Title 38a — Title 38a: Insurance

Sec. 38a-595. (Formerly Sec. 38-206). Definitions. Any incorporated society, order or supreme lodge, without capital stock, including one exempted under subdivision (2) of subsection (a) of section 38a-625 whether incorporated or not, conducted solely for the benefit of its membe…

Sec. 38a-596. (Formerly Sec. 38-207). Societies operating on the lodge system. A society having a supreme legislative or governing body and subordinate lodges or branches by whatever name known, into which members are elected, initiated or admitted in accordance with its constitu…

Sec. 38a-597. (Formerly Sec. 38-208). Representative form of government. A society shall be deemed to have a representative form of government when: (a) It provides in its constitution or laws for a supreme legislative or governing body, composed of representatives elected either…

Sec. 38a-598. (Formerly Sec. 38-209). Incorporation. Preliminary and permanent certificates. Constitution and laws. The organization of a society shall be governed as follows: (1) Seven or more citizens of the United States, a majority of whom are residents of this state, who des…

Sec. 38a-599. (Formerly Sec. 38-210). Rights and powers of societies existing on January 1, 1958. Any incorporated society authorized to transact business in this state on January 1, 1958, may exercise all the rights, powers and privileges prescribed in sections 38a-595 to 38a-62…

Sec. 38a-600. (Formerly Sec. 38-211). Unincorporated or voluntary associations prohibited from transacting business. No unincorporated or voluntary association shall be permitted to transact business in this state as a fraternal benefit society. Every voluntary association which …

Sec. 38a-601. (Formerly Sec. 38-212). Foreign and alien societies to be licensed. No foreign or alien society shall transact business in this state without a license issued by the commissioner. Any such society may be licensed to transact business in this state upon filing with t…

Sec. 38a-602. (Formerly Sec. 38-213). Renewal of license. The authority of all licensed societies may be renewed annually, but in all cases shall terminate on the first day of the succeeding May. Any license so issued shall continue in effect until the new license is issued or sp…

Sec. 38a-603. (Formerly Sec. 38-214). Suspension or revocation of license of foreign or alien society. When the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (1) Has exceeded its powers; (2) has f…

Sec. 38a-604. (Formerly Sec. 38-215). Tax exemption. Every society organized or licensed under sections 38a-595 to 38a-626, inclusive, 38a-631 to 38a-640, inclusive, and 38a-800, is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exemp…

Sec. 38a-605. (Formerly Sec. 38-216). Principal office. Meetings of governing body. The principal office of any domestic society shall be located in this state. The meetings of its supreme legislative or governing body may be held in any state, district, province or territory whe…

Sec. 38a-606. (Formerly Sec. 38-218). Amendment of articles of incorporation, constitution or laws. (a) A domestic society may amend its articles of incorporation, constitution or laws in accordance with the provisions thereof by action of its supreme legislative or governing bod…

Sec. 38a-607. (Formerly Sec. 38-219). Constitution and laws may be absolute authority. The constitution and laws of the society may provide that no subordinate body or any of its subordinate officers or members shall have the power or authority to waive any of the provisions of t…

Sec. 38a-608. (Formerly Sec. 38-220). Consolidation or merger. (a) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the commissioner: (1) A certified copy of the written contract containing in …

Sec. 38a-609. (Formerly Sec. 38-221). Benefit membership. A society may admit to benefit membership any person not less than fifteen years of age on his nearest birthday who has furnished evidence of insurability acceptable to the society. Any such member who applies for addition…

Sec. 38a-610. (Formerly Sec. 38-222). Maintenance of institutions for benefit of members. (a) A society may create, maintain and operate charitable, benevolent or educational institutions for the benefit of its members and their families and dependents and for the benefit of chil…

Sec. 38a-611. (Formerly Sec. 38-233). Reinsurance. A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do…

Sec. 38a-612. (Formerly Sec. 38-235). Use of assets. Proportion to be used for expenses. All assets shall be held, invested and disbursed for the use and benefit of the society and no member or beneficiary shall have or acquire individual rights therein or become entitled to any …

Sec. 38a-613. (Formerly Sec. 38-236). Investments. A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurance companies and subject to the limitations thereon. Any foreign or alien society p…

Sec. 38a-614. (Formerly Sec. 38-237). Annual report. Synopsis mailed to members. Valuation of certificates. Reserves. (a) A society shall file reports and publish synopses of annual statements in accordance with the provisions of this subsection. (1) Each domestic society transac…

Sec. 38a-615. (Formerly Sec. 38-237a). Additional filings. Capital and surplus requirements for certain associations. (a) In addition to the annual report required under section 38a-614, the commissioner, when the commissioner deems it necessary, may require any fraternal benefit…

Sec. 38a-616. (Formerly Sec. 38-238). Examination of domestic society by commissioner. (a) The commissioner, or any person he may appoint, shall have the power of visitation and examination into the affairs of any domestic society and he shall make such examination at least once …

Sec. 38a-617. (Formerly Sec. 38-239). Examination of foreign or alien society. The commissioner, or any person whom he may appoint, may examine any foreign or alien society transacting or applying for admission to transact business in this state. He may employ assistants and he, …

