The bill amends South Dakota's laws regarding the requirements for the articles of incorporation of farm mutual insurers and the eligibility of individuals to serve as directors on their boards. Specifically, it modifies Section 58-35-8 to clarify the necessary components of the articles of incorporation, which include the corporation's name, business location, purpose, operational plan, duration, number of directors, and details about the incorporators.

Additionally, the bill amends Section 58-35-26 to stipulate that only individuals who are members of the farm mutual insurer or its affiliates may serve as directors. The definition of "affiliate" is also provided, indicating that it encompasses any entity that has a controlling relationship with the insurer. These changes aim to ensure that the governance of farm mutual insurers is conducted by individuals who have a vested interest in the organization.

Statutes affected:
Introduced, 01/23/2026: 58-35-8, 58-35-26
Enrolled, 02/26/2026: 58-35-8, 58-35-26