ORS Chapter 748 - Oregon Statutes

Chapter 748 — FraternalBenefit Societies

 

2009 EDITION

 

 

FRATERNALBENEFIT SOCIETIES

 

INSURANCE

 

GENERALPROVISIONS

 

748.103     Definitions

 

748.106     Descriptionof fraternal benefit society

 

748.109     Conditionsconstituting “operating on a lodge system”

 

748.112     Conditionsconstituting “representative form of government”

 

SOCIETIESGENERALLY

 

748.121     Purposes,operation and powers

 

748.123     Membership;eligibility; admission process; privileges

 

ORGANIZATIONALAND ADMINISTRATIVE PROVISIONS

 

748.130     Principaloffice; publications; annual statement synopsis; complaints

 

748.133     Formation

 

748.136     Officers,governors, directors; exemption from liability; indemnification; insurance

 

748.139     Waiverof provisions by subordinate body

 

748.142     Amendmentof society laws

 

748.144     Creationand operation of other organizations and entities

 

748.148     Consolidationand merger

 

LICENSINGAND REINSURANCE

 

748.171     Certificateof authority

 

748.174     Certificateof authority for foreign or alien society

 

748.177     Authorizationas mutual life insurance company

 

748.181     Insuranceproducers; licensing

 

748.184     Reinsurance

 

BENEFITS,BENEFICIARIES AND CONTRACTS GENERALLY

 

748.201     Benefits

 

748.204     Beneficiaries

 

748.207     Benefitsexempt from execution

 

748.211     Benefitcontract; certificate

 

GROUPBENEFITS

 

748.306     Authorityfor group benefit certificates

 

748.309     Groupmembership; lodges

 

748.312     Membershipin lodges organized under ORS 748.309

 

748.316     Paymentsfor group benefits

 

748.319     Groupcertificates issued by foreign or alien society or by domestic society inforeign or alien jurisdiction

 

748.322     Continuationof membership in society after cancellation, discontinuance or nonrenewal ofgroup certificate

 

FINANCIALPROVISIONS

 

748.401     Valueof benefit and amount of options

 

748.403     Standardsof valuation for certificates

 

748.406     Financialstatement; filing; fee; valuation

 

748.409     Assetsof society; variable contracts

 

748.412     Investmentof funds

 

748.414     Fundsexempt from certain taxes

 

ENFORCEMENT

 

748.501     Examination

 

748.503     Investigationof society; notice of deficiencies; action by Attorney General; hearing

 

748.506     Investigationof foreign or alien society; notice of deficiencies; revocation or suspensionof authority

 

748.509     Validityof petition for injunction

 

EXEMPTIONS;RELATION TO OTHER LAW

 

748.601     Exemptionsfrom chapter

 

748.603     Relationshipto other insurance laws

 

748.605     Insuranceagainst risk of loss under less than fully insured employee health benefit plan

 

PENALTIES

 

748.990     Penalties

 

      748.010 [Amended by1955 c.465 §7; 1967 c.359 §108; renumbered 731.562]

 

      748.020 [Amended by1955 c.465 §8; repealed by 1967 c.359 §704]

 

      748.030 [Repealed by1967 c.359 §704]

 

      748.040 [Amended by1955 c.465 §9; repealed by 1967 c.359 §704]

 

      748.045 [1955 c.465 §4;repealed by 1967 c.359 §704]

 

      748.050 [Repealed by1955 c.465 §12]

 

      748.055 [1955 c.465 §6;repealed by 1967 c.359 §704]

 

      748.060 [Repealed by1967 c.359 §704]

 

      748.070 [Amended by1955 c.465 §10; repealed by 1967 c.359 §704]

 

      748.075 [1955 c.465 §3;repealed by 1967 c.359 §704]

 

      748.080 [Repealed by1955 c.465 §12]

 

      748.084 [1955 c.465 §2;1967 c.359 §94; renumbered 731.438]

 

      748.086 [1955 c.465 §5;1967 c.359 §572; renumbered 746.055]

 

      748.090 [Amended by1955 c.465 §11; repealed by 1967 c.359 §704]

 

GENERALPROVISIONS

 

      748.103Definitions.As used in this chapter:

      (1)“Benefit contract” means the agreement for provision of benefits authorized byORS 748.201, as that agreement is described in ORS 748.211 (1).

      (2)“Benefit member” means an adult member who is designated by the laws or rulesof the society to be a benefit member under a benefit contract.

      (3)“Certificate” means the document issued as written evidence of the benefitcontract.

      (4)“Impaired” means either:

      (a)For a society that does not write variable contracts, whenever its assets areless than its total liabilities; or

      (b)For a society that does write variable contracts, whenever its assets are lessthan its total liabilities, plus the required surplus for a mutual life insurerto write such contracts.

      (5)“Laws” means the society’s articles of incorporation, constitution and bylaws,however designated.

      (6)“Lodge” means subordinate member units of the society, known as camps, courts,councils, branches or by any other designation.

      (7)“Premiums” means premiums, rates, dues or other required contributions bywhatever name known, which are payable under the certificate.

      (8)“Rules” means all rules, regulations or resolutions adopted by the supremegoverning body or board of directors which are intended to have generalapplication to the members of the society.

