Unit 4: Insurance and Management

Question 1

A contract or transaction between the
association and one or more of its directors
or an entity controlled by one or more
directors.

Answer 1

Conflict of interest

Question 2

A property that offers rentals of less than 1
month.

Answer 2

Public lodging

Question 3

A 16-foot pole used as a life-saving device in
a public swimming pool.

Answer 3

Shepherd’s hook

Question 4

The document that must be framed with a
transparent cover and posted in a
conspicuous location in an elevator.

Answer 4

Certificate of operation

Question 5

A third party hears both sides of a dispute
and decides the case between conflicting
parties who have 30 days to file an appeal
in court.

Answer 5

nonbinding arbitration

Question 6

A third party facilitates a voluntary
settlement between conflicting parties.

Answer 6

Mediation

Question 7

A homeowners’ association dispute
resolution requirement for disputes related
to board election or recall.

Answer 7

Binding arbitration

Question 8

Doing the following for remuneration and
when the association or associations served
contain more than 10 units or have an
annual budget or budgets in excess of
$100,000:
a. controlling or disbursing funds
b. preparing budgets or other financial
documents
c. assisting in noticing or conduct of
community association meetings, and
d. coordinating (supervising) maintenance
and other day-to-day services

Answer 8

Community association management

Question 9

A natural person who is licensed pursuant
to this part to perform community
association management services.

Answer 9

Community association manager

Question 10

A personal history of honesty, fairness, and
respect for the rights of others and for the
laws of this state and nation.

Answer 10

Good moral character

Question 11

The criminal penalty for violation of Chapter
468 Community Association Management.

Answer 11

Second degree misdemeanor

Question 12

The interest an insured has in something
when loss of or damage to that thing would
cause the person to suffer a financial loss.

Answer 12

insurable interest

Question 13

Coverage in which the insured receives the
full cost to replace the lost item without
deduction for depreciation

Answer 13

Replacement cost

Question 14

The coverage against losses from all causes
not specifically excluded in the policy

Answer 14

All risk

Question 15

The policy that covers only losses that result
from causes that are explicitly listed in the
policy.

Answer 15

Named peril

Question 16

The document that provides proof of
insurance coverage.

Answer 16

Certificate of insurance

Question 17

The provider of Florida windstorm and hail
insurance

Answer 17

Citizen’s Property Insurance Program

Question 18

Flood-prone areas are identified by this
organization.

Answer 18

FEMA

Question 19

The bond that covers the association’s
liability as a result of fraudulent or
dishonest acts of officer or employees.

Answer 19

Fidelity bond

Question 20

A surety bond issued by an insurance
company to guarantee satisfactory
completion of a project by a contractor.

Answer 20

Performance bond

Question 21

Insurance to cover employees who are
injured while working or who contract an
illness as a result of the work

Answer 21

Workers’ compensation

Question 22

The amount of money which the insured
party must pay before the insurance
company’s own coverage plan begin

Answer 22

Deductible

Question 23

The agency that regulates the sale of
insurance in Florida.

Answer 23

Florida Department of Financial Services