40-770.Same; submission of proposal to supreme legislative body;notice to be furnished members and policyholders; meeting of subordinatelodges or branches on proposal; election of delegates to supremelegislative body; approval of plan by commissioner; options for members orpolicyholders upon conversion.A proposal to make a conversion may be submitted to either aregular or a special meeting of the supreme legislative body of any suchfraternal benefit society by action of either the supreme legislative bodyor by the directors of such society. At least 40 days prior to the meetingof the supreme legislative body which is to consider such proposedconversion, there shall be mailed to each member or policyholder of thesociety, to the post office address shown by the records of the society,and to each subordinate lodge or branch of the society a written or printednotice of such proposed conversion. Such notice shall be given eitherpersonally or by mail to each member or policyholder entitled to vote. Ifmailed, such notice shall be deemed to be delivered when deposited in theUnited States mail at the address as it appears on the records of thecompany. Such notice, whether the meeting is annual, periodic or special,shall state the place, day, hour and purpose of the meeting, and a copy ofthe plan for such proposed conversion shall be included in or enclosed withsuch notice. Within 30 days after the delivery of such notice, eachsubordinate lodge or branch shall in regular or called meeting vote uponthe proposal and may give instructions to its representative or delegate tosuch forthcoming meeting of either district or the supreme legislativebody as provided by laws of such society. If any such subordinate lodge,branch or district shall fail to elect delegates to such supreme meeting,any vacancy thus occurring shall be filled as provided by the laws of suchsociety. At such meeting of the supreme governing body of such society, inaddition to the duly accredited delegates, any member of such society mayattend and be heard on the subject of the proposed conversion. No suchsociety shall convert itself into a mutual or stock life insurance companyexcept upon such terms and conditions as in the opinion of the commissionerof insurance shall fully protect the rights and interests of its membersand policyholders, and the plan of such proposed conversion shall besubmitted to and approved by the commissioner before it is submitted to themembers or policyholders and the subordinate lodges or branches ashereinbefore provided. Any plan for converting any fraternal benefitsociety into a stock company under the provisions hereof shall offer toeach member or policyholder the following three options:
First: Any member not desiring to participate in the new organizationshall be entitled to surrender their policy or certificate and receivethereon its net cash surrender value plus their share of the divisible freesurplus, such share being determined by dividing the amount of suchdivisible free surplus by the proportion that such member's cash valuebears to total cash values of all policies and certificates in force, suchvalues being computed as of the end of the year preceding the date of conversion.
Second: Any member desiring to do so may permit their policy orcertificate to be taken over by the new organization without surrenderingany rights or being subject to any additional payments or penalties otherthan those called for in their contract.
Third: Each member or policyholder in the new organization mayretain their insurance as provided in the second option, and in addition,shall be entitled to purchase their proportionate share of the capitalstock in the new company, as hereinafter set forth.
Each of these options shall be submitted to the members at the same time.In the event of the failure of any member or policyholder to elect any ofsuch options within 90 days as specified within the plan, such member shallbe deemed to have elected the second of such options.
40-770.Same; submission of proposal to supreme legislative body;notice to be furnished members and policyholders; meeting of subordinatelodges or branches on proposal; election of delegates to supremelegislative body; approval of plan by commissioner; options for members orpolicyholders upon conversion.A proposal to make a conversion may be submitted to either aregular or a special meeting of the supreme legislative body of any suchfraternal benefit society by action of either the supreme legislative bodyor by the directors of such society. At least 40 days prior to the meetingof the supreme legislative body which is to consider such proposedconversion, there shall be mailed to each member or policyholder of thesociety, to the post office address shown by the records of the society,and to each subordinate lodge or branch of the society a written or printednotice of such proposed conversion. Such notice shall be given eitherpersonally or by mail to each member or policyholder entitled to vote. Ifmailed, such notice shall be deemed to be delivered when deposited in theUnited States mail at the address as it appears on the records of thecompany. Such notice, whether the meeting is annual, periodic or special,shall state the place, day, hour and purpose of the meeting, and a copy ofthe plan for such proposed conversion shall be included in or enclosed withsuch notice. Within 30 days after the delivery of such notice, eachsubordinate lodge or branch shall in regular or called meeting vote uponthe proposal and may give instructions to its representative or delegate tosuch forthcoming meeting of either district or the supreme legislativebody as provided by laws of such society. If any such subordinate lodge,branch or district shall fail to elect delegates to such supreme meeting,any vacancy thus occurring shall be filled as provided by the laws of suchsociety. At such meeting of the supreme governing body of such society, inaddition to the duly accredited delegates, any member of such society mayattend and be heard on the subject of the proposed conversion. No suchsociety shall convert itself into a mutual or stock life insurance companyexcept upon such terms and conditions as in the opinion of the commissionerof insurance shall fully protect the rights and interests of its membersand policyholders, and the plan of such proposed conversion shall besubmitted to and approved by the commissioner before it is submitted to themembers or policyholders and the subordinate lodges or branches ashereinbefore provided. Any plan for converting any fraternal benefitsociety into a stock company under the provisions hereof shall offer toeach member or policyholder the following three options:
First: Any member not desiring to participate in the new organizationshall be entitled to surrender their policy or certificate and receivethereon its net cash surrender value plus their share of the divisible freesurplus, such share being determined by dividing the amount of suchdivisible free surplus by the proportion that such member's cash valuebears to total cash values of all policies and certificates in force, suchvalues being computed as of the end of the year preceding the date of conversion.
