40-764.Formation requirements; incorporators; articles ofincorporation; documents to be filed with commissioner; bond; preliminarycertificate of authority, expiration; solicitation of members upon receiptof preliminary certificate; conditions precedent to incurring liabilitiesor paying benefits; issuance of certificate of authority; societiesincorporated on act's effective date not required to reincorporate.A domestic society organized on or after the effective date ofthis act shall be formed as follows:
(a) Seven or more citizens of the United States, a majority of whom arecitizens of this state, who desire to form a fraternal benefit society, maymake, sign and acknowledge before some officer competent to takeacknowledgment of deeds, articles of incorporation in which shall be stated:
(1) The proposed corporate name of the society, which shall not soclosely resemble 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 in which itscorporate powers are to be exercised. Such purposes shall not include moreliberal powers than are granted by this act;
(3) the names and residences of the incorporators and the names,residences and official titles of all the officers, trustees, directors orother persons who are to have and exercise the general control of themanagement of the affairs and funds of the society for the first year oruntil the ensuing election at which all such officers shall be elected bythe supreme governing body, which election shall be held not later than oneyear from the date of issuance of the permanent certificate of authority.
(b) Such articles of incorporation, duly certified copies of thesociety's bylaws and rules, copies of all proposed forms of certificates,applications therefor, and circulars to be issued by the society and a bondconditioned upon the return to applicants of the advanced payments if theorganization is not completed within one year shall be filed with thecommissioner of insurance, who may require such further information asdeemed necessary. The bond, with sureties approved by the commissioner ofinsurance, shall be in such amount, not less than $300,000 nor more than$1,500,000, as required by the commissioner of insurance. All documentsfiled shall be in the English language. If the purposes of the societyconform to the requirements of this act and all provisions of the law havebeen complied with, the commissioner of insurance shall so certify, retainand file the articles of incorporation and furnish the incorporators apreliminary certificate of authority authorizing the society to solicitmembers as hereinafter provided.
(c) No preliminary certificate of authority granted under the provisionsof this section shall be valid after one year from its date or after suchfurther period, not exceeding one year, as may be authorized by thecommissioner of insurance upon cause shown, unless the 500 applicantshereinafter required have been secured and the organization has beencompleted as herein provided. The articles of incorporation and all otherproceedings thereunder shall become null and void in one year from the dateof the preliminary certificate of authority, or at the expiration of theextended period, unless the society shall have completed its organizationand received a certificate of authority to do business as hereinafter provided.
(d) Upon receipt of a preliminary certificate of authority from thecommissioner of insurance, the society may solicit members for the purposeof completing its organization, shall collect from each applicant theamount of not less than one regular monthly premium in accordance with itstable of rates, and shall issue to each such applicant a receipt for theamount so collected. No society shall incur any liability other than forthe return of such advance premium, nor issue any certificate, nor pay,allow, or offer or promise to pay or allow, any benefit to any person until:
(1) Actual bona fide applications for benefits shall have been securedon not less than 500 applicants, and any necessary evidence of insurabilityhas been furnished to and approved by the society;
(2) at least 10 subordinate lodges have been established into which the500 applicants have been admitted;
(3) there has been submitted to the commissioner of insurance, underoath of the president or secretary, or corresponding officer of thesociety, a list of such applicants, giving their names, addresses, dateeach was admitted, name and number of the subordinate lodge of which eachapplicant is a member, amount of benefits to be granted and premiums therefor; and
(4) it shall have been shown to the commissioner of insurance, by swornstatement of the treasurer, or corresponding officer of such society, thatat least 500 applicants have paid in cash premiums which in the aggregateamount to at least $150,000. Such advance premiums shall be held in trustduring the period of organization. If the society has not qualified for acertificate of authority within one year as herein provided, such premiumsshall be returned to the applicants.
(e) The commissioner of insurance may make such examination and requiresuch further information as the commissioner deems advisable. Uponpresentation of satisfactory evidence that the society has complied withall the provisions of law, the commissioner shall issue to the society acertificate of authority to that effect and that the society is authorizedto transact business pursuant to the provisions of this act. Thecertificate of authority shall be prima facie evidence of the existence ofthe society at the date of such certificate. The commissioner of insuranceshall cause a record of such certificate of authority to be made. Acertified copy of such record may be given in evidence with like effect asthe original certificate of authority.
(f) Any incorporated society authorized to transact business in thisstate at the time this act becomes effective shall not be required to reincorporate.
