Section 13-02-14-05 - Documentation1. In purchasing life insurance for key person purposes, the bank's board of directors must adequately document in its minutes the basis for its insurable interest and the basis for the amount of insurance. The bank's board of directors must also document in its minutes the basis for determining how that employee or director meets the definition of a key person. 2. In purchasing life insurance in connection with compensation and benefit plans for employees, officers, and directors, the bank's board of directors must approve and document such plans or programs including the reasonableness of the plans or programs. N.D. Admin Code 13-02-14-05
Effective April 1, 1992; amended effective April 1, 2003.General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-03-02