NY Ins L § 4502 (2021)
2021 New York Laws ISC - Insurance Article 45 - Fraternal Benefit Societies 4502 - Incorporation and Licensing of Domestic Societies; Meeting of Supreme Governing Body.

§ 4502.  Incorporation and licensing of domestic societies; meeting of supreme governing body.  An authorized domestic society may be organized and  licensed  in  the manner prescribed in this section, and subject to the  other  requirements  of  this  chapter  applicable  thereto.    The successive steps shall be as follows:  (a)    The  proposed  incorporators,  who  shall  be  natural persons, citizens of the United States and a majority of whom shall  be  citizens of  this  state, and who shall be not less than fifteen in number, shall submit to the superintendent in writing the proposed name of the society and the county in which its principal office will be located.  Such name shall contain a word or words indicating the fraternal character of such society, and shall not contain any of the following words:  "insurance", "assurance",   "life",   "accident",  "health",  "annuity",  "guaranty", "company",   "corporation",   "indemnity",   "endowment",   "guarantee", "casualty",  "surety", "fidelity", or "underwriters", or any  other word or words which in the judgment of the superintendent would be likely  to be  deceptive  or  misleading  as  to the character and purposes of such society.  Such proposal shall be subscribed with the name and address of each such incorporator.  (b)  If the superintendent approves the proposed name of  the  society as  conforming  to  the  requirements  of  subsection (g) of section one thousand one hundred two of this chapter and not inconsistent with other requirements of law, he shall so notify the proposed  incorporators,  or their  representative,  in writing.   Such approval shall become void if within six months from the date thereof the declaration and  charter  of such society have not been filed pursuant to this section.  (c)  The proposed incorporators shall make and subscribe (giving their addresses)  and  affirm  as  true  under  the  penalties  of  perjury, a declaration and charter, both in the English language,  and  shall  file the same with the superintendent, together with duly certified copies of the  proposed constitution, by-laws, rules and regulations, all proposed forms of  certificates  or  other  evidences  of  insurance  or  annuity contracts, or both, all applications therefor and riders or endorsements to  be  used  in connection therewith, all circulars to be issued by the society, and a table or schedule showing the rates of premium  or  other periodical  contribution to be charged by such society for any insurance or annuity benefits to be provided by it.  Such declaration shall  state the  intention  of  the proposed incorporators to form a society for the purpose of providing insurance benefits permissible under the provisions of this article, and  for  other  purposes  not  inconsistent  with  the provisions  of  this  chapter.    The proposed charter shall contain the following:  (1)  the name of the proposed society, approved as aforesaid;  (2)  the place where such society  will  have  its  principal  office, which shall be in this state;  (3)    the  general,  fraternal,  altruistic,  educational, patriotic, recreational and other purposes  of  such  society,  and  the  kinds  of insurance  benefits  to  be provided by it, specified in accordance with section four thousand five hundred five of this article;  (4)  the mode and manner in which  its  corporate  powers  are  to  be exercised;  (5)  the  number  of directors shall not be less than nine of which at least four must not be officers or employees of the society. The charter of such society shall provide that the  number  of  directors  shall  be increased to not less than thirteen within one year following the end of the  calendar  year  in  which the society exceeded five hundred million dollars in admitted assets. "Number of directors" herein means the total  number of directors which the  society  would  have  if  there  were  no vacancies;  (6)   the times and manner of electing its directors and officers, the manner of filling vacancies in such offices, and a provision that at all times a majority of the directors shall be  citizens  and  residents  of this  state or of adjoining states, and not less than five thereof shall be residents of this state;  (7)  the names and postoffice residence addresses of the directors who shall serve until the first election in accordance with the charter  and by-laws;  (8)    the duration of its corporate existence which shall be not less than thirty years;  (9)   such other particulars  as  may  be  necessary  to  explain  the objects, purposes, management and control of such society; and  (10)   such  additional  information  as  the  superintendent  may  by regulation require.  (d)  The superintendent shall transmit such declaration,  charter  and accompanying documents to the attorney general.  If the same be approved by  the  attorney general, as conforming to the requirements of law, the superintendent shall thereupon file the declaration and charter  in  his office,  and  shall  issue  a  certified  copy  of  each to the proposed incorporators.  