§ 27-34-7. Board of directors.
(a) The board of directors of the association shall consist of not less than five (5)
nor more than eleven (11) persons serving terms as established in the plan of operation.
The members of the board shall be selected by member insurers subject to the approval
of the commissioner. Vacancies on the board shall be filled for the remaining period
of the term by a majority vote of the remaining insurer members subject to the approval
of the commissioner. Two (2) persons may be public representatives, and may be appointed
by the commissioner to the board of directors. Vacancies of positions held by public
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§ 27-34-7. Board of directors.
(a) The board of directors of the association shall consist of not less than five (5)
nor more than eleven (11) persons serving terms as established in the plan of operation.
The members of the board shall be selected by member insurers subject to the approval
of the commissioner. Vacancies on the board shall be filled for the remaining period
of the term by a majority vote of the remaining insurer members subject to the approval
of the commissioner. Two (2) persons may be public representatives, and may be appointed
by the commissioner to the board of directors. Vacancies of positions held by public
representatives shall be filled by the commissioner. A public representative may not
be an officer, director, or employee of an insurance company or any person engaged
in the business of insurance. For the purposes of this section, the term "director�
shall mean an individual serving on behalf of an insurer member of the board of directors
or a public representative on the board of directors.
(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 of directors may be reimbursed from the assets of the association
for expenses incurred by them as members of the board of directors.
(d) Any board member who is an insurer in receivership shall be terminated as a board
member, effective as of the date of the entry of the order of receivership. Any resulting
vacancies on the board shall be filled for the remaining period of the term in accordance
with the provisions of subsection (a).
(e) In the event that a director shall, because of illness, nonattendance at meetings,
or any other reason, be deemed unable to satisfactorily perform the designated functions
as a director by missing three (3) consecutive board meetings, the board of directors
may declare the office vacant and the member or director shall be replaced in accordance
with the provisions of subsection (a).
(f) If the commissioner has reasonable cause to believe that a director failed to disclose
a known conflict of interest with his or her duties on the board; failed to take appropriate
action based on a known conflict or interest with his or her duties on the board;
or has been indicted or charged with a felony, or misdemeanor involving moral turpitude,
the commissioner may suspend that director pending the outcome of an investigation
or hearing by the commissioner or the conclusion of any criminal proceedings. A company
elected to the board may replace a suspended director prior to the completion of an
investigation, hearing, or criminal proceeding. In the event that the allegations
are substantiated at the conclusion of an investigation, hearing, or criminal proceeding,
the office shall be declared vacant and the member or director shall be replaced in
accordance with the provisions of subsection (a).