§435E-26  Involuntary termination of a
member.  The board of trustees shall have the right to terminate the
membership of a participating member where the board of trustees determines
that such termination is in the best interests of the interindemnity arrangement
even though such person has complied with all of the provisions of the trust
agreement.  Such a termination may be effected only if at least two-thirds of
the members of the board of trustees indicate in writing their decision so to
terminate.  If the board of trustees proposes to terminate a member, the member
shall have the right to call a special meeting of all participating members for
the purpose of voting on whether or not the member shall be so terminated.  The
member shall not be terminated if at least two-thirds of the participating
members present indicate that the member should not be terminated.  In the
event a member is terminated, the person may elect either:



(1)  To request the return of his or her initial
contribution, in which case the same shall be repaid and the indemnity coverage
shall thereupon terminate as to all claims then pending against such person and
in respect to all occurrences prior to the date of such termination of
membership.  However, in the event the interindemnity arrangement is then
providing legal defense services to such person, the interindemnity arrangement
shall continue to provide those services for a period of thirty days to enable
such person to assume his or her own defense; or



(2)  To release all rights to the return of the
initial contribution, in which case the indemnity coverage shall continue for
the benefit of the member in respect of occurrences during the time the person
was a participating member and the person shall have no responsibility for assessments
levied following such termination. [L 1977, c 182, pt of §1]