NAC616B.597. Responsibilities of board of trustees; financial condition of association; financial condition of member.

In the performance of their duties, the members of the board of trustees of an association are fiduciaries to the association and are responsible for communicating all information regarding the association to its members, including, without limitation, the financial condition of the association and the loss experience of the members of the association. The board of trustees shall not withhold material information concerning losses or material information concerning the financial condition of the association from the members of the association and shall promptly disclose such information to any member upon request. If the financial condition of a member fails to comply with the financial requirements established by law, the bylaws of the association or the underwriting plan of the association, the association must immediately disclose such fact to the other members.

     (Added to NAC by Comm’r of Insurance, eff. 3-22-96)