i assuming from the question you are not on the board of directors. the board should inquire from the boards attorney what can be done. the board is charged by the condominium documents and florida statute 718 with requirements that they are obligated to fulfill in order to protect the rights of unit owners. if they fail to fulfill those obligations the state may be contacted to review the situation.
you might wish to speak to a lawyer on your own as its not clear from the facts if the unit was turned over to the unit owners or still controlled by the developer. the reason this is important is that the requirements are different for unit controlled boards and developer controlled boards
without a detailed review by a lawyer can all the issues raised in your question be appropriately addressed...nothing in this response should be construed as establishing a lawyer client relationship..the answers herein are for informational purposes and not to be construed as advice
An association cannot waive a statutory requirement to have insurance. Your association needs to hire an attorney immediately. I agree with the other attorney that your facts are not clear if the association is controlled by the members or the developer. If it is still developer-controlled, there are additional issues that should be addressed and the members need to pool their resources and consult with a condo lawyer. You can also file a complaint with the Department of Business and Professional Regulation.
This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at www.stagelaw.com.