US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2830.  BY-LAWS OF MUTUAL. (1) A domestic mutual insurer shall have
by-laws for the government of its affairs. The insurer's initial board of
directors shall adopt original by-laws, subject to the approval of the
insurer's members at the next meeting of members.
    (2)  The by-laws shall contain provisions, consistent with this code,
relating to:
    (a)  The voting rights of members;
    (b)  Election of directors, and the number, qualifications, terms of
office and powers of directors;
    (c)  Annual and special meetings of members;
    (d)  The number, designation, election, terms and powers and duties of the
respective corporate officers;
    (e)  Deposit, custody, disbursement and accounting for corporate funds;
    (f)  Fidelity bonds covering such officers and employees of the insurer
handling its funds, to be issued by corporate surety and to be in such amount
as may be reasonable; and
    (g)  Such other matters as may be customary, necessary, or convenient for
the management or regulation of corporate affairs.
    (3)  The insurer shall promptly file with the director a copy, certified
by the insurer's secretary, of its by-laws and of every modification thereof
or addition thereto. The director shall disapprove any by-law provision deemed
by him, after a hearing held thereon, to be unlawful, unreasonable,
inadequate, unfair or detrimental to the proper interests or protection of the
insurer's members or any class thereof. The insurer shall not, after receiving
written notice of such disapproval and during the existence thereof,
effectuate any by-law provision so disapproved.