MCA Chapter 29

MCA Chapter 29
in effect

Miss. Code Ann. § 83-29-1 Fraternal benefit societies defined.

Any corporation, society, order, or voluntary association without capital stock, organized and carried on solely for the mutual benefit of its members and their beneficiaries and not for profit, and having less than Thirty Thousand Dollars ($30,000.00) in total annual written premium, having a lodge system and representative form of government, or which limits its membership to a secret fraternity having a lodge system and representative form of government, and which shall make provision for the payment of benefits in accordance with Section 83-29-9 is hereby declared to be a fraternal benefit society.

Miss. Code Ann. § 83-29-3 Lodge system defined.

Any society having a supreme governing or legislative body and subordinate lodges or branches by whatever name known, into which members shall be admitted in accordance with its constitution, laws, ritual, rules, and regulations, and which shall be required by the laws of such society to hold periodical meetings, shall be deemed to be operating on the lodge system.

Miss. Code Ann. § 83-29-5 Representative form of government defined.

Any society shall be deemed to have a representative form of government when it shall provide in its constitution and laws for a supreme legislative or governing body, composed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together with such other members as may be prescribed by its constitution and laws. The elective members shall constitute a majority in number and not less than the number of votes required to amend its constitution and laws; and the meetings of the supreme or governing body, and the election of officers, representatives, or delegates shall be held as often as once in four (4) calendar years. No member under age sixteen (16) shall have a voice or vote in the management of the society. No member, officer, representative, or delegate shall vote by proxy.

Miss. Code Ann. § 83-29-7 Exemptions.

Except as herein provided, such societies shall be governed by this chapter and shall be exempt from all provisions of the insurance laws of this state, not only in governmental relations with the state but for every other purpose. No law hereafter enacted shall apply to them unless they be expressly designated therein.

Miss. Code Ann. § 83-29-9 Benefits.

Every society transacting business under this chapter may provide for the payments of benefits upon the death of its members either within a term of years or at any time, may provide for benefits payable upon its members reaching seventy (70) years of age, may also provide for the payment of benefits in case of total and permanent disability, may provide also for the payment of benefits in the event of temporary disability, and may provide for monuments or tombstones to the memory of its deceased members and for the payment of funeral benefits. Any society may also enter into contracts in such other forms and granting such benefits as its laws may authorize when it shall provide for the accumulation and maintenance of assets required for the payment of such benefits when valued upon an interest basis not exceeding four percent (4%) per annum and mortality standards adopted by it within the limitations provided in the statutes relating to fraternal benefit societies or, at the option of the society, in the statutes relating to life insurance companies.

Miss. Code Ann. § 83-29-11 Members and beneficiaries.

Any person may be admitted to beneficial, or general, or social membership in any society in such manner and upon such showing of eligibility as the laws of the society may provide, and any beneficial member may direct any benefit to be paid to such person or persons, entity, or interest as may be permitted by the laws of the society. No beneficiary shall have or obtain any vested interest in the said benefit until the same has become due and payable in conformity with the provisions of the contract of membership, and the member shall have full right to change his beneficiary, or beneficiaries, in accordance with the laws, rules, and regulations of the society.

Miss. Code Ann. § 83-29-13 Certificate.

The certificate, the charter or articles of incorporation or, if a voluntary association, the articles of association, constitution and laws of the society, and the application for membership signed by the applicant, and all amendments to each thereof shall constitute the agreement between the society and the member; and copies of the same certified by the secretary of the society, or corresponding officer, shall be received in evidence of the terms and conditions thereof. Any changes, additions, or amendments to said charter or articles of incorporation, or articles of association, if a voluntary association, constitution or laws duly made or enacted subsequent to the issuance of the benefit certificate shall bind the member and his beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions, or amendments had been made prior to and were in force at the time of the application for membership.

Miss. Code Ann. § 83-29-15 Funds.

Any society may create, maintain, invest, disburse, and apply an emergency, surplus, or other fund consistent with the purposes for which such society is organized, including hospital and health, home, thrift, pension for its employees, patriotic, educational, and relief funds, in accordance with its laws. Unless otherwise provided in the contract, such funds 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 subsection (2) of Section 83-29-9. The funds from which benefits shall be paid and the funds from which the expenses of the society shall be defrayed shall be derived from periodical or other payments by the members of the society and accretions of said funds. All societies hereafter incorporated or foreign societies hereafter admitted shall be one hundred percent (100%) solvent according to the valuation requirements of Section 83-29-43. Deferred payments of installments of claims shall be considered as fixed liabilities on the happening of the contingency upon which such payments or installments are thereafter to be paid. Such liability shall be the present value of such future payments or installments upon the rate of interest and mortality assumed by the society for valuations, and every society shall maintain a fund sufficient to meet such liability regardless of proposed future collections to meet any such liabilities.

Miss. Code Ann. § 83-29-17 Investments.

