Title 41 — INSURANCE

41-3201. Fraternal benefit societies. Any incorporated society, order or supreme lodge, without capital stock, including one exempted under the provisions of section 41-3237(1)(b), Idaho Code, whether incorporated or not, conducted solely for the benefit of its members and their …

41-3202. Lodge system. (1) A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of…

41-3203. Representative form of government. A society has a representative form of government when: (1) It has a supreme governing body constituted in one (1) of the following ways: (a) Assembly. The supreme governing body is an assembly composed of delegates elected directly by …

41-3204. Terms used. Whenever used in this chapter: (1) "Benefit contract" shall mean the agreement for provision of benefits authorized by section 41-3216, Idaho Code, as that agreement is described in section 41-3219(1), Idaho Code. (2) "Benefit member" shall mean an adult memb…

41-3205. Purposes and powers. (1) A society shall operate for the benefit of members and their beneficiaries by: (a) Providing benefits as specified in section 41-3216, Idaho Code; and (b) Operating for one (1) or more social, intellectual, educational, charitable, benevolent, mo…

41-3206. Qualifications for membership. (1) A society shall specify in its laws or rules: (a) Eligibility standards for each and every class of membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership shall be set at not le…

41-3207. Location of office, meetings, communications to members, grievance procedures. (1) The principal office of any domestic society shall be located in this state. The meetings of its supreme governing body may be held in any state, district, province or territory wherein su…

41-3208. No personal liability. (1) The officers and members of the supreme governing body or any subordinate body of a society shall not be personally liable for any benefits provided by a society. (2) Any person may be indemnified and reimbursed by any society for expenses reas…

41-3209. Waiver. The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members shall have the power or authority to waive any of the provisions of the laws of the society. Such provision shall be binding on the society and every memb…

41-3210. Organization. A domestic society organized on or after the effective date of this act shall be formed as follows: (1) Seven (7) or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make,…

41-3211. Amendments to laws. (1) A domestic society may amend its laws in accordance with the provisions thereof by action of its supreme governing body at any regular or special meeting thereof or, if its laws so provide, by referendum. Such referendum may be held in accordance …

41-3212. Institutions. (1) A society may create, maintain and operate, or may establish organizations to operate, not for profit institutions to further the purposes permitted in section 41-3205(1)(b), Idaho Code. Such institutions may furnish services free or at a reasonable cha…

41-3213. Reinsurance. (1) 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 business in this state, …

41-3214. Consolidations and mergers. (1) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the director: (a) A certified copy of the written contract containing in full the terms and conditions …

41-3215. Conversion of fraternal benefit society into a mutual life insurance company. Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the applicable requirements of section 41-2820, Idaho Code (initia…

41-3216. Benefits. (1) A society may provide the following contractual benefits in any form: (a) Death benefits; (b) Endowment benefits; (c) Annuity benefits; (d) Temporary or permanent disability benefits; (e) Hospital, medical or nursing benefits; and (f) Monument or tombstone …

41-3217. Beneficiaries. (1) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficia…

41-3218. Benefits not attachable. 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, appropriated or applied by any legal or equitable process or o…

41-3219. The benefit contract. (1) Every society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided thereby. The certificate, together with any riders or endorsements attached thereto, t…

41-3220. Nonforfeiture benefits, cash surrender values, certificate loans and other options. (1) For certificates issued prior to one (1) year after the effective date of this act, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan o…

41-3221. 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 insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in th…

41-3222. Funds. (1) 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 apportionment on the surrender of any part thereof, except as provide…

41-3223. Taxation. Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal and school tax other than taxes on real estate an…

41-3224. Valuation. (1) Standards of valuation for certificates issued prior to one (1) year after the effective date of this act shall be those provided by the laws applicable immediately prior to the effective date of this act. (2) The minimum standards of valuation for certifi…

41-3225. Reports. Reports shall be filed in accordance with the provisions of this section. (1) Every society transacting business in this state shall annually, on or before the first day of March, unless for cause shown such time has been extended by the director, file with the …

41-3226. License. (1) No fraternal benefit society shall transact business in this state without a license therefor issued by the director. Such a license issued under this code shall continue in force for as long as the society is entitled thereto under this chapter and until su…

41-3227. Examination of societies — No adverse publications. (1) The director, or any person he may appoint, may examine any domestic, foreign or alien society transacting or applying for admission to transact business in this state in the same manner as authorized for examinatio…

41-3228. Foreign or alien society — Admission. No foreign or alien society shall transact business in this state without a license issued by the director. Any such society desiring admission to this state shall comply substantially with the requirements and limitations of this ch…

41-3229. Injunction — Liquidation — Receivership of domestic society. (1) When the director upon investigation finds that a domestic society: (a) Has exceeded its powers; (b) Has failed to comply with any provision of this chapter; (c) Is not fulfilling its contracts in good fait…

41-3230. Suspension, revocation or refusal of license of foreign or alien society. (1) When the director upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (a) Has exceeded its powers; (b) Has failed to comply with…

41-3231. Injunction. No application or petition for injunction against any domestic, foreign or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the attorney general upon request of the director.

41-3232. Licensing of agents. Agents of societies shall be licensed in accordance with the provisions of chapter 10, title 41, Idaho Code. Except, that no such license shall be required as to members of societies which provide benefits in case of death or disability resulting sol…

41-3233. Unfair methods of competition and unfair and deceptive acts and practices. Every society authorized to do business in this state shall be subject to the provisions of chapter 13, title 41, Idaho Code, relating to trade practices and frauds; provided however, that nothing…

41-3234. Service of process. (1) Every society authorized to do business in this state shall appoint in writing the director and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and sh…

41-3235. Fees. (1) The director shall collect in advance from fraternal benefit societies the licenses and fees, in addition to fees connected with the licenses of agents, as otherwise provided by rule. (2) The director shall transmit and report all fees so collected by him as pr…

41-3236. Penalties. (1) A person who shall knowingly or willfully make any false or fraudulent statement or representation in or relating to any application for membership or for the purpose of obtaining money from or a benefit in any society, shall be guilty of a misdemeanor and…

41-3237. Exemption of certain societies. (1) Nothing contained in this chapter shall be so construed as to affect or apply to: (a) Grand or subordinate lodges of societies, orders or associations now doing business in this state which provide benefits exclusively through local or…

41-3238. Review. All decisions and findings of the director made under the provisions of this chapter shall be subject to review by proper proceedings in any court of competent jurisdiction in this state.

41-3239. Other provisions applicable. (1) Except as herein provided, societies shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws of this state, not only in governmental relations with this state, but for every other purpose, and…