Missouri Statute | Act | Code |Business And Financial Institutions| US Code - US Statute

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 of its members and their beneficiaries
and not for profit, operated on a lodge system with ritualistic form of
work, having a representative form of government, and which provides
benefits in accordance with this chapter, is hereby declared to be a
fraternal benefit society. (L. 1992 S.B. 831)

Effective 1-1-93

*Section "378.637" appears in original rolls.

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 the society
to hold regular meetings periodically in furtherance of the purposes of
the society.

2. A society may, at its option, organize and operate lodges for children
under the minimum age for adult membership. Membership and initiation in
local lodges shall not be required of such children, nor shall they have
a voice or vote in the management of the society. (L. 1992 S.B. 831)

Effective 1-1-93

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 members or their representatives, together with other
delegates as may be prescribed in the society's laws. A society may
provide for election of delegates by mail. The elected delegates shall
constitute a majority in number and shall not have less than two-thirds
of the votes and not less than the number of votes required to amend the
society's laws. The assembly shall be elected and shall meet at least
once every four years and shall elect a board of directors to conduct the
business of the society between meetings of the assembly. Vacancies on
the board of directors between elections may be filled in the manner
prescribed by the society's laws;

(b) The supreme governing body is a board composed of persons elected by
the members, either directly or by their representatives in intermediate
assemblies, and any other persons prescribed in the society's laws. A
society may provide for election of the board by mail. Each term of a
board member may not exceed four years. Vacancies on the board between
elections may be filled in the manner prescribed by the society's laws.
Those persons elected to the board shall constitute a majority in number
and not less than the number of votes required to amend the society's
laws. A person filling the unexpired term of an elected board member
shall be considered to be an elected member. The board shall meet at
least quarterly to conduct the business of the society;

(2) The officers of the society are elected either by the supreme
governing body or by the board of directors;

(3) Only benefit members are eligible for election to the supreme
governing body and the board of directors;

(4) Each voting member shall have one vote and no vote may be cast by
proxy. (L. 1992 S.B. 831)

Effective 1-1-93

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 who is designated by the laws or
rules of the society to be a benefit member under a benefit contract;

(3) "Certificate", the document issued as written evidence of the benefit
contract;

(4) "Director", the director of the department of insurance;

(5) "Laws", the society's articles of incorporation, constitution and
bylaws, however designated;

(6) "Lodge", subordinate member units of the society, known as camps,
courts, councils, branches or by any other designation;

(7) "Premiums", premiums, rates, dues or other required contributions by
whatever name known, which are payable under the certificate;

(8) "Rules", all rules, regulations or resolutions adopted by the supreme
governing body or board of directors which are intended to have general
application to the members of the society;

(9) "Society", a fraternal benefit society, unless otherwise indicated.
(L. 1992 S.B. 831)

Effective 1-1-93

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,
charitable, benevolent, moral, fraternal, patriotic or religious purposes
for the benefit of its members, which may also be extended to others.
Such purposes may be carried out directly by the society, or indirectly
through subsidiary corporations or affiliated organizations.

2. Every society shall have the power to adopt laws and rules for the
government of the society, the admission of its members and the
management of its affairs. It shall have the power to change, alter, add
to or amend such laws and rules and shall have such other powers as are
necessary and incidental to carrying into effect the objects and purposes
of the society. (L. 1992 S.B. 831)

Effective 1-1-93

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 membership shall be set at not less than age
fifteen and not greater than age twenty-one;

(2) The process for admission to membership for each membership class; and

(3) The rights and privileges of each membership class, provided that
only benefit members shall have the right to vote on the management of
the insurance affairs of the society.

2. A society may also admit social members who shall have no voice or
vote in the management of the insurance affairs of the society.

3. Membership rights in the society are personal to the member and are
not assignable. (L. 1992 S.B. 831)

Effective 1-1-93

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 such society has at
least one subordinate lodge, or in such other location as determined by
the supreme governing body, and all business transacted at such meetings
shall be as valid in all respects as if such meetings were held in this
state. The minutes of the proceedings of the supreme governing body and
of the board of directors shall be in the English language.

2. (1) A society may provide in its laws for an official publication in
which any notice, report or statement required by law to be given to
members, including notice of election, may be published. Such required
reports, notices and statements shall be printed conspicuously in the
publication. If the records of a society show that two or more members
have the same mailing address, an official publication mailed to one
member is deemed to be mailed to all members at the same address unless a
member requests a separate copy.

(2) Not later than the first day of June of each year, a synopsis of the
society's annual statement providing an explanation of the facts
concerning the condition of the society thereby disclosed shall be
printed and mailed to each benefit member of the society or, in lieu
thereof, such synopsis may be published in the society's official
publication.

