SB1457 Summary

• Requires condominium association insurance policies to include guaranteed replacement cost coverage and minimum 5% of total building limit for increased construction costs due to building code requirements.

• Mandates only admitted insurance carriers with B+ or higher rating by A.M. Best Company are permitted, unless 3 admitted carriers decline the risk, then excess surplus lines may be used.

• Prohibits multi-building policies covering unaffiliated condominiums and self-insurance arrangements where unit owners band together with other associations.

• Lowers fidelity bond requirement threshold from 30 units to 6 or more units, with managing agents and employees who control funds included as additional insureds.

• Limits maximum deductible amount unit owners can be required to pay to $5,000 and requires contractors/vendors with contracts exceeding $10,000 annually to provide certificates with $1,000,000 commercial liability coverage and workers' compensation insurance.