§ 9010-a. Insurance for indemnification of directors and officers. 1.\nSubject to the provisions of subdivision two of this section, a\ncorporation shall have power to purchase and maintain insurance:\n (a) To indemnify the corporation for any obligation which it incurs as\na result of the indemnification of directors and officers under the\nprovisions of this article, and\n (b) To indemnify directors and officers in instances in which they may\nbe indemnified by the corporation under the provisions of this article,\nand\n (c) To indemnify directors and officers in instances in which they may\nnot otherwise be indemnified by the corporation under the provisions of\nthis article provided the contract of insurance covering such directors\nand officers provides, in a manner acceptable to
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§ 9010-a. Insurance for indemnification of directors and officers. 1.\nSubject to the provisions of subdivision two of this section, a\ncorporation shall have power to purchase and maintain insurance:\n (a) To indemnify the corporation for any obligation which it incurs as\na result of the indemnification of directors and officers under the\nprovisions of this article, and\n (b) To indemnify directors and officers in instances in which they may\nbe indemnified by the corporation under the provisions of this article,\nand\n (c) To indemnify directors and officers in instances in which they may\nnot otherwise be indemnified by the corporation under the provisions of\nthis article provided the contract of insurance covering such directors\nand officers provides, in a manner acceptable to the superintendent of\nfinancial services, for a retention amount and for co-insurance.\n 2. No insurance under subdivision one of this section may provide for\nany payment, other than cost of defense, to or on behalf of any director\nor officer:\n (a) If a judgment or other final adjudication adverse to the insured\ndirector or officer establishes that his acts of active and deliberate\ndishonesty were material to the cause of action so adjudicated, or that\nhe personally gained in fact a financial profit or other advantage to\nwhich he was not legally entitled, or\n (b) In relation to any risk the insurance of which is prohibited under\nthe insurance law of this state.\n 3. Insurance under any or all paragraphs of subdivision one of this\nsection may be included in a single contract or supplement thereto.\nRetrospective rated contracts are prohibited.\n 4. The corporation shall, within the time and to the persons provided\nin subdivision three of section nine thousand nine of this article, mail\na statement in respect of any insurance it has purchased or renewed\nunder this section, specifying the insurance carrier, date of the\ncontract, cost of the insurance, corporate positions insured, and a\nstatement explaining all sums, not previously reported in a statement to\nshareholders, paid under any indemnification insurance contract.\n 5. This section is the public policy of this state to spread the risk\nof corporate management, notwithstanding any other general or special\nlaw of this state or of any other jurisdiction including the federal\ngovernment.\n