3. A society may provide in its laws or rules for grievance or complaint
procedures for members. (L. 1992 S.B. 831)

Effective 1-1-93

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 reasonably incurred by, and liabilities imposed upon, such
person in connection with or arising out of any action, suit or
proceeding, whether civil, criminal, administrative or investigative, or
threat thereof, in which the person may be involved by reason of the fact
that he is or was a director, officer, employee or agent of the society
or of any firm, corporation or organization which he served in any
capacity at the request of the society. A person shall not be so
indemnified or reimbursed:

(1) In relation to any matter in such action, suit or proceeding as to
which he shall finally be adjudged to be or have been guilty of breach of
a duty as a director, officer, employee or agent of the society; or

(2) In relation to any matter in such action, suit or proceeding, or
threat thereof, which has been made the subject of a compromise
settlement.

Unless in either such case the person acted in good faith for a purpose
the person reasonably believed to be in or not opposed to the best
interests of the society and, in a criminal action or proceeding, in
addition, had no reasonable cause to believe that his conduct was
unlawful. The determination whether the conduct of such person met the
standard required in order to justify indemnification and reimbursement
in relation to any matter described in subdivision (1) or (2) of this
subsection may only be made by the supreme governing body or board of
directors by a majority vote of a quorum consisting of persons who were
not parties to such action, suit or proceeding or by a court of competent
jurisdiction. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of no contest, as
to such person shall not in itself create a conclusive presumption that
the person did not meet the standard of conduct required in order to
justify indemnification and reimbursement. The foregoing right of
indemnification and reimbursement shall not be exclusive of other rights
to which such person may be entitled as a matter of law and shall inure
to the benefit of his heirs, executors and administrators.

3. A society shall have power to purchase and maintain insurance on
behalf of any person who is or was a director, officer, employee or agent
of the society, or who is or was serving at the request of the society as
a director, officer, employee or agent of any other firm, corporation or
organization against any liability asserted against such person and
incurred by him in any such capacity or arising out of his status as
such, whether or not the society would have the power to indemnify the
person against such liability under this section. (L. 1992 S.B. 831)

Effective 1-1-93

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 member and
beneficiary of a member. (L. 1992 S.B. 831)

Effective 1-1-93

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, who desire to form a
fraternal benefit society, may make, sign and acknowledge before some
officer competent to administer oaths, articles of incorporation, in
which shall be stated:

(1) The proposed corporate name of the society, which shall not so
closely resemble the name of any society or insurance company as to be
misleading or confusing;

(2) The purposes for which it is being formed and the mode in which its
corporate powers are to be exercised. Such purposes shall not include
more liberal powers than are granted by this chapter;

(3) The names and residences of the incorporators and the names,
residences and official titles of all the officers, trustees, directors,
or other persons who are to have and exercise the general control of the
management of the affairs and funds of the society for the first year or
until the ensuing election at which all such officers shall be elected by
the supreme governing body, which election shall be held not later than
one year from the date of issuance of the permanent certificate of
authority.

2. Such articles of incorporation, duly certified copies of the society's
bylaws and rules, copies of all proposed forms of certificates,
applications therefor, and circulars to be issued by the society and a
bond conditioned upon the return to applicants of the advanced payments
if the organization is not completed within one year shall be filed with
the director, who may require such further information as the director
deems necessary. The bond with sureties approved by the director shall be
in such amount, not less than three hundred thousand dollars, nor more
than one million five hundred thousand dollars, as may be required by the
director. All documents filed are to be in the English language. If the
purposes of the society conform to the requirements of this chapter and
all provisions of the law have been complied with, the director shall so
certify, retain and file the articles of incorporation and shall furnish
the incorporators a preliminary certificate of authority authorizing the
society to solicit members as hereinafter provided.

3. No preliminary certificate of authority granted under the provisions
of this section shall be valid after one year from its date or after such
further period, not exceeding one year, as may be authorized by the
director upon good cause shown, unless the five hundred applicants
hereinafter required have been secured and the organization has been
completed as herein provided. The charter and all other proceedings
thereunder shall become null and void in one year from the date of the
preliminary certificate of authority, or at the expiration of the
extended period, unless the society shall have completed its organization
and received a certificate of authority to do business as hereinafter
provided.

