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 LAW LIBRARY 
 
 OF 
 LOS ANGELES COUNTY 
 
 l_ A. CO. «-■ ••
 
 FRATEKNAL SOCIETY 
 
 LAW 
 
 EMBRACING THE -_t,.,, 
 
 STATU T.E L A W ■ " fv^- - 
 
 And a 
 
 DIGEST OF THE DECISIONS OF THE COURT OF LAST RESORT OF 
 
 THE SEVERAL STATES CONCERNING FRATERNAL 
 
 BENEFICIARY SOCIETIES 
 
 CARLOS S. TIARDY, D. C. L. 
 
 Member or the Chicago Bar ; Lecturer on Law of Insurance, Illinois College 
 
 OF Law : Member Board of Editors, International Encyclop.-edia of Insurance, 
 
 Sihce 1901 ; Secretary-Treasurer, Law Section. National Fraternal 
 
 Congress; andSince 1900General Counsel of The Supreme Lodge 
 
 Knights of Pythias (Insurance Department). 
 
 EDITION FOR 1907.
 
 COPYRIGHT, 1908, 
 
 BY 
 
 CARLOS S. HARDY 
 
 T 
 
 i9on
 
 t 
 
 ?1 ■ . 
 
 INTRODUCTION. 
 
 It has been well said that the busy lawyer has no business attempt- 
 ing to write a law book. Nevertheless it is only the busy lawyer 
 who fully realizes the value of a book that contains the statement 
 of the law of his ease. 
 
 With an extensive Fraternal Society practice for several years 
 and covering all the States of the American union, I have experi- 
 enced the full need of a compilation of the statute law of the 
 several states in so far as it affects Fraternal Societies. The stat- 
 ute law alone is embraced in more than one hundred volumes. 
 To search these hundred and odd volumes in order to know the 
 statute law is a herculean task and one that but few lawyers ever 
 have the time for and certainly no Fraternal Society manager would 
 ever attempt the task. I have brought into this one volume this 
 statute law of the country affecting Fraternal Societies, and whether 
 my labor in accomplishing this, is appreciated or not, I have the satis- 
 faction of knowing that I have thereby lessened the labors of all who 
 would have had to search the many volumes of the statutes for the 
 law upon the sub.jects herein treated of. Some half dozen years ago 
 I began collecting decisions of courts of last resort upon Fraternal 
 Society questions and briefly digesting them on a card sj'stem. 
 This system of cases on cards has grown to such proportions that 
 I have come to rely on it as an index to the case law of the country, 
 more than on any of the general digests. My first idea was to pub- 
 lish these card digests, but I found after further consideration, that 
 it would be best to redigest the cases collected, and so, I have em- 
 braced in this volume a digest of all the leading cases of the courts 
 of last resort of the several States that have been handed down 
 during the period, December, 1897, to December, 1907, affecting 
 Fraternal BeneficiarA' Societies. I have grouped these cases by 
 states rather than by subject matter and they follow the statute 
 law in the chapters devoted to the respective states. There are 
 
 729S71
 
 6 INTRODUCTIOX 
 
 but tew cases back oi December. 1897, not herein digested, which 
 are of value to-day. The present hiw of Fraternal Societies has been 
 made almost wholly during the last ten years. The present day 
 Fraternal Society is a far different institution from that of fifteen 
 or twenty years ago. As they have evolved, so has the law respect- 
 ing them. Quite a few cases, where the parties were not Fraternal, 
 are digested because of the principles announced, which are deemed 
 applicable to Fraternal Societies. 
 
 It is not claimed that my effort has resulted in the making of a 
 perfect book. But it is claimed that there is no single volume con- 
 taining the Fraternal Society law embraced herein, nor indeed has 
 the attempt before been made to publish such a book. Future issues 
 which are expected to be annual, in order to keep abreast with the 
 legislatures and the courts, will, it is to be expected, be great im- 
 provements over this effort. The start has been made. The volume 
 is intended for the use of the Fraternal Society manager and the 
 lawyer interested in Fraternal litigation, which is now of great con- 
 sequence, and it is my wish that to them it will prove helpful and 
 generally satisfactory. 
 
 CARLOS S. HARDY. 
 
 Chicago, January 23, 1908.
 
 FRATERNAL SOCIETY LAW. 
 
 THE 
 
 STATE OF ALABAMA. 
 
 CHAPTER 1. 
 
 There is no statute law in Alabama relating to Fraternal Benefit 
 Societies, as such. 
 
 Mutuality — Ultra Vires Contracts. 
 
 A mutual benefit association, organized under the Alabama code, 
 and authorized by its charter to pay sick and death benefits to its 
 members out of funds accumulated from assessments on them, is 
 without authority to contract for the repayment of the amount paid 
 in, less benefits paid, said amount to be payable at the end of ten 
 years from the date of contracts. Such contracts are ultra vires, 
 as being destructive of the principle of mutuality upon which the 
 association is founded. Citing with approval, Kennan vs. Rundle, 
 81 Wis. 21-1; 51 N. W. 426. 
 
 Southern Mut. Aid Ass'n et al. vs. Boyd et al., May 9th, 1906, 145 
 Ala. 167; 41 So. 164. 
 
 After Enacted Laws — Suicide. 
 
 Where a benefit certificate provided that the member shall be 
 bound by the laws of the society then in existence, and by those 
 that may thereafter be adopted, the members are bound by all sub- 
 
 (7)
 
 g FRATERNAL SOCIETY LAW 
 
 sequently enacted laws, provided that such laws are within the 
 charter powers of the association, and do not violate the laws of 
 the state, nor impair the obligation of the member's contract. Such 
 subsequent by-laws, which provide that in case of death by suicide, 
 that the society shall pay only one-third of the amount of the cer- 
 tificate, is held to be reasonable and valid. 
 
 Fraternal Union of America vs. Ziegler, Dec. 21st, 1905, 145 Ala. 287; 
 39 So. 751. 
 
 Members Bound By After-Enacted Laws — Suicide — Incontestability. 
 
 "Where a benefit certificate provided that it shoidd be incontesta- 
 ble after two years, and also contained the provision that the 
 member accepting it should be subject not only to existing laws, but 
 to all by-laws subsequently adopted, and at the time of the issuance 
 of the certificate the by-laws provided that, in case of suicide the 
 member forfeited all claims to, or benefits under the certificate, but 
 more than two years thereafter, the society adopted another by-law 
 providing, that in ease of suicide, the society should pay one-third 
 of members certificates, it was held that the subsequently enacted 
 by-law applied to the certificate, and was not objectionable as im- 
 pairing the obligation of the members contracts. 
 
 Fraternal Union of America vs. Ziegler, Dec. 21st, 1905, 145 Ala. 287; 
 39 So. 751. 
 
 Dependents — Who Are. 
 
 A grown married man, earning a good salary, and saving money, 
 is not a dependent within the terms of the by-laws of a benefit 
 society permitting dependents to become beneficiaries of such society. 
 
 Morey et al. vs. Monk, Feb. 6. 1906. 145 Ala. 301; 40 So. 411. 
 
 Beneficiary — Stepson. 
 
 A member's wife was named as beneficiary, but she, deceased, 
 leaving a son bj' a former husband; the member having no children 
 by this wife ; and subsequently the stepson claimed to be entitled to
 
 THE STATE OF ALABAMA 9 
 
 take the benefit under the American Legion of Honor by-law, pro- 
 viding for dependents and relatives of members to be named as 
 beneficiaries, bnt the court held that the affinity existing between 
 the stepson and the stepfather was dissolved by the death of the 
 mother and wife, and that said stepson was not entitled to take 
 the benefit. 
 
 Morey et al. vs. Monk, Feb. 6th, 1906, 145 Ala. 301; 40 So. 411. 
 
 State Statute Enlarges Class of Beneficiaries. 
 
 Under the Massachusetts Acts of December 31st, 1901, which 
 authorized the substitution of persons as beneficiaries, who were 
 not eligible on the death of the named beneficiary "with the con- 
 sent of the officers and under the rules as they may prescribe," one 
 not previously eligible as beneficiary, but who has been substituted 
 on tlie death of the beneficiary named in the certificate, is entitled 
 to the benefits, although it does not appear that the society has, 
 adopted rules extending the class of beneficiaries. 
 
 Morey et al. vs. Monk, Feb. 6th, 1906, 145 Ala. 301; 40 So. 411. 
 
 Courts Not Bound by Society's Construction of Laws. 
 
 The construction given to a contract in a fraternal beneficiary 
 society by the officers of the society, is not binding upon the courts, 
 and the members are not necessarily bound by any acts which may 
 have been done under such construction. 
 
 Morey vs. Monk, Nov. 19, 1904, 145 Ala. 301; 40 So. 411. 
 Trustees — Surviving Children. 
 
 Where in a life insurance contract, insurance is made payable 
 to certain trustees, named, for such of the insured's children as 
 may survive him, it is held that the beneficiaries named in the eon- 
 tract are the children of this insured as a class, which includes those 
 children born after the making of the contract, and without any 
 distinction between such after-born children and those born pre-
 
 10 FRATERNAL SOCIETY LAW 
 
 vionsly, and without distinction between children of one wife and 
 children of another wife. 
 
 Morey et al. vs. Monk, Feb. 6, 1906, 145 Ala. 301; 40 So. 411. 
 
 Death by Members Own Hand — Suicide. 
 
 A benefit certificate which provides against death by the mem- 
 ber's own hands, is to be interpreted as meaning death by suicide. 
 
 Fraternal Union of America vs. Ziegler, Dec. 21st, 1905, 145 Ala. 287; 
 39 So. 751. 
 
 After Enacted Laws — Suicide. 
 
 One of the best considered ewses on the validity and binding qual- 
 ities of after-enacted by-laws, is that of The Supreme Commandery 
 of the Knights of the Golden Rule vs. Ainsworth, and this case has 
 been the very foundation stone upon which most of the decisions 
 of the courts of last resort in this country, upholding after-enacted 
 by-laws, has been founded. 
 
 The Ainsworth ease discusses a number of questions of fraternal 
 beneficiary law. such as whether the society itself, under the facts 
 proven, is a fraternal beneficiary society, the meaning of a provision 
 in a contract against a member taking his own life, etc. 
 
 On the question of the validity and binding effect of after-enacted 
 by-laws of fraternal beneficiary societies, it is said by the court : 
 
 "It is not claimed that there is an inherent power in the asso- 
 ciation, by the adoption of a by-law, to work such radical changes 
 in its existing contracts. The power is derived from, and depends 
 upon the stipulations of the contract at the time it was made. The 
 stipulations are expressed in varying terms, and several of them 
 import no more than would be implied — the observance by the as- 
 sured of the requirements of the association, such requirements as 
 were reasonable, and intended to promote the harmony of the asso- 
 ciation, and the purposes and objects for which it was formed. They 
 import also obedience to the by-laws, so far as reasonable, consistent 
 with the charter and law of the land. We do not construe them as 
 reserving, or as intended to reserve to the association the power
 
 THE STATU OF ALABAMA 11 
 
 to change or avoid its contracts, to lessen its responsibilities, or to 
 divest its members of rights. This is not the proper office of a 
 by-law; and from the general expressions to which we are referring, 
 it cannot be fairly presumed or intended that it was contemplated 
 to effect the members by other than such by-laws, as it was within 
 the competency of the association to enact. But in addition 
 to these, the averment of the plea is, that the certificate was accepted 
 by the assured, 'subject to the laws of the order now in force, or 
 which may be hereafter enacted by the Supreme Commandery.' 
 These are words of large signification, and clearly express that the 
 assured consented that the contract should be subject to future, as 
 well as to existing b}--laws. Pai-ties may contract with reference 
 to laws of future enactment — may agree to be bound and effected 
 by them, as they would be bound and effected if such laws wei-e ex- 
 isting. They may consent that such laws may enter into and form 
 parts of their contracts, modifying or varying them. It is their 
 voluntary agreement which relieves the application of such laws 
 to their contracts and transactions from all imputation of injus- 
 tice." 
 
 Supreme Commandery Knights of the Golden Rule vs. Ainsworth, 
 December Term, 18S2, 71 Ala. 436. 
 
 "Void" and "Voidable" Terms. 
 
 Although a policy of insurance stipulates that a breach of its con- 
 ditions by the insured shall render it void, this word "void" is 
 to be considered used in the sense of voidable, as any conditions 
 inserted in a policy which are for the benefit of the insurer maj'^ be 
 waived by it. 
 
 Georgia Home Insurance Co. vs. Allen (1898), 119 Ala. 436. 
 
 Waivers of Statutes of Limitation Void. 
 
 Section 2802 Code of 1896, provides that any agreement or stipu- 
 lation whereby the time of bringing of any action is limited to a 
 time less than that prescribed by law for the bringing thereof, is 
 void, and it was held that though an insurance ])olicy contained a
 
 12 FRATERNAL SOCIETY LAW 
 
 clause prohibited by this ISectiou wliich was valid iu the State 
 where the contract was made, nevertheless it was unenforeible under 
 the laws of Alabama. 
 
 Galliher vs. State Mut. Life Ins. Co., Supreme Court ot Alabama, 
 April, 1907. 43 So. 833. 
 
 Prohibited Occupations — Saloonkeepers — Who are? 
 
 A certificate issued to a member of the American Guild in the 
 amount of $5,000 provided therein that if the member at the time 
 of his death should be a saloonkeeper or bartender that only one- 
 half of the amount of the certificate should be paid. The evidence 
 showed without conflict that at the time of the death of the member, 
 he was the manager of a saloon iu which intoxicants were sold, that 
 his wife was the owTier of the saloon but that she took no part in 
 the management thereof, which was managed for her by her hus- 
 band, the member; that the member never served or mixed any 
 drinks at the bar but that he employed the help, purchased the 
 stock, deposited the receipts and generally managed the business. 
 The sole question to be determined by the court was whether or not 
 the member, under the facts, was a saloonkeeper in contemplation 
 of the provision iu the contract. The court said, citing Webster as 
 authority that a saloon is "popularly a piiblic room for specific 
 usage. especi.ill> l).ii- rroin or grog-shop, as a drinking saloon." etc. 
 
 "It is difficult to see why Mr. Solomon was not the keeper of this 
 saloon. If he was not, no one was. He performed all the duties of 
 a saloonkeeper. If he had been called the governor or superintend- 
 ent of the saloon, it would not have altered his relation to it. He 
 would have been its keeper, as much so as if he had been called 
 a saloon keeper. It would have been the same thing by another 
 nanu\ Such a keeper does not necessarily mix and serve drinks 
 over the counter, but may and well might attend to more improtant 
 matters connected with the keeping of the establishment. Saloon- 
 keepers and bartenders where intoxicants are sold, and hotel keep- 
 ers who attend their own bars, were among those excepted from 
 the full benefit of policies in the Guild. The reason for such excep-
 
 THE STATE OF ALABAMA 13 
 
 tion was such risks were more hazcnrdoiis than of those not similarly 
 employed. ' ' 
 
 Solomon vs. American Guild, Supreme Court of Alabama. June, 1907, 
 44 So. 387.
 
 14 FRATERNAL SOCIETY LAW 
 
 THE 
 
 DISTRICT OF ALASKA. 
 
 CHAPTER 2. 
 
 Fraternal societies are by law exempt from the operation of the in- 
 surance laws of the District of Alaska, such exemption being pro- 
 vided for in the Civil Code approved June 6, 1900. Chapter 36 of 
 said Code deals with insurance and is here reproduced. 
 
 Section 360. No company, corporation, or association, or firm, 
 or individual shall be permitted to transact a life, fire, or marine 
 insurance business in the District until he or it has filed in the 
 Office of the Secretary of the District a certificate by the Secretary 
 of State or other proper officer of some State of the United States, 
 setting- forth that the said company, corporation, association, firm. 
 or individual has been qualified to carry on the business of insur- 
 ance in such State in accordance with the laws thereof. 
 
 Section 361. No insurance company, corporation, association, firm 
 or individual shall be permitted to transact a life, fire, or marine 
 insurance business in the District until it shall have filed with the 
 Clerk of each Division of the District Court a power of attorney 
 which shall set forth that such company is a corjwration or duly 
 organized insurer (naming the principal \)\;\co of business of the 
 company and principal place of business for the Pacific coast), 
 which power of attorney shall authorize a citizen and resident of 
 the District to receive and accept service in any proceeding in a 
 court of .iustice of the District. If any attorney of any insurance 
 company appointed under the provisions of this section shall re- 
 move from the district or become disqualified in any manner from 
 accepting service, and if any citizen or resident of the District
 
 THE DISTRICT OF ALASKA 15 
 
 shall have any claim by virtue of auy iusurance policy issued by 
 any such company not represented by attorney in the district, valid 
 service may be made on such company by service on the Clerk of 
 the District Court or any division thereof: Provided, In such case 
 the Clerk of the District Court shall immediately notify such com- 
 pany and the principal agent for the Pacific Coast, inclosing a copy 
 of the service by mail, postpaid : And provided further, In such case 
 no jiroceedings shall be had within sixty days after such service 
 on the clerk. 
 
 Section 362. All orders or secret societies, such as Masons. Odd 
 Fellows, Druids, Knights of Pythias, Ancient Order of United Work- 
 men, Modern Woodmen of America and other benevolent, fraternal, 
 or cooperative societies associated or incorporated for the sole pur- 
 pose of mutual protection and relief of its members only, and for 
 the ])ayment of stipulated sums of money to the families of deceased 
 members, or for pro|)erty of its members only destroyed by fire, are 
 hereby declared not to be fire or insurance companies in the sense 
 and meaning of this chapter, and they are exempt from the provis- 
 ions hereof. 
 
 Section 363. The provisions of this chapter, under either term or 
 designation of company, corporation, association, firm, or individual 
 in either case, where either term or designation is used, shall apply 
 to any insurer, company or corporation, association, firm, or indi- 
 vidual, engaged as an insurer or who may hereafter engage as in- 
 surers in the District, or who may engage in offering or affording 
 indemnity against the casualties of fire or life. 
 
 Section 364. Any officer, agent, or emplo,yee of anj^ insurance 
 company or other person violating any of the provisions of this 
 chapter shall be fined not less than one hundred nor more than five 
 hundred dollars, and in default of payment of such fine shall be 
 imprisoned not less than ten days nor more than six months. 
 
 Section 365. The Secretary of the District shall collect from each 
 company or person for the service provided in this chapter the 
 following fees: For filing certificate of qualification, five dollars; for 
 filing power of attorney, five dollars. * » # # 
 
 No cases are contained in the Alaska Reports which concern 
 fraternal societies.
 
