Senate Study Bill 1185 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE
ON COMMERCE BILL BY
CHAIRPERSON BROWN)
A BILL FOR
1 An Act relating to the election of directors for county and
2 state mutual insurance associations, and including effective
3 date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 Section 1. Section 518.7, Code 2023, is amended to read as
2 follows:
3 518.7 Officers and directors —— election.
4 Officers or directors shall be elected in the manner and for
5 the length of time prescribed in the articles of incorporation.
6 The same person shall not simultaneously hold the offices of
7 president and secretary. A director shall be a member of the
8 association unless otherwise approved by the commissioner.
9 Sec. 2. Section 518A.6, Code 2023, is amended to read as
10 follows:
11 518A.6 Officers —— election.
12 Officers or directors shall be elected in the manner and for
13 the length of time prescribed in the articles of incorporation
14 or bylaws. The same person shall not simultaneously hold
15 the offices of president and secretary. A director shall be
16 a member of the association unless otherwise approved by the
17 commissioner.
18 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
19 importance, takes effect upon enactment.
20 EXPLANATION
21 The inclusion of this explanation does not constitute agreement with
22 the explanation’s substance by the members of the general assembly.
23 This bill relates to the election of directors for county and
24 state mutual insurance associations.
25 Under current law, to be elected as a director of either a
26 county or state mutual insurance association, an individual
27 must be a member of the county or the state mutual insurance
28 association.
29 The bill allows the commissioner of insurance to approve the
30 election of an individual as a director of either a county or
31 state mutual insurance association if the individual is not a
32 member of the county or the state mutual insurance association.
33 The bill is effective upon enactment.
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Statutes affected:
Introduced: 518.7, 518A.6