SheilaR5 (California)
Posts: 42
Posts: 42
Posted:
Can a board member quit but still legally be covered for a HUD complaint should a problem arise?
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Quit board
Started by SheilaR5 • 4 replies • 209 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Not sure what mean by HUD complaint. The board should have liability insurance for being a board member to protect personal assets while serving on board. After that you are a general member. Who if a company is filed against the HOA every member is subject to lawsuits or complaints. The board are just the representation of the general members.
Former HOA President
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
If you mean can a board member quit and file a HUD complaint in the future? Yes.
A board member can file a HUD complaint as a board member too.
A board member can file a HUD complaint as a board member too.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
A board member is covered by D&O insurance during their term (or the time they serve if they resign prior to the end of their term).
If the complaint is for a time you were serving, D&O insurance and any requirement to indemnify directors/officers would be applicable.
If a complaint is for a time you were not on the board, then it shouldn't be an issue.
If the complaint is for a time you were serving, D&O insurance and any requirement to indemnify directors/officers would be applicable.
If a complaint is for a time you were not on the board, then it shouldn't be an issue.
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
Quote:
Posted By SheilaR5 on 03/30/2024 11:16 PM
Can a board member quit but still legally be covered for a HUD complaint should a problem arise?
Can a board member quit but still legally be covered for a HUD complaint should a problem arise?
-- the owner is named as a respondent (HUD parlance for "defendant") in a HUD complaint;
-- and the complaint indicates the owner was named as a respondent for actions he/she took while on the board;
-- and the HOA's insurance has coverage for acts of unlawful discrimination;
then the insurance will cover the owner. Many HOAs do not have insurance for accusations of unlawful discrimination.
If the HOA or state law requires the HOA to indemnify directors, and the HOA does not have insurance for claims of unlawful discrimination, then chances are the HOA will have to pay out-of-pocket for the defense of this owner (a former director).
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