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§4515
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§4515 . Conditions for avoiding separate funds.
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§4515(a)
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(a) Any authorized society which maintains reserves, including deficient premium reserves, at least equal to those required by the minimum standards of valuation hereinafter specified and which does not exceed the expense limits hereinafter specified shall not be required, if its constitution or by-laws so permit, to create or maintain a separate fund or funds, for the payment of insurance benefits as required by subsection §4514(a) of this article nor to comply with the provisions of subsections b and d such section and subsection §4507(d) of this article.
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§4515(b)
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(b)
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§4515(b)(1)
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(1) Such minimum standards of valuation shall be:
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§4515(b)(1)(A)
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(A) as to all contracts for life insurance benefits issued prior to January 1st, 1948, the American Experience Table of Mortality or the American Men Ultimate Table of Mortality with interest at 3 and 0.5,
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§4515(b)(1)(B)
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(B) as to all contracts for life insurance benefits issued on and after January 1st, 1948, and prior to January 1st, 1956, the American Experience Table of Mortality or the American Men Ultimate Table of Mortality with interest at 3, and
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§4515(b)(1)(C)
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(C) as to all contracts for life insurance benefits issued on and after January 1st, 1956, the applicable mortality tables as specified in subsection §4517(c) of this article.
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§4515(b)(2)
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(2) The deficient premium reserve as to all such contracts issued prior to January 1st, 1948, shall be determined in the manner prescribed in subsection §4517(b) of this article and as to all such contracts issued on and after January 1st, 1948, shall be determined in the manner prescribed in §4218 of this chapter.
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§4515(b)(3)
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(3) Such minimum standard of valuation as to all contracts for annuity benefits issued on and after January 1st, 1948, shall be the 1937 Standard Annuity Mortality Table with interest at 3 percent.
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§4515(c)
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(c) No such society shall, except as provided for in (sub§ (f)) hereof, make or incur in any calendar year, or permit to be made or incurred on its behalf or under any agreement with it, total life insurance expenses as defined in (sub§ (d)) hereof in excess of the total life insurance expense limit as defined in (sub§ (e)) hereof.
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§4515(d)
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(d) The total life insurance expenses of any such society within the meaning of (this §) ,shall include all expenses, made or incurred on its behalf with its permission or under any agreement with it, in the business of fraternal life insurance, except:
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§4515(d)(1)
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(1) taxes, licenses and fees,
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§4515(d)(2)
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(2) disbursements for altruistic, educational, fraternal or recreational activities which are made from funds collected solely for such purposes and in addition thereto disbursements for like purposes in an amount not exceeding 1 and 0.5 of the premiums received for life insurance contracts during such calendar year,
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§4515(d)(3)
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(3) that portion of its total investment expenses not exceeding 0.75000 of the mean amount of its total invested assets during such calendar year,
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§4515(d)(4)
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(4) taxes and other outlays exclusively in connection with real estate and commissions, or salaries and expenses in lieu of commissions, on mortgage loans, and
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§4515(d)(5)
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(5) outlays representing the accrued liability for services rendered by the society's employees prior to coverage under employees pension plans.
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§4515(e)
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(e) The total life insurance expense limit, within the meaning of (this §) ,shall be the sum of the following :
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§4515(e)(1)
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(1) 7 of all life insurance premiums received by such society during such calendar year,
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§4515(e)(2)
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(2) 35 of all 1st year life insurance premiums received by such society during such calendar year,
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§4515(e)(3)
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(3) 175 1 thousandths of 1 of the aggregate amount of life insurance of such society in force at the beginning of such calendar year and of the aggregate amount of such insurance issued during, and in force at the end of, such calendar year,
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§4515(e)(4)
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(4) 0.30000 of the aggregate amount of life insurance of such society in force at the beginning of such calendar year and of the aggregate amount of such insurance issued during, and in force at the end of, such calendar year, and
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§4515(e)(5)
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(5) 35 1 hundredths 1 of the aggregate amount of life insurance of such society issued during, and is in force at the end of, such calendar year, exclusive of additional insurance purchased by the application of certificate dividends.
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§4515(f)
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(f) The total life insurance expense limit of any such society which has in force at the end of the next preceding calendar year less than $1,000,000 of life insurance shall be increased by 100 percent; for any other such society, such limits shall be increased by 100% less 2-10ths 1 for each $1,000,000 of life insurance in excess of $1,000,000 of life insurance until the extra margin is 60 of said limit, and thereafter said extra margin shall decrease by 1-3rd 1 for each $10,000,000 of life insurance in force at the end of the next preceding calendar year until the extra margin is 50 percent; and thereafter said extra margin shall decrease by 0.50000 for each $10,000,000 of life insurance in force at the end of the next preceding calendar year until such extra margin is reduced to 0.
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§4515(g)
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(g) The amounts of life insurance referred to in (this §) shall not include additional benefits payable for accidental death or for total and permanent disability.
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§4515(h)
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(h) No such society, and no person, firm or corporation, on its behalf or under any agreement with it, shall pay or allow to any agent, broker, employee or other person, for services in procuring an application for life insurance, for collecting any premium thereon or for any other service performed in connection therewith, any compensation greater than that which has been determined by agreement made in advance of the rendering of such service.
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§4515(i)
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(i) The superintendent may, in his discretion, accept satisfactory approximations of the figures required in (this §) . If any such society shall in any calendar year make or incur total life insurance expenses in excess of the total life insurance expense limit, the superintendent may, upon written application of such society, suspend such limit for such society for the calendar year in which such excess was incurred.
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§4515(j)
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(j) Notice of intention to comply with the provisions of (this §) shall be given in writing to the superintendent by any such society, accompanied by a certified copy of the authorizing resolution of the board of directors. Source Data downloaded: 2009-04-09 15: 15: 34; Processed: 2009-05-08 15: 36: 12
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