Source: https://app.leg.wa.gov/RCW/default.aspx?cite=48.36A&full=true
Timestamp: 2019-04-20 05:01:57
Document Index: 508354230

Matched Legal Cases: ['§ 1', '§ 2', '§ 3', '§ 4', '§ 5', '§ 6', '§ 8', '§ 9', '§ 12', '§ 13', '§ 15', '§ 16', '§ 18', '§ 21', '§ 22', '§ 23', '§ 24', '§ 2', '§ 1', '§ 27', '§ 4', '§ 5', '§ 6', '§ 7', '§ 28', '§ 10', '§ 32', '§ 34', '§ 11', '§ 35', '§ 39', '§ 36', '§ 38', '§ 40', '§ 41', '§ 45']

Chapter 48.36A RCW: FRATERNAL BENEFIT SOCIETIES
RCWs > Title 48 > Chapter 48.36A
Chapter 48.36A RCW
48.36A.010 Fraternal benefit society defined.
48.36A.020 Lodge system—Lodges for children.
48.36A.030 Representative form of government.
48.36A.040 Definitions.
48.36A.050 Beneficial operations—Laws and rules.
48.36A.060 Membership classes, rights, grievances.
48.36A.070 Location of office and meetings—Official publications, annual statement.
48.36A.080 Immunity of officers—Indemnification of person responsible—Insurance for liability.
48.36A.090 Nonwaiver provisions.
48.36A.100 Formation of domestic society—Procedures and requirements.
48.36A.110 Amendment of society's laws.
48.36A.120 Not-for-profit institutions authorized—Funeral homes prohibited.
48.36A.130 Reinsurance.
48.36A.140 Consolidation and merger.
48.36A.150 Conversion to mutual life insurance company.
48.36A.160 Contractual benefits.
48.36A.170 Designation of beneficiary—Funeral benefits.
48.36A.180 Protection of benefits.
48.36A.190 Benefit certificates—Impaired reserves.
48.36A.200 Paid-up nonforfeiture benefits and cash surrender values.
48.36A.210 Authorized investments.
48.36A.220 Assets—Investment and disbursement.
48.36A.230 Chapter exclusive.
48.36A.240 Funds tax exempt, exception.
48.36A.250 Valuation standards—Reserves.
48.36A.260 Annual financial statement.
48.36A.263 Filing of financial statements.
48.36A.270 Licenses and renewals—Fees—Existing societies.
48.36A.272 Notice of intent to suspend, revoke, or refuse to renew a license.
48.36A.274 Duration of suspension.
48.36A.276 Reauthorization of license.
48.36A.278 Notice to agents of loss of authority.
48.36A.280 Examinations.
48.36A.282 Transactions hazardous to certificate holders or creditors—Standards for consideration.
48.36A.284 Determination of financial condition—Hazardous to certificate holders—Commissioner's order—Hearing.
48.36A.286 Rehabilitation, liquidation, or conservation of society—Same as insurance companies—Priority of distribution of claims.
48.36A.290 License required—Obtaining.
48.36A.310 Deficiencies, noncompliance by societies—Actions against license.
48.36A.320 Requirements for injunction.
48.36A.330 Insurance producers.
48.36A.340 Unfair trade practices.
48.36A.350 Service of process upon commissioner.
48.36A.360 Penalties.
48.36A.370 Exemptions.
48.36A.380 World War I societies.
48.36A.390 Fraternal mutual insurers.
48.36A.400 Fraternal mutual life insurers.
48.36A.410 Review of commissioner's decisions and findings.
48.36A.901 Effective date—1987 c 366.
48.36A.010
Fraternal benefit society defined.
Any incorporated society, order, or supreme lodge, without capital stock, including one exempted under the provisions of RCW 48.36A.370(1)(b) whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits in accordance with this chapter, is hereby declared to be a fraternal benefit society.
[ 1987 c 366 § 1.]
48.36A.020
Lodge system—Lodges for children.
