CA AB1101

Requires association funds deposited by managing agents to be held in accounts insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund, or a guaranty corporation, and prohibits investment in stocks or high-risk options.

Establishes new thresholds for fund transfers without board approval: associations with 50 or fewer separate interests require approval for transfers exceeding the lesser of $5,000 or 5% of estimated annual income; associations with 51 or more separate interests require approval for transfers exceeding the lesser of $10,000 or 5% of estimated annual income.

Eliminates exceptions that previously allowed managing agents to commingle association funds with their own money or others' money, implementing an absolute prohibition on commingling.

Requires associations to maintain crime insurance, employee dishonesty coverage, and fidelity bond coverage (or equivalents) in amounts equal to or greater than combined reserves plus three months of total assessments, with equal protection against computer fraud and funds transfer fraud.

Specifies that self-insurance does not satisfy the insurance coverage requirements and requires managing agents or management companies to be included in dishonest acts coverage.