514.23 - MUTUALIZATION PLAN.

        514.23  MUTUALIZATION PLAN.         1.  A corporation organized and governed by this chapter may      become a mutual insurer under a plan which is approved by the      commissioner of insurance.  The plan shall state whether the insurer      will be organized as a for-profit corporation pursuant to chapter 490      or 491 or a nonprofit corporation pursuant to chapter 504.  Upon      consummation of the plan, the corporation shall fully comply with the      requirements of the law that apply to a mutual insurance company.  If      the insurer is to be organized under chapter 504, then at least      seventy-five percent of the initial board of directors of the mutual      insurer so formed shall be policyholders who are also nonproviders of      health care.  All directors comprising this initial board of      directors shall be selected by an independent committee appointed by      the state commissioner of insurance.  This independent committee      shall consist of seven to eleven persons who are current      policyholders, who are nonproviders of health care, and who are not      directors of a corporation subject to this chapter.  For purposes of      this subsection, a "nonprovider of health care" is an individual      who is not any of the following:         a.  A "provider" as defined in section 514B.1, subsection 7.         b.  A person who has material financial or fiduciary interest      in the delivery of health care services or a related industry.         c.  An employee of an institution which provides health care      services.         d.  A spouse or a member of the immediate family of a person      described in paragraphs "a" through "c".         2.  A corporation organized and governed by this chapter which      becomes a mutual insurer under this section shall continue as a      mutual insurer to be governed by the provisions of section 514.7 and      shall also be governed by section 509.3, subsection 1, paragraph      "f".  
         Section History: Recent Form
         85 Acts, ch 239, § 4; 86 Acts, ch 1180, § 6; 90 Acts, ch 1205, §      36; 2004 Acts, ch 1049, §191; 2004 Acts, ch 1175, §393         Referred to in § 504.1108, 514E.1