Releasing Insurance Claim Information - HOA

[twelvegates]

What is the name of your state (only U.S. law)? Colorado

A member of our HOA filed an insurance claim against the HOA's liability policy.

Should the Board release the name of the individual who filed the claim, or just the general reason for the claim (i.e., defamation, etc.) and the fact that a claim was filed? (There are HOA members who are asking for the name of the claimant.)

Board is weighing duty of confidentiality vs duty of transparency.

This is a ridiculously small HOA (less than 20 members), with equally small dues, and the bylaws state that the Board must ask the HOA members for permission to pay for legal advice.


TIA

 

[LdiJ]

What is the name of your state (only U.S. law)? Colorado

A member of our HOA filed an insurance claim against the HOA's liability policy.

Should the Board release the name of the individual who filed the claim, or just the general reason for the claim (i.e., defamation, etc.) and the fact that a claim was filed? (There are HOA members who are asking for the name of the claimant.)

Board is weighing duty of confidentiality vs duty of transparency.

This is a ridiculously small HOA (less than 20 members), with equally small dues, and the bylaws state that the Board must ask the HOA members for permission to pay for legal advice.


TIA

Why do the HOA members feels that they need the reason for the claim and the name of the claimant? I personally would be leery of releasing that kind of information to the membership since some people might treat the claimant badly for causing the insurance rates to raise.

 

[Just Blue]

What is the name of your state (only U.S. law)? Colorado

A member of our HOA filed an insurance claim against the HOA's liability policy.

Should the Board release the name of the individual who filed the claim, or just the general reason for the claim (i.e., defamation, etc.) and the fact that a claim was filed? (There are HOA members who are asking for the name of the claimant.)

Board is weighing duty of confidentiality vs duty of transparency.

This is a ridiculously small HOA (less than 20 members), with equally small dues, and the bylaws state that the Board must ask the HOA members for permission to pay for legal advice.


TIA

PxHx**************.

 

[twelvegates]

Why do the HOA members feels that they need the reason for the claim and the name of the claimant? I personally would be leery of releasing that kind of information to the membership since some people might treat the claimant badly for causing the insurance rates to raise.

There is a clear division in the neighborhood, and the individuals who want to know the name of the party want to spread it around the community to attempt to tarnish the reputation of that person. In this case, one of their group, who happens to be on the Board of Directors, called the insurance provider, who provided all of the details of the claim, including the name of the claimant. I'm guessing that this Board member already told his buddies everything he knows, but that is my opinion only.

The annual meeting is looming, and this group wants the Association to make a formal announcement of the fact that this fellow filed a claim. They feel that the HOA has a right to know who filed the claim and why.

The remainder of the Board feels that the important information is that a claim was filed and why it was filed (in simple terms -- defamation), and simply indicate that it is a pending insurance matter and we will not discuss it further.

 

[justalayman]

20 members and nobody can figure out who it is?





Why would you think the HOA members don’t have a right to know who is making a claim of damages against them? The insurance provider indemnifies the HOA. The HOA is the members. The board is simply an administrative entity. The board holds no power and has no authority the members do not give it. .

You do realize the members fees are affected by claims made that the insurance will pay, right? Don’t you think the members have the right to know of a claim and be able to object to the payment if they believe there is something improper?

The remainder of the Board feels that the important information is that a claim was filed and why it was filed (in simple terms -- defamation), and simply indicate that it is a pending insurance matter and we will not discuss it further.

I cannot imagine the insurance provider paying a claim for defamation without a court judgment. Everybody will know everything about it when it goes to court.

 

[twelvegates]

20 members and nobody can figure out who it is?

Why would you think the HOA members don’t have a right to know who is making a claim of damages against them? The insurance provider indemnifies the HOA. The HOA is the members. The board is simply an administrative entity. The board holds no power and has no authority the members do not give it. You do realize the members fees are affected by claims made that the insurance will pay, right? Don’t you think the members have the right to know of a claim and be able to object to the payment if they believe there is something improper?

As with most HOAs, there are members who involve themselves with HOA matters and those who pay their dues and want nothing else to do with the HOA. So we actually have just a small group of people who want the information spread around.

I was of the impression that the insurance company determines who is at fault in these scenarios, not the HOA members???

The Board surely would not spread information about a member in foreclosure.

And no, there isn't a court judgment.

 

[justalayman]

As with most HOAs, there are members who involve themselves with HOA matters and those who pay their dues and want nothing else to do with the HOA. So we actually have just a small group of people who want the information spread around.

I was of the impression that the insurance company determines who is at fault in these scenarios, not the HOA members???