Every society shall invest its funds only in securities permitted by the laws of this state for the investment of the assets of life insurance companies, and such securities shall be valued according to the methods used in valuing similar securities held by life insurance companies. Any foreign society permitted or seeking to do business in this state, which invests its funds in accordance with the laws of the state in which it is incorporated, shall be held to meet the requirements of this chapter for the investment of funds.

Miss. Code Ann. § 83-29-19 Distribution of funds.

Every society which is one hundred percent (100%) solvent according to the requirements of Section 83-29-43 in respect of the whole society, or of a class or section thereof, shall collect sufficient periodical or other contributions from the members of the society, or of such class or section thereof, which, with interest accretions, are sufficient to pay the claims arising from the certificates of the whole society, or of such class or section thereof, and its expenses, and to maintain a fund sufficient to meet its accrued liabilities and the reserves required to maintain the said percentage of solvency in accordance with the said Section 83-29-43 or, in lieu thereof, shall comply with subsection (2) of this section. Every other society, or other class or section thereof, shall collect from the members of such society, or other class or section thereof, stated periodical or other contributions expressly collected for the mortuary or disability funds, and periodical or other contributions expressly collected for the expense or management fund, both of which may be included in the periodical contribution. No part of the money collected for the mortuary or disability funds, or of the funds, or of the interest accretions thereto shall be used for expense purposes.

Miss. Code Ann. § 83-29-21 Organization.

Seven (7) or more persons, citizens of the United States and a majority of whom are citizens of this state, who desire to form a fraternal benefit society, as defined by this chapter, may make, sign, giving their addresses, and acknowledge, before some officer competent to take acknowledgment of deeds, article of incorporation in which shall be stated: The proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company already transacting business in this state as to mislead the public or to lead to confusion; The purpose for which it is formed – which shall not include more liberal powers than are granted by this chapter, provided that any lawful social, intellectual, educational, charitable, benevolent, moral, or religious advantages may be set forth among the purposes of the society – and the mode in which its corporate powers are to be exercised; The names, residences, and official titles of all the officers, trustees, directors, or other persons who are to have and exercise the general control and management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme legislative or governing body, which election shall be held not later than one (1) year from the date of the issuance of the permanent certificate. Such articles of incorporation, duly certified copies of the constitution and laws, rules and regulations, copies of all proposed forms of benefit certificates, applications therefor, circulars to be issued by such society, and a bond in the sum of Five Thousand Dollars ($5,000.00), with sureties approved by the commissioner of insurance, conditioned upon the return, as provided in this section, of the advance payments to applicants if the organization is not completed within one (1) year, shall be filed with the commissioner of insurance, who may require such further information as he deems necessary. If the purposes of the society conform to the requirements of this chapter and all provisions of law have been complied with, the commissioner of insurance shall so certify and retain and record, or file, the articles of incorporation, and furnish the incorporators a preliminary certificate authorizing said society to solicit members as hereinafter provided. Upon receipt of said certificate from the commissioner of insurance, said society may solicit members for the purpose of completing its organization and shall collect from each applicant the amount of not less than one (1) regular monthly payment, in accordance with its table of rates as provided by its constitution and laws, and shall issue to each such applicant a receipt for the amount so collected. No such society shall incur any liability other than for such advanced payments, nor issue any benefit certificate, nor pay or allow, or offer or promise to pay or allow, to any person any death or disability benefit until actual bona fide applications for death benefit certificates have been secured upon at least five hundred (500) lives for at least One Thousand Dollars ($1,000.00) each, and all such applicants for death benefits shall have been regularly examined by legally qualified practicing physicians, and certificates of such examinations have been duly filed and approved by the chief medical examiner of such society; nor until there shall be established ten subordinate lodges or branches into which said five hundred (500) applicants have been initiated; nor until there has been submitted to the commissioner of insurance, under oath of the president and secretary or corresponding officers of such society, a list of such applicants, giving their names, addresses, date examined, date approved, date initiated, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted, rate of stated periodical contributions which shall be sufficient to meet the requirements of subsection (1) of Section 83-29-19, nor until it shall be shown to the commissioner of insurance by the sworn statement of the treasurer or corresponding officer of such society that at least five hundred (500) applicants have each paid in cash at least one (1) regular monthly payment as herein provided for One Thousand Dollars ($1,000.00) of indemnity to be effected, which payments in the aggregate shall amount to at least Twenty-five Hundred Dollars ($2500.00); all of which shall be credited to the mortuary or disability fund on account of such applicants, and no part of which may be used for expenses. Said advanced payments shall, during the period of organization, be held in trust and, if the organization is not completed within one (1) year as hereinafter provided, returned to said applicants. The commissioner of insurance may make such examination and require such further information as he deems advisable, and upon presentation of satisfactory evidence that the society has complied with all the provisions of law, he shall issue to such society a certificate to that effect. Such certificate shall be prima facie evidence of the existence of such society at the date of such certificate. The commissioner of insurance shall cause a record of such certificate to be made, and a certified copy of such record may be given in evidence with like effect as the original certificate. No preliminary certificate granted under the provisions of this section shall be valid after one (1) year from its date, or after such further period, not exceeding one (1) year, as may be authorized by the commissioner of insurance, upon cause shown, unless the five hundred (500) applicants herein required have been secured and the organization has been completed as herein provided. The articles of incorporation and all proceedings thereunder shall become null and void in one (1) year from the date of said preliminary certificate, or at the expiration of said extended period, unless such society shall have completed its organization and commenced business as herein provided. When any domestic society shall have discontinued business for the period of one (1) year, or has less than four hundred (400) members, its charter shall become null and void. Every such society shall have the power to make a constitution and bylaws for the government of the society, the admission of its members, the management of its affairs, and the fixing and readjusting of the rates of contribution of its members from time to time; and it shall have the power to change, alter, add to, or amend such constitution and bylaws and have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.