4. Upon receipt of a preliminary certificate of authority from the
director, the society may solicit members for the purpose of completing
its organization, shall collect from each applicant the amount of not
less than one regular monthly premium in accordance with its table of
rates, and shall issue to each such applicant a receipt for the amount so
collected. No society shall incur any liability other than for the return
of such advance premium, nor issue any certificate, nor pay, allow, or
offer or promise to pay or allow, any benefit to any person until:

(1) Actual bona fide applications for benefits have been secured from not
less than five hundred applicants, and any necessary evidence of
insurability has been furnished to and approved by the society;

(2) At least ten subordinate lodges have been established into which the
five hundred applicants have been admitted;

(3) There has been submitted to the director, under oath of the president
or secretary, or corresponding officer of the society, a list of such
applicants, giving their names, addresses, date each was admitted, name
and number of the subordinate lodge of which each applicant is a member,
amount of benefits to be granted and premiums therefor; and

(4) It shall have been shown to the director, by sworn statement of the
treasurer, or corresponding officer of such society, that at least five
hundred applicants have each paid in cash at least one regular monthly
premium as herein provided, which premiums in the aggregate shall amount
to at least one hundred fifty thousand dollars. Said advance premiums
shall be held in trust during the period of organization and if the
society has not qualified for a certificate of authority within one year,
as herein provided, such premiums shall be returned to said applicants.

5. The director may make such examination and require such further
information as the director deems advisable. Upon presentation of
satisfactory evidence that the society has complied with all the
provisions of law, the director shall issue to the society a certificate
of authority to that effect and that the society is authorized to
transact business pursuant to the provisions of this chapter. The
certificate of authority shall be prima facie evidence of the existence
of the society at the date of such certificate. The director shall cause
a record of such certificate of authority to be made. A certified copy of
such record may be given in evidence with like effect as the original
certificate of authority.

6. Any incorporated society authorized to transact business in this state
at the time this act becomes effective shall not be required to
reincorporate. (L. 1992 S.B. 831)

Effective 1-1-93

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 with the provisions of its laws
by the vote of the voting members of the society, by the vote of
delegates or representatives of voting members or by the vote of local
lodges. A society may provide for voting by mail. No amendment submitted
for adoption by referendum shall be adopted unless, within six months
from the date of submission thereof, a majority of the members voting
shall have signified their consent to such amendment by one of the
methods herein specified.

2. No amendment to the laws of any domestic society shall take effect
unless approved by the director who shall approve such amendment if the
director finds that it has been duly adopted and is not inconsistent with
any requirement of the laws of this state or with the character, objects
and purposes of the society. Unless the director shall disapprove any
such amendment within sixty days after the filing of same, such amendment
shall be considered approved. The approval or disapproval of the director
shall be forwarded in writing, and mailed to the secretary or
corresponding officer of the society at its principal office. In case the
director disapproves such amendment, the reasons therefor shall be stated
in such written notice.

3. Within ninety days from the approval thereof by the director, all such
amendments, or a synopsis thereof, shall be furnished to all members of
the society either by mail or by publication in full in the official
publication of the society. The affidavit of any officer of the society
or of anyone authorized by it to mail any amendments or synopsis thereof,
stating facts which show that same have been duly addressed and mailed,
shall be prima facie evidence that such amendments or synopsis thereof,
have been furnished the addressees.

4. Every foreign or alien society authorized to do business in this state
shall file with the director a duly certified copy of all amendments of,
or additions to, its laws within ninety days after the enactment of same.

5. Printed copies of the laws as amended, certified by the secretary or
corresponding officer of the society, shall be prima facie evidence of
the legal adoption thereof. (L. 1992 S.B. 831)

Effective 1-1-93

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 378.605.
Such institutions may furnish services free or at a reasonable charge.
Any real or personal property owned, held, or leased by the society for
this purpose shall be reported in every annual statement.

2. No society shall own or operate funeral homes or undertaking
establishments. (L. 1992 S.B. 831)

Effective 1-1-93

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, or if not so
authorized, one which is approved by the director, but no such society
may reinsure substantially all of its insurance in force without the
written permission of the director. It may take credit for the reserves
on such ceded risks to the extent reinsured, but no credit shall be
allowed as an admitted asset or as a deduction from liability, to a
ceding society for reinsurance made, ceded, renewed, or otherwise
becoming effective after January 1, 1993, unless the reinsurance is
payable by the assuming insurer on the basis of the liability of the
ceding society under the contract or contracts reinsured without
diminution because of the insolvency of the ceding society. The
provisions of section 375.246, RSMo, shall also apply insofar as not in
conflict herewith.

