As a result of the hard work of many management company CEOs, the proposed Permanent Rule D10 to the Community Association Manager Licensing Rules has been substantially revised to make it realistic for managers and management companies to satisfy the crime fidelity insurance requirements.  The rule allows managers or management companies to either obtain crime fidelity coverage directly from an insurance company or be named as an additional insured on the common interest community’s fidelity insurance policy.  Regardless of which method is chosen the insurance must be for not less than two months of current assessments plus reserves or such higher amount as the association’s bylaws or the management contract may provide.

2 responses to “DORA Resolves Crime Fidelity Insurance Issue
  1. As a CAM, do I need Crime Fidelity Insurance if all of the HOAs I manage are LESS THAN 30 units.

    My prep class materials said the following:
    “Any person employed as an independent contractor by an association with thirty or more units for the purpose of managing a common interest community must obtain and maintain fidelity insurance.”

    If all of the associations I manage have LESS THAN 30 units, do I need Crime Fidelity insurance??

    1. You do not need Fidelity Insurance if you manage less than thirty units.

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