11040. All benefits provided for in the laws and agreements of a
society shall be payable only out of its funds in accordance with its
laws. The officers and members of the supreme, grand or any
subordinate body of a society shall not be individually liable
therefor.
11041. An admitted society may, by the issuance of certificates,
provide for payment to its members of insurance benefits contained
within the following classes:
(a) All forms of life insurance, as defined in Section 101, except
group insurance and funeral insurance as defined in Section 10240.
(b) All forms of disability insurance, as defined in Section 106,
except group insurance.
Except as otherwise provided in this chapter, benefits may be paid
in any manner compatible with their nature.
Any benefits authorized in this section, or combinations thereof,
may be provided in the same or separate certificates.
A society shall specify in its laws or rules those persons who may
receive benefits or be covered by benefits through the society. For
all coverages, the member shall be the applicant or the insured
provided that if the member is the applicant, there shall be a bona
fide familial or other dependent relationship between the member and
the insured or beneficiary. Every society, by its constitution, laws,
or rules, may limit the scope of beneficiaries only to the extent
required by federal law governing fraternal benefit societies. The
society may specify the terms and conditions on which benefit
certificates may be assigned.
11042. A society may provide for benefits on the lives of children
under 21 years of age and under the minimum age for adult membership
under the laws of the society at time of application therefor, upon
the application of some adult person, as its laws or rules may
provide, which benefits shall be in accordance with the provisions of
Section 11041. A society may, at its option, organize and operate
branches for such children. Membership and initiation in local lodges
shall not be required of such children, nor shall they have a voice
in the management of the society. Children insured under certificates
issued pursuant to this section may be transferred to and become
members of the adult branch of the society upon attaining the minimum
age for adult membership under the laws of the society.
If a society maintains a separate juvenile fund, it shall have the
right to provide in its laws or rules for the payment to the society'
s expense or general fund; provided, that no such society shall
transfer to such funds amounts collected for juvenile mortuary
benefits and the net accretions thereto. A society shall have full
power to provide for the fixing and readjusting, from time to time,
of the premiums and the designation and changing of designation of
beneficiaries and to provide in all other respects for the
regulation, government and control of such certificates and all
rights, obligations and liabilities incident thereto and in
connection therewith.
11043. A society may grant nonforfeiture benefits, cash surrender
values, certificate loans, and other options as its laws may permit.
In the case of certificates issued after September 21, 1952, other
than those for which reserves are computed on the Commissioners 1941
Standard Ordinary Mortality Table, the 1941 Standard Industrial
Table, the Commissioners 1958 Standard Ordinary Mortality Table, the
Commissioners 1980 Standard Ordinary Mortality Table, or any more
recent table approved by the commissioner that applies to life
insurers, the value of any nonforfeiture benefit granted and the
amount of any cash surrender value granted shall not be less than the
excess, if any, of (a) over (b) as follows:
(a) The reserve under the certificate determined on the basis
specified in the certificate; and
(b) The sum of any indebtedness to the society on the certificate,
including interest due and accrued, and a surrender charge of not
more than 2 1/2 percent of the face amount of the certificate, which,
in the case of insurance on the lives of children, shall be the
ultimate face amount of the certificate, if death benefits provided
therein are graded.
However, in the case of certificates issued on a substandard basis
or in the case of certificates, the reserves for which are computed
upon the American Men Ultimate Table of Mortality, the term of any
extended insurance benefit including accompanying pure endowment, if
any, may be computed upon the rates of mortality not greater than 130
percent of those shown by the mortality table specified in the
certificate for the computation of the reserve.
In the case of certificates issued after September 21, 1952, for
which reserves are computed on the Commissioners 1941 Standard
Ordinary Mortality Table, the 1941 Standard Industrial Table, the
Commissioners 1958 Standard Ordinary Mortality Table, the
Commissioners 1980 Standard Ordinary Mortality Table, or any more
recent table approved by the commissioner that applies to life
insurers, the value of any nonforfeiture benefit granted and the
amount of any cash surrender value granted shall not be less than the
corresponding amount ascertained in accordance with the provisions
of Sections 10161, 10162, 10163, 10163.1, 10163.2, 10164, 10164.1,
and 10165 applicable to life insurance companies.
11044. No 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 insurance
contract. The owner of a certificate shall have the right at all
times to change the beneficiary or beneficiaries in accordance with
the constitution, laws, or rules of the society, unless the owner
waives this right by specifically requesting in writing that the
beneficiary designation be irrevocable. Every society, by its
constitution, laws, or rules, may limit the scope of beneficiaries
only to the extent required by federal law governing fraternal
benefit societies.
