Chapter 3921. FRATERNAL BENEFIT SOCIETIES
As used in this chapter:
| (A) |
"Benefit contract" means an agreement, as
described in division (A) of section
3921.19 of the Revised Code, under
which a fraternal benefit society agrees to provide any benefit set forth in
division (A) of section
3921.16 of the Revised Code.
|
| (B) |
"Benefit member" means an
adult member of a fraternal benefit society who is designated by the laws or
rules of the society to be eligible for benefits under a benefit contract.
|
| (C) |
"Certificate" means the
document issued as written evidence of the benefit contract. |
| (D) |
"Laws," unless the context indicates
otherwise, means the articles of incorporation, charter, constitution, and
bylaws, however designated, of a fraternal benefit society. |
| (E) |
"Lodge" means the subordinate member
units of a fraternal benefit society, known as camps, courts, councils,
branches, or by any other designation. |
| (F) |
"Premium" means the premiums, rates, dues, or
other required contributions payable under the certificate. |
| (G) |
"Rules," unless the context indicates
otherwise, means the rules, regulations, or resolutions adopted by the supreme
governing body or board of directors of a fraternal benefit society that are
intended to have general application to all of the members of the society.
|
Effective Date:
01-01-1997 .
Any incorporated society, order, or supreme lodge, without
capital stock, including one exempted under division (A)(2) of section
3921.37 of the Revised Code
whether incorporated or not, conducted solely for the benefit of its members
and their beneficiaries and not for profit, operated on a lodge system with
ritualistic form of work, having a representative form of government, and
providing benefits in accordance with this chapter, is hereby declared to be a
fraternal benefit society.
Effective Date:
01-01-1997 .
| (A) |
For
purposes of section
3921.02 of the Revised Code, a
society is operating on the lodge system if it has a supreme governing body and
subordinate lodges into which members are elected, initiated, or admitted in
accordance with its laws, rules, and ritual. The subordinate lodges shall be
required by the laws of the society to hold regular meetings at least once in
each month in furtherance of the purposes of the society. |
| (B) |
A society may organize and operate lodges for
children under the minimum age for adult membership. Such children shall not be
required to be members of local lodges, nor shall they be given a voice or vote
in the management of the society. |
Effective Date:
01-01-1997 .
For purposes of section
3921.02 of the Revised Code, a
fraternal benefit society has a representative form of government if all of the
following apply:
| (A) |
The society has
a supreme governing body constituted in either of the following ways:
| (1) |
As an assembly composed of delegates
elected directly by the members or at intermediate assemblies or conventions of
members or their representatives, together with other delegates as may be
prescribed by the society's laws. A society may provide for election of
delegates by mail. The elected delegates shall constitute a majority in number,
and shall not have less than a majority of the votes and not less than the
number of votes required to amend the society's laws. The assembly shall be
elected and shall meet at least once every four years, and shall elect a board
of directors to conduct the business of the society between meetings of the
assembly. Vacancies on the board occurring between elections shall be filled in
the manner prescribed by the society's laws. |
| (2) |
As a board composed of persons elected by
the members, either directly or by their representatives in intermediate
assemblies, and any other persons prescribed by the society's laws. A society
may provide for election of the board by mail. Persons elected to the board
shall constitute a majority in number and not less than the number of votes
required to amend the society's laws. Terms of office shall not exceed four
years. The board shall meet at least quarterly to conduct the business of the
society. Vacancies on the board occurring between elections shall be
filled in the manner prescribed by the society's laws. A person filling the
unexpired term of an elected board member shall be considered an elected
member.
|
|
| (B) |
The
officers of the society are elected by the supreme governing body or the board
of directors. |
| (C) |
Only benefit
members are eligible for election to the supreme governing body, the board of
directors, or any intermediate assembly. |
| (D) |
Each voting member has one vote, and no vote may
be cast by proxy. |
Effective Date:
01-01-1997 .
| (A) |
A
fraternal benefit society shall operate for the benefit of its members and
their beneficiaries by providing any of the benefits set forth in section
3921.16 of the Revised Code, and
by operating for social, intellectual, educational, charitable, benevolent,
moral, fraternal, patriotic, or religious purposes for the benefit of its
members and any other persons as determined by the society. Such purposes may
be carried out either directly by the society or indirectly through subsidiary
corporations or affiliated organizations. |
| (B) |
A fraternal benefit society may do any of the
following:
| (1) |
Adopt laws and rules for the
government of the society, the admission of its members, and the management of
its affairs; |
| (2) |
Amend or otherwise
alter its laws and rules; |
| (3) |
Take
any other action necessary and incidental to carrying out the objectives and
purposes of the society. |
|
Effective Date:
01-01-1997 .
| (A) |
A
fraternal benefit society shall specify all of the following in its laws or
rules:
| (1) |
Eligibility standards for each
membership class, provided that if benefits are provided on the lives of
children, the minimum age for adult membership shall be set at not less than
fifteen years of age and not greater than twenty-one years of age; |
| (2) |
The process for admission to membership
for each membership class; |
| (3) |
The
rights and privileges of each membership class, provided that only benefit
members shall have the right to vote on the management of the insurance affairs
of the society. |
|
| (B) |
A
society may admit social members who have no voice or vote in the management of
the insurance affairs of the society. |
| (C) |
Membership rights in a society are personal to the
member and are not assignable. |
Effective Date:
01-01-1997 .
| (A) |
The
principal office of any domestic fraternal benefit society shall be located in
this state. The meetings of its supreme governing body may be held in any
state, district, province, or territory in which the society has at least one
subordinate lodge, or in any other location determined by the supreme governing
body, and all business transacted at such meetings is as valid in all respects
as if the meetings were held in this state. |
| (B) |
The minutes of the proceedings of the supreme
governing body and of the board of directors shall be recorded in the English
language. |
| (C) |
A society may
provide in its laws for an official publication in which any notice, report, or
statement required by law to be given to its members, including notice of
election, may be published. Any such notice, report, or statement shall be
printed conspicuously in the publication. If the records of a society show that
two or more members have the same mailing address, an official publication
mailed to one member is deemed to be mailed to all members that have the same
address unless one of those members requests a separate copy. |
| (D) |
Not later than the first day of June of
each year, each society shall either mail to each benefit member or publish in
the society's official publication a synopsis of the society's annual
statement. The synopsis shall include an explanation of the facts concerning
the condition of the society as disclosed in the annual statement. |
| (E) |
A society may set forth in its laws or
rules a grievance or complaint procedure for its members. |
Effective Date:
01-01-1997 .
