§ 27-25-38. Exemption of certain societies.
(a) Nothing contained in this chapter shall be construed as to affect or apply to:
(1) Grand or subordinate lodges of societies, orders, or associations now doing business
in this state that provide benefits exclusively through local or subordinate lodges;
(2) Domestic societies that limit membership to employees of a particular city or town,
designated firm, business house, or corporation that provide for a death benefit of
not more than fifteen hundred dollars ($1,500) or disability benefits of not more
than twelve hundred dollars ($1,200) to any person in any one year, or both; or
(3) Domestic societies or associations of a purely religious, charitable, or benevolent
description, that provide for a death benefit of not more than fifteen hundred dollars
($1,500) or for disability benefits of not more than twelve hundred dollars ($1,200)
to any one person in any one year, or both;
(4) Any association, whether a fraternal benefit society or not, that was organized before
1880 and whose members are officers or enlisted, regular or reserve, active, retired,
or honorably discharged members of the armed forces or sea services of the United
States, and a principal purpose of which is to provide insurance and other benefits
to its members and their dependents or beneficiaries.
(b) Any society or association described in subsection (a)(3) or (a)(4) of this section
that provides for death or disability benefits for which benefit certificates are
issued, and any society or association included in subsection (a)(4) of this section
that has more than fifteen hundred (1,500) members, shall not be exempted from the
provisions of this chapter, but shall comply with all of its requirements.
(c) No society that, by the provisions of this section, is exempt from the requirements
of this chapter, except any society described in subsection (a)(2) of this section,
shall give or allow, or promise to give or allow, to any person any compensation for
procuring new members.
(d) Every society that provides for benefits in case of death or disability resulting
solely from accident, and that does not obligate itself to pay natural death or sick
benefits, shall have all of the privileges and be subject to all the applicable provisions
and regulations of this chapter, except that the provisions of this chapter relating
to medical examination, valuations of benefit certificates, and incontestability,
shall not apply to the society.
(e) The commissioner of insurance may require from any society or association, by examination
or otherwise, any information that will enable the commissioner to determine whether
the society or association is exempt from the provisions of this chapter.
(f) Each association that is exempted from insurance regulation under subsection (a)(4)
of this section shall annually, on or before the first day of May, file with the commissioner
a true and complete financial statement, audited by an independent, certified public
accountant or accounting firm, of its financial condition, transactions, and affairs
for the preceding calendar year and pay a fee of ten dollars ($10.00) for filing the
same. Such an association may be required to file quarterly financial statements upon
request by the insurance commissioner, due on or before forty-five (45) days after
the quarter ending. Annual and quarterly statements shall be available for inspection
by the public. If, in the opinion of the commissioner, such an association has not
maintained assets sufficient to meet its liabilities and the minimum capital and surplus
requirements set forth in § 27-2-5, the commissioner may order such association to increase its capital and surplus.
If the association is unable to satisfy such order, the commissioner may order such
association to cease and desist from assuming any additional liabilities in this state
until such time as the association is able to satisfy the capital and surplus requirements
ordered by the commissioner. Such orders shall be subject to judicial review pursuant
to § 27-25-36.
(g) Societies exempted under the provisions of this section shall also be exempt from
all other provisions of the insurance laws of this state.