Miss. Code Ann. § 83-29-23 Powers retained.

Any society now engaged in transacting business in this state may exercise all of the rights conferred hereby and all of the rights, powers, and privileges now exercised or possessed by it under its charter or articles of incorporation not inconsistent with this chapter, if incorporated. Any such domestic society may, upon filing notice thereof with the commissioner of insurance, be deemed from and after the date of filing such notice to be fully organized under the provisions of this chapter or, if it be a voluntary association, it may incorporate hereunder. No society already organized shall be required to reincorporate hereunder, and any such society may amend its articles of incorporation from time to time in the manner provided therein or in its constitution and laws. All such amendments shall be filed with the commissioner of insurance and shall become operative upon such filing, unless a later time be provided in such amendments or in its articles of incorporation, constitution, or laws.

Miss. Code Ann. § 83-29-25 Mergers and transfers.

No domestic society shall merge with or accept the transfer of the membership or funds of any other society unless such merger or transfer is evidenced by a contract in writing, setting out in full the terms and conditions of such merger or transfer and filed with the commissioner of insurance of this state, together with a sworn statement of the financial condition of each of said societies by its president and secretary, or corresponding officers, and a certificate of such officers, duly verified under oath of said officers of each of the contracting societies, that such merger or transfer has been approved by a majority of the votes cast by the members of the supreme legislative or governing body of each of the said societies. Upon the submission of said contract, financial statements, and certificates, the commissioner of insurance shall examine the same and, if he shall find such financial statements to be correct and the said contract to be in conformity with the provisions of this section and that such merger or transfer is just and equitable to the members of each of said societies, he shall approve said merger or transfer, issue his certificate to that effect, and thereupon the said contract of merger or transfer shall be of full force and effect.

Miss. Code Ann. § 83-29-27 Annual license.

Societies which are now authorized to transact business in this state may continue such business until the first day of January next succeeding the adoption of this chapter, and the authority of such societies may hereafter be renewed annually, but in all cases to terminate on the first day of the succeeding January; provided, however, the license shall continue in full force and effect until the new license is issued or specifically refused. For each such license or renewal the society shall pay the Commissioner of Insurance the fees prescribed in Sections27-15-83 and 83-5-75.

Miss. Code Ann. § 83-29-29 Admission of foreign society.

No foreign society not now authorized to transact business in this state shall transact any business herein without a license from the commissioner of insurance. Any such society shall be entitled to transact business within this state upon filing with the commissioner a duly certified copy of its charter or articles of association; a copy of its constitution and laws, certified by its secretary or corresponding officer; a power of attorney to the commissioner as hereinafter provided; the last annual statement of its business, under oath of its president and secretary or corresponding officers, in the form required by the commissioner, duly verified by an examination made by the supervising insurance official of its home state or other state satisfactory to the commissioner of insurance of this state; a certificate from the proper official in its home state, province, or country that the society is legally organized; a copy of its insurance contracts, which must show that benefits are provided for by periodical or other payments by persons holding similar contracts; and upon furnishing the commissioner such other information as he may deem necessary to a proper exhibit of its business and plan of working, and upon showing that its assets are invested in accordance with the laws of the states, territory, district, province, or country where it is organized, he shall issue a license to such society to do business in this state until the first day of the succeeding March. Such license shall, upon compliance with the provisions of this chapter, be renewed annually, but in all cases to terminate on the first day of the succeeding March; provided, however, that license shall continue in full force and effect until the new license be issued or specifically refused. Any foreign society desiring admission to this state shall have the qualifications required of domestic societies organized under this chapter, upon a valuation by any one of the standards authorized in this chapter, and shall at the same time possess net cash assets of not less than One Hundred Thousand Dollars ($100,000.00), or net cash assets of not less than Fifty Thousand Dollars ($50,000.00) with also invested assets of not less than One Hundred Thousand Dollars ($100,000.00), and in each case with additional contingent assets of not less than Three Hundred Thousand Dollars ($300,000.00); and shall have its assets invested as required by the laws of the state, territory, district, country, or province where it is organized. For each such license or renewal the society shall pay the commissioner Twenty-five Dollars ($25.00). When the commissioner refuses to license any society, or revokes its authority to do business in this state, he shall reduce his ruling, order, or decision to writing and file the same in his office, and shall furnish a copy thereof, together with a statement of his reason, to the officers of the society, upon request. Nothing contained in this, or the preceding section, or in this chapter, shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time such society was legally authorized to transact business therein, and such society shall have full right and authority to continue to collect payments from its members, to carry out its contracts, and to perform all the usual functions of said society except that of acquiring and admitting new members in this state after it has either been refused a renewal of its license herein or has voluntarily relinquished said license. Such activities on its part shall not be construed as doing business in said state so as to subject it to any fee, demand, or charge whatsoever from the insurance department or other agency of this state.

