41-3203 — REPRESENTATIVE FORM OF GOVERNMENT


                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 32
                         FRATERNAL BENEFIT SOCIETIES
    41-3203.  REPRESENTATIVE FORM OF GOVERNMENT. A society has a
representative form of government when:
    (1)  It has a supreme governing body constituted in one (1) of the
following ways:
    (a)  Assembly. The supreme governing body is an assembly composed of
    delegates elected directly by the members or at intermediate assemblies or
    conventions of members or their representatives, together with other
    delegates as may be prescribed in the society's laws.  A society may
    provide for election of delegates by mail. The elected delegates shall
    constitute a majority in number and shall not have less than two-thirds
    (2/3) of the votes and not less than the number of votes required to amend
    the  society's laws.  The assembly shall be elected and shall meet at
    least once every  four (4) years and shall elect a board of directors to
    conduct the business of the society between meetings of the assembly.
    Vacancies on the board of directors between elections may be filled in the
    manner prescribed by the society's laws.
    (b)  Direct election. The supreme governing body is a board composed of
    persons elected by the members, either directly or by their
    representatives in intermediate assemblies, and any other persons
    prescribed in the society's laws.  A society may provide for election of
    the board by mail.  Each  term of a board member  may not exceed four (4)
    years.  Vacancies on the board between elections may be filled in the
    manner prescribed by the society's laws.  Those persons elected to the
    board shall constitute a majority in number and not less than the number
    of votes required to amend the society's laws.  A person filling the
    unexpired term of an elected board member shall be considered to be an
    elected member. The board shall meet at least quarterly to conduct the
    business of the society.
    (2)  The officers of the society are elected either by the supreme
governing body or by the board of directors;
    (3)  Only benefit members are eligible for election to the supreme
governing body and the board of directors; and
    (4)  Each voting member shall have one (1) vote; no vote may be cast by
proxy.