2. Notwithstanding the limitation in subsection 1 of this section, a
society may reinsure the risks of another society in a consolidation or
merger approved by the director under section 378.614. (L. 1992 S.B. 831)

Effective 1-1-93

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 of the written contract containing in full the terms
and conditions of the consolidation or merger;

(2) A sworn statement by the president and secretary or corresponding
officers of each society showing the financial condition thereof on a
date fixed by the director, but not earlier than December thirty-first
next preceding the date of the contract;

(3) A certificate of such officers, duly verified by their respective
oaths, that the consolidation or merger has been approved by a two-thirds
vote of the supreme governing body of each society, such vote being
conducted at a regular or special meeting of each such body, or, if the
society's laws so permit, by mail; and

(4) Evidence that at least sixty days prior to the action of the supreme
governing body of each society, the text of the contract has been
furnished to all members of each society either by mail or by publication
in full in the official publication of each society.

2. If the director finds that the contract is in conformity with the
provisions of this section, that the financial statements are correct,
and that the consolidation or merger is just and equitable to the members
of each society, the director shall approve the contract and issue his
certificate to such effect. Upon such approval, the contract shall be in
full force and effect unless any society which is a party to the contract
is incorporated under the laws of any other state or territory. In such
event the consolidation or merger shall not become effective unless and
until it has been approved as provided by the laws of such state or
territory and a certificate of such approval filed with the director of
this state, or if the laws of such state or territory contain no such
provision, then the consolidation or merger shall not become effective
unless and until it has been approved by the insurance supervisory
official of such state or territory and a certificate of such approval
filed with the director.

3. Upon the consolidation or merger becoming effective as herein
provided, all the rights, franchises and interests of the consolidated or
merged societies in and to every species of property, real, personal or
mixed, and things in action thereunto belonging shall be vested in the
society resulting from or remaining after the consolidation or merger
without any other instrument, except that conveyances of real property
may be evidenced by proper deeds, and the title to any real estate or
interest therein, vested under the laws of this state in any of the
societies consolidated or merged, shall not revert or be in any way
impaired by reason of the consolidation or merger, but shall vest
absolutely in the society resulting from or remaining after such
consolidation or merger.

4. The affidavit of any officer of the society or of anyone authorized by
it to mail any notice or document, stating that such notice or document
has been duly addressed and mailed, shall be prima facie evidence that
such notice or document has been furnished the addressees. (L. 1992 S.B.
831)

Effective 1-1-93

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 companies. A plan of conversion shall be prepared in writing by
the board of directors, setting forth in full the terms and conditions of
conversion. The affirmative vote of two-thirds of all members of the
supreme governing body at a regular or special meeting shall be necessary
for the approval of such plan.

2. No such conversion shall take effect unless and until approved by the
director, who may give such approval if the director finds that the
proposed change is in conformity with the requirements of law and not
prejudicial to the certificate holders of the society. (L. 1992 S.B. 831)

Effective 1-1-93

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, medical or nursing benefits; and

(6) Monument or tombstone benefits to the memory of deceased members; and

(7) Such other benefits as authorized for life insurers and which are not
inconsistent with this chapter.

2. A society shall specify in its rules those persons who may be issued,
or covered by, the contractual benefits in subsection 1 of this section,
consistent with providing benefits to members and their dependents. A
society may provide benefits on the lives of children under the minimum
age for adult membership upon application of an adult person. (L. 1992
S.B. 831)

Effective 1-1-93

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 beneficiary designation be
irrevocable. A society, through its laws or rules, may limit the scope of
beneficiary designations and shall provide that no revocable beneficiary
shall have or obtain any vested interest in the proceeds of any
certificate until the certificate has become due and payable in
conformity with the provisions of the benefit contract.

2. A society may make provision for the payment of funeral benefits to
the extent of such portion of any payment under a certificate as might
reasonably appear to be due to any person equitably entitled thereto by
reason of having incurred expense occasioned by the burial of the member,
provided the portion so paid shall not exceed the sum of one thousand
dollars.

3. If, at the death of any person insured under a benefit contract, there
is no lawful beneficiary to whom the proceeds shall be payable, the
amount of such benefit, except to the extent that funeral benefits may be
paid as hereinbefore provided, shall be payable to the personal
representative of the deceased insured, provided that if the owner of the
certificate is other than the insured, such proceeds shall be payable to
such owner. (L. 1992 S.B. 831)

Effective 1-1-93

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, the laws of the society, the
application for membership, the application for insurance and declaration
of insurability, if any, signed by the applicant, and all amendments to
each thereof, shall constitute the benefit contract, as of the date of
issuance, between the society and the owner, and the certificate shall so
state. A copy of the application for insurance and declaration of
insurability, if any, shall be endorsed upon or attached to the
certificate. All statements on the application shall be representations
and not warranties. Any waiver of this provision shall be void.

