DISCONTINUING
EARTHQUAKE INSURANCE

Boards have the authority to discontinue earthquake insurance. However, if the board were to make that decision on its own, one of the laws of the universe is that there would be a major earthquake the week after cancellation. This would result in lawsuits against all of the directors who voted in favor of cancellation.

Accordingly, if a board is considering cancellation or nonrenewal of the policy, the board should take it to a vote of the membership.

Updated by ADAMS KESSLER 10/3/2007