Flood Updates
A government entity that determines flood risk?
FEMA
In what year was the height of the soft market?
2016
Name two groups of people who are covered by D & O ?
What is Directors, Officers, Committee Members, Property Management Company/Property Manager
Who is responsible for kitchen cabinets damaged in a unit from a FLOOD event?
Association
True or False - A property management firm steals association funds via funds transfer fraud. Would this be covered by the association's crime policy?
True
When do Flood renewals take effect under Risk Rating 2.0?
April 1, 2022
Name 3 underwriting factors that carriers use to determine rates?
-Open Claims
-Age of Building
-Roof Condition
-Location
-Construction type
-Opening protections
-Engineering reports
-Total insurable value
Name the two Categories of claims filed under a Directors and Officers Policy
What is monetary and non-monetary
Name one proactive risk management step that can help your association become a better risk?
Site surveys, risk transfer program, building envelope integrity projects, other building improvements
True
NFIP Flood renewals under Risk Rating 2.0 will be capped at what %?
18%
When coverage is written on a basis that factors is depreciation in the event of a claim.
What is actual cash value
Name one type of claim that is specifically excluded by D & O?
Bodily Injury, Destruction of Property, Pollutants, Fungi
What is the first step you should do when you have a water leak?
•Stop or mitigate any further damage
–Cover exposed areas
–Call in a professional (plumber, roofer, dry out company, etc.)
The Statutory requirement for association fidelity coverage must cover _____
the maximum funds that will be in the custody of the association or its management agent at any one time
True or False- The National Flood Insurance Program sets flood rates and they do not differ from company to company or agent to agent.
True
What year was the most active storm history ever recorded?
2020 - 30 Named Storms!
True or False- All D&O policies are the same?
False
Does D & O cover property managers?
Yes
What types of internal financial controls should your association implement to prevent a loss?
Name Three
Check countersignature
Board member approval for expenditures
Limits of authority for check signing
Background checks on all new employees
Segregate duties
What is the maximum amount of coverage allowed for a Condominium Association building?
What is $250,000 per unit
Name 3 contributing factors to why rates are on the rise?
natural disasters, surfside collapse, reinsurance, insurance carrier insolvencies, litigation costs
Name 3 common D&O claims
What is boards failure to adhere to the by-laws, challenges to decisions of the ARB, and boards failure to maintain common area.
True or False - Workers Compensation would cover a non board member who is injured while taking their trash down to the dumpster?
False
The use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes.