ORS 748.211
Benefit contract

  • certificate

(1)

Every society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided. The certificate, together with any riders or indorsements attached to it, the laws of the society, the application for membership, the application for insurance and declaration of insurability, if any, signed by the applicant, and all amendments to each, shall constitute the benefit contract, as of the date of issuance, between the society and the owner, and the certificate shall so state. The laws of the society need not be stated in full in the certificate, except as provided in this section. A copy of the application for insurance and declaration of insurability, if any, shall be indorsed upon or attached to the certificate. All statements on the application shall be representations and not warranties. Any waiver of this provision shall be void.

(2)

Any changes, additions or amendments to the laws of the society duly made or enacted subsequent to the issuance of the certificate, shall bind the owner and the beneficiaries, and shall govern and control the benefit contract in all respects the same as though the changes, additions or amendments had been made prior to and were in force at the time of the application for insurance, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the owner as of the date of issuance.

(3)

Any person upon whose life a benefit contract is issued prior to attaining the age of majority shall be bound by the terms of the application and certificate and by all the laws and rules of the society to the same extent as though the age of majority had been attained at the time of application.

(4)

A society shall provide in its laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that there be paid by the owner to the society the amount of the owner’s equitable proportion of the deficiency as ascertained by its board, and that if the payment is not made:

(a)

It shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or

(b)

In lieu of or in combination with paragraph (a) of this subsection, the owner may accept a proportionate reduction in benefits under the certificate.

(5)

The society may specify the manner of the election of the alternatives specified in subsection (4) of this section and which alternative is to be presumed if no election is made.

(6)

Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received in evidence of the terms and conditions of the documents.

(7)

No certificate shall be delivered or issued for delivery in this state unless a copy of the form has been filed with and approved by the Director of the Department of Consumer and Business Services, and is subject to withdrawal of approval, in the manner provided for like policies issued by life and health insurers in this state. Every life, accident, health or disability insurance certificate and every annuity certificate issued on or after one year from January 1, 1988, shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life and health insurers in this state, except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The certificates shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society’s laws or rules in force at the time of issuance of the certificate which, if violated, shall result in the termination or reduction of benefits payable under the certificate. In addition, except for contracts issued on a variable basis as authorized by ORS 748.409 (Assets of society), the certificate shall contain a provision stating the substance of the society’s laws required under subsections (4) and (5) of this section. If the laws of the society provide for expulsion or suspension of a member, the certificate shall also contain a provision that any member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material misrepresentation in the application for membership or insurance, shall have the privilege of maintaining the certificate in force by continuing payment of the required premium.

(8)

Benefit contracts issued on the lives of persons below the society’s minimum age for adult membership may provide for transfer of control or ownership to the insured at an age specified in the certificate. A society may require approval of an application for membership in order to effect this transfer, and may provide in all other respects for the regulation, government and control of the certificates and all rights, obligations and liabilities incident thereto and connected therewith. Ownership rights prior to the transfer shall be specified in the certificate.

(9)

A society may specify the terms and conditions on which benefit contracts may be assigned. [1987 c.490 §20; 1991 c.182 §13]

Source: Section 748.211 — Benefit contract; certificate, https://www.­oregonlegislature.­gov/bills_laws/ors/ors748.­html.

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
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