KRS 304.29-081: Personal liability.

(1) 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.

(2) Any person may be indemnified and reimbursed by any society for expenses

reasonably incurred by, and liabilities imposed upon, the 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 t hat 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

indemnified or reimbursed in relation to any matter in such action, suit, or

proceeding 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 nor in

relation to any matter in such action, suit, or pr oceeding, or threat thereof, which

has been made the subject of a compromise settlement, unless in either 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, i n 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 the person met the

standard required in order to justify indemnification and reimbursement in relation

to any matter described in 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 the 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 the

person shall not 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 the person may be entitled as a matter of law and shall inure to

the benefit of his or her heirs, executors, and administrators.

(3) A society may 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 the 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 h ave the power to indemnify the person

against such liability under this section.