(2) A society may, at its option, organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of the children, nor shall they have a voice or vote in the management of the society.
[ 1987 c 366 § 2.]
48.36A.030
(a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than two-thirds of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or
(b) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board member may not exceed four years. Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. Those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society;
(4) Each voting member shall have one vote. No vote may be cast by proxy.
[ 1987 c 366 § 3.]
48.36A.040
(1) "Benefit contract" means the agreement for provision of benefits authorized by RCW 48.36A.160, as that agreement is described in RCW 48.36A.190(1).
(4) "Premiums" means premiums, rates, dues or other required contributions by whatever name known, which are payable under the certificate.
(5) "Laws" means the society's articles of incorporation, constitution, and bylaws, however designated.
(6) "Rules" means all rules, regulations, or resolutions adopted by the supreme governing body or board of directors which are intended to have general application to the members of the society.
(7) "Society" means fraternal benefit society, unless otherwise indicated.
(8) "Lodge" means subordinate member units of the society, known as camps, courts, councils, branches, or by any other designation.
[ 1987 c 366 § 4.]
48.36A.050
Beneficial operations—Laws and rules.
(a) Providing benefits as specified in RCW 48.36A.160; and
(b) Operating for one or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purposes for the benefit of its members, which may also be extended to others.
These purposes may be carried out directly by the society, or indirectly through subsidiary corporations or affiliated organizations.
(2) Every society may adopt laws and rules for the government of the society, the admission of its members, and the management of its affairs. It may change, alter, add to, or amend such laws and rules and has such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.
[ 1987 c 366 § 5.]
48.36A.060
Membership classes, rights, grievances.
(a) Eligibility standards for each and every class of membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age fifteen and not greater than age twenty-one;
(2) A society may also admit social members who have no voice or vote in the management of the insurance affairs of the society.
(4) A society may provide in its laws or rules for grievance or complaint procedures for members.
[ 1987 c 366 § 6.]
48.36A.070
48.36A.080
Immunity of officers—Indemnification of person responsible—Insurance for liability.
(2) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liabilities imposed upon, the person in connection with or arising out of any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, or threat thereof, in which the person may be involved by reason of the fact that the person is or was a director, officer, employee, or agent of the society or of any firm, corporation, or organization which the person served in any capacity at the request of the society. A person shall not be so indemnified or reimbursed (a) in relation to any matter in such action, suit, or proceeding as to which the person shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee, or agent of the society; or (b) in relation to any matter in the action, suit, or proceeding, or threat thereof, which has been made the subject of a compromise settlement; unless in either case the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that their conduct was unlawful. The determination whether the conduct of the person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in (a) or (b) of this subsection may only be made by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of no contest, as to the person shall not in itself create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement. The foregoing right of indemnification and reimbursement shall not be exclusive of other rights to which the person may be entitled as a matter of law and shall inure to the benefit of the person's heirs, executors, and administrators.
(3) A society may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the society, or who is or was serving at the request of the society as a director, officer, employee, or agent of any other firm, corporation, or organization against any liability asserted against the person and incurred by the person in any capacity or arising out of the person's status as such, whether or not the society would have the power to indemnify the person against the liability under this section.
[ 1987 c 366 § 8.]
48.36A.090
Nonwaiver provisions.
[ 1987 c 366 § 9.]
48.36A.100
48.36A.110
48.36A.120
Not-for-profit institutions authorized—Funeral homes prohibited.
(1) A society may create, maintain, and operate, or establish organizations to operate, not-for-profit institutions to further the purposes permitted by RCW 48.36A.050(1)(b). The institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held or leased by the society for this purpose shall be reported in every annual statement.
(2) No society shall own or operate funeral homes or undertaking establishments.
[ 1987 c 366 § 12.]
