§435E-26  Involuntary termination of amember.  The board of trustees shall have the right to terminate themembership of a participating member where the board of trustees determinesthat such termination is in the best interests of the interindemnity arrangementeven though such person has complied with all of the provisions of the trustagreement.  Such a termination may be effected only if at least two-thirds ofthe members of the board of trustees indicate in writing their decision so toterminate.  If the board of trustees proposes to terminate a member, the membershall have the right to call a special meeting of all participating members forthe purpose of voting on whether or not the member shall be so terminated.  Themember shall not be terminated if at least two-thirds of the participatingmembers present indicate that the member should not be terminated.  In theevent a member is terminated, the person may elect either:

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

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