 16 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF ARKANSAS. 
 
 CHAPTER 3. 
 
 [The Section numbers correspond to those in Kirby's (1904) Digest 
 of the Statutes of Arkansas.] 
 
 Section 4326. There is established a bureau in the office of the 
 Auditor of State, to be known as "The Insurance Bureau," which 
 shall be charged with the execution of the laws of the State in rela- 
 tion to insurance. 
 
 Section 4327. The Auditor of State is empowered to appoint and 
 commission actuaries and examiners to issue, and, upon cause shown, 
 to revoke, licenses or permits to transact business of insurance ; and, 
 when legal cause exists, to suspend the business of any company of 
 this State or any company of another State doing business in this 
 State; to require free access to books and papers belonging to any 
 such company or companies; to summon and examine persons 
 relative thereto, and generally to do any and all things which the 
 Insurance Commissioner was by laAv heretofore empowered and re- 
 quired to do. 
 
 Section 4329. The seal of the Auditor's office shall be the seal of 
 the Insurance Department. 
 
 Section 4351. Every incorporated association, order or society, 
 doing business in this State on the lodge system, with ritualistic 
 form of work and representative form of government, for the pur- 
 pose of making provision for the payment of benefits in ease of death, 
 sickness, temporary or permanent physical disability, either as 
 the result of disease, accident or old age, formed and organized 
 for the benefit of its members and their beneficiaries be, and the 
 same is hereby, declared to be a "fraternal beneficiary order, society
 
 THE STATE OF ARKANSAS ■ 17 
 
 or association," ;uid such order, socit't\' or iissociutioii payiiii: death 
 benefits may also create, maintain, a])i)ly or disburse among its 
 . membershi]) a reserve or emeri^enev fund as may be jjrovided in 
 its constitution or ])y-la\vs: provided, however, that no profit or 
 gain shall Ite added to tlie payments made by a member. 
 
 Section 4352. The funds from which the payment of benefits, as 
 provided for in section 4351, shall be made and the fund from 
 vphich the expenses of said association shall be defrayed, shall 
 be derived from assessments, dues or other payments collected 
 from its members. Snch orders, societies or associations shall be 
 governed by this Act, and shall be exempt from the provisions 
 of all insurance laws of this State, and no law hereafter passed 
 shall apply to said societies, orders or associations, unless it be 
 expressh' designated therein. 
 
 Section 4353. Such society, order or association doiu^' busines.^ 
 in this State, shall, on or before the first day of March of each 
 year, make and file with the Auditor of this State, a report of its 
 affairs and operations during the year ending on the thirty-first of 
 December immediately preceding, together with a copy of its con- 
 stitution and laws then in force, which annual report shall be 
 in lieu of all other reports required by any other law ; such reports 
 shall be on blanks provided by the Auditor, and shall be verified 
 under oath by the duly authorized officer or officers of such society, 
 order or association, and shall contain such information as the Audi- 
 tor, in his .judgment, may deem necessary for the welfare of the 
 people of the State, and shall be published, or the substance thereof, 
 in the annual report of the Auditor under a separate head, entitled 
 "Fraternal Beneficiary Societies," and for the filing of said report 
 said society, order or association, shall pay a fee of ten dollars and 
 cost of pu])licatiou. 
 
 Section 4354. Every fraternal order doing business in this State, 
 which insures the lives of its members against accident, or sick 
 benefit, or in any other way, shall, in addition to filing their annual 
 statement of financial condition, give to the State of Arkansas 
 a bond in the sum of ten thousand dollars, the said bond to be 
 filed with and approved by the Auditor of State, and conditioned 
 for the prompt payment of all moneys coming into the hands of 
 2
 
 Ig FRATERNAL SOCIETY LAW 
 
 its officers to which beneficiaries are eDtitled. Said bond shall be 
 signed by at least three citizens of this State, when made by indi- 
 viduals, who shall state under oath that they are possessed of prop- 
 erty, situated in this State, over and above all lawful exemptions, 
 which, taken together, will be equal to the sum of the bond; or 
 said bond may be made by any surety company authorized to do 
 business in this State, and such bond shall be filed annually. 
 
 Section 4355, Every person acting as agent or solicitor for 
 any fraternal order, or be engaged in issuing any certificate or pol- 
 icy upon which dues, assessments or premiums are charged or col- 
 lected, which said order has not first complied with the require- 
 ments of this Act in relation thereto, shall be deemed guilty of 
 a misdemeanor, and. upon conviction, shall be fined fifty dollars for 
 each offense. 
 
 Section 4356. Any such orders or societies incorporated and or- 
 ganized under the laws of this State, may provide for the meeting 
 of its supreme legislative or governing body in any other State, 
 Province or Territory, wherein said society shall have subordinate 
 lodges, and all business that has been heretofore or may hereafter 
 be transacted at such meetings, shall be as valid in all respects as 
 if such meetings were held within this State; provided, however, 
 that the principal business office of such order, society or asso- 
 ciation shall always be kept within this State, and never removed 
 therefrom. 
 
 Section 4357, Any such fraternal beneficiary order, society or 
 association as is defined by this Act, organized and doing business 
 under the laws of another State, District, Province or Territory, 
 shall be admitted to transact business in this State upon the same 
 conditions as are prescribed by the laws of such State, for the 
 admission of like orders, societies or associations organized under 
 the laws of this State to do business in such State, District, Prov- 
 ince or Territory. That all laws or parts of laws in conflict with 
 this Act are hereby repealed, and this Act to be in force and effect 
 from and after its passage. 
 
 Section 4378. "Whenever any action, cither at law or in equity, 
 is instituted on a policy or certificate of insurance on the life of a 
 person aszaiiist any fraternal society, such as the Knights of Honor,
 
 THE STATE OF ARKANSAS 19 
 
 Knights of Pythias, or like societies, in the courts of this State, 
 service of process on the chief officer, or in case of his absence, 
 the secretary of the subordinate lodge or society through which 
 the policy was issued or obtained, or on the chief officer, or in case 
 of his absence on the secretary of any subordinate lodge in this 
 State of such fraternal society, shall be a good and valid service 
 on such lodge, society or institution issuing the policy, the same 
 as if service had been on the supreme officers of said lodge, society 
 or institution. 
 
 Suicide — Presumptions— Burden of Proof. 
 
 "When suicide is relied on as a defense the burden of proving 
 it is upon the society. "There is a presumption against suicide 
 or dea1:h by any other unlawful act, and this presumption arises 
 even where it is showm by proof that death was self inflicted. It 
 is presumed to have been accidental until the contrarv is made 
 to appear." 
 
 Grand Lodge A. 0. U. W. vs. Banister, Oct. 1, 1906, 80 Ark. 190. 
 
 Coroner's Verdict — Admissibility — Competency to Prove Cause of 
 Death. 
 
 The verdict of a coroner's jury that the member suicided is not 
 necessarily prima facie of such fact, but. at most, maj' be considered 
 by the trial jury along with other testimony in the case. As to the 
 admissibility of the coroner's verdict and its value as evidence to 
 establish the cause of death, the Court cited many authorities pro 
 and con, but refused to determine the question. 
 
 Grand Lodge A. 0. U. W. vs. Banister, Oct. 1, 1906. SO Ark. 190. 
 
 Forfeiture — Burden of Proof — Reinstatement. 
 
 One suing to recover on a certificate held by a member who had 
 been suspended for non-payment of dues assumes the burden of prov- 
 ing such member to have been reinstated. 
 
 Woodmen of the World vs. .lackson, Nov. 5. 1906. 80 Ark. 419.
 
 20 FRATERNAL SOCIETY LAW 
 
 Reinstatement — Good Health — Estoppel. 
 
 "Where the by-laws stipulate that an attempted reinstatement of 
 a suspended member shall not be operative unless the member is in 
 fact m good health, the receipt by a local officer of a suspended 
 member's arrearages will not estop the society from showing that 
 the member was not in good health. No estoppel is worked by the 
 receipt of money imder such circumstances. 
 
 Woodmen of the World vs. Jackson. Nov. 5, 1906, 80 Ark. 419. 
 
 Suit on Bond — Limitations — Provisions. 
 
 In a suit on a bond given by the Society to the State, as required 
 by the statute, a plea was interposed that the suit had not been 
 begun within the year in accordance with the provisions in the 
 policy. The Court held that liability upon the bond is predicated 
 upon liability on the policy, and if, as a matter of fact there is no 
 liabilitj' on the policy, then there can be no recovery on the bond, 
 and that the legislature did not intend to enlarge the liabilities 
 of insurance companies and sureties b.v requiring that the company 
 should furnish the bonds to the State. The limitation clause in 
 the policy was upheld. 
 
 McCulloch vs. Mutual Reserve Fund Life Ass'n, Feb. 17, 1906, 78 
 Ark. 32. 
 
 Date of Beginning of Liability. 
 
 Liability under the bond to the State is fixed when the loss under 
 the policy occurs, and not from the date when the amount becomes 
 payable. 
 
 U. S. Fidelity & Guaranty Co. vs. Fultz, July 29, 1905, 76 Ark. 410. 
 Proof of Loss — Waiver of. 
 Proof of loss is waived by denial of liability. 
 
 Phoenix Insurance Co. vs. Boyette. Nov. 4, 1905, 77 Ark 41; 
 Planters Mutual In.surance Ass'n vs. Hamilton, Nov. 4, 1905, 77 
 Ark. 27.
 
 THE STATE OF ARKANSAS 21 
 
 Death in Violation of Law — Defense of. 
 
 A death received while i-etroiitiug in good faith from a personal 
 difficulty, and such retreat not being for the purpose of gaining 
 an advantage to renew the fight, — although the deceased began the 
 assault with a weapon capable of inflicting great bodily harm, — 
 was not death occurring in violation of any criminal law within 
 the terms of a certificate providing that if death shall result "at 
 the hands of justice or in violation of or attempt to violate any 
 criminal law, then there shall be paid only such sum in proportion 
 to the whole amount of the certificate as the matured life expectancy 
 at the time of such death is to the entire expectancy at the date of 
 acceptance of the application" according to the American Experi- 
 ence Table of Mortality. 
 
 Supreme Lodge Knights of Pythias vs. Bradley, Dec. 10, 1904, 73 
 Ark. 274. 
 
 Warranties — Breach of. 
 
 Where the applicant warranted his answers and statements to be 
 full, complete and true, failing which the policy was to be void, 
 and where he failed, in response to questions on the subject, to 
 disclose that he had had a serious illness and to mention the names 
 of attending phj'sicians, etc., the concealment was calculated to 
 deceive the society and it was held to have voided the policy. 
 
 Mutual Reserve Fund Life Ass'n vs. Cotter, Oct. 22nd, 1904, 72 
 Ark. 620. 
 
 Arkansas Contract. 
 
 The contract evidenced by the policy is held to be an Arkansas 
 contract, notwithstanding the stipulation in the policy that it is 
 to be deemed to have been made in New York. The Court said, 
 "The stipulation that it shall be governed by and construed only 
 according to the laws of the State of New York does not consti- 
 tute the statutes of that state the laws by which the validity and 
 effect of the policy is to be determined, but makes them only a
 
 22 FRATERNAL SOCIETY LAW 
 
 part of the contract to be construed and enforced as any other 
 condition in the policy." 
 
 Mutual Reserve Fund Life Ass'n vs. Minehart, Oct. 29, 1904, 72 
 Ark. 630. 
 
 The Contract and Not the Character of the Company Determines 
 Rights. 
 
 The right of one claiming under a mutual benefit policy, in a 
 society" created for benevolent purposes, is to be ascertained by the 
 contract itself and without regard to the character of the company 
 sought to be made liable. ' 
 
 ■ Block vs. VaVlley Mutual Ins. Ass'n, 52 Ark. 201; 
 Johnson vs. Knights of Honor, 53 Ark. 255. 
 
 Proving By-laws. 
 
 A bj--la\v of the Supreme Lodge Knights of Pythias affecting 
 the Endowment Rank is not sufSciently proven when the Secretary 
 of the Endowment Rank while testifying states its terms and pro- 
 duces a pamphlet which he states is the official publication of the 
 Constitution and Laws of the Endowment Rank, although he says 
 he is the custodian of the books of such rank. "It seems to be a 
 case where the litigant has proved all round tlie necessary fact, but 
 has not proved the fact itself." 
 
 Supreme Lodge Knights of Pythias vs. Robbins, March 22, 1902, 
 70 Ark. 364. 
 
 Effect of Suspension of Lodge on Members Certificates. 
 
 A certificate was issued to a iiKunber of a local lodge which cer- 
 tificate provided for the payment of a sum of money on condition 
 that the member should comply with all the laws of the Society and 
 maintain his membership in the subordinate lodge. It was shown 
 that the subordinate lodge became suspended for non-payment of 
 dues required of it. linl I lie society was held liable upon the cer-
 
 THE STATE OF ARKANSAS 23 
 
 tificate, notwithstanding such suspension ; the member having com- 
 plied with all requirements \ipon him by the payment of all dvies 
 and assessments. 
 
 United Brothers of Friendship vs. Haymon, March 3, 1900, 67 Ark. 
 506. 
 
 Precedent Conditions. 
 
 "Where a contract of life insurance contained a condition thai 
 the policy should not take effect until the first premium is paid 
 while the applicant is in good health, the insurer is not bound under 
 such policy unless such condition is complied with. 
 
 Mutual Life Insurance Co. vs. Parrish, June 10, 1899, 66 Ark. 612. 
 
 Assessment— Amount of Benefit — Burden of Proof. 
 
 Where the contract is to pay a certain sum provided the amount 
 realized from one assessment shall equal that sum, the society is 
 bound to pay the maximum amount in the absence of a showing 
 that the assessment could not produce such sum and the burden 
 of making such a showing i.s upon the society. 
 
 Masons Fraternal Accident Ass'n vs. Riley, April 30, 1S9S, 65 Ark. 
 261. 
 
 Heirs at Law — Dower and Distribution. 
 
 The Knights of Honor issued a benefit certificate to one of its 
 members agreeing to pay the sum of .$2,000 on his death "to his 
 heirs" at law. At the tiim^ when this certificate was issued the 
 member -was unmarried, and the laws of the society authorized cer- 
 tificates to be issued payaable on the death of the member to his 
 family as he might direct. Subsequently these laws were changed 
 so as to authorize the issuing of a certificate to a member payable 
 to "some member or members of his family or person or persons 
 dependent upon him as he may direct or designate by name to be 
 paid as provided by general law." Subsequent to the passage of
 
 24 FRATERNAL SOCIETY LAW 
 
 this last law. the member iu question married and a child was born 
 of the marriage, but died; and then the member died, leaving his 
 widow and certain brothers and sisters as his nearest of kin sur- 
 viving him. The benefit certificate was never changed and the 
 society paid the money into court. After discussing at considerable 
 length various authorities, and construing the word "heirs." the 
 court said : 
 
 "Suffice it to say that the weight of authority holds the word 
 'heirs' when used in any instrument to designate the persons to 
 whom the person's property is transferred, given or bequeathed 
 and the context does not explain it. means those who would under 
 the statute of distribution be entitled to the personal estate of the 
 persons of whom they are mentioned as heirs, in the event of death 
 and intestaej'." 
 
 Many authorities are cited in support of this proposition. 
 
 The court held that there was a distinction between distribution 
 and dower, that dower was in the natTu-e of a lien created by law 
 in the property of the husband at the time of marriage which neces- 
 sarily takes precedence over the other subsequently accruing rights 
 and attaches to certain property and is satisfied out 6i it, while dis- 
 tribution occurs after administration and payment of debts; and 
 the estate is then divided between the heirs or legatees, and that the 
 ■nndow was not entitled to any portion or distributive share, after 
 her dower had been allowed. 
 
 Johnson vs. Knights of Honor. May, 1890. 53 Ark. 255. 
 
 Interpleader — Society Alone Can Claim its Non-liability. 
 
 A society deposited in court, under a bill of interpleader, the 
 amount of the certificate which was payable to heirs of the deceased 
 member, and it made certain brothers and sisters and half brothers 
 and half sisters defendants together with the surviving widow. It 
 was thereafter claimed that neither the widow nor any of the other 
 defendants were entitled to take the amount of the benefit. The 
 court said that this was a question thai could be raised by no one 
 except by the society and that it did not raise it because it had paid 
 the money into court which was in tiu^ nature of an expression of its
 
 THE STATE OF ARKANSAS 25 
 
 will tliat the amount of the money should be paid to the member's 
 heirs. 
 
 Johnson vs. Knights of Honor, May, 1890, 53 Ark. 255. 
 
 Fraternal Societies vs. Mutual Societies. 
 
 In discussing the distinction said to exist between mutual life in- 
 surance concerns and fraternal beneficiary societies the Court said: 
 
 "We have found no cases which recognize any distinction be- 
 tween the mutual insurance and the mutual benefit society except in 
 states where the statute makes a difference. But regardless of the 
 character of the companj', the rights of persons claiming insur- 
 ance arise out of or depend upon the contract and must be ascer- 
 tained by and fixed by the contract, althoiigh the object of the com- 
 pany in entering into the contract may be benevolent, this purpose 
 cannot impart any new meaning to the unambiguous terms of the 
 contract. When the Courts are invoked, the contract measures, the 
 right of one and the obligation of the other party, and relief must be 
 granted, if at all, according to its terms. That a member of a mutual 
 benefit society may change the beneficiary named in the certificate 
 has been frequently held, not, however, because of the character of 
 the Societ}', but because of the stipulation contained in the certificate 
 expresslj' authorizing it. In most cases such certificates as have 
 been the subject of judicial decision contain the express stipulation 
 that the beneficiary named may be changed. In others, the articles 
 of association or by-laws contained such provision and are by the 
 terms of the policy made a part of it. The effect in each case is the 
 same. 
 
 Block vs. Valley. Mutual Ins. Assn., May. 1SS9, 52 Ark. 201. 
 
 Failure to be Initiated^Certificate Void. 
 
 In the organization of a new lodge, an applicant for membership 
 in the Society was included on the list nf members. A benefit cer- 
 tificate was issued by the Society but not delivered to him. He was 
 elected to office in the Subordinate Lodge, hut never installed and
 
 26 FRATEBKAL SOCIETY LAW 
 
 died before being either obligated or initiated into the Society, but 
 after having paid the amount of one assessment. It was held that 
 by reason of the applicant's failure to be initiated and obligated 
 as required bj' the laws, there was no liability under the certificate. 
 
 Supreme Lodge Knights and Ladies of Honor vs. Johnson, February, 
 1907, 81 Ark. 512. 
 
 Changes of Beneficiary Not Authorized. 
 
