Enrolled Bill Summary

            Senate Bill 1153 amends provisions of the Insurance Code relating to fraternal benefit societies. The act changes and adds provisions about the governing boards. It includes provisions relating to benefits and beneficiaries, qualifications for membership, and insurance certificates. It authorizes societies to establish and operate one or more separate accounts and issue benefit contracts on a variable basis. It adds fraternal and patriotic advantages to the purposes for which societies may be formed and specifies that the purposes may be carried out through subsidiary or affiliated groups.

            The act raises limits for bonds and other financial requirements necessary before societies can begin issuing certificates and paying benefits. The bond is increased from $5,000 to between $300,000 and $1.5 million and the amount required to be credited to the mortuary or disability fund is increased from $2,500 to $150,000.

            The act includes provisions and restrictions relating to liability, indemnification, and insurance for directors, officers, employees, and others associated with the societies and the licensing of agents authorized to solicit or procure insurance contracts for such societies. The act also changes provisions relating to certain interest rates that certificates may be charged and includes provisions relating to nonforfeiture benefits, cash surrender values, certificate loans, and other options.