| (A) |
The
officers and members of the supreme governing body or any subordinate body of a
fraternal benefit society are not personally liable for any benefits provided
by a society. |
| (B) |
| (1) |
A person may be indemnified and reimbursed by a
society for expenses reasonably incurred by, and liabilities imposed upon, the
person in connection with or arising out of any civil, criminal,
administrative, or investigative action, suit, or other proceeding, or any
threat of such a proceeding, in which the person is involved by reason of the
fact that the person served or is serving as a director, officer, employee, or
agent of the society or that the person served or is serving, at the request of
the society, as a director, officer, employee, or agent of any other firm,
corporation, or organization. |
| (2) |
A person shall not be indemnified or reimbursed in accordance with division
(B)(1) of this section in relation to any matter as to which the person is
ultimately adjudged to be or to have been civilly or criminally liable for a
breach of duty as a director, officer, employee, or agent of the society or to
any matter that has been made the subject of a compromise settlement, unless
the person acted in good faith for a purpose the person reasonably believed to
be in or not opposed to the best interests of the society and, if it is a
criminal proceeding, the person had no reasonable cause to believe that the
person's conduct was unlawful. |
| (3) |
The determination as to whether a person meets the
standards of conduct set forth in division (B)(2) of this section to qualify
for indemnification and reimbursement shall only be made by the supreme
governing body, the board of directors by a majority vote of a quorum
consisting of persons who were not parties to the proceeding, or a court of
competent jurisdiction. The termination of any such action, suit, or other
proceeding by judgment, order, settlement, or conviction, or upon a plea of no
contest, shall not, in itself, create a conclusive presumption that the person
does not meet the standards of conduct required to qualify for indemnification
and reimbursement. |
| (4) |
The right
of indemnification and reimbursement shall not be exclusive of other rights to
which a person may be entitled as a matter of law, and shall inure to the
benefit of the person's heirs, executors, and administrators. |
|
| (C) |
A society may purchase and
maintain insurance on behalf of any person who served or is serving as a
director, officer, employee, or agent of the society, or who served or is
serving, at the request of the society, as a director, officer, employee, or
agent of any other firm, corporation, or organization, against any liability
imposed upon, or expenses incurred by, the person in that capacity or arising
out of that position, whether or not the society may, under division (B) of
this section, indemnify and reimburse the person for such liability or
expenses. |
| (D) |
No director,
officer, employee, member, or volunteer of a society, who serves without
compensation, shall be liable, and no cause of action shall be brought, for
damages resulting from the exercise of the person's judgment or discretion in
connection with the duties or responsibilities of the person, unless the act or
omission involves willful or wanton misconduct. |
Effective Date:
01-01-1997 .
The laws of a fraternal benefit society may provide that no
subordinate body, nor any of its subordinate officers or members, shall have
the power or authority to waive any of the provisions of the laws of the
society. Such provision shall be binding on the society and every member and
beneficiary of a member.
Effective Date:
01-01-1997 .
A domestic fraternal
benefit society organized on or after January 1, 1997, shall be formed as
follows:
| (A) |
Seven or more citizens of the United States, a
majority of whom are residents of this state, who desire to form a fraternal
benefit society, may make, sign, and acknowledge before some officer competent
to take acknowledgement of deeds, articles of incorporation stating all of the
following:
| (1) |
The proposed
corporate name of the society, which name shall not so closely resemble the
name of any society or insurance company as to be misleading or
confusing; |
| (2) |
The purposes
for which it is being formed and the mode in which its corporate powers are to
be exercised. Such purposes shall not include more liberal powers than are
granted by this chapter. |
| (3) |
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 have and exercise the general control of the management of the affairs
and funds of the society for the first year or until the ensuing election at
which all such officers shall be elected by the supreme governing body, which
election shall be held not later than one year from the date of the issuance of
the permanent certificate of authority. |
|
| (B) |
The articles of incorporation, duly certified copies of the society's bylaws
and rules, copies of all proposed forms of certificates, applications for
certificates, and 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, shall be filed with the superintendent of
insurance, who may require any other information the superintendent considers
necessary. The bond with sureties approved by the superintendent shall be in
such amount, not less than three hundred thousand dollars nor more than one
million five hundred thousand dollars, as required by the superintendent. All
documents filed shall be in the English language. If the purposes of the
society conform to the requirements of this chapter and all provisions of the
laws of this state have been complied with, the superintendent 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 provided in this section. |
| (C) |
No
preliminary certificate of authority granted under this section shall be valid
after one year from its date or after such additional period, not exceeding one
year, as may be authorized by the superintendent upon cause shown, unless the
five hundred applicants required in division (D) of this section have been
secured and the organization has been completed as provided in this section.
The articles of incorporation and all other proceedings thereunder shall be
void one year after the date of the preliminary certificate of authority, or at
the expiration of the extended period, unless the society has completed its
organization and has received a certificate of authority to do business as
provided in division (E) of this section. |
| (D) |
Upon receipt of a preliminary certificate of authority from the superintendent,
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
applicant a receipt for the amount so collected. No society shall incur any
liability other than for the return of such advance premium, nor issue any
certificate, nor pay, allow, or offer, or promise to pay or allow, any benefit
to any person until all of the following apply:
| (1) |
Actual bona fide applications for benefits have been secured aggregating at
least two million five hundred thousand dollars on not less than five hundred
applicants, and any necessary evidence of insurability has been furnished to
and approved by the society. |
| (2) |
At
least ten subordinate lodges have been established into which the five hundred
applicants have been admitted. |
| (3) |
There has been submitted to the superintendent, under oath of the president or
secretary, or corresponding officer of the society, a list of such 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 for the benefits. |
| (4) |
It
has been shown to the superintendent, by sworn statement of the treasurer, or
corresponding officer of the society, that at least five hundred applicants
have each paid in cash at least one regular monthly premium as provided in this
section, which premiums in the aggregate amount to at least one hundred fifty
thousand dollars, all of which is credited to the fund or funds from which
benefits are to be paid and no part of which may be used for expenses. These
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
year, as provided in this section, the premiums shall be returned to the
applicants. |
|
| (E) |
The superintendent may make such examination and
require such further information as the superintendent considers advisable.