48.36A.130
(1) A domestic society may, by a reinsurance agreement, transfer any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in this state, or if not so authorized, one which is approved by the commissioner, but no domestic society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on the transferred risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a transferring society for reinsurance made, transferred, renewed, or otherwise becoming effective after January 1, 1988, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the transferring society under the contract or contracts reinsured without diminution because of the insolvency of the transferring society.
(2) Notwithstanding the limitation in subsection (1) of this section, a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under RCW 48.36A.140.
[ 1987 c 366 § 13.]
48.36A.140
48.36A.150
Conversion to mutual life insurance company.
Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of the insurance laws of this state for mutual life insurance companies. A plan of conversion shall be prepared in writing by the board of directors setting forth in full the terms and conditions of conversion. The affirmative vote of two-thirds of all members of the supreme governing body at a regular or special meeting shall be necessary for the approval of such plan, or if the society is organized under the direct election method pursuant to RCW 48.36A.030(1)(b), the plan of conversion shall be submitted by mail to the benefit members or the plan may be published in the official publication authorized by RCW 48.36A.070(2)(a). The affirmative vote of two-thirds of the benefit members voting thereon shall be necessary for the approval of the plan. No conversion shall take effect unless and until approved by the commissioner who may give approval if the commissioner finds that the proposed change is in conformity with the requirements of law and not prejudicial to the certificate holders of the society.
[ 1987 c 366 § 15.]
48.36A.160
(e) Hospital, medical, or nursing benefits;
(g) Such other benefits as authorized for life insurers and which are not inconsistent with this chapter.
(2) A society shall specify in its rules those persons who may be issued, or covered by, the contractual benefits in subsection (1) of this section, consistent with providing benefits to members and their dependents. A society may provide benefits on the lives of children under the minimum age for adult membership upon application of an adult person.
[ 1987 c 366 § 16.]
48.36A.170
48.36A.180
[ 1987 c 366 § 18.]
48.36A.190
48.36A.200
48.36A.210
A society shall invest its funds only in investments that are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this state which invests its funds in accordance with the laws of the state, district, territory, country, or province in which it is incorporated, shall be deemed to have met the requirements of this section for the investment of funds.
[ 1987 c 366 § 21.]
48.36A.220
Assets—Investment and disbursement.
(1) All assets shall be held, invested, and disbursed for the use and benefit of the society and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof, except as provided in the benefit contract.
(2) A society may create, maintain, invest, disburse, and apply any special fund or funds necessary to carry out any purpose permitted by the laws of the society.
(3) A society may, pursuant to resolution of its supreme governing body, establish and operate one or more separate accounts and issue contracts on a variable basis, subject to all the provisions of law regulating life insurers establishing such accounts and issuing such contracts, as provided in chapter 48.18A RCW. To the extent the society deems it necessary in order to comply with any applicable federal or state laws, or any rules issued thereunder, the society may adopt special procedures for the conduct of the business and affairs of a separate account, may, for persons having beneficial interests therein, provide special voting and other rights, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee to manage the business and affairs of the account, and may issue contracts on a variable basis to which RCW 48.36A.190 (2) and (4) shall not apply.
[ 1987 c 366 § 22.]
48.36A.230
Societies shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws of this state unless they are expressly designated therein, or unless it is specifically made applicable by this chapter.
[ 1987 c 366 § 23.]
48.36A.240
Funds tax exempt, exception.
Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal, and school tax, other than taxes on real estate and office equipment.
[ 1987 c 366 § 24.]
48.36A.250
48.36A.260
48.36A.263
Every fraternal benefit society holding a certificate of authority shall file its financial statements as required by this code and by the commissioner in accordance with the accounting practices and procedures manuals as adopted by the national association of insurance commissioners, unless otherwise provided by law.
[ 1999 c 33 § 2.]
48.36A.270
Licenses and renewals—Fees—Existing societies.
