20-861. Definitions In this article, unless the context otherwise requires: 1. " Association or order" means any association or order that is a nonprofit military mutual aid association, whose members are officers or enlisted, regular or reserve, active, retired or honorably discharged members of the armed forces or sea services of the United States, and […]
20-862. Lodge system A. A society operates on the lodge system if the society has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted according to the society’s laws, rules and ritual. The laws of the society shall require subordinate lodges to hold meetings at least once in each […]
20-863. Representative form of government A society has a representative form of government if: 1. It has a supreme governing body constituted in one of the following ways: (a) The supreme governing body is an assembly that is composed of delegates who are elected directly by the members or at intermediate assemblies or conventions of […]
20-864. Purposes and powers A. A society shall operate for the benefit of its members and their beneficiaries and shall: 1. Provide benefits pursuant to section 20-875. 2. Operate for social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes. This benefit may also be extended to other persons. B. The society may carry […]
20-865. Qualifications for membership A. A society shall specify all of the following: 1. Eligibility standards for each membership class. If the society provides benefits on the lives of children, the minimum age for adult membership shall be not less than fifteen years of age or more than twenty-one years of age. 2. Admission procedures […]
20-866. Location of office; publications; grievance procedure A. The principal office of a domestic society shall be located in this state. The meetings of the society’s supreme governing body may be held in any state, district, province or territory in which the society has at least one subordinate lodge or in any other place that […]
20-867. Exemption from liability A. The officers and members of the supreme governing body or a subordinate body of a society are not personally liable for any benefits that are provided by the society. B. A society may indemnify and reimburse any person who is or was a director, officer, employee or agent of a […]
20-868. Waiver The laws of the society may provide that a subordinate body or any subordinate officers or members shall not waive any provision of the laws of the society. A provision prohibiting waiver is binding on the society, its members and every member’s beneficiaries.
20-869. Organization Beginning on January 1, 1995, a domestic fraternal benefit society may be organized 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 articles of incorporation before an officer who […]
20-870. Amendment to society laws A. The supreme governing body of a domestic society may amend its laws in accordance with its laws at any regular or special meeting, or if the laws provide, by referendum. A referendum may be held in accordance with the society’s laws by the vote of the voting members of […]
20-871. Authority to maintain institutions A. A society may create, maintain and operate or establish an organization to operate not for profit institutions to further the purposes of the society as prescribed by section 20-864. An institution established pursuant to this section may provide services for free or for a reasonable charge. B. The society […]
20-872. Reinsurance A. Pursuant to a reinsurance agreement, a domestic fraternal benefit society may cede any part or all of its risks to an insurer other than another fraternal benefit society that has the power to take the reinsurance and that is authorized to transact business in this state, or if the reinsurer is not […]
20-873. Consolidation or merger A. A domestic fraternal benefit society may consolidate or merge with any other society if it complies with this section. The society shall file the following with the director: 1. A certified copy of the written contract that contains in full the terms and conditions of the consolidation or merger. 2. […]
20-874. Conversion of fraternal benefit society to mutual life insurance company A domestic fraternal benefit society may convert to and be licensed as a mutual life insurance company by complying with the requirements of this title relating to mutual insurers. The board of directors shall prepare a plan of conversion in writing. The plan of […]
20-875. Benefits A. A fraternal benefit 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. 6. Monument or tombstone benefits to the memory of deceased members. 7. Any other benefits that are authorized […]
20-876. Beneficiaries A. At all times the owner of a benefit contract may change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right and requests in writing that the beneficiary designation be irrevocable. A society may limit the scope of beneficiary designations and shall […]
20-877. Benefits not attachable Any money or other benefit, charity, relief or aid that a society pays, provides or renders is not subject to attachment, garnishment or other process and shall not be seized, taken, appropriated or applied to pay any debt or liability of any member, beneficiary or other person who may have a […]
20-878. Benefit contract A. A society shall issue to each owner of a benefit contract a certificate that specifies the amount of benefits provided under the certificate. The certificate shall state that it constitutes the benefit contract as of the date of issuance of the certificate, together with any riders or endorsements attached to the […]
20-879. Nonforfeiture benefits, cash surrender value, certificate loans and other options A. For certificates that are issued before January 1, 1996, 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 applicable provisions of law that were in effect before January […]
20-880. Investments A society shall invest its funds only in those investments that are authorized by this title. A foreign or alien society that is permitted or seeking to do business in this state and that invests its funds in accordance with the laws of the state, district, territory, country or province in which it […]
