{"law_id":"766252","section_number":"38.2-4115","catch_line":"Conversion of fraternal benefit society into mutual life insurer","history":"Code 1950, \u00a7\u00a7 38-323 through 38-329, 38.1-632 through 38.1-638; 1952, c. 317, \u00a7\u00a7 38.1-638.53 through 38.1-638.59; 1968, c. 654; 1986, c. 562.","order_by":null,"metadata":false,"court_decisions":{},"official_url":"http:\/\/law.lis.virginia.gov\/vacode\/38.2-4115\/","refers_to":false,"url":"\/38.2-4115\/","token":"38.2\/41\/3\/38.2-4115","structure":{"1":{"id":"939","name":"Governance","identifier":"3","label":"article","url":"\/38.2\/41\/3\/"},"2":{"id":"456","name":"Fraternal Benefit Societies","identifier":"41","label":"chapter","url":"\/38.2\/41\/"},"3":{"id":"7","name":"Insurance","identifier":"38.2","label":"title","url":"\/38.2\/"}},"referred_to_by":[{"id":"790598","section_number":"38.2-4113","catch_line":"Reinsurance","url":"\/38.2-4113\/"}],"edition_id":"11","section_id":"766252","structure_id":"939","full_text":"A Any domestic fraternal benefit society organized or operated under this chapter may, upon a two-thirds vote of its supreme governing body, amend its articles of incorporation and laws if already incorporated, or, if not incorporated, may incorporate, in a manner to transform itself into a mutual life insurer.  It may use the name by which it is already known, or another name, as its supreme governing body shall determine. However, the proposed plan for reorganization or reincorporation shall be submitted to and approved by the Commission.  Upon so doing, and upon procuring from the Commission a license to do the business of insurance in this Commonwealth as a mutual life insurer, it shall incur the obligations and enjoy the benefits of a mutual life insurer as if originally incorporated as a mutual life insurer. Any such corporation under its articles and bylaws as so framed or amended shall be a continuation of the original organization, and the officers of the organization shall serve through their respective terms as provided in the original articles and laws.  However, their successors shall be elected and serve as the laws of this Commonwealth and the articles of incorporation or bylaws of the reorganized company provide. The incorporation, amendment or reincorporation shall not affect existing suits, rights or contracts.  The organization, after reorganization, shall have the power to do business of the same nature done by it before reorganization, as well as the powers conferred in this section and contemplated by its articles of incorporation, in order to protect and perform rights and contracts existing before reorganization, but all new business written shall be as a mutual life insurer.\r\rB All assets, other than general or expense fund assets, belonging to any reorganized insurer, prior to reorganization or arising or accruing from benefit certificates issued prior to the reorganization, shall be used only for the benefit of the holders of the benefit certificates or their beneficiaries.\r\rC If at the time of reorganization, or at any time after reorganization, it appears from the last preceding annual report of any such organization, filed with the Commission, or any investigation made by the Commission, that the present value of the contributions to be received from the holders of the benefit certificates, together with all assets, other than general or expense fund assets, owned by the insurer that have been accumulated from payments made by members holding such certificates, are not equal to the present value of the benefits promised to be paid, including all matured liabilities on any benefit certificates, then the insurer so reorganized shall establish, provide for, and maintain a fund, which with the present value of contributions and assets will equal the present value of the benefits, together with all matured liabilities.  The fund shall be used for the payment of matured liabilities arising on the benefit certificates when other assets applicable thereto are exhausted.  The fund need not be maintained unless required by conditions expressed in this chapter.\r\rD Members in good standing in any society prior to reorganization shall have the right after reorganization to transfer their insurance in the society to the mutual life plan without further medical examination for the same or lesser amount, and at legal reserve or level premium rates. The interest in the assets of the society of any person so transferring, as determined by the board of directors, trustees or corresponding body, shall be transferred to, and be a part of, the assets of the insurer on the legal reserve or level premium plan.\r\rE The insurer so organized, and its officials, shall exercise all the rights and powers and perform all the duties conferred or imposed by law upon organizations writing the kinds of insurance written by the insurer so organized.  