This text of Iowa § 514.4 (Directors) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
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 corporation
subject to this chapter shall be at all times subscribers and not more than one-third of the
directors shall be providers as provided in this section. The board of directors of each
corporation 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 who
has material financial or fiduciary interest in the delivery of health care services or a related
industry, an employee of an institution which provides health care services, or a spouse or a
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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 corporation
subject to this chapter shall be at all times subscribers and not more than one-third of the
directors shall be providers as provided in this section. The board of directors of each
corporation 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 who
has material financial or fiduciary interest in the delivery of health care services or a related
industry, an employee of an institution which provides health care services, or a spouse or a
member of the immediate family of such a person. However, a subscriber director of a dental
servicecorporationmaybeanemployee, officer, director, ortrusteeofahospitalthatdoesnot
contract with the dental service corporation. A subscriber director of a hospital or medical
service 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 spouse
or member of the immediate family of a provider having a contract with such corporation to
render to its subscribers the services of such corporation or who is a hospital trustee.
2. Adirectormayserveonaboardofonlyonecorporationatatimesubjecttothischapter.
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 corporation
to ensure the representation of a broad spectrum of subscriber interest on each board and
establish criteria for the selection of nominees. The rules shall provide for an independent
subscriber nominating committee to serve until the composition of the board of directors
meets the percentage requirements of this section. Once the composition requirements
of this section are met, the nominations for subscriber directors shall be made by the
subscriber directors of the board under procedures the board establishes which shall
also 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 fifty
participating providers. A member of the board of directors of a corporation subject to
this chapter shall not serve on the independent subscriber nominating committee. The
nominating committee shall consist of subscribers as defined in this section. The rules of the
commissioner of insurance shall also permit nomination of subscriber directors by a petition
of at least fifty subscribers, and nomination of provider directors by a petition of at least
fifty participating providers. These petitions shall be considered only by the independent
nominating committee during the duration of the committee. Following the discontinuance
of the committee, the petition process shall be continued and the board of directors of the
corporation shall consider the petitions. The independent subscriber nominating committee
is not subject to chapter 17A. The nominating committee shall not receive per diem or
expenses for the performance of their duties.
4. Populationfactors,representationofdifferentgeographicregions,andthedemography
of the service area of the corporation subject to this chapter shall be considered when making
nominations 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
sectiononlyfordirectorswhoareresidentsofIowaandelectedasboardmembersfromIowa.