HB 1119 — modify provisions regarding directors serving on a farm mutual insurer’s board.

26.413.926.413.10 101st Legislative Session 1119 South Dakota Legislature House Bill 1119 IntroducedENROLLED by:A N A CT ENTITLED An Act to modify provisions regarding directors serving on a farm mutual insurer’s board.

RepresentativeB WalburgE AnIT ActENACTED toBY modifyTHE provisionsLEGISLATURE regardingOF directorsTHE servingSTATE onOF aS farmOUTH mutualD insurer’sAKOTA board.:

B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH DAKOTA :

The articles of incorporation required by § 58-35-7 shall must state:

(1) The name of the corporation, which shall must include the words "farm mutual" and, if a county mutual insurer, the name of the county of its principal place of business;

(5) IfWhether Whetherit the corporation will transact business on a cash premium plan or an assessment plan;

(6) The duration of its the corporation's existence, which may be perpetual;

(7) The number of its the corporation's directors, which shall be not may not be less than five nor more than eleven;fifteen, and the names and addresses of the persons constituting the initial board of directors who shall serve until the first annual meeting of the members, and until their successors are elected and qualified;

fifteen, and the names and addresses of the persons constituting the initial board of directors who shall serve until the first annual meeting of the members, and until their successors are elected and qualified;

Overstrikes58-35-26. indicate deleted language.

26.413.9No 2individual 1119may 58-35-26.serve as a director of a farm mutual insurer unless the individual is a member of the insurer or a member of one or more of the insurer’s affiliates.

No26.413.10 individual2 shall1119 mayFor servethe aspurposes a director of athis farmsection, mutual“affiliate” insurermeans unlessany theentity individualthat isdirectly, aor memberindirectly ofthrough theone insurer or amore memberintermediaries, ofcontrols, oneis controlled by, or moreis ofunder common control with, the insurer’sinsurer affiliates.at issue.

ForHB1119 theENROLLED purposes26.413.10 of3 this1119 section,An “affiliate”Act meansto anymodify entityprovisions thatregarding directly,directors orserving indirectlyon througha onefarm ormutual moreinsurer’s intermediaries,board. controls, is controlled by, or is under common control with, the insurer at issue.

UnderscoresReceived indicateat newthis language.Executive Office I certify that the attached Act originated in this _____ day of _____________, the:

Overstrikesat indicate____________M. deleted language.

House as Bill No.

1119 By Chief Clerk of the House for the Governor The attached Act is hereby approved this ________ day of Speaker of the House ______________, A.D., 2026 Attest:

Governor Chief Clerk of the House STATE OF SOUTH DAKOTA, ss.

Office of the Secretary of State President of the Senate Filed ____________, 2026 Attest:

at _________ o'clock __M.

Secretary of the Senate Secretary of State House Bill No.

1119 By File No.

____ Asst.

Secretary of State Chapter No.

______ HB1119 ENROLLED