§ 58-24-185. Exemption of certain societies, orders, and associations. - North Carolina Statutes

§ 58‑24‑185. Exemption of certain societies, orders, and associations.

(a)        Nothing containedin this Article shall be so construed as to affect or apply to:

(1)        Grand or subordinatelodges of societies, orders or associations now doing business in this Statewhich provide benefits exclusively through local or subordinate lodges;

(2)        Orders, societies orassociations which admit to membership only persons engaged in one or morecrafts or hazardous occupations, in the same or similar lines of business,insuring only their own members and their families, and the ladies' societiesor ladies' auxiliaries to such orders, societies or associations;

(3)        Domestic societieswhich limit their membership to employees of a particular city or town,designated firm, business house or corporation which provide for a deathbenefit of not more than five hundred dollars ($500.00) or disability benefitsof not more than three hundred fifty dollars ($350.00) to any person in any oneyear, or both;

(4)        Domestic societiesor associations of a purely religious, charitable or benevolent description,which provide for a death benefit of not more than five hundred dollars($500.00) or for disability benefits of not more than three hundred fiftydollars ($350.00) to any one person in any one year, or both;

(5)        An association oflocal lodges of a society now doing business in this State which provides deathbenefits not exceeding five hundred dollars ($500.00) to any one person,provided, that the Commissioner may authorize the payment of death benefits notexceeding three thousand dollars ($3,000) to any one person, or may authorizedisability benefits not exceeding three hundred dollars ($300.00), or mayauthorize both payments, in any one year to any one person; or

(6)        Any association, whethera fraternal benefit society or not, which was organized before 1880 and whosemembers are officers or enlisted, regular or reserve, active, retired, orhonorably discharged members of the Armed Forces or Sea Services of the UnitedStates, and a principal purpose of which is to provide insurance and otherbenefits to its members and their dependents or beneficiaries.

(b)        Any such society orassociation described in subsections (a)(3) or (a)(4) supra which provides fordeath or disability benefits for which benefit certificates are issued, and anysuch society or association included in subsection (a)(4) which has more than1000 members, shall not be exempted from the provisions of this Article butshall comply with all requirements thereof.

(c)        No society which,by the provisions of this section, is exempt from the requirements of thisArticle, except any society described in subsection (a)(2) supra, shall give orallow, or promise to give or allow to any person any compensation for procuringnew members.

(d)        Every society whichprovides for benefits in case of death or disability resulting solely fromaccident, and which does not obligate itself to pay natural death or sickbenefits shall have all of the privileges and be subject to all the applicable provisionsand regulations of this Article except that the provisions thereof relating tomedical examination, valuations of benefit certificates, and incontestability,shall not apply to the society.

(e)        The Commissionermay require from any society or association, by examination or otherwise, suchinformation as will enable the Commissioner to determine whether the society orassociation is exempt from the provisions of this Article.

(f)         Societies, orders,or associations exempted under the provisions of this section shall also beexempt from all other provisions of the general insurance laws of this State.  (1987, c. 483, s. 2; 1989,c. 364, s. 2; c. 485, s. 2; 1991, c. 476, s. 1; c. 720, ss. 4, 45, 55; 2007‑27,s. 1; 2008‑187, s. 12.)