§435E-32  Prospective member.  Eachphysician or surgeon solicited to become a participating member in aninterindemnity arrangement shall receive in writing, at least forty-eight hoursprior to the execution by the prospective participating member of the trustagreement, and at least forty-eight hours prior to the payment by theprospective participating member of any consideration in connection with suchinterindemnity arrangements, the following information:

(1)  A copy of the articles of incorporation andbylaws of the cooperative corporation and a copy of the form of trust agreementto be executed by such prospective participating member.

(2)  A disclosure statement regarding theinterindemnity arrangement.  The disclosure statement shall contain on thefirst or cover page a legend in boldface type reading substantially as follows:

"THE INTERINDEMNITY ARRANGEMENTCONTEMPLATED HEREIN PROVIDES THAT PARTICIPATING MEMBERS HAVE UNLIMITED PERSONALLIABILITY FOR ASSESSMENTS WHICH MAY BE LEVIED TO PAY FOR THE PROFESSIONALNEGLIGENCE LIABILITIES COVERED BY THIS ARRANGEMENT.  NO ASSURANCES CAN BE GIVENREGARDING THE AMOUNT OR FREQUENCY OF ASSESSMENTS WHICH MAY BE SO LEVIED, ORTHAT ALL PARTICIPATING MEMBERS WILL MAKE TIMELY PAYMENT OF THEIR ASSESSMENTS TOCOVER THE PROFESSIONAL NEGLIGENCE LIABILITY OF A PARTICIPATING MEMBER."

(3)  The disclosure statement shall further containall of the following information:

(A)  The amount, nature, and terms andconditions of the professional negligence coverage available under theinterindemnity arrangement.

(B)  The amount of the initial contributionrequired of each participating member and a statement of the minimum number ofmembers and aggregate contributions required for the interindemnity arrangementto commence.

(C)  The names, addresses, and professionalexperience of each member of the board of trustees.

(D)  The requirements for admission as aparticipating member.

(E)  A statement of the services to be providedunder the interindemnity arrangement to each participating member.

(F)  A statement regarding the obligation ofeach member to pay assessments and the consequences for failure to do so.

(G)  A statement of the rights and obligationsof a participating member in the event the member dies, retires, becomesdisabled, or terminates participation for any reason, or the interindemnityarrangement terminates for any reason.

(H)  A statement regarding the claimsadministration services to be provided, indicating whether these services willbe delegated to others pursuant to a contractual arrangement.

(I)  A statement of the voting rights of themembers and the circumstances under which participation of the member may beterminated and under which the interindemnity arrangement may be terminated.

(J)  If any statement of estimated or projectedfinancial information for the interindemnity arrangement is issued, a statementof the estimation or projection and a summary of the data and assumptions uponwhich it is based.

(4)  A list with the names and addresses of all thencurrent participating members of the interindemnity arrangement. [L 1977, c182, pt of §1]