215 ILCS 5/289.1
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XVII - Fraternal Benefit Societies

 (from Ch. 73, par. 901.1)(Section scheduled to be repealed on January 1, 2027)Sec. 289.1.     Personal liability.(a) The officers and members of the  supreme governing body or any subordinate body of a society shall not be  personally liable for any benefits provided by a society.(b) Any person may be indemnified and reimbursed by any society for  expenses reasonably incurred by, and liabilities imposed upon, such person  in connection with or arising out of any action, suit or proceeding,  whether civil, criminal, administrative or investigative, or threat  thereof, in which the person may be involved by reason of the fact that he  or she is or was a director, officer, employee or agent of the society or  of any firm, corporation or organization which he or she served in any  capacity at the request of the society. A person shall not be so  indemnified or reimbursed (1) in relation to any matter in such action,  suit or proceedings as to which he or she shall finally be adjudged to be  or have been guilty of breach of a duty as a director, officer, employee or  agent of the society; or (2) in relation to any matter in such action, suit  or proceeding, or threat thereof, which has been made the subject of a  compromise settlement; unless in either such case the person acted in good  faith for a purpose the person reasonably believed to be in or not opposed  to the best interests of the society and, in a criminal action or  proceeding, in addition, had no reasonable cause to believe that his or her  conduct was unlawful. The determination whether the conduct of such person  met the standard required in order to justify indemnification and  reimbursement in relation to any matter described in subpoints (1) or (2)  of the preceding sentence may only be made by the supreme governing body or  board of directors by a majority vote of a quorum consisting of persons who  were not parties to such action, suit or proceeding or by a court of  competent jurisdiction. The termination of any action, suit or proceeding  by judgment, order, settlement, conviction or upon a plea of no contest  as to such person shall not in itself create a conclusive presumption that  the person did not meet the standard of conduct required in order to  justify indemnification and reimbursement. The foregoing right of  indemnification and reimbursement shall not be exclusive of other rights to  which such person may be entitled as a matter of law and shall inure to the  benefit of his or her heirs, executors and administrators.(c) A society shall have power to purchase and maintain insurance on  behalf of any person who is or was a director, officer, employee or agent  of the society, or who is or was serving at the request of the society as a  director, officer, employee or agent of any other firm, corporation or  organization against any liability asserted against such person and  incurred by him or her in any such capacity or arising out of his or her  status as such, whether or not the society would have the power to  indemnify the person against such liability under this Section.    (Source: P.A. 84-303.)