The VPOAA states that the amount insured should equal the reserves plus 3 months of assessments, to cover both the HOA board AND the manager.  If the manager does not have access to the reserves, but just to the operating account, does the coverage for the manager have to be the same as for the HOA board? 

The way it is worded now, the implication is Yes.  One large insurance company's lawyers, I've been told, has indicated that that is the only interpretation they can make from the wording. 

So if the charge is  $3/$1000 for the additional named manager, the following would happen in the hypothetical situation of an HOA that has $500,000 in reserves and $75,000 for 3 months of assessments. The charge to the association for the named manager would be an additional $1725.  When in actuality the manager has access to only $75,000, and not even that after expenses bring down the amount in the checking account.