Title 26.1 — Insurance

A "benevolent society" is a domestic corporation, association, or society which operates on the voluntary assessment or contribution plan for the sole purpose of providing, through assessments of its members, for the payment of a death benefit to the beneficiary of a deceased mem…

This chapter does not apply to a fraternal benefit society as defined in chapter 26.1-15.1 nor to a benefit society organized within and limited to members of a fraternal benefit society.

A benevolent society is under the jurisdiction of the commissioner and is subject to all the laws and rules applicable to insurance companies transacting business within this state, except as specifically provided.

Any number of persons, not less than five, all of whom are residents of this state, may form a benevolent society by complying with the applicable provisions of this chapter.

Persons proposing to form a benevolent society under this chapter shall subscribe and acknowledge articles of incorporation specifying: 1. The name of the society, which must include the words "benevolent society". 2. The purpose for which the society is to be formed. 3. A full a…

Before the commissioner may issue a certificate of authority to a benevolent society, the commissioner shall ascertain that the deposit required by section 26.1-16-07 has been made. The society shall maintain the deposit until the membership of the society reaches one thousand. T…

Each benevolent society shall adopt bylaws which conform to its articles of incorporation or to this chapter.

The articles of incorporation of a benevolent society may be amended, and its bylaws adopted, amended, or repealed, at any annual meeting or at any special meeting called for that purpose. A two-thirds affirmative vote of the members of the society is required to take any of the …

After a benevolent society has been licensed by the commissioner, the bonding of its officers and agents is discretionary with its board of directors. During the period between the filing of articles of incorporation and the issuing of a certificate of authority, however, the com…

All insurance producers of a benevolent society must be licensed in the same manner as insurance producers for insurance companies generally are licensed.

A benevolent society may provide for the classification of its membership by one or more units based on the age of individual members, or by the adoption of a maximum limit of one group or unit. Before the organization of a new group or unit, the society shall notify the commissi…

Each member of a benevolent society organized under this chapter must be notified of the time and place of the annual meetings of the society by a notice incorporated in the certificate of membership issued by the society. Each member of the society is entitled to one vote and ma…

A certificate of membership is incontestable after one year from its date of issue except for fraud, nonpayment of assessments, or naval or military service in time of war. Death from acute or chronic disease occurring more than one year after the date of issue of a certificate m…

A benevolent society shall maintain and keep two separate funds: 1. An expense fund. 2. A mortuary fund.

The membership fee of the society, which may be not less than one dollar nor more than five dollars, may be used for expenses. The certificate of membership must state the percentage of death assessments, not exceeding ten percent, that may be used for expenses, and moneys receiv…

A benevolent society shall credit to its mortuary fund that part of any postmortem assessment in excess of the amount required to pay the death claim for which the assessment was levied. If the society has more than one unit of membership, the mortuary fund must be kept separatel…

Every benevolent society shall transmit to the commissioner, not later than March first of each year, an annual statement as of the previous December thirty-first. The statement must be on any forms required by the commissioner and must show: 1. All income of the society by sourc…

The commissioner has the same power and authority as to visitation and examination over all benevolent societies subject to this chapter as are given to the commissioner by this title over domestic insurance companies. The society examined shall pay the expenses of any examinatio…

A benevolent society organized or operating under this chapter, by a two-thirds vote of its members present or voting by proxy at any annual meeting or special meeting called for that purpose, may transfer its membership to any other society or organization. Notice of the contemp…

Any officer or agent of a benevolent society violating this chapter is guilty of a class A misdemeanor.