Title 26.1 — Insurance

Whenever used in this chapter: 1. "Benefit contract" means the agreement for provision of benefits authorized by section 26.1-15.1-16, as that agreement is described in section 26.1-15.1-19. 2. "Benefit member" means an adult member designated by the laws or rules of the society …

Any incorporated society, order, or supreme lodge without capital stock, including one exempted under subdivision b of subsection 1 of section 26.1-15.1-37 whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, ope…

1. A society operates on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated, or admitted under its laws, rules, and ritual. Subordinate lodges shall hold regular or stated meetings at least once each month in furth…

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 by the members or at intermediate assemblies or conventions of …

1. A society shall operate for the benefit of members and their beneficiaries by: a. Providing benefits as specified in section 26.1-15.1-16. b. Operating for one or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purposes…

1. A society shall specify in its laws or rules: a. Eligibility standards for each class of membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership must be set at not less than age fifteen and not greater than age twenty-o…

1. The officers and members of the supreme governing body or any subordinate body of a society are not personally liable for any benefits provided by the society. 2. Any society may indemnify and reimburse any person for expenses reasonably incurred by, and liabilities imposed up…

The laws of the society may provide that no subordinate body nor any of its subordinate officers or members has the power or authority to waive any of the provisions of the laws of the society. The provision is binding on the society and every member and beneficiary of a member.

A domestic society organized after December 31, 1987, must be formed as follows: 1. Seven 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, sign, and acknowledge before some officer comp…

1. A domestic society may amend its laws by action of its supreme governing body at any regular or special meeting or, if its laws so provide, by referendum. A referendum may be held in accordance with the provisions of its laws by the vote of the voting members of the society, b…

1. A society may create, maintain, and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by section 26.1-15.1-05. The institutions may furnish services free or at a reasonable charge. Any property owned, held, or lea…

1. A domestic society may by 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 reinsurance and authorized to do business in this state, or if not so authorized, one whi…

1. A domestic society may consolidate or merge with any other society by complying with this section. It shall file with the commissioner: a. A certified copy of the contract containing in full the terms and conditions of the consolidation or merger. b. A sworn statement by the p…

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. f. Monument or tombstone benefits to the memory of dec…

1. The owner of a benefit contract has the right 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 beneficiary designation be irrevocable. A society may,…

All money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any society is exempt from liability for debts of the person to or on account of whom the items are paid, provided, or rendered, and are not subject to seizure upon execution or other process…

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. The certificate, together with any riders or endorsements attached thereto, the laws of the society, the application …

A society may invest its funds only in investments authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign society permitted or seeking to do business in this state which invests its funds in accordanc…

1. All assets must be held, invested, and disbursed for the use and benefit of the society and no member or beneficiary has or acquires individual rights therein or becomes entitled to any apportionment on the surrender of any part thereof except as provided in the benefit contra…

Societies are governed by this chapter and are exempt from all other provisions of the insurance laws of this state, except as expressly designated therein or as specifically made applicable by this chapter.

Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds are exempt from all and every state, county, district, municipal, and school tax, other than taxes on real estate and office equipment.

1. Standards of valuation for certificates issued before January 1, 1989, are those provided by the laws applicable immediately before January 1, 1988. 2. The minimum standards of valuation for certificates issued after December 31, 1988, are based on the following tables: a. For…

Reports must be filed in accordance with this section. 1. Every society transacting business in this state shall annually on or before the first day of March file with the commissioner a true statement of its financial condition, transactions, and affairs for the preceding calend…

The authority of every society annually terminates on April thirtieth and may be renewed. A license continues in full force and effect until the new license is issued or specifically refused. For each license or renewal the society shall before April first pay the commissioner th…

1. The commissioner 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 domestic, foreign, or alien insurers. Requirements of notice and an opportunity to …

No foreign society may transact business in this state without a license issued by the commissioner. Any foreign society desiring admission to this state shall comply with the requirements and limitations of this chapter applicable to domestic societies. Any foreign society may b…

1. The commissioner shall notify the society of the deficiency or deficiencies stating in writing the reasons for the commissioner's dissatisfaction and requiring that the deficiency or deficiencies be corrected, if the commissioner upon investigation finds that a domestic societ…

1. If the commissioner upon investigation finds that a foreign society transacting or applying to transact business in this state has committed any of the acts set forth in subdivision a, b, c, or e of subsection 1 of section 26.1-15.1-30, the commissioner shall notify the societ…

No application or petition for injunction against any domestic, foreign, or alien society, or lodge thereof, may be recognized in any court of this state unless made by the attorney general upon request of the commissioner.

Insurance producers of societies must be licensed under chapter 26.1-26. 26.1-15.1-34. Unfair methods of competition and unfair and deceptive acts and practices. Every society authorized to do business in this state is subject to the provisions of chapter 26.1-04 relating to unfa…

1. Every society authorized to do business in this state shall appoint in writing the commissioner and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it may be served and agrees that any lawful process …

1. Any person who willfully 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 is guilty of a class A misdemeanor. 2. Any person who willfully makes a false or fraudulent sta…

1. Except as otherwise provided, this chapter does not 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 subordinate lodges. b. Orders, societies, or associ…