A license under this chapter continues in force until suspended, revoked, or not renewed. A license is subject to renewal annually on the first day of July upon payment of the fee for the license. If not so renewed, the certificate expires as of the thirtieth day of June of the same year. Licenses existing on June 9, 1994, continue in force until July 1, 1995, unless revoked or suspended. For each license or renewal the society shall pay the commissioner the fee established pursuant to RCW 48.14.010, subject to the retaliatory provision of RCW 48.14.040. A certified copy or duplicate of the license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter.
[ 1994 c 131 § 1; 1987 c 366 § 27.]
48.36A.272
Notice of intent to suspend, revoke, or refuse to renew a license.
The commissioner shall give a society notice of his or her intention to suspend, revoke, or refuse to renew its license not less than ten days before the effective date of the order of suspension, revocation or refusal, except that advance notice of intention is not required where the order results from a domestic society's failure to make good a deficiency of assets as required by the commissioner.
[ 1996 c 236 § 4.]
48.36A.274
The commissioner shall not suspend a society's license for a period in excess of one year, and shall state in his or her order of suspension the period during which the order is effective.
[ 1996 c 236 § 5.]
48.36A.276
Reauthorization of license.
A society whose license has been suspended, revoked, or refused may not subsequently be authorized unless the grounds for the suspension, revocation, or refusal no longer exist and the society is otherwise fully qualified.
[ 1996 c 236 § 6.]
48.36A.278
Notice to agents of loss of authority.
Upon the suspension, revocation, or refusal of a society's license, the commissioner shall give notice to the society and shall suspend, revoke, or refuse the authority of its agents to represent it in this state and give notice to the agents.
[ 1996 c 236 § 7.]
48.36A.280
(1) The commissioner, or any person the commissioner may appoint, may examine any domestic, foreign, or alien society transacting or applying for admission to transact business in this state in the same manner as authorized by chapter 48.03 RCW. Requirements of notice and an opportunity to respond before findings are made public as provided in the laws regulating insurers shall also be applicable to the examination of societies.
(2) The expense of each examination and of each valuation, including the compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued. The payments shall be made upon receipt of statements furnished by the commissioner.
[ 1987 c 366 § 28.]
48.36A.282
48.36A.284
48.36A.286
Rehabilitation, liquidation, or conservation of society—Same as insurance companies—Priority of distribution of claims.
(1) Any rehabilitation, liquidation, or conservation of a domestic fraternal benefit society is the same as the rehabilitation, liquidation, or conservation of an insurance company and shall be conducted under the supervision of the commissioner pursuant to the law governing the rehabilitation, liquidation, or conservation of insurance companies. The commissioner may apply for an order directing the commissioner to rehabilitate, liquidate, or conserve a domestic fraternal benefit society upon any one or more of the following grounds: That the domestic fraternal benefit society:
(b) Has ceased transacting insurance business for a period of one year; or
(c) Is insolvent and has commenced voluntary liquidation or dissolution, or attempts to commence or prosecute any action or proceeding to liquidate its business or affairs, or to dissolve its corporate charter, or to procure the appointment of a receiver, trustee, custodian, or sequestrator under any law except this code; or
(d) Any of the matters set forth in RCW 48.36A.310.
(2) The priority of the distribution of claims from a domestic fraternal benefit society's estate shall be as set forth in RCW 48.31.280.
[ 1996 c 236 § 10.]
48.36A.290
48.36A.310
48.36A.320
Requirements for injunction.
No application or petition for injunction against any domestic, foreign, or alien society, or lodge thereof, shall be maintained in any court of this state unless made by the attorney general upon request of the commissioner.
[ 1987 c 366 § 32.]
48.36A.330
48.36A.340
(1) Except as provided in subsection (2) of this section, every society authorized to do business in this state shall be subject to the provisions of chapter 48.30 RCW relating to unfair trade practices.
(2) Nothing in chapter 48.30 RCW shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership, or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society.
[ 1987 c 366 § 34.]
48.36A.350
Service of process upon commissioner.
