40-749.Benefit contracts; certificate to be issued to owners;statements on application representations; effect of amendments tosociety's laws; contracts on lives of minors; impairment of reserves;copies of documents to be received as evidence; certificates to be filedwith commissioner; standard contract provision requirements; transfer ofcontract to minor on attaining minimum age; assignment of contracts.(a) Every society authorized to do business in this stateshall issue to each owner of a benefit contract a certificate specifyingthe amount of benefits provided thereby. The certificate, together withany riders or endorsements attached thereto, the laws of the society, theapplication for membership, the application for insurance and declarationof insurability, if any, signed by the applicant, and all amendmentsthereof, shall constitute the benefit contract, as of the date of issuance,between the society and the owner, and the certificate shall so state. Acopy of the application for insurance and declaration of insurability, ifany, shall be endorsed upon or attached to the certificate. All statementson the application shall be representations and not warranties. Any waiverof this provision shall be void.
(b) Any changes, additions or amendments to the laws of the society dulymade or enacted subsequent to the issuance of the certificate shall bindthe owner and the beneficiaries and shall govern and control the benefitcontract in all respects the same as though such changes, additions oramendments had been made prior to and were in force at the time of theapplication for insurance, except that no change, addition or amendmentshall destroy or diminish benefits which the society contracted to give theowner as of the date of issuance, except that the consent of a parent,guardian or conservator shall not be required for an application for insurance by a minor.
(c) Any person upon whose life a benefit contract is issuedprior to attaining the age of majority shall be bound by the terms of theapplication and certificate and by all the laws and rules of the society tothe same extent as though the age of majority had been attained at the timeof application and be subject to requirements as provided in K.S.A. 40-237,and amendments thereto.
(d) A society shall provide in its laws that if its reserves as to allor any class of certificates become impaired, its board of directors orcorresponding body may require that there shall be paid by the owner to thesociety the amount of the owner's equitable proportion of such deficiencyas ascertained by its board, and that if the payment is not made either (1)it shall stand as an indebtedness against the certificate and draw interestnot to exceed the rate specified for certificate loans under thecertificates; or (2) in lieu of, or in combination with (1), the owner mayaccept a proportionate reduction in benefits under the certificate. Thesociety may specify the manner of the election and which alternative is tobe presumed if no election is made.
(e) Copies of any of the documents mentioned in this section, certifiedby the secretary or corresponding officer of the society, shall be receivedin evidence of the terms and conditions thereof.
(f) No certificate shall be delivered or issued for delivery in thisstate unless a copy of the form has been filed with the commissioner ofinsurance in the manner provided for like policies issued by life insurersin this state. Every life, accident, health or disability insurancecertificate and every annuity certificate issued on or after one year fromthe effective date of this act shall meet the standard contract provisionrequirements not inconsistent with this act for like policies issued bylife insurers in this state, except that a society may provide for a graceperiod for payment of premiums of one full month in its certificates. Thecertificate shall also contain a provision stating the amount of premiumswhich are payable under the certificate and a provision reciting or settingforth the substance of any sections of the society's laws or rules in forceat the time of issuance of the certificate which, if violated, will resultin the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member,the certificate shall also contain a provision that any member so expelledor suspended, except for nonpayment of a premium or within the contestableperiod for material misrepresentation in the application for membership orinsurance, shall have the privilege of maintaining the certificate in forceby continuing payment of the required premium.
(g) Benefit contracts issued on the lives of persons below the society'sminimum age for adult membership may provide for transfer of control ofownership to the insured at an age specified in the certificate. A societymay require approval of an application for membership in order to effectthis transfer, and may provide in all other respects for the regulation,government and control of such certificates and all rights, obligations andliabilities incident thereto and connected therewith. Ownership rightsprior to such transfer shall be specified in the certificate.
(h) A society may specify the terms and conditions on which benefitcontracts may be assigned.
40-749.Benefit contracts; certificate to be issued to owners;statements on application representations; effect of amendments tosociety's laws; contracts on lives of minors; impairment of reserves;copies of documents to be received as evidence; certificates to be filedwith commissioner; standard contract provision requirements; transfer ofcontract to minor on attaining minimum age; assignment of contracts.(a) Every society authorized to do business in this stateshall issue to each owner of a benefit contract a certificate specifyingthe amount of benefits provided thereby. The certificate, together withany riders or endorsements attached thereto, the laws of the society, theapplication for membership, the application for insurance and declarationof insurability, if any, signed by the applicant, and all amendmentsthereof, shall constitute the benefit contract, as of the date of issuance,between the society and the owner, and the certificate shall so state. Acopy of the application for insurance and declaration of insurability, ifany, shall be endorsed upon or attached to the certificate. All statementson the application shall be representations and not warranties. Any waiverof this provision shall be void.
(b) Any changes, additions or amendments to the laws of the society dulymade or enacted subsequent to the issuance of the certificate shall bindthe owner and the beneficiaries and shall govern and control the benefitcontract in all respects the same as though such changes, additions oramendments had been made prior to and were in force at the time of theapplication for insurance, except that no change, addition or amendmentshall destroy or diminish benefits which the society contracted to give theowner as of the date of issuance, except that the consent of a parent,guardian or conservator shall not be required for an application for insurance by a minor.
(c) Any person upon whose life a benefit contract is issuedprior to attaining the age of majority shall be bound by the terms of theapplication and certificate and by all the laws and rules of the society tothe same extent as though the age of majority had been attained at the timeof application and be subject to requirements as provided in K.S.A. 40-237,and amendments thereto.