 The benefit certificate issued by the Kjiights and Ladies of Uni- 
 versal Brotherhood payable to the member's surviving children was 
 held to be an ordinary contract of insurance and that the member 
 had no power to change the beneficiaries named in the certificate 
 unless expressly authorized to do so by the certificate or by the laws 
 of the Society. 
 
 Johnson vs. Hall, December, 1891, 55 Ark. 210. 
 
 Failure to Pay Losses Promptly — Penalties. 
 
 The act of March 29th, 190.5, imposing penalties and attorneys 
 fees upon insurance companies and societies for failure to pay their 
 contracts within the time specified in same, was held not to ai)ply 
 to contracts in existence at the time when the act went into effect. 
 
 Arkansas Mutual Fire Ins. Co. vs. Wolverton, April. 1907, 82 Ark 476. 
 
 Waiver — Election to Office of Applicant Before Initiation. 
 
 An applicant for membership iu the Kjiights and Ladies of Honor 
 died before being obligated or initiated. It was contended that the 
 subordinate lodge, by reason of having elected the applicant to an 
 olifice in the lodge, had waived the provision of the society requiring 
 that applicants be obligated and initiated. In passing upon this 
 question the Court said : 
 
 "If it be conceded that the subordinate lodge had the power by 
 any action of that body to waive these positive requirements of the 
 Constitution and laws of the Supreme Lodge, the mere election to
 
 THE STATE OF ARKANSAS 27 
 
 office ill the lodge of an ai)plicant for membership where he was 
 never admitted and never attended meetings or performed any 
 duties of the office, could not operate as a waiver of any prere(|uisites 
 to membership in the order. Certainly it could not be considered a 
 waiver until there was an acceptance of the office and installation 
 therein. 
 
 Supreme Lodge Knights and Ladies of Honor vs. Johnson, February, 
 1907, 81 Ark. 512. 
 
 Forfeiture for Failure to Pay. 
 
 As to the facts in a case where the contract had been forfeited 
 for non-payment of dues, see 
 
 Odd Fellows' Benefit Assn. vs. Burton, Supreme Court of Arkansas, 
 July, 1907, 104 S. W. 163. 
 
 Waiver — Defects in Application. 
 
 Where an application is accepted which upon its face shows de- 
 fects, the Society is held to waive such defects. 
 
 Fidelity Mutual Life Insurance Co. vs. Beck. Supreme Court of 
 Arkansas, July, 1907, 104 S. W. 533. 
 
 Warranty — Increase of Risk. 
 
 Where the answers to questions in an application were warranted 
 true, and the matter inquired of would affect the assumption of the 
 risk, the warranty is material even though the death may have 
 been caused from some other reason entirely disconnected with the 
 matter inquired about. 
 
 Fidelity Mutual Life Ins. Co. vs. Beck, Supreme Court of Arkansas, 
 July, 1907, 104 S. W. 533. 
 
 Parole Contract of Insurance. 
 
 . Everything had been done to complete the contract of insur- 
 ance which was required to be done except the issuance and deliv-
 
 28 FRATERNAL SOCIETY LAW 
 
 ery of the certificate. The certificate was not issued, but the Court 
 held that there was a parole contract for insurance made and that 
 the same was valid. 
 
 Knights of Maccabees of the World vs. Gordon, Supreme Court of 
 Arkansas, May, 1907, 102 S. W. 711.
 
 THE TERRITORY OF ARIZONA 29 
 
 THE 
 
 TERRITORY OF ARIZONA. 
 
 CHAPTER 4. 
 
 There is no statute law in force in the Territory of Arizona that 
 concerns fraternal societies. The Secretary of State of Arizona 
 rules that "there are no requirements for the transaction of busi- 
 ness in Arizona by fraternals. " 
 
 Situs of Contract and Suits — Garnishment. 
 
 Plaintiff in Arizona sued defendant on an insurance policy. The 
 defendant set up as defense that it was engaged in business, with 
 its offices in California, where its general manager conducted all 
 business and kept the funds for the payment of losses; and that 
 after receipt of plaintiff's proofs of loss, the plaintiff's Calif oi'nia 
 creditors brought suit against it, service being had on plaintiff' by 
 publication, and garnished, under the attachment laws of California, 
 the amount due ])la!iitiff iijioii liis jioliey of insurance, and that 
 upon judgment against plaintiff in said suits defendant discharged 
 its obligation to the plaintiff' by paying to plaintiff's creditors in 
 garnishment proceedings the full amount due plaintiff upon his 
 policy. It was held that the situs of the fund was in California, 
 subject to garnishment by plaintiff's creditors, and therefore, that 
 payment under such garnishment proceedings was a complete de- 
 fense to plaintiff's action. 
 
 National Fire Insurance Co. vs. Ming, Marrli 2S. 1900. 7 Ariz. 6; 60 
 Pac. 720.
 
 30 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF CALIFORNIA. 
 
 CHAPTER 5. 
 
 There is but one section of the Statute Law of California that 
 relates to Fraternal Benefit Societies, and that is Section 630 Art. 
 16 of the Political Code and is contained in the Act of the Legis- 
 lature approved March 8, 1907. The Section reads as follows : 
 
 "Section 630. Secret or fraternal societies, lodges, or councils 
 incorporated or organized for the purpose of mutual pi-otection 
 and relief of their members and for the payment of stipulated 
 sums of money to their members or to the beneficiaries of deceased 
 members which conduct their business and secure membership on 
 the lodge system exclusively, having ritualistic work and cere- 
 monies in their societies, lodges, or councils, and all mutual or 
 benefit associations organized or foi-med and composed of member's 
 of any such society, lodge or council exclusively, are exempt from- 
 the provisions of all the insurance laws of this State." 
 
 Creation of Classes — Discrimination, 
 
 "The essential principle upon \\']iich co-ojierative associations on 
 the assessment plan-'^e based, is that there will be a constant in- 
 vigoration of the association by the acquisition of new members, 
 that it shall be a going concern for the advantage of all, and that 
 every member of the association will be given the benefit of the 
 average mortality of the entire membership in force at the last death 
 prior to the assessment; and it was necessarily upon this tlu'ory 
 that the earlier member.s of the association .joined it. They an- 
 ticipated the benefit which wovild result from a lower avei'age mor- 
 tality throiifrli the c-onstaiit acfpiisil inn dl' tlirsi' in'W mciiihers. Miid
 
 THE STATE OF CALIFOKMA 31 
 
 it was this benefit wliieh was secured to Benjamin as one of the 
 earliest members, by the lu'ovisioii in his contract which called 
 for an assessment 'niHin the cntiri' incmljership in force at the date 
 of the last death claim, same to be apportinni'd among- the members 
 according to the age of each member,' He was entitled to this 
 benefit which would accrue from the constant acquisition of such 
 members. This acquisition would naturally create a lower average 
 of mortality among the entire membership and consequently a 
 smaller cost would have to be sustained by each member, where 
 the assessment to meet death claims was distributed over the entire 
 membership, equally apportioned as to amount according to the 
 respective ages of the members. 
 
 "The right to segregate members into the 15-year class, as Avas 
 done here, was detei'mined by the supreme courts of ^linnesota 
 and North Carolina, adversely to the contention of this appellant. 
 In this case the suits were brought against this same appellant by 
 members of this association who had been segregated, with Ben- 
 jamin, into this 15-year class to recover damages for cancellation of 
 their policies for non-payment of a mortuary call similar to the 
 one under consideration here, levied under the same resolutions 
 advancing the member of that class along to attained ages and as- 
 sessing them according to rates fixed for such ages. 
 
 "In these decisions it was held, that the change in the rate of 
 assessment to advanced age, and which was to apply only to those 
 members who entered prior to 1890, placed in the class of those 
 solely for the purpose of such assessment, was an inequitable and 
 arbitrary discrimination against that class, and violative of their 
 contract of insurance." 
 
 The court, in this ease, is careful to say that, "All that we decide 
 in the present case is, that the. defendant has violated its contract 
 with the ))laintifF in a material matter, whereb.v the plaintiff having 
 .suffered substantial injury' is entitled to substantial damages. We 
 do not decide that a mutual insurance eompanj-, or any other kind of 
 insurance company, cannot issue policies of divers kinds and classes, 
 if so authorized by its charter ; nor do we decide that the member of 
 a purely mutual association is not bound by all reasonable b.v-laws 
 and changes lawfnlh- made therein."
 
 32 FRATERNAL SOCIETY LAW 
 
 The court discusses the following cases against the same in- 
 surance society: 
 
 Ebert vs. Mutual Reserve Fund Life Ass'n, 81 Minn. 116. 
 
 Straus vs. Mut. Reserve Fund Life Ass'n, 126 N. C. 971; 83 Am. St. 
 
 R. 699. , 
 Gaut vs. Mut. Res. Fund Life Ass'n, 121 Fed. 403. 
 
 The above quotations are made by reason of the importance of the 
 decisions upon the questions submitted, notwithstanding the fact 
 that the insurance company at bar was not a fraternal beneficiary 
 society, but was probably a mutual assessment society only. 
 
 Benjamin vs. Mut. Reserve Fund Life Ass'n, Jan. 2nth, 1905, 146 
 Cal. 34. 
 
 Forfeiture — Attempted Restoration. 
 
 The laws of a fraternal benefit society are part of the contract, 
 and M'here these laws provide for the payment of assessments for 
 death losses, and for the suspension of a member, and forfeiture of 
 his certificate upon his failure to pay the assessments as levied, and 
 also for the restoration of the member and his certificate vipon con- 
 ditions which are named in the laws and which include payment 
 of all assessments, and the vote of restoration by a subordinate lodge, 
 it was held that no action can be maintained by the beneficiary iipon 
 such a certificate, which has been forfeited for non-payment of the 
 assessments, and not renewed as provided b.\' the by-laws, notwith- 
 standing that all assessments required have been paid, and the 
 death of the member occurred before the vote of the lodge could be 
 had restoring him. 
 
 Butler vs. Grand Lodge A. O. U. W., Feb. 2. 190.'S. 14R Cal. 172 
 
 Warranty — Doubtful Language. 
 
 Notwithstanding the application for a certificate of life insur- 
 ance in a fraternal society purports to contain a warranty of the 
 truthfulness of llic stali'iiients as to lieallli nl' llu' npplic.-mt and to
 
 THE STATE OF CALIFORNIA 33 
 
 agree that their falsity .shall avoid the certificate, where the cer- 
 tificate does not expressly mention the application, hut expressly 
 provides that it "is subject to, and be construed and controlled by 
 the laws of the order," the laws are a part of the contract; and 
 where they make the api)lication also a part of the contract, but ex- 
 pressly provide that any wilfully erroneous statements or intentional 
 concealments of material facts therein shall avoid the certificate, 
 the contract is to be construed against a, strict warranty and for- 
 feiture of the insurance, for mere untruthfulness of the statements. 
 Warranties, on account of their stringent character, are not favored 
 in law, and no construction will be indulged in which has the effect 
 of a strict warranty of the literal truthfulness of statements, where 
 the terms of the contract are conflicting or inconsistent, or render 
 the intention to make such warranty doulitfid. 
 
 O'Connor vs. Grand Lodge A. 0. U. W., April 4th, 1905, 146 Cal. 484. 
 
 Dependency of Beneficiary. 
 
 A person not related to a member of a fraternal society, who has 
 no legal or moral claim upon him, beyond the member's voluntary 
 contributions to her supp(n-t during his life, which he might have 
 ceased at any time, and who is a married woman, having a husband 
 capable of supporting her, and is not dependent upon such member 
 within the meaning of a by-law allowing a person to designate as 
 beneficiary in his certificate, persons "who shall be dependent upon 
 him" is not entitled to take the benefit. The "dependence" which 
 is there meant is a dependence resting upon some moral, legal, or 
 equitable ground and not a dependence which is only a matter of 
 favor, founded upon the mere whim of the member, and which 
 may be cast aside without violating any legal or moral obligation. 
 
 Caldwell vs. Grand Lodge A. O. U. W., Nov. 10th. 1905, 14S Cal. 195. 
 
 By-laws Part of Contract — —After-enacted Laws. 
 
 Where a member when he joined the society agreed specially to 
 abide by and conform to the bv-laws in force, and tho.se that mav be
 
 34 FRATERNAL SOCIETY LAW 
 
 subsequently adopted, his compJiance to after-euacted by-l;i\vs was 
 a condition upon which he was entitled to participate in the bene- 
 ficiary fund of the society; and the by-laws in existence when his 
 certificate matured, and not for any reason invalid, enter into and 
 govern all his rights and relations to the society. 
 
 Caldwell vs. Grand Lodge A. O. U. W., Nov. 10th, 1905, 14S Cal. 195. 
 
 Right to Name Certain Beneficiaries Not a Vested Right. 
 
 Where the original by-laws allowed any person to be named by 
 the member as a beneficiary, a change made in the by-laws fequiring 
 members to designate some member of the family, or some one re- 
 lated by blood, or some one dependent upon him is reasonable ; and 
 after such by-laws went into effect, the member had no right to 
 name a beneficiary other than one of the classes therein designated. 
 
 Caldwell vs. Grand Lodge A. 0. U. W., Nov. 10th, 1905, 14S Cal. 195. 
 
 False Statements in Application — Act of Agent Estops Society. 
 
 Where an applicant for a certificate in a fraternal society in good 
 faith, as a matter of fact makes truthful answers to questions con- 
 tained in the application or medical examination, but his answers, 
 owing to the fraud, negligence, or mistake of the representative of 
 the society in filling out the application, are incorrectly transcribed, 
 the society is estopped to assert their falsity. 
 
 Lyon vs. United Moderns. Jan. 17, 1906, 148 Cal. 470. 
 
 Proof of Death — Requisites of. 
 
 A certificate requiring "satisfactory proof of the death of the 
 member, and of the identity and right of claimant, and the validity 
 of the claim," cannot be reasonably construed as requiring a show- 
 ing as to the validity of the certificate, or that there must be such 
 showing as to reasonably satisfy defendant's officers that the de- 
 fendant had no good defense against the claimant on the ground of 
 misrepresentation. Proof of death and proof of the clainuint's right
 
 THE UTATE OF CALIFORNIA 35 
 
 and identity to such benefit as was stipulated bj' the certificate were 
 the only requisites. 
 
 Lyon vs. United Moderns, Jan. 17, 1906, 148 Cal. 470. 
 
 Beneficiary — Sister-in-law. 
 
 Where a benefit certificate in the American Council of the Order 
 of Chosen Friends was made payable to the wife of a brother of a 
 member, not as a gift, but in consideration of the care and support 
 by the husband and wife of the member's children, and in satis- 
 faction of indebtedness of the member to the husband, and of the 
 payment of future assessments by the husband upon the certificate, 
 the wife was held to be a proper beneficiary ; but iu this case, there is 
 no real contest involving the sister-in-law's claim, the question before 
 the court being whether or not the proceeds of the certificate which 
 had been collected and invested in real estate, was the separate prop- 
 erty of the wife, or the property of the community, estate of the 
 husband and wife. 
 
 Bollinger vs. Wright. May 16th, 1904, 143 Cal. 292. 
 
 Contract Determined Solely by the Laws. 
 
 In an action by a member of the Brotherhood of Railroad Train- 
 men, an unincorporated fraternal society, it was held that his right 
 to recover must be measured by his contract, which must be deter- 
 mined by the constitution and by-laws of the association, to which 
 he had agreed to be bound. In such case, before any right of re- 
 covery against the society could be shown, it was held that the 
 approval of the beneficiary board was required as a precedent con- 
 dition to the right of the claimant for benefits, and, as the beneficiary 
 board had rejected the plaintiff's claim, a non-suit was properly 
 granted. 
 
 Poole vs. Brotherhood of Railroad Trainmen, June 21st. 1904. 143 
 Cal. 650.
 
 ;^(5 FRATERA'AL SOCIETY LAW 
 
 Beneficiary a Creditor — Attachment — Preference. 
 
 Upon the death of a member of a fraternal society, the beneficiary 
 under the certificate suing after the death of the member, is held 
 to be a creditor of the society, and to have the right to attach a 
 fund belougiug thereto in this State. In this case the beneficiary 
 claimed the fund that the receiver of the Supreme Council of the 
 Order of Chosen Friends also claimed, and the court decreed that 
 the domestic creditor had the preference, and refused to inquire 
 into the legality of the appointment of a receiver, or as to his rights 
 under the laws of the State, the court saying, in effect, that no 
 statute nor rule of comity requires the rights of a domestic attaching 
 creditor to be set aside in deference to a foreign receiver claiming 
 imder the laws of another State. 
 
 Lackmann vs. Supreme Counoil Order of Chosen Friends et al.. Jan. 
 26th, 1904. 142 Cal. 22. 
 
 Beneficiary — Validity at Inception. 
 
 Where a fraternal society jirovided in its by-laws that members 
 might designate some one related by blood, or dependent, as bene- 
 ficiary, and where the mother of an unmarried member has been des- 
 ignated, such designation being valid at the time when made, if left 
 imchanged by the member after marriage, it was valid at his death, 
 and the mother is entitled to the benefit to the exclusion of the 
 widow and children of the member. 
 
 Sheehan vs. .Journeymen Butchers' Protective Benevolent Association. 
 March 14th, 1904. 142 Cal. 4S9. 
 
 Beneficiaries — Extension of Class by Statute. 
 
 A certificate of incorporation of a fraternal society stating its 
 object to be "to relieve the distress of widows and orphans," was 
 held not to be construed ms limiting (lie b(Miefits of the association 
 to till' widows and ()r|)li;uis t\\' dcccasi'd nienihors, as it may by its 
 eonstitiition and by-laws, adopted in confoi-niily with \\\o stntnte, 
 f'xfr'iul \\^ Iir'iii'fils 1(1 (ilhiT persons.
 
 THE STATE OF CALIFORNIA 37 
 
 Sheehan vs. .Toiuneymen Butchers' Protective and Benevolent Ass'n, 
 March 1-1. l'.M)4. 142 Cal. 489. 
 
 Members Required to Resort to Remedies Provided in Laws. 
 
 Although as a general rule, one who has become a member ol' a 
 fraternal society, is not entitled to an appeal to the courts for re- 
 dress, until he has first applied to the society by the proper pro- 
 cedure, and has exhausted all lawful remedies provided by the 
 laws of the society ; yet where sick benefits were sought on behalf 
 of an insane member by his wife as guardian of his person and 
 estate, and the society violated its own laws in not giving her any 
 notice or opportunity to produce testimony in behalf of her husband, 
 but an adverse decision was made against him, the court has juris- 
 diction to hear and determine the merits of the controversy. 
 
