CHAPTER 3. MEMBERSHIP
IC 27-11-3
Chapter 3. Membership
IC 27-11-3-1
Eligibility standards; admission process; rights and privileges ofmembers; social members
Sec. 1. (a) 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 lessthan age fifteen (15) and not greater than age twenty-one (21);
(2) the process for admission to each membership class; and
(3) the rights and privileges of each membership class, providedthat only benefit members shall have the right to vote on themanagement of the insurance affairs of the society.
(b) A society may also admit social members who have no voiceor vote in the management of the insurance affairs of the society.
(c) Membership rights in the society are personal to the memberand are not assignable.
As added by P.L.262-1985, SEC.1.
IC 27-11-3-2
Location of principal office; meetings; official publication; synopsisof annual statement; grievance procedures
Sec. 2. (a) The principal office of any domestic society shall belocated in this state. The meetings of its supreme governing bodymay be held in any state, district, province, or territory where thesociety has at least one (1) subordinate lodge, or in another locationas determined by the supreme governing body, and all businesstransacted at the meetings shall be as valid in all respects as if themeetings were held in this state. The minutes of the proceedings ofthe supreme governing body and of the board of directors must be inthe English language.
(b) A society may provide in its laws for an official publication inwhich any notice, report, or statement required by law to be given tomembers, including notice of election, may be published. Suchrequired reports, notices, and statements shall be printedconspicuously in the publication. If the records of a society show thattwo (2) or more members have the same mailing address, an officialpublication mailed to one (1) member is deemed to be mailed to allmembers at the same address unless a member requests a separatecopy.
(c) Not later than June 1 of each year, a synopsis of the society'sannual statement providing an explanation of the facts concerning thecondition of the society shall be printed and mailed to each benefitmember of the society or, instead, the synopsis may be published inthe society's official publication.
(d) A society may provide in its laws or rules for grievance orcomplaint procedures for members.
As added by P.L.262-1985, SEC.1.
IC 27-11-3-3
Personal liability of officers and members; indemnification andreimbursement of certain persons; maintenance of insurance oncertain persons
Sec. 3. (a) The officers and members of the supreme governingbody or any subordinate body of a society are not personally liablefor any benefits provided by a society.
(b) Any person may be indemnified and reimbursed by anysociety for expenses reasonably incurred by and liabilities imposedupon the person in connection with or arising out of any action, suit,or proceeding, whether civil, criminal, administrative, orinvestigative, or threat thereof, in which the person may be involvedby reason of the fact that the person is or was a director, officer,employee, or agent of the society or of any firm, limited liabilitycompany, corporation, or organization that the person served in anycapacity at the request of the society. A person shall not beindemnified or reimbursed:
(1) in relation to any matter in such action, suit, or proceedingas to which the person is adjudged to be or has been guilty ofbreach of a duty as a director, officer, employee, or agent of thesociety; or
(2) in relation to any matter in an action, suit, proceeding, orthreat that has been made the subject of a compromisesettlement;
unless in either case the person acted in good faith for a purpose theperson reasonably believed to be in or not opposed to the bestinterests of the society and, in a criminal action or proceeding, hadno reasonable cause to believe that this conduct was unlawful.
(c) The determination whether the conduct of such person met thestandard required in order to justify indemnification andreimbursement in relation to any matter described in subsection(b)(1) or (b)(2) may only be made by the supreme governing body orboard of directors by a majority vote of a quorum consisting ofpersons who were not parties to the action, suit, or proceeding or bya court of competent jurisdiction. The termination of any action, suit,or proceeding by judgment, order, settlement, conviction, or upon aplea of no contest does not in itself create a conclusive presumptionthat the person did not meet the standard of conduct required in orderto justify indemnification and reimbursement.
(d) The right of indemnification and reimbursement provided inthis section is not exclusive of other rights to which the person maybe entitled as a matter of law and shall inure to the benefit of thatperson's heirs, executors, and administrators.
(e) A society may purchase and maintain insurance on behalf ofany person who is or was a director, officer, employee, or agent ofthe society or who is or was serving at the request of the society asa director, officer, employee, or agent of any other firm, corporation,limited liability company, or organization against any liabilityasserted against the person and incurred by the person in any suchcapacity or arising out of the person's status, whether or not the
society would have the power to indemnify the person against suchliability under this section.
As added by P.L.262-1985, SEC.1. Amended by P.L.8-1993,SEC.435.
IC 27-11-3-4
Waiver of provisions of laws of the society
Sec. 4. The laws of the society may provide that no subordinatebody nor any of its subordinate officers or members shall have thepower or authority to waive any of the provisions of the laws of thesociety. The provision shall be binding on the society and everymember and beneficiary of a member.
As added by P.L.262-1985, SEC.1.