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I am sorry you are dealing with this situation. Unless a condo's bylaws/declaration specifically states that insurance must be maintained by an insurance company that maintains a certain rating, the law requires only that the association maintain adequate insurance. Here is the statute that requires insurance: www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/Sections/0718.111.html
However, if the owners of an association are concerned about the board activity and certainly if there is a conflict of interest among a board member, the homeowners may act by voting out the current board, call for a special vote by the owners to change the insurance company and bylaws to require a rating standard or may file a lawsuit against the board for breach of fiduciary duty.
Prior to taking any action, it is understandable in this situation why the owners are concerned. I would suggest contacting the Florida Condo Ombudsman and inquiring as to what assistance is available to try and resolve this matter amicably prior to resorting to local counsel to assist with board removal or special voting. The ombudsman office information and contact link is provided here: www.ccfj.net/ombudsman.html
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