(d) A society shall provide in its laws that if its reserves as to allor any class of certificates become impaired, its board of directors orcorresponding body may require that there shall be paid by the owner to thesociety the amount of the owner's equitable proportion of such deficiencyas ascertained by its board, and that if the payment is not made either (1)it shall stand as an indebtedness against the certificate and draw interestnot to exceed the rate specified for certificate loans under thecertificates; or (2) in lieu of, or in combination with (1), the owner mayaccept a proportionate reduction in benefits under the certificate. Thesociety may specify the manner of the election and which alternative is tobe presumed if no election is made.
(e) Copies of any of the documents mentioned in this section, certifiedby the secretary or corresponding officer of the society, shall be receivedin evidence of the terms and conditions thereof.
(f) No certificate shall be delivered or issued for delivery in thisstate unless a copy of the form has been filed with the commissioner ofinsurance in the manner provided for like policies issued by life insurersin this state. Every life, accident, health or disability insurancecertificate and every annuity certificate issued on or after one year fromthe effective date of this act shall meet the standard contract provisionrequirements not inconsistent with this act for like policies issued bylife insurers in this state, except that a society may provide for a graceperiod for payment of premiums of one full month in its certificates. Thecertificate shall also contain a provision stating the amount of premiumswhich are payable under the certificate and a provision reciting or settingforth the substance of any sections of the society's laws or rules in forceat the time of issuance of the certificate which, if violated, will resultin the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member,the certificate shall also contain a provision that any member so expelledor suspended, except for nonpayment of a premium or within the contestableperiod for material misrepresentation in the application for membership orinsurance, shall have the privilege of maintaining the certificate in forceby continuing payment of the required premium.
(g) Benefit contracts issued on the lives of persons below the society'sminimum age for adult membership may provide for transfer of control ofownership to the insured at an age specified in the certificate. A societymay require approval of an application for membership in order to effectthis transfer, and may provide in all other respects for the regulation,government and control of such certificates and all rights, obligations andliabilities incident thereto and connected therewith. Ownership rightsprior to such transfer shall be specified in the certificate.
(h) A society may specify the terms and conditions on which benefitcontracts may be assigned.
40-749.Benefit contracts; certificate to be issued to owners;statements on application representations; effect of amendments tosociety's laws; contracts on lives of minors; impairment of reserves;copies of documents to be received as evidence; certificates to be filedwith commissioner; standard contract provision requirements; transfer ofcontract to minor on attaining minimum age; assignment of contracts.(a) Every society authorized to do business in this stateshall issue to each owner of a benefit contract a certificate specifyingthe amount of benefits provided thereby. The certificate, together withany riders or endorsements attached thereto, the laws of the society, theapplication for membership, the application for insurance and declarationof insurability, if any, signed by the applicant, and all amendmentsthereof, shall constitute the benefit contract, as of the date of issuance,between the society and the owner, and the certificate shall so state. Acopy of the application for insurance and declaration of insurability, ifany, shall be endorsed upon or attached to the certificate. All statementson the application shall be representations and not warranties. Any waiverof this provision shall be void.
(b) Any changes, additions or amendments to the laws of the society dulymade or enacted subsequent to the issuance of the certificate shall bindthe owner and the beneficiaries and shall govern and control the benefitcontract in all respects the same as though such changes, additions oramendments had been made prior to and were in force at the time of theapplication for insurance, except that no change, addition or amendmentshall destroy or diminish benefits which the society contracted to give theowner as of the date of issuance, except that the consent of a parent,guardian or conservator shall not be required for an application for insurance by a minor.
(c) Any person upon whose life a benefit contract is issuedprior to attaining the age of majority shall be bound by the terms of theapplication and certificate and by all the laws and rules of the society tothe same extent as though the age of majority had been attained at the timeof application and be subject to requirements as provided in K.S.A. 40-237,and amendments thereto.
(d) A society shall provide in its laws that if its reserves as to allor any class of certificates become impaired, its board of directors orcorresponding body may require that there shall be paid by the owner to thesociety the amount of the owner's equitable proportion of such deficiencyas ascertained by its board, and that if the payment is not made either (1)it shall stand as an indebtedness against the certificate and draw interestnot to exceed the rate specified for certificate loans under thecertificates; or (2) in lieu of, or in combination with (1), the owner mayaccept a proportionate reduction in benefits under the certificate. Thesociety may specify the manner of the election and which alternative is tobe presumed if no election is made.
(e) Copies of any of the documents mentioned in this section, certifiedby the secretary or corresponding officer of the society, shall be receivedin evidence of the terms and conditions thereof.
(f) No certificate shall be delivered or issued for delivery in thisstate unless a copy of the form has been filed with the commissioner ofinsurance in the manner provided for like policies issued by life insurersin this state. Every life, accident, health or disability insurancecertificate and every annuity certificate issued on or after one year fromthe effective date of this act shall meet the standard contract provisionrequirements not inconsistent with this act for like policies issued bylife insurers in this state, except that a society may provide for a graceperiod for payment of premiums of one full month in its certificates. Thecertificate shall also contain a provision stating the amount of premiumswhich are payable under the certificate and a provision reciting or settingforth the substance of any sections of the society's laws or rules in forceat the time of issuance of the certificate which, if violated, will resultin the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member,the certificate shall also contain a provision that any member so expelledor suspended, except for nonpayment of a premium or within the contestableperiod for material misrepresentation in the application for membership orinsurance, shall have the privilege of maintaining the certificate in forceby continuing payment of the required premium.
(g) Benefit contracts issued on the lives of persons below the society'sminimum age for adult membership may provide for transfer of control ofownership to the insured at an age specified in the certificate. A societymay require approval of an application for membership in order to effectthis transfer, and may provide in all other respects for the regulation,government and control of such certificates and all rights, obligations andliabilities incident thereto and connected therewith. Ownership rightsprior to such transfer shall be specified in the certificate.
(h) A society may specify the terms and conditions on which benefitcontracts may be assigned.
