§ 26.1-14-04 — Board of directors - Articles of incorporation - Bylaws - Insuring powers

1. The company will be governed by a board of directors consisting of eleven members.
The commissioner shall appoint the initial board within thirty days of notification by the
North Dakota board of medicine of its decision for implementation of this chapter from
fifteen nominees proposed by that board. The initial board shall serve for an initial term
of seven months. Thereafter, the directors must be elected by the members of the
company in accordance with the articles of incorporation and bylaws.
2. At least seven members of the board of directors must be licensed physicians and at
least two members of the board must have had insurance underwriting or claims
handling experience.
3. Within thirty days after appointment by the commissioner, the initial board of directors
shall prepare and file articles of incorporation and bylaws in accordance with this
chapter and chapter 26.1-12.
4. Upon filing the articles of incorporation and bylaws with the commissioner, the articles
and bylaws are operative and the commissioner shall issue a certificate of authority
subject only to verification by the commissioner that the required initial surplus of the
company has been paid and all deposits have been completed.
5. The certificate of authority authorizes the company to issue policies of casualty
insurance as follows:
a. Insurance against liability of physicians for injury arising out of the rendering of or
failure to render professional services by the insured.
b. Insurance against the liability of any person for whose act or omissions a
physician is responsible under subdivision a, or with whom the physician is
associated, including partners, employees, employers, associates, consultants, a
professional service corporation whose stock is owned by an insured, or a

professional service limited liability company whose membership interests are
owned by the insured.
c. Insurance against other liabilities for injury by persons employed in, by property
used in, or by activities incidental to, the practice of medicine by the named
insured, when issued as incidental coverage with or supplemental to insurance
specified in subdivision a.