512B.19 The benefit contract. 1. A society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided pursuant to the benefitcontract. The certificate, together with any riders or endorsements attached to the certificate,the laws of the society, the application for membership, the application for insurance anddeclaration of insurability, if any, signed by the applicant, and all amendments, constitutethe benefit contract, as of the date of issuance, between the society and the owner, andthe certificate shall so state. A copy of the application for insurance and declaration ofinsurability, if any, shall be endorsed upon or attached to the certificate. Statements on theapplication are representations and not warranties. A waiver of this provision is void. 2. Additions or amendments to the laws of a society duly made or enacted subsequent to the issuance of the certificate, bind the owner and the beneficiaries, and govern and controlthe benefit contract in all respects the same as though the additions or amendments had beenmade before and were in force at the time of the application for insurance, iciaries, and govern and controlthe benefit contract in all respects the same as though the additions or amendments had beenmade before and were in force at the time of the application for insurance, except that anaddition or amendment shall not destroy or diminish benefits which the society contracted togive the owner as of the date of issuance. 3. A person upon whose life a benefit contract is issued before the person attains the age of majority is bound by the terms of the application and certificate and by all the laws andregulations of the society to the same extent as though the person had attained the age ofmajority at the time of application. 4. a. A society shall provide in its laws that if its reserves as to all or any class of certificates become impaired, its supreme governing body or board of directors may require that therebe paid by the owners to the society the amount of the owners’ equitable proportion of thedeficiency as ascertained by its governing body or board, and that if the payment is not madeeither of the following will apply: (1) The required payment or assessment shall stand as an indebtedness against the certificate and draw interest not to exceed the nd that if the payment is not madeeither of the following will apply: (1) The required payment or assessment shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under thecertificates. (2) In lieu of or in combination with subparagraph (1), the owner may accept a proportionate reduction in benefits under the certificate. b. The society may specify the manner of the election and which alternative is to be presumed if no election is made. 5. Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received in evidence of the terms and conditionsof the documents. 6. A certificate shall not be delivered or issued for delivery in this state unless a copy of the form has been filed with the commissioner in the manner provided for like policiesissued by life insurers in this state. A life, accident, health, or disability insurance certificateand an annuity certificate issued on or after one year from January 1, 1991, shall meet thestandard contract provision requirements not inconsistent with this chapter for like policiesissued by life eand an annuity certificate issued on or after one year from January 1, 1991, shall meet thestandard contract provision requirements not inconsistent with this chapter for like policiesissued by life insurers in this state, except that a society may provide for a grace periodfor payment of premiums of one full month in its certificates. The certificate shall alsocontain a provision stating the amount of premiums which are payable under the certificateand a provision reciting or setting forth the substance of any sections of the society’s lawsor regulations in force at the time of issuance of the certificate which, if violated, willresult in the termination or reduction of benefits payable under the certificate. If the lawsof the society provide for expulsion or suspension of a member, the certificate shall alsocontain a provision that any member expelled or suspended, except for nonpayment of apremium or within the contestable period for material misrepresentation in the applicationfor membership or insurance, may maintain the certificate in force by continuing paymentof the required premium. 7. m or within the contestable period for material misrepresentation in the applicationfor membership or insurance, may maintain the certificate in force by continuing paymentof the required premium. 7. A benefit contract issued on the life of a person below the society’s minimum age for adult membership may provide for transfer of control of ownership to the insured atan age specified in the certificate. A society may require approval of an application formembership in order to effect this transfer, and may provide in all other respects for the Sat Dec 23 00:43:19 2023 Iowa Code 2024, Section 512B.19 (18, 0) §512B.19, FRATERNAL BENEFIT SOCIETIES 2 regulation, government, and control of such certificates and the rights, obligations, andliabilities incident to, or connected with, the benefit contract. Ownership rights prior to atransfer shall be specified in the certificate. 8. A society may specify the terms and conditions on which benefit contracts may be assigned. 90 Acts, ch 1148, §20; 2012 Acts, ch 1023, §113Referred to in §512B.2, 512B.22 Sat Dec 23 00:43:19 2023 Iowa Code 2024, Section 512B.19 (18, 0)
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