Section Ins 1703.14 - Indemnification(a) The association shall pay on behalf of any person made a party to any action, suit, or proceeding because the person is a member of the board or of a committee of the association, or because the person is an officer or employee of the association, all costs, including the amount of any judgment, including interest, settlement, fine or penalty, or expense incurred in connection with any such action, suit or proceeding including defense cost. However, such payment shall not be provided on any matter in which the person or member shall be finally adjudged to have committed a breach of duty involving bad faith, dishonesty, willful misfeasance or reckless disregard for the responsibilities of the person's office. In the event of settlement of a matter before final adjudication, payment shall be provided only upon the determination by the association that no such breach was committed.(b) The costs and expenses of such indemnification shall be prorated and paid for by the members, each contributing in accordance with the methods of assessing members described in Ins 1703.07.N.H. Admin. Code § Ins 1703.14
#7112, eff 10-29-99; ss by #7409, eff 12-1-00, EXPIRED: 12-1-08
New. #9373, eff 1-30-09