Haw. Code R. § 16-7-11

Current through April, 2024

Section 16-7-11 - Indemnification

(a) Any person or member made a party to any action, suit, or proceeding because the person or member:

(1) Serves or served on the board of directors or a committee of the plan; or

(2) Is or was an officer or employee of the plan, except for the insurance commissioner and the insurance commissioner's representatives,

shall be indemnified by the plan against all costs (including the amounts of judgments and interest thereon, settlements, fines, or penalties) and expenses incurred in connection with the action, suit, or proceeding; provided such indemnification shall not be provided on any matter in which the person or member shall be finally adjudged in any such action, suit, or proceeding to have committed a breach of duty involving bad faith, dishonesty, wilful misfeasance or reckless disregard of the person's responsibilities. Indemnification shall be provided only if the plan is advised by its counsel that the person or member to be indemnified did not in counsel's opinion commit such a breach of duty.

(b) The indemnification shall be paid for by the members, each contributing in accordance with section 16-8-3.

(c) This section is intended to operate as a supplement and additional safeguard to, and not in place of, the immunity granted by section 435C-8, HRS.

Haw. Code R. § 16-7-11

[Eff 6/22/81] (Auth: HRS § 435C-2) (Imp: HRS §§ 435C-6, 435C-8)