Top Things You Need To Know as a

New Association Executive2012 AE Institute

June Babiracki Barlow (for Susie Kater)

InsuranceGoverning DocumentsProfessional Standards

Insurance

WHAT KIND OF INSURANCE DO I ALREADY HAVE?NAR Professional Liability

WHO IS INSURED?The National and each state and local Association of REALTORS®.Each AOR and, including but not limited to, its:

DirectorsOfficersEmployees Volunteers acting on behalf of the AORPaid mediators, arbitrators and ombudsmen

WHAT ARE THE LIMITS ON THE NAR POLICY?$1M per claim

Insurance …continued

WHAT DOES THE NAR POLICY COVER?Wrongful acts in the discharge of duties for AOR including Professional Standards or other committees, meaning, misconduct including, but not limited to, any:

Negligent actError OmissionMisleading statementBreach of fiduciary duty

Personal Injury:SlanderFalse arrestWrongful entry or eviction

Insurance Coverage… continued

Publishers Liability:Trademark or copyright infringement etc.

Crime – $3,000 limit each lossLockbox liability – defense onlyAnti-trust – defense only Discrimination – defense onlySexual harassment – defense onlyEmployment practices – defense onlyTrademark or copyright infringement by an MLS – defense onlyBreach of contract – defense only

Insurance …continued

Duty To DefendThe policy contains a “duty to defend:”

The insurer is required to hire an attorney to defend you and to pay all costs of litigation, in excess of your deductible, up to the claim limit

How Much Is My Deductible For The Nar Insurance?$5,000 to $8,000 per claim, depending on size of your membership

Do I Have To Pay For The Nar Insurance?No, it is provided to you free of charge by NAR

Can I Lose Coverage Under The Nar Policy?Yes, to maintain coverage under the NAR policy you must:

Have your Bylaws and MLS Rules approved by NARAdhere to and operate in compliance with NAR policy

Additional Insurance? • You can purchase whatever additional insurance you think you

may need – either from the NAR insurer or some other insurer

C.A.R.’s insurance (covers C.A.R. & subs):

• Professional Liability• Professional Liability Umbrella• Commercial General Liability – for Bodily Injury and Property Damage Liability• Employment Practices Liability• Auto Liability – for both non-owned and hired autos• Property Insurance – like fire insurance• Earthquake Insurance• Fiduciary Liability – for employee benefits administration• Crime Policy – for employee theft etc.• Cyber Liability – for damage caused to others through our web site• Workers Compensation• Directors and Officers Liability

Other Insurance Issues

WHAT ELSE DO I NEED TO KNOW?Named insured schedule:

If you purchase your own insurance, add all of your subsidiaries and MLS as named insureds

Notice:If you are served with a lawsuit, notify your insurance broker and/or insurance carrier immediately Late notice to insurer can endanger coverage

Deductible:Try to get an endorsement on your association’s separate policy that says that payment by the NAR policy satisfies your deductible

Governing DocumentsBylawsMLS rules

Timing

Submit association bylaws and MLS Rules to NAR – every every two (2) years C.A.R. Model Documents

California Model BylawsCalifornia MLS RulesCalifornia Code of Ethics and Arbitration Manual

Preapproved Documents (CA law and NAR approval)VoluntaryAmendments

Common Bylaws Issues

• Membership requirements

• Secondary v. Primary• Three way agreement• Variable Dues• Elections

– Meeting v. ballot

• Law• Bylaws• Roberts Rules

Professional Standards

• Certified Pro Standards Administrator• Next training October 2, 2012• Lateral honoring of suspensions• C.A.R. local training• Ombudsman

Multiple Listing Service

Palsson (1976) and People v. N.A.R. (1981)Tax IssuesRelationship to Regional MLS

Yet to be done…Electronic central filing system/repository

More client facing materials

New legal products

Mediation prototype plan (buyer-seller) w/ REBS

Ombudsman program ready to go as of July

Trending trial data with new westlaw tool

A note about two C.A.R. Major Services

Legal HotlineZipforms

Questions?

 WHO DO I CONTACT FOR HELP?

Susie Kater, C.A.R. Senior Corporate Counsel, 213-739-8215, susiek@car.orgContact Susie for questions regarding:

Pro StandardsBylawsBODCommitteesElectionsDuesMembership issuesHow to keep from pulling your hair out!!

Contact Elizabeth Miller-Bougdanos, C.A.R. Senior Corporate Counsel, 213-739 -8287, elizabethm@car.org

MLS issues