North Dakota Code 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.
Terms Used In North Dakota Code 26.1-14-04
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Property: includes property, real and personal. See North Dakota Code 1-01-49
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.