Cmca - M100 |254 Questions| With Correct Answers.

Demolition {Ans: One of three components of Ordinance/Law insurance. Covers the cost of demolishing any undamaged portion of a building. The basic property insurance pays for demolishing the damaged portion of the building. The other two components of ordinance/law insurance are contingent liability and increased cost of construction.}Assessments receivable insurance {Ans: This insurance actually has a certain limited value. It applies to situations in which a covered loss happens to the property (for example, a fire destroys a unit) and the community association is unable to collect assessments from the owner. Housing cooperatives can protect their assessments through "Loss of Rents" coverage, a type of business income.}Income exposure to loss, One of the four types of sudden, accidental and unexpected losses to which a community association is exposed. Income losses involve a reduction in income or an increase in operating expenses, or both. The other three exposures to loss are property, liability, and personnel. {Ans: }Occupancy agreement {Ans: Governing document for cooperative owners that defines the member or stockholder's rights and obligations in relation to the living unit. • Identifies the premises that the stockholder is permitted to occupy exclusively • Defines the term of the