Rule 120-2-14-.14 - Claims against Plan; Members and Staff(1) The Plan shall pay on behalf of any individual or subscriber all sums which the individual or subscriber shall become legally obligated to pay as a result of or in connection with the performance of official duties as an officer, employee or representative on any committee of the Plan.(2) The Plan shall have the right and duty to defend any suit or claim against such individual or subscriber seeking damages as a result of or in connection with the performance of official duties as an officer, employee or representative on any committee of the Plan.(3) The Plan shall be obligated under paragraphs (1) and (2) above regardless of when claim or suit is made, as long as the incident giving rise to the obligation occurred during the period of time that individual or subscriber served as an officer, employee or representative on any committee of the Plan, and was acting in such official capacity.(4) The Plan may make such investigations and settlements of any claims or suits as it deems expedient.(5) The cost of fulfilling the obligations of the Plan as described in this Rule shall be an expense incurred pursuant to Rule 120-2-14-.07.(6) The obligations of the Plan as described in this Chapter do not arise: (a) If the individual or subscriber fails to report the claim or suit to the manager of the Plan within ten (10) days of actual notice of such claim or suit; or(b) If, after the defense of a claim or suit arising pursuant to this section it is adjudged that the officer, employee or representative acted in bad faith, then the Plan shall be reimbursed by such officer, employee or representative for expenses incurred in such defense.Ga. Comp. R. & Regs. R. 120-2-14-.14
O.C.G.A. §§ 33-2-9, 40-9-100.
Original Rule entitled "Carrier's Notice to Applicant" was filed on July 20, 1965.Amended: Rule repealed and a new Rule of the same title adopted. Filed August 15, 1967; effective September 4, 1967.Amended: Rule repealed and a new Rule entitled "Company's Notice to Applicant" adopted. Filed January 13, 1971; effective February 2, 1971.Amended: Filed September 2, 1981; effective September 22, 1981.Amended: Rule repealed and a new Rule entitled "Claims Against Plan; Members and Staff" adopted. Filed October 5, 1984; effective November 1, 1984, as specified by the Agency.Editor's Note: In accordance with Ga. Laws 1967, p. 618; (Ga. Code Ann., Section 3A-124), the content of this Rule is not filed with or published by the Secretary of State; only the name and designation is filed, printed, and distributed. This Regulation is on file in the office of the Comptroller General and is open for public examination and copying. (See Editor's Note, p. 88.03.)Note: "Editor's Note" rescinded. Eff. Oct. 21, 2015.Amended: F. Oct. 1, 2015; eff. Oct. 21, 2015.