The bill amends provisions related to the articles of incorporation and director eligibility for farm mutual insurers in South Dakota. It specifies that the articles must include the corporation's name, which must contain "farm mutual" and, if applicable, the name of the county for county mutual insurers. Additionally, it clarifies that the articles should state whether the corporation will operate on a cash premium or assessment plan, the duration of the corporation's existence, and the number of directors, which may not be less than five nor more than fifteen. The initial board of directors' names and addresses must also be included, along with the incorporators' details and the value of their property to be insured.

Furthermore, the bill stipulates that an individual may not serve as a director of a farm mutual insurer unless they are a member of the insurer or one of its affiliates. The definition of "affiliate" is provided, indicating that it includes any entity that controls, is controlled by, or is under common control with the insurer. These changes aim to enhance the governance structure and ensure that directors have a vested interest in the insurer's operations.

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