Upon receipt of a preliminary certificate 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 as provided by its constitution and laws and shall issue to each such applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of such advance premium, nor issue any certificate, nor pay, allow, or offer or promise to pay or allow any death or disability benefit to any person until:
(1) Actual bona fide applications for death benefits have been secured aggregating at least $500,000.00 on not less than 500 lives;
(2) All such applicants for death benefits shall have furnished evidence of insurability satisfactory to the society;
(3) Certificates of examinations or acceptable declarations of insurability have been duly filed and approved by the chief medical examiner of the society;
(4) Ten subordinate lodges or branches have been established into which the 500 applicants have been admitted;
(5) There has been submitted to the commissioner, under oath of the president or secretary, or corresponding officer of the society, a list of such applicants, giving their names, addresses, date each was admitted, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted and premiums therefor; and
(6) It shall have been shown to the commissioner, by sworn statement of the treasurer, or corresponding officer of such society, that at least 500 applicants have each paid in cash at least one regular monthly premium as provided in this chapter, which premiums in the aggregate shall amount to at least $2,500.00, all of which shall be credited to the fund, or funds, from which benefits are to be paid and no part of which may be used for expenses. Such 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 one year, as provided in this chapter, the premiums shall be returned to the applicants.
Structure Code of Alabama
Chapter 34 - Fraternal Benefit Societies.
Section 27-34-1 - Definitions.
Section 27-34-2 - Societies Deemed Operating on Lodge System.
Section 27-34-3 - When Society Deemed as Having Representative Form of Government.
Section 27-34-4 - Applicability of Chapter - Generally.
Section 27-34-5 - Applicability of Chapter - Exceptions.
Section 27-34-6 - License - Requirement; Renewal; Fee; Evidence.
Section 27-34-7 - License - Foreign or Alien Societies - Application; Qualifications.
Section 27-34-8 - License - Foreign or Alien Societies - Suspension, Revocation, or Refusal.
Section 27-34-9 - Articles of Incorporation - Contents.
Section 27-34-11 - Preliminary Certificate - Time to Complete Organization.
Section 27-34-12 - Preliminary Certificate - Initial Solicitations and Qualifications.
Section 27-34-13 - Certificate of Compliance.
Section 27-34-14 - Constitution and Laws; Powers.
Section 27-34-15 - Existing Incorporated Societies.
Section 27-34-16 - Incorporation of Existing Unincorporated Domestic Voluntary Associations.
Section 27-34-17 - Amendment of Articles of Incorporation, Constitution, or Laws.
Section 27-34-18 - Waiver of Societies' Laws and Constitution.
Section 27-34-20 - Creation, etc., of Charitable, Benevolent, or Educational Institutions.
Section 27-34-21 - Members - Qualifications for Membership.
Section 27-34-22 - Members - Payment of Equitable Part of Deficiency.
Section 27-34-23 - Benefits - Generally.
Section 27-34-24 - Benefits - Lives of Children.
Section 27-34-26 - Beneficiaries.
Section 27-34-27 - Exemption of Benefits, etc., From Attachment, Garnishment, or Other Process.
Section 27-34-28 - Personal Liability for Payment of Benefits.
Section 27-34-29 - Issuance of Certificate to Each Benefit Member; Matters Constituting Agreement.
Section 27-34-30 - Life Benefit Certificate - Filing With Commissioner; Standard Provisions.
Section 27-34-31 - Life Benefit Certificate - Prohibited Provisions.
Section 27-34-32 - Accident or Health and Total or Permanent Disability Insurance Contracts.
Section 27-34-33 - Reinsurance.
Section 27-34-34 - Assets; Funds; Expenses.
Section 27-34-35 - Investments.
Section 27-34-36 - Annual Statements - Requirements.
Section 27-34-37 - Annual Statements - Valuation of Certificates; Reserves.
Section 27-34-38 - Annual Statements - Failure to File.
Section 27-34-39 - Examinations - Domestic Societies.
Section 27-34-40 - Examinations - Foreign and Alien Societies.
Section 27-34-41 - Examinations - Publication of Financial Statement, Report, or Finding.
Section 27-34-42 - Exemption From Taxation.
Section 27-34-43 - Applicability of Chapters 7 and 8a.
Section 27-34-44 - Agents - Solicitation Without License.
Section 27-34-45 - Misrepresentations.
Section 27-34-46 - Discrimination, Inducements, and Rebates.
Section 27-34-47 - Service of Process.
Section 27-34-48 - Consolidation or Merger - Procedure.
Section 27-34-49 - Consolidation or Merger - Effect.
Section 27-34-50 - Actions to Enjoin or in Quo Warranto; Liquidation; Receivership.
Section 27-34-51 - Applications for Injunctions.
Section 27-34-52 - Review of Decisions and Findings of Commissioner.