Shall annually affairs. Blank forms pro association shall be shown to be conducting its business in accordance with the provisions of this act, for which purpose the commissioner of banking and insurance of this state may personally, or by some person designated by him, examine into the condition, affairs, character and business methods, accounts, books and investments of such association at its home office, which examination shall be at the expense of such association, and shall be made within thirty days after demand therefor, and the expense of such examination shall be limited to the sum of fifty dollars. 4. And be it enacted, That every such association doing file report of its business in this state shall, on or before the first day of March of each year, make and file with the commissioner of banking and insurance of this state a report of its affairs and operations during the year ending on the thirty-first day of December immediately preceding, which annual report shall be in lieu of all other reports required by any other law; such reports shall be upon vided for reports. blank forms to be provided by the commissioner of banking and insurance, or may be printed in pamphlet form, and shall be verified under oath by the duly authorized officer of such association, and shall be published, or the substance thereof, in the annual report of the commissioner of banking and insurance under a separate part entitled, "Fraternal Beneficiary Associations," and shall contain answers to the following questions: Questions to be auswered. I. Number of certificates issued during the year, or members admitted; II. Amount of indemnity effected thereby; III. Number of losses or benefit liabilities incurred; V. The amount received from each assessment for the year; VI. Total amount paid members, beneficiaries, legal representatives or heirs; VII. Number and kinds of claims for which assessments have been made; VIII. Number and kinds of claims compromised or resisted, and brief statement of reasons; IX. Does association charge annual or other periodical dues or admission fees? X. How much on each one thousand dollars annually or per capita, as the case may be? XI. Total amount received, from what source, and the disposition thereof; XII. Total amount of salaries paid to officers; XIII. Does association guarantee in its certificates fixed amounts to be paid regardless of amount realized from assessments, dues, admission fees and donations? XIV. If so, state the amount guaranteed, and the security of such guarantee; XV. Has the association a reserve fund? XVI. If so, how is it created and for what purpose, the amount thereof and how invested? XVII. Has the association more than one class? XVIII. If so, how many, and the amount of indemnity in each? XIX. Number of members in each class; XX. If voluntary, so state, and give date of organization; XXI. If organized under the laws of this state under what law and at what time, giving chapter, and year and date of passage of the act; XXII. If organized under the laws of any other state, province or territory, state such fact and the date of organization, giving chapter and year and date of passage of the act; XXIII. Number of certificates of beneficiary membership elapsed during the year; XXIV. Number in force at beginning and end of year; if more than one class, number in each class; XXV. Name and address of its president, secretary and treasurer, or corresponding officers; the commissioner of banking and insurance is empowered to address any additional inquiries to any such association in relation to its doings or condition, or any other matter connected with its transactions relative to the business contemplated by this act, and such officers of such association as the commissioner of banking and insurance may require shall promptly reply in writing, under oath, to all such inquiries. 5. And be it enacted, That each such association now doing or hereafter admitted to do business within this state the commissioner When and how and not having its principal office within the state, and not of banking and being organized under the laws of this state, shall apbe appointed insurance shall point, in writing, the commissioner of banking and insurlawful attorney. ance or his successor in office to be its true and lawful of certificate evidence. Proceedings when legal process is served. attorney, upon whom all lawful process in any action or proceeding against it may be served, and in such writing shall agree that any lawful process against it which is served on said attorney shall be of the same legal force and validity as if served upon the association, and that the authority shall continue in force so long as any liabilCertified copies ity remains outstanding in this state; copies of such deemed sufficient certificate, certified by said commissioner of banking and insurance, shall be deemed sufficient evidence thereof, and shall be admitted in evidence with the same force and effect as the original thereof might be admitted; service upon such attorney shall be deemed sufficient service upon such association; when legal process against any such association is served upon said commissioner of banking and insurance, he shall immediately notify the association of such service by letter, prepaid and directed to its secretary or corresponding officer, and shall within two days after such service forward in the same manner a copy of the process served on him to such officer; the plaintiff in such process so served shall pay to the commissioner of banking and insurance, at the time of such service, a fee of three dollars, which shall be recovered by him as part of the taxable costs if he prevails in the suit; the commissioner of banking and insurance shall keep a record of all processes served upon him, which record shall show the day and hour when such service was made. Fee to be paid. Number of per sons required to organize frater 6. And be it enacted, That the commissioner of banking and insurance shall, upon the application of any association having the right to do business within this state as provided by this act, issue to such association a permit in writing, authorizing such association to do business within this state, for which certificate and all proceedings in connection therewith such association shall pay to said commissioner the fee of five dollars. 