(1) Every society authorized to do business in this state must appoint the commissioner as its attorney to receive service of, and upon whom must be served, all legal process issued against it in this state upon causes of action arising within this state. Service upon the commissioner as attorney constitutes service upon the society.
(2) With the appointment the society must designate the person to whom the commissioner must forward legal process so served upon him or her.
(3) The appointment of the commissioner as attorney is irrevocable, binds any successor in interest or to the assets or liabilities of the society, and remains in effect as long as there is in force in this state any contract made by the society or liabilities or duties arising therefrom.
(4) The service of process must be accomplished and processed in the manner prescribed under RCW 48.02.200.
[ 2011 c 47 § 11; 1987 c 366 § 35.]
48.36A.360
(1) Any person who wilfully makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society, shall upon conviction be fined not less than one hundred dollars nor more than five hundred dollars or imprisonment in the county jail not less than thirty days nor more than three hundred sixty-four days, or both.
(2) Any person who wilfully makes a false or fraudulent statement in any verified report or declaration under oath required or authorized by this chapter, or of any material fact or thing contained in a sworn statement concerning the death or disability of an insured for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of false swearing and shall be subject to the penalties under RCW 9A.72.040.
(3) Any person who solicits membership for, or in any manner assists in procuring membership in, any society not licensed to do business in this state shall be guilty of a misdemeanor and upon conviction be fined not less than fifty dollars nor more than two hundred dollars.
(4) Any person guilty of a wilful violation of, or neglect or refusal to comply with, the provisions of this chapter for which a penalty is not otherwise prescribed, shall upon conviction, be subject to a fine not exceeding two hundred dollars.
[ 2011 c 96 § 39; 1987 c 366 § 36.]
48.36A.370
48.36A.380
World War I societies.
Any corporation, society, order, or voluntary association operating as set forth in RCW 48.36A.010, 48.36A.020, and 48.36A.030, organized during the war in which the United States entered on April 6, 1917, with the purposes of assisting the government of the United States in maintaining and increasing the production of commodities essential for the prosecution of that war, and of developing loyalty to the United States, or whose membership is limited to veterans of that war, may be licensed under the provisions of this chapter and shall have all the privileges and shall be subject to all the provisions and regulations of this chapter, except that the provisions of this chapter requiring death benefits of at least one thousand dollars, medical examinations, and valuations of benefit certificates, shall not apply to such society, but the society may provide benefits in case of death or disability resulting solely from accidents in an amount not exceeding one thousand dollars and may also provide for death or funeral benefits, or both, not exceeding one hundred dollars each, and for sick or disability benefits not exceeding five hundred dollars to any one person, in any one year. Any corporation, society, order, or voluntary association organized under the provisions of this section shall file with the insurance commissioner a copy of all its rates and policy forms. Rates and policy forms must be approved by the insurance commissioner before becoming effective. All rates and forms approved by the commissioner shall be observed by the society until amended rates or forms shall have been filed with and approved by the insurance commissioner.
[ 1987 c 366 § 38.]
48.36A.390
48.36A.400
Fraternal mutual life insurers.
(1) A mutual life insurer which is affiliated with and insures exclusively members of a specified fraternal society, which society conducts its business and secures its membership on the lodge system, having ritualistic work and ceremonies, is herein designated as a fraternal mutual life insurer.
(2) Such an insurer shall be subject to the applicable provisions of this title governing mutual life insurers except only as to the provisions relative to annual meeting, taxes, fees, and licenses. Such an insurer shall pay for its annual license and filing its annual statement, the sum of ten dollars. Such an insurer shall pay the expense of examinations of it by the commissioner, upon statement furnished by the commissioner.
[ 1987 c 366 § 40.]
48.36A.410
Review of commissioner's decisions and findings.
All decisions and findings of the commissioner made under the provisions of this chapter shall be subject to review as provided in chapter 34.05 RCW.
[ 1987 c 366 § 41.]
48.36A.901
Effective date—1987 c 366.
[ 1987 c 366 § 45.]