Title XXIV — BUSINESS AND FINANCIAL INSTITUTIONS

378.601. Fraternal benefit society, defined. — Any incorporated society, order or supreme lodge, without capital stock, including one exempted under the provisions of subdivision (1) of subsection 1 of section 378.640* whether incorporated or not, conducted solely for the benefit…

378.602. Lodge system, requirements — children's wages permitted, limitation. — 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 rit…

378.603. Representative form of government, requirements. — A society has a representative form of government when: (1) It has a supreme governing body constituted in one of the following ways: (a) The supreme governing body is an assembly composed of delegates elected directly b…

378.604. Definitions. — As used in this chapter, the following terms shall mean: (1) "Benefit contract", the agreement for provision of benefits authorized by section 378.616, as that agreement is described in subsection 1 of section 378.619; (2) "Benefit member", an adult member…

378.605. Operation, purpose — laws and rules, power to adopt. — 1. A society shall operate for the benefit of members and their beneficiaries by: (1) Providing benefits as specified in section 378.616; and (2) Operating for one or more social, intellectual, educational, charitabl…

378.606. Laws and rules, requirements — membership rights nonassignable. — 1. A society shall specify in its laws or rules: (1) 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…

378.607. Principal office, meetings, location — official publication, annual statement, requirements. — 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 terri…

378.608. Liability, immunity from, when — indemnification, when — insurance, purchase of for officers allowed. — 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…

378.609. Waiver of laws, restriction on, when. — 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 bindi…

378.610. Organization of, how — articles of incorporation, contents — filing — membership requirements. — 1. A domestic society organized on or after January 1, 1993, shall be formed when seven or more citizens of the United States, a majority of whom are citizens of this state, …

378.611. Amendment of laws, procedures — amendments furnished to members. — 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 referend…

378.612. Society may operate nonprofit organizations — may not own funeral home. — 1. A society may create, maintain and operate, or may establish organizations to operate not-for-profit institutions to further the purposes permitted by subdivision (1) of subsection 1 of section …

378.613. Reinsurance agreements, allowed — limitations. — 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 author…

378.614. Merger or consolidation, allowed when — requirements — approval of director required — effects. — 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: (1) A certified copy…

378.615. Conversion to mutual life insurance company, allowed when. — 1. Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of the insurance laws of this state for mutual life insurance c…

378.616. Benefits authorized — rules to specify allowable beneficiaries. — 1. A society may provide the following contractual benefits in any form: (1) Death benefits; (2) Endowment benefits; (3) Annuity benefits; (4) Temporary or permanent disability benefits; (5) Hospital, medi…

378.617. Change of beneficiary, allowed — funeral benefits, payment of, limitation — no beneficiary, effect. — 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 unles…

378.619. Certificate of ownership, issued to owner, when, contents — life benefit contract, minor effects — impairment of class of certificates, effects — filing with director, when — minor, transfer of control of contract to, when. — 1. Every society authorized to do business in…

378.620. Cash surrender value of certificate, computation of. — 1. For certificates issued prior to one year after January 1, 1993, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall comply with the prov…

378.621. Investment of funds. — 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 busi…

378.622. Assets, use of — variable basis contracts, allowed when. — 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 t…

378.623. Application of law — exemption from insurance laws. — 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, except chapters 374 and 375, not only in governmental relations…

378.624. Taxation of societies, exemptions. — 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 t…

378.625. Valuation of certificates, standards — reserves, excess permitted. — 1. Standards of valuation for certificates issued prior to one year after January 1, 1993, shall be those provided by the laws applicable immediately prior to January 1, 1993. 2. The minimum standards o…

378.626. Statement of financial condition, contents, filing — penalty. — 1. Every society transacting business in this state shall annually, on or before the first day of March, unless for good cause shown such time has been extended by the director, file with the director a true…

378.627. Annual renewal required. — Societies which are now authorized to transact business in this state, and all societies hereafter licensed, may continue such business until the first day of April next succeeding January 1, 1993. The authority of such societies, and all socie…

378.628. Examination, director may conduct — expenses. — 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 examination of …

378.629. Foreign society to have license, requirements. — 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…

378.630. Powers of director to order changes, when — may enjoin further business, when, duration — liquidation, effect. — 1. When the director upon investigation finds that a domestic society: (1) Has exceeded its powers; (2) Has failed to comply with any provision of this chapte…

378.631. Foreign society, director may enjoin business, when. — 1. When the director 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 failed to comply with any of the provisio…

378.632. Injunction, who may file. — 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 director. ­­-------- (L. 1992 S.B. 831) Effective 1-01-93

378.633. Agents, licensing of — persons not deemed agents. — 1. Agents of societies shall be licensed in accordance with the provisions of chapter 375 regulating the licensing, revocation, suspension or termination of license of resident and nonresident agents; provided, that no …

378.634. Unfair practices and frauds, subject to law — exception. — Every society authorized to do business in this state shall be subject to the sections of chapter 375 relating to unfair practices and frauds; provided, however, that nothing therein shall be construed as applyin…

378.635. Service of process, director to be agent for. — Every society authorized to do business in this state shall appoint the director to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, as provided in section…

378.638. Fraudulent acts, penalties. — 1. A person who shall knowingly 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 class A m…

378.640. Law not applicable to certain societies, when — specific exemptions. — 1. Nothing contained in this chapter shall be so construed as to affect or apply to grand or subordinate lodges of societies, orders or associations now doing business in this state which provide bene…

378.642. Severability clause. — If any provision of this chapter or the application of such provision to any circumstance is held invalid, the remainder of the chapter, or the application of the provision to other circumstances, shall not be affected thereby. ­­-------- (L. 1992 …

378.645. Review of director's decisions, how. — 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. ­­-------- (L. 1992 S.B. 831 § 378.639) Effe…