 Schou vs. Sotoyome Tribe No. 12, Improved Order of Red Men. 
 Sept. 18, 190,3, 140 Cal, 254, 
 
 Fraternal Society Not a Charity. 
 
 An incorporated fraternal society, conducting a private hospital 
 for the benefit of its members, which treats sick members in con- 
 sideration of payment of dues by them, and receives other sick 
 patients for an agreed consideration, is liable to one of the latter 
 for damages caused by the negligence of a surgeon employed by 
 the hospital, at a salary paid by the society; while the by-laws pro- 
 vided for charity as one of the ob.iects of the hospital, nevertheless, 
 this does not render the society a charitable one, where there is 
 nothing in them requiring the application of the funds of the society 
 for charitable i>urposes. 
 
 Brown vs. La Societe Francaise De Bienfaisance Mutuelle, Feb, 5, 
 1903, 138 Cal, 475, 
 
 Statute of Limitations — Release From by Acknowledgment of Claim. 
 
 Where the only defense to an action upon a beneficiary certificate 
 by the wife of the deceased member relates to the statute of limita-
 
 38 FRATERNAL SOCIETY LAW 
 
 tions, a formal judicial acknowledgment of the indebtedness of the 
 corporation to the plaintiff, made and signed by its authorized board 
 of arbitration upon the application of the beneficiary, if their action 
 iinder the rules of the order, whose decision being unappealed from, 
 should become final and conclusive, it is a binding act of the cor- 
 poration, and takes the ease out from the operation of the statute of 
 limitations. 
 
 Dearborn vs. Grand Lodge A. O. U. W.. March 20th, 1903, 138 Cal. 
 658. 
 
 New Charter for Old Society — Affect on Members ' Contracts. 
 
 An apiilicant for membership in a fraternal society agreed to be 
 bound by all the laws of the society then in force, or which might 
 be thereafter adopted by it. Upon this application, made in 1891, a 
 certificate was issued. In 1896 the society passed a by-law providing 
 for the forfeiture of certificates of membership held by members who 
 might enter the active service of the army or navy in time of war. 
 In 1898 the member entered actively into the military service of 
 the army, and was ordered to the Philippines, where he died from 
 wounds received in battle. Up to the time of his death, he had made 
 all payments required upon the certificate. 
 
 The society was first incorporated in 1870, and by an amendment 
 made in 1875, the period of existence of the corporation was fixed 
 at 20 years, and it was while the society was doing business under 
 the charter as amended in 1875 that the certificate was issued. In 
 189-1: officers and members of the Supreme Lodge of the society ob- 
 tained a new charter. This was done in view of the fact that the 
 charter existing was about to expire, and the new charter provided 
 "tliat all claims, accounts, debts, things in action, or other matter 
 of liusiness, of whatever nature now existing for or against the said 
 S\ipreme Lodge of Knights of Pythias of the World shall survive, 
 succeed to and against the defendant herein." The new society took 
 the business of the former on and after June 29th, 1894, received 
 their assessments from members under certificates theretofore issued, 
 and carried on business .iust as tlie old society had been doing. The 
 court licld that the member holding the certificate sued upon in this
 
 THE STATE OF CALIFORNIA 39 
 
 ease, had no knowledge of the change in the corjxu'ation, and that 
 the two corporations were different entities, and that while the old 
 organization might transfer its fnnds to the new one, upon the latter 
 agreeing to pay its obligations, it could not delegate power to make 
 laws as to existing contracts. And the court, therefore held, that 
 the law passed in 1896 did not affect the member's contract. The 
 opinion cites no authority to support it and rests its opinion upon 
 disputed facts which were not actually in issue. The court seems 
 to have misapprehended the character of the organization, and some 
 essential facts connected therewith and the Act of Congress, ap- 
 proved June 29th, 1894, reincorporating the society, and to have 
 misunderstood the facts as to the date of the expiration of the char- 
 ter, and, consequently, the opinion of the court rests upon doubtful 
 and questionable ground. 
 
 Richter vs. Supreme Lodge Knights of Pythias. July 7th, 1902, 137 
 Cal. 8. 
 
 Trial and Expulsion by Lodge — Setting Verdict Aside by Court. 
 
 Where the constitution of a fraternal society provided for the 
 trial of an accused member, before a trial committee upon notice, 
 and for action upon their verdict and report by the lodge, and for 
 expulsion or other penalty, by two-thirds of the ballots cast in the 
 lodge, and a judgment of exi^ulsion appearing upon the records to 
 have been made by the ballots of a majority of the members present, 
 was declared void by a court of competent jurisdiction, and the ex- 
 pelled member was ordered reinstated to the extent that such mem- 
 bership existed immediately prior to such attempted expulsion. The 
 judgment did not effect the validity of the trial and verdict, and it 
 was held that a subsequent expulsion of the member by two-thirds 
 of the members present, without any new verdict, or new trial, was 
 valid and lawful. 
 
 Dojanin vs. Austrian Benevolent Society of San Jose, August 7th, 
 1902, 137 Cal. 165.
 
 40 FRATERXAL SOCIETY LAW 
 
 Lien on Members' Certificate — Statute of Limitations. 
 
 Where a benefit certificate, payable to jtlaintiff as beneficiary, 
 was assigned by the member as collateral security to indemnify his 
 sureties, who were compelled to pay a debt for him, and who were 
 designated as beneficiaries in the assignment, but not properly made 
 siTch under the laws of the society, and the sureties neglected to 
 bring any action against the member for reinbursement for more 
 than two years, his obligation to reimburse not having been renewed 
 or extended by him in writing, became barred by the statute, and 
 the lien of the sureties upon the certificate thereby extinguished 
 as against the lawful beneficiary. 
 
 Conway vs. Supreme Council Catholic Knights of America et al., 
 Sept. 22nd, 1902, 137 Cal. 384. 
 
 Legal Heirs — Who Are? 
 
 A benefit eei-tifieate was payable on the member's death "to his 
 legal heirs, related to said member in the relationship of heirs," and 
 was held to constitute a contract between the member and the 
 society, and that the member was without right to change the bene- 
 ficiary by his will. It was further held that the beneficiaries under 
 such contract are entitled to take by authority thereof, and not by 
 succession, and that the certificate did not become a part of the 
 assets of the member's estate, and that for the purjiose of determin- 
 ing who the heirs of the deceased member are, resort is to be had to 
 the succession laws of the State under which the descent is cast. 
 
 Burlie vs. M. W. of A., Jan. .ith. 1906. 2 Cal. App. Gil. 
 
 After-enacted Laws — Reduction of Benefit — Distinction Between 
 Rights Under Certificate and By-laws. 
 
 A certificate issued by a fraternal society provided for the pay- 
 ment of ,$2,000.00 upon coiidition that the iiKuuber should comply 
 with the laws, rules, and rcg\iliiti(nis then govcfuing the society, 
 "or that tliereafter might, be ciuicted for its government." was held 
 to constitute a contract of iiisiirancf. and that it conld not be altered
 
 THE STATE OF CALIFORNIA 41 
 
 without, the assent of Ixitli pai'tles to the contract, and that a by-law 
 subsequently passed, reducing the amount payable on outstanding 
 benefit certificates for $2,000.00 to the amount of $1,000.00, each 
 was held to be not a rule or regulation for the government of the 
 society, but that such an enactment was an attempted repudiation 
 by the society of its contracts. The court said that if the society 
 could pass such a by-law, limiting its liability to one-half of its 
 obligation, it could by a similar enactment relieve itself of all obli- 
 gation. The court di-stinguished this case from that of Stohr vs. 
 San Francisco M. Fnd. Society, 82 Cal. 557, 22 Pac. 1125, by saying 
 that in that case the right of the plaintiff to receive sick benefits 
 was not based u]ion a special contract, but rested upon a by-law, 
 which the plaintiff by joining the society agreed might be changed 
 at the pleasure of the society. The court supports its conclusions 
 by discussing numerous authorities. 
 
 The court rested its decision upon the doctrine announced in the 
 cases of Morton vs. Supreme Coiuicil Royal League, 100 Mo. App. 76; 
 73 S. W. 259; Campbell vs. American Benefit Club, 100 Mo. App. 
 249 ; 73 S. W. 342. In which two cases it was held that an agree- 
 ment to be bound by after-enacted by-laws was not such an agree- 
 ment as to warrant the reduction or changing of the consideration 
 for which assessments were made upon the members. 
 
 Bornstein vs. Dist. Grand Lodge Indp. Order of B'Nai B'Rith, Jan. 
 9, 1906, 2 Cal. App. 624. 
 
 Divorce of Beneficiary — Effect of. 
 
 Where a member had designated his wife as his beneficiary 
 in accordance with the laws of the society, and she subse- 
 quently obtained a divorce from him. after which he mari'ied and 
 had children by his second wife, but died without having changed 
 the beneficiary certificate, the divorced wife is entitled as the bene- 
 ficiary named in the certificate, to recover the amount thereof to the 
 exclusion of the second wife and his children b^' her. The by-law of 
 the society providing for the appointment of beneficiaries, gave the 
 member power to name "such person or persons as said member 
 might have directed while living." It was further provided that the
 
 42 FRATERKAL SOCIETY LAW 
 
 benefieiarj- "shall in every instance be one or more members of his 
 family, or some one related to him. or dependent upon him." And 
 the court lield that the latter provision is to be construed as referring 
 to the relationship existing at the date of the certificate, and that 
 the designation of a beneficiar.y, valid in its inception, remained so, 
 notwithstanding the relationship of the member to the beneficiary 
 has ceased. 
 
 Courtois vs. Grand Lodge A. O. U. W. et al., Feb. 21, 1902, 135 Cal. 
 552; Citing with approval. Overhiser vs. Overhiser, 14 Colo. App. 1. 
 
 Right of Interpleader. 
 
 A corporation existing as a Fraternal Beneficiary Society may 
 maintain an action of interpleader between conflicting claimants to 
 a fund in its hands, and which it brings into court at the time of 
 filing the suit. 
 
 Woodmen of the World vs. Rutledge, August 12, 1901, 133 Cal. 640. 
 
 Beneficiary — Fiancee's Rights of. 
 
 Where a married man, living apart from his wife, surrendered a 
 benefit certificate taken in a fraternal society, which was pay- 
 able to his child, and obtained a new certificate in favor of an un- 
 married woman as his beneficiarj-, who was designated as his 
 fiancee, the court held that the new certificate was issued in accord- 
 aticr with the constitution of the plaintiff', and was in full efi'ect at 
 the time of the member's death: that the description of the bene- 
 ficiary as the member's "fiancee," might be disregarded as mere 
 descriptio personae, and the fact that she could not become engaged 
 to marry tlie member was held not to preclude a judgment in her 
 favor, and that she need not show that she had an insurable interest 
 in the life of the member in order to recover. It is to be remembered 
 that there is no statute law of the State prescribing the class of bene- 
 ficiaries and no by-law of the society upon the subject seems to have 
 been shown or regarded. 
 
 Woodmen of the World vs. Rutledge, August 12, 1901, 133 Cal. G40.
 
 THI-: STATE OF CALIFORNIA 43 
 
 Forfeiture for Non-payment of Assessment. 
 
 Wbcro a iiiciuln'r at;rc'es to conii)ly witli the laws of the society as 
 a condition upon which ho is to i)articipate in its beneficiary fund, 
 his failure to pay his subordinate lodge dues, was held to have 
 ipso facto suspended him under the by-law, and that his beneficiary 
 was not entitled to recover the amount of the benefit. 
 
 Marshall vs. Grand Lodge A. O. U. W.. August 14. 1901. 133 Cal. 686. 
 
 Denial of Subordinate Officer 's Agency — Estoppel. 
 
 The officers of a subordinate lodge were declared in the .society's 
 laws not to be agents of the grand lodge, and in such case, the court 
 upheld the provision, and denied the agency claimed on the part of 
 local lodge officers, and also denied that the local lodge had the 
 power to waive any laws of the grand lodge, and imputed knowledge 
 to the member of the fact, that the officers of the subordinate lodge 
 could not waive the grand lodge laws. It was therefore held, that 
 the grand lodge was not estopjied because of the fact that the 
 money paid by the member to secure his reinstatement in the sub- 
 ordinate lodge had been retained by the lodge. 
 
 Marshall vs. Grand Lodge A. 0. U. W., August 14, 1901, 133 Cal. 686. 
 
 Fraternal Societies Exempt from Insurance Laws. 
 
 The i)rovisions in the laws of a fraternal society providing that a 
 certificate issued entitles a beneficiary named therein to a stipulated 
 sum, upon the death of the member, does not sub.iect the societj' to 
 the operation of the general insurance laws of the State, said frater- 
 nal societies being expressly exempt from such general laws. 
 
 Marshall vs. Grand Lodge A. O. U. W., August 14th, 1901, 133 Cal. 
 686. 
 
 Sick Benefits — After-enacted Laws — Effect of. 
 
 Where a sick member of a subordinate lodge of the Knights of 
 Pythias had been paid sick benefits at the regular rate of $10.00 per
 
 44 FRATERNAL SOCIETY LAW 
 
 week for 100 weeks under a former by-law. a change in the b.y-laws 
 not made retroactive in terms, introducing a graduated scale of 
 $10.00 per week for 50 weeks, $5.00 per week for the next 50 weeks, 
 and $3.00 per week thereafter, or during the continuation of the 
 member's disability, it was held that the operation of the changed 
 by-law upon such sick member was the same as upon any other 
 member, and as if he had been taken sick upon the day of its 
 adoption ; but that no part of the benefits received by him prior to 
 the change could be considered as applicable upon the graduated 
 scale: 
 
 Berlin vs. Eureka Lodge No. 9, Knights of Pythias, March 21st, 1901, 
 132 Cal. .294. 
 
 Exhaustion of Lodge Remedies. 
 
 An aggrieved inember of a subordinate lodge of a fraternal societ.v 
 must exhaust all the remedies provided in llie by-laws for the re- 
 dress of grievances before he can apply to a court for relief. 
 
 Berlin vs. Eureka Lodge No. 9, Knights of Pythias. March 21st, 1901, 
 132 Cal. 294. 
 
 Changing Beneficiary— Compliance With Laws Required. 
 
 The by-laws of a fraternal society iiroviding a specified mode for 
 the changing of beiieticiary, forms a part of the contract, and the 
 society may require compliance witli its laws, or may refuse to pay 
 to tlie changed beneficiary. In the case at bar, a benefit certificate 
 was assi.gned by the member holding it, to a beneficiary named 
 therein, to secure sureties of the member who were compelled to 
 pay his debt ; but there was no compliance with the by-laws of 
 the societ.v witli reference to changing the beiH>ficiary, and it was 
 held that the sureties could not enforce their ileiiiaiid direelly against 
 the society. 
 
 Conway vs. Supreme Council Catholic Knights «( America. Jan. 
 25th. 19(11, 131 Cal. 437. See later case, 137 Cal. 3S4.
 
 THE ttTATE OF CALIFORNIA 45 
 
 Expulsion of Members and Lodges. 
 
 An niiiucorporatcil society, ors'anizecl toi' irintiial licnclit, is merely 
 an aggregate dT iiidividiials. calleil for coiiveiiicnce liki' ])artiier- 
 sliips, b.y a conuuoii name, its luembers own its ])i-o])erty, and 
 which has no right of expulsion, except that passed x\]w\\ and agreed 
 to by the members, embodied in its constitution and by-laws. No 
 member can be deprived of his share in tlie property by expulsion, 
 without a specific charge of a violation of the particular rules or 
 laws, creating the offense charged, and iirescriliing an expulsion 
 as the penalty, and without notice and a hearing of such charge. 
 The same principles which are applicable to the expulsion of a mem- 
 ber, are applicable to the expulsion of a subordinate lodge and its 
 members and the forfeiture of its charter by the Grand or Supreme 
 Lodge. If there is no provision in the charter, constitution or l>y- 
 laws of the society, prescribing vicarious service of the charge and 
 hearing thereof, upon its officers, designated to have such jurisdic- 
 tion to revoke the subordinate lodge charter, it can only be acquired 
 by personal service upon the nK'inbcrs ol' the subordinate lodge. 
 
 Grand Grove of the United Order of Druids vs. Garibaldi Grove No. 
 71 et al., Sept. 27. ]900, 130 Cal. 116. 
 
 Rights of Beneficiary — A Mere Expectancy. 
 
 The beneficiary naiin'd in a certificate issued to a member of a 
 fraternal society has no interest or property therein to which the 
 heirs of the beneficiary can succeed, but has only a "mere expectancy 
 to an uncompleted gift." which is revocable at the will of the in- 
 sured, and cannot ripen into a right until his death. Upon the 
 death of the beneficiary ))!'ini- to that of the member, thSs exjiectancy 
 dies with the lienefieiary ; and if no other beneficiary is selected by 
 the member, his heirs will become the beneficiaries, if the by-laws 
 so provide, to the exclusion I'f the heirs of tiu' deceased beneficiary. 
 
 Supreme Council American Legion of Honor vs. Gehrenbeck et al., 
 March ISth. 1899, 124 Cal. 43.
 
 46 FRATERNAL SOCIETY LAW 
 
 Insolvency — Reserve Fund Use. 
 
 Upon the insolvency of a mutual benefit society occurring, which 
 society was organized upon the assessment plan, the reserve fund of 
 $5,000.00 required by the statutes to be held and deposited in trust 
 for the certificate holders of the corporation, and designed as an 
 emergency fund to be used only in ease of insolvency of the society, 
 cannot be used to pay the benefits due while solvent. It must be 
 distributed pro rata among the beneficiaries for whose benefit the 
 certificates were issued, and neither the members of the society, nor 
 its general creditors can .share in its distribution. 
 
 San Francisco Savings Fund vs. Long, Dec. 20th, 1898, 123 Cal. 107. 
 
 While the foregoing case was not a fraternal beneficiary society 
 case, nevertheless it is believed probable that the doctrine announced 
 in this ease may have some application to somewhat similar funds 
 required to be maintained and kept i)y some of the fraternal so- 
 cieties. 
 
 Members Property Rights — Incidental — Forfeiture — Review by 
 Courts of Lodge Trials. 
 
