STATE STATUTES & CODES
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UTAH STATUTES AND CODES
31A-28-107 - Board of directors.
31A-28-107. Board of directors.
(1) (a) The board of directors of the association shall consist of:
(i) at least five but not more than nine member insurers who:
(A) subject to Subsection (1)(e), serve terms as established in the plan of operation; and
(B) are selected by member insurers, subject to the approval of the commissioner; and
(ii) two public representatives appointed by the commissioner.
(b) (i) The commissioner shall make the appointment of a public representative coincidewith the association's annual meeting at which the association's board of directors is elected.
(ii) A public representative may not be:
(A) an officer, director, or employee of an insurer; or
(B) a person engaged in the business of insurance.
(iii) Subject to Subsection (1)(e), a public representative shall serve a term of three years.
(c) When a vacancy occurs in the membership of the board of directors for any reason:
(i) if the vacancy is of a member insurer, a replacement may be elected for the unexpiredterm by a majority vote of the remaining board members, subject to the approval of thecommissioner; and
(ii) if the vacancy is of a public representative, the commissioner shall appoint areplacement for the unexpired term.
(d) In approving a selection or in appointing a member to the board of directors, thecommissioner shall consider, among other things, whether all member insurers are fairlyrepresented.
(e) Notwithstanding Subsections (1)(a) and (b), the commissioner shall, at the time ofelection, reelection, appointment, or reappointment adjust the length of terms to ensure that theterms of board members are staggered so that approximately half of the board of directors isselected during any two-year period.
(2) (a) A member of the board of directors may be reimbursed from the assets of theassociation for expenses incurred by the member as a member of the board of directors.
(b) Except as provided in Subsection (2)(a), a member of the board of directors may notbe compensated by the association for the member's services.
(1) (a) The board of directors of the association shall consist of:
(i) at least five but not more than nine member insurers who:
(A) subject to Subsection (1)(e), serve terms as established in the plan of operation; and
(B) are selected by member insurers, subject to the approval of the commissioner; and
(ii) two public representatives appointed by the commissioner.
(b) (i) The commissioner shall make the appointment of a public representative coincidewith the association's annual meeting at which the association's board of directors is elected.
(ii) A public representative may not be:
(A) an officer, director, or employee of an insurer; or
(B) a person engaged in the business of insurance.
(iii) Subject to Subsection (1)(e), a public representative shall serve a term of three years.
(c) When a vacancy occurs in the membership of the board of directors for any reason:
(i) if the vacancy is of a member insurer, a replacement may be elected for the unexpiredterm by a majority vote of the remaining board members, subject to the approval of thecommissioner; and
(ii) if the vacancy is of a public representative, the commissioner shall appoint areplacement for the unexpired term.
(d) In approving a selection or in appointing a member to the board of directors, thecommissioner shall consider, among other things, whether all member insurers are fairlyrepresented.
(e) Notwithstanding Subsections (1)(a) and (b), the commissioner shall, at the time ofelection, reelection, appointment, or reappointment adjust the length of terms to ensure that theterms of board members are staggered so that approximately half of the board of directors isselected during any two-year period.
(2) (a) A member of the board of directors may be reimbursed from the assets of theassociation for expenses incurred by the member as a member of the board of directors.
(b) Except as provided in Subsection (2)(a), a member of the board of directors may notbe compensated by the association for the member's services.
Amended by Chapter 292, 2010 General Session
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