Code of Alabama - Title 27: Insurance - Chapter 34 - Fraternal Benefit Societies

• Section 27-34-1 Definitions
  For the purposes of this chapter, the following terms shall have the meanings respectively ascribed to them by this section: (1) FRATERNAL BENEFIT SOCIETY. Any...
• Section 27-34-2 Societies deemed operating on lodge system
  A society having a supreme legislative or governing body and subordinate lodges or branches, by whatever name known, into which members are elected, initiated, or...
• Section 27-34-3 When society deemed as having representative form of government
  A society shall be deemed to have a representative form of government when: (1) It provides in its constitution or laws for a supreme legislative...
• Section 27-34-4 Applicability of chapter - Generally
  Except as provided in this chapter, societies shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws...
• Section 27-34-5 Applicability of chapter - Exceptions
  (a) Nothing contained in this chapter shall be so construed as to affect or apply to: (1) Grand or subordinate lodges of societies, orders, or...
• Section 27-34-6 License - Requirement; renewal; fee; evidence
  (a) No fraternal benefit society shall transact business in this state unless authorized therefor under a subsisting license issued to the society by the commissioner....
• Section 27-34-7 License - Foreign or alien societies - Application; qualifications
  (a) No foreign or alien society shall transact business in this state without a license issued by the commissioner. Any such society may be licensed...
• Section 27-34-8 License - Foreign or alien societies - Suspension, revocation, or refusal
  (a) When the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (1) Has exceeded...
• Section 27-34-9 Articles of incorporation - Contents
  Seven or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society,...
• Section 27-34-10 Articles of incorporation - Filing with other documents; bond; preliminary certificate
  Such articles of incorporation, duly certified copies of the constitution, laws, and rules, copies of all proposed forms of certificates, applications therefor, and circulars to...
• Section 27-34-11 Preliminary certificate - Time to complete organization
  No preliminary certificate granted under the provisions of this section shall be valid after one year from its date or after such further period, not...
• Section 27-34-12 Preliminary certificate - Initial solicitations and qualifications
  Upon receipt of a preliminary certificate from the commissioner, the society may solicit members for the purpose of completing its organization, shall collect from each...
• Section 27-34-13 Certificate of compliance
  The commissioner may make such examination and require such further information as he deems advisable. Upon presentation of satisfactory evidence that the society has complied...
• Section 27-34-14 Constitution and laws; powers
  (a) Every society shall have the power to adopt a constitution and laws for the government of the society, the admission of its members, the...
• Section 27-34-15 Existing incorporated societies
  Any incorporated society authorized to transact business in this state on January 1, 1973, may thereafter exercise all the rights, powers, and privileges prescribed in...
• Section 27-34-16 Incorporation of existing unincorporated domestic voluntary associations
  (a) After January 1, 1973, no unincorporated or voluntary association shall be permitted to transact business in this state as a fraternal benefit society. (b)...
• Section 27-34-17 Amendment of articles of incorporation, constitution, or laws
  (a) A domestic society may amend its articles of incorporation, constitution, or laws in accordance with the provisions thereof by action of its supreme legislative...
• Section 27-34-18 Waiver of societies' laws and constitution
  The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power...
• Section 27-34-19 Principal office of domestic society; meetings of governing body and minutes thereof
  (a) The principal office of any domestic society shall be located in this state. The meetings of its supreme legislative or governing body may be...
• Section 27-34-20 Creation, etc., of charitable, benevolent, or educational institutions
  (a) It shall be lawful for a society to create, maintain, and operate charitable, benevolent, or educational institutions for the benefit of its members and...
• Section 27-34-21 Members - Qualifications for membership
  (a) A society may admit to benefit membership any person not less than 15 years of age, nearest birthday, who has furnished evidence of insurability...
• Section 27-34-22 Members - Payment of equitable part of deficiency
  A society shall provide in its constitution or laws that if its reserves as to all or any class of certificates become impaired, its board...
• Section 27-34-23 Benefits - Generally
  (a) A society authorized to do business in this state may provide for the payment of: (1) Death benefits in any form; (2) Endowment benefits;...
• Section 27-34-24 Benefits - Lives of children
  (a) A society may provide for benefits on the lives of children under the minimum age for adult membership but not greater than 19 years...
• Section 27-34-25 Paid-up nonforfeiture benefits, cash surrender values, and certificate loans, etc
  (a) A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans, and such other options as its laws may permit. As to certificates...
• Section 27-34-26 Beneficiaries
  (a) The member shall have the right at all times to change the beneficiary, or beneficiaries, in accordance with the constitution, laws, or rules of...