 The interest which a member has in the property of a fraternal 
 society is only incidental to his membership, and will cease upon his 
 ceasing to be a member. If he has forfeited his right of member- 
 ship by reason of his coudiict. tliis interest in the property will 
 not prevent his expulsion, or give to the courts the right to prevent 
 an investigation of the charge, or to determine its sufficiency. In 
 the case at bar, the constitution of the society provided that one of 
 the objects was the propagation of unity, of friendshiii and brotlierly 
 love among its members, and gave to the society the right to expel 
 a member wlio violated any of the principles of tiie society, or 
 offended against the constitution. It was held Unit whellu'r appro- 
 brious language u.sed by a nicinlier lowards his fellows in Ihe society 
 is a violation of the eonstilul inn or i)rineiples, is for the society to 
 determine, and tliat its action in (•x|iellii}g a niendier. after due notice 
 and a I'air (rial, will not lie interl'ereil with li\' the courls.
 
 THE STATE OF CALIFORNIA 47 
 
 Josich. vs. Austrian Benevolent Society of San Jose, Nov. 18th, 1897, 
 119 Cal. 74. 
 
 What Composes the Contract? 
 
 All of the by-laws, rules, and regiilations of a iiiiiliial heiictit asso- 
 ciation become a part of its contract with its members, whether 
 referred to in the contract or not, and all of them must be read 
 together. 
 
 Hass vs. Mutual Relief Ass'n. Sept. 3rc], 1897, 118 Cal. 6. 
 
 Lodge Trials — Court Review. 
 
 The courts will not interfere with the disciplinary power of fra- 
 ternal societies exercised in accordance with their laws, unless there 
 is involved the determination of some civil or property right, and 
 then their jurisdiction is limited to inquiring whether the rules pre- 
 scribed by the society for the determination of the right have been 
 violated. Where a disciplined member has received notice of a hear- 
 ing upon a charge of having violated a rule of the society, and is 
 being tried in accordance with its rules, and has the right of appeal 
 within the society from any adverse decision at the hearing, so long 
 as he has this right of redress witliin the society, he has no right 
 to invoke the aid of the courts. 
 
 Lawson vs. Hewell. Oct. 15th, 1897, 118 Cal. 613. 
 
 The Society's Policy Will Not be Interfered With by Courts. 
 
 The duly chosen and authorized representatives of the members 
 of a society are vested with power and discretion to determine what 
 is for the best interests of the society, and what shall be its internal 
 economy, or whether a change therein is demanded, and the courts 
 have no standard by which to determine the propriety of its rules, 
 and they cannot interfere with questions of policy, doctrine,, or 
 discipline, nor with the discretion of the governing body, unless 
 there is an arbitrary invasion of private rights. 
 
 Lawson vs. Hewell, Oct. lath. 1897, 118 Cal. f>13.
 
 4y FRATERNAL SOCIETY LAW 
 
 After-enacted Laws. 
 
 The eontractural relation between the members and the society is 
 to be determined by a consideration of the entire body of laws gov- 
 erning the society, and is not limited to those existing at the time 
 when the member becomes such ; unless rules have placed a limita- 
 tion upon the power of the society to make any change or amend- 
 ment therein — any amendment or change adopted in accordance with 
 the mode provided by the society therefor is binding upon all the 
 members. 
 
 Lawson vs. Hewell. Oct. 15th, 1897, US Cal. 613. 
 
 After-enacted Laws. — Ultra Vires Contracts. 
 
 At the time of the is.suance of a certificate a by-law of the society 
 provided th^t in addition to the payment of death benefits, disability 
 benefits would be allowed as follows: "A total and permanent dis- 
 ability to perform or direct any kind of labor or business, or upon 
 reaching the age of 70 years, shall entitle a member holding a cer- 
 tificate of endowment, so disabled or aged, to the payment of one- 
 half of the endowment to which he would be entitled at death, pro- 
 vided, however, that in case of a total and permanent disability, 
 satisfactory proofs," etc., must be furnished. "From the date of 
 such payment such member shall only pay pro rata or one-half as 
 much at each assessment as prior thereto. On the death of such 
 member his heirs or assigns shall receive his endowment, less the 
 amount which may have been paid, as provided above." The So- 
 ciety was a Michigan corjioration, incorporated under an act au- 
 thorizing it among other things to "secure a certain sum of money 
 weekl.y or monthly to any member disabled by sickness or through 
 disability," At the time when the INIiehigan act and by-laws of the 
 Society quoted above were in force, the member in question had 
 received a $2,000 certificate payable to his daughter. He made all 
 payments required under it and coiH])lie(l with the rules and regu- 
 lations of the Soeiet.y, and in the year 1905, upon arriving at the 
 age of 70 years, the member claimed payment of the certificate, and 
 upon the Society's refu.sal to pay him, he brought suit. Snb.sequent
 
 THE STATE OF GALIFOKXIA 49 
 
 to the issuiiueo of tlic i.-crlificali.' a by-law was passi'd providnig that 
 instead of j)aying as theretofore upon iirnnaiicnt disability, the 
 aniouiit to be paid sliould be only 10% of the amount of the certifi- 
 cate annually, such payment to he made dnrint;- the existence of per- 
 manent disability. The Society conteiitled that the contract sued 
 upon was ultra vires and void, in that the promise to make payments 
 upon the member attaining the age of 70 years, was not authorized by 
 the act under which the Society was ineorixuatrd. But the Court 
 held to a contrary view, holdiuL; the i-ontraet valid and as to the 
 amended by-laws, held that it was imt n'ti-actixc in terms and only 
 applied to contracts subsequently made. 
 
 Guthrie vs. Supreme Tent of the Maccabees of the World, .July, 1906, 
 
 Court of Appeals of Cal. 
 Re-hearing denied in Supreme Court Sept. IftOO. 87 Pac. 405.
 
 50 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF COLORADO. 
 
 CHAPTER 6. 
 
 The following sections of 
 "An Act relating to an Insurance Department in and for the State 
 of Colorado, and to regulate the insurance companies and fraternal 
 and benevolent orders and societies and others doing business 
 therein, providing penalties for violations thereof, and repealing 
 all Acts and parts of Acts in conflict therewith." (Approved 
 April 1, 1907. In effect July 1, 1907.) ; 
 
 Kelatc to Fraternal Benefit Societies: 
 Definitions. 
 
 Section 1. That in this act,, unless the context otherwise requires : 
 "Company" or "Insurance Compauj^" shall include all corporations, 
 associations, partnerships or individuals engaged as principals iu 
 the insurance business, excepting Fraternal and Benevolent orders 
 aiul societies. "Domestic" designates such companies when in- 
 eorjiorafed \iiid(^r the laws of the State of Colorado. "Foreign." 
 when used without limitations, designates such companies when 
 organized or incorporated under authority other than that of the 
 State of Colorado. 
 
 The word "Commissioner" and the words "Deputy Commis- 
 sioner" as used in this act, shall designate th(> Commissioner of 
 Insurance and tlie Deputy Commissioner of Insurance, respectively. 
 ^Vlierever in the laws of Colorado which are not repealed by this 
 act other titles are used to designate tlie ehief (iffteer and the second 
 officer of the Insurance Department, sut-ii titles sliall be understood
 
 THE STATE OF COLORAUO 51 
 
 as meaning the Commissioner ol' Insurance and the Deputy Commis- 
 sioner of Insurance, as hereinal'ter delineil by this act. 
 
 Prohibiting the Diversion of Funds for Political Purposes. 
 
 Section 47. No insurance company or association, incluiiing fra- 
 ternal beneficiary associations doing business in this State, shall, 
 directly or indirectly, i)ay or use or offer, cou.sent or agree to pay 
 or use any money or property for or in aid of any political party, 
 committee or organization, or for or in aid of any corporation, joint 
 stock or other association organized or'maintained for political i)ur- 
 poses, or for or in aid of any candidate for political office, or for 
 nomination for such office, or for any political purpose whatsoever, 
 or for the reimbursement or indemnification of any j^erson for money 
 or property so used. Any officer, director, stockholder, attorney or 
 agent of any corporation or association which violates any of the 
 provisions of this act, who participates in, aids, abets or advises or 
 consents to any such violation, and any person who solicits or know- 
 ingly receives any money or propei'ty in violation of this act, shall 
 be guilty of a misdemeanor and be punished by imprisonment for 
 not more than one year and a fine of not more than one thousand 
 dollars, and any officer aiding or abetting in any contribution made 
 in violation of this act, shall be liable to the company or association 
 for the amount so contributed. 
 
 No person shall be excused from attending and testifying, or pro- 
 ducing any books, papers or other documents before any court or 
 magistrate, upon any investigation, proceeding or trial, for a viola- 
 tion of any, of the provisions of this act, upon the ground or for the 
 i-eason that the testimony or evidence, documentary or otherwise, 
 required of him may tend to incriminate or degrade him : but no 
 person shall be prosecuted or subjected to any penalty or forfeiture 
 for or on account of any transaction, matter or thing concerning 
 which he may so testify or produce evidence, documentary or other- 
 wise, and no testimony so given or produced shall be used against 
 him n|)(in any criminal investigation or proceeding. 
 
 Fraternal and Benevolent Organizations. 
 
 Section 73. (1) The provisions of this act shall not be con-
 
 52 FRATERNAL SOCIETY LAW 
 
 strued so as to prevent any fraternal, religious or benevolent so- 
 cieties which conduct their business as fraternal societies, under the 
 lodge system, or to other organizations which do not employ paid 
 agents in soliciting business, or to those which limit their certificate- 
 holders to a particular order or fraternity, from issuing indemnity 
 to any person, against loss by death, sickness or accident, of any 
 of its members ; and such society shall not be held amenable under, 
 or governed by. any of the jirovisions of any section of this act per- 
 taining to accident, health or life insurance, except as to rendering 
 to the Commissioner of Insurance an annual statement of the con- 
 dition of said organizations or societies, and paying the Insurance 
 Department a fee of five dollars ($5). 
 
 (2) Any association having a supreme governing or legislative 
 bod.y, and subordinate lodges or branches by whatever name known, 
 into which members shall be elected and initiated or admitted in 
 accordance with its constitution, laws, rules, regulations nnd pre- 
 scribed ritualistic ceremonies, which subordinate lodges or branches 
 shall be required to hold regular or stated meetings at least once 
 in each month. aii<l preserve a roll of the officers present, shall be 
 deemed to be oixM-ating under the lodge system. 
 
 (3) Any benevolent or fraternal society or order, doing business 
 in this State, under the lodge .sj'stem, and incorporated inader the 
 laws ol' anotlier State, which i.ssues certificates of indemnity against 
 loss by death, accident or sickness of any of its members, shall file 
 a copy of its charter or articles of incorporation as required by Sec- 
 tion lT). Chapter 19. General Statutes. (See. 500 :\Iills Anno. Stats, 
 hereof.) 
 
 (4) Every sueli foreign lienevolent ov fraternal societ.y or order 
 shall file with the Secretai-y of State a cei-tificate signed by its pi'esi- 
 (Icnt or head officer, and its secretary, duly acknowledged, desig- 
 nating an agent or agents and Ihcir place of rrsidi'ni'c in this State. 
 ni)on whom process may be served. 
 
 (5) Suits against such corjiorat ions may be instituted at the 
 election of the plaintitf in tlu' County in which lie resides, oi' in the 
 County in wliich the agent resides. 
 
 (fi) .\ny lodge of any such benevdient m- IVaternal society or 
 ordei'. wliich has cuniplied with the provisinns nl' tlii.s act. may bring
 
 THE STATE OF VOLUItADU 53 
 
 ail .ic'tioii on ;iii.y Ixuul niiiniiig to it or ;iii\- of its orticcrs, the same 
 as thouyli such loili^c hail iiccii iiicoriioraliMl iiiiih'r the hiws of this 
 State. 
 
 (7) The fees of the Secretary of State shall he the same as for 
 cor])orations not organized for pecuniary profit. 
 
 (8) It shall be the duty of the presiding officer of any lodge in 
 this State, under any such foreign benevolent or fraternal society or 
 order, to see that the requirements of this act are complied with, 
 and ninety days from its passage shall be allowed for a compliance 
 with its provisions. 
 
 (9) Every contract whereby a casli or other benefit is to accrue 
 to a person, or to persons, named or designated therein, upon the 
 deatli of a pers(ui from cause not accidental, shall be deemed a con- 
 tract of life insurance; and it shall be unlawful for any person, 
 copartnership, association, organization, society, order or fraternity, 
 except life insurance companies or bona fide fraternal, religious or 
 benevolent societies, as defined b.v tliis act, to make or issue such 
 contracts of insurance ; and it shall likewise be unlawful for any fra- 
 ternal, religious or benevolent society, order, association or organiza- 
 tion which provides a death benefit, to make it a condition or pro- 
 vision of any contract or membership certificate issued to it, that 
 the beneficiary is required to patronize any particular undertaking 
 or burial firm, corporation or establishment. xVny violation of am' 
 of tlie jirovisions of this Section, by any person or anj^ agent, officer 
 or representative of any copartnership, organization, association, 
 society or order, shall be a misdemeanor, and for each and every 
 offense shall be punished by a fine not to exceed fifty dollars ($50), 
 or imprisonment in the County .jail for not to exceed three months, 
 or by both such fine and imprisonment. 
 
 Repealing- Section. 
 
 Section 74. * * * * * 
 
 (6) An act entitled, "An act concerning Foreign, Benevolent 
 
 and Fraternal Societies," approved April 3, 1893; * * 
 
 Foreign Corporations Must File Charter. 
 
 Section 500. "Every company incoi-porated under the laws of any
 
 54 FKATERXAL SOCIETY LAW 
 
 foreign State or Kingdom, or of any State or 'J'erritory of the United 
 States beyond the limits of this State, and now or hereafter doing 
 business within this State, shall file in the office of the Secretary of 
 State a copy of their charter of incorporation, or, in ease such com- 
 pany is incorporated by certificate under any general incorporation 
 law, a copy of such certificate and of such general incorporation law, 
 duly certified and authenticated by the proper authority of such 
 foreign State, Kingdom or Territoi'y. " 
 
 Section 500, 1 Mills' Annotated Statutes of 1891, Page 638, and is 
 same as Sec. 25, Chap. 19, Gen'l Stats., referred to in Par. 3, Sec. 
 73 hereof. 
 
 Place of Meeting of Supreme Lodge. 
 
 For the facts in a case which justified a holding of supreme lodge 
 sessions out of the State in which it was incorporated and in any 
 State in which the societ.y was doing business, and had subordinate 
 lodges, see 
 
 Woodmen of the World vs. Woods, April 19th, 1905, 34 Colo. 1. 
 
 After-enacted Laws. 
 
 A certificate of membership was to be forfeited if the member 
 failed to comply with the laws of the society then in existence, and 
 such as might thereafter be adoj^ted. It was held that amendments 
 providing for additional assessments levied to establish an equaliza- 
 tion fund, and providing for payment of assessments monthly in 
 advance, were valid and binding upon the members. 
 
 Woodmen of the World vs. Woods, A))ril 19th, 1905, 34 Colo. 1. 
 
 Hazardous Vocations — Forfeiture. 
 
 Where the by-laws of a society provided that if the members 
 .should engage in any of certain named hazardous occupations, they 
 should pay in addition to llu'ir rcmilni' assessments a hazardous rate 
 while so engaged in such ha/.ardous oceui)ations, and in default of 
 such extra i)ayments, should forfeit their certificates in case of death
 
 THE STATE OF VULUh'ADO 55 
 
 resulting- while engaged in sncli hazardous vocations, it was held, 
 that notwithstanding the fact that the regular payments had been 
 made on the certificate while the member was so engaged in the 
 hazardous employment, but that as no extra or additional payments 
 as required had been made, by reason of such employment, that the 
 cei'tificate was forfeited, and the beneficiary without right of 
 recovery. 
 
 Woodmen of the World vs. Woods, April 19th, 1905, 34 Colo. 1. 
 
 After-enacted Laws — Forfeiture— Estoppel. 
 
 Where a society, after issuing a certificate, amended its laws, pro- 
 viding for an equalization fund and requiring members to pay 
 monthly assessments in advance, instead of upon the post mortem 
 plan as theretofore, and where a member acquiesced in the amend- 
 ment by contributing to the equalization fund, and making the pay- 
 ments monthly in advance, it was held that after the death of the 
 member, a beneficiary cannot claim that the additional assessments 
 were illegally exacted, or improperly applied, or that she is en- 
 titled to have them applied in payment of extra hazardous assess- 
 ments which were in default at the time of the death of the member. 
 It was also held that the retention of the assessments paid for the 
 month succeeding the death of the member, did not estop the society 
 from disputing its lialiility for failure to pay the extra hazardous 
 assessments. 
 
 Woodmen of the World vs. Woods, April 19th, 1905, 34 Colo. 1. 
 
 Change of Beneficiary — Vested Interest. 
 
 In the absence of provisions in the certificate or laws of a society, 
 permitting changes of beneficiaries by the members, without the 
 consent of the beneficiaries, it was held that the beneficiary named 
 in the certificate acquired a vested interest to the extent that a new- 
 designation of a beneficiary could not be made without her consent. 
 
 Hill vs. Groesbeck et al.. Sept. 1900, 29 Colo. IGl.
 
 56 FRATERNAL SOCIETY LAW 
 
 Change of Beneficiary. 
 
 A bj-law authorizins' a nuMiilxn' to change the beneficiary desig- 
 nated in his certificate, without the beneficiary's consent, was held 
 not sufficient to prove the authority to make such change, where it 
 did not appear that such by-law was in force at the time the change 
 was attempted to be made. 
 
 Hill vs. Groesbeck et al.. Sept. 1900, 29 Colo. 161. 
 
 The last two references were to a contract made by the Covenant 
 Mutual Life Association of Illinois, which was probably not a fra- 
 ternal society, but was only a mutual assessment society. 
 
 Marriage — Presumption of Legality — Burden of Proof. 
 
 "Where a certificate designates a beneficiary as wife of the member, 
 the presumption will be indulged in that she is his legal wife, and if 
 this fact is disputed, the burden of proof rests w-ith the one dis- 
 puting it to establish by a preponderance of evidence that she is not 
 his legal wife. See also discussion as to the presumption of the 
 legality of the marriage ceremony not being overcome by proof of 
 former marriage of the parties remaining undissolved by divorce. 
 
 Pittinger vs. Pittinger, January, 1901, 2S Colo. 308. 
 
 Change of Beneficiary — Vested Interest. 
 
 Where certificates were issued in favor of the wife of a member, 
 and were delivered to her, and neither they nor the laws of the 
 society contained any provision permitting change of a beneficiary 
 at the will of the member, the certificates vested in the wife an irre- 
 vocable interest, which she could not be divested of wilhinit her con- 
 sent; and a subsequent by-law of the society authorizing a change 
 of beneficiary at the will of the member, could not affect the 
 wife's vested interest in such certificates, so as to authorize the inem- 
 ber to change the beneficiary without the wife's consent. See also 
 discussion as to the proper construction of a by-law: to the holding
 
 THE STATU OF COLORADO 57 
 
 of tlie court lli;it siicli will not he given retrospective effect, unless 
 it is cleiir tli;it it was so intended. 
 
