Exemption of certain societies

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  1. (a) Nothing contained in this chapter shall be so construed as to affect or apply to:

    1. (1) Grand or subordinate lodges of societies, orders, or associations now doing business in this state which provide benefits exclusively through local or subordinate lodges;

    2. (2) Orders, societies, or associations which admit to membership only persons engaged in one (1) or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and the ladies' societies or ladies' auxiliaries to such orders, societies, or associations;

    3. (3) Domestic societies which limit their memberships to employees of a particular city or town, designated firm, business house, or corporation which provide for a death benefit of not more than four hundred dollars ($400) or disability benefits of not more than three hundred fifty dollars ($350) to any person in any one (1) year, or both; or

    4. (4) Domestic societies or associations of a purely religious, charitable, or benevolent description, which provide for a death benefit of not more than four hundred dollars ($400) or for disability benefits of not more than three hundred fifty dollars ($350) to any person in any one (1) year, or both.

  2. (b) Any such society or association described in subdivision (a)(3) or subdivision (a)(4) of this section which provides for death or disability benefits for which benefit certificates are issued, and any such society or association included in subdivision (a)(4) of this section which has more than one thousand (1,000) members, shall not be exempted from the provisions of this chapter but shall comply with all requirements thereof.

  3. (c) No society which, by the provisions of this section, is exempt from the requirements of this chapter, except any society described in subdivision (a)(2) of this section, shall give or allow or promise to give or allow to any person any compensation for procuring new members.

  4. (d) Every society which provides for benefits in case of death or disability resulting solely from accident, and which does not obligate itself to pay natural death or sick benefits, shall have all of the privileges and be subject to all the applicable provisions and regulations of this chapter, except that the provisions thereof relating to medical examination, valuations of benefit certificates, and incontestability shall not apply to such a society.

  5. (e) The Insurance Commissioner may require from any society or association, by examination or otherwise, such information as will enable the commissioner to determine whether the society or association is exempt from the provisions of this chapter.

  6. (f) Societies exempted under the provisions of this section shall be exempt from all other provisions of the general insurance laws of this state.


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