For 30 days all Circle C Homeowner Association assets were exposed.

General Liability Insurance
?– CANCELED JANUARY 11, 2004

(General Liability covers the HOA's legal responsibility for the harm it, or it's employees may cause to others. This includes bodily injury, death, property damage or loss, personal injury which includes slander or libel, and advertising injury.)

The CCHOA General Liability Insurance policy was canceled as of January 11, 2004, due to non-response to multiple insurance company letters. Last August, at the back-to-school party, a child was injured on a slip and slide at the July 4th pool party and a claim was made against the insurance policy. The insurance company sent several letters to CCHOA requesting a commitment to never use a slip and slide at a CCHOA event again. Because of non-response to the insurance company letters the CCHOA policy was canceled.

For 30 days, from January 11, 2004, to February 9, 2004, all of the CCHOA assets were exposed. The Board did not take necessary actions to protect the CCHOA by controlling risks, such as closing the pool, etc. during this period of time.

As per the governing documents, the CCHOA Board has responsibility to the CCHOA to maintain insurance and protect all assets of the CCHOA.?  This is required in the CCHOA governing documents and is part of the fiduciary responsibilities of the Board to the CCHOA.


Directors and Officers Insurance
- CANCELED and
WITHOUT CURRENT COVERAGE
(D & O Insurance covers the monetary costs of lawsuits against directors and officers by shareholders or third parties.)

Directors and Officers (D & O) Insurance was in effect during the Gammon vs CCHOA lawsuit. But the Board of Directors did not file a claim with the insurance company for the legal fees. If they had filed a claim, the insurance would have paid for the $100,000.00 legal fees of Grey & Becker. Instead, the Board chose not to make a claim against the insurance for claim management and defense; instead the Board paid the legal fees with your CCHOA cash assets of $100,000 to address the Gammon claim.?  Why?

The insurance company would not renew the CCHOA's D & O policy. Since November of 2003, the CCHOA has been without Directors and Officers Insurance.