Revision: Dec. 2, 2019, 11:39 a.m.
HB 1209 - AS INTRODUCED
2020 SESSION
20-2348
10/08
HOUSE BILL 1209
AN ACT requiring fidelity insurance coverage for condominium board members, managers, and employees.
SPONSORS: Rep. Chirichiello, Rock. 6; Sen. Birdsell, Dist 19
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill requires condominiums to have blanket fidelity insurance coverage against the dishonest acts of persons responsible for handling organizational funds.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20-2348
10/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
AN ACT requiring fidelity insurance coverage for condominium board members, managers, and employees.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Condominium Act; Insurance Required. Amend RSA 356-B:43, I(c) to read as follows:
(c) For an organization of unit owners in condominiums of more than 20 units, blanket fidelity insurance coverage, which shall be secured and maintained at its own cost and expense, insuring against the dishonest acts of any person, trustee, manager, managing agent, or employee, or the organization of unit owners responsible for handling organizational funds, in an amount equal to at least 1/4 of the annual assessments, excluding special assessments. Such fidelity insurance policy, according to its definition of employee, shall specifically include the manager or managing agent or provide for same by an endorsement to the fidelity policy. Such fidelity insurance shall name the organization of unit owners as the insured and include a provision requiring 10 days' written notice to the organization or manager, in the event of cancellation or substantial modification. The manager or managing agent shall be the designated agent on the fidelity insurance policy, and the fidelity insurance policy shall be the property and for the sole benefit of the organization of unit owners. The manager or managing agent shall maintain, at its sole cost and expense, its own fidelity insurance with substantially the same form of coverage; and
(d) Such other policies as may be required by the condominium instruments, including, without limitation, workers' compensation insurance, liability insurance on motor vehicles owned by the association, and specialized policies covering lands or improvements in which the unit owners' association has or shares ownership or other rights.
2 Effective Date. This act shall take effect 60 days after its passage.