ACT NO. 20
Insurance; Charitable Gifts of Life Insurance; Bylaws of Cooperative Insurance Corporations
This act authorizes the gift of life insurance contracts to charitable organizations that are tax exempt under Section 501(c)(3) of the Internal Revenue Code as long as that organization is irrevocably designated as the owner and beneficiary of the contract, both the owner and insured make and sign the joint application, and the insurer has provided a written disclosure to the insured. In addition, in a separate section, this act amends the requirements for cooperative insurance corporations, reducing the required number on the board of directors to five from six and removing the requirement for written approval from the commissioner of the Department of Banking, Insurance, Securities, and Health Care Administration for amendments to the bylaws of such corporation.
Effective Date: July 1, 2003