An Act to amend and reenact § 46.1-299, as amended, of the Code of Virginia, relating to devices signalling intention to turn or stop and rules therefor.
Volume 1968 Law 99
Volume | 1928 |
---|---|
Law Number | 442 |
Subjects |
Law Body
Chap. 442.—An ACT defining and regulating co-operative non-profit life bene-
fit corporations with representative form of government, providing the term:
on which such corporations may do business in this State, providing for the
re-incorporation of such foreign corporations, providing for license, suits and
service regulation and control of the business of such corporations doing
business in this State, and providing the conditions under which such corpora-
tions may become legal reserve life insurance companies. [fH B 192
Approved March 26, 1928
1. Be it enacted by the general assembly of Virginia, That any
corporation, company, association or society, domestic or foreign.
now or hereafter engaged in the issuing of benefit certificates or
policies of life, health or accident, annuity or endowment insurance
upon the health and lives of its members, without capital stock and
having a representative form of government and conducting its
business without profit and for the sole benefit of its members and
their beneficiaries and maintaining the reserves as herein provided
on all contracts issued by it to its members may become a co-
operative non-profit life benefit corporation.
2. Such corporation shall adopt a constitution, laws or by-laws
and shall provide therein for a representative form of government
ior the management of the corporation, to. be carried on either with
or without lodges, or with membership in lodge optional; and shall
provide for a legislative or governing body composed of its officers
and representatives to be elected either by the adult members or by
delegates elected directly or indirectly by the adult members, and
shall provide for the manner of selecting representatives of the mem-
bers for membership in its legislative body. The governing body
shall meet as often as once in four years (or any time during the
fourth year after a meeting). Meetings of its governing body may
be held in any State, province or country where such corporation
is authorized to do business. The members of the governing body
shall not vote by proxy. A board of directors to conduct the busi-
ness of the corporation shall be elected by such body, but not for
a longer period than four years, and until the subsequent quadren-
nial meeting of said body. The board of directors shall elect the
officers to conduct the business of the corporation under its direc-
tion, but no officer shall be elected for a period beyond that for
which the board of directors shall have been elected.
3. Any such corporation maintaining reserves, based upon the
American experience table of mortality, with an interest assump-
tion of not more than four per cent, or some higher standard, or
upon any minimum standard hereafter allowed by law in this State
for legal reserve life insurance companies, may issue contracts of
insurance, life, health, accident, annuities and endowments, or all
of them combined or separately, upon the health and lives of chil-
dren and adults. It may provide in its laws and membership con-
tracts that the rates shall not be increased or extra assessments
called thereon.
Any corporation licensed to do business under the provisions of
this act, which has theretofore enacted a constitution, laws and/or
by-laws in relation to rates to be paid hy its members or lien and
interest charges in lieu of such rates or any part thereof, shall main-
tain such constitution, laws and/or by-laws in full force and effect
in all particulars as to such members.
Any such corporation desiring to do business in this State under
the provisions of this act. which has all or any portion of its mem-
bership upon a rate or premium basis not producing the reserves
herein required under the American experience table of mortality
with an interest assumption of not more than four per cent, and
which also possesses the power to increase the rates or call extra
ussessments upon said membership, may be permitted to do business
n this State as such corporation defined in this act, provided such
nembership and its assets shall be segregated and kept in a separate
‘lass, and if it shall, as to all business hereafter acquired by it,
naintain reserves on such husiness, based upon the American ex-
verience table of mortality with an interest assumption of not more
han four per cent, or upon any minimum standard allowed by law
in this State for legal reserve life insurance companies; and the
contract rights of members theretofore admitted to membership
shall be forever subject to the provisions of the constitution, laws
and/or by-laws and all regulations last in force by said corporation
prior to the application to do business in this State under the pro-
visions of this act; and such members and all contracts existing
between them and the corporation shall be forever subject to in-
creased rates or extra assessments and the corporation shall main-
tain the reserves on all of its prior business on the basis of the
national fraternal congress table of mortality with an interest as-
sumption of not more than four per cent, or upon a table of mortal-
ity derived from its own experience covering a period of not less
than twenty years and involving not less than one hundred thou-
sand lives, with an interest assumption of not more than four per
cent; and the officers of such corporation shall provide for such
increased rates or extra assessments as shall be necessary to main-
tain such reserves. Provided, however, that any such corporation
heretofore incorporated under the laws of this State which has all
or a portion of its membership on assessment certificates or con-
tracts limited to members of a secret order or society may continue
such membership contracts with right of assessment without
maintenance of reserves thereon, if such membership shall be segre-
gated and kept in a separate class as to membership and assets, and
the aggregate number of members in such class, present and future,
shall not exceed five thousand persons.
