|1.9.2||Procedure for Implementing Request for Indemnification|
A. Except as prohibited by law, the College will indemnify Board members against whom an action, claim, or proceeding is brought or threatened as a result of a Board member's good faith performance of duties on behalf or at the direction of the College, and in all cases in which the action, claim or proceeding is covered in whole or in part by a policy of insurance. This indemnification will be against and is limited to expenses, including attorney's fees, judgments, penalties, fines, and amounts in settlement actually and reasonably incurred in connection with the action, suit, or proceeding.
B. For indemnification to be provided the Board member must have acted in good faith and in a manner that he or she reasonably believed to be in the best interests of the College, and with respect to criminal action or proceeding, the Board member must have had no reasonable cause to believe that his or her conduct was unlawful.
C. Indemnification will not take place for a breach of duty of loyalty to the College, an act or omission not in good faith or that involves intentional misconduct or a knowing violation of the law, a transaction from which the Board member derived an improper personal benefit, an act or omission that is grossly negligent, or for a Board member seeking indemnification under this policy who fails to provide timely notice of any action, claim or proceeding or fails to fully and completely cooperate with the College in defending the action, claim or proceeding.
D. This indemnification will be made only as authorized in a specific case upon application by a Board member and after determination that indemnification is proper in the circumstance and the Board member has met the applicable standards of conduct set forth herein.
The following procedure(s) have been adopted in order to implement the Board of Trustees' policy regarding indemnification and assignment of litigation.
A. In the event an action, claim or proceeding is brought against a Board member for which indemnification may be authorized under this policy, the Board member seeking indemnification shall immediately advise the President of the action, claim or proceeding and cooperate with the College in all facets of the application of this policy and the defense of the matter in question. All relevant documents related to the matter (including but not limited to the summons, complaint or other legal documentation) shall also immediately be forwarded to the President, who shall then proceed to apply this policy to the matter in question.
B. The appropriate authorized College representative(s) will then automatically and immediately refer all relevant documents related to the matter (including but not limited to the summons, complaint or other legal documentation) to the College's insurance carrier.
C. Defense will be provided in accordance with established procedures as outlined in the coverage documents of the College's current insurance carrier.
LCC Board of Trustees
Phone: (517) 483-5252
Additional contact information »