• Section 27-34-27 Exemption of benefits, etc., from attachment, garnishment, or other process
  No money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any society shall be liable to attachment, garnishment, or...
• Section 27-34-28 Personal liability for payment of benefits
  The officers and members of the supreme, grand, or any subordinate body of a society shall not be personally liable for payment of any benefits...
• Section 27-34-29 Issuance of certificate to each benefit member; matters constituting agreement
  (a) Every society authorized to do business in this state shall issue to each benefit member a certificate specifying the amount of benefits provided thereby....
• Section 27-34-30 Life benefit certificate - Filing with commissioner; standard provisions
  (a) After January 1, 1973, no life benefit certificate shall be delivered, or issued for delivery, in this state unless a copy of the form...
• Section 27-34-31 Life benefit certificate - Prohibited provisions
  After January 1, 1973, no life benefit certificate shall be delivered or issued for delivery in this state containing, in substance, any of the following...
• Section 27-34-32 Accident or health and total or permanent disability insurance contracts
  (a) No domestic, foreign, or alien society authorized to do business in this state shall issue or deliver in this state any certificate or other...
• Section 27-34-33 Reinsurance
  A domestic society may, by a reinsurance agreement, cede any individual risk or risks, in whole or in part, to an insurer, other than another...
• Section 27-34-34 Assets; funds; expenses
  (a) All assets shall be held, invested, and disbursed for the use and benefit of the society, and no member or beneficiary shall have or...
• Section 27-34-35 Investments
  A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of...
• Section 27-34-36 Annual statements - Requirements
  (a) Report shall be filed and synopses of annual statements shall be published in accordance with the provisions of this section. (b) Every society transacting...
• Section 27-34-37 Annual statements - Valuation of certificates; reserves
  (a) As a part of the annual statement required under Section 27-34-36, each society shall, on or before March 1, file with the commissioner a...
• Section 27-34-38 Annual statements - Failure to file
  A society neglecting to file the annual statement in the form and within the time provided by this chapter shall forfeit $100.00 for each day...
• Section 27-34-39 Examinations - Domestic societies
  (a) The commissioner, or any person he may appoint, shall have the power of visitation and examination into the affairs of any domestic society, and...
• Section 27-34-40 Examinations - Foreign and alien societies
  The commissioner, or any person whom he may appoint, may examine any foreign or alien society transacting, or applying for admission to transact, business in...
• Section 27-34-41 Examinations - Publication of financial statement, report, or finding
  Pending, during or after an examination or investigation of a society, either domestic, foreign, or alien, the commissioner shall make public no financial statement, report,...
• Section 27-34-42 Exemption from taxation
  Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be...
• Section 27-34-43 Applicability of Chapters 7 and 8A
  Persons representing a fraternal benefit society in the solicitation of applications for insurance or annuities and the fraternal benefit society with respect thereto shall be...
• Section 27-34-44 Agents - Solicitation without license
  Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002.
• Section 27-34-45 Misrepresentations
  No person shall cause or permit to be made, issued, or circulated in any form: (1) Any misrepresentation or false or misleading statement concerning the...
• Section 27-34-46 Discrimination, inducements, and rebates
  (a) No society doing business in this state shall make or permit any unfair discrimination between insured members of the same class and equal expectation...
• Section 27-34-47 Service of process
  (a) Every society authorized to do business in this state shall appoint, in writing, the commissioner and each successor in office to be its true...
• Section 27-34-48 Consolidation or merger - Procedure
  (a) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the...
• Section 27-34-49 Consolidation or merger - Effect
  Upon the consolidation or merger effective as provided in Section 27-34-48, all the rights, franchises, and interests of the consolidated or merged societies in, and...
• Section 27-34-50 Actions to enjoin or in quo warranto; liquidation; receivership
  (a) When the commissioner upon investigation finds that a domestic society: (1) Has exceeded its powers; or (2) Has failed to comply with any provision...
• Section 27-34-51 Applications for injunctions
  No application or petition for injunction against any domestic, foreign, or alien society, or branch thereof, shall be recognized in any court of this state...
• Section 27-34-52 Review of decisions and findings of commissioner
  All decisions and findings of the commissioner made under the provisions of this chapter shall be subject to review by the court in accordance with...
• Section 27-34-53 False statements
  Any person who willfully makes a false statement of any material fact or thing in a sworn statement as to the death or disability of...
• Section 27-34-54 Applicability of other provisions
  In addition to the provisions heretofore contained or referred to in this chapter, other chapters and provisions of this title shall apply to fraternal benefit...

Last modified: May 3, 2021