The organization and its officials shall exercise all the rights and powers and have full authority to perform all the duties necessary to protect rights and contracts existing prior to reorganization.  The Commission shall exercise the powers and discharge the duties concerning any such insurer so reorganized that are applicable to insurers writing insurance or issuing policies of the same class, organized or operating in this Commonwealth.  The Commission shall issue a certificate of authority to any solvent insurer so reorganized that has fully complied with the laws of this Commonwealth to do such insurance business in this Commonwealth.\r\rF Any fraternal benefit society reorganized to do mutual life insurance business as provided in this chapter shall value its benefit certificates according to the standard of valuation for fraternal benefit societies used in this Commonwealth, and its legal reserve or level premium policies according to the standard of valuation for those policies in this Commonwealth.  The various classes of insurance shall be governed by the law applicable to each class of insurance.\r\rG The expense of operation and maintenance of a reorganized insurer shall be apportioned between those holding benefit certificates issued before the reorganization and those holding policies issued after the reorganization as may be determined by the board of directors, trustees or corresponding body.\r\r","text":{"0":{"id":"2469490","text":"Any domestic fraternal benefit society organized or operated under this chapter may, upon a two-thirds vote of its supreme governing body, amend its articles of incorporation and laws if already incorporated, or, if not incorporated, may incorporate, in a manner to transform itself into a mutual life insurer.  It may use the name by which it is already known, or another name, as its supreme governing body shall determine. However, the proposed plan for reorganization or reincorporation shall be submitted to and approved by the Commission.  Upon so doing, and upon procuring from the Commission a license to do the business of insurance in this Commonwealth as a mutual life insurer, it shall incur the obligations and enjoy the benefits of a mutual life insurer as if originally incorporated as a mutual life insurer. Any such corporation under its articles and bylaws as so framed or amended shall be a continuation of the original organization, and the officers of the organization shall serve through their respective terms as provided in the original articles and laws.  However, their successors shall be elected and serve as the laws of this Commonwealth and the articles of incorporation or bylaws of the reorganized company provide. The incorporation, amendment or reincorporation shall not affect existing suits, rights or contracts.  The organization, after reorganization, shall have the power to do business of the same nature done by it before reorganization, as well as the powers conferred in this section and contemplated by its articles of incorporation, in order to protect and perform rights and contracts existing before reorganization, but all new business written shall be as a mutual life insurer.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1},"1":{"id":"2469491","text":"All assets, other than general or expense fund assets, belonging to any reorganized insurer, prior to reorganization or arising or accruing from benefit certificates issued prior to the reorganization, shall be used only for the benefit of the holders of the benefit certificates or their beneficiaries.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1},"2":{"id":"2469492","text":"If at the time of reorganization, or at any time after reorganization, it appears from the last preceding annual report of any such organization, filed with the Commission, or any investigation made by the Commission, that the present value of the contributions to be received from the holders of the benefit certificates, together with all assets, other than general or expense fund assets, owned by the insurer that have been accumulated from payments made by members holding such certificates, are not equal to the present value of the benefits promised to be paid, including all matured liabilities on any benefit certificates, then the insurer so reorganized shall establish, provide for, and maintain a fund, which with the present value of contributions and assets will equal the present value of the benefits, together with all matured liabilities.  The fund shall be used for the payment of matured liabilities arising on the benefit certificates when other assets applicable thereto are exhausted.  The fund need not be maintained unless required by conditions expressed in this chapter.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1},"3":{"id":"2469493","text":"Members in good standing in any society prior to reorganization shall have the right after reorganization to transfer their insurance in the society to the mutual life plan without further medical examination for the same or lesser amount, and at legal reserve or level premium rates. The interest in the assets of the society of any person so transferring, as determined by the board of directors, trustees or corresponding body, shall be transferred to, and be a part of, the assets of the insurer on the legal reserve or level premium plan.