Upon presentation of satisfactory evidence that the society has complied with
all the provisions of law including the surplus
requirements of section
3921.101 of the Revised
Code, the superintendent shall issue to the society a certificate of
authority to that effect and that the society is authorized to transact
business pursuant to the provisions of this chapter. The certificate of
authority shall be prima facie evidence of the existence of the society at the
date of the certificate. The superintendent shall cause a record of the
certificate of authority to be made. A certified copy of the record may be
given in evidence with like effect as the original certificate of
authority. |
| (F) |
An incorporated society that was organized prior
to January 1, 1997, and that, as of December 31, 1996, is authorized to
transact business in this state shall not be required to reincorporate, and may
exercise all the rights, powers, and privileges conferred in this chapter and
in the society's articles of incorporation to the extent that the articles are
consistent with this chapter. |
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
| (A) |
| (1) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(1) of section
3921.16 of the Revised Code in
this state in a benefit amount of greater than ten thousand dollars shall have
and maintain a surplus of two million five hundred thousand dollars for all
lines written. |
| (2) |
On and after January 1, 2016, a fraternal benefit
society that provides the contractual benefits listed in division (A)(1) of
section 3921.16 of the Revised Code in
this state in a benefit amount of ten thousand dollars or less shall have and
maintain a surplus of five hundred thousand dollars. |
|
| (B) |
| (1) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(2) of section
3921.16 of the Revised Code in
this state in a benefit amount of greater than ten thousand dollars shall have
and maintain a surplus of two million five hundred thousand dollars for all
lines written. |
| (2) |
On and after January 1, 2016, a fraternal benefit
society that provides the contractual benefits listed in division (A)(2) of
section 3921.16 of the Revised Code in
this state in a benefit amount of ten thousand dollars or less shall have and
maintain a surplus of five hundred thousand dollars. |
|
| (C) |
| (1) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(3) of section
3921.16 of the Revised Code in
this state in a benefit amount of greater than ten thousand dollars shall have
and maintain a surplus in the aggregate of two million five hundred thousand
dollars for all lines written. |
| (2) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(3) of section
3921.16 of the Revised Code in
this state in a benefit amount of ten thousand dollars or less shall have and
maintain a surplus of five hundred thousand dollars. |
|
| (D) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(4) of section
3921.16 of the Revised Code in
this state shall have and maintain a surplus of two million five hundred
thousand dollars for all lines written. |
| (E) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(5) of section
3921.16 of the Revised Code in
this state shall have and maintain a surplus of two million five hundred
thousand dollars for all lines written. |
| (F) |
On and
after January 1, 2016, a fraternal benefit society that provides the
contractual benefits listed in division (A)(6) of section
3921.16 of the Revised Code in
this state shall have and maintain a surplus of five hundred thousand
dollars. |
| (G) |
On and after January 1, 2016, a fraternal benefit
society that provides the contractual benefits listed in division (A)(7) of
section 3921.16 of the Revised Code in
this state shall have and maintain a surplus of two million five hundred
thousand dollars for all lines written. |
| (H) |
The
surplus requirements of this section are not cumulative. A society with a
surplus of at least two million five hundred thousand dollars on and after
January 1, 2016, satisfies the surplus requirements of this section. |
Added by
129th General AssemblyFile No.124, HB 341,
§1, eff.
9/6/2012.
| (A) |
A domestic
fraternal benefit society may amend its laws in accordance with the provisions
of its laws by action of its supreme governing body at any regular or special
meeting of that body or, if its laws so provide, by referendum. A referendum
may be held in accordance with the provisions of its laws by the vote of the
voting members of the society, by the vote of delegates or representatives of
voting members, or by the vote of local lodges. A society may provide for
voting by mail. No amendment submitted for adoption by referendum shall be
adopted unless, within six months after the date of submission, a majority of
the members voting have signified their consent to the amendment by one of the
methods specified in this section. |
| (B) |
No amendment to the laws of any domestic society
shall take effect unless approved by the superintendent of insurance, who shall
approve the amendment if the superintendent finds that it has been duly adopted
and is not inconsistent with any requirement of the laws of this state or with
the character, objects, and purposes of the society. Unless the superintendent
disapproves an amendment within sixty days after its filing, the amendment
shall be considered to be approved. The approval or disapproval of the
superintendent shall be in writing and shall be mailed to the secretary or
corresponding officer of the society at its principal office. If the
superintendent disapproves the amendment, the reasons for the disapproval shall
be stated in the written notice. |
| (C) |
Within ninety days after an amendment is approved
by the superintendent, the amendment or a synopsis of the amendment shall be
furnished to all members of the society either by mail or by publication in
full in the official publication of the society. The affidavit of any officer
of the society or of anyone authorized by it to mail an amendment or synopsis,
stating facts that show that the amendment or synopsis has been duly addressed
and mailed, is prima facie evidence that the amendment or synopsis has been
furnished the addressee. |
| (D) |
Every foreign or alien society authorized to do business in this state shall
file with the superintendent a duly certified copy of all amendments of, or
additions to, its laws within ninety days after their enactment. |
| (E) |
Printed copies of the laws as amended,
certified by the secretary or corresponding officer of the society, are prima
facie evidence of their legal adoption. |
Effective Date:
01-01-1997 .
| (A) |
A
fraternal benefit society may create, maintain, and operate charitable,
benevolent, or educational institutions for the benefit of its members and
their families and dependents and for the benefit of children insured by the
society. For such purpose it may own, hold, or lease personal property or real
property located within or without this state, with necessary buildings. The
property shall be reported in every annual statement but shall not be allowed
as an admitted asset of the society, unless, after excluding such asset, its
assets exceed its reserves by at least ten per cent. |
| (B) |
Maintenance, treatment, and proper attendance in
any institution described in division (A) of this section may be furnished free
or for a reasonable charge, but an institution shall not be operated for
profit. The society shall maintain a separate accounting of any income and
disbursements under this section and report them in its annual statement.
|
| (C) |
No society shall own or
operate funeral homes or undertaking establishments. |
Effective Date:
01-01-1997 .
| (A) |
A domestic fraternal benefit society may, by a
reinsurance agreement, cede any individual risk or risks in whole or in part to
an insurer, other than another fraternal benefit society, having the power to
make such reinsurance and authorized to do business in this state, or if not so
authorized, one which is approved by the superintendent of insurance; however,
no society may reinsure substantially all of its insurance in force without the
written permission of the superintendent. It may take credit for the reserves
on the ceded risks to the extent reinsured, but no credit shall be allowed as
an admitted asset or as a deduction from liability, to a ceding society for
reinsurance made, ceded, renewed, or otherwise becoming effective after January
1, 1997, unless the reinsurance is payable by the assuming insurer on the basis
of the liability of the ceding society under the contract or contracts
reinsured without diminution because of the insolvency of the ceding
society. |
| (B) |
Notwithstanding division (A) of this section, a
society may reinsure the risks of another society in a consolidation or merger
approved by the superintendent under section
3921.14 of the Revised
Code. |
| (C) |
A
society with assets of less than five billion dollars that provides contract
benefits of major medical, medicare supplemental, or long-term care pursuant to
division (A)(5) of section
3921.16 of the Revised Code shall
reinsure not less than fifty per cent of the risk arising from those contracts
if the society's risk based capital is less than three hundred per cent. |
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
| (A) |
A domestic
fraternal benefit society may consolidate or merge with any other society by
complying with the provisions of this section. |
| (B) |
The society shall file all of the following with
the superintendent of insurance:
| (1) |
A
certified copy of the written contract containing in full the terms and
conditions of the consolidation or merger; |
| (2) |
A sworn statement by the president and
secretary or corresponding officers of each society showing the society's
financial condition on a date fixed by the superintendent but not earlier than
the thirty-first day of December next preceding the date of the contract;
|
| (3) |
A certificate of such officers,
duly verified by their respective oaths, that the consolidation or merger has
been approved by a two-thirds vote of the supreme governing body of each
society, which vote was conducted at a regular or special meeting of each such
body or, if permitted by the society's laws, by mail; |
| (4) |
Evidence that at least sixty days prior
to the action of the supreme governing body of each society, the text of the
contract has been furnished to all members of each society either by mail or by
publication in full in the official publication of each society.
