CHAPTER 4. ORGANIZATION
IC 27-11-4
Chapter 4. Organization
IC 27-11-4-1
Application of chapter
Sec. 1. A domestic society organized after December 31, 1985,shall be formed under this chapter.
As added by P.L.262-1985, SEC.1.
IC 27-11-4-2
Organization of fraternal benefit society; articles of incorporation
Sec. 2. Seven (7) or more citizens of the United States, a majorityof whom are citizens of this state, who desire to form a fraternalbenefit society, may make, sign, and acknowledge before someofficer competent to take acknowledgment of deeds and articles ofincorporation. The article of incorporation must state the following:
(1) The proposed corporate name of the society, which must notresemble the name of any society or insurance company as to bemisleading or confusing.
(2) The purposes for which it is being formed and the mode inwhich its corporate powers are to be exercised. Such purposesmay not include more liberal powers than are granted by thisarticle.
(3) The names and residences of the incorporators and thenames, residences, and official titles of all the officers, trustees,directors, or other persons who are to have and exercise thegeneral control of the management of the affairs and funds ofthe society for the first year or until the ensuing election atwhich all such officers shall be elected by the supremegoverning body, which election shall be held not later than one(1) year from the date of issuance of the permanent certificateof authority.
As added by P.L.262-1985, SEC.1.
IC 27-11-4-3
Filing of articles of incorporation, bylaws and rules, forms ofcertificates, circulars, and bond
Sec. 3. Articles of incorporation, certified copies of the society'sbylaws and rules, copies of all proposed forms of certificates,applications therefor, circulars to be issued by the society, and abond conditioned upon the return to applicants of the advancedpayments if the organization is not completed within one (1) yearshall be filed with the commissioner, who may require furtherinformation as the commissioner considers necessary. The bond withsureties approved by the commissioner shall be not less than threehundred thousand dollars ($300,000) nor more than one million fivehundred thousand dollars ($1,500,000), as required by thecommissioner. All documents filed are to be in the English language.If the purposes of the society conform to the requirements of thisarticle and all provisions of the law have been complied with, the
commissioner shall certify, retain, and file the articles ofincorporation and furnish the incorporators a preliminary certificateof authority authorizing the society to solicit members as provided inthis chapter.
As added by P.L.262-1985, SEC.1.
IC 27-11-4-4
Preliminary certificate of authority; expiration; extension
Sec. 4. No preliminary certificate of authority granted under thissection shall be valid after one (1) year from its date or after a furtherperiod, not exceeding one (1) year, as may be authorized by thecommissioner upon cause shown, unless the five hundred (500)applicants required in this chapter have been secured and theorganization has been completed as provided. The articles ofincorporation and all other proceedings thereunder shall become nulland void in one (1) year from the date of the preliminary certificateof authority or at the expiration of the extended period, unless thesociety has completed its organization and received a certificate ofauthority to do business in Indiana.
As added by P.L.262-1985, SEC.1.
IC 27-11-4-5
Solicitation of members; liabilities incurred upon receipt ofpreliminary certificate
Sec. 5. Upon receipt of a preliminary certificate of authority fromthe commissioner, the society may solicit members for the purposeof completing its organization, shall collect from each applicant theamount of not less than one (1) regular monthly premium inaccordance with its table of rates, and shall issue to each applicant areceipt for the amount collected. No society shall incur any liabilityother than for the return of the advance premium, nor issue anycertificate, nor pay, allow, or offer or promise to pay or allow anybenefit to any person until:
(1) actual bona fide applications for benefits have been securedon not less than five hundred (500) applicants, and anynecessary evidence of insurability has been furnished to andapproved by the society;
(2) at least ten (10) subordinate lodges have been establishedinto which the five hundred (500) applicants have beenadmitted;
(3) there has been submitted to the commissioner, under oath ofthe president or secretary, or corresponding officer of thesociety, a list of the applicants, giving their names, addresses,date each was admitted, name and number of the subordinatelodge of which each applicant is a member, amount of benefitsto be granted, and premiums therefor; and
(4) it shall have been shown to the commissioner, by swornstatement of the treasurer, or corresponding officer of suchsociety, that at least five hundred (500) applicants have eachpaid in cash at least one (1) regular monthly premium, which
premiums in the aggregate amount to at least one hundred fiftythousand dollars ($150,000). The advance premiums shall beheld in trust during the period of organization and, if the societyhas not qualified for a certificate of authority within one (1)year as provided in this chapter, the premiums shall be returnedto the applicants.
As added by P.L.262-1985, SEC.1.
IC 27-11-4-6
Certificate of authority
Sec. 6. The commissioner may make an examination and requireany further information as the commissioner considers advisable.Upon presentation of satisfactory evidence that the society hascomplied with all the provisions of law, the commissioner shall issueto the society a certificate of authority authorizing the society totransact business under this article. The certificate of authority isprima facie evidence of the existence of the society at the date of thecertificate. The commissioner shall cause a record of the certificateof authority to be made. A certified copy of the record may be givenin evidence with like effect as the original certificate of authority.
As added by P.L.262-1985, SEC.1.