2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 512B - FRATERNAL BENEFIT SOCIETIES
512B.11 - ORGANIZATION.

        512B.11  ORGANIZATION.
         A domestic society organized on or after the effective date of
      this Act shall be formed as follows:
         1.  Seven or more citizens of the United States, a majority of
      whom are citizens of this state, who desire to form a fraternal
      benefit society, may sign and file with the secretary of state and
      commissioner of insurance an original or copy of a document
      containing, at minimum, the following:
         a.  The proposed corporate name of the society, which shall
      not so closely resemble the name of any other society or insurance
      company as to be misleading or confusing.
         b.  The purposes for which the society is being formed and the
      mode in which its corporate powers are to be exercised.  The purposes
      shall not include more liberal powers than are granted by this
      chapter.
         c.  The names and residences of the incorporators.
         d.  The names, residences, and official titles of all the
      officers, trustees, directors, or other persons who are to have and
      exercise the general control of the management of the affairs and
      funds of the society for the first year or until the ensuing election
      at which officers shall be elected by the supreme governing body, or
      board of directors, which election shall be held not later than one
      year from the date of issuance of the permanent certificate of
      authority.
         2.  The articles of incorporation, duly certified copies of the
      society's regulations and laws, copies of all proposed forms of
      certificates, applications, and circulars to be issued by the
      society, and a bond conditioned upon the return to applicants of the
      advance premiums if the organization is not completed within one year
      shall be filed with the commissioner of insurance, who may require
      further information as the commissioner deems necessary.  The bond
      with sureties approved by the commissioner shall be in an amount, not
      less than three hundred thousand dollars nor more than one million
      five hundred thousand dollars, as required by the commissioner.  All
      documents filed are to be in the English language.  If the purposes
      of the society conform to the requirements of this chapter and all
      provisions of the law have been complied with, the commissioner shall
      so certify, retain and file the articles of incorporation, and
      furnish the incorporators a preliminary certificate of authority
      authorizing the society to solicit members as provided in this
      chapter.
         3.  A preliminary certificate of authority granted under this
      section is not valid after one year from its date or after a further
      period, not exceeding one year, as may be authorized by the
      commissioner upon cause shown, unless the five hundred applicants
      required in this section have been secured and the organization has
      been completed as provided in this chapter.  The articles of
      incorporation and all other proceedings become void in one year from
      the date of the preliminary certificate of authority, or at the
      expiration of the extended period, unless the society has completed
      its organization and received a certificate of authority to do
      business as provided in this chapter.
         4.  Upon receipt of a preliminary certificate of authority from
      the commissioner, the society may solicit members for the purpose of
      completing its organization, shall collect from each applicant the
      amount of not less than one regular monthly premium in accordance
      with its table of rates, and shall issue to each applicant a receipt
      for the amount so collected.  A society shall not incur a liability
      other than for the return of advance premiums, shall not issue a
      certificate, nor pay, allow, offer, or promise to pay or allow, a
      benefit to any person until all of the following conditions are
      satisfied:
         a.  Actual bona fide applications for benefits have been
      secured on not less than five hundred applicants, and any necessary
      evidence of insurability has been furnished to and approved by the
      society.
         b.  At least ten subordinate lodges have been established into
      which the five hundred applicants have been admitted.
         c.  A list of the applicants has been submitted to the
      commissioner, under oath of the president or secretary, or
      corresponding officer of the society, giving the applicants' names
      and addresses, the date each applicant was admitted, the name and
      number of the subordinate lodge of which each applicant is a member,
      the amount of benefits to be granted, and the premiums for the
      benefits.
         d.  It has been shown to the commissioner, by sworn statement
      of the treasurer, or corresponding officer of the society, that at
      least one thousand applicants have each paid in cash at least one
      regular monthly premium, which premiums in the aggregate shall amount
      to at least three hundred thousand dollars.  Advance premiums shall
      be held in trust during the period of organization and if the society
      has not qualified for a certificate of authority within the time
      permitted by this section, each premium shall be returned to the
      respective applicant.
         5.  The commissioner may make an examination and require further
      information as the commissioner deems advisable.  Upon presentation
      of satisfactory evidence that the society has complied with all
      applicable provisions of law, the commissioner shall issue to the
      society a certificate of authority and the society is then authorized
      to transact business pursuant to this chapter.  A certificate of
      authority is prima facie evidence of the existence of the society at
      the date of the certificate.  The commissioner shall cause a record
      of each certificate of authority to be made.  A certified copy of the
      record shall be accepted in evidence with like effect as the original
      certificate of authority.
         6.  An incorporated society authorized to transact business in
      this state on January 1, 1991, is not required to reincorporate.  A
      certified copy of the current articles of incorporation of an
      existing society shall be filed with the commissioner and the
      commissioner may request additional records as the commissioner deems
      necessary before issuing a certificate of authority to an existing
      society.  

         90 Acts, ch 1148, §11