Top Things You Need To Know as a New Association Executive 2012 AE Institute June Babiracki Barlow (for Susie Kater)

Insurance Governing Documents Professional 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: Directors Officers Employees Volunteers acting on behalf of the AOR Paid 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 act Error Omission Misleading statement Breach of fiduciary duty Personal Injury: Slander False arrest Wrongful entry or eviction

Insurance Coverage… continued Publishers Liability: Trademark or copyright infringement etc. Crime – $3,000 limit each loss Lockbox liability – defense only Anti-trust – defense only Discrimination – defense only Sexual harassment – defense only Employment practices – defense only Trademark or copyright infringement by an MLS – defense only Breach of contract – defense only

Insurance …continued Duty To Defend The 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 NAR Adhere 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 Documents Bylaws MLS rules

Timing Submit association bylaws and MLS Rules to NAR – every every two (2) years C.A.R. Model Documents California Model Bylaws California MLS Rules California Code of Ethics and Arbitration Manual Preapproved Documents (CA law and NAR approval) Voluntary Amendments

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 Issues Relationship 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 Hotline Zipforms

Questions? WHO DO I CONTACT FOR HELP? Susie Kater, C.A.R. Senior Corporate Counsel, , Contact Susie for questions regarding: Pro Standards Bylaws BOD Committees Elections Dues Membership issues How to keep from pulling your hair out!! Contact Elizabeth Miller-Bougdanos, C.A.R. Senior Corporate Counsel, , MLS issues