514.4 Directors. 1. a. At least two-thirds of the directors of a hospital service corporation, medical service corporation, dental service corporation, or pharmaceutical or optometric service corporationsubject to this chapter shall be at all times subscribers and not more than one-third of thedirectors shall be providers as provided in this section. The board of directors of eachcorporation shall consist of at least nine members. b. A subscriber director is a director of the board of a corporation who is a subscriber and who is not a provider of health care pursuant to section 514B.1, subsection 7, a person whohas material financial or fiduciary interest in the delivery of health care services or a relatedindustry, an employee of an institution which provides health care services, or a spouse or amember of the immediate family of such a person. However, a subscriber director of a dentalservice corporation may be an employee, officer, director, or trustee of a hospital that does notcontract with the dental service corporation. A subscriber director of a hospital or medicalservice corporation shall be a subscriber of the services of that corporation. c. f a hospital that does notcontract with the dental service corporation. A subscriber director of a hospital or medicalservice corporation shall be a subscriber of the services of that corporation. c. A provider director of a corporation subject to this chapter shall be at all times a person who has a material financial interest in or is a fiduciary to or an employee of or is a spouseor member of the immediate family of a provider having a contract with such corporation torender to its subscribers the services of such corporation or who is a hospital trustee. 2. A director may serve on a board of only one corporation at a time subject to this chapter.3. The commissioner of insurance shall adopt rules pursuant to chapter 17A to implement the process of the election of subscriber directors of the board of directors of a corporationto ensure the representation of a broad spectrum of subscriber interest on each board andestablish criteria for the selection of nominees. The rules shall provide for an independentsubscriber nominating committee to serve until the composition of the board of directorsmeets the percentage requirements of this section. ction of nominees. The rules shall provide for an independentsubscriber nominating committee to serve until the composition of the board of directorsmeets the percentage requirements of this section. Once the composition requirementsof this section are met, the nominations for subscriber directors shall be made by thesubscriber directors of the board under procedures the board establishes which shallalso permit nomination by a petition of at least fifty subscribers. The board shall also establish procedures to permit nomination of provider directors by petition of at least fiftyparticipating providers. A member of the board of directors of a corporation subject tothis chapter shall not serve on the independent subscriber nominating committee. Thenominating committee shall consist of subscribers as defined in this section. The rules of thecommissioner of insurance shall also permit nomination of subscriber directors by a petitionof at least fifty subscribers, and nomination of provider directors by a petition of at leastfifty participating providers. These petitions shall be considered only by the independentnominating committee during the duration of the committee. ion of provider directors by a petition of at leastfifty participating providers. These petitions shall be considered only by the independentnominating committee during the duration of the committee. Following the discontinuanceof the committee, the petition process shall be continued and the board of directors of thecorporation shall consider the petitions. The independent subscriber nominating committeeis not subject to chapter 17A. The nominating committee shall not receive per diem orexpenses for the performance of their duties. 4. Population factors, representation of different geographic regions, and the demography of the service area of the corporation subject to this chapter shall be considered when makingnominations for the board of directors of a corporation subject to this chapter. 5. A corporation serving states in addition to Iowa shall be required to implement this section only for directors who are residents of Iowa and elected as board members from Iowa. [C39, §8895.04; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §514.4]83 Acts, ch 27, §12, 15; 84 Acts, ch 1282, §1; 91 Acts, ch 258, §58; 2000 Acts, ch 1023, §23; 2007 Acts, ch 137, §10; 2015 Acts, ch 29, §73 04; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §514.4]83 Acts, ch 27, §12, 15; 84 Acts, ch 1282, §1; 91 Acts, ch 258, §58; 2000 Acts, ch 1023, §23; 2007 Acts, ch 137, §10; 2015 Acts, ch 29, §73 Sat Dec 23 00:44:13 2023 Iowa Code 2024, Section 514.4 (16, 0)
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