Title 08, Title 08: Banking and Insurance

§ 4464. Organization The organization of a society shall be governed 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, co…

§ 4465. Corporate powers retained Any incorporated society authorized to transact business in this State on November 22, 1959 may thereafter exercise all the rights, powers, and privileges prescribed in this chapter and in its charter or articles of incorporation as far as consis…

§ 4466. Existing voluntary associations; may incorporate (a) After one year from November 22, 1959, no unincorporated or voluntary association shall be permitted to transact business in this State as a fraternal benefit society. (b) Any domestic voluntary association now authoriz…

§ 4467. Location of office; place of meeting 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 wherein the society has at least five sub…

§ 4468. Consolidations and mergers (a) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. (b) It shall file with the Commissioner of Financial Regulation: (1) a certified copy of the written contract containing in …

§ 4469. Conversion of fraternal benefit society into 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 requirements of sections 3366, 3423-3425, 3701-3711 of this title …

§ 4470. Qualifications for membership (a) A society may admit to benefit membership any person not less than 15 years of age, at his or her nearest birthday, who has furnished evidence of insurability acceptable to the society. A member who applies for additional benefits more th…

§ 4471. Articles of incorporation, constitution, and laws; amendments (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 body at any regular or special m…

§ 4472. Institutions (a) It shall be lawful for a society to 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 children insured by the society. For that purpose…

§ 4473. No personal liability 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. (Added 1959, No. 197, § 13, eff. Nov. 22, 1959.)

§ 4474. Benefits (a) A society authorized to do business in this State may provide for the payment of: (1) death benefits in any form; (2) endowment benefits; (3) annuity benefits; (4) temporary or permanent disability benefits as a result of disease or accident; (5) hospital, me…

§ 4475. Benefits on lives of children (a) A society may provide for benefits on the lives of children under the minimum age for adult membership but not greater than 18 years of age at the time of application for such benefits, upon the application of an adult person who has an i…

§ 4476. Nonforfeiture benefits, cash surrender values, certificate loans, and other options (a) 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 after Nove…

§ 4477. Beneficiaries (a) The member 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 constitution, laws, or rules may limit the scope of beneficiaries and shall p…

§ 4478. 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, trustee, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or ope…

§ 4479. The contract (a) Every society authorized to do business in this State shall issue to each benefit member a certificate specifying the amount of benefits provided under the certificate. The certificate, together with any attached riders or endorsements, the charter or art…

§ 4480. Provisions; standard and prohibited (a) After one year from November 22, 1959, no life benefit certificate shall be delivered or issued for delivery in this State unless a copy of the form shall have been filed with the Commissioner of Financial Regulation. Each filing of…

§ 4481. Accident and health insurance and total and permanent disability insurance certificates; filing and 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 co…

§ 4482. Waiver The constitution and 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 and constitution of the society. The provision shall be bindi…

§ 4483. 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 business in this State or, if …

§ 4484. Annual license Societies that are now authorized to transact business in this State may continue such business until May 1, 1960. The authority of the societies, and all societies hereafter licensed, may thereafter be renewed annually, but shall terminate on the first day…

§ 4485. Foreign or alien society; admission (a) No foreign or alien society may transact business in this State without a license issued by the Commissioner of Financial Regulation. Any such society may be licensed to transact business in this State upon filing with the Commissio…

§ 4486. Injunction; liquidation; receivership of domestic society (a) When the Commissioner of Financial Regulation upon investigation finds that a domestic society: (1) has exceeded its powers; (2) has failed to comply with any provision of this chapter; (3) is not fulfilling it…

§ 4487. Suspension, revocation, or refusal of license of foreign or alien society (a) When the Commissioner of Financial Regulation upon investigation finds that a foreign or alien society transacting or applying to transact business in this State: (1) has exceeded its powers; (2…

§ 4488. Licensing of agents Agents of societies shall be licensed in accordance with the provisions of this section. (1) Insurance agent defined. The term “insurance agent” as used in this section means any authorized or acknowledged agent of a society who acts as such in the sol…

§ 4489. Service of process (a) Every society authorized to do business in this State shall appoint in writing the Secretary of State 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…

§ 4490. Injunction No action for an injunction against any domestic, foreign, or alien society, or branch thereof, shall be recognized in any court of this State unless made by the Attorney General upon request of the Commissioner of Financial Regulation. (Added 1959, No. 197, § …

§ 4491. Review All decisions and findings of the Commissioner of Financial Regulation made under the provisions of this chapter shall be subject to review by appeal to the Supreme Court. (Added 1959, No. 197, § 31, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25; 199…

§ 4492. Funds (a) All assets shall be held, invested, and disbursed for the use and benefit of the society, and a member or beneficiary shall not have or acquire individual rights in such assets or become entitled to any apportionment or the surrender of any part of such assets, …

§ 4493. 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 permitted or seeking to do busin…

§ 4494. Reports and valuations Reports shall be filed and synopses of annual statements shall be published in accordance with the provisions of this section. (1) Every society transacting business in this State shall annually, on or before March 1, unless for cause shown such tim…

§ 4495. Examination of domestic societies The Commissioner of Financial Regulation, or any person he or she may appoint, shall have the power of visitation and examination into the affairs of any domestic society, and he or she shall make the examination at least once in every th…

§ 4496. Examination of foreign and alien societies The Commissioner of Financial Regulation, or any person whom he or she may appoint, may examine any foreign or alien society transacting or applying for admission to transact business in this State. He or she may employ assistant…

§ 4497. No adverse publications Pending, during, or after an examination or investigation of a society, either domestic, foreign, or alien, the Commissioner of Financial Regulation shall make public no financial statement, report, or finding, nor shall he or she permit to become …

§ 4498. Misrepresentation (a) No person shall cause or permit to be made, issued, or circulated in any form: (1) any misrepresentation or false or misleading statement concerning the terms, benefits, or advantages of any fraternal insurance contract now issued or to be issued in …

§ 4499. Discrimination and rebates (a) No society doing business in this State shall make or permit any unfair discrimination between insured members of the same class and equal expectation of life in the premiums charged for certificates of insurance, in the dividends or other b…

§ 4500. 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 and…

§ 4501. Exemptions (a) Except as provided in this section, societies are governed by this chapter and are exempt from all other provisions of the insurance laws of this State, not only in governmental relations with the State, but for every other purpose. No law enacted after the…

§ 4502. Exemption of certain societies (a) Nothing contained in this chapter shall be so construed as to affect or apply to: (1) grand or subordinate lodges of societies, orders, or associations now doing business in this State that provide benefits exclusively through local or s…

§ 4503. Penalties (a) 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 a society, shall be fined not less than $500.00 nor more than $2,000.00 or imprisoned no…