Stipulated Premium Life Insurance. § 303 ber, or upon his decease to his legal representatives or the beneficiary designated by him, which money or benefit is derived from stipulated premiums collected from its members, or members of a class therein, or from interest or accumulations, and wherein the money or other benefits so realized is applied to or accumulated for the use and purposes of such corporation or association as herein specified, and the expenses of its management and prosecution of its business, shall be deemed to be engaged in the business of life insurance upon the stipulated premium plan and shall be subject only to the provisions of this article, excepting that the provisions of article one of the insurance law shall be applicable so far as same are not inconsistent with the provisions of this article. (Added by chap. 85 of 1898, § 1.) 303. Existing corporations, associations or societies qualifying under the article.—Any domestic corporation, association or society existing or doing business at the time this article takes effect, may by vote of a majority of its board of directors or trustees, accept the provisions of this article, and amend its charter to conform with the same, upon obtaining the consent of the superintendent of insurance, thereto, in writing, and thereafter it shall be deemed to have been incorporated under this article; and every such corporation, association or society, in re-incorporating or qualifying under the provisions of this article, shall, for that purpose, so adopt, in whole or in part, a new charter in conformity herewith, so as to cover and enjoy any and all the provisions or privileges of existing laws, which might be included and enjoyed, if it was originally incorporated hereunder; and it shall, upon such adoption of and after obtaining the consent, as in this section provided, to such charter, filing the same with the record of adoption and consent in the office of the superintendent of insurance perpetually enjoy the same as, and be, such corporation, and which is hereby declared to be a continuation of such corporation which existed prior to such re-incorporation, and the officers therein which shall be continued shall be filled by the respective incumbents for the periods for which they were elected, and all others shall be filled in such manner as shall be provided in such amended charter. The re-incorporating or qualifying of any existing domestic corporation, association or society under the provisions of this article shall in no way annul, modify or change any existing contract, contracts or liabilities of such existing corporation, association or society; and any and all such contracts and liabilities shall continue in full force and effect the same as though such corporation, association or society had not re-incorporated or qualified under this article. Neither shall the re-incorporating or qualifying of any such corporation, association or society, under the provisions of this article, in any way prejudice, impede or impair any pending action or proceeding, or any rights previously accrued. (Added by chap. 85 of 1898, § 1.) 8304. Minimum premium.-Every such corporation or association doing business under the provisions of this article shall charge a net premium calculated upon the combined experience or actuaries' table of mortality, with interest at the rate of four per centum per annum, equal to that of a yearly term insurance at the age of entry. Such premium shall be increased by a loading of not less than twenty-five per centum, and may be paid either annually, semi-annually, quarterly or bi-monthly, in advance. (Added by chap. 85 of 1898, § 1.) 305. Reserve fund.-Every such corporation or association shall accumulate, and at all times maintain upon all of its policies or certificates outstanding and in force, a reserve fund of not less than one annual net premium for a one year term insurance, computed on the combined experience or actuaries table of mortality, with interest at four per centum per annum at the age last attained prior to the date of the valuation. If the amount of such reserve fund is at any time reduced to less than one such net premium upon all its outstanding policies and certificates at the attained age of the insured, such deficiency shall be made up and restored to said fund within three months thereafter. Should such impairment of the reserve fund not be made good within three months, then the superintendent of insurance shall require the officers of such corporation or association to forthwith notify its members to pay within thirty days from the mailing of such notice, an extra premium, sufficient to meet such deficiency, apportioned pro rata to the amount of their insurance and to the difference between the actual net premium paid and the net premium at the attained age. If any member or members fail to pay such extra premium within the time named, the corporation or association shall scale down the policy or certificate of each and every member so failing to pay to such an amount as is necessary to make the reserve fund to his credit equal to said net premium on his insurance remaining in force, which amount shall be the maximum for which the corporation or association Stipulated Premium Life Insurance. $$ 306-309 shall be liable under his policy or certificate. Said thirty day notice shall clearly state the proportionate amount of the impairment due from him, and shall contain the further statement that in the event of failure to pay the same within thirty days after the mailing of such notice, his policy will be scaled down as aforesaid. The provisions of this section shall not apply to policies or certificates mentioned and described in section three hundred and six. (Added by chap. 85 of 1898, § 1, and amended by chap. 166 of 1899.) 8306. Limited payment policies.-Any corporation or association doing business under this article may issue limited payment policies or certificates, or may contract to pay fixed cash values or annuities, provided such policies or certificates distinctly state the reserve required to be accumulated and maintained thereunder, which shall be computed on the net premium basis according to the actuaries or combined experience table of mortality, with interest at four per centum per annum, and shall be held by and charged against such corporation in lieu of the reserve provided for in section three hundred and five. (Added by chap. 85 of 1898, § 1; amended by chap. 166 of 1899.) § 307. (Added by chap. 85 of 1898, § 1; repealed by chap. 166 of 1899.) 