7. And be it enacted, That hereafter nine or more persons may become an incorporated fraternal beneficiary nal beneficiary association, within the descriptions set forth in section organization. one of this act, by filing in the office of the commissioner elected. Sworn statement declaration. of banking and insurance a declaration executed and A declaration acknowledged by each of them, stating their intention to executed by. form such fraternal beneficiary association, the proposed name thereof (which shall not be the same as nor too closely resemble the name of any other fraternal beneficiary association doing business in this state); the mode in which its corporate powers are to be exercised and the names and official titles of the officers, trustees, directors, representatives or other persons, by whatsoever name or title designated, who are to have and exercise the general control and management of its affairs and funds, who shall be elected after the first year by representatives How officers, chosen by grand or subordinate lodges, councils or trustees, etc., bodies, who shall be members of such association; there shall be endorsed upon such declaration, or annexed thereto, and forming a part thereof, the sworn statement of at least three subscribers thereto that two hundred endorsed on persons, eligible under the proposed laws of such associations to membership therein, have, in good faith, made application in writing for beneficial membership, in the aggregate amount of at least four hundred thousand dollars, and have each paid in one full assessment in cash; if all the requirements of law be complied with, the commissioner shall thereupon file such declaration Declaration to and cause it to be recorded, with the certificate of the be filed. attorney-general, that the same is in accordance with this act, and not inconsistent with the constitution and laws of this state, in a book to be kept for that purpose, and shall deliver to such association a certified copy of the papers so recorded in his office, together with the license or certificate of the commissioner to such association to carry on the work of a fraternal beneficiary association within the description set forth in section one of this act; for the filing of such declaration, and for all proceedings connected therewith, said commissioner of banking and insurance shall receive from such association a fee of ten dollars; any fraternal beneficiary association Fees. coming within the description as set forth in section one of this act, now doing business in this state, may become Associations incorporated or re-incorporate under the provisions of ness not required this section, but nothing in this act shall be cone trued porated. now doing busi to become incor When paid employed. as requiring any such association to become so incorporated or to so re-incorporate. 8. And be it enacted, That such associations shall not agents may be employ paid agents in soliciting or procuring members, except in the organizing or building up of subordinate bodies or granting members inducements to procure new When contract with association is invalid. Money or bene fit, etc., not liable members. 9. And be it enacted, That no contract with any such association shall be valid when there is a contract, agreement or understanding between the member and the beneficiary or any person for him shall pay such member's assessments and dues, or either of them. 10. And be it enacted, That the money or other benefit, to attachment. charity, relief or aid to be paid, provided or rendered by any association authorized to do business under this act shall not be liable to attachment by trustee, garnishee or other process and shall not be seized, taken, appropriated or applied by any legal or equitable process, or by operation of law, to pay any debt or liability of a certificate holder or of any beneficiary named in a certificate, or of any person who may have any right thereunder. Provision for states. 11. And be it enacted, That any such association organmeetings in other ized under the laws of this state may provide for the meetings of its legislative or governing body in any other state, province or territory wherein such association shall have subordinate bodies; and all business transacted at such meetings shall be valid in all respects as if such meetings were held in this state; and where the laws of any such officers in other association provide for the election of its officers by vote to be cast in its subordinate bodies, the votes so cast in its subordinate bodies, in any other state, province or territory, shall be valid as if cast within this state. When election of states valid. When persons or of misdemeanor. 12. And be it enacted, That any person, officer, member physician guilty or examining physician, who shall knowingly or willfully make any false or fraudulent statement or representation, in or with reference to any application for membership, or for the purpose of obtaining any money or benefit in any association transacting business under this act, shall be guilty of misdemeanor and upon conviction shall be punished by a fine of not less than one hundred dollars, nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days nor more Penalty. |