A domestic society organized after December 31, 1987, must be formed as follows:
1.Seven or more citizens of the United States, a majority of whom are citizens of this
state, who desire to form a fraternal benefit society, may make, sign, and acknowledge
before some officer competent to take acknowledgment of deeds, articles of
incorporation, which must contain:
a.The proposed corporate name of the society, which must not so closely resemble
the name of any society or insurance company as to be misleading or confusing.
b.The purposes for which it is being formed and the mode in which its corporate
powers are to be exercised, within the powers granted by this chapter.
c.The names and residences of the incorporators and the names, residences, and
official titles of all the officers, tru
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A domestic society organized after December 31, 1987, must be formed as follows:
1. Seven or more citizens of the United States, a majority of whom are citizens of this
state, who desire to form a fraternal benefit society, may make, sign, and acknowledge
before some officer competent to take acknowledgment of deeds, articles of
incorporation, which must contain:
a. The proposed corporate name of the society, which must not so closely resemble
the name of any society or insurance company as to be misleading or confusing.
b. The purposes for which it is being formed and the mode in which its corporate
powers are to be exercised, within the powers granted by this chapter.
c. The names and residences of the incorporators and the names, residences, and
official titles of all the officers, trustees, directors, or other persons who are to
exercise the general management of the affairs and funds of the society for the
first year or until election of officers by the supreme governing body to be held not
later than one year from the date of issuance of the permanent certificate of
authority.
2. The articles of incorporation, duly certified copies of the bylaws and rules, copies of all
proposed forms of certificates, applications therefor, circulars to be issued by the
society, and a bond conditioned upon the return to applicants of the advanced
payments if the organization is not completed within one year must be filed with the
commissioner, who may require further information as the commissioner deems
necessary. The bond with sureties approved by the commissioner must be in an
amount of not less than three hundred thousand dollars nor more than one million five
hundred thousand dollars, as required by the commissioner. All documents filed must
be in the English language. If the purposes of the society conform to the requirements
of this chapter and all provisions of the law have been complied with, the
commissioner shall so certify, retain and file the articles of incorporation, and furnish
the incorporators a preliminary certificate of authority authorizing the society to solicit
members as hereinafter provided.
3. No preliminary certificate of authority granted under this section is valid after one year
from its issuance, except as may be authorized by the commissioner upon cause
shown for not more than one additional year, unless the five hundred applicants
required under subsection 4 have been secured and the organization has been
completed as herein provided. The articles of incorporation and all other proceedings
under this chapter become void one year from the date of the preliminary certificate of
authority, or at the expiration of the extended period, unless the society has completed
its organization and received a certificate of authority to do business as hereinafter
provided.
4. 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 regular monthly premium in
accordance with its table of rates, and shall issue to each such applicant a receipt for
the amount so collected. No society may incur any liability other than for the return of
such advance premium, nor issue any certificate, nor pay, allow, offer, or promise to
pay any benefit to any person until:
a. Actual bona fide applications for benefits have been secured from not fewer than
five hundred applicants and any necessary evidence of insurability has been
furnished to and approved by the society.
b. At least ten subordinate lodges have been established into which the five
hundred applicants have been admitted.
c. 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,
containing their names, addresses, date each was admitted, name and number of
the subordinate lodge of which each applicant is a member, and amount of
benefits to be granted and premiums thereof.
d. It has been shown to the commissioner, by sworn statement of the treasurer, or
corresponding officer of such society, that at least five hundred applicants have
each paid in cash at least one regular monthly premium, which premiums in the
aggregate must amount to at least one hundred fifty thousand dollars. The
advance premiums must be held in trust during the period of organization and if
the society does not qualify for a certificate of authority, the premiums must be
returned to the applicants.
5. The commissioner may make such examination and require such further information
as the commissioner deems advisable. Upon presentation of satisfactory evidence that
the society has complied with all the provisions of law, the commissioner shall issue to
the society a certificate of authority allowing the society to transact business under this
chapter. The certificate of authority is prima facie evidence of the existence of the
society at the date of the certificate. A certified copy of the certificate may be given in
evidence with like effect as the original certificate of authority.