Sec. 42-103uu. Insurance.
532 words·~2 min read·
/ct/title-42/chapter-734b-time-shares/42-103uu·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Notwithstanding any provision contained in the time share instrument or in sections 42-103cc to 42-103ddd , inclusive, the managing entity shall use due diligence to obtain the following insurance coverage as a common expense of the time share plan:
(1)Adequate casualty insurance to protect the time share property and amenities against all reasonably foreseeable perils, in such covered amounts and subject to such reasonable exclusions and reasonable deductibles as are consistent with the provisions of this section; and
(2)Adequate liability insurance to reasonably protect the time share property and amenities from occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership and maintenance of the time share property.
(b)In making the determination as to whether the insurance obtained pursuant to this section is adequate, the managing entity shall take into account the following factors, among others as may be applicable:
(1)Available insurance coverages and related premiums in the marketplace;
(2)Amounts of any related deductibles, types of exclusions and coverage limitations, provided, for purposes of this subdivision, a deductible of five per cent or less shall be deemed to be reasonable per se;
(3)The probable maximum loss relating to the insured time share property during the policy term;
(4)The extent to which a given peril is insurable under commercially reasonable terms;
(5)Amounts of any deferred maintenance or replacement reserves on hand;
(6)Geography and any special risks associated with the location of the time share property; and
(7)The age and type of construction of the time share property.
(c)Notwithstanding any provision contained in this section or in the time share instrument, insurance shall be procured and maintained by the managing entity for the time share property as a common expense of the time share plan against such perils, in such coverages and subject to such reasonable deductions or reasonable exclusions as may be required by:
(1)An institutional lender to a developer, for as long as such lender holds a mortgage encumbering any interest in or lien against a portion of the time share property; or
(2)Any holder or pledge of, or any institutional lender having a security interest in, a pool of promissory notes secured by mortgages or other security interests relating to the time share plan, executed by purchasers in connection with such purchasers' acquisition of time share interests in such time share property, or any agent, underwriter, placement agent, trustee, servicer, custodian or other portfolio manager acting on behalf of such holder, pledge or institutional lender, for so long as such notes and mortgages or other security interests remain outstanding.
(d)Notwithstanding any provision contained in the time share instrument or in sections 42-103cc to 42-103ddd , inclusive, the managing entity is authorized to apply any existing reserves for deferred maintenance and capital expenditures toward payment of insurance deductibles or the repair or replacement of the time share property after a casualty without regard to the purposes for which such reserves were originally established.
(e)A copy of each policy of insurance in effect shall be made available for reasonable inspection by purchasers and their authorized agents.