Duty of Obedience Sample Clauses

Duty of Obedience. The Director will:

Duty of Obedience. Per their duty of obedience, directors and officers are obligated to follow the statutes and terms of their organization’s agreements. Directors and officers may be held liable if they authorize an act that is beyond the powers established by their company’s charter. ENDORSEMENT—An endorsement is a separately negotiated clause in the insurance contract that is not considered part of the standard insurance policy. Endorsements are added to modify or amend an insurance policy. Many insurers have standard required endorsements that must go on every account and are not considered negotiable. HAMMER CLAUSE—If an insurer believes that a settlement is in the best interests of both parties, and the insured does not approve the recommended course of action, the insurer may invoke a protective clause referred to as a hammer clause. Insurers use a hammer clause to limit liability to the amount that the claim could have been settled for and any defense costs incurred. If a claim ends up costing more than the recommended settlement value, the insurer will not pay additional costs. INSURED PERSON—For D&O and most forms of insurance, an insured person refers to the individuals or entities covered by a specific policy. To qualify as an insured person, directors, officers and organizations must fall under a broad, predefined description. These definitions often include all directors, officers and corporate entities of the named insured (the parent organization). INSURED VS. INSURED EXCLUSION—D&O policies preclude coverage for claims brought by one insured director or officer against another director or officer also covered under the same policy. The purpose of this exclusion is to eliminate coverage for internal disputes among directors and officers and claims involving collusion. INSURING AGREEMENTS—The insuring agreements, sometimes referred to as insuring clauses, of a D&O policy specify the scope of coverage afforded by a policy. Insuring agreements are presented in broad terms and subsequently modified by exclusions, definitions, conditions and endorsements noted in a policy. D&O policies will include separate insuring agreements for any Side A, Side B and Side C entity coverage the organization obtains. Each insuring agreement outlines the promise of the insurer to protect the policyholder (the insured) in accordance with the terms and conditions of the policy.

Duty of Obedience. Ensure that the nonprofit obeys applicable laws and acts in accordance with ethical practices; that the nonprofit adheres to its stated corporate purposes, and that its activities advance its mission.

Duty of Obedience. The Director will: A. Comply with the Organization’s governing documents and ensure that staff and committees also comply; B. Ensure the Organization’s governing documents remain current and accurate; and X. Xxxx external laws and rules that are imposed upon the Organization.

Duty of Obedience. Duty of Co-operation and proper conduct