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f. Such other insurance as the Board may determine from time to time to be in the best <br /> interests of the Association and the Owners. <br /> 2. Premiums:Imorovements: Deductibles. All insurance premiums shall be assessed and <br /> paid as a Common Expense. The insurance need not cover improvements and betterment <br /> to the Units installed by Owners, but if improvements and betterment are covered,any <br /> increased cost may be assessed against the Units affected. The Associafion may in the <br /> case of a claim for damage to a Unit,(i)pay the deductible amount as a Common Expense, <br /> (ii)assess the deductible amount against the Units affected in any reasonable manner,or <br /> (iii) require the Owners of the Units affected to pay the deductible amount directly. <br /> 3. Loss Payee:Insurance Trustee. All insurance coverage maintained by the Association shall <br /> be written in the name of,and the proceeds thereof shall be payable to,the Associafion <br /> (or a qualified insurance trustee selected by it)as trustee for the benefit of the Owners <br /> and secured parties, including Eligible Mortgagees,which suffer loss. The Associafion,or <br /> any insurance trustee selected by it,shall have exclusive authority to negotiate,settle and <br /> collect upon any claims or losses under any insurance policy maintained by the <br /> Association. <br /> 4. Waivers of Subrogation. All policies of insurance shall contain waivers of subrogation by <br /> the insurer against the Associafion,or an Owner, Members of the Owner's household, <br /> officers of directors,as applicable,and,if available,waivers of any defense based on co- <br /> insurance or of invalidity from any acts of the insured. <br /> 5. Cancellation: Notice of loss. All policies of property insurance and comprehensive <br /> liability insurance maintained by the Associaiion shall provide that the policies shall not be <br /> canceled or substantially modified,for any reason,without at least 30 days prior written <br /> notice to the Associafion,to the FHA or FNMA(if applicable),all of the insured and all <br /> Eligible Mortgagees. <br /> 6. Restoration in Lieu of Cash Settlement. All policies of property insurance maintained by <br /> the Association shall provide that,despite any provisions giving the insurer the right to <br /> elect to restore damage in lieu of a cash settlement,such option shall not be exercisable (i) <br /> without the prior written approval of the Association (or any Insurance Trustee)or(ii) <br /> when in conflict with provisions of any insurance trust agreement to which the Association <br /> may be a party, or any requirements of law. <br /> 7. No Contribution. All policies of insurance maintained by the Association shall be the <br /> primary insurance where there is other insurance in the name of the Owner covering the <br /> same property,and may not be brought into contribution with any insurance purchase by <br /> Owners or their Eligible Mortgagees. <br /> 19 <br />