Oklahoma § 36-2404 - Provisions applicable to mutual benefit associations

§ 36-2404. Provisions applicable to mutual benefit associations

A. The following provisions are made applicable to mutual

benefit associations:

1. The bylaws of such associations shall provide for periodical

meetings of the members and how special meetings may be called. At

such meetings each member shall be entitled to vote on all questions

arising, either in person or by proxy, and such proxy may be given

in the application for membership.

2. The bylaws shall provide for the calling of extra, increased

or additional assessments when in the opinion of the board of

directors such is necessary.

3. The bylaws may provide for the issuing of graded membership

certificates to persons not to exceed seventy-two (72) years of age,

and for the grading of rates of assessment according to the age of

members; provided that the premium or assessment charged on policies

or certificates insuring individuals over age seventy-two (72) shall

not be less than the net rate produced by using the American

Experience Table of Mortality with interest assumption at three and

one-half percent (3 1/2%) plus ten percent (10%).

4. Such associations shall have the right to regulate and

govern their affairs as provided and set forth in their respective

bylaws, so long as such bylaws are not in conflict with any law of

this state. The membership shall be bound by the bylaws of the

association as the same exist at the time of joining or as they may

be amended in the future. Provided, no amendment to such bylaws

affecting the policy contract or rate of contribution of the

membership shall become valid and binding upon the membership unless

notice of such proposed change in the bylaws is given each member of

such association at least twenty (20) days prior to any annual

meeting or special meeting of such association called to consider

such proposed amendment and a certified copy thereof is filed with

the Insurance Commissioner and approved by the Commissioner;

provided further, that no notice of such proposed amendment shall be

required if the same is adopted in compliance with any of the

Oklahoma Statutes - Title 36. Insurance

provisions of this article or a notice or order of the Insurance

Commissioner made in pursuance thereof. Bylaws or amendments

thereto, which are not in conflict with any of the provisions of

this article, shall be approved by the Insurance Commissioner.

5. The affairs of such associations shall be conducted strictly

in accordance with their respective bylaws herein provided for. Such

bylaws duly certified to by the president and secretary shall be

filed with the Insurance Commissioner, and copies of such, duly

certified by the Commissioner, shall be received in evidence in all

courts of this state.

6. In all actions against assessment insurance companies or

against the bonds or bondsmen of such companies by any policyholder

or beneficiary, it shall not be necessary to notify or summon the

other policyholders or beneficiaries, but it shall be sufficient to

bring such company into court by usual summons on the secretary or

president or managing agent thereof, and in suits upon the bond by

ordinary services as in other cases upon the several bondsmen sued.

7. In case the membership of any such association is divided

into circles, classes or groups, upon the membership of which

assessments are made to cover benefits or to replenish the mortuary

or benefit fund, no benefit assessment shall be made upon any other

circle, class or group to which the insured member does or did not

belong to cover such benefit paid or to be paid.

B. No circle, class or group shall be established unless a

sufficient number of members be placed therein and a regular benefit

assessment collected therefrom will produce an amount sufficient to

pay in full the face amount of the policy issued for which the

assessment was levied, and each and every circle, class or group

shall be maintained up to the number placed therein when such

circle, class, or group was established; provided, that not more

than one circle, class or group shall remain incomplete.

Added by Laws 1957, p. 316, § 2404, operative July 1, 1957. Amended

by Laws 2010, c. 215, § 2, eff. Nov. 1, 2010.