300 lines
16 KiB
JSON
300 lines
16 KiB
JSON
{
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"_meta": {
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"code": "VS-07",
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"title": "Insurance — D&O Coverage",
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"version": "1.0",
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"statute_primary": "765 ILCS 605/12",
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"statute_secondary": "765 ILCS 605/18.4",
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"diagnostic_question": "Do Board members understand their personal fiduciary liability exposure — and is D&O coverage in place, current, and adequate?",
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"dsc_activations": ["DSC-04", "DSC-07", "DSC-08"],
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"verification_sources": [
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{
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"label": "Illinois Department of Insurance — Company Search",
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"url": "https://mc.insurance.illinois.gov/messagecenter.nsf",
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"instruction": "Verify the issuing insurer's license status in Illinois. The association's certificate of insurance should name the insurer, policy number, and coverage period."
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},
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{
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"label": "Kane County Recorder of Deeds",
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"url": "https://www.kanecountyrecorder.com",
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"instruction": "Some associations record insurance certificates or master policy declarations. Check for recorded insurance documents under the association name."
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},
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{
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"label": "Illinois Compiled Statutes — 765 ILCS 605/12",
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"url": "https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2200",
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"instruction": "Section 12 governs insurance requirements for condominium associations. Verify whether the current coverage meets the statutory minimum requirements."
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}
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],
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"renderer_notes": "VS-07 has a different homeowner perspective pattern from other VS codes. The homeowner cannot independently verify D&O coverage — they can only record what they have been told and what they have observed. The diagnostic signal in the homeowner record is therefore not the coverage condition itself but the information asymmetry: what was the homeowner told, when, and by whom. The professional record is where the coverage condition is actually verified. Render the homeowner perspective fields as an information record, not a verification record. The absence of any communication to the homeowner about D&O coverage is itself a diagnostic flag."
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},
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"perspectives": {
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"homeowner": {
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"label": "Your Record",
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"access_state": "participant",
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"instruction": "Record what you have been told about your association's insurance coverage, particularly Directors and Officers coverage. You are not expected to have verified this. Record what you know, what you have been told, and whether the subject has ever come up.",
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"fields": [
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{
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"id": "ho_do_coverage_communicated",
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"label": "Has the association ever communicated to the membership that Directors and Officers liability insurance is in place?",
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"type": "select",
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"required": true,
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"options": [
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{ "value": "yes_annual", "label": "Yes — coverage is reported at annual meetings" },
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{ "value": "yes_on_request", "label": "Yes — but only when a homeowner specifically asked" },
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{ "value": "yes_once", "label": "Yes — mentioned once but not regularly communicated" },
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{ "value": "no", "label": "No — D&O coverage has never been mentioned" },
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{ "value": "unknown", "label": "I do not know" }
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],
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"diagnostic_flag": true,
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"flag_condition": "no",
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"flag_label": "D&O coverage never communicated to membership",
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"flag_note": "Board members who do not know whether D&O coverage exists may not understand their personal fiduciary liability exposure. Decisions made without that understanding — particularly enforcement actions, Special Assessments, and contract approvals — carry personal liability risk the board may not have considered."
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},
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{
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"id": "ho_general_insurance_communicated",
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"label": "Has the association ever provided the membership with a summary of the association's insurance coverage — property, liability, and D&O?",
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"type": "boolean",
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"required": true,
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"diagnostic_flag": true,
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"flag_condition": false,
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"flag_label": "No insurance summary provided to membership"
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},
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{
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"id": "ho_certificate_requested",
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"label": "Have you ever requested a copy of the association's certificate of insurance?",
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"type": "boolean",
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"required": true
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},
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{
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"id": "ho_certificate_received",
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"label": "Were you provided the certificate?",
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"type": "select",
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"required": false,
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"depends_on": { "field": "ho_certificate_requested", "value": true },
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"options": [
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{ "value": "yes_complete", "label": "Yes — I received a complete certificate" },
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{ "value": "yes_partial", "label": "Yes — I received partial information" },
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{ "value": "no_denied", "label": "No — my request was denied" },
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{ "value": "no_ignored", "label": "No — my request was ignored" }
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],
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"diagnostic_flag": true,
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"flag_condition": ["no_denied", "no_ignored"],
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"flag_label": "Insurance certificate request denied or ignored"
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},
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{
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"id": "ho_board_aware_liability",
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"label": "Based on your observation of Board decisions, do you believe the Board members understand that they can be held personally liable for decisions made outside their authority or in breach of their fiduciary duty?",
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"type": "select",
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"required": true,
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"options": [
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{ "value": "yes", "label": "Yes — they appear aware of their personal liability exposure" },
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{ "value": "no", "label": "No — their decisions suggest they do not understand the personal liability risk" },
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{ "value": "unknown", "label": "I cannot assess this" }
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],
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"diagnostic_flag": true,
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"flag_condition": "no",
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"flag_label": "Board decisions suggest unawareness of personal fiduciary liability",
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"flag_note": "A board that makes decisions outside its authority, enforces void provisions, or approves unauthorized expenditures without apparent awareness of personal liability risk is acting without the protection D&O coverage is designed to provide — and potentially without that coverage in place at all."