11040. All benefits provided for in the laws and agreements of a
society shall be payable only out of its funds in accordance with its
laws. The officers and members of the supreme, grand or any
subordinate body of a society shall not be individually liable
therefor.
11041. An admitted society may, by the issuance of certificates,
provide for payment to its members of insurance benefits contained
within the following classes:
(a) All forms of life insurance, as defined in Section 101, except
group insurance and funeral insurance as defined in Section 10240.
(b) All forms of disability insurance, as defined in Section 106,
except group insurance.
Except as otherwise provided in this chapter, benefits may be paid
in any manner compatible with their nature.
Any benefits authorized in this section, or combinations thereof,
may be provided in the same or separate certificates.
A society shall specify in its laws or rules those persons who may
receive benefits or be covered by benefits through the society. For
all coverages, the member shall be the applicant or the insured
provided that if the member is the applicant, there shall be a bona
fide familial or other dependent relationship between the member and
the insured or beneficiary. Every society, by its constitution, laws,
or rules, may limit the scope of beneficiaries only to the extent
required by federal law governing fraternal benefit societies. The
society may specify the terms and conditions on which benefit
certificates may be assigned.
11042. A society may provide for benefits on the lives of children
under 21 years of age and under the minimum age for adult membership
under the laws of the society at time of application therefor, upon
the application of some adult person, as its laws or rules may
provide, which benefits shall be in accordance with the provisions of
Section 11041. A society may, at its option, organize and operate
branches for such children. Membership and initiation in local lodges
shall not be required of such children, nor shall they have a voice
in the management of the society. Children insured under certificates
issued pursuant to this section may be transferred to and become
members of the adult branch of the society upon attaining the minimum
age for adult membership under the laws of the society.
If a society maintains a separate juvenile fund, it shall have the
right to provide in its laws or rules for the payment to the society'
s expense or general fund; provided, that no such society shall
transfer to such funds amounts collected for juvenile mortuary
benefits and the net accretions thereto. A society shall have full
power to provide for the fixing and readjusting, from time to time,
of the premiums and the designation and changing of designation of
beneficiaries and to provide in all other respects for the
regulation, government and control of such certificates and all
rights, obligations and liabilities incident thereto and in
connection therewith.
11043. A society may grant nonforfeiture benefits, cash surrender
values, certificate loans, and other options as its laws may permit.
In the case of certificates issued after September 21, 1952, other
than those for which reserves are computed on the Commissioners 1941
Standard Ordinary Mortality Table, the 1941 Standard Industrial
Table, the Commissioners 1958 Standard Ordinary Mortality Table, the
Commissioners 1980 Standard Ordinary Mortality Table, or any more
recent table approved by the commissioner that applies to life
insurers, the value of any nonforfeiture benefit granted and the
amount of any cash surrender value granted shall not be less than the
excess, if any, of (a) over (b) as follows:
(a) The reserve under the certificate determined on the basis
specified in the certificate; and
(b) The sum of any indebtedness to the society on the certificate,
including interest due and accrued, and a surrender charge of not
more than 2 1/2 percent of the face amount of the certificate, which,
in the case of insurance on the lives of children, shall be the
ultimate face amount of the certificate, if death benefits provided
therein are graded.
However, in the case of certificates issued on a substandard basis
or in the case of certificates, the reserves for which are computed
upon the American Men Ultimate Table of Mortality, the term of any
extended insurance benefit including accompanying pure endowment, if
any, may be computed upon the rates of mortality not greater than 130
percent of those shown by the mortality table specified in the
certificate for the computation of the reserve.
In the case of certificates issued after September 21, 1952, for
which reserves are computed on the Commissioners 1941 Standard
Ordinary Mortality Table, the 1941 Standard Industrial Table, the
Commissioners 1958 Standard Ordinary Mortality Table, the
Commissioners 1980 Standard Ordinary Mortality Table, or any more
recent table approved by the commissioner that applies to life
insurers, the value of any nonforfeiture benefit granted and the
amount of any cash surrender value granted shall not be less than the
corresponding amount ascertained in accordance with the provisions
of Sections 10161, 10162, 10163, 10163.1, 10163.2, 10164, 10164.1,
and 10165 applicable to life insurance companies.
11044. No 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 insurance
contract. The owner of a certificate shall have the right at all
times to change the beneficiary or beneficiaries in accordance with
the constitution, laws, or rules of the society, unless the owner
waives this right by specifically requesting in writing that the
beneficiary designation be irrevocable. Every society, by its
constitution, laws, or rules, may limit the scope of beneficiaries
only to the extent required by federal law governing fraternal
benefit societies.