 Pittinger vs. Pittin,2:er. .January, 1901, 2S Colo. 308. 
 
 The contract referred to in tlie foregoing reference was made be- 
 tween the member and the Locomotive J^ngineer's Life & Accident 
 Association, which was probably only an assessment society, and 
 not a fraternal. 
 
 Vested Interests — Beneficiary. 
 
 Where a certificate was paj'able to the beneficiary if she survived 
 the member. l)nt in case of her death liefore that of the member, 
 then to the heirs or devisees of the member, it was held that the wife 
 of the beneficiary had no such vested interest in the certificate as to 
 cast upon her heirs, or personal representatives, any interest by 
 reason of her death, if it occurred prior to that of the member. 
 
 Anderson vs. Groesbeck et al., .January, 1S99, 26 Colo. 3. 
 
 Heirs-at-law. 
 
 As to \vho are heirs-at-law, and the right of the widow of a mem- 
 ber to be included in said term, see construction of the Colorado 
 statute upon descent and distribution, and also see cases cited of: 
 
 Gauch vs. St. Louis M. L. Ins. Co., S8 111. 251; 
 Benetit Association vs. Sears. 114 111. 102; 
 Mutual Benefit Association vs. Rolfe, 79 Mich. 140. 
 
 The court distinguished these cases from the one at bar. 
 
 Anderson vs. Groesbeck et al.. January, 1S99. 26 Colo. 3. 
 
 Beneficiary — Presumption of Legality. 
 
 The beneficiary named in a certificate is presumed to be properly 
 and legally named, and if the society would avoid liability on the
 
 58 FRATERNAL SOCIETY LAW 
 
 groiTud that the beneficiary is not one allowed by the laws of the 
 society to be so named, the burden is on the society. 
 
 Supreme Lodge Knights of Honor vs. Davis. April, 1S99. 26 Colo. 
 252. 
 
 Officers of Local Lodge — Agency. 
 
 For the facts in a case upon which the court held that the officers 
 of a subordinate lodge Avere agents of the supreme lodge, not- 
 withstanding- an express declaration in the laws of the society to 
 the contrary, see 
 
 Supreme Lodge Knights of Honor vs. Davis. April, 1S99. 26 Colo. 
 
 Tender of Payments — Estoppel. 
 
 AVhere a member under a certificate tendered an assessment which 
 was refused upon the ground that he was no longer a member of the 
 society, he lost no rights by failing to tender subsequent assessments, 
 unless he had been notified that they would be accepted. 
 
 Supreme Lodge Knights of Honor vs. Davis. April, 1S99, 26 Colo. 
 252. 
 
 Proofs of Death — Waiver of. 
 
 The plea that proofs of death have not been furnished cannot be 
 availed of, where it is shown that prior to the member's death the 
 society had declared his certificate null and void, and insisted upon 
 the forfeiture of his rights. 
 
 Supreme Lodge Knights of Honor vs. Davis, April, 1899. 26 Colo. 
 252. 
 
 Fraternals are Mutual Societies. 
 
 A fraternal society, so far as its insurance is concerned, is deemed 
 a mutual life insurance .society, and is sitb.iect to the same general 
 rules of law applicable to mutual life insurance companies.
 
 THE STATE OF COLORADO 59 
 
 Supreme Lodge Knights ol Honor vs. Davis, Ai)ril. 1899, 2fi Colo. 
 252. 
 
 Suit by Wrong- Name, 
 
 The pi-oiiiisc to pay in a certificate was in the roilowing' language: 
 "The .sum of .$3,000 will be paid by the Board of Control of the 
 Eudowiuent Eank Knights of Pythias of the World," to the benefi- 
 ciary named therein. The certificate further showed that it was 
 issued under the direction of, and that the member was bound to 
 full compliance with the laws and rules of the Supreme Lodge 
 Knights of Pythias. The certificate itself was issued by the Presi- 
 dent and Secretary of the Board of Control, and suit was brought 
 against the Endowment Rank of the Order of Knights of Pythias. 
 The defendant answered by that name, alleging that it was not a 
 per.son, natural or artificial, but simply the name of those members 
 of the order who had taken out benefit certificates, and that the cer- 
 tificate itself was issued by the Supreme Lodge Knights of Pythias 
 of the Woi^ld, which was a corporation ; and the answer further 
 showed that the suit should have been brought against such corpora- 
 tion. The court in reaching a conclusion said that the suit might be 
 maintained as brought, and discussed the cases of Kiights of Pyth- 
 ias vs. Kaliuski, 165 U. S. 289 ; Endowment Rank Knights of Pythias 
 vs. Rosenfeld, 92 Tenn. 508 ; Burlington Vol. Relief Co. vs. White, 
 41 Nebr. 547; Cornfield vs. Order of Brith Abraham, 64 Minn. 261, 
 and distinguished these cases. 
 
 Endowment Ranl< of the Ovder Knights of Pythias vs. Powell, April, 
 1898, 25 Colo. 154. 
 
 Change of Beneficiary — Vested Interests. 
 
 Unless the power to change the beneficiary in a certificate issued 
 is expressly given, either by the certificate itself, or by the laws of 
 the society, the beneficiary acquires upon the issuance and delivery 
 of the certificate a vested and irrevocable interest. 
 
 Love vs. Clune, April, 1897, 24 Colo. 237.
 
 60 THE STATE OF COLORADO 
 
 The above case construed a contract issued by the Locomotive 
 Engineers' Mutual Life & Accident Lis. Ass'n. which was declared 
 to be a mutual benefit life society. 
 
 Forfeiture — Reinstatement. 
 
 Where a member was suspended for non-paj^ment of assessments, 
 in order for the beneficiary to recover on the lapsed certificate, it is 
 necessary to show that the member had been reinstated before death, 
 or that he had done all that was required by the laws of the society 
 to entitle him to such reinstatement. In the case at bar, the member 
 had been forfeited for non-payment of assessments, had made appli- 
 cation for reinstatement, was furnished with a statement of the 
 amount due, and blanks to be filled out, all of which he filled out 
 and returned to the society, with the money called for in the state- 
 ment, and also furnished a certificate of good health. The society 
 upon the receipt of such papers, advised the member that iinder the 
 circumstances, a complete physical examination and report would 
 be 7"equired the same as in the ease of an original applicant. The 
 member was then examined by a physician, who discovered that the 
 member was suffering from an organic disease, from which the mem- 
 ber shortly thereafter died. Upon receipt of the medical examina- 
 tion report, the application for reinstatement was refused, and it 
 was held that the society, upon such showing, was not liable to the 
 beneficiary. 
 
 Brun vs. Supreme Council Am. Legion of Honor, Sept., 1900. 15 Colo. 
 App. 538. 
 
 Beneficiary — Divorce of Wife — Legal Heirs. 
 
 Tlu' laws of a society ]irovided that beneficiaries shoukl be mem- 
 bers of the family, or a person or persons related to the member b.v 
 blood, or dependent ujidh him. .iiid Ihat under no circumstances 
 should a certificate be issued to any other person; and they pro- 
 vided further, that in case of the death of all (he beneficiaries named 
 before the death of the nieinbcr occurred, and he lailcd to name 
 another, that the benefit should be paid to tlic member's legal heirs. 
 A cci'tificate was issued. i>aval)l(^ to the nicmlier's wife, from whom
 
 THl'J HTATt: OF VOLORAUO 61 
 
 he was sul>s<'(|iiciilly divorced, but no new desigiuilion of a benefi- 
 ciary was )nade, and npon the member's death, el;iim was made by 
 the heirs-at-law and the divorced wife. 'I'lie court held that the 
 procuring of the divorce w.-is not a, legal equivalent to the death of 
 the beneficiary, so as to vest in the heirs of the member any right 
 to the fund. The court held that the heirs-at-law were not entitled 
 to the fuiul, which had been paid into court by the society under a 
 bill of inlerpleailer. The fund was given to the divorced wife, ami 
 the court in its opinion discussed numert)u.s authorities bearing upon 
 the question pro and con, 
 
 Overhiser vs. Overhiser, Sept., 1S99, 14 Colo. App. 1. 
 
 Warranties — Representations. 
 
 In construing au ap])lieation for a life insurance contract, war- 
 ranties are not favored, are not to be cijeated or extended by con- 
 struction, but mu.st arise, if at all, from the fair interpretation and 
 clear intendment of the words used by the parties, and if there be 
 any doubt as to the character of the statement, it should be held 
 to hiive only the force of a representation. 
 
 Northwestern Life Assurance Co. vs. Tietze, January, 1901, 16 Colo. 
 App. 205. 
 
 Application — Failure to Complete — Refusal. 
 
 Where the preliminary papers to the issuance of a contract of 
 life insurance consisted of three parts, one headed "No. 1 of Appli- 
 cation." etc., containing questions to be projiounded to and answered 
 by the applicant, and to be signed by him, one headed "No. 2 of Ap- 
 plication," etc., also to be signed by the applicant, which contained 
 questions to be propounded by the medical examiner and answered 
 by the applicant, and one headed "No. 3 of Application," etc., to 
 be signed only by the medical examiner, and to constitute his report 
 to the company of the result of his examination, together with his 
 opinion and recommendation as to the risk. It was held that part 3 
 constituted no part of the application for insurance, and where the 
 applicant signed and delivered the first two pai'ts, the application
 
 62 FRATERNAL SOCIETY LAW 
 
 was complete, and the refusal of the applicant to permit the medi- 
 cal examiner to conclude his examination, upon which he was to 
 make his report, would not operate as a withdrawal of the applica- 
 tion, and its refusal by the company was a refusal of his application 
 for insurance. 
 
 Webb et, al. vs. Bankers' Life Insurance Co., April 1st, 1904, 19 Colo. 
 App. 456.
 
 THE STATE OF CONNECTICUT 63 
 
 THE 
 
 STATE OF CONNECTICUT. 
 
 CHAPTER 7. 
 
 General Statutes, Eevisiou of 1902, and Public Acts 1903. 
 
 Secret and Fraternal Societies Defined. 
 
 Section 3582. A secret or fraternal society shall be held to be a 
 corporation, societj', or voluntary association organized and carried 
 on for the sole benefit of its members and their beneficiaries, and not 
 for profit, having a lodge system, with ritualistic form of work and 
 a representative form of government, and making provision for the 
 payment of benefits in case of death, sickness, or physical disability 
 either as a result of disease, accident, or old age, provided the period 
 in life at which payment of physical disability benefits on account 
 of old age commences shall not be under seventy years ; or to provide 
 for the payment upon the expiration of a fixed period of not less than 
 ten years to members, whose beneficiary or distribution period may 
 then expire, of a sum not exceeding the maximum amount named in 
 the beneficiary certificates of its members. The fund from which 
 the payment of such benefits shall be made and the fund from whicli 
 the expenses of such association shall be defrayed shall be derived 
 from assessments collected from its members, the payment of death 
 benefits being made to the heirs, blood relatives, husband or wife, 
 affianced husband or affianced wife of. or to persons dependent upon, 
 the member. Such association shall be exempt from the provisions 
 of the insurance laws, and said laws shall not apply to them unless 
 they are expressly designated therein. 
 
 Provisions Under Which Societies May Continue Business. 
 
 Section 3583. Everv such societv, organized under the laws of
 
 64: FRATERNAL SOCIETY LAW 
 
 any other State or country, now doing business in this State, may 
 continue such business; but such society shall comply with the pro- 
 visions of this chapter in regard to annual reports, shall appoint 
 the insurance commissioner its attorney upon whom process may be 
 served, and shall file with said commissioner a certified copj' of its 
 charter or articles of association, and a copy of its constitution and 
 by-laws certified to by its secretary or some corresponding officer. 
 
 When Foreign Societies May do Business Here. 
 
 Section 3584. Every such society organized under the laws of 
 any other State or country may be admitted to do business in this 
 State when it shall have filed with the insurance commissioner a 
 report giving the information required by Section 3585, a duly cer- 
 tified copy of its charter or articles of association, and a copy of its 
 constitution and by-laws, certified to by its secretary or some cor- 
 responding officei", and M'hen it shall have appointed the insurance 
 ciiiunnssioner its attorney in this State, pursuant to Section 3596; 
 provided that such society shall be shown to be authorized to do 
 business in the State or country in which it is organized. If the laws 
 of such State or country do not provide for such authorization the 
 insurance commissioner, within a reasonable time after application 
 to do business in this State has been made, shall examine into the 
 condition, affairs, and the management of such society at its expense. 
 
 Reports to Commissioner. 
 
 Section 3585. Every such society doing business in this State 
 under the jirovisions of this chapter shall, on or before the first of 
 March in each year, file witli the insurance commissioner a report of 
 its affairs and operations during the year ending on the thirty-first 
 of December next preceding, and of its financial condition on said 
 last-mentioned day. Said report shall set forth in full its assets, 
 the mannei' of their investment, its lia])ilities. and such other infor- 
 mation as the commissioner may desire, and shall be verified under 
 the oath of its president and secretai'y, or by its corresponding officers, 
 and shall lie made upon blank forms to be furni.shed by said com- 
 missioner. Said rejiort shall also conlain answers to the following
 
 TIIIJ HTATE OF COSXECTIVI r 65 
 
 questions: (Ij XuuiIk'I- (iT ciTt iticjitcs issued duriiiL; tlic \-ear. or 
 iueinl)ei-s iuliiiitted? {'!) Aiimunt "T iiideiiiiiily aft'cctcd tliei-ehy? 
 (3) Number of losses or beuefit liabilities incurred' (4) Number 
 of losses or beiictit li;d)ilities paid? (5) Amount received fr(jm 
 each assessment I'nr the year? (6) Total amoiuit i)aid members, 
 beneficiaries, legal representatives, or heirs? (7) Number and kinds 
 of claims for which assessments have been made? (8) Number and 
 kinds of claims compromised or resisted, and brief statement of 
 reasons? (9) Does the society charge annual or other periodical 
 dues or admission fees? (10) How much on each thousand dollars 
 annually or per capita, as the ease may be? (11) Total amount 
 received, from what source and the disposition thereof? (12) Total 
 amount of salaries paid to officers? (13) Does societ.y guarantee 
 in its certificates fixed amounts to be paid regardless of the amount 
 realized from assessments, dues, admission fees, and donations? 
 (14) If so, what is the amount guaranteed and the security of such 
 guaranty? (15) Has the society a reserve fund? (16) If so. how 
 is it created and for what purpose, the amount thei'eof, and how 
 invested? (17) Has the society more than one class? (18) If so, 
 how man.y, and the amount of indemnity in each? (19) Number of 
 beneficiary members in each class? (20) If voluntary so state, and 
 give date of organization ? (21) If organized luider the laws of this 
 State, under what law and at what time, giving chapter, and date of 
 the passage of the act? (22) If organized under the laws of any 
 other State or country, state such fact and the date of organization, 
 giving chapter, and date of the passage of the act? (23) Number 
 of certificates of beneficiary memliership lapsed during the year? 
 (24) Number in force at the beginning and the end of the year: if 
 more than one class, the number in each cla.ss? (25) Name and 
 address of president, secretary, and treasurer, or corresponding 
 officers? The insurance commissioner may make an examination, at 
 the expense of the State, of the books, papei-s. records, and vouchers 
 of such society, and may address any inquiries to such soeiet\' rela- 
 ting to the business contemplated by this chapter, and such society 
 shall jiromptly reply in writing under the oath of its nresident. sec- 
 retary, or treasurer, or of its corresponding officers, to all such 
 inquiries, and shall fortliwith permit such examination to be made.
 
 66 FRATERNAL SOCIETY LAW 
 
 Permit May be Granted by Commissioner — Appeal. 
 
 Section 3586. The insurauce commissioner, upoa application bj' 
 any such society having the right to do business in this State, and 
 upon its compliance with the provisions of this chapter, may issue 
 to it a permit, in writing, to do business in this State, said permit to 
 continue in force until the first of April next following its issue, 
 luiless the same be sooner revoked, for which permit such .society 
 shall pay to the commissioner five dollars; but an appeal may be 
 taken by any such applicant to the superior court from any decision 
 of the commissioner made in pursuance of the discretionary power 
 hereby granted. 
 
 Neglect to File Reports — Penalty — Injunction. 
 
 Section 3587. Any such society neglecting to make the report, or 
 to appoint the insurance commissioner its lawful attorney, as pro- 
 vided in this chapter, shall be excluded from doing business within 
 this State. Tlie insurance eommissionr shall, after failure to make 
 such re])ort, or in case any such society .shall exceed its powers, con- 
 duet its business fraudulently, or fail to comply with any provision of 
 this chapter, at once notify its president, secretary, and treasurer, 
 or its corresponding officers, or any two of them, and give them an 
 opportunity to be heard thereon and to coiifurni to the provisions 
 of this chapter. If said society does not. within len days, conform 
 to said jjrovisions, as re(|iiin'd by the insurance commissioner, lie 
 shall imnuxliately commence an action in the superior court for 
 Halt ford coiuity against such society, to enjoin it from carrying on 
 business, and nu injunction against any such society shall be granted 
 by any court, e.xcejit u|hiii tin" a|iplication of tlie insm'ance coinmis- 
 sioner, Xo society, so enjoined, shall issue new certificates until 
 such report shall be made, or the overt act or violation complained 
 of shall have been corrected, u(u- until the costs of such action be 
 paid by it. If, however, the court shall find that such society was 
 not in default, then the in.surance commissioner shall at once rein- 
 .state such society, and not until such reinstatement shall such society 
 be allowed to issue certificates of meinl)ersliip in this State. Every 
 person acting for such society, or for any subordinate body thereof, 
 within tliis State, after it has been enjoined or debarred from doinc
 
 THE STATE OF CONNECTICUT 67 
 
 business, sluill be Hiipd not nioi'<' tluiii two IiuimIivmI dolhifs, uv be 
 imprisoned not. int)i'e thfUi one year, oi' both. 
 
 Money Due From Society Not Attachable. 
 
 Section 3588. Tlie money or otlier benefit to l)e |)iii(l by any society 
 anthorized to do business under tliis cliapter shall not be liable to at- 
 tachment by trustee or other process, and shall not be seized, taken, 
 appropriated, or applied, under any legal or equitable process, nor 
 by operation of law, to pay any debt or liability of a certificate- 
 holder or any beneficiary named therein. This section shall apply to 
 all fraternal societies legally doing business in this State, including 
 the societies and organizations referred to in Section 3592. 
 
