§ 26.1-05-22 — Liabilities of officers and directors of domestic company

Any officer or director of a domestic insurance company who makes or authorizes an
investment or loan in violation of section 26.1-05-19 or 26.1-05-20 is liable personally to the
stockholders of a stock insurance company, or to the policyholders of a mutual insurance
company, for any loss occasioned thereby. If a company is under liability for losses equal to its
net assets and the president or directors, knowing of the liability, make or assent to further
insurance, they are liable personally for any loss under the insurance. If the directors allow to be
insured on a single risk a larger sum than that permitted under section 26.1-03-01, they are
liable for any loss thereon above the amount the company might insure lawfully, unless the
excess is reinsured as required by that section.