§ 4522 — Exemptions of certain organizations

New York § 4522

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 45: Fraternal Benefit Societies

Text

§ 4522. Exemptions of certain organizations. (a) Except as provided in\nsubsection (b) hereof the following societies, corporations,\nunincorporated associations, and other organizations shall be exempt\nfrom the provisions of this chapter requiring the obtaining of a license\nto do an insurance business and from all other requirements of this\nchapter except those provided in subsections (c) and (d) hereof and\nexcept section three thousand two hundred nine and the provisions of\narticle seventy-four of this chapter:\n (1) Organizations of workmen of the same trade or of several allied\ntrades maintained for the purpose of securing by united action the most\nfavorable conditions as regards wages, hours and conditions of labor,\nand the protection of their individual rights in the prosecution of\ntheir trade or trades.\n (2) Organizations which limit their membership to the employees of a\nparticular city or town, or of a designated business corporation or\nfirm, or of one or more business corporations or firms having business\ninterests in common, except as otherwise provided in subsection (f) of\nsection one thousand one hundred eight of this chapter. Any such\norganization which limits its membership to the employees of a\ncorporation having more than five thousand employees may provide for\nhospital, surgical and medical benefits for the employee, his or her\nspouse, and his or her child or children not over eighteen years of age.\n (3) Organizations of a religious, charitable, benevolent or fraternal\ncharacter, which are not organized or maintained primarily for the\npurpose of providing insurance benefits, and which have not more than\nfifteen hundred members who are or may be entitled to any insurance\nbenefits unless the organization obligates itself to pay a death benefit\nof more than five hundred dollars on the death of any one member, or\ndisability benefits of more than three hundred fifty dollars to any one\nperson in any one year, or both.\n (4) Organizations which limit their membership to persons engaged in\none or more occupations in the same or similar lines of business and\nwhich, together with their legal predecessors or affiliated bodies\ncontinuously paid or provided for the payment of death or disability\nbenefits to their members for a period of not less than fifteen years\nprior to January first, nineteen hundred forty.\n (5) Any organization of a religious, charitable, benevolent or\nfraternal character, which is not organized or maintained primarily for\nthe purpose of providing insurance benefits, which have furnished\nhospital benefits to its members under a plan where the maximum charge\nfor such benefits is not in excess of two dollars per annum and which\nwas in operation for ten years prior to March first, nineteen hundred\nforty-one, or which obligates itself to pay a death benefit of not more\nthan one hundred dollars on the death of any one member, and has been in\noperation for more than twenty-five years prior to March first, nineteen\nhundred fifty.\n (6) Organizations which limit their membership to members of a\nfraternal benefit society organized under the provisions of this chapter\nand which provide either cemetery benefits, or funeral benefits not in\nexcess of seventy-five dollars for any one interment, or both, for such\nmember, his or her spouse or his or her child or children not over\ntwenty-one years of age.\n (b) The foregoing exemptions shall not apply to:\n (1) any organization which is incorporated or organized under the laws\nof, or has its principal office or headquarters in, any province or\ncountry outside of the United States,\n (2) any organization, except one specified in paragraph two of\nsubsection (a) hereof, which makes or issues annuity contracts,\n (3) any organization of any of the kinds specified in paragraph two,\nthree or five of subsection (a) hereof if it gives or allows, or\npromises to give or allow, to any person any compensation for procuring\nnew members, or\n (4) any subordinate lodge of any society providing insurance benefits\nto its members.\n (c) The superintendent may require from any organization claiming\nexemption under subsection (a) hereof, by examination in accordance with\nsection three hundred ten of this chapter, or otherwise, such\ninformation as will enable him to determine whether such organization is\nexempt under this section.\n (d) No organization of the kinds hereinbefore specified which\nobligates itself to pay life insurance or accident or health or\ndisability insurance benefits to its members shall make, issue or\ndeliver in this state any certificate or other written evidence of such\nobligation unless the same shall have conspicuously printed on the first\npage thereof in bold-faced type not smaller than ten point the following\nstatement: "This organization does not operate under the supervision of\nthe New York State Department of Financial Services."\n