512B.11 Organization. A domestic society organized on or after January 1, 1991, shall be formed as follows:1. 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, may sign and file with the secretary of stateand commissioner of insurance an original or copy of a document containing, at minimum,the following: a. The proposed corporate name of the society, which shall not so closely resemble the name of any other society or insurance company as to be misleading or confusing. b. The purposes for which the society is being formed and the mode in which its corporate powers are to be exercised. The purposes shall not include more liberal powers than aregranted by this chapter. c. The names and residences of the incorporators.d. The names, residences, and official titles of all the officers, trustees, directors, or other persons who are to have and exercise the general control of the management of the affairsand funds of the society for the first year or until the ensuing election at which officers shallbe elected by the supreme governing body, or board of directors, which election shall be heldnot ffairsand funds of the society for the first year or until the ensuing election at which officers shallbe elected by the supreme governing body, or board of directors, which election shall be heldnot later than one year from the date of issuance of the permanent certificate of authority. 2. The articles of incorporation, duly certified copies of the society’s regulations and laws, copies of all proposed forms of certificates, applications, and circulars to be issued bythe society, and a bond conditioned upon the return to applicants of the advance premiumsif the organization is not completed within one year shall be filed with the commissionerof insurance, who may require further information as the commissioner deems necessary.The bond with sureties approved by the commissioner shall be in an amount, not less thanthree hundred thousand dollars nor more than one million five hundred thousand dollars,as required by the commissioner. All documents filed are to be in the English language. Ifthe purposes of the society conform to the requirements of this chapter and all provisionsof the law have been complied with, the commissioner shall so certify, retain and file thearticles of uage. Ifthe purposes of the society conform to the requirements of this chapter and all provisionsof the law have been complied with, the commissioner shall so certify, retain and file thearticles of incorporation, and furnish the incorporators a preliminary certificate of authorityauthorizing the society to solicit members as provided in this chapter. 3. A preliminary certificate of authority granted under this section is not valid after one year from its date or after a further period, not exceeding one year, as may be authorizedby the commissioner upon cause shown, unless the five hundred applicants required inthis section have been secured and the organization has been completed as provided inthis chapter. The articles of incorporation and all other proceedings become void in oneyear from the date of the preliminary certificate of authority, or at the expiration of theextended period, unless the society has completed its organization and received a certificateof authority to do business as provided in this chapter. 4. Upon receipt of a preliminary certificate of authority from the commissioner, the society may solicit members for the purpose of completing its organization, business as provided in this chapter. 4. Upon receipt of a preliminary certificate of authority from the commissioner, the society may solicit members for the purpose of completing its organization, shall collect from eachapplicant the amount of not less than one regular monthly premium in accordance with itstable of rates, and shall issue to each applicant a receipt for the amount so collected. A societyshall not incur a liability other than for the return of advance premiums, shall not issue acertificate, nor pay, allow, offer, or promise to pay or allow, a benefit to any person until all ofthe following conditions are satisfied: a. Actual bona fide applications for benefits have been secured on not less than five hundred applicants, and any necessary evidence of insurability has been furnished to andapproved by the society. b. At least ten subordinate lodges have been established into which the five hundred applicants have been admitted. c. A list of the applicants has been submitted to the commissioner, under oath of the president or secretary, or corresponding officer of the society, giving the applicants’ namesand addresses, the date each applicant was admitted, the name itted to the commissioner, under oath of the president or secretary, or corresponding officer of the society, giving the applicants’ namesand addresses, the date each applicant was admitted, the name and number of the subordinatelodge of which each applicant is a member, the amount of benefits to be granted, and thepremiums for the benefits. d. It has been shown to the commissioner, by sworn statement of the treasurer, or Sat Dec 23 00:43:14 2023 Iowa Code 2024, Section 512B.11 (17, 0) §512B.11, FRATERNAL BENEFIT SOCIETIES 2 corresponding officer of the society, that at least one thousand applicants have each paid incash at least one regular monthly premium, which premiums in the aggregate shall amountto at least three hundred thousand dollars. Advance premiums shall be held in trust duringthe period of organization and if the society has not qualified for a certificate of authoritywithin the time permitted by this section, each premium shall be returned to the respectiveapplicant. 5. The commissioner may make an examination and require further information as the commissioner deems advisable. permitted by this section, each premium shall be returned to the respectiveapplicant. 5. The commissioner may make an examination and require further information as the commissioner deems advisable. Upon presentation of satisfactory evidence that the societyhas complied with all applicable provisions of law, the commissioner shall issue to the societya certificate of authority and the society is then authorized to transact business pursuant tothis chapter. A certificate of authority is prima facie evidence of the existence of the societyat the date of the certificate. The commissioner shall cause a record of each certificate ofauthority to be made. A certified copy of the record shall be accepted in evidence with likeeffect as the original certificate of authority. 6. An incorporated society authorized to transact business in this state on January 1, 1991, is not required to reincorporate. A certified copy of the current articles of incorporationof an existing society shall be filed with the commissioner and the commissioner mayrequest additional records as the commissioner deems necessary before issuing a certificateof authority to an existing society. ng society shall be filed with the commissioner and the commissioner mayrequest additional records as the commissioner deems necessary before issuing a certificateof authority to an existing society. 90 Acts, ch 1148, §11; 2013 Acts, ch 90, §153 Sat Dec 23 00:43:14 2023 Iowa Code 2024, Section 512B.11 (17, 0)
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