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<br /> occurrence,against claims for death, bodily injury,property damage, and such other sks '
<br /> aS are customarily covered by such poiicies for projects similar in construction, ]oca ion
<br /> and use to the Property. The palicy shall contain a"severability of interest"endorse ent
<br /> w'hich shall preclude the insurer from denying the claim of an Owner or Occu ant
<br /> b�cause af negligent acts of the Association or other Owners or Occupants. The po icy
<br /> shalI in�lude such additiana! endorsements, coverages and limits with resp�ct to s ch
<br /> h�zards as rnay be required by the regulations of the FHA, VA, FNMA, or FHLMC a
<br /> pnecondition to their insuring,purchasing,or financing a mortgage on a Unit.
<br /> ' I0.1.3 Fidelity bond or insurance coverage againsi dishonest acts on the part of
<br /> � directors, officers, managers, trustees, ernployees, or persons responsibie for handi ng
<br /> . funds belonging to or administered by the Association, if deemed to be advisable by e
<br /> BQard or required by the regulations of any financing-related institution as a preconditi n
<br /> to,the purchase, insurinb, guarantee, or financing of a mortgage on a Unit. The fidel ty
<br /> ba,nd or insurance shall name the Association as the named insured, and shall com ]y
<br /> with the regulations af the FNMA, FHLMC, FHA or VA, if required by one of s h
<br /> � ag�ncies as a precondition to the purchase, financing, inswing, or gvarantee o a
<br /> mmrtgage on a Unit. An appropriate endorsement to the policy to cover any persons w o
<br /> ' serve withaut compensation shall be added if the policy would not otherwise co er �
<br /> volunteers, or a waiver af defense based upon the exclusion of persons serving with t
<br /> compensation shall be added,
<br /> ' L0.1.4 Workers' Compensation insurance as applicable and required by law.
<br /> � � 10.1.5 Directors and officer liability insurance with such reasonable limits ac�d
<br /> couerages as the Board shall determine from time to time. �I
<br /> 10.1.6 Such other insurance as the Board may determine from time to�time to e
<br /> in t�e best interests of the Association and the Owners.
<br /> 10.2 Prerniums; Improvements; Deductibles. Except as provided in Section 6_4, a I
<br /> insurance ,prerniums shall be assessed and paid as part of an annual Assessment. f
<br /> improvements and betterments to the Units are covered by the Association's property insuranc ,
<br /> any increa5ed cost may be assessed against the Units affected. The Association may, in the ca
<br /> i of a claim �'or damage to one or more than one Unit,(i} pay the deductible amount as a Commo
<br /> i Expense, (ii) assess the deductible amount against one or more than one Unit affected in an
<br /> reasonable�manner, or(iii) require the Owners of one or more than one Unit affected to pay th
<br /> deductible amount directly. The Association's decision as to who shall be charged with payin
<br /> the deductible amount may, but need not, be based on fault. Notwithstanding anything ko th
<br /> contrary in,this Section ]0, the Association may, in the case of claim against the Association'
<br /> property insurance�, assess the deductible amount against all of the Units equally in the event th
<br /> the deductil�le amount is calculated by the insurance company based upon the percentage af th
<br /> value or co5t(replacement or otherwise)of one or more than one Unit or Building.
<br /> 10.3 Loss Pavee; Insurance Trustee. Atl insurance coverage maintained by th
<br /> Association,shall be written in the name of, and the proceeds thereof shall be payable to, th
<br /> Association (or a qualified insurance trustee setected by ii) as trustee for the benefit of th
<br /> MPLS-Word 95281.11 25 I
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