Board members may be defended under the association's insurance coverage, but if their acts were beyond the scope of their authority, those board members may ultimately have to repay the insurer and pay any damages themselves.
Nothing prevents a plaintiff from naming individual owners in the lawsuit as defendants, although doing so could result in the plaintiff having to pay defendants' attorneys fees and costs. Any individual owners who are named as defendants will be responsible for their own attorney fees, probably not reimbursed by the association, unless the association votes to pay for the defense of these individuals.
If the association is found liable and is ordered to pay damages and must assess all owners to meet those payments, a titleholder with "excess assessment" or "loss assessment" insurance coverage may have those payments paid by his individual insurance policy. It is the insurer who decides what is and is not covered.
http://www.youtube.com/user/wizardofbaum#p/u/17/cM20AX2mLm0
MARK SHAPIRO ON HOW TO BE A BOARD MEMBER
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