§435E-32  Prospective member.  Each
physician or surgeon solicited to become a participating member in an
interindemnity arrangement shall receive in writing, at least forty-eight hours
prior to the execution by the prospective participating member of the trust
agreement, and at least forty-eight hours prior to the payment by the
prospective participating member of any consideration in connection with such
interindemnity arrangements, the following information:



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



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



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



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



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



(B)  The amount of the initial contribution
required of each participating member and a statement of the minimum number of
members and aggregate contributions required for the interindemnity arrangement
to commence.



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



(D)  The requirements for admission as a
participating member.



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



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



(G)  A statement of the rights and obligations
of a participating member in the event the member dies, retires, becomes
disabled, or terminates participation for any reason, or the interindemnity
arrangement terminates for any reason.



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



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



(J)  If any statement of estimated or projected
financial information for the interindemnity arrangement is issued, a statement
of the estimation or projection and a summary of the data and assumptions upon
which it is based.



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