Florida Community Association Manager Practice Exam

What is one core activity of an association board related to insurance?

1. Marketing strategies

2. Government relations

3. Financial accounting

4. Community engagement

The correct answer is: Government relations

The core activity of an association board related to insurance primarily revolves around understanding and managing the insurance needs of the community. This involves ensuring that the association has adequate insurance coverage to protect against potential risks and liabilities. The involvement in government relations includes staying informed of legislation that affects insurance policies, compliance requirements, and potential changes in regulations that impact the community's insurance obligations. By focusing on government relations, the board can advocate for favorable terms and policies that benefit the association and its residents. This may include efforts to influence local regulations that could affect insurance rates or coverage options, ensuring that the association remains fully compliant while safeguarding the interests of its members. The other options, while important in the broader context of managing a community association, do not specifically align with the core responsibility of managing the insurance aspect. Marketing strategies focus on promoting the community, financial accounting involves managing the association's finances, and community engagement is about fostering relationships with residents. Although these are vital to the overall functioning of an association, they do not directly pertain to the insurance management role of the board.