ORS 100.435
Insurance for individual units and common elements

  • fidelity bond

(1)

If the bylaws provide that the association of unit owners has the sole authority to decide whether to repair or reconstruct a unit that has suffered damage or that a unit must be repaired or reconstructed, the board of directors shall obtain and maintain at all times and shall pay for out of the common expense funds, the following insurance covering both the common elements and individual units:

(a)

Property insurance including, but not limited to, fire, extended coverage, vandalism and malicious mischief; and

(b)

Insurance covering the legal liability of the association of unit owners, the unit owners individually and the manager including, but not limited to, the board of directors, the public and the unit owners and their invitees or tenants, incident to ownership, supervision, control or use of the property. There may be excluded from the policy required under this paragraph, coverage of a unit owner, other than coverage as a member of the association of unit owners or board of directors, for liability arising out of acts or omissions of that unit owner and liability incident to the ownership or use of the part of the property as to which that unit owner has the exclusive use or occupancy. Liability insurance required under this paragraph shall be issued on a comprehensive liability basis and shall provide a cross liability indorsement providing that the rights of a named insured under the policy do not prejudice any action against another named insured.

(2)

If the bylaws require the individual unit owners to obtain insurance for their units, the bylaws also shall contain a provision requiring the board of directors to obtain the following insurance covering the common elements:

(a)

Property insurance including, but not limited to, fire, extended coverage, vandalism and malicious mischief; and

(b)

Insurance covering the legal liability of the association of unit owners and the manager including, but not limited to, the board of directors, to the public or the unit owners and their invitees or tenants, incident to supervision, control or use of the property.

(3)

The board of directors shall obtain, if reasonably available, terms in insurance policies under this section that provide a waiver of subrogation by the insurer as to any claims against the board of directors of the association.

(4)

Notwithstanding a provision in the declaration or bylaws of a condominium, including a condominium created before September 27, 2007, that imposes a maximum deductible amount of $10,000 or less in an association insurance policy, if the board of directors determines that it is in the best interest of the association of unit owners and of the unit owners, as provided in subsection (5) of this section, the board may adopt a resolution authorizing the association to obtain and maintain an insurance policy with a deductible amount exceeding the specified maximum, but not in excess of the greater of:

(a)

The maximum deductible acceptable to the Federal National Mortgage Association; or

(b)

$10,000.

(5)

In making the determination under subsection (4) of this section, the board of directors shall consider such factors as the availability and cost of insurance and the loss experience of the association.

(6)

If the declaration or bylaws of a condominium created before September 27, 2007, do not assign the responsibility for payment of the amount of the deductible in an association insurance policy, the board of directors may adopt a resolution that assigns the responsibility for payment of the amount of the deductible. The resolution must include, but need not be limited to:

(a)

The circumstances under which the deductible will be charged against:

(A)

A unit owner or the unit owners affected by a loss; or

(B)

All unit owners;

(b)

The allocation of the deductible charged under paragraph (a) of this subsection; and

(c)

If a unit owner and the association have duplicate insurance coverage, the insurance policy that is primary, unless otherwise provided in the declaration or bylaws.

(7)

If the board of directors adopts a resolution described in subsection (6) of this section, the resolution may require that a unit owner, in addition to any other insurance required by the declaration or bylaws, obtain and maintain:

(a)

An insurance policy that insures the unit owner’s unit and appurtenant limited common elements for not less than the amount of the deductible in the association’s insurance policy for which the unit owner may be responsible and that insures the unit owner’s personal property for any loss or damage; and

(b)

Comprehensive liability insurance that includes, but is not limited to, coverage for negligent acts of unit owners and tenants, guests of unit owners and tenants and occupants of other units for damage to the general and limited common elements, to other units and to the personal property of other persons that is located in other units or the common elements.

