(a) General. The County must indemnify each member of the Board who is or m may become a party to any legal action, including any administrative or investigative proceeding, because of service as a Board member, subject to the conditions in this Section.
(1) The County must indemnify a Board member:
(A) with respect to civil matters, if the member acted in good faith and in a manner that the member reasonably believed to be in the best interest of the Trust Fund; and
(B) with respect to criminal matters, if the member had no reasonable cause to believe that the member’s conduct was unlawful.
(2) If the County indemnifies a Board member under this Section, the County must indemnify the member for any expense when the member incurs the expense, including:
(A) reasonable attorney fees;
(c) Effect of Terminating any legal action. The termination of any legal action does not, by itself, create a presumption that a Board member did not act in good faith and in a manner reasonably believed to be in the best interest of the Trust Fund. The termination of a criminal proceeding does not, by itself, create a presumption that a Board member had reasonable cause to believe that any conduct was unlawful.
(d) Exceptions. The County must not indemnify a Board member if:
(1) the member is found by a court or other tribunal to be liable for gross negligence or willful and wanton misconduct in the performance of a duty to the Trust Fund; or
(2) liability arises from an action that occurred before the date when all Board members accepted the Trust Fund in writing.
(e) Recovery of Payments. If the County Attorney finds that any indemnification payment was made that was outside the scope of the indemnification allowed under this Section, the County Attorney must take appropriate action on behalf of the County to recover that payment.
(f) Insurance Provided. The County must provide insurance for each Board member against any liability asserted against or incurred by the member with respect to service on the Board. Assets of the Trust Fund must not be used to pay any premium. The County may self-insure, wholly or partly, for this purpose. If the County does not provide adequate insurance coverage or indemnification under this Section, a Board member need not pay any amount attributable to liability incurred by serving on the Board and the County must pay any amount due.
(g) Defenses. The County may assert the defenses of governmental immunity, and any other available defense, in any legal action arising out of the actions of the Board.
(1) The County Attorney must determine whether a Board member is eligible for indemnification with respect to any matter and the reasonableness of any fee, expense, or settlement.
(2) Unless the County Attorney approves the settlement, a Board member cannot settle a claim against another Board member using:
(B) funds of a Participating agency;
(C) County-funded agency funds;
(D) funds provided by a self-insurance program of the County; or
(E) funds provided under a policy the County has with an insurance company. (, § 1; , § 1.)
