ORS 748.133
Formation


A domestic society organized on or after January 1, 1988, shall be formed as follows:

(1)

Seven or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make and sign articles of incorporation. The articles shall be acknowledged before some officer competent to take acknowledgment of deeds and shall state:

(a)

The proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company as to be misleading or confusing;

(b)

The purposes for which it is being formed and the mode in which its corporate powers are to be exercised. The purposes shall not include more liberal powers than are granted by this chapter;

(c)

The names and residences of the incorporators and the names, residences and official titles of all the officers, trustees, directors or other persons who are to have and exercise the general control of the management of the affairs and funds of the society until their successors are elected by the supreme governing body; and

(d)

A plan for the election of officers, trustees and directors by the supreme governing body. The election shall be held not later than one year from the date of issuance of the permanent certificate of authority.

(2)

The articles of incorporation, duly certified copies of the society’s bylaws and rules, copies of all proposed forms of certificates, applications therefor and circulars to be issued by the society and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within one year shall be filed with the Director of the Department of Consumer and Business Services, who may require such further information as the director deems necessary. The bond with sureties approved by the director shall be in an amount, not less than $300,000 nor more than $1,500,000 as required by the director. All documents filed are to be in English. If the purposes of the society conform to the requirements of this chapter and all provisions of the law have been complied with, the director shall so certify, retain and file the articles of incorporation and furnish the incorporators a preliminary certificate of authority authorizing the society to solicit members as provided in this chapter.

(3)

No preliminary certificate of authority granted under the provisions of this section shall be valid after one year from its date or after any further period, not exceeding one year, as may be authorized by the director upon cause shown, unless the 500 applicants required have been secured and the organization has been completed as provided in this chapter. The articles of incorporation and all other proceedings thereunder shall become null and void in one year from the date of the preliminary certificate of authority, or at the expiration of the extended period, unless the society has completed its organization and received a certificate of authority to do business as provided in this chapter.

(4)

Upon receipt of a preliminary certificate of authority from the director, 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 tables of rates and shall issue to each applicant a receipt for the amount collected. No society shall incur any liability other than for the return of the advance premium, nor issue any certificate, nor pay, allow or offer or promise to pay or allow, any benefit to any person until:

(a)

Actual bona fide applications for benefits have been secured on not less than 500 applicants, and any necessary evidence of insurability has been furnished to and approved by the society;

(b)

At least 10 lodges have been established into which the 500 applicants have been admitted;

(c)

There has been submitted to the director, 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 lodge of which each applicant is a member, amount of benefits to be granted and premiums therefor; and

(d)

It has been shown to the director, 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 herein provided, which premiums in the aggregate amount to at least $150,000. The 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.

(5)

The director may make any examination and require any further information that the director deems advisable. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, the director shall issue to the society a certificate of authority to that effect and that the society is authorized to transact business pursuant to the provisions of this chapter. The certificate of authority shall be prima facie evidence of the existence of the society at the date of the certificate. The director shall cause a record of the certificate of authority to be made. A certified copy of the record may be given in evidence with like effect as the original certificate of authority.

(6)

An incorporated society authorized to transact business in this state at the time this chapter becomes effective shall not be required to reincorporate. [1987 c.490 §9]
748.103
Definitions
748.106
Description of fraternal benefit society
748.109
Conditions constituting “operating on a lodge system.”
748.112
Conditions constituting “representative form of government.”
748.121
Purposes, operation and powers
748.123
Membership
748.130
Principal office
748.133
Formation
748.136
Officers, governors, directors
748.139
Waiver of provisions by subordinate body
748.142
Amendment of society laws
748.144
Creation and operation of other organizations and entities
748.148
Consolidation and merger
748.171
Certificate of authority
748.174
Certificate of authority for foreign or alien society
748.177
Authorization as mutual life insurance company
748.181
Insurance producers
748.184
Reinsurance
748.201
Benefits
748.204
Beneficiaries
748.207
Benefits exempt from execution
748.211
Benefit contract
748.306
Authority for group benefit certificates
748.309
Group membership
748.312
Membership in lodges organized under ORS 748.309
748.316
Payments for group benefits
748.319
Group certificates issued by foreign or alien society or by domestic society in foreign or alien jurisdiction
748.322
Continuation of membership in society after cancellation, discontinuance or nonrenewal of group certificate
748.401
Value of benefit and amount of options
748.403
Standards of valuation for certificates
748.406
Financial statement
748.409
Assets of society
748.412
Investment of funds
748.414
Funds exempt from certain taxes
748.501
Examination
748.503
Investigation of society
748.506
Investigation of foreign or alien society
748.509
Validity of petition for injunction
748.601
Exemptions from chapter
748.603
Relationship to other insurance laws
748.605
Insurance against risk of loss under less than fully insured employee health benefit plan
748.990
Penalties
Green check means up to date. Up to date