0
Condominium boards are most properly insured with directors and officers insurance -- which best practices recommend, and which may be required by your governing documents.
One of the situations covered by this insurance includes dishonesty.
From the FindLaw site:
"Dishonesty exclusions bar coverage for claims made in connection with an insured's dishonesty, fraud, or willful violation of laws or statutes. The dishonesty exclusion also may be coupled with a personal profit exclusion, barring coverage in connection with an insured's illicit gain. These exclusions typically are followed by a severability clause - that is, a caveat providing that the acts or knowledge of one insured will not be imputed to any other insured for the purposes of applying the exclusion.* In other words, the exclusion only bars coverage for the insured(s) whose acts or knowledge are the basis of the claim at issue."
In other words, one dishonest board member's actions do not reflect on -- or exclude coverage of -- other board members.
*Emphasis particular to this use of this quote.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is a severance clause?
The Severance Clause, also known as a Severability Clause, is a legal provision that may be included in a contract or legislation that states that if part or parts of the contract or legislation is determined to be invalid, unenforceable or unconstitutional that the remainder of the contract or legislation is still valid or in effect. If a contract or legislation does not include a Severability Clause and any part of is ruled to be illegal or unenforceable then the entire contract or legislation is voided.
What is transit clause in marine insurance?
transit clause marine insurance
What types of insurance does allstate provide?
AllState provides Homeowners Insurance, Condominium Insurance, Renters Insurance, and Landlord Property Insurance.
Where can one find rates for condominium insurance?
The place to acquire insurance for your condominium are many and varied. Some of the companies that offer this service are: Progressive, Esurance, Geico, Nationwide and Liberty Mutual.
What is the purpose of condominium association insurance?
The purpose of the condominium association insurance is to guard the tenants from having to pay for water damage caused by leaky faucets or from damage to the structure of the rental establishment. The purpose of the condominium association insurance is the same as any other insurance policy and that is to have in place moneys that the tenant do not have to pay in the event of a mishap to the structure of having lived in the dwelling.
Who pays for property insurance in a condominium?
In a condominium usually the board pays for property insurance on all common areas. An individual owner pays for 4 walls, the ceiling, the floor, the inside of the door, and everything in between.
How does cross liability work?
Cross liability works as a severability of interest. These are clauses in commercial insurance contracts which means the policy applies separately to each insured party.
What is the difference between severability and separability?
none
What is incontestability clause in life insurance policies?
You can find this by looking at the "Incontestable Clause" in your life insurance policy. The "Incontestable Clause" states that after the life insurance policy is in force for two years, the insurance company cannot void it because of misrepresentation or concealment by the insured in obtaining the policy.
Do condominium owners have to have insurance in accordance with the Illinois condominium property act?
If the Illinois Condominium Property Act says that you **shall** have insurance -- not **may** -- and lays out specific terms and conditions, you are strongly urged to obey the law. In the case of a disaster, without insurance you may be doubly charged: once by the cost of recovering from the uninsured disaster and the second time by the law which may penalize you for not carrying insurance. Your property manager or member of your board will be able to answer your question specifically.
What is rsd insurance clause?
rsd means
Is an additional insured entiled to severability of interest?
yes
