Indiana § 27-11-6-7 Payment of owner's equitable proportion of deficiency where society's
reserves are impaired

Indiana Statutes

§ 27-11-6-7 — Payment of owner's equitable proportion of deficiency where society's reserves are impaired

Indiana·Title 27 INSURANCE·Art. 11 FRATERNAL BENEFIT SOCIETIES·Ch. 6 Contractual Benefits

A society shall provide in its laws that if its reserves as to all or any class of certificates become impaired its board of directors or corresponding body may require that there shall be paid by the owner to the society the amount of the owner's equitable proportion of such deficiency as ascertained by its board, and that, if the payment is not made, either:

(1)it shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or

(2)instead of or in combination with subdivision (1), the owner may accept a proportionate reduction in benefits under the certificate. The society may specify the manner of the election and which alternative is to be presumed if no election is made.

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A society shall provide in its laws that if its
reserves as to all or any class of certificates become impaired its board
of directors or corresponding body may require that there shall be paid
by the owner to the society the amount of the owner's equitable
proportion of such deficiency as ascertained by its board, and that, if
the payment is not made, either:
(1) it shall stand as an indebtedness against the certificate and
draw interest not to exceed the rate specified for certificate loans
under the certificates; or
(2) instead of or in combination with subdivision (1), the owner
may accept a proportionate reduction in benefits under the
certificate.
The society may specify the manner of the election and which
alternative is to be presumed if no election is made.

Indiana § 27-11-6-7 (Payment of owner's equitable proportion of deficiency where society's reserves are impaired) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.