|
|
| (C) |
If the
superintendent finds that the contract containing the terms and conditions of
the proposed consolidation or merger is in conformity with this section, that
the financial statements are correct, and that the consolidation or merger is
just and equitable to the members of each society, the superintendent shall
approve the contract and issue a certificate to that effect. |
| (D) |
Upon approval by the superintendent
under division (C) of this section, the contract shall be in full force and
effect unless any society that is a party to the contract is incorporated under
the laws of any other state or territory. In that event the consolidation or
merger shall not become effective until it is approved as provided by the laws
of that state or territory and a certificate of the approval is filed with the
superintendent of insurance of this state or, if the laws of that state or
territory contain no such provision, the consolidation or merger shall not
become effective until it is approved by the insurance authority of that other
state or territory and a certificate of the approval is filed with the
superintendent of insurance of this state. |
| (E) |
Upon the consolidation or merger becoming
effective as provided in this section, all the rights, franchises, and
interests of the consolidated or merged societies in and to every species of
property, real, personal, or mixed, and things in action belonging to that
property shall be vested in the society resulting from or remaining after the
consolidation or merger without any other instrument, except that conveyances
of real property may be evidenced by proper deeds, and the title to or interest
in any real estate that is vested under the laws of this state in any of the
societies consolidated or merged, shall not revert or be in any way impaired by
reason of the consolidation or merger, but shall vest absolutely in the society
resulting from or remaining after the consolidation or merger. |
| (F) |
The affidavit of any officer of the
society or of anyone authorized by it to mail any notice or document, stating
that the notice or document has been duly addressed and mailed, is prima facie
evidence that the notice or document has been furnished the addressees.
|
Effective Date:
01-01-1997 .
Any domestic fraternal benefit society may be converted and
licensed as a mutual life insurance company by compliance with all the
applicable requirements of Chapter 3913. of the Revised Code, if the plan of
conversion has been approved by the superintendent of insurance. If the
society's supreme governing body is constituted as an assembly, the plan shall
be prepared in writing by the board of directors and shall set forth in full
the terms and conditions of the conversion. If the society's supreme governing
body is constituted as a board, the plan shall be prepared in writing by
persons designated by the board and shall set forth in full the terms and
conditions of the conversion. The plan shall be submitted to the supreme
governing body of the society at any regular or special meeting, by giving a
complete copy of the plan with the notice of the meeting as provided in the
laws of the society . The affirmative vote of two-thirds of all members of the
supreme governing body at a regular or special meeting shall be necessary for
the approval of the plan. The conversion shall not take effect until approved
by the superintendent, who may give approval if the superintendent finds that
the proposed change is in conformity with the requirements of the law and is
not prejudicial to the certificate holders of the society.
Effective Date:
01-01-1997 .
| (A) |
A
fraternal benefit society may provide any of the following contractual benefits
in any form:
| (4) |
Temporary or permanent disability
benefits; |
| (5) |
Hospital, medical, or
nursing benefits; |
| (6) |
Monument or
tombstone benefits to the memory of deceased members; |
| (7) |
Any other benefit that may be provided by
a life insurer and that is not inconsistent with this chapter, if the provision
of that benefit has received the prior approval of the superintendent of
insurance. |
|
| (B) |
A
society shall specify in its rules those persons who may be issued, or covered
by, the contractual benefits set forth in division (A) of this section,
consistent with providing benefits to members and their dependents. A society
may, upon application of an adult member, provide benefits on the lives of
children under the minimum age for adult membership. |
Effective Date:
01-01-1997 .
| (A) |
The owner
of a benefit contract may at any time change the beneficiary in accordance with
the laws or rules of the fraternal benefit society unless the owner waives this
right by specifically requesting in writing that the beneficiary designation be
irrevocable. A society may, through its laws or rules, limit the scope of
beneficiary designations and shall provide that no revocable beneficiary shall
have or obtain any vested interest in the proceeds of any certificate until the
certificate has become due and payable in conformity with the provisions of the
benefit contract. |
| (B) |
A society
may make provision for the payment of funeral benefits to the extent of such
portion of any payment under a certificate as might reasonably appear to be due
to any person equitably entitled to the payment by reason of having incurred
expense occasioned by the burial of the member; however, the portion paid shall
not exceed ten thousand dollars. |
| (C) |
If, at the death of any person insured under a
benefit contract, there is no lawful beneficiary to whom the proceeds are
payable, the amount of the benefit, except to the extent that funeral benefits
may be paid as provided in division (B) of this section, shall be payable to
the estate of the deceased insured in the same manner as other property that is
not exempt. However, if the owner of the certificate is other than the insured,
the proceeds shall be payable to the owner. |
Effective Date:
01-01-1997 .
No money or other benefit, charity, relief, or aid to be paid,
provided, or rendered by any fraternal benefit society, shall be liable to
attachment, garnishment, or other process, or shall be seized, taken,
appropriated, or applied by any legal or equitable process or operation of law
to pay any debt or liability of a member or beneficiary, or any other person
who may have a right, either before or after payment by the society.
Effective Date:
01-01-1997 .
| (A) |
Each fraternal benefit society authorized to do
business in this state shall issue to each owner of a benefit contract a
certificate specifying the amount of benefits provided under the contract. The
certificate, together with any riders or endorsements attached to the
certificate, the laws of the society, the application for membership, the
application for insurance and declaration of insurability, if any, signed by
the applicant, and all amendments to each such document, constitute the benefit
contract, as of the date of issuance, between the society and the owner, and
the certificate shall so state. A copy of the application for insurance and
declaration of insurability, if any, shall be endorsed upon or attached to the
certificate. All statements made on
the application are representations and not warranties. Any waiver of this
provision is void.
|
| (B) |
Any changes, additions, or amendments to the laws of the society duly made or
enacted subsequent to the issuance of the certificate, shall bind the owner and
the beneficiaries, and shall govern and control the benefit contract in all
respects the same as though such changes, additions, or amendments had been
made prior to and were in force at the time of the application for insurance,
except that no change, addition, or amendment shall destroy or diminish
benefits that the society contracted to give the owner as of the date of
issuance. |
| (C) |
Any person upon whose life a benefit contract is
issued prior to attaining the age of majority shall be bound by the terms of
the application and certificate and by all of the laws and rules of the society
to the same extent as though the age of majority had been attained at the time
of application. |
| (D) |
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 of the following applies:
| (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; |
| (2) |
In lieu of
or in combination with division (D)(1) of this section, 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.