2. Any changes, additions or amendments to the laws of the society duly
made or enacted subsequent to the issuance of the certificate shall bind
the owner and the beneficiaries, and shall govern and control the benefit
contract in all respects the same as though such changes, additions or
amendments had been made prior to and were in force at the time of the
application for insurance, except that no change, addition or amendment
shall destroy or diminish benefits which the society contracted to give
the owner as of the date of issuance.

3. Any person upon whose life a benefit contract is issued prior to
attaining the age of majority shall be bound by the terms of the
application and certificate and by all the laws and rules of the society
to the same extent as though the age of majority had been attained at the
time of application.

4. A society shall provide in its laws that if its reserves as to all or
any class of certificates become impaired, its board of directors or
corresponding body may require that there shall be paid by the owner to
the society the amount of the owner's equitable proportion of such
deficiency as ascertained by its board, and that if the payment is not
made either:

(1) It shall stand as an indebtedness against the certificate and draw
interest not to exceed the rate specified for certificate loans under the
certificates; or

(2) In lieu of or in combination with (1), the owner may accept a
proportionate reduction in benefits under the certificate. The society
may specify the manner of the election and which alternative is to be
presumed if no election is made.

5. Copies of any of the documents mentioned in this section, certified by
the secretary or corresponding officer of the society, shall be received
in evidence of the terms and conditions thereof.

6. No certificate shall be delivered or issued for delivery in this state
unless a copy of the form has been filed with and approved by the
director in the manner provided for like policies issued by life insurers
in this state. Every life, accident and sickness, health or disability
insurance certificate and every annuity certificate issued on or after
one year from January 1, 1993, must be approved by the director and shall
meet the standard contract provision requirements not inconsistent with
this chapter for like policies issued by life insurers in this state,
except that a society may provide for a grace period for payment of
premiums of one full month in its certificates. The certificate shall
also contain a provision stating the amount of premiums which are payable
under the certificate and a provision reciting or setting forth the
substance of any sections of the society's laws or rules in force at the
time of issuance of the certificate which, if violated, will result in
the termination or reduction of benefits payable under the certificate.
If the laws of the society provide for expulsion or suspension of a
member, the certificate shall also contain a provision that any member so
expelled or suspended, except for nonpayment of a premium or within the
contestable period for material misrepresentation in the application for
membership or insurance, shall have the privilege of maintaining the
certificate in force by continuing payment of the required premium.

7. Benefit contracts issued on the lives of persons below the society's
minimum age for adult membership may provide for transfer of control of
ownership to the insured at an age specified in the certificate. A
society may require approval of an application for membership in order to
effect this transfer, and may provide in all other respects for the
regulation, government and control of such certificates and all rights,
obligations and liabilities incident thereto and connected therewith.
Ownership rights prior to such transfer shall be specified in the
certificate.

8. A society may specify the terms and conditions on which benefit
contracts may be assigned. (L. 1992 S.B. 831)

Effective 1-1-93

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 provisions of law applicable immediately prior to January 1, 1993.

2. For certificates issued on or after one year from January 1, 1993, for
which reserves are computed on the Commissioner's 1941 Standard Ordinary
Mortality Table, the Commissioner's 1941 Standard Industrial Table or the
Commissioner's 1958 Standard Ordinary Mortality Table, or the
Commissioner's 1980 Standard Mortality Table, or any more recent table
made applicable to life insurers, every paid-up nonforfeiture benefit and
the amount of any cash surrender value, loan or other option granted
shall not be less than the corresponding amount ascertained in accordance
with the laws of this state applicable to life insurers issuing policies
containing like benefits based upon such tables. (L. 1992 S.B. 831)

Effective 1-1-93

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 this state which invests
its funds in accordance with the laws of the state, district, territory,
country or province in which it is incorporated, shall be held to meet
the requirements of this section for the investment of funds. (L. 1992
S.B. 831)

Effective 1-1-93

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 provided in the benefit
contract.

2. A society may create, maintain, invest, disburse and apply any special
fund or funds necessary to carry out any purpose permitted by the laws of
such society.

3. A society may, pursuant to resolution of its supreme governing body,
establish and operate one or more separate accounts and issue contracts
on a variable basis, subject to the provisions of law regulating life
insurers establishing such accounts and issuing such contracts. To the
extent the society deems it necessary in order to comply with any
applicable federal or state laws, or any rules issued thereunder, the
society may adopt special procedures for the conduct of the business and
affairs of a separate account, and may, for persons having beneficial
interests therein, provide special voting and other rights, including
without limitation special rights and procedures relating to investment
policy, investment advisory services, selection of certified public
accountants, and selection of a committee to manage the business and
affairs of the account, and may issue contracts on a variable basis to
which subsections 2 and 4 of section 378.619 shall not apply. (L. 1992
S.B. 831)