4. All contracts for insurance or benefit shall be in writing. It
shall be unlawful for any such corporation or any officer or agent
to include in the sum charged a member, any fee, compensation.
charge or prerequisite whatsoever, except that a local medical ex-
aminer’s fee and a policy fee on health and accident contracts may
be charged.
5. All beneficiary certificates or policies issued by such corpo-
ration on said American experience table of mortality with said
interest assumption or any higher standard, shall be on forms ap-
proved by the commissioner of insurance; and the corporation shal
provide for automatic paid up or extended insurance for an amount
not to exceed the amount the reserve to the credit of such membet
will purchase in the event of suspension after said certificate shal.
have been in force for not less than two full years or more trom
date of issue, and shall carry such liability on its books.
6. No money or other benefit, charity or relief or aid to be paid
provided or rendered by any such corporation, shall be hable te
attachment, garnishment or other process, or be seized, taken, ap.
propriated or applied by any legal or equitable process or opera.
tion of law to pay any debt or lability of a member, or his bene.
ficiary, or any other person who may have a right thereunder, either
hefore or after payment.
7. Officers and members of the supreme, grand or any subordi
nate body of such corporation, by whatever name known, shall no’
be individually lable for the payment of any disability or death or
other benefits provided for in the laws and contracts of such corpo-
ration, but such benefits shall be payable out of the funds of such
corporation and in the manner provided by its laws.
8. Every such corporation shall have the power to make a
constitution, laws or by-laws for the government of the corporation,
the admission of its members, the management of its affairs and the
fixing and readjustment of the rates of contribution of its members
trom time to time, and it shall have the power to change, add to or
amend such constitution, laws or by-laws and shall have such other
powers as are necessary and incidental to carry into effect the ob-
jects and purposes of the corporation, and may make refunds to its
members trom any surplus funds of the corporation. But it shall
have no power to increase rates or call extra assessments against
members holding contracts providing they are not subject to the
same.
9. Every such corporation transacting business under this act
shall file with the insurance department a duly certified copy of its
constitution, laws or by-laws and all amendments or additions
thereto. Printed copies of the same, certified to by the secretary
or corresponding officer of the corporation, shall be prima facie
evidence of the legal adoption and filing thereof.
10. Such corporation may provide for stipulated premiums and
death, annuity, endowment and disability benefits, and for cash
surrender and loan values to an amount not exceeding the reserve
or the equivalent thereof, in paid up or extended term insurance,
based upon the mortality standards set forth in this act.
11. Such corporation may maintain homes for aged members, or
children’s homes, hospitals or recreational centers, or any or all of
said features, or any other charitable institution, and may provide
for the erection of monuments or memorials to deceased members;
and such corporation 1s hereby classified as a charitable institution.