      (9)“Society” means fraternal benefit society, unless otherwise indicated. [1987c.490 §2]

 

      748.105 [Formerly740.010; repealed by 1987 c.490 §58]

 

      748.106Description of fraternal benefit society. Any corporation, society, order,supreme lodge or voluntary association, without capital stock, conducted solelyfor the benefit of its members and their beneficiaries and not-for-profit,operated on a lodge system with ritualistic form of work, having arepresentative form of government and which provides benefits in accordancewith this chapter is hereby declared to be a fraternal benefit society. [1987c.490 §3]

 

      748.109Conditions constituting “operating on a lodge system.” (1) A societyis operating on the lodge system if it has a supreme governing body andsubordinate lodges into which members are elected, initiated or admitted inaccordance with its laws, rules and ritual. Subordinate lodges shall berequired by the laws of the society to hold regular meetings at least once eachmonth in furtherance of the purposes of the society.

      (2)A society may, at its option, organize and operate lodges for children underthe minimum age for adult membership. Membership and initiation in local lodgesshall not be required of the children, nor shall the children have a voice orvote in the management of the society. [1987 c.490 §4]

 

      748.110 [Formerly740.020; repealed by 1987 c.490 §58]

 

      748.112Conditions constituting “representative form of government.” A society has arepresentative form of government when:

      (1)It has a supreme governing body constituted as:

      (a)An assembly composed of delegates elected directly by the members or atintermediate assemblies or conventions of members or their representatives,together with other delegates as may be prescribed in the society’s laws. Asociety may provide for election of delegates by mail. The elected delegatesshall constitute a majority in number and shall not have less than two-thirdsof the votes and not less than the number of votes required to amend thesociety’s laws. The assembly shall be elected and shall meet at least onceevery four years and shall elect a board of directors to conduct the businessof the society between meetings of the assembly. Vacancies on the board ofdirectors between elections may be filled in the manner prescribed by thesociety’s laws; or

      (b)A board composed of persons elected by the members, either directly or by theirrepresentatives in intermediate assemblies, and any other persons prescribed inthe society’s laws. A society may provide for election of the board by mail.Each term of a board member may not exceed four years. Vacancies on the boardbetween elections may be filled in the manner prescribed by the society’s laws.Those persons elected to the board shall constitute a majority in number andnot less than the number of votes required to amend the society’s laws. Aperson filling the unexpired term of an elected board member shall beconsidered to be an elected member. The board shall meet at least quarterly toconduct the business of the society;

      (2)The officers of the society are elected either by the supreme governing body orby the board of directors;

      (3)Only benefit members are eligible for election to the supreme governing bodyand the board of directors; and

      (4)Each voting member has one vote. No vote may be cast by proxy. [1987 c.490 §5]

 

      748.115 [Formerly740.030; repealed by 1987 c.490 §58]

 

      748.120 [1967 c.359 §601;repealed by 1987 c.490 §58]

 

SOCIETIESGENERALLY

 

      748.121Purposes, operation and powers. (1) The purposes of a society, asspecified in subsection (2) of this section, may be carried out directly by thesociety, or indirectly through subsidiary corporations or affiliatedorganizations.

      (2)A society shall operate for the benefit of members and their beneficiaries by:

      (a)Providing benefits as specified in ORS 748.201; and

      (b)Operating for one or more social, intellectual, educational, charitable,benevolent, moral, fraternal, patriotic or religious purposes for the benefitof its members, which may also be extended to others.

      (3)Every society shall have the power to adopt laws and rules for the governmentof 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 rulesand shall have such other powers as are necessary and incidental to carryinginto effect the objects and purposes of the society. [1987 c.490 §6]

 

      748.123Membership; eligibility; admission process; privileges. (1) A societyshall specify in its laws or rules:

      (a)Eligibility standards for each and every class of membership, provided that, ifbenefits are provided on the lives of children, the minimum age for adultmembership shall be set at not less than 15 years of age and not greater than21 years of age;

      (b)The process for admission to membership for each membership class; and

      (c)The rights and privileges of each membership class, provided that only benefitmembers shall have the right to vote on the management of the insurance affairsof the society.

      (2)A society may also admit social members who shall have no voice or vote in themanagement of the insurance affairs of the society.

      (3)Membership rights in the society are personal to the member and are notassignable. [1987 c.490 §7]

 

      748.125 [1987 c.490 §42;1989 c.413 §18; repealed by 1991 c.182 §20]

 

ORGANIZATIONALAND ADMINISTRATIVE PROVISIONS

 

      748.130Principal office; publications; annual statement synopsis; complaints. (1) Theprincipal office of any domestic society shall be located in this state. Themeetings of its supreme governing body may be held in any state, district,province or territory in which the society has at least one lodge or in anyother location as determined by the supreme governing body, and all businesstransacted at the meetings shall be as valid in all respects as if the meetingswere held in this state. The minutes of the proceedings of the supremegoverning body and of the board of directors shall be in English.

      (2)A society may provide in its laws for an official publication in which anynotice, report or statement required by law to be given to members, includingnotice of election, may be published. The required notices, reports orstatements shall be printed conspicuously in the publication. If the records ofa society show that two or more members have the same mailing address, anofficial publication mailed to one member is deemed to be mailed to all membersat the same address unless a member requests a separate copy.