40-764.Formation requirements; incorporators; articles ofincorporation; documents to be filed with commissioner; bond; preliminarycertificate of authority, expiration; solicitation of members upon receiptof preliminary certificate; conditions precedent to incurring liabilitiesor paying benefits; issuance of certificate of authority; societiesincorporated on act's effective date not required to reincorporate.A domestic society organized on or after the effective date ofthis act shall be formed as follows:
(a) Seven or more citizens of the United States, a majority of whom arecitizens of this state, who desire to form a fraternal benefit society, maymake, sign and acknowledge before some officer competent to takeacknowledgment of deeds, articles of incorporation in which shall be stated:
(1) The proposed corporate name of the society, which shall not soclosely resemble 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 in which itscorporate powers are to be exercised. Such purposes shall not include moreliberal powers than are granted by this act;
(3) the names and residences of the incorporators and the names,residences and official titles of all the officers, trustees, directors orother persons who are to have and exercise the general control of themanagement of the affairs and funds of the society for the first year oruntil the ensuing election at which all such officers shall be elected bythe supreme governing body, which election shall be held not later than oneyear from the date of issuance of the permanent certificate of authority.
(b) Such articles of incorporation, duly certified copies of thesociety's bylaws and rules, copies of all proposed forms of certificates,applications therefor, and circulars to be issued by the society and a bondconditioned upon the return to applicants of the advanced payments if theorganization is not completed within one year shall be filed with thecommissioner of insurance, who may require such further information asdeemed necessary. The bond, with sureties approved by the commissioner ofinsurance, shall be in such amount, not less than $300,000 nor more than$1,500,000, as required by the commissioner of insurance. All documentsfiled shall be in the English language. If the purposes of the societyconform to the requirements of this act and all provisions of the law havebeen complied with, the commissioner of insurance shall so certify, retainand file the articles of incorporation and furnish the incorporators apreliminary certificate of authority authorizing the society to solicitmembers as hereinafter provided.
(c) No preliminary certificate of authority granted under the provisionsof this section shall be valid after one year from its date or after suchfurther period, not exceeding one year, as may be authorized by thecommissioner of insurance upon cause shown, unless the 500 applicantshereinafter required have been secured and the organization has beencompleted as herein provided. The articles of incorporation and all otherproceedings thereunder shall become null and void in one year from the dateof the preliminary certificate of authority, or at the expiration of theextended period, unless the society shall have completed its organizationand received a certificate of authority to do business as hereinafter provided.
(d) Upon receipt of a preliminary certificate of authority from thecommissioner of insurance, the society may solicit members for the purposeof completing its organization, shall collect from each applicant theamount of not less than one regular monthly premium in accordance with itstable of rates, and shall issue to each such applicant a receipt for theamount so collected. No society shall incur any liability other than forthe return of such advance premium, nor issue any certificate, nor pay,allow, or offer or promise to pay or allow, any benefit to any person until:
(1) Actual bona fide applications for benefits shall have been securedon not less than 500 applicants, and any necessary evidence of insurabilityhas been furnished to and approved by the society;
(2) at least 10 subordinate lodges have been established into which the500 applicants have been admitted;
(3) there has been submitted to the commissioner of insurance, underoath of the president or secretary, or corresponding officer of thesociety, a list of such applicants, giving their names, addresses, dateeach was admitted, name and number of the subordinate lodge of which eachapplicant is a member, amount of benefits to be granted and premiums therefor; and
(4) it shall have been shown to the commissioner of insurance, by swornstatement of the treasurer, or corresponding officer of such society, thatat least 500 applicants have paid in cash premiums which in the aggregateamount to at least $150,000. Such advance premiums shall be held in trustduring the period of organization. If the society has not qualified for acertificate of authority within one year as herein provided, such premiumsshall be returned to the applicants.
(e) The commissioner of insurance may make such examination and requiresuch further information as the commissioner deems advisable. Uponpresentation of satisfactory evidence that the society has complied withall the provisions of law, the commissioner shall issue to the society acertificate of authority to that effect and that the society is authorizedto transact business pursuant to the provisions of this act. Thecertificate of authority shall be prima facie evidence of the existence ofthe society at the date of such certificate. The commissioner of insuranceshall cause a record of such certificate of authority to be made. Acertified copy of such record may be given in evidence with like effect asthe original certificate of authority.
(f) Any incorporated society authorized to transact business in thisstate at the time this act becomes effective shall not be required to reincorporate.
