


The Rule provides that, in order for a DCAM or the Community Association Management Firm that employs them to have access to or disburse community association funds, there must be fidelity insurance in place to insure against loss or theft of community association funds.


The fidelity insurance must be in the maximum amount of coverage available to protect funds in the control of the DCAM or the Community Association Management Firm providing services to the association. It must cover the DCAM, the firm, all community association managers, partners, officers, employees, officers, directors, and employees of the Community Association Management Firm.


The DCAM or their Firm must also obtain general liability and errors and omissions insurance to cover any losses or claims against a Community Association Manager, the DCAM, or the Firm. (Section 1445.105)





The Rule adds grounds for discipline intended to enhance the protection of the public and the professionalism of Community Association Managers and Firms.


Among them are: (1) Failing to disclose any affiliation agreements, including their terms, which are binding on a client association;


(2) Failing to return to a community association all original records that are the property of the community association within 30 days following termination of a management agreement or other contract;


(3) Charging fees not disclosed to a community association at the time of execution, amendment to, or renewal of, a management agreement or other contract; and


(4) converting, diverting, or expending funds from a community association account without written authorization other than to pay expenses incurred by or on behalf of the community association. (Section 1445.300)


)       


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