|
|
| (E) |
At least thirty days prior to imposing any indebtedness
upon any owner as provided in division (D) of this section, the board of
directors or corresponding body shall notify the superintendent of insurance in
writing of the board's intent to require the payment and a statement of the
reason that request is necessary. The notice shall be confidential and not a
public record under section
149.43 of the Revised Code. |
| (F) |
| (1) |
Certificates that are delivered or issued for delivery in this state on or
after January 1, 1997, but prior to January 1, 1998, shall comply with the
requirements that would have applied under the laws in effect on December 31,
1996. |
| (2) |
No certificate shall be delivered or issued for
delivery in this state on or after January 1, 1998, unless a copy of the form
is filed with and approved by the superintendent of insurance in accordance
with the provisions of law applicable to like policies issued by life or
sickness and accident insurers in this state. |
| (3) |
Each life, sickness and accident, or disability insurance certificate, and each
annuity certificate, that is delivered or issued for delivery in this state on
or after January 1, 1998, shall comply with the standard contract provision
requirements applicable to like policies issued by life or sickness and
accident insurers in this state, if those requirements are not inconsistent
with this chapter. However, a society may provide in its certificates for a
grace period of one full month for payment of premiums. A certificate shall
also contain a provision that states the amount of premiums that is payable
under the certificate and that sets forth the substance of any sections of the
society's laws or rules in force at the time of issuance of the certificate
which, if violated, will result in the termination or reduction of benefits
payable under the certificate. If the laws of the society provide for the
expulsion or suspension of a member, the certificate shall also contain a
provision stating that any member expelled or suspended, except a member
expelled or suspended because of nonpayment of a premium, may maintain, other
than during the contestable period for material misrepresentation in the
application for membership or insurance, the certificate in force by continuing
payment of the required premium. |
|
| (G) |
Benefit contracts issued on the
lives of persons under the society's minimum age for adult membership may
provide for transfer of control of ownership to the insured at an age specified
in the certificate. A society may require approval of an application for
membership in order to effect this transfer, and may provide in all other
respects for the regulation, government, and control of such certificates and
all rights, obligations, and liabilities incident to and connected with such
certificates. Ownership rights prior to such a transfer shall be specified in
the certificate. |
| (H) |
A society may specify the terms and
conditions on which benefit contracts may be assigned. |
| (I) |
A copy of any of the documents
described in this section, if certified by the secretary or corresponding
officer of the society, is prima facie evidence of the terms and conditions of
the documents. |
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
| (A) |
A fraternal benefit society shall provide an applicant
for contractual benefits a disclosure statement at the time of sale
substantially as follows: ".......... (Name of the fraternal benefit society) IS
LICENSED TO DO BUSINESS IN THE STATE OF OHIO. AS A ........ (not-for-profit,
tax-exempt, self-governing, or membership organization), FRATERNAL BENEFIT
SOCIETIES ARE NOT INCLUDED IN THE OHIO GUARANTY ASSOCIATION. THIS MEANS THAT
FRATERNAL BENEFIT SOCIETIES CANNOT BE ASSESSED FOR THE INSOLVENCY OF OTHER LIFE
INSURERS OR OTHER FRATERNAL BENEFIT SOCIETIES. BY LAW, A FRATERNAL BENEFIT
SOCIETY IS RESPONSIBLE FOR ITS OWN SOLVENCY. IF THERE IS AN IMPAIRMENT OF
RESERVES, A CERTIFICATE HOLDER MAY BE ASSESSED A PROPORTIONATE SHARE OF THE
IMPAIRMENT. THIS PROCESS IS DESCRIBED IN THE CERTIFICATE ISSUED BY THE
SOCIETY."
|
| (B) |
The
statement must be signed by the applicant and maintained in the certificate or
contract file by the fraternal benefit society. The statement may be part of
the society's membership application or certificate or policy
application. |
| (C) |
This section is applicable only to new business
written by a fraternal benefit society after the effective date of this
section. |
Added by
129th General AssemblyFile No.124, HB 341,
§1, eff.
9/6/2012.
| (A) |
In the
case of certificates that are delivered or issued for delivery in this state on
or after January 1, 1997, but prior to January 1, 1998, the value of every
paid-up nonforfeiture benefit and the amount of any cash surrender value, loan,
or other option granted shall comply with the requirements that would have
applied under the laws in effect on December 31, 1996. |
| (B) |
In the case of certificates that are delivered or
issued for delivery in this state on or after January 1, 1998, for which
reserves are computed on the commissioner's 1941 standard ordinary mortality
table, the commissioner's 1941 standard industrial table, the commissioner's
1958 standard ordinary mortality table, the commissioner's 1980 standard
mortality table, or any more recent table made applicable to life insurers,
every paid-up nonforfeiture benefit and the amount of any cash surrender value,
loan, or other option granted shall not be less than the corresponding amount
ascertained in accordance with the laws of this state applicable to life
insurers issuing policies containing like benefits based upon such tables.
|
Effective Date:
01-01-1997 .
| (A) |
Except as provided in division (B) of this section,
a fraternal benefit society shall invest its funds only in such
investments as are authorized by section 3907.14 of the Revised Code for the
investment of assets of life insurers and subject to the limitations thereon.
Any foreign or alien society permitted or seeking to do business in this state
that invests its funds in accordance with the laws of the state, district,
territory, country, or province in which it is incorporated, is held to meet
the requirements of this section for the investment of funds. |
| (B) |
A fraternal benefit society may seek permission from
the superintendent of insurance to invest funds under Chapter 3906. of the
Revised Code and may invest funds under that chapter if such permission is
granted. |
Amended by
130th General Assembly File No. TBD, SB 140, §1,
eff. 9/4/2014.
Effective Date: 01-01-1997
.
| (A) |
A fraternal benefit society shall hold, invest,
and disburse all assets for the use and benefit of the society. No member or
beneficiary shall have or acquire individual rights to the assets, or be
entitled to any apportionment on the surrender of any part of the assets,
except as provided in the benefit contract. |
| (B) |
A
society may create, maintain, invest, disburse, and apply any special fund or
funds necessary to carry out any purpose permitted by the laws of the society.
No society shall, directly or indirectly, pay or use, or offer, consent, or
agree to pay or use, any of its funds, money, or property for or in aid of any
political party, campaign committee, political action committee, continuing
association, or any other political organization. |
| (C) |
A
society may, pursuant to resolution of its supreme governing body, establish
and operate one or more separate accounts and issue contracts on a variable
basis, subject to the provisions of law regulating life insurers that establish
such accounts and issue such contracts including those
described in section
3911.011 of the Revised
Code. To the extent the society considers it necessary in order to comply
with any applicable federal or state law, or any rule issued under that law,
the society may do any of the following:
| (1) |
Adopt special procedures for the conduct of the business and affairs of a
separate account; |
| (2) |
For persons
having beneficial interests in the account, provide special voting and other
rights, including special rights and procedures relating to investment policy,
investment advisory services, selection of certified public accountants, and
selection of a committee to manage the business and affairs of the
account; |
| (3) |
Issue
contracts on a variable basis to which divisions (B) and (D) of section
3921.19 of the Revised Code do not
apply. |
|
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
Except as provided in this chapter, fraternal benefit societies
shall be governed by this chapter and are exempt from all other provisions of
the insurance laws of this state, not only in governmental relations with the
state, but for every other purpose. No law shall apply to societies unless they
are expressly designated in the law.