 Employment of Paid Agents. 
 
 Section 3589. No .such society doing business in this State sludl 
 employ paid agents in soliciting or procuring members, except in 
 organizing local branches or lodges. 
 
 False Representation — Penalty. 
 
 Section 3590. Every jjerson who shall knowingly or wilfully make 
 a false or fraudulent statement or representation, in or with refer- 
 ence to any application for membership, or for the purpose of obtain- 
 ing any money or benefit in any such society transacting business 
 under the provisions of this chapter, shall be fined not more than five 
 hiuidred dollars or be imprisoned not more than one year, or both ; 
 and every person who shall wilfully make a false statement of any 
 material fact in a sworn statement as to the death or disability of a 
 certificate-holder in any such society, for the purpose of procuring 
 the payment of a lienefit named in the certificate of such holder, and 
 every person who shall wilfully make a false statement in any veri- 
 fied repoi't or declaration under oath, required or authorized by this 
 chapter, shall be guilty of perjury. 
 
 Acting for Unauthorized Society — Penalty. 
 
 Section 3591. Every person, acting for any such society within
 
 (58 FRATERNAL SOCIETY LAW 
 
 this State, unless such society is authorized to do business in this 
 State, shall be fined not more than five hundred dollars or be im- 
 prisoned not more than one year, or both. 
 
 Masons, Odd Fellows, and Other Societies. 
 
 Section 3592. This chapter shall not apply to the societies of 
 Masons or Odd Fellows located in this State, nor to associations com- 
 posed exclusively of their respective members, nor to fraternal socie- 
 ties whose sn])ordinate or national bodies pay a death benefit of not 
 more than one hundred dollars and a weekly side l)enefit of not more 
 than eight dollars, nor to any organization conducted solely for 
 benevolent and charitable purposes whose members are employed 
 by one corporation or institution or by more than one similar corpor- 
 ation or institution or whose membership is confined to one trade, 
 art, or profession, except as specified in Section 3588 : Provided, that 
 any society of JIasons or Odd Fellows located in this State, or any 
 association composed exclusively of Masons or Odd Fellows, may 
 make application to the insurance commissioner to be included 
 within the provisions of this chapter, as provided in Section 3586, 
 juid when any such society or association has once come under the 
 supervision of the insurance commissioner, it ^hall remain under his 
 supervision and control so long as it shall eontimie to do business 
 in this State. 
 
 Insurance Commissioner to Publish Reports. 
 
 Section 3593. The insurance coniniissioucf shall publish the an- 
 nual reports of such societies, or the substance thereof, in his report, 
 under a separate part entitled "Secret or Fraternal Societies." 
 
 Fees. 
 
 Section 3594. Every society to which this chapter is apjilicable 
 shall pay the I'ullowing fees to tlii' insurance coniniisioner : for tiling 
 a certified copy of its charter or articles of association, five dollai-s; 
 for filing the annual report, five dollars: fm- filing any additional 
 paper required by law, twenty-five cents, 'i'hc insui-ance commissioner 
 shall al.so collect the following fees: for every ei>rtificate of organiza-
 
 THE f(TATE OF CONNECTICUT 6& 
 
 tioii 111- ('(iiii|ili;iiiC'P, one dolhir; for eMch certified cA)py of jtcrinit. one 
 (lolliir; ;iii(l I'or each certified co])y of .iiiiiii;!! repoi't, five dollMrs, If 
 any State shall impose upon secret or fraternal societies fees greater 
 than are fixed by this chapter the insurance commissioner shall 
 collect from every secret or fraternal society, incorporated by or 
 orji'anized under tlu' laws of such other Stale and admitted to trans- 
 act business in this >State, the same fees as are imposed upon similar 
 societies and organizations by such other State. 
 
 Transaction of Business Defined in This Chapter. 
 
 Section ^.ID.j. The transaction of tin- Inisiness defined in this 
 elmpter by any company, corporation, association, partnership, or 
 by any individual or individuals, other than as herein provided, is 
 forbidden. 
 
 Good Standing Defined. 
 
 The l)y-laws of a society defined a member in good financial stand- 
 ing, as one who did not owe the society for fees, diies, or assess- 
 ments, or anything else that might be a charge against him as dues, 
 an amount eipud to six month's dues: and further made the member's 
 ledger account evidence of such standing. In a suit b.v the benefi- 
 ciary on a deceased member's certificate, it was shown that the 
 actual indebtedness of the member to the society, as per the ledger 
 account was incurred thi'ough the breach of his agreement in relation 
 to the distribution of lottery tickets, issued in connection with a 
 fair given by the society. It was held that this indebtedness might 
 be added to his impaid dues in determining his financial standing 
 undei' said by-biAvs. 
 
 Kelly vs. Court Phelan Foresters of America, June 9th. 1905, 78 
 Conn. 40. 
 
 Resort to Civil Courts. 
 
 A law of a society providing that the member shall not resort to 
 the civil courts for redress of an alleged injury until he has ex- 
 hausted every nu'ans of appeal in the ordi'r. is not void as an attempt
 
 70 FRATERNAL SOCIETY LAW 
 
 to oust the courts of their jurisdiction. Compliance with sucli li\ -law- 
 is essential to enable the member to restrain the enforcement of the 
 order of the society suspending him, or to recover damages therefor, 
 notwithstanding such order was based upon a hearing before an 
 illegally constituted committee. 
 
 McGuinness vs. Court Elm City Foresters of A., June 9th, 1905, 78 
 Conn. 43. 
 
 After-enacted Laws, 
 
 A meiiiher was admitted to a society untler an express agreement 
 that lu^ was to forfeit his membership if he engaged in any occupa- 
 tion which was then, or might thereafter be deemed extra hazardous. 
 Subsequently the society passed an amendment increasing the list of 
 extra hazardous occupations, and including in such list that of 
 switchman. The amendment was not in terms retroactive. The mem- 
 ber was killed while following the vocation of switchman. The 
 court held that the amendment was reasonable, and that the member 
 was bound thereby, 
 
 Gilniore vs. Kniglus of Columbus. Jan. 14th, 1904, 77 Conn. 58. 
 
 Conditions Precedent to Liability — Expulsion — Election by Member. 
 
 One of the laws of a society provided that the death benefits of a 
 member dying from certain specified diseases within 18:^ days from 
 the date of liis admission should be $5.00 only, in that of other cases 
 it should be .$500,00, and that a member might be expelled for non- 
 I)ayiiiciit nf dues, and that no meinbei- should be reinstated, except 
 ui>on making regular formal applic;ition. same as was required of 
 new members. It was held that the contract of admission involved 
 an agreement on the \);\v\ of the member to jiay the dues and abide 
 by the laws as a condition i)i"ecedent to the society being bound to 
 pay death benefits, and that the same agreement made originally, 
 arose upon the member being reinstated. Tt was further held that 
 the reinstated member, having died thereafter of a specified disease, 
 within the 183 days after his reinstatement, that his beneficiary was 
 entitled to the death benefit of $5.00 onlv. Tt was furth(>r held in
 
 THE STATE OF CONNECTICUT 71 
 
 this case, that though the society did not observe its own hiws liter- 
 ally when expelling a member, nevertheless, as the member elected 
 to treat the action taken as effective, and had been exempted from 
 the ])ayment of dues during the term of his susin'iisinn. there had 
 been a waiver of tlie literal comiilianee on the jiart of the societ.y. 
 
 O'Brien vs. Brotherhood of The Union, July 24th, 1903, 76 Conn, 52. 
 
 Construction of Exempting Statute — Attachment. 
 
 The supreme court in passing upon Chapter 25,') of the Public 
 Acts of 181)."), as amended in 1897, and again in 1899, wherein it was 
 provided that <dl benefits due from a fraternal society, organized 
 and carried on for the sole benefit of its members and their benefi- 
 ciaries, and not for profit, and which had a lodge system, with a 
 ritualistic form of work, should be exempt from attachment, held 
 that lienefits due from a mutual aid society, which had no ritual of 
 its own, though one of the requisites of membership in such society 
 was that applicants should be members of other societies that did 
 have such a ritual, were not exempt from attachment. 
 
 Miles & Co. vs. Odd Fellows Mut. Aid Ass'n, July 24th, 1903, 76 
 Conn. 132. 
 
 After-enacted Laws — Beneficiary. 
 
 Every member of a society agreed on becoming such to conform 
 to the by-laws "now in force, or which hereafter may be adopted," 
 It was held that the by-laws as amended and in force at the time of 
 the member's death, and not those existing at the date of his admis- 
 sion, determined who was his beneficiary and the rights of such. 
 
 Masonic Mutual Benefit Association vs. Severson. May 3rd. 1899. 71 
 Conn. 719. 
 
 Beneficiary — No Vested Interests. 
 
 A beneficiary named in a certificate has no vested interest in the 
 same, where the certificate provides that it is not to be paid until 
 the member's death. Up to that time, the member may, if permitted
 
 7-2 FRATERNAL SOCIETY LAW 
 
 by tlie hnvs of tlio society, change the beneficiary at -will, although 
 the latter may have advanced the money to pay the assessments on 
 the certificate, or ma.v have made the payments outright. 
 
 Masonic Mutual Benefit Ass'n vs. Tolles. June 1st. 1S98. 70 Conn. 
 537. 
 
 Laws at Date of Death Govern — Beneficiary. 
 
 The charter and laws of a society provided that death benefits 
 should be paid to such person or persons belonging to the immediate 
 family of the member, as he might designate, and that in default of 
 any designation, the funds should go to those members of such 
 family, or to relatives who were the member's heirs-at-law. It was 
 held that this provision had reference to conditions existing at the 
 date of the member's death, and not to the day of his admission. 
 
 Knights of Colunibus vs. Rowe. June 1st, 1S9S, 70 Conn. 545. 
 
 Member 's ' ' Family ' ' — Beneficiary. 
 
 An unmarried man. living in his father '.s family, became a mem- 
 ber of a .society, and procured a certificate therein, issued to him. 
 payable to his father as beneficiary. Subsequently the member mar- 
 ried, and lived with his wife and child, born to him. and away from 
 his father's family. While so living, he died without having changed 
 the original designation of his father as his beneficiary. It was held 
 that the wife ant! child constituted the member's immediate family, 
 and were entitled to the fund. Tlii' above holding was in a case 
 whi'i-i' llu' society filed a liill of interpleader. 
 
 Knights of CoUimljus vs. Rowe. June 1st. 1.S9S, 70 Conn. 545. 
 
 Powers of a Voluntary Society. 
 
 It is williiii ihc power of a voluntary benevolent society to give a 
 promis.sory note or hill of exchange for the jiuriiose of eompromis- 
 ing a suit ])ending against it.
 
 THE STATE OF COA'NECTICUT 73 
 
 Couit Haiuoiiy Aiiitiican Order ol' Foresters vs. Court Abraham 
 Lincoln American Order of Foresters, June 17tli. 1S98, TU Conn. 
 634, 
 
 Validity of Statute of Limitation. 
 
 For a ca.se disc'u.ssiiii;' anil uplinldin^ the pnivisiim of a eonti'act 
 wliereia it was provided that no suit sliouki be brought upon it, 
 except within one year from the decease of tlie insured, see the fol- 
 lowing well considered case. 
 
 Vincent vs. Mnt\ial Reserve Fund Life Ass'n, IVIay, 1904, 74 Conn. 
 684.
 
 74 FflATERXAL SOCIETY LAW 
 
 THE 
 
 STATE OF DELAWARE. 
 
 CHAPTER 8. 
 
 "An Act to Re-enact and Revise the Insurance Laws of Delaware, 
 in order to make them conform with the Requirements of the 
 Amended Constitution and of the General Corporation Law." 
 
 Chapter 99, Volume 22, as Aiiieiuled. 1901. 
 
 The following are the only sections of the act which concern Fra- 
 ternal Benefit Societies. 
 
 Section 2. The following shall be tlie duties of the Insurance 
 Commissioner : 
 
 First. To see tliat all laws of this State respecting insurance 
 com])anies are faithfully executed, and to require from all companies 
 not chartered by the laws of this State, transacting the business of 
 insurance in this State, a certified co])y of their cliarter or declara- 
 tion of organization, a certificate of the name and residence of an 
 agent or agents of said compaiiy, resident in this State, upon whom 
 service of process against said com|)any may lie made, both of 
 which shall be filed in his office. 
 
 Second. To examine the affairs and condition of any company 
 doing the liiisincss oi' insurance in this State, chartered by the laws 
 of this Stale, wiienever it shall be tlemanded by the written applica- 
 tion <d' not less than five i)oliey-holders insured in such company to 
 the anioiint of ten thousand dollars ($10,000), and to {)ublish the 
 result of such examination in one or more newspapers of this State, 
 whenever he deems it for the interest of the ])ublic so to do. and for 
 the purjiose of su<di examinations lu' sliall have |)ower to recjuire free 
 access to all books .-hkI papers ol' any insni'aiicc company, oi- the
 
 THE STATE OF DELAWAItl-: 75 
 
 agents theri'of, doing business witiiin tins Stiile. and 1i> cXiiiiiiiii' any 
 officer, agent or employee of. such coniiJany. undei' oalli »r at'firina- 
 tion, which he is hereby empowered to administer, relative to the 
 affairs and condition of any company; and further, he may, at any 
 time, require from any eomjjany doing the business, of insurance, 
 or anj' of its officers or agents, statements on such points as he deems 
 necessar^y and proper to elicit a full and fair exhibit of its business 
 and standing, upon the application of not less than five policy- 
 holders of any company, to the amount of ten thousand dollars. 
 The Insurance Commissioner may employ exjuTt assistance in ex- 
 amining the affairs of such company, and charge the cost thereof 
 in the expenses to be paid by the company. 
 
 Third. Whenever the Insurance Commissioner sliali have rea.son 
 to believe that any insurance company which has been heretofore 
 incorporated or chartered, or shall hereafter be chartered or incor- 
 porated luuler any law of this State, is insolvent, or fraudulently 
 conducted, or that its assets are not sufticient f(U' carrying on the 
 business of the same, or that it has failed to coyiply with the pro- 
 visions of this Act, or that its condition is such as to render its 
 further proceeding hazardous to its policy-holders oi' to the public; 
 notwithstanding any special provision ui-anted in its charter or 
 incorporation, the Insurance Commisioner shall revoke its certificate 
 of authority to do business, and shall eomniunicate the fact to the 
 Attorney-General, whose duty it shall then become to file a bill or 
 petition in Chancery, in the name of the State, setting forth the 
 facts, and thereupon to apply to the Court of Chancery of any county 
 in which said company may be doing business, or to the Chancellor 
 in vacation, for an order refpiiring said c(unpaiiy to show cause why 
 their business should not be closed. In a jiroper ease made, the said 
 Court, or the Chancellor in vacation, shall have power to appoint a 
 receiver to take charge of, settle and close up the aft'airs of said 
 company under the direction of the said court, to enjoin it from 
 doing business, and to make such lU'der and (l(>cree as may be neces- 
 sary or proper. 
 
 Fourth. To furnish t(» the companies re(|uired by this Act to 
 report to him, all necessary blank forms for the statements required, 
 and to publish annually, on or before the first day of .Tuly, (nice a
 
 76 FRATERXAL SOCIETY LAW 
 
 week for three weeks, in ;it leiist two newspMpers <ii' tliis State, the 
 names of the insurance companies that liave tiU'd st;itenients ajiree- 
 ably to the provisions of this Act. and to whom certiticates of author- 
 ity have been issued ; and he shall also state when and where each 
 company was incorporated, and its aggregate assets and lialiilities. 
 and its receipts and expenditures for the preceding year; the cost of 
 such publication to be borne equally by said companies, and the 
 amount to be paid by each shall be deposited with the Insurance 
 Commissioner at the time the annual statement is furnished as herein 
 provided. * «#*?*#* 
 
 Section -i. Every insurance i-ompany doing the business of insur- 
 ance within this State, shall, annually on or before the first day of 
 March, deliver to the Insurance Commissioner a full detailed state- 
 ment of the condition and business of such comi)any for the year 
 ending on the j)revious twenty-first day of l)ecenii)er. which state- 
 ment shall be verified l)y llie oatli or affirmation of the president or 
 vice-president and secretai'y or other officer. Provided, that of the 
 statement of the United States branch of any foreign company cer- 
 tification b> the manager of said branch in the United States shall 
 be sufficient. Said statement shall be on blanks jirejiared and fur- 
 nished by the Insurance Commissioner for that i>urpose, and shall 
 contain the name of the company, where located, when and where 
 incorporated or organized, the amount of paid np capital, with a 
 detailed statement of all assets, showing the amount of ca.sh on hand, 
 in bank or in the hands of agents; the amoiuit and actuiil value of 
 real estate owned by the company, and the amount of incumbrances 
 thereon: the number of Government, State and Municipal ;ind other 
 bonds owned, and the market and jijir value of the same: the inimber 
 of shares of stock of every kind owned, and the market and ])ar 
 value of the same: the amount loaned on bond and mortgage, with 
 the actual cash \aluc of llir propri-t.\- mortgagi'd. and whether sucb 
 pro])ert\' is sub.ject 1o any other lien or liens paramount to sueh 
 mortgage, and the auiiregate amount of sueh paramount liens: the 
 amount loaned on all olhei- seeiiril ies. slaliuL: Ihe name and kiinl of 
 secui-ities. ;ind Ihe aniounl loaned on each: also statiiii: the lialiilit.v 
 and indebtedness of such ecunpany : the amount of losses against the 
 company adjusted and unpaid. Ihe anKUint in |)rocess of adjustment 
 or in susp<Mise. ineludinL;- all reported ami supposed losses, losses
 
 THE l^TATE OF DELAWARE. 77 
 
 resisted, iiiclmliny intei'est iind dtlicr expenses tlu'iedii ; mikI all 
 other liabilities, claims ;nid deiiiMiids whatsoever against the com- • 
 pany, and all other information necessary and proper to full\- set 
 forth a full and fair exhibit of its business and standing. 
 
