Proposed Insurance Requirement for Property Management Companies Fails in the Maryland Legislature

Another bill effecting condominiums and homeowners association that failed to pass during the 2012 session of the Maryland General Assembly related to insurance coverage for property management companies.  House Bill 741 would have required management companies, employed by condominiums, homeowners associations or housing cooperatives, to purchase fidelity insurance that would indemnify the assoication from an act or omission arising from fraud, dishonesty or criminal acts by an agent of employee of the mangagement company.  The proposed law received an umfavorable report from the Environmental Matters Committee, and never came to a vote.