Effective Date:
01-01-1997 .
Every fraternal benefit society organized or licensed under
this chapter is hereby declared to be a charitable and benevolent institution,
and all of its funds are exempt from all state, county, district, municipal,
and school taxes other than franchise taxes and taxes on real estate.
Effective Date:
01-01-1997 .
| (A) |
The
standards of valuation for certificates that are delivered or issued for
delivery in this state on or after January 1, 1997, but prior to January 1,
1998, shall be those standards that would have applied under the laws in effect
on December 31, 1996. |
| (B) |
The
minimum standards of valuation for certificates of life insurance, annuity and
pure endowment certificates, total and permanent disability benefit
certificates, accidental death benefit certificates, and noncancelable accident
and health benefit certificates, that are delivered or issued for delivery in
this state on or after January 1, 1998, shall comply with the valuation methods
and standards, including interest assumptions, that are applicable to life
insurers that issue policies containing like benefits. |
| (C) |
The superintendent of insurance may, in the
superintendent's discretion, accept other standards for valuation if the
superintendent finds that the reserves produced by such standards will not be
less in the aggregate than reserves computed in accordance with the minimum
valuation standards prescribed in this section. The superintendent may, in the
superintendent's discretion, vary the standards of mortality applicable to all
benefit contracts on substandard lives or other extra hazardous lives by any
society authorized to do business in this state. |
| (D) |
Any society, with the consent of the supervising
insurance official of its state of domicile and under any conditions that the
superintendent may impose, may establish and maintain reserves on its
certificates in excess of the reserves required, provided that the contractual
rights of any benefit member are not affected by such action. |
Effective Date:
01-01-1997 .
| (A) |
Each
fraternal benefit society transacting business in this state shall annually
file with the superintendent of insurance a true statement of its financial
condition, transactions, and affairs for the preceding calendar year. The
statement shall be filed on or before the first day of March. The statement
shall be in general form and content as approved by the national association of
insurance commissioners for fraternal benefit societies, and as supplemented by
additional information required by the superintendent. |
| (B) |
As part of the annual statement required under
division (A) of this section, each society shall, on or before the first day of
March, file with the superintendent a valuation of its certificates in force on
the immediately preceding thirty-first day of December. The superintendent may,
in the superintendent's discretion for cause shown, extend the deadline for
filing the valuation for a period of not more than two calendar months. The
valuation shall be prepared in accordance with the standards set forth in
section 3921.25 of the Revised Code. The
valuation and underlying data shall be certified by a qualified actuary or
verified, at the expense of the society, by an actuary employed or appointed by
the insurance regulatory authority of the society's state of domicile.
|
| (C) |
If a society fails to comply
with division (A) or (B) of this section, the superintendent shall impose a
fine of one hundred dollars for each day the noncompliance continues. In
addition, the superintendent shall issue an order requiring the society to
cease doing business in this state until the society complies with this
section. Notice of the order shall be mailed by regular mail, immediately after
its issuance by the superintendent, to the society subject to the order.
|
| (D) |
Any fine collected pursuant
to division (C) of this section shall be paid into the state treasury to the
credit of the department of insurance operating fund created under section
3901.021 of the Revised Code.
|
Effective Date:
01-01-1997 .
Fraternal benefit societies that are authorized to transact
business in this state on December 31, 1996, may continue such business until
April 1, 1997. The authority of those societies and all societies licensed on
or after January 1, 1997, may be renewed annually, but in all cases shall
terminate on the first day of the succeeding April. However, a license so
issued shall continue in full force and effect until a renewal of the license
has been specifically refused. For each license or renewal the society shall
pay the superintendent of insurance a fee of twenty-five dollars. A duly
certified copy or duplicate of such license is prima facie evidence that the
licensee is a fraternal benefit society within the meaning of this chapter.
Effective Date:
01-01-1997 .
| (A) |
| (1) |
Each
domestic fraternal benefit society and each applicant for a certificate of
incorporation as a domestic fraternal benefit society shall be subject to
examination by the superintendent of insurance in accordance with section
3901.07 of the Revised Code.
Section 3901.07 of the Revised Code shall
govern every aspect of the examination, including the circumstances under and
frequency with which it is conducted, and the authority of the superintendent
and any examiner or other person appointed by the superintendent. |
| (2) |
| (a) |
A
domestic fraternal benefit society shall be liable for the payment of any
additional expense of an examination resulting from unreasonable delays by the
society in fulfilling a request for documents or information by the examiner
conducting the examination. A delay is deemed unreasonable if the examiner has
made two separate unfulfilled requests for the same documents or information. A
request for records or information from an examiner shall allow the fraternal
benefit society a minimum of ten business days to fulfill the request. |
| (b) |
In the
event of an unreasonable delay, the examiner shall notify the superintendent,
who shall set a hearing, under Chapter 119. of the Revised Code, to determine
if there has been an unreasonable delay because of the fraternal benefit
society's response to a request for documents or information and to calculate
the additional expense incurred by the superintendent as a result of the
unreasonable delay. |
|
| (3) |
A summary of the examination of
the superintendent and any recommendations or statements of the superintendent
that accompany the report, shall be read at the first meeting of the board of
directors or corresponding body of the society following the receipt thereof,
and if directed so to do by the superintendent, shall also be read at the first
meeting of the supreme legislative or governing body of the society following
the receipt thereof. A copy of the report, recommendations, and statements of
the superintendent shall be furnished by the society to each member of the
board of directors or other governing body. |
|
| (B) |
Each foreign or alien fraternal benefit society transacting or applying for
admission to transact business in this state shall be subject to examination by
the superintendent in accordance with section
3901.07 of the Revised Code.
Section 3901.07 of the Revised Code shall
govern every aspect of the examination, including the circumstances under and
frequency with which it is conducted, the authority of the superintendent and
any examiner or other person appointed by the superintendent, the liability for
the assessment of expenses incurred in conducting the examination, and the
remittance of the assessment to the superintendent's examination
fund. |
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
Effective Date:
03-22-2001 .
