A credit union shall, unless otherwise specified by the director, purchase and maintain liability and fidelity insurance coverage on behalf of a person who is or was a board member, committee member, executive officer, employee or agent of the credit union or who is or was serving at the request of the credit union as a director, committee member, executive officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against that person and incurred by that person in any such capacity or arising out of that person's status whether or not the credit union would have the power to indemnify that person against such liability; provided, a credit union shall not provide for the indemnification of personnel who are adjudged guilty of or liable for willful misconduct, gross neglect of duty or criminal acts.

History: Laws 1987, ch. 311, § 51; 1991, ch. 51, § 15; 2003, ch. 28, § 10.

Repeals. — Laws 1997, ch. 195, § 42 repealed Laws 1987, ch. 311, § 68, which had provided for the repeal of this section on July 1, 1997.

The 2003 amendment, effective June 20, 2003, in the section heading, inserted "and fidelity" following "Liability" and inserted "and employees" at the end; in the first sentence in the section text, substituted "shall, unless otherwise specified by the director" for "may" near the beginning, inserted "liability and fidelity" following "purchase and maintain" near the beginning and inserted "coverage" following "insurance" near the middle.

The 1991 amendment, effective July 1, 1991, inserted "committee member, executive" twice near the beginning of the section.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Who is an "Executive Officer" of insured within meaning of liability insurance policy, 1 A.L.R.5th 132.

Validity, construction, and effect of "regulatory exclusion" in directors' and officers' liability insurance policy, 21 A.L.R.5th 292.