New Hampshire Code of Administrative Rules
Ins - Commissioner, Insurance Department
Chapter Ins 1400 - AUTOMOBILE INSURANCE
Part Ins 1406 - PLAN OF OPERATION FOR THE NEW HAMPSHIRE AUTOMOBILE REINSURANCE FACILITY
Section Ins 1406.15 - Indemnification

(a) Any person or member made or threatened to be made a party to any action, suit, or proceeding, because such person or member served on the board or on a committee of the facility or was an officer or employee of the facility, shall be indemnified by the facility.

(b) The indemnification shall consist of all judgments, fines, amounts paid in settlement, reasonable costs and expenses, including attorney's fees, and any other liabilities that might be incurred as a result of such action, suit, or proceeding, or threatened action, suit, or proceeding.

(c) A member or person shall not be indemnified by the facility in relation to matters to which the person or member is adjudged in such action, suit, or proceeding to be liable by reason of breach of duty involving gross negligence, bad faith, dishonesty, willful misfeasance, or reckless disregard of the responsibilities in performance of the member's or person's duties or obligations to the facility and with respect to any criminal actions or proceedings.

(d) If a person or member had reasonable cause to believe that their conduct was lawful, such indemnification shall be provided whether or not such person or member is a member or is holding office or is employed at the time of such action, suit, or proceeding.

(e) Indemnification shall not be exclusive of other rights such person or member may have and shall extend to the successors, heirs, executors, or administrators of such person or member.

(f) In the event of settlement or other termination of a matter before final adjudication, indemnification shall be provided only if the board is advised by independent counsel that the person or member to be indemnified did not, in counsel's opinion, commit such a breach of duty.

(g) In each instance in which a question of indemnification arises, entitlement thereto, pursuant to the conditions set forth above, shall be determined by the board which shall also determine the time and manner of payment of such indemnification.

(h) However, a person or member who or which has been wholly successful, on the merits or otherwise, in the defense of a civil or criminal action, suit, or proceeding of the character described above shall be entitled to indemnification as authorized in this section.

(i) Nothing herein shall be deemed to bind a person or member who or which the board has determined not entitled to indemnification or to preclude such person or member from asserting the right to such indemnification by legal proceedings.

(j) Indemnification as is herein provided shall be apportioned among all members, including any named in any such action, suit, or proceeding, pursuant to this rule.