§ 22:2057 — Board of directors

Louisiana § 22:2057

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§2057. Board of directors
A. The board of directors of the association shall consist of nine persons serving
terms as established in the plan of operation. The board shall be composed of two consumer
representatives appointed by the commissioner, one person appointed by the president of the
Senate, one person appointed by the speaker of the House of Representatives, all of whom
shall be residents of the state of Louisiana, and five additional persons selected by member
insurers, one of which shall be a representative selected by the membership of the Louisiana
Association of Fire and Casualty Companies (LAFAC), subject to the approval of the
commissioner. Vacancies in the positions for which persons are selected by member insurers
shall be filled until the next regularly scheduled election for a member of the board by a
majority vote of the remaining members, subject to the approval of the commissioner. At
the next regularly scheduled election for a member of the board, the member insurers shall
select a member to serve the remainder of the unexpired term of any member appointed by
the board, subject to the approval of the commissioner. No person shall serve as a member
after his replacement has been either appointed or selected by member insurers and approved
by the commissioner. The commissioner shall transmit to the board his approval or
disapproval of new board members within thirty days after he has been notified of their
selection, and he shall accompany any disapproval of a board member with his written
reasons for such disapproval. One of the two consumer representatives may not be an
officer, director or employee of an insurance company or any person engaged in the business
of insurance.
B. In approving selections to the board, the commissioner shall consider among other
things whether all member insurers are fairly represented.
C. Members of the board may be reimbursed from the assets of the association for
reasonable expenses incurred by them as members of the board of directors.
D. Any member of the board whose relationship to an insurer in receivership
presents a conflict of interest shall be terminated as a board member by the commissioner
and the seat declared vacant as of the date of the entry of the order of receivership.
E. If the commissioner has reasonable cause to believe that a board member failed
to disclose a known conflict of interest with his duties on the board, failed to take appropriate
action based on a known conflict of interest with his duties on the board, or has been indicted
or charged with a felony, or misdemeanor involving moral turpitude, the commissioner may
suspend that board member pending the outcome of an investigation by the commissioner
or the conclusion of any criminal proceedings. If the allegations are substantiated at the
conclusion of an investigation or criminal proceeding, the seat shall be declared vacant.
NOTE: See Acts 1997, No. 468, §§2, 3, for applicability.
NOTE: Former R.S. 22:2057 redesignated as R.S. 22:417 by Acts 2008, No.
415, §1, eff. Jan. 1, 2009; Acts 2010, No. 959, §1, eff. July 6, 2010.

Legislative History

Added by Acts 1970, No. 81, §1; Acts 1989, No. 619, §1; Acts 1990, No. 129, §1; Acts 1993, No. 397, §1, eff. June 2, 1993; Acts 1997, No. 468, §1, eff. June 26, 1997; Redesignated from R.S. 22:1381 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2010, No. 959, §1, eff. July 6, 2010; Acts 2022, No. 185, §1.