No foreign or alien
fraternal benefit society shall transact business in this state without a
license issued by the superintendent of insurance. Any such society may be
licensed to transact business in this state upon filing all of the following
with the superintendent:
| (A) |
A duly certified copy of its articles of
incorporation; |
| (B) |
A copy of its bylaws certified by its secretary or
corresponding officer; |
| (C) |
A
written appointment of an
agent as prescribed in section
3921.35 of the Revised
Code; |
| (D) |
A statement of its business made under oath of its
president and secretary or corresponding officers in a form prescribed by the
superintendent and duly verified by an examination made by the supervising
insurance official of its state of domicile or of any other state, district,
territory, province, or country, which examination is satisfactory to the
superintendent; |
| (E) |
Certification from the proper official of its
state, district, territory, province, or country of domicile that the society
is legally incorporated and licensed to transact business in that state,
district, territory, province, or country; |
| (F) |
Copies of its certificate forms; |
| (G) |
A
description of its investments that shows that its assets are invested in
accordance with this chapter; |
| (H) |
Any other information the superintendent considers necessary. |
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
If the superintendent of insurance
finds, upon investigation, that a domestic fraternal benefit society has
exceeded its powers, has failed to comply with any provision of this chapter,
is not fulfilling its contracts in good faith, has a membership of less than
four hundred after an existence of one year or more, or is conducting business
fraudulently or in a manner hazardous to its members, creditors, the public, or
the business, the superintendent shall issue a written notice to the society
that sets forth the deficiency and the reasons for the superintendent's
dissatisfaction, and that requires the society to correct the deficiency within
thirty days after receipt of the notice. If the society fails to correct the
deficiency within that thirty-day period, the superintendent shall
commence an action against the society under
sections 3903.01 to
3903.59 of the Revised
Code.
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 06-30-1997
.
If the superintendent of insurance
finds, upon investigation, that a foreign or alien fraternal benefit society
transacting or applying to transact business in this state has exceeded its
powers, has failed to comply with any provision of this chapter, is not
fulfilling its contracts in good faith, or is conducting its business
fraudulently or in a manner hazardous to its members or creditors or the
public, the superintendent shall issue a written notice to the society that
sets forth the deficiency and the reasons for the superintendent's
dissatisfaction, and that requires the society to correct the deficiency within
thirty days after receipt of the notice. If the society fails to correct the
deficiency within that thirty-day period, the superintendent shall
commence an action against the society under section
3903.71 of the Revised
Code.
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 01-01-1997
.
Effective Date:
06-30-1997 .
| (A) |
Agents of fraternal benefit societies shall be
licensed in the manner provided for agents of insurance companies in Chapter
3905. of the Revised Code, and shall be required to complete continuing
education as set forth in section
3905.481 of the Revised Code
starting with the twenty-four-month period commencing on the first day of
January of 1999. However, no written or other examination shall be required of
any person whose application for the original issuance of a license to
represent a fraternal benefit society as its agent was filed with the
superintendent of insurance prior to January 1, 1997. |
| (B) |
The following persons shall not be required to be licensed in accordance with
division (A) of this section:
| (1) |
Any
regularly salaried officer, employee, or member of a licensed society who
devotes substantially all of the person's services to activities other than the
solicitation of fraternal insurance contracts from the public, and who receives
for the solicitation of any such contracts no commission or other compensation
directly dependent upon the amount of business obtained. The officers, employees,
and members described in division (B)(1) of this section also are not subject
to examination by the superintendent under Chapter 3905. of the Revised
Code.
|
| (2) |
Any agent or
representative of a society who devotes, or intends to devote, less than fifty
per cent of the person's time to the solicitation and procurement of insurance
contracts for the society. For purposes of division (B)(2) of this section, any
person who, in the preceding calendar year, has received a commission or other
compensation for soliciting and procuring any of the following contracts on
behalf of an individual society is presumed to have devoted, or to have
intended to devote, fifty per cent of the person's time to the solicitation and
procurement of insurance contracts:
| (a) |
Life insurance contracts that, in the aggregate, exceeded two hundred thousand
dollars of coverage for all lives insured for the preceding calendar
year; |
| (b) |
A permanent
life insurance contract offering more than ten thousand dollars of coverage on
an individual life; |
| (c) |
A term life
insurance contract offering more than fifty thousand dollars of coverage on an
individual life; |
| (d) |
Any
insurance contracts other than life that the society may write and that insure
the individual lives of more than twenty-five individuals; |
| (e) |
Any
contract issued on a variable basis, as authorized by division (C) of section
3921.22 of the Revised
Code. |
|
|
| (C) |
Notwithstanding division (B) of this section, any person selling an annuity
contract under the authority of division (A)(3) of section
3921.16 of the Revised Code shall
be licensed pursuant to Chapter 3905. of the Revised Code. |
Amended by
129th General AssemblyFile No.124, HB 341,
§1, eff.
1/1/2013.
Effective Date: 06-30-1998
.
On receipt of a notice pursuant to section
3123.43 of the Revised Code, the
superintendent of insurance shall comply with sections
3123.41 to
3123.50 of the Revised Code and
any applicable rules adopted under section
3123.63 of the Revised Code with
respect to a license issued pursuant to this chapter.
Effective Date:
03-22-2001 .
Sections
3901.19 to
3901.26 of the Revised Code, and
any other provision of Title XXXIX [39] of the Revised Code that prohibits life
or sickness and accident insurers from engaging in any unfair and deceptive act
or practice in the business of insurance, continue on and after January 1,
1997, to apply to every fraternal benefit society authorized to do business in
this state. However, nothing in any of those sections or provisions shall be
construed as applying to or otherwise affecting either the right of any society
to determine its eligibility requirements for membership or the offering of
benefits exclusively to members or persons eligible for membership in the
society by a subsidiary corporation or affiliated organization of the society.
Effective Date:
01-01-1997 .
| (A) |
Any fraternal benefit society authorized to transact
business in this state shall have and maintain an agent upon whom may be served
any process, notice, or demand required or permitted by law to be served upon a
society. The agent required under this section may be a natural
person residing in this state or a corporation holding a license under the laws
of this state that is authorized by its articles of incorporation to act as an
agent and that maintains a business address in this state. A statutory agent is
not required to be a licensed insurance agent.
|
| (B) |
The
written appointment of an agent shall be in the form the superintendent of
insurance prescribes and may include a consent to service of process. The appointment shall set forth the name and complete
address of the agent. The agent shall reside or maintain a business address
within this state.
|
| (C) |
The
superintendent shall keep a record of the fraternal benefit societies
transacting business in this state and the name and address of their respective
agents. |
| (D) |
| (1) |
If any
agent dies, moves out of the state, or resigns, the society immediately shall
appoint another agent and file with the superintendent a written appointment as
described in division (B) of this section. |
| (2) |
If an
agent changes the agent's address, the society or agent immediately shall
notify the superintendent of the change, and shall set forth the agent's new
address, on a form prescribed by the superintendent. |
|
| (E) |
An
agent may resign by filing with the superintendent a written notice signed by
the agent. The agent shall send a copy of the notice to the society at the
current or last known address of the society's principal office prior to the
date the notice is filed with the superintendent. The notice required under this division shall set forth the
society's name, the current or last known address of the society, the name and
address of the agent, the resignation of the agent, and a statement that a copy
of the notice has been sent to the society and the date the copy was
sent. The agent's authority to represent the fraternal benefit
society shall terminate thirty days after the notice is filed with the
superintendent under this division.
