Section 58-5-59 - Election of directors of domestic insurer--Qualifications

58-5-59. Election of directors of domestic insurer--Qualifications.Each director shall be elected from and by the members or stockholders of a domestic insurer. However, directors of a domestic insurer, which is wholly owned by one or more other corporations or other legal entities, need not be stockholders. A majority of the board of directors of a domestic insurer shall be citizens and actual bona fide residents of this state, but this requirement does not apply if the insurer is a member of an insurance holding company system and is controlled by a person who is not a resident of this state or whose principal place of business is outside this state. The provisions of this section do not apply to any insurer if in excess of one thousand persons are entitled to vote in its election of directors and a majority thereof reside outside of this state or if less than one percent of its shares outstanding are owned by residents of this state. Source: SL 1966, ch 111, ch 16, §21 (2); SL 1984, ch 324; SL 1985, ch 386; SL 2001, ch 270, §1.