Florida Community Association Manager Practice Exam

Which of the following is NOT one of the four types of insurance?

1. Property

2. Liability

3. Asset

4. Income

The correct answer is: Asset

The correct answer is "Asset" because it is not recognized as one of the four primary types of insurance commonly discussed in relation to community associations or general insurance practice. The four main types typically include property insurance, which covers damage to buildings and personal property; liability insurance, which protects against claims for bodily injury and property damage caused by the insured; life insurance, which provides financial protection to beneficiaries upon the policyholder’s death; and income (or disability insurance), which offers compensation for lost wages in case of illness or injury preventing the policyholder from working. While the term "Asset" may relate to financial resources owned by an individual or entity, it does not directly translate into a distinct type of insurance coverage. Each of the other options corresponds to established categories of insurance that provide specific forms of protection to individuals and organizations. Understanding the distinctions between these types is crucial for effective risk management in community associations.