(8)

Unless otherwise provided in the declaration or bylaws, the board of directors may adopt a resolution that:

(a)

Prescribes a procedure for processing insurance claims. The procedure may require that all claims against the association’s insurance policy be processed through and coordinated by the board of directors or the managing agent, if authorized by the board.

(b)

Assigns the responsibility for payment of charges for handling claims, including any charges by a managing agent.

(9)

Not later than 10 days after adoption of a resolution under subsection (4), (6) or (8) of this section, the board of directors shall ensure that a copy of the resolution and a notice described in subsection (10) of this section are:

(a)

Delivered to each unit owner; or

(b)

Mailed to the mailing address of each unit owner or to the mailing address designated in writing by the unit owner.

(10)

The notice required under subsection (9) of this section shall:

(a)

Advise the unit owner to contact the unit owner’s insurance agent to determine the effect of the resolution on the unit owner’s individual insurance coverage; and

(b)

Be in a form and style reasonably calculated to inform the unit owner of the importance of the notice.

(11)

Failure to provide a copy of a resolution or a notice required under this section does not affect the responsibility of a unit owner to comply with a resolution adopted under this section.

(12)

Intentionally left blank —Ed.

(a)

An association of unit owners shall maintain fidelity bond coverage for:

(A)

All persons with access to association funds, including directors, officers, employees, managing agents and employees of a management company or entity with which the association contracts.

(B)

Computer fraud and funds transfer fraud.

(b)

The fidelity bond required under paragraph (a) of this subsection must be in an amount that is at least equal to the combined amount of:

(A)

Funds maintained in the name of the association in accounts under ORS 100.480 (Maintaining documents and records); and

(B)

Any obligations issued by the United States government purchased by the association under ORS 100.480 (Maintaining documents and records).

(13)

Subsection (12) of this section applies to a condominium created before, on or after January 1, 2020.

(14)

Following the turnover meeting described in ORS 100.210 (Turnover meeting), on an annual basis, with the approval of owners representing a majority of the voting rights present at a meeting, the board of directors may elect for the following year to not maintain the fidelity bond coverage required under subsection (12)(a) of this section or to maintain fidelity bond coverage in an amount less than required under subsection (12)(b) of this section. [Formerly 94.177; 1999 c.677 §50; 2007 c.409 §31; 2019 c.66 §2]

Source: Section 100.435 — Insurance for individual units and common elements; fidelity bond, https://www.­oregonlegislature.­gov/bills_laws/ors/ors100.­html.

