31A-17-405 - Fraternal rates and reserves. - Utah Statutes

31A-17-405. Fraternal rates and reserves.
(1) A fraternal may be organized for the transaction of business on a plan set forth in thecontract which provides for sufficient contributions by each member each year to pay themember's share of the actual death claims of the year, through advance payments gradedaccording to a mortality table approved by the commissioner, without any reserve, or with areserve which may accumulate from overpayments of individual members. If this type of reservedoes accumulate, each member shall be informed each year of the member's credit and of the costof the member's insurance.
(2) Each fraternal shall collect regular premiums for each coverage it provides atadequate rates that are approved by the commissioner or conform to standards set by rulesadopted by the commissioner.
(3) The reserves of a fraternal are subject to the same requirements as those of Chapter 5insurers writing the same coverages, except that the commissioner may authorize the use ofsuitable fraternal mortality tables or other appropriate tables instead of the tables used by Chapter5 insurers.

Enacted by Chapter 242, 1985 General Session