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§4502
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§4502 . Incorporation and licensing of domestic societies; meeting of supreme governing body. An authorized domestic society may be organized and licensed in the manner prescribed in (this §), and subject to the other requirements of this chapter applicable thereto. The successive steps shall be as follows:
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§4502(a)
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(a) The proposed incorporators, who shall be natural persons, citizens of the United States and a majority of whom shall be citizens of this state, and who shall be not less than 15 in number, shall submit to the superintendent in writing the proposed name of the society and the county in which its principal office will be located. Such name shall contain a word or words indicating the fraternal character of such society, and shall not contain any of the following words: "insurance", "assurance", "life", "accident", "health", "annuity", "guaranty", "company", "corporation", "indemnity", "endowment", "guarantee", "casualty", "surety", "fidelity", or "underwriters", or any other word or words which in the judgment of the superintendent would be likely to be deceptive or misleading as to the character and purposes of such society. Such proposal shall be subscribed with the name and address of each such incorporator.
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§4502(b)
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(b) If the superintendent approves the proposed name of the society as conforming to the requirements of subsection §1102(g) of this chapter and not inconsistent with other requirements of law, he shall so notify the proposed incorporators, or their representative, in writing. Such approval shall become void if within 6 months from the date thereof the declaration and charter of such society have not been filed pursuant to (this §) .
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§4502(c)
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(c) The proposed incorporators shall make and subscribe (giving their addresses) and affirm as true under the penalties of perjury, a declaration and charter, both in the English language, and shall file the same with the superintendent, together with duly certified copies of the proposed constitution, by-laws, rules and regulations, all proposed forms of certificates or other evidences of insurance or annuity contracts, or both, all applications therefor and riders or endorsements to be used in connection therewith, all circulars to be issued by the society, and a table or schedule showing the rates of premium or other periodical contribution to be charged by such society for any insurance or annuity benefits to be provided by it. Such declaration shall state the intention of the proposed incorporators to form a society for the purpose of providing insurance benefits permissible under the provisions of this article, and for other purposes not inconsistent with the provisions of this chapter. The proposed charter shall contain the following:
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§4502(c)(1)
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(1) the name of the proposed society, approved as aforesaid;
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§4502(c)(2)
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(2) the place where such society will have its principal office, which shall be in this state;
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§4502(c)(3)
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(3) the general, fraternal, altruistic, educational, patriotic, recreational and other purposes of such society, and the kinds of insurance benefits to be provided by it, specified in accordance with §4505 of this article;
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§4502(c)(4)
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(4) the mode and manner in which its corporate powers are to be exercised;
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§4502(c)(5)
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(5) the number of directors shall not be less than 9 of which at least 4 must not be officers or employees of the society. The charter of such society shall provide that the number of directors shall be increased to not less than 13 within 1 year following the end of the calendar year in which the society exceeded $500,000,000 in admitted assets. "Number of directors" herein means the total number of directors which the society would have if there were no vacancies;
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§4502(c)(6)
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(6) the times and manner of electing its directors and officers, the manner of filling vacancies in such offices, and a provision that at all times a majority of the directors shall be citizens and residents of this state or of adjoining states, and not less than 5 thereof shall be residents of this state;
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§4502(c)(7)
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(7) the names and postoffice residence addresses of the directors who shall serve until the 1st election in accordance with the charter and by-laws;
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§4502(c)(8)
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(8) the duration of its corporate existence which shall be not less than 30 years;
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§4502(c)(9)
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(9) such other particulars as may be necessary to explain the objects, purposes, management and control of such society; and
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§4502(c)(10)
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(10) such additional information as the superintendent may by regulation require.
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§4502(d)
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(d) The superintendent shall transmit such declaration, charter and accompanying documents to the attorney general. If the same be approved by the attorney general, as conforming to the requirements of law, the superintendent shall thereupon file the declaration and charter in his office, and shall issue a certified copy of each to the proposed incorporators. Such incorporators shall thereupon become a body corporate which shall not be authorized to do an insurance business until it shall have obtained a license therefor as provided in (sub§ (f)) hereof, but it may solicit members for the purpose of completing its organization, collecting from each applicant for insurance an amount not less than 1 regular monthly premium, in accordance with its table or schedule of rates, issuing to each such applicant a receipt for the amount so collected and providing for the examination of each applicant for life insurance by legally qualified practicing physicians with certificates of such examinations to be duly filed and approved by the chief medical examiner of such society. Before soliciting or receiving any premium or other contribution for insurance benefits of any kind or character, the society shall file with the superintendent a bond in the sum of $5,000, with sureties approved by the superintendent, conditioned upon the return to applicants of the advanced payments, as provided in (this §) ,if the society does not complete its organization and obtain a license to do business within 1 year from the date of incorporation or within such further time as the superintendent may permit pursuant to (sub§ (g)) hereof. The society shall incur no liability except for the repayment of such advanced payments, nor issue any certificate or other evidence of an insurance or annuity contract, or both, unless and until it shall have obtained a license to do business as hereinafter provided.
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§4502(e)
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(e) Before obtaining a license to do business in this state, such society shall have established not less than 10 subordinate lodges or branches, into which not less than 500 applicants have been initiated shall have actual bona fide applications for life insurance benefits upon at least 500 lives each eligible for such insurance, in accordance with the provisions this article, for at least $1,000 on each life and shall have received payments thereunder in the aggregate amount of at least 2500. Before obtaining such license such society shall submit to the superin10dent, under oath the president secretary, or corresponding officers, a complete list such applicants, giving their names, addresses, dates examination, approval initiation, the name number the subordinate lodge or branch which each applicant is a member, the amount kinds insurance benefits to be granted, the rate periodical insurance contributions each, which shall conform to the requirements this article, the bank or banking institution in which all sums collected from such applicants have been deposited. Such advanced payments or other insurance contributions by applicants shall, during the period organization until the issuance a license to do business, be held in trust on account such applicants, no part thereof may be used for expenses; if a license is not issued within 1 year from date of incorporation, such advanced payments shall be returned to the applicants who originally made the same.
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§4502(f)
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(f) If the superintendent finds, from the statements of the principal officers of such society, subscribed and affirmed by such officers as true under the penalties of perjury, or from such investigation or examination as he may deem expedient, that such society has complied with the requirements of (this §) and that the purposes and plan of operation of such society are in accordance with the requirements of law, he may issue to such society a license to do business in this state. Such license shall set forth the name of the society, the location of its principal office, and the kind of insurance or annuity benefits, or both, specified in §4505 of this article, which it is authorized to provide in this state. Thereupon the society shall have such powers as are necessary or properly incidental to carry into effect the lawful objects and purposes of the society.
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§4502(g)
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(g) If any such society shall fail to obtain such license within 1 year from the date of its incorporation or within such further period, not to exceed 1 additional year, as the superintendent may in his discretion permit, the superintendent may commence proceedings for the dissolution of such society in accordance with article 74 of this chapter.
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§4502(h)
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(h) A domestic society may provide for the meeting of its supreme governing body in any other state, province or territory wherein such society has not less than 5 subordinate lodges or branches. In all meetings of the supreme governing body, no member, representative or delegate shall cast more than 1 vote on any question submitted. Source Data downloaded: 2009-04-09 15: 15: 34; Processed: 2009-05-08 15: 36: 11
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