Miss. Code Ann. § 83-29-31 Power of attorney and service of process.

Every society, whether domestic or foreign, now transacting business in this state and every such society hereafter applying for admission shall, before being licensed, appoint in writing the Commissioner of Insurance and his successors in office to be its true and lawful attorney on whom all legal process in any action or proceeding against it 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 the society, and that the authority shall continue in force so long as any liability remains outstanding in this state. Copies of such appointment, certified by the Commissioner of Insurance, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service shall only be made upon such attorney, shall be made in duplicate upon the Commissioner of Insurance or, in his absence, upon the person in charge of his office, and shall be deemed sufficient service upon such society. No such service shall be valid or binding against any such society when it is required thereunder to file its answer, pleading, or defense in less than thirty (30) days from the date of mailing the copy of the service to the society. When legal process against any such society is served upon the Commissioner of Insurance, he shall forthwith forward by certified mail one of the duplicate copies prepaid and directed to the secretary or corresponding officer. Legal process shall not be served upon any such society except in the manner provided herein.

Miss. Code Ann. § 83-29-33 Place of meeting.

Any domestic society may provide that the meetings of its legislative or governing body may be held in any state, district, province, or territory wherein such society has subordinate branches, and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in this state; but its principal office shall be located in this state.

Miss. Code Ann. § 83-29-35 No personal liability.

Officers and members of the supreme, grand, or any subordinate body of any such incorporated society shall not be individually liable for the payment of any disability or death benefit provided in the laws and agreements of such society; but the same shall be payable only out of the funds of such society and in the manner provided by its laws.

Miss. Code Ann. § 83-29-37 Waiver of the provisions of the laws.

The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws and constitution of the society, and the same shall be binding on the society and each and every member thereof and on all beneficiaries of members. No custom or course of conduct in violation of any of the provisions of the laws and constitution of the society shall be held to constitute waiver or estoppel on the part of the society.

Miss. Code Ann. § 83-29-39 Benefit not attachable.

No money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any such society shall be liable to attachment, garnishment, or other process, or be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary or any other person who may have a right thereunder, either before or after payment.

Miss. Code Ann. § 83-29-41 Constitution and laws.

Every society transacting business under this chapter shall file with the commissioner of insurance a duly certified copy of all amendments of or additions to its constitution and laws within ninety days (90) after the enactment of the same. Printed copies of the constitution and laws as amended, changed, or added to, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.

Miss. Code Ann. § 83-29-43 Annual reports.