The Board surely would not spread information about a member in foreclosure.

And no, there isn't a court judgment.

An insurance company or HOA cannot determkne legal fault in any situation. Only a court of law can assign legal fault.

I have no idea what a member in foreclosure has to do with anything. The issue isn’t anything similar.

 

[twelvegates]

An insurance company or HOA cannot determkne legal fault in any situation. Only a court of law can assign legal fault.

I have no idea what a member in foreclosure has to do with anything. The issue isn’t anything similar.

All I'm trying to do is determine whether a Board of Directors should release the name of a person who filed an insurance claim.
You brought up the matter of how other HOA members might get involved in an insurance claim.
The Board has a duty of confidentiality towards homeowners who are in foreclosure. Does the Board have a duty of confidentiality towards members who file a claim for damages against the HOA's insurance?

 

[justalayman]

All I'm trying to do is determine whether a Board of Directors should release the name of a person who filed an insurance claim.
You brought up the matter of how other HOA members might get involved in an insurance claim.
The Board has a duty of confidentiality towards homeowners who are in foreclosure. Does the Board have a duty of confidentiality towards members who file a claim for damages against the HOA's insurance?

I’m surprised you would even be aware of whether a member was in foreclosure.

If it’s a judicial foreclosure it’s a matter of public record so I don’t understand why there is any concern of confidentiality. In a non-judicial foreclosure I can’t see how the HOA would even knoabout it.


Regardless, a foreclose is nothing like an action against the HOA where the members have a vested interest in the outcome. Those who have a financial interest in the result have a valid right to know why somebody wants their money. I would be more concerned with your fiduciary obligations to the members you represent.

 

[LdiJ]

An insurance company or HOA cannot determkne legal fault in any situation. Only a court of law can assign legal fault.

I have no idea what a member in foreclosure has to do with anything. The issue isn’t anything similar.

There has to be more to the story than we are being told...because otherwise the insurance company would have just denied the claim out of hand.

 

[justalayman]

There has to be more to the story than we are being told...because otherwise the insurance company would have just denied the claim out of hand.

Well, op hasn’t said the claim has been reviewed and acted on yet.

But I’m with ya on this. I can’t see an insurance company paying on a claim for defamation if there is no legal actions leading up to that point.

 

[adjusterjack]

I cannot imagine the insurance provider paying a claim for defamation without a court judgment.

Well, go ahead and imagine it, because it's done every day.

The insuring agreement of every liability policy reads something like this:

We will pay those sums that the insured becomes
legally obligated to pay as damages because
of "bodily injury" or "property damage" to
which this insurance applies. We will have the
right and duty to defend the insured against any
"suit" seeking those damages. However, we will
have no duty to defend the insured against any
"suit" seeking damages for "bodily injury" or
"property damage" to which this insurance does
not apply. We may, at our discretion, investigate
any "occurrence" and settle any claim or
"suit" that may result.

The General Liability coverage in an HOA package policy typically extends liability coverage to include:

Oral or written publication of material that slanders or libels a person or organization or
disparages a person’s or organization’s goods, products or services; or
Oral or written publication of material that violates a person’s right of privacy.

While an insurance company may deny and defend, it quite often offers go-away money on questionable claims because the contract allows it to do so.

An insurance company or HOA cannot determine legal fault in any situation. Only a court of law can assign legal fault.

True. But an insurance company can, and often does, accept liability on behalf of its insured if the claim has merit. The policy allows it to do that without the necessity of litigation.

Which is not to say that an insurance company won't litigate when appropriate.

 

[justalayman]

Well, go ahead and imagine it, because it's done every day.

for defamation? Sure jack. If you say so.

Every day.

Maybe you can find support for that for the last 7 days or so.

I never said they couldn’t settle and pay but regarding a defamation claim, I cannot imagine the insurance provider even listening unless there was a suit filed. It’s not like a broken leg where the proof and liability is somewhat self evident.

 

[twelvegates]

The claim has not been reviewed and acted upon by the insurance company, and I agree that it is going to be denied.

I just don't want the Board to get sued for releasing the information regarding the claimant to the members of the HOA.

 

[adjusterjack]

for defamation? Sure jack. If you say so.

Every day.

Maybe you can find support for that for the last 7 days or so.

Don't hold your breath.

I cannot imagine the insurance provider even listening unless there was a suit filed.

An insurance company has a duty to "listen" to (and investigate) ANY claim brought against its insured by a third party.

Insurance companies get sued every day for failing to comply with their duties to their insureds.

And, no, I'm not going to name every insurance company in the United States that has been sued by an insured in the last 7 days.