Source: http://dccode.elaws.us/code?no=31-53&e=8
Timestamp: 2019-12-12 01:10:15
Document Index: 307532313

Matched Legal Cases: ['§ 31', '§ 31', '§ 1203', '§ 35', '§ 31', '§ 1204', '§ 35', '§ 31', '§ 1205', '§ 35', '§ 31', '§ 1207', '§ 35', '§ 31', '§ 1208', '§ 35', '§ 31', '§ 31', '§ 1210', '§ 35', '§ 31', '§ 31', '§ 1211', '§ 35', '§ 31', '§ 31', '§ 1212', '§ 35', '§ 31', '§ 1213', '§ 35', '§ 31', '§ 1214', '§ 35', '§ 31', '§ 1216', '§ 35', '§ 31', '§ 1217', '§ 35', '§ 31', '§ 1218', '§ 35', '§ 31', '§ 1219', '§ 35', '§ 31', '§ 31', '§ 1220', '§ 35', '§ 31', '§ 1221', '§ 35', '§ 31', '§ 1222', '§ 35', '§ 31', '§ 1225', '§ 35', '§ 31', '§ 1226', '§ 35', '§ 31', '§ 31', '§ 31', '§ 1227', '§ 35', '§ 31', '§ 1230', '§ 35', '§ 31', '§ 1232', '§ 35', '§ 31', '§ 1234', '§ 35', '§ 31', '§ 1235', '§ 35', '§ 31', '§ 1236', '§ 35']

§ 31-5302. Operation for benefit of members and their beneficiaries; bylaws.
(a)(1) A society shall operate for the benefit of its members and their beneficiaries by:
(A) Providing benefits as specified in § 31-5313; and
(2) The purposes of paragraph (2) of this subsection may be carried out directly by the society, or indirectly through subsidiary corporations or affiliated organizations.
(b) Every society shall have the power to adopt laws and rules for the government of the society, the admission of its members, and the management of its affairs. It shall have the power to change, alter, add to, or amend such laws and rules and shall have other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.
(Apr. 29, 1998, D.C. Law 12-86, § 1203, 45 DCR 1172.)
1981 Ed., § 35-1232.
§ 31-5303. Qualifications for membership.
(1) Eligibility standards for each 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 15 and not greater than age 21;
(Apr. 29, 1998, D.C. Law 12-86, § 1204, 45 DCR 1172.)
1981 Ed., § 35-1233.
§ 31-5304. Location of office.
(a) The principal office of any domestic society shall be located in the District. The meetings of its supreme governing body may be held in any state, district, province, or territory wherein such society has at least one subordinate lodge, or in any other location as determined by the supreme governing body, and all business transacted at the meetings shall be as valid in all respects as if the meetings were held in the District. The minutes of the proceedings of the supreme governing body and of the board of directors shall be in the English language.
(b)(1) A society may provide in its laws for an official publication in which any notice, report, or statement required by law to be given to members, including notice of election, may be published. The required reports, notices, and statements shall be printed conspicuously in the publication. If the records of a society show that 2 or more members have the same mailing address, an official publication mailed to one member is deemed to be mailed to all members at the same address unless a member requests a separate copy.
(2) Not later than June 1st of each year, a synopsis of the society's annual statement providing an explanation of the facts concerning the condition of the society thereby disclosed shall be printed and mailed to each benefit member of the society or, in lieu thereof, the synopsis may be published in the society's official publication.
(Apr. 29, 1998, D.C. Law 12-86, § 1205, 45 DCR 1172.)
1981 Ed., § 35-1234.
§ 31-5306. Waiver of laws.
The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws of the society. Such provision shall be binding on the society and every member and beneficiary of a member.
(Apr. 29, 1998, D.C. Law 12-86, § 1207, 45 DCR 1172.)
1981 Ed., § 35-1236.
§ 31-5307. Organization of societies.