Sec. 38a-618. (Formerly Sec. 38-240). Statement affecting status of society prohibited pending answer of society. Pending, during or after an examination or investigation of a society, domestic, foreign or alien, the commissioner shall not make public any financial statement, rep…

Sec. 38a-619. (Formerly Sec. 38-241). Decisions of commissioner subject to Superior Court review. All decisions and findings of the commissioner made under the provisions of sections 38a-595 to 38a-626, inclusive, 38a-631 to 38a-640, inclusive, and 38a-800 shall be subject to rev…

Sec. 38a-620. (Formerly Sec. 38-242). Injunction or quo warranto action against domestic society. When the commissioner upon investigation finds that a domestic society: (a) Has exceeded its powers; (b) has failed to comply with any provision of sections 38a-595 to 38a-626, inclu…

Sec. 38a-621. (Formerly Sec. 38-243). Petition for injunction to be made only by Attorney General. No application or petition for injunction against any domestic, foreign or alien society, or branch thereof, shall be recognized in any court of this state unless made by the Attorn…

Sec. 38a-622. (Formerly Sec. 38-244). Misrepresentations, false statements prohibited. Penalties. No person shall cause or permit to be made, issued or circulated in any form: (a) Any misrepresentation or false or misleading statement concerning the terms, benefits or advantages …

Sec. 38a-623. (Formerly Sec. 38-245). Discrimination, rebates prohibited. Permissible benefits for value-added products or services. (a) For the purposes of this section, “customer” means an applicant, certificate holder, insured, potential insured or potential certificate holder…

Sec. 38a-624. (Formerly Sec. 38-246). Exemption from insurance laws. Except as herein provided, societies shall be governed by sections 38a-595 to 38a-626, inclusive, 38a-631 to 38a-640, inclusive, and 38a-800 and shall be exempt from all other provisions of the insurance laws of…

Sec. 38a-624a. Effect of marriage laws on determination of members or beneficiaries or provision of insurance. The marriage laws of this state shall not be construed to affect the ability of a fraternal benefit society to determine the admission of members as provided in section …

Sec. 38a-625. (Formerly Sec. 38-247). Exempt societies, orders and associations. (a) Nothing contained in sections 38a-595 to 38a-626, inclusive, 38a-631 to 38a-640, inclusive, and 38a-800 shall be so construed as to affect or apply to: (1) Grand or subordinate lodges of societie…

Sec. 38a-626. (Formerly Sec. 38-248). Penalties. Any person who wilfully makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society shall be fined not less than two thousand dollars …

Secs. 38a-627 to 38a-630. Reserved for future use. PART II BENEFITS

Sec. 38a-631. (Formerly Sec. 38-224). Types of benefits authorized. (1) A society authorized to do business in this state may provide for the payment of: (a) Death benefits in any form; (b) endowment benefits; (c) annuity benefits; (d) temporary or permanent disability benefits a…

Sec. 38a-632. (Formerly Sec. 38-224a). Additional benefits from special account. A society may pay benefits, other than insurance benefits, to its members from any special account or fund maintained for such purpose; provided, if such benefits are of such a nature that they could…

Sec. 38a-633. (Formerly Sec. 38-225). Insurance and branches for children. A society may provide for benefits on the lives of children under the minimum age for adult membership but not greater than eighteen years of age at time of application therefor, upon the application of so…

Sec. 38a-634. (Formerly Sec. 38-226). Nonforfeiture benefits, cash surrender values and certificate loans. A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans and such other options as its laws may permit. As to certificates issued on and …

Sec. 38a-635. (Formerly Sec. 38-227). Officers and members not liable for benefits. The officers and members of the supreme, grand or any subordinate body of a society shall not be personally liable for payment of any benefits provided by a society. (1949 Rev., S. 6240; 1957, P.A…

Sec. 38a-636. (Formerly Sec. 38-228). Beneficiaries. Funeral benefits. (a) A member of a fraternal benefit society shall have the right at all times to change the beneficiary or beneficiaries in accordance with the constitution, laws or rules of the society. Every society by its …

Sec. 38a-637. (Formerly Sec. 38-229). Money or other benefits not liable to attachment. No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society shall be liable to attachment, garnishment or other process, or to be seized, taken, appropria…

Sec. 38a-638. (Formerly Sec. 38-230). Benefit certificate. (a) Every society authorized to do business in this state shall issue to each benefit member a certificate specifying the amount of benefits provided thereby. The certificate, together with any riders or endorsements atta…

Sec. 38a-639. (Formerly Sec. 38-231). Certificate provisions. (a) No life benefit certificate may be delivered or issued for delivery in this state unless a copy of the form has been filed with, and approved by, the commissioner. (b) The certificate shall contain in substance the…

Sec. 38a-640. (Formerly Sec. 38-232). Forms of certificates to be filed with the commissioner. Approval. (a) No domestic, foreign or alien society authorized to do business in this state shall issue or deliver in this state any certificate or other evidence of any contract of acc…

Secs. 38a-641 to 38a-644. Reserved for future use.