Questions for the HOA's insurance companies

Here are some questions that the HOA ought to be asking its insurance companies (plural). There is an insurance company that handles general liability issues, and there is an insurance company that handles insurance for Directors & Officers (D&O).

Q. If the Board of Directors does not comply with the By-Laws in significant ways, is there a problem?

Q. If the HOA does not have a legitimate board of directors, is there a problem?

Q. If the HOA does not have a legitimate board of directors and, thus, has no officers, is there a problem?

Q. If the board entered into a Special Duty Agreement (SDA) with the Richland County Sheriff's Department and exposes the HOA to a significant increase in liability risk, should the board have submitted the SDA to you for review and consideration of an increase in premium?

Q. If it didn't, and there is a large claim made against the HOA, might you deny coverage?

Q. Under a D&O policy, if there are no legitimate Directors and Officers, do those claiming to be Directors and Officers actually end up with personal liability and no insurance protection?

Q. Do you require the HOA to inform you of any increase in risk during a Policy Year?

Q. What are the consequences of the failure by the HOA to do so?

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