2023 New York Laws › ISC - Insurance › Article 45 - Fraternal Benefit Societies › 4501 - Definitions.

§ 4501. Definitions. In this article:
(a)  "Fraternal benefit society" means, except as used in section four
thousand five hundred twenty-three  of  this  article,  an  incorporated
society,   order  or  supreme  lodge,  without  capital  stock,  formed,
organized and carried on solely for the benefit of its  members  and  of
their  beneficiaries and not for profit, operating on a lodge system and
having a representative form of government, which obligates  itself  for
the  payment of insurance or annuity benefits or both in accordance with
this article.
(b) "Society" means any fraternal benefit society.
(c) "Authorized fraternal benefit  society"  or  "authorized  society"
means any society authorized to do business in this state.
(d)  "Lodge  system"  means  a  system  of  organization  of a society
providing for a  supreme  governing  body  and  subordinate  lodges,  by
whatever  names  known,  into  which  members  are elected, initiated or
admitted in accordance with the society's constitution,  by-laws,  rules
and  regulations,  which  subordinate  lodges  shall be required by such
constitution or by-laws to hold regular or stated meetings at least once
in each month, and either to conduct prescribed  ritualistic  ceremonies
for  the  initiation  of  new  members  or to carry on other altruistic,
educational, fraternal or recreational activities.
(e) "Representative form of government" means  a  form  of  government
providing by its constitution and by-laws, for:
(1)  a  supreme  governing  body  composed  of representatives elected
either by the members or by delegates chosen directly or  indirectly  by
the  members,  together  with such other members as may be prescribed by
its constitution or by-laws;
(2) the representatives, other than officers, directors  and  salaried
employees,  elected  directly  or  indirectly  by  the  members  to be a
majority of the supreme  governing  body  and  to  have  not  less  than
two-thirds  of  the  votes  therein  nor less than the votes required to
amend its articles of incorporation, constitution and by-laws;
(3) the meetings of the supreme governing body  and  the  election  of
officers,  representatives  or  delegates to be held as often as once in
every four calendar years;
(4) each insurance member to be eligible for election to  the  supreme
governing body;
(5)  a  board  of  directors or other executive body, charged with the
responsibility for managing the society's affairs  between  meetings  of
its  supreme governing body, subject to control by its supreme governing
body, having powers and duties delegated to it in the  constitution  and
by-laws  and  required  to  hold regular meetings at least twice in each
calendar year; and
(6) no voting by proxy at any meeting of the supreme governing body.
(f) "Supreme governing body" means a  body  by  whatever  name  known,
organized  and  functioning  as  provided in paragraphs one, two, three,
four and six of subsection (e) hereof to exercise supreme direction of a
society pursuant to the provisions of law and the society's constitution
and by-laws. Such name  may  include,  "supreme  legislative  body"  and
"supreme  legislative convention", and "board of directors" by a society
having an executive body with a different name.
(g) "Board of directors" means an  executive  body  by  whatever  name
known, charged as provided in paragraph five of subsection (e) hereof.
(h)  "Life  insurance  benefits" means those payable under any form of
life insurance including endowment insurance.
(i) "Accidental death benefits" means those payable on death caused by
accident or accidental means.
(j) "Accidental injury benefits" means those payable as  a  result  of
bodily injury caused by accident or accidental means.
(k)  "Sickness benefits" means those payable as a result of temporary,
total or partial disability due to sickness or bodily infirmity.
(l) "Annuity benefits" means periodical payments either  immediate  or
deferred  and  continuing  during  the  life or lives of an annuitant or
annuitants or during the life or lives of an annuitant or annuitants and
for a term of years certain, in an amount which shall not exceed fifteen
thousand dollars annually.
(m) "Total and permanent disability benefits" means those  payable  by
the  society in the case of total and permanent disability as the result
of either disease or accident and which are contained in or supplemental
to any life insurance or annuity obligation of the  society  in  amounts
which  do  not exceed the greater of five hundred dollars a month or the
amounts permitted by  subsection  (e)  of  section  three  thousand  two
hundred fifteen of this chapter.
(n)  "Monument  or  tombstone expense benefits" means those payable to
reimburse the cost of monuments or tombstones to the memory of  deceased
members.
(o) "Hospital expense and surgical and medical expense benefits" means
those  payable  for  such  expenses due to sickness, bodily infirmity or
accidental injury.
(p) "Disability income insurance benefits"  means  periodic  payments,
weekly  or  monthly,  for  a  specified period during the continuance of
disability resulting from sickness or injury, in amounts  which  do  not
exceed one thousand two hundred fifty dollars a month.
(q)  "Long term care benefits" means those payable to members, or upon
application of  a  member  for  a  member's  family  and  dependents  as
authorized  in  section  one  thousand  one  hundred  seventeen  of this
chapter.