12. When five or more citizens of the United States desire to
form a corporation under the provisions of this act, they shall first
secure a charter or articles of incorporation in the manner provided
in chapter one hundred and fifty-one of the Code of Virginia. The
corporation shall adopt a constitution, laws or by-laws and file the
same with the commissioner of insurance of this State, who shall
grant them temporary permission to solicit members and collect
premiums therefrom, but without the right to issue contracts until
licensed to do business; and when such corporation shall have
presented to the commissioner of insurance proof that it has five
hundred members or more, and has collected from them premiums
sufficient to pay the maximum amount of any proposed policy to
be issued, and upon the execution of a bond by some solvent surety
company doing business in this State as surety, in a sum of not less
than ten thousand dollars, conditioned that said corporation shall
pay all death losses which may accrue, which bond shall continue in
full force until the accumulated reserve on hand on the business
written, amounts to the sum of ten thousand dollars or more, then
said commissioner of insurance may grant to said corporation per-
mission to do business under this act.
13. Any corporation, domestic or foreign, now engaged in trans-
acting business in this State which can qualify under the provisions
of this act as a co-operative non-profit life benefit corporation, may.
upon making application therefor, be granted a license by the com:-
missioner of insurance to do business under this act, provided 1
has accumulated reserves on its policies in force in a sum of not less
than ten thousand dollars, or the amount required under and by the
provisions of such policies, properly invested.
14. Any domestic or foreign corporation wishing to do business
under the provisions of this act, under whatever name it may cun-
duct its business, upon making a written application and submitting
proof satisfactory to the commissioner of insurance of this State
showing that its business, as conducted, and its reserves on hand
comply with the provisions of this act, upon paying to the commis-
sioner of insurance the sum of twenty-five dollars as filing fee. shall
be licensed to do business in this State until the first day of the
following May. Any such corporation, admitted to do business
under this-act in this State, which shall fail to comply with the
provisions of this act, may have its license revoked, and upon tail-
ing to maintain its reserves as herein required, may be liquidated
by the courts or by the insurance department, as may be provided
by law for the liquidation of legal reserve life insurance companies.
15. Every such corporation doing business in this State shall
annually file with the commissioner of insurance on or betore the
first day of March a full and complete sworn statement of its
financial condition on the thirty-first day of December next preced-
ing. Such statement shall plainly exhibit all real and contingent
assets and liabilities and a complete account of its income and dis-
bursements during the year. The commissioner of insurance 1s
hereby empowered to require such further information as may be
reasonably necessary to satisfy him that the statements contained
in the sworn statement are true, and he shall thereupon grant a
renewal of such license to such corporation to do business in this
State which shall continue in full force and effect until a new license
be issued or specifically refused. For each such license, or annual
renewal thereof, the corporation shall pay the insurance department
twenty-five dollars. Such license or a duplicate thereot shall be
prima facie evidence that such corporation is a co-operative non-
profit life benefit corporation within the meaning of this act. When
the commissioner of insurance refuses to license any such corpora-
tion or revokes its authority to do business in this State. he shall
reduce his ruling, order or decision to writing and file the sane in
his office and furnish a copy thereof, together with a statement of
his reasons for his ruling, to the officers of the corporation upon
request, and the action of the insurance department shall be re-
viewable by proper proceedings in any court of competent jurisdic-
tion within the State. Except as herein provided, such corporation
shall be governed by this act and shall be exempt from all pro-
visions ot the statutes in this State relative to or affecting life in-
surance companies and iraternal beneficiary associations, not only
in governmental relations with the State but for every other pur-
pose, and no law hereatter enacted shall apply to such corporation
unless they be expressly designated therein by the name of such
corporation as defined in this act.
lo. The commissioner of insurance, or any person he may ap-
point, shall have the power of visitation and examination into the
affairs of any such corporation. He may employ assistants for such
purpose and they shall have free access to all the books, papers
and documents that relate to the business of the corporation, and
may suminon and qualify as witnesses under oath, and examine its
officers, agents and employees or other persons in relation to the
condition of its business. As to all such toreign corporations doing
business in this State, the commissioner of insurance, in his discre-
tion, may accept in lieu of such examination the report of the
examination of the insurance department of the State, territory, dis-
trict, province or country where such corporation is organized, or a
report of an examination made of such corporation by the insurance
department of any other State.
