Section 19. Deferred payments or instalments of claims shall be considered as fixed liabilities on the happening of the contingency upon which such payments or instalments are thereafter to be paid. Such liability shall be the present value of such future payments or instalments upon the rate of interest and mortality assumed by the society for establishing contributions and for valuation; and every society shall at once, upon the filing of due proofs of the happening of the contingency, set apart a fund to meet such deferred payments, regardless of proposed future collections to meet any such payments, and hold such fund, with its interest accretions, in trust for the beneficiary entitled thereto.
No society shall provide for such deferred payments or instalments unless it possesses the full reserve specified in the following section, or, if paying accident benefits only, has assets sufficient to pay all its liabilities.
Structure Massachusetts General Laws
Part I - Administration of the Government
Chapter 176 - Fraternal Benefit Societies
Section 1a - Applicability of Chapter 176v to Fraternal Benefit Societies
Section 1b - Applicability of Chapter 176w to Fraternal Benefit Societies
Section 3 - Representative Form of Government
Section 4 - Articles of Incorporation; Preliminary Certificate; Certificate; Powers
Section 7 - Consolidation or Merger
Section 8 - Conversion to Mutual Life Insurance Company
Section 9 - Admission to Membership
Section 10 - Amendment of Articles of Incorporation
Section 11 - Fraudulent Alteration, etc., of Records
Section 13 - Disbursements; Vouchers
Section 14 - Creation and Operation of Charitable, Benevolent or Educational Institutions
Section 15 - Benefits Other Than Insurance Benefits
Section 16 - Liability of Officers and Members; Indemnification
Section 19 - Deferred Payments or Instalments
Section 20 - Paid-Up Nonforfeiture Benefits, Cash Surrender Values, and Other Options
Section 22 - Attachment or Other Process
Section 22a - Burial Benefits; Restrictions; Payment
Section 24 - Filing Copies of Forms With Commissioner; Standard Provisions of Certificates
Section 25 - Surplus of Assets; Waiver of Contributions
Section 29 - Termination and Renewal of Licenses; Fees; License as Evidence
Section 30 - Licensing of Foreign or Alien Societies
Section 31 - Action by Beneficiary
Section 32 - Foreign Societies; Deposits
Section 33 - Injunction Against Transaction of Business; Grounds; Procedure
Section 34 - Foreign or Alien Societies; Suspension or Denial of License
Section 35 - Agents of Societies; Licensing
Section 36 - Commissioner as Attorney for Service of Process
Section 37 - Injunction; Attorney General
Section 38 - Review of Commissioner's Decisions and Findings
Section 39 - Assets; Special Funds; Expenses
Section 40 - Investment of Funds
Section 41 - Reports; Annual Statements
Section 42 - Valuation of Bonds or Other Evidences of Debt
Section 43 - Additional, Increased or Extra Rates of Contributions
Section 45 - Foreign or Alien Societies; Examination; Confidentiality and Privilege
Section 46 - Financial Statement, Report or Finding; Service Upon Society
Section 47 - Misrepresentations, Etc. Concerning Society or Contract
Section 48 - Unfair Discrimination; Inducements Not Specified in Certificate or Contract
Section 51 - Application of Chapter
Section 53 - Jurisdiction to Restrain Violations, Etc.
Section 55 - Solicitation of Membership in Society Not Authorized to Transact Business, Etc.