§ 27-25-38 - Exemption of certain societies. - Rhode Island Statutes

SECTION 27-25-38

   § 27-25-38  Exemption of certain societies.– (a) Nothing contained in this chapter shall be construed as to affect or applyto:

   (1) Grand or subordinate lodges of societies, orders, orassociations now doing business in this state which provide benefitsexclusively through local or subordinate lodges;

   (2) Orders, societies, or associations which admit tomembership only persons engaged in one or more crafts or hazardous occupations,in the same or similar lines of business, insuring only their own members andtheir families, and the ladies' societies or ladies' auxiliaries to thoseorders, societies, or associations;

   (3) Domestic societies which limit their membership toemployees of a particular city or town, designated firm, business house, orcorporation which provide for a death benefit of not more than fifteen hundreddollars ($1500) or disability benefits of not more than twelve hundred dollars($1200) to any person in any one year, or both; or

   (4) Domestic societies or associations of a purely religious,charitable, or benevolent description, which provide for a death benefit of notmore than fifteen hundred dollars ($1500) or for disability benefits of notmore than twelve hundred dollars ($1200) to any one person in any one year, orboth.

   (b) Any society or association described in subdivision(a)(3) or (a)(4) of this section which provides for death or disabilitybenefits for which benefit certificates are issued, and any society orassociation included in subdivision (a)(4) of this section which has more thanfifteen hundred (1500) members, shall not be exempted from the provisions ofthis chapter but shall comply with all of its requirements.

   (c) No society which, by the provisions of this section, isexempt from the requirements of this chapter, except any society described insubdivision (a)(2) of this section, shall give or allow, or promise to give orallow, to any person any compensation for procuring new members.

   (d) Every society which provides for benefits in case ofdeath or disability resulting solely from accident, and which does not obligateitself to pay natural death or sick benefits, shall have all of the privilegesand be subject to all the applicable provisions and regulations of this chapterexcept that the provisions of this chapter relating to medical examination,valuations of benefit certificates, and incontestability, shall not apply tothe society.

   (e) The commissioner of insurance may require from anysociety or association, by examination or otherwise, any information that willenable the commissioner to determine whether the society or association isexempt from the provisions of this chapter.

   (f) Societies exempted under the provisions of this sectionshall also be exempt from all other provisions of the insurance laws of thisstate.