QUESTION: Do you see any problem with a board president who works for an insurance agency requesting that the HOA insurance be placed with the insurance agency where the board president is employed? The board president in question does not work in the capacity of an insurance agent and is not employed in sales.
RESPONSE: If the president does not personally benefit from the board's action and recuses himself from any discussion and vote on the matter, i.e., leaves the room so the board can freely discuss the issue, I don't see a problem. I would hate to see a perfectly good insurance product excluded from the board's consideration simply because a director is affiliated with the company.
If the director sells insurance and receives a commission from the board's decision, or demands the board buy his company's policy, then there is a problem. If the president demands it, the board should refuse. If he simply offers it for consideration, the director should not only recuse himself from the decision-making process, he should voluntarily give up his commission so as to avoid any accusation from members that he was self-dealing.
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