On 10/26/2023 8:45 PM, Leonard S. wrote:
An HOA, incorporated as a non-profit, buys insurance for its Board or Directors. The HOA's mission, as stated in its governing documents, does not include any entertainment. Nevertheless, the Board designates some portion of its budget to organizing
multiple festivities for the members. Some of them (for adults) are being set up in an unsafe manner, e.g., an open bar is located on the pool's deck. Normally, no glass is allowed there for safety.
During one such party a wine bottle was accidentally broken. In spite of the efforts to clean the scene, a few small glass pieces had not been picked up. On the morning after that party, an HOA member was injured by a piece of glass.
Under the circumstances, would the Board members' insurance policy still protect them, in spite of their action knowingly violating the safety regulations? If the law suit will result in a judgement against the HOA, will all of its assets be vulnerable
(not protected), regardless of their designation (e.g. a large Capital Reserve Fund)?
What state? HOAs are organized differently in different states. They
are corporations in AZ but have their own section of state law
In AZ, the board members are covered by the insurance if they are
individually named in the suit.
In AZ most of the liquid assets would be vulnerable.
"action knowingly violating the safety regulations?" Whose regulation?
In OR private pools don't specify a rule like this.
Was the pool marked as no glass permitted?
Did the insurance company inspect the location for safety and recommend changes?
Hard to prove which board members knew what.
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