Chapter 117
2013 -- H 5085 SUBSTITUTE A
Enacted 06/19/13
A N A C T
RELATING TO
INSURANCE - FRATERNAL CODE
Introduced By: Representatives Gallison, Azzinaro, Marshall, Messier, and Fellela
Date Introduced: January 16, 2013
It is enacted by the
General Assembly as follows:
SECTION 1. Section 27-25-38 of the General Laws in Chapter
27-25 entitled "Rhode
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 which provide benefits exclusively through
local or subordinate lodges;
(2) Orders, societies,
or associations which 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 and their families, and the ladies'
societies or ladies' auxiliaries to those
orders, societies, or associations;
(3) Domestic societies
which limit their membership to employees of a particular city or
town, designated firm, business house, or corporation
which provide for a death benefit of not
more than fifteen hundred dollars ($1500) or disability
benefits of not more than twelve hundred
dollars ($1200) to any person in any one year, or both; or
(4) Domestic societies
or associations of a purely religious, charitable, or benevolent
description, which provide for a death benefit of not more than
fifteen hundred dollars ($1500) or
for disability benefits of not more than twelve hundred
dollars ($1200) to any one person in any
one year, or both.
(5) Any association,
whether a fraternal benefit society or not, which 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
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 subdivision (a)(3) or (a)(4)
of this section
which provides for death or disability benefits for which
benefit certificates are issued, and any
society or association included in subdivision (a)(4) of this
section which has more than fifteen
hundred (1500) members, shall not be exempted from the
provisions of this chapter but shall
comply with all of its requirements.
(c) No society which,
by the provisions of this section, is exempt from the requirements
of this chapter, except any society described in
subdivision (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 which
provides for benefits in case of death or disability resulting
solely from accident, and which 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 subdivision (a)(5)
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 section 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 section 27-25-36.
(f)(g)
Societies exempted under the provisions of this section shall also be exempt
from
all other provisions of the insurance laws of this state.
SECTION 2. This act shall take effect upon passage.
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LC00372/SUB A
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