The directors of a nonprofit community association cannot turn to the association’s insurance policy for indemnification when sued for unauthorized acts by a member because the policy excludes coverage for claims for which they have the right to be indemnified by the association, an appellate court in Kentucky has held. The association and its directors were sued by several members who sought to enjoin the board from taking further actions, to force their resignation, to compel an accounting and to force the directors to pay personally for any funds for which a proper accounting could not be made. They turned to Auto Owners Insurance Company for protection, but the carrier refused. A trial...