55-79.81 - Insurance.
§ 55-79.81. Insurance.
A. The condominium instruments may require the unit owners' association, orthe executive organ or managing agent on behalf of such association, toobtain:
1. A master casualty policy affording fire and extended coverage in an amountconsonant with the full replacement value of the structures within thecondominium, or of such structures that in whole or in part comprise portionsof the common elements.
2. A master liability policy, in an amount specified by the condominiuminstruments, covering the unit owners' association, the executive organ, ifany, the managing agent, if any, all persons acting or who may come to act asagents or employees of any of the foregoing with respect to the condominium,and all unit owners and other persons entitled to occupy any unit or otherportion of the condominium.
3. Such other policies as may be required by the condominium instruments,including, without limitation, workers' compensation insurance, liabilityinsurance on motor vehicles owned by the unit owners' association, andspecialized policies covering lands or improvements in which the unit owners'association has or shares ownership or other rights.
B. Any unit owners' association collecting assessments for common expensesshall obtain and maintain a blanket fidelity bond or employee dishonestyinsurance policy insuring the unit owners' association against lossesresulting from theft or dishonesty committed by the officers, directors, orpersons employed by the unit owners' association, or committed by any commoninterest community manager or employees of the common interest communitymanager. Such bond or insurance policy shall provide coverage in an amountequal to the lesser of $1 million or the amount of reserve balances of theunit owners' association plus one-fourth of the aggregate annual assessmentof such unit owners' association. The minimum coverage amount shall be$10,000. The executive organ or common interest community manager may obtainsuch bond or insurance on behalf of the unit owners' association.
C. When any policy of insurance has been obtained by or on behalf of the unitowners' association, written notice of the obtainment thereof and of anysubsequent changes therein or termination thereof shall be promptly furnishedto each unit owner by the officer required to send notices of meetings of theunit owners' association. Such notices shall be sent in accordance with theprovisions of subsection A of § 55-79.75.
(1974, c. 416; 2000, c. 906; 2003, c. 360; 2004, c. 281; 2007, cc. 696, 712;2008, cc. 851, 871.)