|
| (F) |
A
society may revoke the appointment of an agent by filing with the
superintendent a written appointment of another agent and a statement that the
appointment of the former agent is revoked. The authority of the agent whose
appointment has been revoked shall terminate thirty days after the notice
required under this division is filed with the superintendent. |
| (G) |
Any
process, notice, or demand required or permitted by law to be served upon a
society may be served by delivering a copy of the process, notice, or demand to
the agent of record at the address appearing in the superintendent's
records. If the agent cannot be found, the agent no longer has that
address, or the society has failed to maintain an agent as required by this
section, the party desiring that the process, notice, or demand be served, or
its agent, may file with the superintendent an affidavit stating that one of
the foregoing conditions exists and stating the most recent address of the
society that the party, after diligent search, has been able to
ascertain. Upon the filing of the affidavit, service of process,
notice, or demand may be initiated upon the superintendent as the society's
agent by delivering two copies of the process, notice, or demand to the
superintendent. The superintendent shall give notice to the society at its
principal office as shown in the superintendent's records or at the address set
forth in the affidavit. The superintendent shall give notice by regular mail
with a copy of the process, notice, or demand enclosed. After the
superintendent has mailed the appropriate documents, service upon the society
is deemed complete.
|
| (H) |
The
superintendent shall keep a record of each process, notice, and demand
delivered to the superintendent under division (G) of this section or any other
law of this state that authorizes service upon the superintendent. |
| (I) |
This
section does not limit or affect the right to serve any process, notice, or
demand upon a society in any other manner permitted by law. |
| (J) |
A
society shall include a fee of five dollars with any change of agent
appointment or change of address. This division does not apply to an agent
appointment filed with an original application for a certificate of
authority. |
| (K) |
If a society fails to appoint or maintain an agent or
to notify the superintendent of an agent's change of address, the
superintendent shall provide notice of that failure to the society by certified
mail. If the society does not remedy the society's failure within thirty days
after the date of the mailing of the notice or within any additional time the
superintendent allows, the superintendent shall fine the society not less than
twenty-five dollars nor more than two hundred dollars per violation. The
superintendent also may charge a society a fifty-dollar fee for each time the
superintendent is required to give notice to the society in accordance with
division (G) of this section. |
| (L) |
The
superintendent shall pay all moneys collected by the superintendent in
accordance with this section into the state treasury to the credit of the
department of insurance operating fund. |
Added by
129th General AssemblyFile No.124, HB 341,
§1, eff.
9/6/2012.
Effective Date: 01-01-1997
.
| (A) |
No person
shall cause or permit to be made, issued, or circulated in any form any of the
following:
| (1) |
Any misrepresentation or false
or misleading statement concerning the terms, benefits, or advantages of any
fraternal insurance contract now issued or to be issued in this state, or the
financial condition of any fraternal benefit society; |
| (2) |
Any false or misleading estimate or
statement concerning the dividends or shares of surplus paid or to be paid by
any society on any insurance contract; |
| (3) |
Any incomplete comparison of an insurance
contract of one society with an insurance contract of another society or
insurer for the purpose of inducing the lapse, forfeiture, or surrender of any
insurance contract. A comparison of insurance contracts is incomplete if either
of the following applies:
| (a) |
The comparison
does not compare in detail the gross rates, the gross rates less any dividend
or other reduction allowed at the date of the comparison, any increase in cash
values, and all the benefits provided by each contract for the possible
duration of the contract as determined by the life expectancy of the insured;
|
| (b) |
The comparison omits from
consideration any benefit or value provided in the contract, any differences as
to amount or period of rates, or any differences in limitations or conditions
or other provisions that directly or indirectly affect the benefits. In any determination of the incompleteness or misleading
character of any comparison or statement, it is presumed that the insured has
no knowledge of any of the contents of the contract involved.
|
|
|
| (B) |
No
person shall solicit membership for, or in any manner assist in procuring
membership in, any society not licensed to do business in this state.
|
| (C) |
No person shall purposely
violate, or neglect or refuse to comply with, any provision of this chapter for
which a penalty is not otherwise prescribed. |
Effective Date:
01-01-1997 .
| (A) |
Nothing in
this chapter shall be construed as applying to or otherwise affecting any of
the following:
| (1) |
Grand or subordinate
lodges of societies, orders, or associations doing business in this state that
provide benefits exclusively through local or subordinate lodges; |
| (2) |
Orders, societies, or associations that
admit to membership only persons engaged in one or more crafts or hazardous
occupations, in the same or similar lines of business, insuring only their own
members, their families and descendants of members, and the ladies' societies
or ladies' auxiliaries to such orders, societies, or associations; |
| (3) |
Domestic societies that limit their
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 four
hundred dollars or disability benefits of not more than three hundred fifty
dollars to any person in any one year, or both; |
| (4) |
Domestic societies or associations of a
purely religious, charitable, or benevolent description, that provide for a
death benefit of not more than four hundred dollars or for disability benefits
of not more than three hundred fifty dollars to any one person in any one year,
or both. |
|
| (B) |
No society
that, pursuant to division (A) of this section, is exempt from the requirements
of this chapter, except any society described in division (A)(2) of this
section, shall give or allow, or promise to give or allow, to any person any
compensation for procuring new members. |
| (C) |
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 of this chapter,
except for the provisions and rules relating to medical examination, valuations
of benefit certificates, and incontestability. |
| (D) |
The superintendent of insurance may require from
any society or association, by examination or otherwise, such information as
will enable the superintendent to determine whether the society or association
is exempt from the requirements of this chapter. |
| (E) |
Societies that, pursuant to division (A) of this
section, are exempt from the requirements of this chapter shall also be exempt
from all other provisions of the insurance laws of this state. |
Effective Date:
01-01-1997 .
All decisions and findings of the superintendent of insurance
made under the provisions of this chapter are subject to review by the proper
proceedings in any court of competent jurisdiction in this state.
Effective Date:
01-01-1997 .
Effective Date:
01-01-1997 .
Effective Date:
01-01-1997 .
Effective Date:
01-01-1974 .
Effective Date:
01-01-1997 .
| (A) |
Whoever
violates division (A) of section
3921.36 of the Revised Code or
knowingly receives any compensation or commission by or in consequence of such
violation, is guilty of a misdemeanor of the first degree, and shall in
addition be liable for a civil penalty in the amount of three times the sum
received by the violator as compensation or commission, which penalty may be
sued for and recovered by any person or society aggrieved for the person's or
society's own use and benefit in accordance with the provisions of civil
practice. |
| (B) |
Whoever violates
division (B) of section
3921.36 of the Revised Code shall
be fined not less than fifty nor more than two hundred dollars. |
| (C) |
Whoever violates division (C) of section
3921.36 of the Revised Code shall
be fined not more than two hundred dollars. |
Effective Date:
01-01-1997 .