General Laws of Massachusetts - Chapter 176 Fraternal Benefit Societies - Section 39 Assets; special funds; expenses

Section 39. All assets shall be held, invested and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment or the surrender of any part thereof, except as provided in the contract.

A society may create, maintain, invest, disburse and apply any special fund or funds necessary to carry out any purpose permitted by the by-laws of such society.

Every society, the admitted assets of which are less than the sum of its accrued liabilities and reserves under all of its certificates when valued according to standards required for certificates issued, shall, in every provision of the by-laws of the society for payments by members of such society, in whatever form made, distinctly state the purpose of the same and the proportion thereof which may be used for expenses, and no part of the money collected for mortuary or disability purposes or the net accretions thereto shall be used for expenses.

A society may, pursuant to resolution of its supreme governing body, establish and operate one or more separate accounts and issue contracts on a variable basis, subject to the law regulating life insurers establishing such accounts and issuing such contracts. To the extent the society deems it necessary in order to comply with the federal or state laws, or any rules issued under such laws, the society may adopt special procedures for the conduct of the business and affairs of such separate accounts. The society may also, for persons having beneficial interests in such accounts, provide special voting and other rights, including without limitation special rights and procedures relating to an investment policy, investment advisory services, selection of a committee to manage the business and affairs of the account and the society may further issue contracts on a variable basis to which the first and fifth paragraphs of section 23 shall not apply.

Section:  Previous  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  Next

Last modified: September 11, 2015