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},
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{
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"id": "ho_coverage_lapsed_suspected",
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"label": "Do you have any reason to believe the association's insurance coverage has lapsed or been cancelled?",
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"type": "boolean",
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"required": true,
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"diagnostic_flag": true,
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"flag_condition": true,
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"flag_label": "Insurance coverage lapse suspected"
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},
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{
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"id": "ho_coverage_lapse_detail",
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"label": "Describe the basis for your concern.",
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"type": "textarea",
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"required": false,
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"depends_on": { "field": "ho_coverage_lapsed_suspected", "value": true },
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"placeholder": "Example: The association failed to pay the insurance premium in [year]. No coverage renewal notice was communicated to the membership. A water damage claim was denied citing lapsed coverage."
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},
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{
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"id": "ho_account",
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"label": "Your account — describe what happened in your own words.",
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"type": "textarea",
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"required": false,
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"placeholder": "No required format. No legal terminology needed. You do not need to be neutral. You need to be accurate."
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}
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]
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},
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"professional": {
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"label": "Professional Record",
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"access_state": "professional",
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"instruction": "Verify D&O coverage, property coverage, and general liability coverage from the certificate of insurance. Assess whether coverage meets statutory minimums and whether the board's conduct in this dispute falls within or outside the scope of D&O coverage. Upgrade or downgrade the homeowner record as warranted.",
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"fields": [
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{
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"id": "pro_do_coverage_verified",
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"label": "D&O coverage status — verified from certificate of insurance",
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"type": "select",
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"required": true,
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"options": [
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{ "value": "active_adequate", "label": "Active and adequate — meets statutory minimums" },
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{ "value": "active_inadequate", "label": "Active but potentially inadequate — coverage limits reviewed" },
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{ "value": "lapsed", "label": "Lapsed — coverage has expired" },
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{ "value": "cancelled", "label": "Cancelled — coverage was terminated" },
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{ "value": "not_found", "label": "No D&O coverage found" },
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{ "value": "not_verified", "label": "Not yet verified" }
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],
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"diagnostic_flag": true,
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"flag_condition": ["lapsed", "cancelled", "not_found"],
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"flag_label": "D&O coverage not active — board members personally exposed"
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},
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{
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"id": "pro_do_policy_period",
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"label": "D&O policy period",
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"type": "text",
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"required": false,
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"depends_on": { "field": "pro_do_coverage_verified", "value": ["active_adequate", "active_inadequate"] },
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"placeholder": "e.g. 01/01/2024 — 12/31/2024"
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},
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{
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"id": "pro_do_coverage_limit",
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"label": "D&O coverage limit",
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"type": "text",
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"required": false,
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"depends_on": { "field": "pro_do_coverage_verified", "value": ["active_adequate", "active_inadequate"] },
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"placeholder": "e.g. $1,000,000 per occurrence"
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},
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{
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"id": "pro_property_coverage_verified",
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"label": "Property and general liability coverage status",
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"type": "select",
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"required": true,
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"options": [
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{ "value": "active_adequate", "label": "Active and adequate" },
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{ "value": "active_inadequate", "label": "Active but potentially inadequate" },
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{ "value": "lapsed", "label": "Lapsed" },
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{ "value": "not_found", "label": "Not found" },
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{ "value": "not_verified", "label": "Not yet verified" }
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],
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"diagnostic_flag": true,
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"flag_condition": "lapsed",
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"flag_label": "Property or liability coverage lapsed — statutory minimum not met"
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},
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{
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"id": "pro_statutory_minimum_met",
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"label": "Does the verified coverage meet the statutory minimums under 765 ILCS 605/12?",
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"type": "boolean",
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"required": true,
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"diagnostic_flag": true,
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"flag_condition": false,
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"flag_label": "Statutory minimum insurance requirements not met"
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},
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{
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"id": "pro_conduct_within_coverage",
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"label": "Does the board's conduct in the disputed matter fall within the scope of D&O coverage — or does the conduct constitute intentional misconduct or bad faith that would typically be excluded?",
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"type": "select",
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"required": false,
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"options": [
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{ "value": "within_coverage", "label": "Within coverage — conduct appears to fall within standard D&O scope" },
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{ "value": "exclusion_possible", "label": "Exclusion possible — conduct may trigger intentional act or bad faith exclusion" },
