RCSC responds to insurance concerns

First of all, I would like to thank James Whitehouse for his comments about the Sundial situation. The RCSC Board of Directors always appreciates suggestions and input from cardholders. Our community is full of very knowledgeable and talented individuals, and we need their help to keep Sun City a great place to live.

In response to Mr. Whitehouse’s concerns, RCSC’s insurance policy is a standard one that is typical in the industry. The RCSC Board of Directors, the Insurance Committee and RCSC’s legal counsel regularly reviewed RCSC’s policy. It is important to note, however, that although Cincinnati Insurance denied our claim on the basis of the failure being related to a structural defect, RCSC disagrees and expects our challenge to the claim denial to be upheld.

RCSC continually reviews its insurance policies and will carefully examine them for potential exclusions. As we all know, a completely customized insurance policy, covering every possible contingency, usually is not feasible. However, RCSC will continue to include as many contingencies in its insurance contracts as is necessary and practical.

In response to questions about other steps RCSC is taking, cardholders can be assured that RCSC continues to investigate all possible methods of recovery in the Sundial situation. Arizona has a Statute of Repose in place that only holds manufacturers liable for eight years from completion of a product or project. Obviously Sundial has been completed for much longer than eight years, so that avenue of recovery does not appear to be open to RCSC.

The RCSC Board of Directors and management will continue to diligently pursue the Sundial matter and operate Sun City’s recreation facilities in a prudent and responsible manner. The Board welcomes comments and questions from members and offers many opportunities throughout the year for members to voice their concerns.

Denny Nichols

RCSC President