512B.1 Scope of chapter. Except as otherwise provided in this chapter, societies are governed by this chapter and are exempt from all other insurance laws of this state unless expressly included in this chapter, or unless specifically made applicable by this chapter. 90 Acts, ch 1148, §1
512B.10 Waiver. The laws of the society may provide that a subordinate body, or any of its subordinate officers or members, do not have the power or authority to waive any of the provisions of the laws of the society. A waiver prohibition provision is binding on the society and every member and beneficiary of […]
512B.11 Organization. A domestic society organized on or after January 1, 1991, shall 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 sign and file with the secretary of state and commissioner of […]
512B.12 Amendments to laws. 1. A domestic society may amend its laws in accordance with the provisions of 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 the society’s laws […]
512B.13 Institutions. A society may create, maintain, and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by section 512B.6, subsection 1, paragraph “a”, subparagraph (2). The institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held, or leased by the society for […]
512B.14 Reinsurance. 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 agreements and authorized to do business in this state, or if not so authorized, one which is […]
512B.15 Consolidations and mergers. 1. A domestic society may consolidate or merge with a domestic society, foreign society, or society chartered under the laws of Canada or a Canadian province or territory, by complying with this section. The society shall file with the commissioner all of the following: a. A certified copy of the written […]
512B.15A Conversion of fraternal benefit society into a mutual life insurance company. A domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of the general insurance laws for mutual life insurance companies. A plan of conversion shall be prepared in writing by the […]
512B.16 Benefits. 1. A society may provide any or all of 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 deceased members. g. Other benefits authorized for […]
512B.17 Beneficiaries. 1. The owner of a benefit contract may change the beneficiary or beneficiaries in accordance with the laws or regulations of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or regulations, limit the scope of beneficiary […]
512B.18 Benefits not attachable. Money or other benefit, charity, relief, or aid to be paid, provided, or rendered by a society, is not liable to attachment, garnishment, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay a debt or liability of […]
512B.19 The benefit contract. 1. A 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 pursuant to the benefit contract. The certificate, together with any riders or endorsements attached to the certificate, the laws of the society, the application […]
512B.2 Definitions. As used in this chapter, unless the context otherwise requires: 1. “Alien society” means an association organized under the laws of another country. 2. “Benefit contract” means the agreement for provision of benefits authorized by section 512B.16, as that agreement is described in section 512B.19, subsection 1. 3. “Benefit member” means an adult […]
512B.20 Nonforfeiture benefits, cash surrender values, certificate loans, and other options. 1. For certificates issued before January 1, 1991, the value of every paid-up nonforfeiture benefit and the amount of any cash surrendered value, loan, or other option granted shall comply with chapter 512, Code 1989. 2. For certificates issued on or after January 1, […]
512B.21 Investments. A society shall invest its funds only as authorized by the laws of this state for the investment of assets of life insurers and subject to the same limitations. A foreign or alien society permitted or seeking to do business in this state which invests its funds in accordance with the laws of […]
512B.21A Required reserves. A society incorporated on or after July 1, 1993, shall have in cash, or in securities which are authorized for investment purposes for insurance companies pursuant to section 512B.21, surplus in an amount not less than five million dollars. 93 Acts, ch 88, §14
512B.22 Funds. 1. 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 the society’s assets or become entitled to an apportionment on the surrender of any part of the society’s assets, except as provided in […]
512B.23 Valuation. 1. Standards of valuation for certificates issued before January 1, 1991, are those provided by chapter 512, Code 1989. 2. a. The minimum standards of valuation for certificates issued on or after January 1, 1991, shall be based on the following tables: (1) For certificates of life insurance, the commissioner’s 1980 standard ordinary […]
512B.24 Reports. Reports shall be filed in accordance with this section. 1. A society transacting business in this state, on or before March 1 annually, unless for cause shown the time has been extended by the commissioner, shall file with the commissioner a true statement of its financial condition, transactions, and affairs for the preceding […]
512B.25 Annual license — renewal. The authority of a society to transact business in this state may be renewed annually. A license terminates on the first day of June following issuance or renewal. A society shall submit annually on or before March 1 a completed application for renewal of its license. For each license or […]