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{ "value": "outside_coverage", "label": "Outside coverage — conduct constitutes intentional misconduct not covered by D&O" },
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{ "value": "coverage_dispute_likely", "label": "Coverage dispute likely — insurer may contest coverage for this conduct" },
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{ "value": "not_assessed", "label": "Not yet assessed" }
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],
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"diagnostic_flag": true,
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"flag_condition": ["outside_coverage", "exclusion_possible"],
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"flag_label": "Board conduct may fall outside D&O coverage scope — personal liability unprotected"
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},
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{
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"id": "pro_coverage_conduct_detail",
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"label": "Explain the coverage scope assessment.",
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"type": "textarea",
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"required": false,
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"depends_on": { "field": "pro_conduct_within_coverage", "value": ["exclusion_possible", "outside_coverage", "coverage_dispute_likely"] },
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"placeholder": "Identify the specific conduct and the policy exclusion or coverage limitation that may apply."
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},
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{
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"id": "pro_assessment",
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"label": "Professional assessment — upgrade, downgrade, or confirm the homeowner record.",
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"type": "select",
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"required": true,
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"options": [
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{ "value": "confirmed", "label": "Confirmed — homeowner record is accurate" },
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{ "value": "upgraded", "label": "Upgraded — condition is more significant than homeowner record indicates" },
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{ "value": "downgraded", "label": "Downgraded — condition is less significant than homeowner record indicates" },
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{ "value": "insufficient", "label": "Insufficient information — further verification required" }
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]
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},
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{
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"id": "pro_notes",
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"label": "Professional notes",
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"type": "textarea",
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"required": false,
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"placeholder": "Include policy details, statutory citation for coverage minimums, and any analysis of whether the board's specific conduct in this dispute is covered or excluded."
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}
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]
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},
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"public_record": {
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"label": "Public Record",
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"access_state": "operator",
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"instruction": "Enter the court or appellate ruling on any insurance coverage, D&O coverage, or fiduciary liability question. Immutable after submission except for corrections to spelling or citation format.",
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"immutable_after_submit": true,
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"fields": [
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{
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"id": "pr_adjudicated_condition",
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"label": "Condition adjudicated",
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"type": "select",
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"required": true,
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"options": [
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{ "value": "do_coverage_required", "label": "D&O coverage — statutory requirement" },
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{ "value": "do_coverage_scope", "label": "D&O coverage — scope or exclusion dispute" },
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{ "value": "fiduciary_liability", "label": "Personal fiduciary liability — board member" },
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{ "value": "property_coverage", "label": "Property or liability coverage — statutory minimum" },
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{ "value": "other", "label": "Other — describe in summary" }
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]
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},
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{
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"id": "pr_case_citation",
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"label": "Case citation",
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"type": "text",
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"required": true,
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"placeholder": "e.g. Smith v. Elm Court Condominium Assoc., 2023 IL App (2d) 220145"
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},
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{
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"id": "pr_court",
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"label": "Court",
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"type": "text",
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"required": true,
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"placeholder": "e.g. Illinois Appellate Court, Second District"
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},
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{
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"id": "pr_ruling_date",
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"label": "Ruling date",
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"type": "date",
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"required": true
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},
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{
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"id": "pr_ruling_summary",
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"label": "Ruling summary — the court's finding in plain language.",
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"type": "textarea",
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"required": true,
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"placeholder": "Describe what the court determined and on what basis."
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}
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]
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}
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},
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"spool": {
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"contract_version": "1.0",
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"addon": "vs01",
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"vs_code": "VS-07",
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"payload_fields": [
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"perspective",
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"association_address",
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"submitted_at",
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"standing",
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"fields"
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],
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"notes": "VS-07 is the only VS where the homeowner perspective is explicitly an information record rather than a verification record. The renderer spec must reflect this distinction — homeowner fields ask what was communicated, not what was verified. The professional record is where verification occurs. The compound condition to watch for: D&O coverage not active combined with board conduct that falls outside coverage scope — the board is personally exposed with no insurance backstop."
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}
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}
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