11040. All benefits provided for in the laws and agreements of a
society shall be payable only out of its funds in accordance with its
laws. The officers and members of the supreme, grand or any
subordinate body of a society shall not be individually liable
therefor.
11041. An admitted society may, by the issuance of certificates,
provide for payment to its members of insurance benefits contained
within the following classes:
(a) All forms of life insurance, as defined in Section 101, except
group insurance and funeral insurance as defined in Section 10240.
(b) All forms of disability insurance, as defined in Section 106,
except group insurance.
Except as otherwise provided in this chapter, benefits may be paid
in any manner compatible with their nature.
Any benefits authorized in this section, or combinations thereof,
may be provided in the same or separate certificates.
A society shall specify in its laws or rules those persons who may
receive benefits or be covered by benefits through the society. For
all coverages, the member shall be the applicant or the insured
provided that if the member is the applicant, there shall be a bona
fide familial or other dependent relationship between the member and
the insured or beneficiary. Every society, by its constitution, laws,
or rules, may limit the scope of beneficiaries only to the extent
required by federal law governing fraternal benefit societies. The
society may specify the terms and conditions on which benefit
certificates may be assigned.
11042. A society may provide for benefits on the lives of children
under 21 years of age and under the minimum age for adult membership
under the laws of the society at time of application therefor, upon
the application of some adult person, as its laws or rules may
provide, which benefits shall be in accordance with the provisions of
Section 11041. A society may, at its option, organize and operate
branches for such children. Membership and initiation in local lodges
shall not be required of such children, nor shall they have a voice
in the management of the society. Children insured under certificates
issued pursuant to this section may be transferred to and become
members of the adult branch of the society upon attaining the minimum
age for adult membership under the laws of the society.
If a society maintains a separate juvenile fund, it shall have the
right to provide in its laws or rules for the payment to the society'
s expense or general fund; provided, that no such society shall
transfer to such funds amounts collected for juvenile mortuary
benefits and the net accretions thereto. A society shall have full
power to provide for the fixing and readjusting, from time to time,
of the premiums and the designation and changing of designation of
beneficiaries and to provide in all other respects for the
regulation, government and control of such certificates and all
rights, obligations and liabilities incident thereto and in
connection therewith.
11043. A society may grant nonforfeiture benefits, cash surrender
values, certificate loans, and other options as its laws may permit.
In the case of certificates issued after September 21, 1952, other
than those for which reserves are computed on the Commissioners 1941
Standard Ordinary Mortality Table, the 1941 Standard Industrial
Table, the Commissioners 1958 Standard Ordinary Mortality Table, the
Commissioners 1980 Standard Ordinary Mortality Table, or any more
recent table approved by the commissioner that applies to life
insurers, the value of any nonforfeiture benefit granted and the
amount of any cash surrender value granted shall not be less than the
excess, if any, of (a) over (b) as follows:
(a) The reserve under the certificate determined on the basis
specified in the certificate; and
(b) The sum of any indebtedness to the society on the certificate,
including interest due and accrued, and a surrender charge of not
more than 2 1/2 percent of the face amount of the certificate, which,
in the case of insurance on the lives of children, shall be the
ultimate face amount of the certificate, if death benefits provided
therein are graded.
However, in the case of certificates issued on a substandard basis
or in the case of certificates, the reserves for which are computed
upon the American Men Ultimate Table of Mortality, the term of any
extended insurance benefit including accompanying pure endowment, if
any, may be computed upon the rates of mortality not greater than 130
percent of those shown by the mortality table specified in the
certificate for the computation of the reserve.
In the case of certificates issued after September 21, 1952, for
which reserves are computed on the Commissioners 1941 Standard
Ordinary Mortality Table, the 1941 Standard Industrial Table, the
Commissioners 1958 Standard Ordinary Mortality Table, the
Commissioners 1980 Standard Ordinary Mortality Table, or any more
recent table approved by the commissioner that applies to life
insurers, the value of any nonforfeiture benefit granted and the
amount of any cash surrender value granted shall not be less than the
corresponding amount ascertained in accordance with the provisions
of Sections 10161, 10162, 10163, 10163.1, 10163.2, 10164, 10164.1,
and 10165 applicable to life insurance companies.
11044. No 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 insurance
contract. The owner of a certificate shall have the right at all
times to change the beneficiary or beneficiaries in accordance with
the constitution, laws, or rules of the society, unless the owner
waives this right by specifically requesting in writing that the
beneficiary designation be irrevocable. Every society, by its
constitution, laws, or rules, may limit the scope of beneficiaries
only to the extent required by federal law governing fraternal
benefit societies.