(a) A domestic society organized on or after April 29, 1998, shall be formed as follows:
(1) Seven or more citizens of the United States, a majority of whom are residents of the District, who desire to form a fraternal benefit society may make, sign, and acknowledge, before some officer competent to take acknowledgment of deeds, articles of incorporation, in which shall be stated:
(A) The proposed corporate name of the society, which shall not resemble the name of any society or insurance company already authorized to transact business in the District so as to be misleading or confusing;
(B) The place where its principal office shall be located within the District;
(C) The purposes for which it is being formed and the mode in which its corporate powers are to be exercised. Such purposes shall not include more liberal powers than are granted by this chapter; and
(D) The names and residences of the incorporators and the names, residences, and official titles of all the officers, trustees, directors, or other persons who will manage the affairs and funds of the society for the first year or until the ensuing election, at which all such officers shall be elected by the supreme governing body. The ensuing election shall be held no later than one year from the date of issuance of the permanent certificate of authority.
(2) Duplicate originals of the articles of incorporation, certified copies of the society's bylaws and rules, copies of all proposed forms of certificates, applications and rates therefor, and circulars to be issued by the society and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within one year shall be filed with the Commissioner, who may require such further information as the Commissioner deems necessary. The bond with sureties approved by the Commissioner shall be in such amount, not less than $50,000, nor more than $500,000, as required by the Commissioner. All documents filed are to be in the English language. If the Commissioner finds that the purposes of the society conform to the requirements of this chapter and all provisions of the law have been complied with, the Commissioner shall approve the articles of incorporation and issue the incorporators a preliminary certificate of authority authorizing the society to solicit members as hereinafter provided.
(b) No preliminary certificate of authority granted under the provisions of this section shall be valid after one year from its date or after such further period, not exceeding one year, as may be authorized by the Commissioner upon cause shown, unless the 100 applicants hereinafter required have been secured and the organization has been completed as herein provided. The charter and all other proceedings thereunder shall become null and void in one year from the date of the preliminary certificate of authority, or at the expiration of the extended period, unless the society shall have completed its organization and received a certificate of authority to do business as hereinafter provided.
(c) Upon receipt of a preliminary certificate of authority from the Commissioner, the society may solicit members for the purpose of completing its organization, shall collect from each applicant the amount of not less than one regular monthly premium in accordance with its table of rates, and shall issue to each such applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of such advance premium, nor issue any certificate, nor pay, allow, or offer or promise to pay or allow, any benefit to any person until:
(1) Actual bona fide applications for benefits have been secured aggregating at least $100,000 on not less than 100 applicants, and any necessary evidence of insurability has been furnished to and approved by the society;
(2) At least 5 subordinate lodges have been established into which the 100 applicants have been admitted;
(3) There has been submitted to the Commissioner, under oath of the president or secretary, or corresponding officer of the society, a list of such applicants, giving their names, addresses, date each was admitted, name and number of the subordinate lodge of which each applicant is a member, amount of benefits to be granted, and premiums therefor; and
(4) It shall have been shown to the Commissioner, by sworn statement of the treasurer, or corresponding officer of such society, that at least 100 applicants have each paid in cash at least one regular monthly premium as herein provided, which premiums in the aggregate shall amount to at least $50,000. Advance premiums shall be held in trust during the period of organization. If the society has not qualified for a certificate of authority within one year, as herein provided, advance premiums shall be returned to applicants.
(d) The Commissioner may make such examination and require such further information as the Commissioner deems necessary. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, the Commissioner shall issue to the society a certificate of authority to that effect and that the society is authorized to transact business pursuant to the provisions of this chapter. The certificate of authority shall be prima facie evidence of the existence of the society at the date of such certificate of authority to be made and filed with the Recorder of Deeds of the District. A certified copy of such record may be given in evidence with like effect as the original certificate of authority.
(e) Any incorporated society authorized to transact business in the District at the time this chapter becomes effective shall not be required to reincorporate.
(f) No unincorporated or voluntary association shall be permitted to transact business in the District as a fraternal benefit society.
(Apr. 29, 1998, D.C. Law 12-86, § 1208, 45 DCR 1172.)
1981 Ed., § 35-1237.
§ 31-5309. Operations of nonprofit institutions.
