Check association insurance against the volunteer-director minimums
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Compare the policies the lawyer supplies with the two minimums in § 5800, and flag a missing cover or a short limit. Do not prepare a valuation.
- What the lawyer must review
- California Civil Code § 5800 limits the personal liability of a volunteer officer or director, above the stated insurance, for a tortious act or omission, only if the act was within association duties, in good faith, and not willful, wanton, or grossly negligent, and the association had in effect general liability cover and individual liability cover for negligent acts of officers and directors. The minimum is at least $500,000 if the development has 100 or fewer separate interests, and at least $1,000,000 if it has more than 100. The section applies only to a volunteer who is a residential tenant or who owns no more than two separate interests, all residential. A declarant, or a person compensated as an employee of the declarant or of a foreclosing lender, is not a volunteer. Payment of actual expenses does not remove volunteer status. The section does not limit the association's own liability. You decide whether the person and the policies meet the section. There is no valuation cycle in this section. Do not invent one. This is California.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review the original source set for relevant material absent from the output, including contrary evidence, qualifications and remaining gaps.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.