Second: Any member desiring to do so may permit their policy orcertificate to be taken over by the new organization without surrenderingany rights or being subject to any additional payments or penalties otherthan those called for in their contract.
Third: Each member or policyholder in the new organization mayretain their insurance as provided in the second option, and in addition,shall be entitled to purchase their proportionate share of the capitalstock in the new company, as hereinafter set forth.
Each of these options shall be submitted to the members at the same time.In the event of the failure of any member or policyholder to elect any ofsuch options within 90 days as specified within the plan, such member shallbe deemed to have elected the second of such options.
40-770.Same; submission of proposal to supreme legislative body;notice to be furnished members and policyholders; meeting of subordinatelodges or branches on proposal; election of delegates to supremelegislative body; approval of plan by commissioner; options for members orpolicyholders upon conversion.A proposal to make a conversion may be submitted to either aregular or a special meeting of the supreme legislative body of any suchfraternal benefit society by action of either the supreme legislative bodyor by the directors of such society. At least 40 days prior to the meetingof the supreme legislative body which is to consider such proposedconversion, there shall be mailed to each member or policyholder of thesociety, to the post office address shown by the records of the society,and to each subordinate lodge or branch of the society a written or printednotice of such proposed conversion. Such notice shall be given eitherpersonally or by mail to each member or policyholder entitled to vote. Ifmailed, such notice shall be deemed to be delivered when deposited in theUnited States mail at the address as it appears on the records of thecompany. Such notice, whether the meeting is annual, periodic or special,shall state the place, day, hour and purpose of the meeting, and a copy ofthe plan for such proposed conversion shall be included in or enclosed withsuch notice. Within 30 days after the delivery of such notice, eachsubordinate lodge or branch shall in regular or called meeting vote uponthe proposal and may give instructions to its representative or delegate tosuch forthcoming meeting of either district or the supreme legislativebody as provided by laws of such society. If any such subordinate lodge,branch or district shall fail to elect delegates to such supreme meeting,any vacancy thus occurring shall be filled as provided by the laws of suchsociety. At such meeting of the supreme governing body of such society, inaddition to the duly accredited delegates, any member of such society mayattend and be heard on the subject of the proposed conversion. No suchsociety shall convert itself into a mutual or stock life insurance companyexcept upon such terms and conditions as in the opinion of the commissionerof insurance shall fully protect the rights and interests of its membersand policyholders, and the plan of such proposed conversion shall besubmitted to and approved by the commissioner before it is submitted to themembers or policyholders and the subordinate lodges or branches ashereinbefore provided. Any plan for converting any fraternal benefitsociety into a stock company under the provisions hereof shall offer toeach member or policyholder the following three options:
First: Any member not desiring to participate in the new organizationshall be entitled to surrender their policy or certificate and receivethereon its net cash surrender value plus their share of the divisible freesurplus, such share being determined by dividing the amount of suchdivisible free surplus by the proportion that such member's cash valuebears to total cash values of all policies and certificates in force, suchvalues being computed as of the end of the year preceding the date of conversion.
Second: Any member desiring to do so may permit their policy orcertificate to be taken over by the new organization without surrenderingany rights or being subject to any additional payments or penalties otherthan those called for in their contract.
Third: Each member or policyholder in the new organization mayretain their insurance as provided in the second option, and in addition,shall be entitled to purchase their proportionate share of the capitalstock in the new company, as hereinafter set forth.
Each of these options shall be submitted to the members at the same time.In the event of the failure of any member or policyholder to elect any ofsuch options within 90 days as specified within the plan, such member shallbe deemed to have elected the second of such options.
