Insurance
In plain English: The association may buy and maintain insurance covering a person who is or was a director or officer (or who served another entity at the association's request) against liabilities arising from that role. This coverage is permitted whether or not the association would have had the power to indemnify that person for the same liability under this article. For homeowners, this is the statutory basis for directors-and-officers (D&O) insurance that protects board members and officers.
10-3857. Insurance
A corporation may purchase and maintain insurance on behalf of an individual who is or was a director or officer of the corporation or who, while a director or officer of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee or agent of another foreign or domestic corporation, partnership, joint venture, trust, employee benefit plan or other entity, against liability asserted against or incurred by the individual in that capacity or arising from the individual's status as a director or officer, whether or not the corporation would have power to indemnify or advance expenses to the person against the same liability under this article.