A society may create, maintain, and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by § 31-5302(a)(2). Such institutions may furnish services free of charge 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.
(Apr. 29, 1998, D.C. Law 12-86, § 1210, 45 DCR 1172.)
1981 Ed., § 35-1239.
§ 31-5310. Reinsurance.
A domestic society may enter into reinsurance transactions only in accordance with Chapter 5 of this title. Notwithstanding that law, a society may reinsure the risks of another society in a consolidation or merger approved by the Commissioner under § 31-5311.
(Apr. 29, 1998, D.C. Law 12-86, § 1211, 45 DCR 1172.)
1981 Ed., § 35-1240.
§ 31-5311. Consolidations and mergers.
A domestic society may enter into agreements of consolidation or merger in accordance with § 31-4443.
(Apr. 29, 1998, D.C. Law 12-86, § 1212, 45 DCR 1172.)
1981 Ed., § 35-1241.
§ 31-5312. Conversion of fraternal benefit society into a 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 applicable requirements of the laws of the District with respect to similar mutual legal reserve life insurance corporations if the plan of conversion has been approved by the Commissioner. 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 2/3 of all members of the supreme governing body at a regular or special meeting shall be necessary for the approval of the plan. No such conversion shall take effect unless approved by the Commissioner who may grant approval if the Commissioner finds that the proposed change is in conformity with the requirements of law and not prejudicial.
(Apr. 29, 1998, D.C. Law 12-86, § 1213, 45 DCR 1172.)
1981 Ed., § 35-1242.
§ 31-5313. Benefits.
(b) A society shall specify in its rules those persons who may be issued, or covered by, the contractual benefits in subsection (a) 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.
(Apr. 29, 1998, D.C. Law 12-86, § 1214, 45 DCR 1172.)
1981 Ed., § 35-1243.
§ 31-5315. Benefits not attachable.
(Apr. 29, 1998, D.C. Law 12-86, § 1216, 45 DCR 1172.)
1981 Ed., § 35-1245.
§ 31-5316. Benefit contracts.
(a) Every society authorized to do business in the District shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided thereby. The certificate, together with any riders or endorsements attached thereto, the laws of the society, the application for membership, the application for insurance and declaration of insurability, if any, signed by the applicant, and all amendments to each thereof, shall constitute the benefit contract, as of the date of issuance, between the society and the owner, and the certificate shall so state. A copy of the application for insurance and declaration of insurability, if any, shall be endorsed upon or attached to the certificate. All statements on the application shall be representations and not warranties. Any waiver of this provision shall be void.
(b) Any changes, additions, or amendments to the laws of the society duly made or enacted subsequent to the issuance of the certificate, shall bind the owner and the beneficiaries, and shall govern and control the benefit contract in all respects the same as though the changes, additions, or amendments had been made prior to, and were in force at the time of, the application for insurance. No change, addition, or amendment shall destroy or diminish benefits which the society contracted to give the owner as of the date of issuance.
(d) A society shall provide in its laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require the owner to pay to the society the amount of the owner's equitable proportion of the deficiency as ascertained by its board, and that if the payment is not made either: (i) it shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or (ii) in lieu of or in combination with clause (i), the owner may accept a proportionate reduction in benefits under the certificate. The society may specify the manner of the election and which alternative is to be presumed if no election is made.
(f) No certificate shall be delivered or issued for delivery in the District unless a copy of the form has been filed with the Commissioner in the manner provided for like policies issued by life, accident, and health insurers in the District. Any certificate issued prior to one year after April 29, 1998 shall conform to the requirements provided by the laws applicable immediately prior to April 29, 1998. Every life, accident and health or disability insurance certificate and every annuity certificate issued on or after one year from April 29, 1998 shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life, accident, and health insurers in the District, except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The certificate shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society's laws or rules in force at the time of issuance of the certificate which, if violated, will result in the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member, the certificate shall also contain a provision that a member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material misrepresentation in the application for membership or insurance, shall have the privilege of maintaining the certificate in force by continuing payment of the required premium.
