AEA Special Meeting at MVSC 11/18/23

Aloha Estates Association

P.O. Box 566

Mountain View, HI 96771

Subject: General Liability Insurance and/or Directors and Officers Liability Insurance

Meeting Date: November 18, 2023, at 9 AM Meeting

Place: Mountain View Senior Center

Aloha Property Owners and Residents of Aloha Estates,

When it was time to renew our General and Directors/Officer’s Liability insurance this year, the Board was shocked by the extreme price increase for one year of coverage for a one-million-dollar policy. We then checked other agencies and considered modifying our deductible amount and coverage, and it did not make much of a difference in the price. Prices have dramatically increased from $575 paid in 2022 to now $5,000 or more.

Our average annual income from road maintenance dues is approximately $18,000. Buying an insurance policy will cost roughly 28% of our annual income. Since the creation of the Aloha Estates Association in 1979, we have not been sued. Agencies that provided quotes were made aware of this.

Our charge as an Association is to maintain and improve roads in Aloha Estates. Moving forward using nearly a third of our income to pay for liability insurance is a decision the Board is not willing to make without input from the property owners. Our options are:

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Pay approximately $5,000+ annually for General and/or Director’s and Officer’s Liability insurance

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Do not purchase Liability insurance

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Seek input from our property owners for alternative options

We have organized a meeting in Mountain View, Hawaii at the Senior Center on November 18th to discuss this issue. If you cannot attend the meeting to make your thoughts heard, please write an email to AEA96771@yahoo.com or send us a letter before Nov. 18th.

There is a section in our Articles of Incorporation and Corporate Bylaws that highlights protection for Board members. I suggest you review this section, Article X: https://www.alohaestates.org/_files/ugd/a96731_d89623e9d6fa438191087534bf8be745.pdf We hope to hear from you at the meeting or by mail or email before the meeting.

Aloha,

Glen Barfield, President Aloha Estates Association