§ 38.2-4115. Conversion of fraternal benefit society into mutual life insurer.
A. Any domestic fraternal benefit society organized or operated under thischapter may, upon a two-thirds vote of its supreme governing body, amend itsarticles of incorporation and laws if already incorporated, or, if notincorporated, may incorporate, in a manner to transform itself into a mutuallife insurer. It may use the name by which it is already known, or anothername, as its supreme governing body shall determine. However, the proposedplan for reorganization or reincorporation shall be submitted to and approvedby the Commission. Upon so doing, and upon procuring from the Commission alicense to do the business of insurance in this Commonwealth as a mutual lifeinsurer, it shall incur the obligations and enjoy the benefits of a mutuallife insurer as if originally incorporated as a mutual life insurer. Anysuch corporation under its articles and bylaws as so framed or amended shallbe a continuation of the original organization, and the officers of theorganization shall serve through their respective terms as provided in theoriginal articles and laws. However, their successors shall be elected andserve as the laws of this Commonwealth and the articles of incorporation orbylaws of the reorganized company provide. The incorporation, amendment orreincorporation shall not affect existing suits, rights or contracts. Theorganization, after reorganization, shall have the power to do business ofthe same nature done by it before reorganization, as well as the powersconferred in this section and contemplated by its articles of incorporation,in order to protect and perform rights and contracts existing beforereorganization, but all new business written shall be as a mutual lifeinsurer.
B. All assets, other than general or expense fund assets, belonging to anyreorganized insurer, prior to reorganization or arising or accruing frombenefit certificates issued prior to the reorganization, shall be used onlyfor the benefit of the holders of the benefit certificates or theirbeneficiaries.
C. If at the time of reorganization, or at any time after reorganization, itappears from the last preceding annual report of any such organization, filedwith the Commission, or any investigation made by the Commission, that thepresent value of the contributions to be received from the holders of thebenefit certificates, together with all assets, other than general or expensefund assets, owned by the insurer that have been accumulated from paymentsmade by members holding such certificates, are not equal to the present valueof the benefits promised to be paid, including all matured liabilities on anybenefit certificates, then the insurer so reorganized shall establish,provide for, and maintain a fund, which with the present value ofcontributions and assets will equal the present value of the benefits,together with all matured liabilities. The fund shall be used for thepayment of matured liabilities arising on the benefit certificates when otherassets applicable thereto are exhausted. The fund need not be maintainedunless required by conditions expressed in this chapter.
D. Members in good standing in any society prior to reorganization shall havethe right after reorganization to transfer their insurance in the society tothe mutual life plan without further medical examination for the same orlesser amount, and at legal reserve or level premium rates. The interest inthe assets of the society of any person so transferring, as determined by theboard of directors, trustees or corresponding body, shall be transferred to,and be a part of, the assets of the insurer on the legal reserve or levelpremium plan.
E. The insurer so organized, and its officials, shall exercise all the rightsand powers and perform all the duties conferred or imposed by law uponorganizations writing the kinds of insurance written by the insurer soorganized. The organization and its officials shall exercise all the rightsand powers and have full authority to perform all the duties necessary toprotect rights and contracts existing prior to reorganization. TheCommission shall exercise the powers and discharge the duties concerning anysuch insurer so reorganized that are applicable to insurers writing insuranceor issuing policies of the same class, organized or operating in thisCommonwealth. The Commission shall issue a certificate of authority to anysolvent insurer so reorganized that has fully complied with the laws of thisCommonwealth to do such insurance business in this Commonwealth.
F. Any fraternal benefit society reorganized to do mutual life insurancebusiness as provided in this chapter shall value its benefit certificatesaccording to the standard of valuation for fraternal benefit societies usedin this Commonwealth, and its legal reserve or level premium policiesaccording to the standard of valuation for those policies in thisCommonwealth. The various classes of insurance shall be governed by the lawapplicable to each class of insurance.
G. The expense of operation and maintenance of a reorganized insurer shall beapportioned between those holding benefit certificates issued before thereorganization and those holding policies issued after the reorganization asmay be determined by the board of directors, trustees or corresponding body.
(Code 1950, §§ 38-323 through 38-329, 38.1-632 through 38.1-638; 1952, c.317, §§ 38.1-638.53 through 38.1-638.59; 1968, c. 654; 1986, c. 562.)
§ 38.2-4115. Conversion of fraternal benefit society into mutual life insurer.
A. Any domestic fraternal benefit society organized or operated under thischapter may, upon a two-thirds vote of its supreme governing body, amend itsarticles of incorporation and laws if already incorporated, or, if notincorporated, may incorporate, in a manner to transform itself into a mutuallife insurer. It may use the name by which it is already known, or anothername, as its supreme governing body shall determine. However, the proposedplan for reorganization or reincorporation shall be submitted to and approvedby the Commission. Upon so doing, and upon procuring from the Commission alicense to do the business of insurance in this Commonwealth as a mutual lifeinsurer, it shall incur the obligations and enjoy the benefits of a mutuallife insurer as if originally incorporated as a mutual life insurer. Anysuch corporation under its articles and bylaws as so framed or amended shallbe a continuation of the original organization, and the officers of theorganization shall serve through their respective terms as provided in theoriginal articles and laws. However, their successors shall be elected andserve as the laws of this Commonwealth and the articles of incorporation orbylaws of the reorganized company provide. The incorporation, amendment orreincorporation shall not affect existing suits, rights or contracts. Theorganization, after reorganization, shall have the power to do business ofthe same nature done by it before reorganization, as well as the powersconferred in this section and contemplated by its articles of incorporation,in order to protect and perform rights and contracts existing beforereorganization, but all new business written shall be as a mutual lifeinsurer.
B. All assets, other than general or expense fund assets, belonging to anyreorganized insurer, prior to reorganization or arising or accruing frombenefit certificates issued prior to the reorganization, shall be used onlyfor the benefit of the holders of the benefit certificates or theirbeneficiaries.
C. If at the time of reorganization, or at any time after reorganization, itappears from the last preceding annual report of any such organization, filedwith the Commission, or any investigation made by the Commission, that thepresent value of the contributions to be received from the holders of thebenefit certificates, together with all assets, other than general or expensefund assets, owned by the insurer that have been accumulated from paymentsmade by members holding such certificates, are not equal to the present valueof the benefits promised to be paid, including all matured liabilities on anybenefit certificates, then the insurer so reorganized shall establish,provide for, and maintain a fund, which with the present value ofcontributions and assets will equal the present value of the benefits,together with all matured liabilities. The fund shall be used for thepayment of matured liabilities arising on the benefit certificates when otherassets applicable thereto are exhausted. The fund need not be maintainedunless required by conditions expressed in this chapter.
D. Members in good standing in any society prior to reorganization shall havethe right after reorganization to transfer their insurance in the society tothe mutual life plan without further medical examination for the same orlesser amount, and at legal reserve or level premium rates. The interest inthe assets of the society of any person so transferring, as determined by theboard of directors, trustees or corresponding body, shall be transferred to,and be a part of, the assets of the insurer on the legal reserve or levelpremium plan.
E. The insurer so organized, and its officials, shall exercise all the rightsand powers and perform all the duties conferred or imposed by law uponorganizations writing the kinds of insurance written by the insurer soorganized. The organization and its officials shall exercise all the rightsand powers and have full authority to perform all the duties necessary toprotect rights and contracts existing prior to reorganization. TheCommission shall exercise the powers and discharge the duties concerning anysuch insurer so reorganized that are applicable to insurers writing insuranceor issuing policies of the same class, organized or operating in thisCommonwealth. The Commission shall issue a certificate of authority to anysolvent insurer so reorganized that has fully complied with the laws of thisCommonwealth to do such insurance business in this Commonwealth.
F. Any fraternal benefit society reorganized to do mutual life insurancebusiness as provided in this chapter shall value its benefit certificatesaccording to the standard of valuation for fraternal benefit societies usedin this Commonwealth, and its legal reserve or level premium policiesaccording to the standard of valuation for those policies in thisCommonwealth. The various classes of insurance shall be governed by the lawapplicable to each class of insurance.
G. The expense of operation and maintenance of a reorganized insurer shall beapportioned between those holding benefit certificates issued before thereorganization and those holding policies issued after the reorganization asmay be determined by the board of directors, trustees or corresponding body.
(Code 1950, §§ 38-323 through 38-329, 38.1-632 through 38.1-638; 1952, c.317, §§ 38.1-638.53 through 38.1-638.59; 1968, c. 654; 1986, c. 562.)
§ 38.2-4115. Conversion of fraternal benefit society into mutual life insurer.
A. Any domestic fraternal benefit society organized or operated under thischapter may, upon a two-thirds vote of its supreme governing body, amend itsarticles of incorporation and laws if already incorporated, or, if notincorporated, may incorporate, in a manner to transform itself into a mutuallife insurer. It may use the name by which it is already known, or anothername, as its supreme governing body shall determine. However, the proposedplan for reorganization or reincorporation shall be submitted to and approvedby the Commission. Upon so doing, and upon procuring from the Commission alicense to do the business of insurance in this Commonwealth as a mutual lifeinsurer, it shall incur the obligations and enjoy the benefits of a mutuallife insurer as if originally incorporated as a mutual life insurer. Anysuch corporation under its articles and bylaws as so framed or amended shallbe a continuation of the original organization, and the officers of theorganization shall serve through their respective terms as provided in theoriginal articles and laws. However, their successors shall be elected andserve as the laws of this Commonwealth and the articles of incorporation orbylaws of the reorganized company provide. The incorporation, amendment orreincorporation shall not affect existing suits, rights or contracts. Theorganization, after reorganization, shall have the power to do business ofthe same nature done by it before reorganization, as well as the powersconferred in this section and contemplated by its articles of incorporation,in order to protect and perform rights and contracts existing beforereorganization, but all new business written shall be as a mutual lifeinsurer.
B. All assets, other than general or expense fund assets, belonging to anyreorganized insurer, prior to reorganization or arising or accruing frombenefit certificates issued prior to the reorganization, shall be used onlyfor the benefit of the holders of the benefit certificates or theirbeneficiaries.
C. If at the time of reorganization, or at any time after reorganization, itappears from the last preceding annual report of any such organization, filedwith the Commission, or any investigation made by the Commission, that thepresent value of the contributions to be received from the holders of thebenefit certificates, together with all assets, other than general or expensefund assets, owned by the insurer that have been accumulated from paymentsmade by members holding such certificates, are not equal to the present valueof the benefits promised to be paid, including all matured liabilities on anybenefit certificates, then the insurer so reorganized shall establish,provide for, and maintain a fund, which with the present value ofcontributions and assets will equal the present value of the benefits,together with all matured liabilities. The fund shall be used for thepayment of matured liabilities arising on the benefit certificates when otherassets applicable thereto are exhausted. The fund need not be maintainedunless required by conditions expressed in this chapter.
D. Members in good standing in any society prior to reorganization shall havethe right after reorganization to transfer their insurance in the society tothe mutual life plan without further medical examination for the same orlesser amount, and at legal reserve or level premium rates. The interest inthe assets of the society of any person so transferring, as determined by theboard of directors, trustees or corresponding body, shall be transferred to,and be a part of, the assets of the insurer on the legal reserve or levelpremium plan.
E. The insurer so organized, and its officials, shall exercise all the rightsand powers and perform all the duties conferred or imposed by law uponorganizations writing the kinds of insurance written by the insurer soorganized. The organization and its officials shall exercise all the rightsand powers and have full authority to perform all the duties necessary toprotect rights and contracts existing prior to reorganization. TheCommission shall exercise the powers and discharge the duties concerning anysuch insurer so reorganized that are applicable to insurers writing insuranceor issuing policies of the same class, organized or operating in thisCommonwealth. The Commission shall issue a certificate of authority to anysolvent insurer so reorganized that has fully complied with the laws of thisCommonwealth to do such insurance business in this Commonwealth.
F. Any fraternal benefit society reorganized to do mutual life insurancebusiness as provided in this chapter shall value its benefit certificatesaccording to the standard of valuation for fraternal benefit societies usedin this Commonwealth, and its legal reserve or level premium policiesaccording to the standard of valuation for those policies in thisCommonwealth. The various classes of insurance shall be governed by the lawapplicable to each class of insurance.
G. The expense of operation and maintenance of a reorganized insurer shall beapportioned between those holding benefit certificates issued before thereorganization and those holding policies issued after the reorganization asmay be determined by the board of directors, trustees or corresponding body.
(Code 1950, §§ 38-323 through 38-329, 38.1-632 through 38.1-638; 1952, c.317, §§ 38.1-638.53 through 38.1-638.59; 1968, c. 654; 1986, c. 562.)
