40-3007. Board of directors of association; selection; approval; vacancies; compensation.
40-3007
40-3007. Board of directors of association; selection; approval;vacancies; compensation.(a) The board of directors of the association shall consist of not lessthan five nor more than nine member insurersserving terms as establishedin the plan of operation. The members of the board shall be selected bymember insurers subject to the approval of the commissioner. Vacancies onthe board shall be filled for the remaining periods of the terms bya majority vote of theremaining board members, subject to the approval of the commissioner. Toselect the initial board ofdirectors, and initially organize the association, the commissioner shallgive notice to all member insurers of the time and place of theorganizational meeting. In determining voting rights at the organizationalmeeting each member insurer shall be entitled to one vote in person orby proxy. If the board of directors is not selected within 60 daysafter notice of the organizational meeting, the commissioner may appointthe initial members.
(b) In approving selections or in appointing members to the board, thecommissioner shall consider, among other things, whether all memberinsurers are fairly represented.
(c) Members of the board may be reimbursed from the assets of theassociation for expenses incurred by them as members of the board ofdirectors but members of the board shall not otherwise be compensated bythe association for their services.
History: L. 1972, ch. 190, § 7;L. 1986, ch. 180, § 5; July 1.