Such  incorporators  shall  thereupon  become   a   body corporate  which  shall  not  be  authorized to do an insurance business until  it  shall  have  obtained  a  license  therefor  as  provided  in subsection  (f)  hereof, but it   may solicit members for the purpose of completing  its  organization,  collecting  from  each   applicant   for insurance  an  amount  not  less  than  one  regular monthly premium, in accordance with its table or schedule of rates,  issuing  to  each  such applicant  a  receipt  for the amount so collected and providing for the examination of each applicant for life insurance  by  legally  qualified practicing  physicians with certificates of such examinations to be duly filed and approved by  the  chief  medical  examiner  of  such  society. Before  soliciting  or  receiving  any premium or other contribution for insurance benefits of any kind or character, the society shall file with the superintendent a bond in the sum  of  five  thousand  dollars,  with sureties  approved by the superintendent, conditioned upon the return to applicants of the advanced payments, as provided in this section, if the society does not complete its organization and obtain a  license  to  do business  within  one year from the date of incorporation or within such further time as the superintendent may permit pursuant to subsection (g) hereof.  The society shall incur no liability except for  the  repayment of  such  advanced payments, nor issue any certificate or other evidence of an insurance or annuity contract, or both, unless and until it  shall have obtained a license to do business as hereinafter provided.  (e)  Before  obtaining  a  license  to do business in this state, such society shall have established not less than ten subordinate  lodges  or branches,  into  which  not  less than five hundred applicants have been initiated  and  shall  have  actual  bona  fide  applications  for  life insurance  benefits  upon  at least five hundred lives each eligible for such insurance, in accordance with the provisions of this  article,  for at  least  one  thousand  dollars   on each life and shall have received payments  thereunder in the aggregate amount of at  least  two  thousand five hundred dollars.  Before obtaining such  license such society shall submit to the superintendent, under oath of the president and secretary, or  corresponding  officers,  a complete list of such applicants, giving their names, addresses, dates of examination, approval  and  initiation, the  name  and  number  of the subordinate lodge or branch of which each applicant is a member, the amount and kinds of insurance benefits to  be  granted,  the  rate of periodical insurance contributions of each, which shall conform to the requirements of  this  article,  and  the  bank  or banking  institution  in  which  all sums collected from such applicants have  been  deposited.    Such  advanced  payments  or  other  insurance contributions by applicants shall, during the period of organization and until the issuance of a license to do business,  be  held  in  trust  on account  of  such  applicants,  and  no  part  thereof  may  be used for expenses; and if a license is not issued within one year  from  date  of incorporation,   such   advanced  payments  shall  be  returned  to  the applicants who originally made the same.  (f)  If the superintendent finds, from the statements of the principal officers of such society, subscribed and affirmed by  such  officers  as true  under  the  penalties  of  perjury,  or from such investigation or examination as he may deem expedient, that  such  society  has  complied with  the requirements of this section and that the purposes and plan of operation of such society are in accordance  with  the  requirements  of law,  he  may  issue  to  such  society a license to do business in this state.   Such license shall set forth  the  name  of  the  society,  the location  of  its principal office, and the kind of insurance or annuity benefits, or  both, specified in section four thousand five hundred five of this article, which it is   authorized  to  provide  in  this  state. Thereupon  the  society  shall  have  such  powers  as  are necessary or properly incidental to carry into effect the lawful objects and purposes of the society.  (g)  If any such society shall fail to obtain such license within  one year  from  the date of its incorporation or within such further period, not to exceed one additional year, as  the  superintendent  may  in  his discretion  permit,  the superintendent may commence proceedings for the dissolution of such society in accordance with article  seventy-four  of this chapter.  (h)    A  domestic  society may provide for the meeting of its supreme governing body in any other state, province or  territory  wherein  such society  has  not less than five subordinate lodges or branches.  In all meetings of the supreme governing body,  no  member,  representative  or delegate shall cast more than one vote on any question submitted.