Effective 1-1-93

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, RSMo, not only in
governmental relations with this state, but for every other purpose, and
no law hereafter enacted shall apply to them, unless expressly designated
therein. When any other law is applicable, it shall be construed in
accordance with the fundamental nature of a fraternal benefit society. In
the event of any conflict between such law and the provisions of this
chapter, the latter shall prevail. The other law may, however, supplement
or explain the provisions of this chapter, and the laws herein made
applicable to fraternal benefit societies. (L. 1992 S.B. 831)

Effective 1-1-93

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 office
equipment. (L. 1992 S.B. 831)

Effective 1-1-93

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 of valuation for certificates issued on or after
one year from January 1, 1993, shall be based on the following tables:

(1) For certificates of life insurance -- the Commissioner's 1941
Standard Ordinary Mortality Table, the Commissioner's 1941 Standard
Industrial Mortality Table, the Commissioner's 1958 Standard Ordinary
Mortality Table, the Commissioner's 1980 Standard Ordinary Mortality
Table or any more recent table made applicable to life insurers;

(2) For annuity and pure endowment certificates, for total and permanent
disability benefits, for accidental death benefits and for noncancelable
accident and health benefits -- such tables as are authorized for use by
life insurers in this state.

All of the above shall be under valuation methods and standards,
including interest assumptions, in accordance with the laws of this state
applicable to life insurers issuing policies containing like benefits.

3. The director may, in his discretion, accept other standards for
valuation if the director finds that the reserves produced thereby will
not be less in the aggregate than reserves computed in accordance with
the minimum valuation standard herein prescribed. The director may, in
his discretion, vary the standards of mortality applicable to all benefit
contracts on substandard lives or other extra hazardous lives by any
society authorized to do business in this state.

4. Any society, with the consent of the insurance regulatory official of
the state of domicile of the society and under such conditions, if any,
which the director may impose, may establish and maintain reserves on its
certificates in excess of the reserves required thereunder, but the
contractual rights of any benefit member shall not be affected thereby.
(L. 1992 S.B. 831)

Effective 1-1-93

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 statement of its financial condition, transactions and affairs for
the preceding calendar year and pay the required fee for filing same. The
statement shall be in general form and context as approved by the
National Association of Insurance Commissioners for fraternal benefit
societies and as supplemented by additional information required by the
director.

2. As part of the annual statement herein required, each society shall,
on or before the first day of March, file with the director a valuation
of its certificates in force on December thirty-first last preceding,
provided the director may, in his discretion for cause shown, extend the
time for filing such valuation for not more than two calendar months.
Such valuation shall be done in accordance with the standards specified
in section 378.625. Such valuation and underlying date shall be certified
by a qualified actuary or, at the expense of the society, verified by an
actuary of the insurance regulatory agency of the state of domicile of
the society.

3. A society neglecting to file the annual statement in the form and
within the time provided by this section may be subject to a fine of one
hundred dollars for each day during which such neglect continues, and its
authority to do business in this state may be suspended by the director
while such default continues. (L. 1992 S.B. 831)

Effective 1-1-93

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 societies hereafter licensed, may
thereafter be renewed annually, but in all cases to terminate on the
succeeding April. However, a license so issued shall continue in full
force and effect until the new license be issued or specifically refused.
For each such license or renewal the society shall pay the director the
required fee. A duly certified copy or duplicate of such license shall be
prima facie evidence that the licensee is a fraternal benefit society
within the meaning of this chapter. (L. 1992 S.B. 831)

Effective 1-1-93

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 domestic, foreign or alien insurers. Requirements of
notice and an opportunity to respond before findings are made public as
provided in the laws regulating insurers shall also be applicable to the
examination of societies.

2. The expense of each examination and of each valuation, including
compensation and actual expense of examiners, shall be paid by the
society examined or whose certificates are valued, upon statements
furnished by the director. (L. 1992 S.B. 831)

Effective 1-1-93

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 chapter applicable to domestic societies. Any
such society may be licensed to transact business in this state upon
filing with the director:

(1) A duly certified copy of its chapters of incorporation;

(2) A copy of its bylaws, certified by its secretary or corresponding
officer;

(3) A power of attorney to the director as prescribed in section 378.635;

(4) A statement of its business under oath of its president and secretary
or corresponding officers in a form prescribed by the director, duly
verified by an examination made by the insurance supervisory official of
its home state or other state, territory, province or country,
satisfactory to the director;

(5) Certification from the proper official of its home state, territory,
province or country that the society is legally incorporated and licensed
to transact business therein;

(6) Copies of its certificate forms;

(7) A showing that its assets are invested in accordance with the
provisions of this chapter; and

