378.619. Certificate of ownership, issued to owner, when, contents--life benefit contract, minor effects--impairment of class of certificates, effects--filing with director, when--minor, transfer of c
Certificate of ownership, issued to owner, when, contents--lifebenefit contract, minor effects--impairment of class of certificates,effects--filing with director, when--minor, transfer of control ofcontract to, when.
378.619. 1. Every society authorized to do business inthis state shall issue to each owner of a benefit contract acertificate specifying the amount of benefits provided thereby.The certificate, together with any riders or endorsementsattached thereto, the laws of the society, the application formembership, the application for insurance and declaration ofinsurability, if any, signed by the applicant, and all amendmentsto each thereof, shall constitute the benefit contract, as of thedate of issuance, between the society and the owner, and thecertificate shall so state. A copy of the application forinsurance and declaration of insurability, if any, shall beendorsed upon or attached to the certificate. All statements onthe application shall be representations and not warranties. Anywaiver of this provision shall be void.
2. Any changes, additions or amendments to the laws of thesociety duly made or enacted subsequent to the issuance of thecertificate shall bind the owner and the beneficiaries, and shallgovern and control the benefit contract in all respects the sameas though such changes, additions or amendments had been madeprior to and were in force at the time of the application forinsurance, except that no change, addition or amendment shalldestroy or diminish benefits which the society contracted to givethe owner as of the date of issuance.
3. Any person upon whose life a benefit contract is issuedprior to attaining the age of majority shall be bound by theterms of the application and certificate and by all the laws andrules of the society to the same extent as though the age ofmajority had been attained at the time of application.
4. A society shall provide in its laws that if its reservesas to all or any class of certificates become impaired, its boardof directors or corresponding body may require that there shallbe paid by the owner to the society the amount of the owner'sequitable proportion of such deficiency as ascertained by itsboard, and that if the payment is not made either:
(1) It shall stand as an indebtedness against thecertificate and draw interest not to exceed the rate specifiedfor certificate loans under the certificates; or
(2) In lieu of or in combination with (1), the owner mayaccept a proportionate reduction in benefits under thecertificate. The society may specify the manner of the electionand which alternative is to be presumed if no election is made.
5. Copies of any of the documents mentioned in thissection, certified by the secretary or corresponding officer ofthe society, shall be received in evidence of the terms andconditions thereof.
6. No certificate shall be delivered or issued for deliveryin this state unless a copy of the form has been filed with andapproved by the director in the manner provided for like policiesissued by life insurers in this state. Every life, accident andsickness, health or disability insurance certificate and everyannuity certificate issued on or after one year from January 1,1993, must be approved by the director and shall meet thestandard contract provision requirements not inconsistent withthis chapter for like policies issued by life insurers in thisstate, except that a society may provide for a grace period forpayment of premiums of one full month in its certificates. Thecertificate shall also contain a provision stating the amount ofpremiums which are payable under the certificate and a provisionreciting or setting forth the substance of any sections of thesociety's laws or rules in force at the time of issuance of thecertificate which, if violated, will result in the termination orreduction of benefits payable under the certificate. If the lawsof the society provide for expulsion or suspension of a member,the certificate shall also contain a provision that any member soexpelled or suspended, except for nonpayment of a premium orwithin the contestable period for material misrepresentation inthe application for membership or insurance, shall have theprivilege of maintaining the certificate in force by continuingpayment of the required premium.
7. Benefit contracts issued on the lives of persons belowthe society's minimum age for adult membership may provide fortransfer of control of ownership to the insured at an agespecified in the certificate. A society may require approval ofan application for membership in order to effect this transfer,and may provide in all other respects for the regulation,government and control of such certificates and all rights,obligations and liabilities incident thereto and connectedtherewith. Ownership rights prior to such transfer shall bespecified in the certificate.
8. A society may specify the terms and conditions on whichbenefit contracts may be assigned.
(L. 1992 S.B. 831)Effective 1-1-93