(g) Benefit contracts issued on the lives of persons below the society's minimum age for adult membership may provide for transfer of control of ownership to the insured at an age specified in the certificate. A society may require approval of an application for membership in order to effect this transfer, and may provide in all other respects for the regulation, government and control of the certificates and all rights, obligations, and liabilities incident thereto and connected therewith. Ownership rights prior to the transfer shall be specified in the certificate.
(Apr. 29, 1998, D.C. Law 12-86, § 1217, 45 DCR 1172.)
1981 Ed., § 35-1246.
§ 31-5317. Nonforfeiture benefits, cash surrender values, certificate loans, and other options.
(a) For certificates issued prior to one year after April 29, 1998, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall comply with the provisions of law applicable immediately prior to April 29, 1998.
(b) For certificates issued on or after one year from April 29, 1998 for which reserves are computed on the Commissioner's 1941 Standard Ordinary Mortality Table, the Commissioner's 1941 Standard Industrial Table, the Commissioner's 1958 Standard Ordinary Mortality Table, the Commissioner's 1980 Standard Mortality Table, or any more recent table made applicable to life insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall not be less than the corresponding amount ascertained in accordance with the laws of the District applicable to life insurers issuing policies containing like benefits based upon such tables.
(Apr. 29, 1998, D.C. Law 12-86, § 1218, 45 DCR 1172.)
1981 Ed., § 35-1247.
§ 31-5318. Investments.
A domestic society shall invest its funds only in investments authorized by the laws of the District for the investment of assets of life insurers and subject to the limitations therein. Any foreign or alien society permitted or seeking to do business in the District which invests its funds in accordance with the laws of the state, district, territory, country or province in which it is incorporated, shall be held to meet the requirements of this section for the investment of funds.
(Apr. 29, 1998, D.C. Law 12-86, § 1219, 45 DCR 1172.)
1981 Ed., § 35-1248.
§ 31-5319. Funds.
(b) 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.
(c) 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 the provisions of law regulating life insurers establishing such accounts and issuing such contracts. 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 which § 31-5316(b) and (d) shall not apply.
(Apr. 29, 1998, D.C. Law 12-86, § 1220, 45 DCR 1172.)
1981 Ed., § 35-1249.
§ 31-5320. Taxation.
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.
(Apr. 29, 1998, D.C. Law 12-86, § 1221, 45 DCR 1172.)
1981 Ed., § 35-1250.
§ 31-5321. Applicability of provisions.
Except as herein provided, societies shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws of the District unless they are expressly designated therein, or unless they are specifically made applicable by this chapter.
(Apr. 29, 1998, D.C. Law 12-86, § 1222, 45 DCR 1172.)
1981 Ed., § 35-1251.
§ 31-5324. Annual license.
Societies which are now authorized to transact business in the District, and all societies hereafter licensed, may continue such business until March 1 next succeeding April 29, 1998. The authority of the societies and all societies hereafter licensed, may thereafter be renewed annually, but in all cases to terminate on the succeeding March 1. However, a license so issued shall continue in full force and effect until a renewal of the license has been specifically refused. For each such license or renewal the society shall pay the Commissioner a fee of $50. A duly 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.
(Apr. 29, 1998, D.C. Law 12-86, § 1225, 45 DCR 1172.)
1981 Ed., § 35-1254.
§ 31-5325. Examination of societies; no adverse publications.
(a) The Commissioner, or any person he or she may appoint, may examine any domestic, foreign, or alien society transacting or applying for admission to transact business in the District in the same manner as authorized for examination of domestic, foreign, or alien insurers. 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.
(b) The expense of each examination and of each valuation, including compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued, upon statements furnished by the Commissioner.
(Apr. 29, 1998, D.C. Law 12-86, § 1226, 45 DCR 1172.)
1981 Ed., § 35-1255.
§ 31-5326. Foreign or alien society; admission.
No foreign or alien society shall transact business in the District without a certificate of authority issued by the Commissioner in accordance with §§ 31-4501 and 31-4502 and § 31-2502.21.