(8) Such other information as the director may deem necessary. (L. 1992
S.B. 831)

Effective 1-1-93

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 chapter;

(3) Is not fulfilling its contracts in good faith;

(4) Has a membership of less than four hundred after an existence of one
year or more; or

(5) Is conducting business fraudulently or in a manner hazardous to its
members, creditors, the public or the business,

the director shall notify the society of such deficiency or deficiencies
and state in writing the reasons for his dissatisfaction. The director
shall at once issue a written notice to the society requiring that the
deficiency or deficiencies which exist are corrected. After such notice
the society shall have a thirty-day period in which to comply with the
director's request for correction, and if the society fails to comply,
the director shall notify the society of such findings of noncompliance
and require the society to show cause on a date named why it should not
be enjoined from carrying on any business until the violation complained
of shall have been corrected, or why an action in quo warranto should not
be commenced against the society.

2. If on such date the society does not present good and sufficient
reasons why it should not be so enjoined or why such action should not be
commenced, the director may commence an action to enjoin the society from
transacting business or in quo warranto.

3. The court shall thereupon notify the officers of the society of a
hearing. If after a full hearing it appears that the society should be so
enjoined or liquidated or a receiver appointed, the court shall enter the
necessary order. No society so enjoined shall have the authority to do
business until:

(1) The director finds that the violation complained of has been
corrected;

(2) The costs of such action shall have been paid by the society if the
court finds that the society was in default as charged;

(3) The court has dissolved its injunction; and

(4) The director has reinstated the certificate of authority.

4. If the court orders the society liquidated, it shall be enjoined from
carrying on any further business, whereupon the receiver of the society
shall proceed at once to take possession of the books, papers, money and
other assets of the society and, under the direction of the court,
proceed forthwith to close the affairs of the society and to distribute
its funds to those entitled thereto, as provided by sections 375.1150 to
375.1246, RSMo.

5. The provisions of this section relating to hearing by the director,
hearing by the court, injunction and receivership shall be applicable to
a society which shall voluntarily determine to discontinue business. (L.
1992 S.B. 831)

Effective 1-1-93

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 provisions of this chapter;

(3) Is not fulfilling its contracts in good faith; or

(4) Is conducting its business fraudulently or in a manner hazardous to
its members or creditors or the public,

the director shall notify the society of such deficiency or deficiencies
and state in writing the reasons for his or her dissatisfaction. The
director shall at once issue a written notice to the society requiring
that the deficiency or deficiencies which exist are corrected. After such
notice the society shall have a thirty-day period in which to comply with
the director's request for correction, and if the society fails to
comply, the director shall notify the society of such findings of
noncompliance and require the society to show cause on a date named why
its license should not be suspended, revoked or refused. If on such a
date the society does not present good and sufficient reason why its
authority to do business in this state should not be suspended, revoked
or refused, the director may suspend or refuse the license of the society
to do business in this state until satisfactory evidence is furnished to
the director that such suspension or refusal should be withdrawn or the
director may revoke the authority of the society to do business in this
state.

2. Nothing contained in this section shall be taken or construed as
preventing any such society from continuing in good faith all contracts
made in this state during the time such society was legally authorized to
transact business herein. (L. 1992 S.B. 831)

Effective 1-1-93

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 1-1-93

1. Agents of societies shall be licensed in accordance with the
provisions of chapter 375, RSMo, regulating the licensing, revocation,
suspension or termination of license of resident and nonresident agents;
provided, that no person who acted in the capacity as an agent of a
licensed society for a period of at least six months immediately
preceding October 13, 1969, shall be required to take an examination as
provided for in chapter 375, RSMo, as a condition for licensure as an
insurance agent.

2. The following individuals shall not be deemed an agent of a fraternal
benefit society within the provisions of subsection 1 of this section:

(1) Any regular salaried officer, employee or secretary of a licensed
society or any subordinate lodge thereof, who devotes substantially all
of his services to activities other than the solicitation of fraternal
insurance contracts from the public, and who receives for the
solicitation of such contracts no commission or other compensation
directly dependent upon the amount of business obtained; or

(2) Any member representative of any society which insures its members
against death, dismemberment and disability resulting from accident only
and which pays no commission or other consideration for the collection of
premiums for such contracts. (L. 1992 S.B. 831)

Effective 1-1-93

Every society authorized to do business in this state shall be
subject to the sections of chapter 375, RSMo, relating to unfair
practices and frauds; provided, however, that nothing therein shall be
construed as applying to or affecting the right of any society to
determine its eligibility requirements for membership, or be construed as
applying to or affecting the offering of benefits exclusively to members
or persons eligible for membership in the society by a subsidiary
corporation or affiliated organization of the society. (L. 1992 S.B. 831)

Effective 1-1-93

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 375.906, RSMo. (L. 1992 S.B. 831)

Effective 1-1-93

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 misdemeanor.