17. The funds of such corporation shall be invested only in
securities permitted by the laws of this State for the investment of
the assets of life insurance companies; but if such a foreign corpo-
ration, in such securities as may be provided by the laws of its
domicile.
18. The officers of such corporation shall, at the time of making
the annual statement, file with the commissioner of insurance a
sworn statement of its gross premium receipts collected from mem-
bers residing in this State for the year ending December thirty-first
preceding, and shall pay on such gross receipts into the State treas-
ury on or before the first day of April of each year, a tax of one per
cent on said gross premiunrs, collected on legal reserve policies.
Said tax shall be in lieu of all other taxes, State, county or munici-
pal based on such gross premium receipts, nor shall any city, town,
municipality or other subdivision of the State, impose any license
fee on said corporation or any of its agents for the privilege of con-
ducting business in any portion of this State. In determining such
gross premium receipts, the corporation shall not take credit for any
expenditures.
19. Any foreign corporation, now or hereatter doing business in
this State or conducting a business enabling it to quality to do busi-
ness under this act in this State, may become incorporated in this
State as such corporation under whatever name it shall select, in
the manner provided in chapter one hundred and fifty-one of the
Code, provided it does not conflict with the name of some other
organization doing business in this State so as to cause confusion,
after first filing with the commissioner of insurance a resolution of
its board of directors, or of a similar body by whatever name known,
or of its legislative body, requesting to be incorporated as such
corporation of this State and submitting proof of its financial quaii-
fication under this act; and its officers shall thereupon retain their
respective offices for the terms for which they were elected. Such
corporation so re-incorporated in this State shall maintain its prin-
cipal or legal office in this State.
20. Any such corporation filing with the commission of insur-
ance a resolution of its board of directors or similar body, by what-
ever name known, or of its legislative body, making a request tu
become a legal reserve life insurance company, upon submitting
proof satisfactory to the commissioner of insurance that such re-
quest is properly authorized and that the condition of its business
qualifies it under the laws of this State to be classed as a legal re-
serve life insurance company, shall thereupon become a legal re-
serve life insurance company, under such name and such plan as
may be provided by proper amendment of its charter or articles o1
incorporation.
21. All fraternal benefit societies or associations and all secret
lodges, orders or societies doing business in this State shall be ex-
empt from all provisions of this act.
22. Suit or action at law may be instituted against said corpora-
tion in any county or city in this State in any court otherwise hav-
ing jurisdiction.
23. Every foreign co-operative non-profit life. benefit corpora-
tion, before it shall be permitted to transact business in this State.
shall appoint in writing the clerk of the State corporation commis-
sion, and his successor in office, to be its true and lawful attorney
on whom all legal process and legal notices in any action or pro-
ceeding against it in this State shall be served, and in such writing
shall agree that any lawful process against it which is served upon
such attorney shall be of the same legal force and validity as if
served upon said corporation, and that the authority of such attor-
ney shall continue in force so long as any liability remains out-
standing in this State.
24. Copies of such appointment, certified by said clerk of the
State corporation commission shall be deemed sufficient evidence
thereof and shall be admitted in evidence with the same force and
effect as the original. Service of process in all suits and proceed-
ings against any such foreign corporation shall be made only upon
such attorney and must be made in duplicate upon him, or in his
absence upon the person in charge of his office, and shall be deemed
sufficient service upon such corporation; provided, however, that nu
such service shall be deemed valid or binding against such corpo-
ration when it is required thereunder to file its answer, pleading or
defense in less than thirty days from. the date of mailing a copy of
such service to such corporation. When legal process against any
such corporation is served upon said clerk of the State corporation
commission he shall forthwith forward by registered mail one oi
the duplicate copies, directed to its secretary or corresponding of-
ficer at the home office of the corporation. Legal process shall not
be served upon any such foreign corporation except in the manner
herein provided. Service of process in all suits against such domes-
tic corporations shall be in the manner provided by the laws of this
State for other domestic corporations.
25. That all laws and parts of laws in conflict herewith be and
the same are hereby repealed.