TITLE 27
Insurance

CHAPTER 27-25
Rhode Island Fraternal Code

SECTION 27-25-38


§ 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 subdivision (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 subdivision (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 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 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 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 § 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.

History of Section.
(P.L. 1984, ch. 201, § 2; P.L. 2013, ch. 117, § 1; P.L. 2013, ch. 119, § 1; P.L. 2014, ch. 105, § 1; P.L. 2014, ch. 122, § 1.)