Every society transacting business in this state shall annually, on or before the first day of March, file with the commissioner of insurance, in such form as he may require, a statement under oath of its president and secretary, or corresponding officers, of its condition and standing on the thirty-first day of December last preceding and of its transactions for the year ending on that date, and also shall furnish such other information as the commissioner may deem necessary to a proper exhibit of its business and plan of working. The commissioner may at other times require any further statement he may deem necessary to be made relating to such society, for the elucidation of any items in such annual report. In addition to the annual report herein required, every society shall report annually to the commissioner of insurance on or before the first day of March a valuation by a competent actuary of its certificates in force on the thirty-first day of December last preceding. This valuation shall not be considered or regarded as a test of the financial solvency of the society, but as an indication of the ability of the society to pay the benefits promised under its certificates without change in benefits or in rates of contribution; and each society shall be held to be legally solvent as long as the funds belonging to the society are equal to or in excess of its matured liabilities. For the purposes of this valuation, the society may divide the certificates in its life insurance department into classes or sections according to the rates of contribution charged from time to time. The method of valuation used shall be such as to produce not less than the net level premium reserves or, if part or the whole of the first year’s contributions is used for expenses, the reserve according to the full preliminary term method of valuation or, as to all business hereafter written, the reserve according to the Illinois standard of valuation, the net premiums valued being the net premiums according to the valuation basis used, with due regard to the method used by the society in computing the member’s age at entry or at re-rating. If, due to a readjustment or to a change of a member’s plan of insurance, the regular rate of contribution paid by the member is lower than the regular rate of contribution he should have paid according to his attained age at the date of readjustment or change of plan of insurance, an additional reserve shall be set up equal to the additional liability caused by the payment of such reduced regular rate of contribution. If a member is paying a regular rate of contribution which is used solely for the payment of benefits, which is in excess of the valuation net premium according to the member’s age at entry, or at re-rating, credit may be taken in the valuation for such regular contributions to an amount not greater than the present value of the benefits promised the said member, as at the date of valuation. The table of mortality used in the valuation shall be the national fraternal congress table of mortality as adopted by the national fraternal congress August 23, 1899, or any other table of mortality recognized by the law of any state as a legal basis for the computation of premiums or reserves for life insurance companies or fraternal societies, or at its option a society may use a table based on its own experience of at least twenty (20) years and covering not less than one hundred thousand (100,000) lives, provided the mortality table used shall reasonably represent the actual mortality experience of the society. The tables used for the valuation of benefits dependent upon total and permanent disability shall be tables based upon reliable experience, and the society may value its life insurance benefits and disability benefits as one contract or may value such benefits separately. The rate of interest used in the valuation shall not be greater than the average net rate which the society earned on its admitted assets during the five (5) years immediately preceding the date of the valuation. Any society which shall show by the above method of valuation at four percent (4%) interest per annum or less that the admitted assets belonging to its life insurance department, or any class or section thereof, are at least equal to the reserve determined by the valuation of the certificates of such department, or class or section thereof, together with accrued liabilities under such certificates, may grant to the members in such department, or class or section thereof, any form of withdrawal equities or surrender values, not greater in value in any individual case than the reserve under the certificate, or make loans to them not greater than the value of such withdrawal equities or surrender values, and may make distribution of such portion of the surplus over and above such reserves and accrued liabilities, or may transfer such portion of the said surplus to the assets belonging to any other class or section of the society as may be determined by its board of directors or trustees upon the advice of its actuary. A report of such valuation and an explanation of the facts concerning the condition of the society, of each class or section, thereby disclosed shall be printed and mailed to each beneficiary member of the society not later than June 1st of each year; or, in lieu thereof, such report of valuation and showing of the society’s condition as thereby disclosed may be published in the society’s official paper and the issue containing the same mailed to each beneficiary member of the society. The laws of such society shall provide that if the stated periodical contributions of the members are insufficient to pay all matured death and disability claims in full and to provide for the creation and maintenance of the funds required by its laws, additional, increased, or extra rates of contribution shall be collected from the members to meet such deficiency. Such laws may provide that, upon the written application or consent of the member, his certificate may be charged with its proportion of any deficiency disclosed by valuation, with interest not exceeding five percent (5%) per annum. In lieu of the requirements of subsection (1) of this section, any society now licensed in this state may, prior to_______________ , file its election, and thereafter, until it shall rescind such action, it may value its certificates on a basis herein designated “accumulation basis” by crediting each member with the net amount contributed for each year and with interest at approximately the net rate earned and by charging him with his share of the losses for each year, herein designated “cost of insurance”, and carrying the balance, if any, to his credit. The charge for the cost of insurance may be according to the actual experience of the society applied to a table of mortality recognized by the law of this state, and shall take into consideration the amount at risk during each year, which shall be the amount payable at death less the credit to the member. Except as specifically provided in its articles or laws or contracts, no charge shall be carried forward from the first valuation hereunder against any member for any past share of losses exceeding the contribution and credit. Any excess share of losses chargeable to any member may be paid out of a fund or contributions especially created or required for such purpose. Any member may transfer to any plan adopted by the society with net rates on which tabular reserves are maintained, and on such transfer shall be entitled to make such application of his credit as provided in the laws of the society. Certificates issued, created, or readjusted on a basis providing for adequate rates with adequate reserves to mature such certificates upon assumption for mortality and interest recognized by the law of this state shall be valued on such basis, herein designated the “tabular basis”, provided that if on the first valuation under this section a deficiency in reserve shall be shown for any such certificate, the same shall be valued on the accumulation basis. Whenever in any society having members upon the tabular basis and upon the accumulation basis, the total of all costs of insurance provided for any year shall be insufficient to meet the actual death and disability losses for the year, the deficiency shall be met for the year from the available funds after setting aside all credits in the reserve, or from increased contribution, or by an increase in the number of assessments applied to the society as a whole or to classes or members as may be specified in its laws. Savings from a lower amount of death losses may be returned in like manner as may be specified in its laws. If the laws of the society so provide, the assets representing the reserves of any separate class of members may be carried separately for such class as if in an independent society, and the required reserve accumulation of such class so set apart shall not thereafter be mingled with the assets of other classes of the society. A table showing the credits to individual members for each age and year of entry and showing opposite each credit the tabular reserve required on the whole life, or other plan of insurance specified in the contract, according to assumption for mortality and interest recognized by the law of this state and adopted by the society, shall be filed by the society with each annual report and also be furnished to each member before July 1st of each year. In lieu of the aforesaid statement, there may be furnished to each member within the same time a statement giving the credit for such member and giving the tabular reserve and level rate required for a transfer carrying out the plan of insurance specified in the contract. No table or statement need be made or furnished where the reserves are maintained on the tabular basis. For this purpose, individual bookkeeping accounts for each member shall not be required, and all calculations may be made by actuarial methods. Nothing herein contained shall prevent the maintenance of such surplus over and above the credits on the accumulation basis and the reserves on the tabular basis as the society may provide by or pursuant to its laws; nor to be construed as giving to the individual member any right or claim to any such reserve or credit other than in manner as expressed in the contract and its laws; nor as making any such reserve or credits a liability in determining the legal solvency of the society.