40-764.Formation requirements; incorporators; articles ofincorporation; documents to be filed with commissioner; bond; preliminarycertificate of authority, expiration; solicitation of members upon receiptof preliminary certificate; conditions precedent to incurring liabilitiesor paying benefits; issuance of certificate of authority; societiesincorporated on act's effective date not required to reincorporate.A domestic society organized on or after the effective date ofthis act shall be formed as follows:
(a) Seven or more citizens of the United States, a majority of whom arecitizens of this state, who desire to form a fraternal benefit society, maymake, sign and acknowledge before some officer competent to takeacknowledgment of deeds, articles of incorporation in which shall be stated:
(1) The proposed corporate name of the society, which shall not soclosely resemble 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 in which itscorporate powers are to be exercised. Such purposes shall not include moreliberal powers than are granted by this act;
(3) the names and residences of the incorporators and the names,residences and official titles of all the officers, trustees, directors orother persons who are to have and exercise the general control of themanagement of the affairs and funds of the society for the first year oruntil the ensuing election at which all such officers shall be elected bythe supreme governing body, which election shall be held not later than oneyear from the date of issuance of the permanent certificate of authority.
(b) Such articles of incorporation, duly certified copies of thesociety's bylaws and rules, copies of all proposed forms of certificates,applications therefor, and circulars to be issued by the society and a bondconditioned upon the return to applicants of the advanced payments if theorganization is not completed within one year shall be filed with thecommissioner of insurance, who may require such further information asdeemed necessary. The bond, with sureties approved by the commissioner ofinsurance, shall be in such amount, not less than $300,000 nor more than$1,500,000, as required by the commissioner of insurance. All documentsfiled shall be in the English language. If the purposes of the societyconform to the requirements of this act and all provisions of the law havebeen complied with, the commissioner of insurance shall so certify, retainand file the articles of incorporation and furnish the incorporators apreliminary certificate of authority authorizing the society to solicitmembers as hereinafter provided.
(c) No preliminary certificate of authority granted under the provisionsof this section shall be valid after one year from its date or after suchfurther period, not exceeding one year, as may be authorized by thecommissioner of insurance upon cause shown, unless the 500 applicantshereinafter required have been secured and the organization has beencompleted as herein provided. The articles of incorporation and all otherproceedings thereunder shall become null and void in one year from the dateof the preliminary certificate of authority, or at the expiration of theextended period, unless the society shall have completed its organizationand received a certificate of authority to do business as hereinafter provided.
(d) Upon receipt of a preliminary certificate of authority from thecommissioner of insurance, the society may solicit members for the purposeof completing its organization, shall collect from each applicant theamount of not less than one regular monthly premium in accordance with itstable of rates, and shall issue to each such applicant a receipt for theamount so collected. No society shall incur any liability other than forthe return of such advance premium, nor issue any certificate, nor pay,allow, or offer or promise to pay or allow, any benefit to any person until:
(1) Actual bona fide applications for benefits shall have been securedon not less than 500 applicants, and any necessary evidence of insurabilityhas been furnished to and approved by the society;
(2) at least 10 subordinate lodges have been established into which the500 applicants have been admitted;
(3) there has been submitted to the commissioner of insurance, underoath of the president or secretary, or corresponding officer of thesociety, a list of such applicants, giving their names, addresses, dateeach was admitted, name and number of the subordinate lodge of which eachapplicant is a member, amount of benefits to be granted and premiums therefor; and
(4) it shall have been shown to the commissioner of insurance, by swornstatement of the treasurer, or corresponding officer of such society, thatat least 500 applicants have paid in cash premiums which in the aggregateamount to at least $150,000. Such advance premiums shall be held in trustduring the period of organization. If the society has not qualified for acertificate of authority within one year as herein provided, such premiumsshall be returned to the applicants.
(e) The commissioner of insurance may make such examination and requiresuch further information as the commissioner deems advisable. Uponpresentation of satisfactory evidence that the society has complied withall the provisions of law, the commissioner shall issue to the society acertificate of authority to that effect and that the society is authorizedto transact business pursuant to the provisions of this act. Thecertificate of authority shall be prima facie evidence of the existence ofthe society at the date of such certificate. The commissioner of insuranceshall cause a record of such certificate of authority to be made. Acertified copy of such record may be given in evidence with like effect asthe original certificate of authority.
(f) Any incorporated society authorized to transact business in thisstate at the time this act becomes effective shall not be required to reincorporate.
