ENROLLED
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 79
Regular Session, 2012
HOUSE BILL NO. 311
BY REPRESENTATIVE LEGER
AN ACT1
To amend and reenact R.S. 9:1123.113, relative to condominiums; to authorize an equivalent2
form of insurance to satisfy the requirement that condominium associations maintain3
a fidelity bond; to require proof of the insurance to be kept on the condominium4
premises; to provide for the right to inspect the proof of insurance; to require notice5
of the insurance and the right to inspect the proof of insurance; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:1123.113 is hereby amended and reenacted to read as follows: 9
ยง1123.113. Fidelity bond or equivalent form of insurance required10
A. Any unit owners' association collecting assessments for common11
expenses shall obtain and maintain a blanket fidelity bond or other equivalent form12
of insurance covering the officers, directors, and persons employed by the unit13
owners' association, and any managing agent and employees of the managing agent.14
B. The bond or equivalent form of insurance shall provide coverage in an15
amount equal to the lesser of one million dollars or the amount of reserve balances16
of the unit owners' association plus one-fourth of the aggregate annual assessment17
of the unit owners' association. The minimum coverage amount shall be ten18
thousand dollars.19
C. Any unit owners' association whose managing agent maintains its own20
bond or equivalent form of insurance shall be in compliance with this Section,21
provided that the managing agent's bond or equivalent form of insurance meets the22
requirements set forth in this Section, and that the association is named as an23
additional insured under the managing agent's bond or equivalent form of insurance.24 ENROLLEDHB NO. 311
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D.(1) The unit owners' association or the managing agent shall maintain1
proof of the bond or equivalent form of insurance required by this Section on the2
premises of the condominium at all times.3
(2) The unit owners' association or the managing agent shall make the proof4
available for inspection by a member of the condominium unit owners' association5
upon request of the member.6
(3) The unit owners' association or the managing agent shall also provide7
every member of the unit owners' association with written or electronic notice of the8
bond or equivalent form of insurance as well as a statement notifying the member9
that the member has a right to inspect the proof of the bond or equivalent form of10
insurance required by this Section.11
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: