The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-15
AN IMPORTANT NEW LAW
II Defines fraternaI and Benevolent Organ
izatiOnS,
PROVIDES FOR THEIR CONTROL BY STATE
And Defines the Duties Of the Com
missioner of Ipaurnnce--It Az
fects Many bodies.

Austin. Texas, May 14.-Following Is
the text OF the law, the bill having been
signed by the governor Saturday, de-
fining fraternal and benevolent associa-
| tlons and providing for their regulation
BY the state and defining the duties oi
the commissioner Of insurance with re-
gard thereto; this bill affects every fra
tefnal insurance organization in the State
and Is therefore, of much Importance.
A traternal beneficiary association 10
I hereby declared to be a corporation, So
ciety or voluntary association formed or
organized and carried on for the sole benefit
OF its members and the benedciaries and
not for profit or that issues beneht Ger
thcates to such of its members only as
may apply therefor. and that maintains
separate branch composed of the members
who hold such certificates, issued and gov
erned by or through separate board OF
management authorized and appointed
by such corporation society or association
for the sole purpose OF managing and con
Quoting such branch. Each association
shall have a lodge system with ffthalistic
form OF work and elective representative
form OF government and shall make pro-
Vision for the payment of benefits In case
Of death and may make provision for the
payment OF benefits in case Of sickness,
temporary or permanent disability. either
as TIE result of disease, accident or cid
age provided, that the period Of life at
which payment of physical disability ben
Gifts on account of old age commences
shall not be under 10 years, subject to
their compliance with its constitution and
bylaws. The fund from which the pay
ment Of such benefits shall be paid, which
shall be known as the benefit fund. and
the fund from which the expenses of such
association shall he betrayed, which shall
be known as the general fund, shall be de-
rived from assessments monthly payments
or dues collected from its members. Pay
ment of death benefits shall be to the fam
lilies, heirs, blood relatives affianced hus-
hand or affianCCd Wife. or to persons de-
pendent upon the member at the time OF
his death, and should there be no one OF
the classes herein mentioned, capable OF
taking the benefit at the death of the
member, then the same shall pass as pro-
vided by the laws and rules of tho asso-
citation. Such associations shall be gov
erned by this act and shall be exempt
| from the provisions of the insurance laws
of this State. and no law hereafter passed
shall apply to them unless they be cX-
pressly designated therein.
Section 2. All such associations coming
within the description as set forth In sec
tion ] of this act, organized under the laws
OF this or any other State. province or ter
ritory, and now doing business In this
State, may continue such business and all
associations of fraternal beneficiary
character not coming within the descrip-
ton as set forth in section of this act,
and now doing business in this State, may
continue such business provided. that all
such associations of either character above
mentioned, shall hereafter comply with
the provisions OF this act regulating an
nual reports and the designation OF the
| commissioner of insurance as the person
upon whom process may be served as here
matter provided. and otherwise complying
with the terms of this act hereinafter pro
vided
Section 3. Any such association coming
within the description as set forth in Sec
ton OF this act, organized under the laws
| OF any other State. province or territory.
and not now doing business in this State,
shall be admitted TO do business within
this state when 1t shall have filed with
| the commissioner of insurance a duly cor
tined copy OF its charter and articles OF
association, and a copy of its constitution
ana bylaws, certified to by its secretary
or corresponding officer, together with an
appointment of the commissioner of IN
surance OF this stare as person upon
Whom process may be served in any suit
IN which such association may be party;
and provided. that such association shall
~ eAi'Nt W ut dhAlioIlLeu 10 90 business
IN the state, province or territory in which
| 1t is Incorporated or organized in case the
| laws OF such state, province or territory
do not provide for any formal authorize
tlon TO do business on the part of such as
| Soclatlon, then such association shall be
shown to be conducting Its business In ac-
cordance with the provisions of this act.
Tor which purpose the commissioner OF
insurance of this State. may personally. or
by some person to be designated by him,
I examine into the condition, affairs, chars,,
ter aud business methods, accounts and
books OF such association at it's home of
nee, which examination shall be conducted
al the expense Of such association, such
expense not to exceed So per day and ac-
tual expenses of travel and reasonable ho-
TEL hills of the person making such exam
/ nation. provided, the cost of such exam
ination shall never exceed the total sum
OF 500; aud provided. further, that such
association shall be required to furnish
suon annual statement on entering this
state for the preceding years business
| such as set forth In the requirements OF
section of this act.
Section 4. When legal process assins,
any such association is served upon the
commissioner Of insurance Of this State
In any suit in which such association may
be a party, he shall Immediately notify
the association Of such service by letter
: ~ Shdlh duu ONeCtFd 10 lis secretary or
corresponding officer. and shall within
three days after such service, forward ia
the same manner copy Of tho process
served on him The plaintiff in such suit
shaU NJ the time such process is served
pay the commissioner of insurance a fee
OF ", which shall be recovered by him as
part OF the costs II he prevails in the suit
The commissioner OF Insurance shall keep
a record of all process served on him
showing the day and hour Of such service
and any process served on said commits
sioner as herein provided shall be valid
end binding on such association.
Section 5. Every such association do
| Ing business in this State shall, on or be-
fore the first day of March of each year
make and Ale with the commissioner OF in
surance OF this State a report of its ar
fairs and operations during the year end
ing on the Slst day of December OF the
previous year, which annual report shall
be n lieu Of all other reports required by
any other law. Such reports shall be upon
blank forms 10 be provided by the commits
sioner OF insurance and shall he verified
under oath by the duly authorized officer
OF such association and shall be published
or the substance thereof, in the annual
renort OF the commissioner of insuranc,
under a separate part, titled, "Fraternal
/ Beneficiary Associations" and shall con.
tain answers to the following questions.
! /. Number OF certificates issued during
/ the year, or members admitted.
z, Amount of INDEMNIFY effected there
I nv