(a) A farm mutual insurance company’s bylaws may provide for:
(1) the organization of local chapters to transact the company’s business; and
(2) the creation of districts in and for which directors may be elected.
(b) The bylaws may also provide that delegates from the company’s local chapters are the company’s supreme governing body.

(c) The company may consider the hazards against which the company insures and the company’s classes of risks and territory of operation in organizing the local chapters and creating the districts.