100.005
Definitions
100.010
Short title
100.015
Rules
100.020
Condominium provisions
100.022
Application of zoning, subdivision, building code or real property law to condominium
100.023
Void and unenforceable provisions of condominium governing document
100.025
Rule against perpetuities
100.100
Property submitted to unit ownership by declaration
100.102
Leasehold condominium submitted to unit ownership
100.103
Effect of submission of leasehold condominium to unit ownership
100.105
Contents of declaration
100.110
Approval of declaration, supplemental declaration or amendment required
100.115
Recording declaration and plat
100.116
Plat amendment
100.117
Correction amendment to declaration or bylaws
100.118
Correction amendment to condominium plat
100.119
Restated declaration
100.120
Supplemental declaration and plat required to annex additional property or reclassify variable property
100.122
Declaration prevails over inconsistent provisions of bylaws or articles of incorporation
100.123
Authority to amend declaration or bylaws to comply with federal or state law
100.125
Annexation of additional property
100.130
Relocation of unit boundaries and common elements by amendment to declaration
100.135
Amendments to declaration
100.140
Temporary relocation of floating structure
100.150
Declarant’s options until termination date
100.155
Variable property
100.170
Easement held by declarant
100.175
Reserve account for maintaining, repairing and replacing common elements
100.185
Express warranties
100.200
Declarant control of association
100.205
Transitional committee
100.210
Turnover meeting
100.220
Liabilities and obligations arising from transfer of special declarant right
100.225
Acquisition of special declarant rights by successor declarant
100.250
Documents required to be filed with Real Estate Agency
100.255
Processing of documents filed with Real Estate Agency
100.260
Condominium Information and Annual Reports
100.265
Annual Report
100.275
Application of ORS 100.250 to 100.280
100.280
Termination of filing Condominium Information Report
100.285
Resignation of designated agent
100.290
Rules
100.300
Inapplicability of ORS 100.301 to 100.320 to transient lodgings
100.301
Definitions for ORS 100.301 to 100.320
100.305
Conversion condominium
100.310
Rights of tenants in conversion
100.315
Improvements in conversion condominium during notice period
100.320
Authority of city or county to require developer to pay tenant moving expenses
100.405
Association of unit owners
100.407
Annual and special meetings of association
100.408
Quorum for meeting of association
100.409
Rules of order
100.410
Adoption of bylaws
100.411
Restated bylaws
100.413
Approval of amended or restated bylaws
100.415
Contents of bylaws
100.416
Criteria for board of directors membership
100.417
Board of directors of association
100.418
Receivership for failure of association to fill vacancies on board of directors
100.419
Assent of director to board action
100.420
Board meetings
100.423
Electronic notice to owner or director
100.425
Use of written ballot for approving or rejecting matters subject to meeting of unit owners
100.427
Methods of voting
100.428
Electronic ballot
100.430
Unit deeds
100.435
Insurance for individual units and common elements
100.440
Liens against property
100.445
Independent default clauses
100.450
Association lien against individual unit
100.460
Foreclosure against unit
100.465
Circumstances in which deed in lieu of foreclosure extinguishes lien
100.470
Lien foreclosure
100.475
Personal liability for assessment
100.480
Maintaining documents and records
100.481
Application of ORS 100.480
100.483
Annual budget
100.485
Duration and termination of initial management agreements and service and employment contracts
100.490
Notice to unit owners of intent of association to commence judicial or administrative proceedings
100.505
Status and ownership of units
100.510
Units and common elements distinguished
100.515
Interest of units in common elements
100.520
Easement held by units and common elements
100.525
Voting or consenting
100.530
Allocation of common profits and expenses
100.535
Maintenance and improvement of units
100.540
Use and maintenance of common elements
100.545
Compliance with bylaws and other restrictions
100.550
Service of process
100.555
Taxation of units
100.600
Termination of association or removal of real property by unit owners
100.605
Removal of property from association
100.610
Common ownership of property removed from unit ownership
100.615
Action for partition
100.620
Termination or removal no bar to resubmission
100.625
Procedure for dividing or converting units
100.626
Legislative findings
100.627
Electric vehicle charging stations
100.635
Filing with commissioner
100.640
Filing
100.645
Filing information to be kept current
100.650
Service of process on nonresident developer
100.655
Disclosure statement
100.658
Limited residential condominium filing
100.660
Nonresidential condominium or security filing
100.665
Exemption to certain disclosure and notice requirements
100.668
Documents and information included with filing
100.670
Fees
100.675
Inventory of filing
100.680
Escrow of unit sales agreement
100.685
Contents of unit sales agreement
100.700
Inspection of condominium
100.705
Sale prohibited prior to issuance of disclosure statement
100.710
Inspection deposit
100.720
Conditions prerequisite to sale
100.725
Documents prerequisite to execution of sale agreement and conveyance of unit
100.730
Cancellation of sale of unit
100.735
Waiver of right to cancel
100.740
Notice to purchaser of cancellation rights
100.745
Escrow documents required of successor to vendor’s interest
100.750
Inspection of records
100.770
Fraud and deceit prohibited
100.775
False or misleading advertising prohibited
100.780
Waiver of legal rights void
100.785
Blanket encumbrance prohibited
100.900
Civil penalty
100.905
Cease and desist order
100.910
Use of fees
100.920
Changes or actions that require approval or consent of mortgagee
100.990
Criminal penalties
Green check means up to date. Up to date