The bill amends the General Laws in Chapter 34-36.1, known as "Condominium Law," to clarify its applicability to condominiums created in the state after July 1, 1982, and allows those created before this date to voluntarily accept the chapter's provisions through a written agreement. The acceptance is prospective and does not affect prior actions. The bill also specifies which sections of the chapter apply to older condominiums and how they apply to events after July 1, 1982. Furthermore, it inserts new language in section 34-36.1-3.13, requiring condominium associations to maintain property and liability insurance, detailing the conditions of these policies, and addressing the primary insurance responsibility when a loss is not fully covered due to a deductible.

The bill introduces additional insurance-related obligations for unit owners, including maintaining personal insurance to cover their share of the master policy deductible and requiring the association to notify them of any deductible changes. It also clarifies that insurance proceeds for property loss are payable to the association or an insurance trustee for repair or restoration, with unit owners and lien holders entitled to surplus proceeds only after repairs or if the condominium is terminated. The bill outlines the distribution of insurance proceeds if the condominium is not fully repaired or replaced and allows unit owners to request and receive damage appraisals and determination letters. These provisions can be varied or waived for nonresidential condominiums, and the act would take effect immediately upon passage.