Miss. Code Ann. § 83-29-45 Examination of domestic societies.

The Commissioner of Insurance, or any person or persons he may appoint, shall have the power of visitation and examination into the affairs of any domestic society. They shall have free access to all the books, papers, and documents that relate to the business of the society. The expenses of such examination shall be paid by the society examined, upon statement furnished by the Commissioner of Insurance, and the examination shall be made as often as the commissioner, in his sole discretion, deems appropriate but, at a minimum, at least once in every five (5) years. Whenever after examination the Commissioner of Insurance is satisfied that any domestic society has failed to comply with any provisions of this chapter, or is exceeding its powers, or is not carrying out its contracts in good faith, or is transacting business fraudulently, or whenever any domestic society, after the existence of one (1) year or more, shall have a membership of less than four hundred (400) or shall determine to discontinue business, the Commissioner of Insurance may present the facts relating thereto to the Attorney General, who shall, if he deem the circumstances warrant, commence an action in quo warranto in a court of competent jurisdiction. Such court shall thereupon notify the officers of such society of a hearing, and if it shall then appear that such society should be closed, said society shall be enjoined from carrying on any further business; and some person shall be appointed receiver of such society and shall proceed at once to take possession of the books, papers, monies, and other assets of the society and shall forthwith, under the direction of the court, proceed to close the affairs of the society and to distribute its funds to those entitled thereto.

Miss. Code Ann. § 83-29-47 Application for receiver, etc.

No application for injunction against or proceeding for the dissolution of or the appointment of a receiver for any such domestic society or branch thereof shall be entertained by any court in this state unless the same is made by the attorney general or the commissioner of insurance.

Miss. Code Ann. § 83-29-49 Examination of foreign societies.

The commissioner of insurance, or any person or persons whom he may appoint, may examine any foreign society transacting or applying for admission to transact business in this state. They shall have free access to all the books, papers, and documents that relate to the business of the society. He may, in his discretion, accept in lieu of such examination the latest examination of the insurance department of the state, territory, district, province, or country where such society is organized. The expenses of making any such examination shall be paid by the society upon statement furnished by the commissioner of insurance. If any such society or its officers refuse to submit to such examination or to comply with the provisions of the section relative thereto, the authority of such society to write new business in this state shall be suspended or license refused until satisfactory evidence is furnished the commissioner relating to the condition and affairs of the society, and during such suspension the society shall not write new business in this state.

Miss. Code Ann. § 83-29-51 No adverse publications.

Pending, during, or after an examination or investigation of such society, either domestic or foreign, the commissioner of insurance shall make public no financial statement, report, or finding, nor shall he permit to become public any financial statement, report, or finding affecting the status, standing, or rights of any such society until a copy thereof shall have been served upon such society, at its home office; nor until such society shall have been afforded a reasonable opportunity to answer any such financial statement, report, or finding and to make such showing in connection therewith as it may desire.

Miss. Code Ann. § 83-29-53 Revocation of license.

When the commissioner of insurance on investigation is satisfied that any foreign society transacting business under this chapter has exceeded its powers, or has failed to comply with any provisions of this chapter, or is conducting business fraudulently, or is not carrying out its contracts in good faith, he shall notify the society of his findings and state in writing the grounds of his dissatisfaction, and after reasonable notice require said society, on a date named, to show cause why its license should not be revoked. If on the date named in said notice such objections have not been removed to the satisfaction of the said commissioner or the society does not present good and sufficient reasons why its authority to transact business in this state should not at that time be revoked, he may revoke the authority of the society to continue business in this state. All decisions and findings of the commissioner made under the provisions of this section may be reviewed by proper proceedings in any court of competent jurisdiction.

Miss. Code Ann. § 83-29-55 Certain societies not affected.

