terminology varies with insurer, but homeowner (HO) policies are usually referred to by the following numbers: HO-1, HO-2, HO-3, and HO-5 refer to policies for owner-occupied units, HO-4 is a tenant's policy, and HO-6 is a policy for a condominium or cooperative unit owner. True or false. The preservation of life and property are paramount concerns in any insurance contract True There are certain important things to consider when filing insurance claims. Included among these are that every insurance contract has its own requirements for filing claims, any possible claim that could have an adverse economic impact on the community association should be reported to the insurer, claims may require the filing of formal proofs of loss, and the preservation of life and property are paramount concerns in any insurance contract. Complete the following sentence: For a community association, _____________ is the process of operating, maintaining, repairing, and replacing common property. a. preventative maintenance b. facilities management c. maintenance record d. scheduled replacement Facilities management is the process of operating, maintaining, repairing, and replacing common property, and for a community association, that includes the common elements or areas. True or false. One of the goals of maintenance for a community association is to limit injury to residents, guests, and employees. True Maintenance has three major goals in a community association. These include to meet the needs of the individual residents, to preserve and enhance the common property, and to limit injury to residents, guests, and employees. Each of the following include steps in establishing a maintenance system for a community association EXCEPT: a. assign blame to staff not adequately fulfilling maintenance responsibilities b. develop maintenance management controls c. analyze your assets' maintenance needs d. evaluate your maintenance system and efforts There are five steps in establishing a maintenance system for a community association. These involve developing maintenance management controls, identifying the physical assets to maintain, analyzing your assets' maintenance needs, establishing five basic maintenance programs, and evaluating your maintenance system and efforts. Assigning blame to staff not adequately fulfilling maintenance responsibilities is not included among these steps. Which of the following is not an example of a maintenance management control? a. work orders b. charts of information c. response forms d. public offering statements A management control is any means used to track, record, remind, or command attention. Usually these means are forms or documents. Examples of maintenance management controls include checklists, charts of information, calendars or schedules, records of actions taken, inventories, work orders, request forms, and response forms. Effective maintenance cannot occur without management controls. The public offering statement is simply a disclosure statement that provides information on the community association to prospective buyers. It is also mandated by state statute. True or false. The declaration or master deed often includes a maintenance schedule for particular assets. True Managers should research legal documents to identify the physical assets their community association is responsible for maintaining. State statutes, board resolutions, and governing documents all often discuss maintenance of physical assets. In particular, the declaration or master deed will frequently include a maintenance schedule for particular assets. Complete the following sentence: The typical management control used to identify physical assets and their maintenance needs is a(n) ____________. a. inspection report b. inspection checklist c. maintenance record d. inventory The typical management control used to identify physical assets and their maintenance needs is an inventory. This is a record of all real and personal physical property owned and maintained by the community association. Inventories usually record date of purchase, warranty, quantity, description, original installer/ builder or service contractor, extended warranty and provider, cost, special maintenance needs, and estimated replacement data. To identify what maintenance must be done, managers should record the following information for every physical asset EXCEPT: a. preventive and emergency plans needed b. contact information for each board member c. description of the asset from a maintenance point of view d. what maintenance needs to be done To identify what maintenance must be done for every physical asset, managers should record description of the asset from a maintenance point of view, what maintenance needs to be done, how often, how long it will take, criteria for satisfactory maintenance, and preventive and emergency plans needed. Much of this information can be obtained by conducting an inventory of a community's physical assets. Another source of this information is in the appropriate section of a community association's service contract, which specifies the scope of work to be done. True or false. A management control used to keep track of who is responsible for the maintenance of various property elements or areas is the analysis sheet False The responsibility chart is a management control used to keep track of who is responsible for the maintenance of various property elements or areas. It commonly is used as a handout for owners and tenants. Typical responsible parties include the owner, the association, the developer, a committee, or a manufacturer. A facilities / equipment analysis sheet is an appropriate management control to record what maintenance needs to be done. Cleaning problem sewer lines every month to avoid backups is an example of which of the following types of maintenance? a. emergency services maintenance b. requested or corrective maintenance c. routine maintenance d. preventive maintenance Preventive maintenance is periodic maintenance to avoid disruptive breakdowns and to prolong the useful life of the physical asset in question. Literature from the manufacturer is one of the best sources of information on preventive maintenance for equipment. Examples of preventive maintenance include rebuilding pool pumps with a life expectancy of eight years every five years and cleaning problem sewer lines every month to avoid backups. True or false. Surveying residents is a common method community association managers use to evaluate their maintenance systems and implementation efforts. True Surveying residents—either periodically or at the time their maintenance request has been handled—is a common method used by community association managers to evaluate their maintenance systems and implementation efforts. Other common methods include having the board of directors fill out a "report card" that addresses the basic maintenance programs in specific terms, reviewing budget costs for the previous year, reviewing all maintenance work orders, physically inspecting the property, and visiting other similar community associations to obtain a first-hand comparison or self-check. [Show Less]