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7.1.F. - Page 122
<br /> (3) workers' compensation insurance (statutory limits) to the extent
<br /> required by law (or such greater amount as the Board deems necessary). All independent
<br /> contractors who contract with the Association shall be required to carry appropriate general liability
<br /> insurance, automobile liability insurance coverage and workers' compensation coverage, and shall
<br /> indemnify the Association with respect to any claims from such independent contractor, or
<br /> independent contractor's employees, with regards to claims for liability and workers' compensation
<br /> claims from any independent contractor who performs any service for the Association. Independent
<br /> contractors shall be required to carry a minimum of $1,000,000 per occurrence, $2,000,000
<br /> general aggregate and $2,000,000 products-completed operations aggregate under the general
<br /> liability requirement naming the Association as an additional insured for their work. Independent
<br /> contractors shall also carry a minimum of $1,000,000 combined single limit for auto liability
<br /> covering all owned, hired and non-owned automobiles;
<br /> (4) fidelity bonds or insurance covering officers, Directors, and
<br /> employees that have access to any Association funds;
<br /> (5) directors and officers liability insurance covering all past, present and
<br /> future directors and officers of the Association, the amount of which shall at all times not be less
<br /> than the minimum amounts required by Civil Code §5800 and § 5805, as amended from time to
<br /> time, including any successor statutes;
<br /> (6) insurance against water damage, and liability for non-owned and
<br /> hired automobiles;
<br /> (7) water damage insurance to the extent typically available from
<br /> commercial carriers, if available at reasonable rates in the opinion of the Board; and,
<br /> (8) such other insurance as the Board in its discretion considers
<br /> necessary or advisable.
<br /> B. Amount, Term and Coverage. The amount, term and coverage of any
<br /> policy required hereunder (including the type of endorsements, the amount of the deductible, the
<br /> named insureds, the loss payees, standard mortgage clauses, notices of changes or cancellations,
<br /> and the insurance company rating) shall satisfy the minimum requirements imposed for this type of
<br /> project by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage
<br /> Corporation ("FHLMC"), and the Housing and Urban Development ("HUD") or any successor to
<br /> either of those entities. If the FNMA, FHLMC or HUD requirements conflict, the more stringent
<br /> requirement shall be met. If FNMA, FHLMC and HUD do not impose requirements on any policy
<br /> required hereunder, the term, amount and coverage of such policy shall be no less than that which
<br /> is customary for similar policies on similar projects in the area. The Board shall adopt a policy
<br /> regarding payment of deductibles on any insurance coverage. Unless the Board determines
<br /> otherwise, the Association shall pay deductibles required under any insurance claims from
<br /> Association funds, unless insufficient funds are available to the Association from the Association's
<br /> accounts or from funds borrowed by the Association in accordance with this Declaration, in which
<br /> event the Association shall levy a Special Assessment, in accordance with Sections 4.3.B and 4.4
<br /> of this Declaration, with respect to the amount of any such deductible which exceeds funds
<br /> available to the Association from Association funds or from borrowing. Owners responsible for
<br /> causing damage are responsible for the amount of any deductible as provided in Section 5.1.A(2).
<br /> C. Representation for Claims. Each Owner appoints the Association or any
<br /> insurance trustee designated by the Association to act on behalf of the Owners in connection with
<br /> all insurance matters arising from any insurance policy maintained by the Association, including
<br /> without limitation, representing the Owners in any proceeding, negotiation, settlement or agreement.
<br /> D. Waiver of Subrogation. Any insurance maintained by the Association shall
<br /> contain "waiver of subrogation" as to the Association and its officers, Directors and Members, the
<br /> Owners and Occupants of the Condominiums (including Declarant) and Mortgagees, and, if
<br /> obtainable, a cross-liability or severability of interest endorsement insuring each insured against
<br /> liability to each other insured. All individually owned insurance shall contain a waiver of
<br /> subrogation as to the Association and its officers, directors and Members, the Owners and
<br /> Occupants of the Condominiums and Mortgagees, and all Members are deemed to have waived
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