US Laws, Codes, Statutes & Cases

§178.  Mortality endowments prohibited

A.  No life insurer (including industrial, service, non-profit funeral associations and fraternal benefit societies) shall be permitted to issue policies, certificates or contracts to policyholders or members stipulating for the establishment of its policyholders or members into divisions and classes for the purpose of providing for the payment of benefits from special funds created for such purpose to the oldest member of the division and class or to the member of the division and class whose policy has been in force the longest period of time upon the death of the member in such division and class, except as provided in Sub-section B.  

B.  Any life insurer specified in Sub-section A heretofore operating on the plan specified in Sub-section A in this state since before October 1, 1948 may continue so to do upon condition that such life insurer shall not after that date establish its policyholders or members into divisions or classes other than the divisions or classes actually containing subsisting policies or certificates as of July 28th, 1936.  

Acts 1958, No. 125.