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1},"4":{"id":"2469494","text":"The insurer so organized, and its officials, shall exercise all the rights and powers and perform all the duties conferred or imposed by law upon organizations writing the kinds of insurance written by the insurer so organized.  The organization and its officials shall exercise all the rights and powers and have full authority to perform all the duties necessary to protect rights and contracts existing prior to reorganization.  The Commission shall exercise the powers and discharge the duties concerning any such insurer so reorganized that are applicable to insurers writing insurance or issuing policies of the same class, organized or operating in this Commonwealth.  The Commission shall issue a certificate of authority to any solvent insurer so reorganized that has fully complied with the laws of this Commonwealth to do such insurance business in this Commonwealth.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1},"5":{"id":"2469495","text":"Any fraternal benefit society reorganized to do mutual life insurance business as provided in this chapter shall value its benefit certificates according to the standard of valuation for fraternal benefit societies used in this Commonwealth, and its legal reserve or level premium policies according to the standard of valuation for those policies in this Commonwealth.  The various classes of insurance shall be governed by the law applicable to each class of insurance.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1},"6":{"id":"2469496","text":"The expense of operation and maintenance of a reorganized insurer shall be apportioned between those holding benefit certificates issued before the reorganization and those holding policies issued after the reorganization as may be determined by the board of directors, trustees or corresponding body.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1}},"ancestry":{"1":{"id":"939","name":"Governance","identifier":"3","label":"article","url":"\/38.2\/41\/3\/"},"2":{"id":"456","name":"Fraternal Benefit Societies","identifier":"41","label":"chapter","url":"\/38.2\/41\/"},"3":{"id":"7","name":"Insurance","identifier":"38.2","label":"title","url":"\/38.2\/"}},"structure_contents":{"0":{"id":"777721","structure_id":"939","section_number":"38.2-4109","catch_line":"Organization of domestic society on or after October 1, 1986","url":"\/38.2-4109\/","token":"38.2\/41\/3\/38.2-4109"},"1":{"id":"789641","structure_id":"939","section_number":"38.2-4110","catch_line":"Incorporation of fraternal benefit societies","url":"\/38.2-4110\/","token":"38.2\/41\/3\/38.2-4110"},"2":{"id":"780783","structure_id":"939","section_number":"38.2-4111","catch_line":"Amendments to laws","url":"\/38.2-4111\/","token":"38.2\/41\/3\/38.2-4111"},"3":{"id":"765763","structure_id":"939","section_number":"38.2-4112","catch_line":"Institutions","url":"\/38.2-4112\/","token":"38.2\/41\/3\/38.2-4112"},"4":{"id":"790598","structure_id":"939","section_number":"38.2-4113","catch_line":"Reinsurance","url":"\/38.2-4113\/","token":"38.2\/41\/3\/38.2-4113"},"5":{"id":"770978","structure_id":"939","section_number":"38.2-4114","catch_line":"Consolidations and mergers","url":"\/38.2-4114\/","token":"38.2\/41\/3\/38.2-4114"},"6":{"id":"766252","structure_id":"939","section_number":"38.2-4115","catch_line":"Conversion of fraternal benefit society into mutual life insurer","url":"\/38.2-4115\/","token":"38.2\/41\/3\/38.2-4115"}},"previous_section":{"id":"770978","structure_id":"939","section_number":"38.2-4114","catch_line":"Consolidations and mergers","url":"\/38.2-4114\/","token":"38.2\/41\/3\/38.2-4114"},"references":false,"formats":{"txt":"\/38.2-4115.txt","json":"\/38.2-4115.json","xml":"\/38.2-4115.xml"},"dublin_core":{"Title":"Conversion of fraternal benefit society into mutual life insurer","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4115","Relation":"Code of Virginia"},"plain_text":"                                 CODE OF VIRGINIA\n\nCONVERSION OF FRATERNAL BENEFIT SOCIETY INTO MUTUAL LIFE INSURER (\u00a7 38.2-4115)\n\nA. Any domestic fraternal benefit society organized or operated under this\nchapter may, upon a two-thirds vote of its supreme governing body, amend its\narticles of incorporation and laws if already incorporated, or, if not\nincorporated, may incorporate, in a manner to transform itself into a mutual\nlife insurer.  It may use the name by which it is already known, or another\nname, as its supreme governing body shall determine. However, the proposed plan\nfor reorganization or reincorporation shall be submitted to and approved by the\nCommission.  