Sec. 38a-612. (Formerly Sec. 38-235). Use of assets. Proportion to be used for expenses. - Connecticut Statutes

      Sec. 38a-612. (Formerly Sec. 38-235). Use of assets. Proportion to be used for expenses. 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 or the surrender of any part thereof, except as provided in the contract. 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 such society. Every society, the admitted assets of which are less than the sum of its accrued liabilities and reserves under all of its certificates when valued according to standards required for certificates issued after one year from January 1, 1958, shall, in every provision of the laws of the society for payments by members of such society, in whatever form made, distinctly state the purpose of the same and the proportion thereof which may be used for expenses, and no part of the money collected for mortuary or disability purposes or the net accretions thereto shall be used for expenses.

      (1949 Rev., S. 6250, 6253; 1957, P.A. 448, S. 32.)

      History: Sec. 38-235 transferred to Sec. 38a-612 in 1991.

      Annotations to former section 38-235:

      Right of members in fund of parent body left in hands of subordinate lodges; protection of members in this state where parent body is located outside. 64 C. 170; 81 C. 189; 83 C. 241; 88 C. 676. Certain special funds considered. 84 C. 96. This section does not govern the type of policy which a society may issue. 144 C. 346.