Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 304-S.F.No. 2569 
                  An act relating to insurance; authorizing insurance 
                  coverage for vicarious liability for punitive and 
                  exemplary damages; regulating the terms of certain 
                  fraternal benefit society board members; amending 
                  Minnesota Statutes 1998, sections 60A.06, by adding a 
                  subdivision; and 64B.03.  
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 60A.06, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [VICARIOUS LIABILITY; PUNITIVE DAMAGES.] Any 
        insurance corporation or association may insure against 
        vicarious liability for punitive and exemplary damages within 
        any of the kinds of business pertaining to the issuance of 
        liability insurance that the insurance corporation or 
        association is authorized to transact under subdivision 1 or 2. 
           Sec. 2.  Minnesota Statutes 1998, section 64B.03, is 
        amended to read: 
           64B.03 [REPRESENTATIVE FORM OF GOVERNMENT.] 
           (a) A society has a representative form of government when 
        it has a supreme governing body constituted in one of the 
        following ways: 
           (1) The supreme governing body is an assembly composed of 
        delegates elected directly by the members or at intermediate 
        assemblies or conventions of members or their representatives, 
        together with other delegates as may be prescribed in the 
        society's laws.  A society may provide for election of delegates 
        by mail.  The elected delegates shall constitute a majority in 
        number and shall not have less than two-thirds of the votes and 
        not less than the number of votes required to amend the 
        society's laws.  The assembly shall be elected and shall meet at 
        least once every four years and shall elect a board of directors 
        to conduct the business of the society between meetings of the 
        assembly.  Vacancies on the board of directors between elections 
        may be filled in the manner prescribed by the society's laws. 
           (2) The supreme governing body is a board composed of 
        persons elected by the members, either directly or by their 
        representatives in intermediate assemblies, and any other 
        persons prescribed in the society's laws.  A society may provide 
        for election of the board by mail.  Each term of a board member 
        may not exceed four years, except that the commissioner has the 
        discretion to approve completion of a term of office exceeding 
        four years where the board member completing the term was 
        elected pursuant to clause (1).  Vacancies on the board between 
        elections may be filled in the manner prescribed by the 
        society's laws.  Those persons elected to the board shall 
        constitute a majority in number and not less than the number of 
        votes required to amend the society's laws.  A person filling 
        the unexpired term of an elected board member shall be 
        considered to be an elected member.  The board shall meet at 
        least quarterly to conduct the business of the society. 
           (b) A society has a representative form of government when 
        the officers of the society are elected either by the supreme 
        governing body or by the board of directors. 
           (c) A society has a representative form of government when 
        only benefit members are eligible for election to the supreme 
        governing body and the board of directors. 
           (d) A society has a representative form of government when 
        each voting member shall have one vote and no vote may be cast 
        by proxy. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective the day following final 
        enactment. 
           Presented to the governor March 28, 2000 
           Signed by the governor March 31, 2000, 2:44 p.m.