The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-03-29
LEGAL.
Published in The Topeka State Journal.
March 30 1917.
HOUSE BILL NO. 659.

HOUSE BILL NO. 659.
AN ACT relating to fraternaI beneficiary
societies, orders and associations and
amending section 5401 of the General
Statutes of 1915. and repeating said origi
nal section o401.
Be it enacted by the Legislature of the
State of Kansas:
Section 1. That section 5401 of the Gen
eral Statutes of 1915 be amended to read
as follows: Section 5401. fraternal ben
eflc1ary association is hereby declared to
association Of individuals. formed or or
ganized into a lodge system with ritualistic
form of work. and shallSbe carried on for
the sole benefit of its members and their
beneficiaries, and not for profit. Every
fr;ternal beneficiary association as herein
of government, with provisions for cor
porate meetings, and, subject to compliance
provisions for the payment of benefits in
case of death, and may make provisions
for the payment of benefits in case of
bility, either as result of disease. acct
dent. or old age; provided, the period of
life at which payment of physical disa-
bility benefits OH account of old age COM
mences shall not be under seventy years
The fund from which the payment of the
benefits of such association shall be made
and the fund from which the expenses of
such association shall be paid shall be
dues collected from it members. and in
/ terest accumulation thereon. The pay
wife. husband, relati-e by blood to the
fourth degree ascending or descending,
father in law, mother-in Jaw, SON law.
daughter law, stepfather. stepmother.
stepchildren, children by legal adoption.
or to person or persons dependent upon
the member; provided, the member may,
with the consent of the society. make
incorporated charitable institution his or
her beneficiary. Within the above restric-
lions each member shall have the right to
designate his beneficiary. and, from time to
| time, have the same changed in accordance
society, and no beneficiary shall have or
obtain any vested interest in the said ben
] eft until the has become due and
| payable upon the death of the said mem
Der: provided further. that any society may
within the above classes Such associations
may create, maintain and disburse re
serve emergency fund in accordance with
! their constitution or bylaws. Such associ-
! alton shall be governed by this act and
shall be exempt from the provisions of 9th
| hereafter passed shall apply to them unless
! they be expressly designated therein.
! Sec. >. Any fraternal benefit society au-
| thorized to do business in this state and
! operating on the lodge plan, may provide
in its constitution and bylaws, in addition
the payment of death or annuity benefits
| upon the lives of children between the ages
upon the application of some adult person
! upon whom such child is dependent for
support and maintenance. Any such society
! may, at its option, organize and operate
branches for such children and member
ship in local lodges and initiation therein
shall not be required of such children, nor
shall they have any voice in the manage
ment of the society. The total benefits
exceed the following amounts at ages at
next birthday at time of death. respective
! ". as follows: Two thirty-four dollars :;
three forty dollars: four. forty-eight dol,
| lars five. fifty eight dollars: six. one hun
bred and forty dollars; seven. one hundred
/ dollars: nine, two hundred and forty dol
lars; ten, three hundred dollars; eleven.
| four hundred and sixty dollars; thirteen
! to fifteen, five hundred and twenty dob
lars: age sixteen, six hundred dollars No
! take effect until after medical examination
or inspection. in accordance with the laws
certificate be issued unless the society
shall simultaneously put In force at least
five hundred such certificates. each of
which at least assessment has been
paid. nor where the number of lives repre-
scented by such certificate falls below five
to be made upon such certificate shall be
based upon the STANDARD Industrial Nor
/ Number Six" and a rate of interest not
greater than four per cent per annum,
may be made from any surplus held in
provided in the bylaws: and provided
further. that extra contributions may be
made if the reserves hereafter provided for
into such insurance agreements shall
maintain on all such contracts the re-
serve required by the standard of NOR
tality and interest adopted by the society
for computing contributions and the funds
representing the benefit contributions aud
ali accretions thereon shall be kept as
separate and distinct funds, independent
of the other funds of the society, and shall
not be liable for used for the pay
ment of the debts and obligations of the
society other than the benefits herein au-
thorized provided that a society may pro-
vide that when child reaches the min
ifsum age for initiation into membership
into such society. any benefit certificate
issued hereunder may be surrendered for
cancellation and exchanged for any other
forll of certificate issued by the society
provided, that such surrender will not re-
duce the number of lives insured in the
branch below five hundred. and upon the
issuance of such new certificate any re-
serve UPON the original certificate herein
provided for shall be transferred to the
credit of the new certificate. Neither the
person who originally made application
for benefits on account of such child, nor
the beneficiary named in such original
certificate. nor the person who paid the
contributions, shall have any vested right
in such new certificate. the free nomina-
ton of beneficiary under the new certffi-
to benefit membership. An entirely sep
arate financial statement of the business
transactions and of assets and liabilities
arising therefrom shall be. made in its
annual report to the insurance commits
sioner by any society availing itself of the
provisions hereof The separation of as
sets funds and liabilities required shall
not be terminated. rescinded modified.
nor shall the funds be diverted for any
use other than herein specified. as long
as any certificates issued hereunder re-
main in force. and this requirement shall
8 be recognized and enforced in any lfguida-
ton. reinsurance. merger or other change
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