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90_HB1262ham002
LRB9004163WHmgam03
1 AMENDMENT TO HOUSE BILL 1262
2 AMENDMENT NO. . Amend House Bill 1262 by replacing
3 the title with the following:
4 "AN ACT to amend the Condominium Property Act by changing
5 Section 12."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Condominium Property Act is amended by
9 changing Section 12 as follows:
10 (765 ILCS 605/12) (from Ch. 30, par. 312)
11 Sec. 12. Insurance.) (a) (1) The board of managers
12 shall have the authority to and shall obtain, except as
13 otherwise provided in Section 12.1, insurance for the
14 property against loss or damage by fire and such other
15 hazards as are covered under standard extended coverage
16 provisions for the full insurable replacement cost of the
17 common elements and the units. Every insurer issuing a policy
18 against loss or damage by fire and such other hazards as are
19 covered under standard extended coverage to a condominium
20 association shall print on or attach to the premium notice
21 the following statement: "The Condominium Property Act
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1 requires every condominium association to obtain insurance
2 for the property against loss or damage by fire and such
3 other hazards as are covered under the standard extended
4 coverage provisions for the full insurable replacement costs.
5 This policy may or may not satisfy this requirement. Please
6 examine your policy carefully to determine if it complies
7 with these requirements." The full insurable replacement cost
8 of the units may include the replacement cost value of
9 betterments and improvements made in and to a unit by a unit
10 owner if it is so provided by the condominium declaration,
11 and if it is so provided in the condominium instruments, any
12 increase premium charge therefor shall be assessed to that
13 unit owner under the provisions of Section 9 hereof.
14 (2) Such insurance coverage shall be written in the name
15 of, and the proceeds thereof shall be deemed payable to, the
16 board of managers, as trustee for each of the unit owners in
17 the percentages established in the declaration. Any insurance
18 policy obtained for the property pursuant to paragraph (1) of
19 subsection (a) of this Section, which fails to contain the
20 trustee provisions required by this paragraph (2), shall be
21 deemed to incorporate such provisions into the policy by
22 operation of law.
23 (3) The board of managers, or the persons acting in such
24 capacity pursuant to Section 18.2 of this Act, shall have
25 authority to designate any corporation qualified to accept
26 and execute trusts in this state to act as agent or trustee
27 for, or as successor trustee to, said board of managers for
28 the purpose of collecting and disbursing the proceeds of such
29 insurance in the manner provided by the declaration, the
30 bylaws, and this Act. Premiums for such insurance and other
31 expenses in connection therewith shall be common expenses.
32 (b) The board of managers shall have the authority and
33 duty to obtain comprehensive public liability insurance
34 against claims and liabilities arising in connection with the
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1 ownership, existence, use or management of the property in
2 amounts, if any, specified by the condominium instruments or
3 otherwise deemed sufficient in the judgment of the board of
4 managers, insuring the board of managers, the unit owners'
5 association, the management agent, and their respective
6 employees, agents and all persons acting as agents. The
7 developer shall be included as an additional insured in his
8 capacity as unit owner and board member. The unit owners
9 shall be included as additional insureds but only with
10 respect to that portion of the premises not reserved for
11 their exclusive use. The insurance shall cover claims of one
12 or more insured parties against other insured parties. The
13 insurance shall contain a waiver of any rights to subrogation
14 by the insuring company against any of the above named
15 insured persons. Premiums for such insurance shall be common
16 expenses.
17 (c) The board of managers shall notify insured persons
18 concerning the cancellation of insurance obtained pursuant to
19 the terms of this Section.
20 (d) Any insurer defending a claim against a condominium
21 association shall notify the association of the terms of the
22 settlement before settling the claim. The association shall
23 not have power to veto such settlement, unless otherwise
24 provided by contract or statute.
25 (e) Each unit owner, regardless of whether he or she is
26 residing in the unit, shall insure against loss and damage
27 to his or her personal property, decorating, and improvements
28 located in the unit, in a limited common area serving the
29 unit, or in a storage area elsewhere on the Property.
30 Each tenant residing in a unit shall insure against loss
31 and damage to his or her personal property, decorating, and
32 improvements located in the unit, in a limited common area
33 serving the unit, or in a storage area elsewhere on the
34 Property.
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1 (Source: P.A. 84-1431; 84-1464.)".