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As a Board member, am I required to select only A rated

Customer Question
As a Board member...

As a Board member, am I required to select only A rated carriers?

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

Florida

Lawyer's Assistant: What steps have you taken so far?

We are beginning the process to select a broker and the question arisise that we are required to use an A rated carrier?

Submitted: 2 months ago.Category: Legal
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Answered in 53 minutes by:
5/25/2018
Lawyer: DamienJD, Attorney replied 2 months ago
DamienJD
DamienJD, Attorney
Category: Legal
Satisfied Customers: 5,381
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Hello: My name is ***** ***** I am an attorney.

Do the bylaws or any board resolutions or another documentation state that an A rated carrier must be selected?

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Customer reply replied 2 months ago
Not according to the Property Manager, but I thought that since our operation budget (over $1 Mil), size (157 Units), etc required us to use an A rated company. This notion may be outdated....so wanted to get another opinion.
Lawyer: DamienJD, Attorney replied 2 months ago

Are you saying that your operating budget and size leads you to believe you must use an A rated company? Or are you saying that there is somewhere in writing regarding the budget requiring to use an A rated company?

In any event, there would be not be a requirement except that there is more risk without using an A rated company. So, if something goes wrong, presumably someone could argue that you should have used an A rated company. But that would be a business judgment decision of the board.

We can discuss this more if you want to do so.

If you have further questions or you need further assistance, just let me know.

If not, please remember to rate my answer between 3 to 5 stars without any additional costs to you. That is how I get credit for answering your question. Best regards.

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Lawyer: DamienJD, Attorney replied 2 months ago

Hello again:

I hope I provided good service to you. If you need more, just let me know.

If not, please remember to rate my answer between 3 to 5 stars without any additional costs to you. That is how I get credit for answering your question. Best regards.

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