AB 350 is a new bill that was enacted relating to management agreements involving common interest communities and its community managers. The new bill indicates and specifies the conditions of the management agreement between a common interest community and its community managers. AB 350 states that the management agreement must specify the varieties of insurance that each of the contracting parties must acquire; this insurance comprises of a liability policy covering errors and omissions or professional liability, or a surety bond in a quantity of at least $1 million. Proof of a fidelity bond is also called for. Additionally, the management agreement must provide for which of the contracting parties will supply a fidelity bond. AB 350 became active on July 1st, 2009.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.