2. Any person who willfully makes a false or fraudulent statement in any
verified report or declaration under oath required or authorized by this
chapter, or of any material fact or thing contained in a sworn statement
concerning the death or disability of an insured for the purpose of
procuring payment of a benefit named in the certificate, shall be guilty
of perjury and shall be subject to the penalties therefor prescribed by
law.

3. Any person who knowingly solicits membership for, or in any manner
assists in procuring membership in, any society not licensed to do
business in this state, or who shall solicit membership for, or in any
manner assist in procuring membership in any such society not authorized
as provided in this chapter, shall be guilty of an infraction.

4. Any person guilty of a knowing violation of, or neglect or refusal to
comply with, the provisions of this chapter for which a penalty is not
otherwise prescribed shall be guilty of an infraction. (L. 1992 S.B. 831
§ 378.636)

Effective 1-1-93

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 benefits
exclusively through local or subordinate lodges, or to:

(1) Orders, societies or associations which admit to membership only
persons engaged in one or more crafts or hazardous occupations, in the
same or similar lines of business; and the ladies societies or ladies
auxiliaries to such orders, societies or associations;

(2) Domestic societies which limit their membership to employees of a
particular city or town, designated firm, business house or corporation
which provide for a death benefit of not more than five hundred dollars
or disability benefits of not more than three hundred fifty dollars to
any person in any one year, or both;

(3) Domestic societies or associations of a purely religious, charitable
or benevolent description, which provide for a death benefit of not more
than five hundred dollars or for disability benefits of not more than
three hundred fifty dollars to any one person in any one year, or both.

2. Any such society or association described in subdivisions (2) and (3)
of subsection 1 of this section which provides for death or disability
benefits for which benefit certificates are issued, and any such society
or association included in subdivision (3) of subsection 1 of this
section which has more than two thousand members, shall not be exempted
from the provisions of this chapter but shall comply with all
requirements thereof.

3. No society which, by the provisions of this section, is exempt from
the requirements of this chapter, except any society described in
subdivision (1) of subsection 1, shall give or allow, or promise to give
or allow to any person any compensation for procuring new members.

4. Any society whose membership is confined to any religious denomination
shall not be required to have ritualistic ceremonies.

5. Every fraternal benefit society heretofore organized and incorporated
and which provides exclusively for benefits in case of death or
disability resulting solely from accident, and which does not obligate
itself to pay natural death or sick benefits, may be relicensed under the
provisions of this chapter, if heretofore authorized, and shall have all
of the privileges, and be subject to all the applicable provisions and
regulations of this chapter, except that the privileges thereof relating
to medical examination, valuations of benefit certificates, and
requirements that the certificate shall specify the amount of benefits
shall not apply to such society.

6. The director may require from any society or association, by
examination or otherwise, such information as will enable the director to
determine whether such society or association is exempt from the
provisions of this chapter. (L. 1992 S.B. 831 § 378.637)

Effective 1-1-93

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 S.B. 831 § 378.638)

Effective 1-1-93

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)

Effective 1-1-93

Usa-missouri Law Firm / Lawyers Services Provided in Usa-missouri :

Usa-missouri Divorce Laws, custody, Usa-missouri Corporate Lawyers, Agreement, provident fund, Registered marriage, Court marriage Lawyers, Special/ Foreign marriage, Incorporation of company, Rent, eviction, tenancy, Lease Lawyers, Usa-missouri Labour laws, Appeals, Supreme Court Lawyers, High Court Lawyers, Bail, medical, negligence, Insurance claims/ accidents Lawyer, Usa-missouri Citizenship/ immigration Lawyers, Copyright Laws, Consumer, district Laywer, State, national, Dowry, Wills & Probate, Trust & Estates Lawyers, Intellectual Property Lawyer, Bankrupt Lawyers, Banking & Finance, Corporate, Private Business Law, Recovery, Joint Venture & Mergers, Consumer, Civil Right Law Usa-missouri, Medical Negligence, Medical Malpractice, legal notice, summons, Income Tax Lawyers, sales, Custom Law, Excise Law, octroi, cess Civil, Criminal Solicitor Usa-missouri, Registration of property, Title search, mutation relationship, Conveyance, Transfer of Property Law, Usa-missouri Property lawyer, deeds, drafts, power of attorney, Recovery, Taxation Laws in Usa-missouri

This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Persons accessing this site are encouraged to seek independent counsel for advice in India abroad regarding their individual legal, civil criminal issues or consult one of the experts online.