Upon so doing, and upon procuring from the Commission a license to\ndo the business of insurance in this Commonwealth as a mutual life insurer, it\nshall incur the obligations and enjoy the benefits of a mutual life insurer as\nif originally incorporated as a mutual life insurer. Any such corporation under\nits articles and bylaws as so framed or amended shall be a continuation of the\noriginal organization, and the officers of the organization shall serve through\ntheir respective terms as provided in the original articles and laws.  However,\ntheir successors shall be elected and serve as the laws of this Commonwealth and\nthe articles of incorporation or bylaws of the reorganized company provide. The\nincorporation, amendment or reincorporation shall not affect existing suits,\nrights or contracts.  The organization, after reorganization, shall have the\npower to do business of the same nature done by it before reorganization, as\nwell as the powers conferred in this section and contemplated by its articles of\nincorporation, in order to protect and perform rights and contracts existing\nbefore reorganization, but all new business written shall be as a mutual life\ninsurer.\n\nB. All assets, other than general or expense fund assets, belonging to any\nreorganized insurer, prior to reorganization or arising or accruing from benefit\ncertificates issued prior to the reorganization, shall be used only for the\nbenefit of the holders of the benefit certificates or their beneficiaries.\n\nC. If at the time of reorganization, or at any time after reorganization, it\nappears from the last preceding annual report of any such organization, filed\nwith the Commission, or any investigation made by the Commission, that the\npresent value of the contributions to be received from the holders of the\nbenefit certificates, together with all assets, other than general or expense\nfund assets, owned by the insurer that have been accumulated from payments made\nby members holding such certificates, are not equal to the present value of the\nbenefits promised to be paid, including all matured liabilities on any benefit\ncertificates, then the insurer so reorganized shall establish, provide for, and\nmaintain a fund, which with the present value of contributions and assets will\nequal the present value of the benefits, together with all matured liabilities. \nThe fund shall be used for the payment of matured liabilities arising on the\nbenefit certificates when other assets applicable thereto are exhausted.  The\nfund need not be maintained unless required by conditions expressed in this\nchapter.\n\nD. Members in good standing in any society prior to reorganization shall have\nthe right after reorganization to transfer their insurance in the society to the\nmutual life plan without further medical examination for the same or lesser\namount, and at legal reserve or level premium rates. The interest in the assets\nof the society of any person so transferring, as determined by the board of\ndirectors, trustees or corresponding body, shall be transferred to, and be a\npart of, the assets of the insurer on the legal reserve or level premium plan.\n\nE. The insurer so organized, and its officials, shall exercise all the rights\nand powers and perform all the duties conferred or imposed by law upon\norganizations writing the kinds of insurance written by the insurer so\norganized.  The organization and its officials shall exercise all the rights and\npowers and have full authority to perform all the duties necessary to protect\nrights and contracts existing prior to reorganization.  The Commission shall\nexercise the powers and discharge the duties concerning any such insurer so\nreorganized that are applicable to insurers writing insurance or issuing\npolicies of the same class, organized or operating in this Commonwealth.  The\nCommission shall issue a certificate of authority to any solvent insurer so\nreorganized that has fully complied with the laws of this Commonwealth to do\nsuch insurance business in this Commonwealth.\n\nF. Any fraternal benefit society reorganized to do mutual life insurance\nbusiness as provided in this chapter shall value its benefit certificates\naccording to the standard of valuation for fraternal benefit societies used in\nthis Commonwealth, and its legal reserve or level premium policies according to\nthe standard of valuation for those policies in this Commonwealth.  The various\nclasses of insurance shall be governed by the law applicable to each class of\ninsurance.\n\nG. The expense of operation and maintenance of a reorganized insurer shall be\napportioned between those holding benefit certificates issued before the\nreorganization and those holding policies issued after the reorganization as may\nbe determined by the board of directors, trustees or corresponding body.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-323 through 38-329, 38.1-632 through 38.1-638; 1952,\nc. 317, \u00a7\u00a7 38.1-638.53 through 38.1-638.59; 1968, c. 654; 1986, c. 562."}