§ 27-11-4-5 — Solicitation of members; liabilities incurred upon receipt of preliminary certificate

Upon receipt of a preliminary certificate of
authority from the commissioner, the society may solicit members for
the purpose of completing its organization, shall collect from each
applicant the amount of not less than one (1) regular monthly premium
in accordance with its table of rates, and shall issue to each applicant
a receipt for the amount collected. No society shall incur any liability
other than for the return of the advance premium, nor issue any
certificate, nor pay, allow, or offer or promise to pay or allow any
benefit to any person until:
(1) actual bona fide applications for benefits have been secured
on not less than five hundred (500) applicants, and any necessary
evidence of insurability has been furnished to and approved by
the society;
(2) at least ten (10) subordinate lodges have been established into
which the five hundred (500) applicants have been admitted;
(3) there has been submitted to the commissioner, under oath of
the president or secretary, or corresponding officer of the society,
a list of the applicants, giving their names, addresses, date each
was admitted, name and number of the subordinate lodge of
which each applicant is a member, amount of benefits to be
granted, and premiums therefor; and
(4) it shall have been shown to the commissioner, by sworn
statement of the treasurer, or corresponding officer of such
society, that at least five hundred (500) applicants have each paid
in cash at least one (1) regular monthly premium, which
premiums in the aggregate amount to at least one hundred fifty
thousand dollars ($150,000). The advance premiums shall be held
in trust during the period of organization and, if the society has
not qualified for a certificate of authority within one (1) year as
provided in this chapter, the premiums shall be returned to the
applicants.

Legislative History

As added by P.L.262-1985, SEC.1.