2006 Louisiana Laws - RS 22:1381 — Board of directors

§1381.  Board of directors

A.(1)  The board of directors of the association shall consist of nine persons serving terms as established in the plan of operation.  The board shall be composed of two consumer representatives appointed by the commissioner, one person appointed by the president of the Senate, one person appointed by the speaker of the House of Representatives, all of whom shall be residents of the state of Louisiana, and five additional persons selected by member insurers, one of which shall be a representative selected by the membership of the Louisiana Association of Fire and Casualty Companies (LAFAC), subject to the approval of the commissioner.  Vacancies in the positions for which persons are selected by member insurers shall be filled until the next regularly scheduled election for a member of the board by a majority vote of the remaining members, subject to the approval of the commissioner.  At the next regularly scheduled election for a member of the board, the member insurers shall select a member to serve the remainder of the unexpired term of any member appointed by the board, subject to the approval of the commissioner.  No person shall serve as a member after his replacement has been either appointed or selected by member insurers and approved by the commissioner.  The commissioner shall transmit to the board his approval or disapproval of new board members within thirty days after he has been notified of their selection, and he shall accompany any disapproval of a board member with his written reasons for such disapproval.

(2)  The board of directors of the association is hereby abolished and reestablished.  The terms of the members of the board of directors serving on the effective date of this Subsection shall terminate on the effective date of this Subsection.  The members of the new board of directors shall be selected as provided in this Subsection.

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 may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors.

Added by Acts 1970, No. 81, §1; Acts 1989, No. 619, §1; Acts 1990, No. 129, §1; Acts 1993, No. 397, §1, eff. June 2, 1993; Acts 1997, No. 468, §1, eff. June 26, 1997.

NOTE:  SEE ACTS 1997, NO. 468, §§2, 3, FOR APPLICABILITY.