Nothing contained in this chapter shall be construed to affect or apply to grand or subordinate lodges of Masons, Odd Fellows, or Knights of Pythias exclusive of the insurance department of the supreme lodge Knights of Pythias, and the Junior Order of United American Mechanics exclusive of beneficiary degree or insurance branch of the National Council Junior Order United American Mechanics, or societies which admit to membership only persons engaged in one or more hazardous occupation in the same or similar lines of business. The commissioner of insurance may require from any society such information as will enable him to determine whether such society is exempt from the provisions of this chapter. Any fraternal benefit society heretofore organized and incorporated and operating within the definition set forth in Sections 83-29-1, 83-29-3, and 83-29-5, providing for benefits in case of death or disability resulting solely from accidents, but which does not obligate itself to pay death or sick benefits, may be licensed under the provisions of this chapter, and shall have all the privileges and shall be subject to all the provisions and regulations of this chapter, except that the provisions of this chapter as to valuations of benefit certificates shall not apply to such society.

Miss. Code Ann. § 83-29-57 Taxation.

Every fraternal benefit society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution; and all of its funds shall be exempt from all and every state, county, district, municipal and state tax other than insurance license taxes as defined by Section 27-15-83 and ad valorem taxes on real estate, office equipment and motor vehicles.

Miss. Code Ann. § 83-29-59 Penalties.

Any person, officer, member, or examining physician of any society authorized to do business under this chapter who shall knowingly or wilfully make any false or fraudulent statement or representation in or with reference to any application for membership, or for the purpose of obtaining money from or benefit in any society transacting business under this chapter, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than Five Hundred Dollars ($500.00), or imprisonment in the county jail for not less than thirty (30) days nor more than one (1) year, or both, in the discretion of the court. Any person who shall willfully make a false statement of any material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such society for the purpose of procuring payment of a benefit named in the certificate of such holder, and any person who shall willfully make any false statement in any verified report or declaration under oath required or authorized by this chapter, shall be guilty of perjury and shall be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury. Any person who shall solicit membership for, or in any manner assist or procure membership in, any fraternal benefit society not licensed to do business in this state, or who shall solicit membership for, or in any manner assist in procuring membership in, any such society not authorized as herein provided to do business as herein defined in this state, shall be punished by a fine of not less than Fifty Dollars ($50.00) nor more than Two Hundred Dollars ($200.00). Any society, or any officer, agent, or employee thereof neglecting or refusing to comply with, or violating any of the provisions of this chapter, the penalty for which neglect, refusal, or violation is not specified in this section, shall be fined not exceeding Two Hundred Dollars ($200.00) upon conviction thereof.

Miss. Code Ann. § 83-29-61 Fraternal benefit societies must give bond.

All fraternal benefit societies domiciled in or incorporated under the laws of Mississippi, or whose principal place of business is therein, shall be required to give a bond in some surety company licensed in Mississippi or in approved securities consisting of bonds of some municipality, county, levee board, or of the State of Mississippi. The minimum of said bond or securities shall be Two Hundred and Fifty Dollars ($250.00) for a minimum membership of two hundred (200), and to increase in sums of Two Hundred and Fifty Dollars ($250.00) for each two hundred (200) additional members, or fraction thereof, until it amounts to the maximum sum of Ten Thousand Dollars ($10,000.00).

Miss. Code Ann. § 83-29-63 Suit and judgment on bond.

Said bond shall be conditioned to pay any judgment entered up against any such society in any court of competent jurisdiction in this state, and such judgment shall be a lien upon the bond or securities. The judgment creditor shall have the right to bring suit on said bond for the satisfaction of the judgment in the county in which the judgment is rendered. If the present bylaws of such societies provide for the payment of beneficiaries the sum received from one (1) monthly assessment, nothing herein shall amend or annul the terms of such policies, provided that all beneficiaries shall be paid within ninety (90) days after proof of death has been filed with the proper officer of the society, that said assessments shall be made each month to cover the deaths occurring during the preceding months, and that the funds secured from such monthly assessments shall be kept separately and the total amount of each monthly assessment shall be clearly shown on the book account, together with the names of the beneficiaries and the amount due them; provided, that societies may levy extra assessments to pay claims already due. One or more suits on the bond herein required shall not vitiate the bond or prevent additional recovery thereon; but when judgments shall be recovered to the amount of the bond, the insurance commissioner shall require an additional bond.

Miss. Code Ann. § 83-29-65 Society must make up all delinquencies.

Domestic societies delinquent with their beneficiaries for death claims must show an improvement by annually decreasing the amount of same not less than five percent (5%). Failure to do so shall subject them to a revocation of their license.

Miss. Code Ann. § 83-29-67 Separate expense fund must be provided.

All fraternal societies incorporated under the laws of this state, or operating herein, or whose principal place of business is in this state, shall provide a separate fund from which to pay expenses, which shall not exceed for established societies more than twenty percent (20%) of total collections, nor more than twenty-five percent (25%) during the period of organization. Where practicable, the mortality funds shall be kept separate from other funds and be used only for the purpose of paying death benefits.

