Notice of Compliance/Liability Insurance

I was BOD for two years when our community was first built. Two years later I learned that the new BOD hired a a new management.

Things are not doing well and the most recent thing they did was to re-key all common area locks enforced the following restrictions are being enforced:

1. Validation of Homeowner's Liability Insurance. They have quoted Art VIII of the Association's CC&R's that reads: "Each owner is responsible for insuring the Owner's personal property and all other property and Improvements in the owner's condominium for which the Association has not purchased insurance in accordance with Sec. 8.1" Furthermore, the BOD requires that the Association HOA be added as additional insured party.

2. Current in association dues. 3. Current on water bill.

#2 & #3 are reasonable and acceptable. However, I need help for #1. Are they in the right in withholding keys to the facilities because the homeowners opted not to insure their personal properties per Sec. 8.l of CC&R?

What action can we do? Attached are letters I've sent to them.

Appreciate your help.

BCrisologo