Arizona Laws 20-713. Bylaws of mutual insurer
A. The initial board of directors of a domestic mutual insurer shall adopt original bylaws for the government of the corporation and conduct of its business. The bylaws shall be subject to the approval of the insurer’s members at the next succeeding annual meeting of members, and no bylaw provision shall thereafter be effective that is not so approved. Bylaws shall be revoked or modified only by vote of the insurer’s members at a meeting of which notice was given as provided in the bylaws.
Terms Used In Arizona Laws 20-713
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- department: means the department of insurance and financial institutions. See Arizona Laws 20-101
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
B. The bylaws shall provide that each member of the insurer is entitled to one vote in the election of corporate directors and on all matters coming before membership meetings and that each vote may be exercised in person or by proxy.
C. The insurer shall promptly file with the director of the department of insurance and financial institutions a copy, certified by the insurer’s secretary, of the bylaws and of every modification of or addition to the bylaws. The director shall disapprove any bylaw provision deemed by the director to be unlawful, inadequate, unfair or detrimental to the proper interests and protection of the insurer’s members or any class of the insurer’s members. The insurer shall not, after receiving written notice of such disapproval and during the existence thereof, effectuate any disapproved bylaw provision.