Miss. Code Ann. § 83-29-69 Authority of fraternal orders revoked for failure to pay judgments.

If a judgment shall be rendered by any court in this state against any fraternal order and such judgment shall not be paid and satisfied within ninety (90) days after the same shall have become final, it shall be the imperative duty of the insurance commissioner, immediately upon being advised that such judgment has not been paid or satisfied within the time named, to revoke any and every authority granted to such fraternal order, or any agent thereof, to transact any business in this state. No such fraternal order, or agent thereof, shall thereafter transact any business in this state until again duly licensed, and in case of such revocation no renewal license or certificate of authority to transact business in this state shall be granted to such fraternal order for three (3) years after such revocation. Whenever such license or certificate of authority shall be revoked, the insurance commissioner shall publish such revocation in some newspaper published in this state.

Miss. Code Ann. § 83-29-71 Conversion of fraternal benefit societies into stock companies.

Any fraternal benefit society organized and doing business under the laws of this state may be converted into a stock life or stock life and disability company upon the terms and conditions as follows: Whenever the supreme governing legislative body of any fraternal benefit society incorporated under the laws of this state shall, by a two-thirds (2/3) vote, determine that a change or conversion from a fraternal benefit society to a regular stock life or stock life and disability company shall be to the best interest of the society and its members, or when a majority of the members in good standing of any such domestic fraternal benefit society shall in writing signify their desire for such conversion, or in event the supreme governing legislative body of any fraternal benefit society prior to the adoption of this chapter has by proper resolution expressed its desire and purpose to change or convert said society into a level premium life insurance company, then in either event said fraternal benefit society may adopt and file with the insurance commissioner of Mississippi an amendment or amendments to its articles of incorporation authorizing it to change or convert from a fraternal to a domestic stock life or stock life and disability company; and said amendment shall become operative upon its approval by the insurance commissioner unless a later time be provided in said amendment. If the amendment is approved by the insurance commissioner, he shall issue his certificate of approval in writing. Thereafter the company shall have legal existence as a domestic stock life or stock life and disability company as indicated by the amendment, may reorganize by the election of a board of directors and the adoption of bylaws, and proceed to transact the business of such company in accordance with and be subject to all laws defining the powers and providing for the regulation of stock life insurance companies. Provided, however, that no such conversion from a fraternal benefit society to a regular stock or disability company shall be had unless written notice of such proposed change be deposited in the United States mail, registered and postage prepaid, to every member of such fraternal benefit society at his last known post office address at least ninety (90) days before the proposed change or conversion is to be acted upon by the supreme governing body; but the notice provided herein shall not apply to or be required of any fraternal society whose district councils, or state or division grand lodges composed of delegates from branch councils or subordinate lodges, have by a two-thirds (2/3) vote already authorized or instructed its national council or supreme legislative governing body to change or convert their society into a level premium life insurance or disability company before March 19, 1926, or when such proposed change to a stock life or stock life and disability company, before becoming effective, is submitted to and unanimously approved by the national council or supreme governing body of such fraternal society at a regular meeting of such national council or supreme governing body, or at a special meeting of the national council or supreme governing body called by the national or supreme president for the purpose of considering such proposal. The national or supreme president of any such fraternal benefit society may prepare in writing a ballot and, on ninety (90) days’ written notice to each member, take a referendum vote in writing as to any such proposed change or conversion. If two thirds (2/3) of the membership by said referendum vote authorize the national council or supreme legislative governing body to change or convert the society into a stock life or stock life and disability company, then in that event the national council or supreme legislative governing body of said society may proceed to vote said change, and its action in the premises shall be binding upon all members. The amendment to the charter, the method of placing any surplus belonging to any such fraternal benefit society to capital stock, and the method of prorating the stock among the membership in a way to protect the interests of all policyholders and members, shall be under the jurisdiction of the insurance commissioner and subject to his approval.

Miss. Code Ann. § 83-29-73 Fraternal societies may insure children.

Any fraternal benefit society organized under the laws of this state, or doing business in this state, may issue certificates for the payment of sick, death, or annuity benefits upon the lives of children between the ages of one (1) and eighteen (18) years who have been examined and approved in accordance with the laws of such society, provided that the applications for such a benefit certificate shall be made by a parent or guardian of such child or some person upon whom the child is dependent for support. When such child shall arrive at the age permitting a personal application for insurance under the laws of the society, the certificate issued under this provision may be exchanged for any other form of certificate issued by the society, such exchange to be in accordance with the constitution, laws, and regulations of such society, the free designation of a beneficiary in such exchange being left to the child.

Miss. Code Ann. § 83-29-75 Conditions under which certificates to be issued.

Such society shall not issue any such benefit certificate until after it shall have simultaneously put in force at least five hundred (500) such certificates, on each of which at least one (1) assessment has been paid, nor where the number of lives represented by such certificate falls below five hundred (500).

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