8308. Distribution of surplus.-If the cash and invested assets of the corporation exceed the reserve fund required by this article and, the actual liabilities of said corporation or association, to an amount in excess of ten per centum of such reserve fund, then the amount of such excess may be apportioned by the corporation as a dividend to members whose policies or certificates shail have been not less than three years in force, in reduction of premiums, in the purchase of paid up or extended insurance or may be drawn in cash; or such dividend or dividends may be paid to the beneficiary of a deceased member in addition to the face of his policy. (Added by chap. 85 of 1898, § 1.) 8 309. Payment of maximum amount.-Every policy or certificate hereafter issued by any corporation doing business under this article, and promising any payment to be made upon a contingency provided for in this article, shall specify the sum of money which it promises to pay upon each contingency insured against, and the number of days after satisfactory proof of the happening of same on which such payment shall be made. Upon the occurrence of such contingency, unless the contract shall have been avoided by fraud, or breach of its conditions, the corporation shall be obligated to the beneficiaries or insured for such payment at the time and to the maximum amount due under the policy or certificate. If the superintendent of insurance shall be satisfied, upon investigation, that any such corporation has refused or failed to make such payment for thirty days after it became due, and after proper demand, he shall notify the corporation to issue no new policies or certificates until such indebtedness is fully paid; and no officer or agent of the corporation shall make, sign or issue any policy or certificate of insurance while such notice is in force. (Added by chap. 85 of 1898, § 1.) § 310. Foreign corporations.-No corporation, association or society organized under the laws of any other state or territory of the United States or of the District of Columbia or foreign country, shall transact business under the provisions of this article until it has received from the superintendent of insurance a certificate of authority to do business in this state, a duplicate of which shall be filed in his office. The superintendent shall annually issue to such foreign corporation, association or society, renewal certificates of authority to continue its business if it shall have fully complied with the laws of this state, and its annual report is satisfactory to him, which certificate shall be filed in the office of the clerk of the county where its principal office is located within this state, within sixty days after the filing of such annual report, and no such foreign corporation, association or society shall be authorized to continue such business after the expiration of such sixty days, unless such certificate shall have been so received and filed. The superintendent shall refuse a certificate of authority or renewal of the same to any such foreign corporation, association or society, when in his judgment such refusal would best promote the public interest, or when by the laws of the state or territory under which the same is organized a corporation or association, of this state, doing a life insurance business upon the stipulated premium plan, is not permitted to transact such business in such other state or territory. When any state or territory shall impose any obligation upon such corporation or association of this state or their agents transacting business in such other state or territory, the like obligations are hereby imposed upon similar corporations, associations and societies of such other state or territory, and their agents or representatives transacting business in this state, and H Stipulated Premium Life Insurance. § 311 such corporation, association or society of such other state or territory, and their agents and representatives shall pay all licenses, fees or penalties to and make deposits with the superintendent of insurance imposed by the laws of such other state or territory upon any incorporation or association of this state doing business therein; and in case of failure to pay the same, the superintendent shall refuse the certificate of authority herein provided for or cancel such certificate if one shall have been previously issued. No foreign corporation, association or society shall be authorized to transact any business authorized by this article within this state, unless it furnishes evidence satisfactory to the superintendent of insurance that it has a reserve fund equal in amount to that required by this article, and that the same is held for the benefit of policy or certificate holders only and invested as required by the insurance law of this state. Neither shall any foreign corporation, association or society be authorized to do business in this state unless it collects for the benefit of its policyholders a net premium equal at least to that provided for by the terms of this article. (Added by chap. 85 of 1898, § 1.) 8311. Surrender value of lapsed or forfeited policies.-Whenever any policy or certificate of life insurance hereafter issued by any corporation or association doing business under this article, after being in force five full years, shall by its terms lapse or be come forfeited by the non-payment of any premium, or any note given for a premium, or loan made in cash on such policy as secur ity, or of any interest on such note or loan, the reserve on such policy computed according to the American experience table of mortality, with interest at the rate of four and one-half per centum per annum shall on demand made with surrender of the policy within six months after such lapse or forfeiture be taken as a single premium of life insurance at the published rates of the corporation at the time the policy was issued, and shall be applied as shall have been agreed in the application or policy, either to continue the insurance of the policy in force at the full amount so long as such single premium will purchase temporary insurance for that amount at the age of the insured at the time of lapse or forfeiture, or to purchase on the same life at the same age paid up insurance payable at the same time and under the same conditions, except as to payment of premiums, as the original policy. If no such agreement be expressed in the application or policy such single premium may be applied in either of the modes above |