(Apr. 29, 1998, D.C. Law 12-86, § 1227, 45 DCR 1172.)
1981 Ed., § 35-1256.
§ 31-5329. Injunction.
No application or petition for injunction against any domestic, foreign or alien society, or lodge thereof, shall be recognized in any court of the District unless made by the Corporation Counsel upon request of the Commissioner.
(Apr. 29, 1998, D.C. Law 12-86, § 1230, 45 DCR 1172.)
1981 Ed., § 35-1259.
§ 31-5331. Unfair methods of competition; unfair and deceptive acts and practices.
Every society authorized to do business in the District and its agents shall be subject to the provisions of law applicable to life, accident, and health insurers relating to unfair and deceptive practices; provided, however, that nothing in such provisions 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.
(Apr. 29, 1998, D.C. Law 12-86, § 1232, 45 DCR 1172.)
1981 Ed., § 35-1261.
§ 31-5333. Exemption of certain societies.
(a) Nothing contained in this chapter shall be construed as to affect or apply to:
(1) Grand or subordinate lodges of societies, orders, or associations now doing business in the District which provide benefits exclusively through local or subordinate lodges;
(2) Orders, societies, or associations which admit to membership only persons engaged in one or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and the ladies' societies or ladies' auxiliaries to such orders, societies, or associations;
(3) Domestic societies which limit their membership to employees of a particular city or town, designated firm, business house or corporation which provide for a death benefit of not more than $700 or disability benefits of not more than $650 to any person in any one year, or both;
(4) Domestic societies or associations of a purely religious, charitable or benevolent description, which provide for a death benefit of not more than $400 or for disability benefits of not more than $350 to any one person in any one year, or both; or
(5) Grand or subordinate lodges of the Independent Order of Odd Fellows, nor any grand or subordinate lodge, or other body of Free and Accepted Masons, the National Council or any subordinate council of the Junior Order United American Mechanics, the National Council or any subordinate council of the Daughters of America, the Supreme Council of the Knights of Columbus or any subordinate council thereof, or similar orders, associations, or societies that do not have as their principal object the issuance of benefit certificates of membership in case of death or the payment of sick, funeral, or death benefits exceeding in amount $100.
(b) Any such society or association described in subsection (a)(3) or (4) of this section which provides for death or disability benefits for which benefit certificates are issued, and any such society or association included in subsection (a)(4) of this section which has more than 1000 members, shall not be exempted from the provisions of this chapter but shall comply with all requirements thereof.
(c) No society which is exempt from the requirements of this chapter, except any society described in subsection (a)(2) of this section, shall give or allow, or promise to give or allow, to any person any compensation for procuring new members.
(d) Every society which provides for benefits in case of death or disability resulting solely from accident, and which does not obligate itself to pay natural death or sick benefits shall have all of the privileges and be subject to all the applicable provisions and regulations of this chapter except that the provisions thereof relating to medical examination, valuations of benefit certificates, and incontestability, shall not apply to such society.
(e) The Commissioner may require from any society or association, by examination or otherwise, such information as will enable the Commissioner to determine whether the society or association is exempt from the provisions of this chapter.
(f) Societies, exempted under the provisions of this section, shall also be exempt from all other provisions of the insurance laws of the District.
(Apr. 29, 1998, D.C. Law 12-86, § 1234, 45 DCR 1172.)
1981 Ed., § 35-1263.
§ 31-5334. Review.
All decisions and findings of the Commissioner made under the provisions of this chapter shall be subject to review as provided by subchapters I and II of Chapter 2 of Title 5.
(Apr. 29, 1998, D.C. Law 12-86, § 1235, 45 DCR 1172.)
1981 Ed., § 35-1264.
§ 31-5335. Severability.
If any provision of this chapter or the application of such provision to any circumstance is held invalid, the remainder of this chapter or the application of the provision to other circumstances, shall not be affected thereby.
(Apr. 29, 1998, D.C. Law 12-86, § 1236, 45 DCR 1172.)
1981 Ed., § 35-1265.