 Section 6. Kvei'v corporation, company, association, society, part- 
 nership or hody of auj' kind, chartered, incorporated, organized or 
 associated together in this State, or in any State other than this, 
 doing business in this State, and issuing or i)roposing to issue any 
 policy, or certificate, or instrument of any kind by which any 
 sum or assessment or luMiefit of any kind is promised, shall be 
 deemed to be an insurance company within the meaning and 
 subject to the provisions of this Act, and every such company, or any 
 coni])any chartei'cd, incorporated or organized either under the laws 
 of this or any otiier State for the insurance of lives upon the assess- 
 ment or beneficial i)lan. and desiring to do l)usiness in this State, 
 shall eom])ly with all of the requirements of this Act respecting 
 mutual companies incorporated under the laws of this State, and 
 life insurance compaiues not incorporated under the laws of this 
 State, and then the Insurance Commissioner shall issue to it his cer- 
 tificate of authority; provided, that every such company shall not 
 be required to maintain a cash reserve, nor shall policies issued by 
 it be subject to the provisions of the fifth and sixth clauses of the 
 second section of this Act; and provided, also, that any benevolent, 
 charitable or fraternal organization or association duly organized, 
 or existing, or which may hereafter be duly organized, doing busi- 
 ness in this State, which engages or employs agents or solicitors in 
 collecting premiums or assessments other than at their meeting or 
 lodge room, shall be and hereby is required only to submit to the 
 Insurance Commissioner a statement, such as is specified in Section 
 3 of this Act, and pay a fee of ten dollars for the filing of such 
 annual statement. If from the statement sid)mitted it shall appear 
 that the affairs of the organization or association are in such a con- 
 dition that its further operation would be a-danger to the public, the 
 Insurance Commissioner shall proceed against it in the manner pro- 
 vided fi>r in Section 2. third clause of this Act; provided further, 
 however, that this Act shall not in any way be constriunl to ai)ply 
 to the Railroatl Relief AsscM'iation. or 1o secret cliarilabh^ or sei'ret 
 beneficial organizations.
 
 78 FRATERXAL SOCIETY LAW 
 
 t 
 
 Section 7. No insurance company or corporation shall be engaged 
 ,in, prosecute or transact any insurance business within the limits 
 of this State, without first having obtained authority therefor, agree- 
 ablj' to the provisions of this Act. and every such company, not 
 incorporated under the laws of this State, shall, before doing business 
 as aforesaid, deliver to the Insurance Commissioner a certified copy 
 of its charter or declaration of organization, and also a certificate, 
 in such form as may be provided by the Commissioner, of the name 
 and residence of some person or agent within this State upon whom 
 service of process may be made, and all processes against such com- 
 pany issued out of the courts of this State, may then and thereafter 
 be served upon such person or agent so designated, and no person or 
 persons shall procure or solicit any citizen or resident of this State 
 to take out a ])olicy of insurance in any insurance company or 
 corporation not authorized to transact business within this State. 
 or act within this State as agent for such company or corporation 
 (or any person or association of individuals doing a like business and 
 not authorized to transact business within this State) or otherwise 
 in any manner, directly or indirectly, aid in the transaction of the 
 business of or in the collection of any premiums, dues or assess- 
 ments by or for such company, corporation, person or association of 
 individuals, except in the prosecution or defense of suits at law, 
 under the penalty upon conviction of being a misdemeanor and sub- 
 ject to a fine or imprisonment, or both, at the discretion of the court. 
 It shall not be lawful for any person to act within this State as 
 agent or otherwise in receiving or procuring applications, or in any 
 manner, directly or indirectl.v. to aid in transacting the business of 
 insurance permitted by this Act without first obtaining from the 
 Insurance Commissioner a State license under the penalty upon con- 
 viction of being a misdemeanor and subject to a fine or imprison- 
 ment, or both, at the discretioTi of the court. 
 
 Section 8. The Insurance Commissioner shall have a seal of office 
 surrounded by the words "Insurance Commissioner of the State of 
 Delaware." All certificates and other official papers shall bo accom- 
 panied with an impression of this seal. An.v instrument cari'fully 
 executed by the Insurance Commissioner of this State, and authenti- 
 cated by his seal of office, sball he received in cvidein'c in the courts 
 of this State, and copies of ])a])ers ami records i)i his office, so authen-
 
 Tin: STATE OF DKLAWAllE. 79 
 
 tieatcd, shall lie riM/civt'd as cvidcncr witli tho same pffcct as the 
 originals. 
 
 Section !). If any ixm'sdh iiiakin>;- an oatli or affirmation rcqnircd 
 by this Act, or if any pei'son being or assuming to be an officer or 
 agent of any insurance company incorporated by this State making 
 any oath or affirmation required by the insurance laws of any other 
 State, shall swear falsely, or make a false affirmation, he shall be 
 guilty of the crime of perjury and shall be subject to the punish- 
 ment prescribed for jierjury under the laws of this State. Any 
 company or persons otherwise violating this Act shall be guilty of a 
 misdemeanor, and upon conviction thereof, by indictment, shall be 
 subject to imprisonment not exceeding one year, or a fine not ex- 
 ceeding one thousand dollars, or both, at the discretion of the court, 
 and the Insurance Commissioner shall suspend any company so con- 
 victed, or whose agent is so convicted, from doing iMisiness within 
 this State, until the fine is paid. 
 
 Section 10. There shall be paid to the Insurance Connnissiouer by 
 every company to which this Act applies the following fees: For 
 filing the declaration or certified cop.y of charter, ten dollars: for 
 filing the annual statement of companies authorized to do business 
 in the State, ten dollars ; for the annual publication of the condition 
 of the companies authorized to transact business in the State, b.v 
 three or more newspapers, a sum to be estimated by the Commis- 
 sioner to cover cost of publication ; for issuing certificate of author- 
 ity to every foreign insurance company, twenty-five dollars, and the 
 fee to the Commissioner for issuing the same, two dollars; agent's 
 certificate of authority to represent each company, two dollars; for 
 issuing a State license to a foreign life or foreign fire insurance 
 agent, or a foreign insurance agent other than life or fire, five dollars, 
 and the fee to the Connnissioner for issuing the same for each license, 
 fifty cents, and one and one-half per centum on the gross amount of 
 premiums received and assessments collected bj' each and every 
 foreign insurance company ; and for every certified copy of each cer- 
 tificate of authority to foreign insurance companies, two dollars ; for 
 every copy of any paper filed in his office, twenty cents per folio of 
 one hundred words, and for affixing the official seal to stich copy 
 and certifviug the same, the sum of one dollar; for official examina- 
 tion of companies under this Act, the actual expenses incurred : the
 
 80 FRATERNAL SOCIETY LAW 
 
 said lusurance Commissioner shall receive a sum not exceeding 
 fifteen hundred dollars per annum, which sum, together with the 
 sum of six hundred dollars to be paid as an annual salary to his 
 clerk, which said clerk shall be appointed by the Insurance Commis- 
 sioner, shall be paid quarterly by the State Treasurer, in the manner 
 prescribed for the payment of the salaries of other State officers, and 
 shall be a full compensation for all the duties imposed upon him by 
 the various laws heretofore and hereby and hereafter to be enacted, 
 unless otherwise provided, including the superintending of the publi- 
 cation of his reports. He shall hand over the fees collected by him 
 for the use of the State to the State Treasurer in the months of Maj' 
 and December. The Insurance Commissioner shall receive no other 
 compensation from the State, except the necessary expenses of his 
 office, such as postage, printing, stationery, etc., which shall be 
 allowed by the General Assembly. 
 
 Section 15. Any insurance company or association wilfully viola- 
 ting or failing- to observe and comply with any of the provisions of 
 this Act. appliealile thereto, shall be sub.iect to miuI liable to pay a 
 penalty of five liundred dollars for each violation thereof, and for 
 each failure to observe and comply with an\: provisions of this Act : 
 such penalty may be collected and recovered in an action brought in 
 the name of the State, in any court having .iurisdiction thereof. No 
 insurance company or association, whose authority to transact busi- 
 ness in this State .shall have been so revoked, shall be again author- 
 ized or permitted to transact business herein until it shall have paid 
 the aMio'.iiit of luiy such judgmcnl. and shall have filed in the office 
 of the Insvu'ance Commissioner a certificate, signed by its president 
 or oilier idiief officer, to the effect that the terms and obligations of 
 the ]irovisions of this Act are accepted by it as a part of the con- 
 ditions of its right and Miitlmrily to transact business in this State. 
 
 The following' jtrovisions of 
 
 "An Act to require all Insurance Companies organized and existing' 
 under the laws of other States and Foreign Countries and doing 
 business in Delaware, to appoint the Insurance Commissioner of 
 Delaware their attorney to accept service of legal process in 
 Delaware." Approved April 13, 1905,
 
 THE STATE OF DELAWARE. 81 
 
 also scciii 1() ;i|)j)ly 1(i IViili'iMi.'il licnrlil sdcirtii's: 
 
 Seetidu 1. Xo iiisiii'.-iiu'i' I'dnipiiiiy. cdriiniMl imi. or iissociMtioii 
 organized under tlic l;iws of ;iiiy olhcr StMtc, or any i'lU'ciyn eonntry, 
 shall directly or indirectly issue policies, take i-isks. ox ti-ansact busi- 
 ness in this State, until i1 shall have tirsl appointed in writing the 
 Insurance Commissioner of this .Stiite to lie its attoi-ney in this State, 
 upon whom all lawful process, in any action or jiroceeding against 
 it, may be served with the same effect as if the company, cori)ora- 
 tion, or association existed in this State. Said power of attorney 
 shall stii)ulate and agree on the part of the company, corporation, 
 or association, that any lawful process against the same which is 
 served on said attorney shall be of the same legal force and validit.v 
 as if served on the company, corporation, or association, and that 
 the authority shall continue in force so long as any certificate of 
 membership, policy, or liability remains outstanding against the com 
 jiany, corporation, or association, in this State, A certificate of such 
 appointment, didy certified and authenticated, shall be filed in the 
 office of the Insiirance Commissioner, and copies cei'tified by him 
 sliall be sufificient evidence. Service ujion such attorne\- shall be 
 sufficient u])on the principal. 
 
 Section '1. Whenever lawful jirocess against an insurance com- 
 pany, corporation, or association, shall be served upon the Insurance 
 Commissioner, he shall forthwith mail a copy of such process to the 
 secretary of the company, or in the case of companies of foreign 
 countries, to the I'esident manager, if any. in this country. 
 
 Section. '■\. Whenever service of process on an insurance com- 
 pany ma>' be made, by law, on the Insurance Commissioner of this 
 State, such Commissioner may from time to time designate some per- 
 son in his office upon whom, in his absence, service of snch process 
 may be made; and such service shall be of the same force and effect 
 as though made on the Commissioner pei-sonally. 
 
 "An Act regulating- Life Insurance Companies and prohibiting the 
 Diversion of Funds for Political Purposes." Approved March 5, 
 1907. 
 
 Section 1. No insurance company or association including fra- 
 ternal lieneficiarx' ass<iciations. doing business in this State, shall
 
 }j2 FRATJiKXAL SOCIETY LAW 
 
 directly or indirectl.v, pay or use or offer, consent or agree to pay 
 or nse any money or property for or in aid of any political party, 
 committee or organization, or for or in aid of any corporation, joint 
 stock or other association organized or maintained for political 
 purposes, or for or in aid of any candidate for political office, or 
 for nomination for such office, or for any political purpose what- 
 so-ever, or for the reimbursement or indemniticatiou of any person 
 for money or property so used. Any officer, director, stockholder, 
 attorney or agent of any corporation or association which violates 
 any of the provisions of this Act. who participates in, aids, abets, 
 or advises or consents to any such violation, and any person who 
 solicits or knowingly receives money or property in violation of this 
 act. shall be guilt.v of a misdemeanor and be punished by imprison- 
 ment for not more than one year and a fine of not more than one 
 thousand dollars ($1000). and any officer aiding <ir abetting in 
 any contribution made in violation of this act, shall be liable to 
 the company or association for the amount so contributed. No 
 jierson shall he excused from attending and testifying, or producing 
 any books, papers or other documents before any court or magis- 
 trate, upon an3' investigation, proceeding or trial, for a violation 
 of any of the provisions of this act, upon the ground or for the 
 reason that the testimony or evidence, documentary or otherwise, 
 required of him may tend to incriminate or degrade him; but no 
 person shall be prosecuted or sub.iected to any penalty or forfeiture 
 for or on account of any transaction, matter or thing concerning 
 which he may testify or produce evidence, documentary or other- 
 wise, and no testimony so given or produced shall be used against 
 him upon any criminal investigation or proceeding. 
 
 Juror Member of Society in Suit. 
 
 The fact that a .juror is a member of the Independent Oriler of 
 Odd Fellows does not disqualify him from sitting in a ease where 
 a subordinate lodge of such order is a part.v to the suit, such dis- 
 qualification to sit being confineil to iiicml)ers of the particular lodge 
 in llir suit. 
 
 Di-laware Lodgp No. • . I. O. O. V. vs. Allinon. Dec 15tli. 1897. 
 
 1 Pennewill's Del. Rep. 160.
 
 THE STATE OF DELAM'ARE. 83 
 
 Resort to Civil Courts. 
 
 Ill Mil iic'tidii n-iiiiiist ;i siilxirdiiKite lodge for sick benefits, the 
 constitution and by-laws of tiie soeii'ly constitnte the contraet tic- 
 tween the parties, and where these laws iirovide that the right of a 
 member to bi>iiefits shall be aseerfaiiied in a particular mode, that 
 mode must be pursued befori' the member can enforce his claim in 
 the {t<Mirts. 
 
 Delaware Lodge No. , I. O. O. F. vs. Allmon, Dec. 15th, 1S97, 
 
 1 Pennewill's Del. Rep. IGO. 
 
 Statute Not Retroactive — Beneficiaries. 
 
 A certificate was issued to a member payable on his death "to 
 such person or pei-sons" as he might name on the records of the 
 conclave, or on the face of his certificate direct the same to be paid. 
 On tlie date when the certificate was received, the member indorsed 
 thereon that the benefits named in llie certificate should be paid to 
 one Emmons, who was at that time a creditor of the member. The 
 member died in 1905, without having changed the name of the bene- 
 ficiary. This certificate was issued in 1887, and in 1889 the society 
 amended its laws specifically providing that beneficiaries should be- 
 long to certain classes, namel.v, "to the member's father, mother, 
 wife, children, grand-childreu, grand parents, brothers, or sisters, 
 or any or as many of them as the member shall desire and specifv," 
 and also included dependents. It was conceded in the case that at 
 the time when the certificate was issued Emmons was a proper bene- 
 ficiar.v under the laws of the societ.v as they then stood, and it was 
 also conceded that the member had notice of the change of the laws 
 of the society, and was requested to surrender and change his cer- 
 tificate, which he neglected or refused to do. The sole question be- 
 fore the court for determination was whether the amended laws of 
 1889 of the society and the statute law of the State of ^Maryland, 
 adopted in 1894, of which State the society was a citizen, made the 
 designation' of Emmons, the creditor, void. The court reviewed 
 various authorities, and concluded its opinion with the following: 
 "Inasmuch, tlierefore, as Eubanks named ICmmons as beneficiary in 
 1887, rightfullv under the law as it then stood, and died in 1905.
 
 84 FRATERNAL SOCIETY LAW 
 
 without having chauged such beneficiary, it seems but fair that 
 upon the death of Eubanks, Einmons became entitled to the bene- 
 ficial fund as neither the change in the by-laws of the order, nor of 
 the laws of the State of Maryland were retroactive in efi'ect. " 
 
 Emmons vs. Supreme Conclave Improved Order of Heptasophs, June, 
 1906, Superior Court of Delaware; 63 Atl. p. 871.
 
 THE nit^rnrcT of roLT-yniA «5 
 
 THE 
 
 DISTRICT OF COLUMBIA. 
 
 CHAPTER 9. 
 
 The Congress of the United St;ites has enacted for the District 
 of Columbia an elaborate Insurance Code and so much of it as re- 
 lates to Fraternal Benefit Societies follows : 
 
 Defined. 
 
 Section 749. A fraternal beneficial association is hereby declared 
 to be a corporation, .society, order, or voluntary association, formed 
 or organized and carried on for the sole lienefit of its members and 
 their beneficiaries, and not foi' profit, haviiii;- a Iodide system ^vith 
 rit\ialistic form of work and representative form of government, 
 making provision for the j)ayment of benefits in case of death. Each 
 such association may make provision for the payment of benefits in 
 case of sickness, temporary or permanent physical disability, either 
 as a result of disease, accident, or old age : Provided, That the period 
 in life at which physical disability benefits on account of old age 
 commences shall not be under seventy years, or the age of ex- 
 pectancy from the time of entering, subject to their compliance with 
 its laws. Any such association may create and maintain a reseiwe. 
 emergency or benefit fund in accordance with its laws. Any such 
 a.ssociation having a reserve, emergency or benefit fund may. in 
 addition to the benefits hereinbefore named, pay withdrawal benefits, 
 not exceeding the contributions of such member, to a member 
 unal)le or unwilling to continue membership, provided such mem- 
 bership shall continue not less than three successive years. Such 
 association may also, after ten years oi membershii). apply its funds 
 and accumidations as its laws jirovide or the association and mem- 
 bers agree. The I'luul fiMiii which the ]iayments of such benefits
 
 86 FRATERNAL SOCIETY LAW 
 
 shall be made aud the i'luul frnm which the expenses of such asso- 
 ciation shall be defrayed shall be derived from assessments, dues, 
 and other payments collected from its members or otherwise. Pay- 
 ment of death benefits shall be to the families, heirs, blood relatives, 
 affianced husband or affianced wife of or to persons dependent upon 
 the member. Such association shall be governed by this subchapter, 
 aud shall be exempt from the provisions of insurance laws of the 
 United States relating to the District of Columbia, and no law here- 
 after passed shall apply to them unless they be expressly designated 
 therein : Provided, however, That the fact that anj' such association 
 has outstanding- agreements with its members for the payment of 
 benefits other than those hereinbefore specified, if it is making no 
 new contracts of that character and is retiring those already exist- 
 ing, shall not exclude such association from the operation of this 
 subchapter. 
 
 Existing Associations. 
 
 Section 750. All such as.sociations coming within the description 
 as set forth in section seven hundred and forty-nine of this subchap- 
 ter, organized luider the laws of the United States relating to said 
 District, or of any State, country, province, or Territory, and now 
 doing business in said District, may continue such business: Pro- 
 vided, That they hereafter comply with the provisions of this sub- 
 chapter regulating annual repoi-ts and the designation of the super- 
 intendent of insurance of said District, provided for in subchajiter 
 five of this chapter, as the person upon whom i)i'ocess may be served 
 as hereinafter provided. 
 
 Nonresident Associations. 
 
 Section 751. Any such association coming within the dcscriijlion 
 as set forth in section seven huiulred and forty-uin(> of this sub- 
 cha]iter, organized uiuicr Ihc laws of any State, country, province, 
 or Territory, and not now doing business in said District, shall be 
 admitted to do business within said Dis1i'i<-1. when it shall have filed 
 with the suiierintendent of insurance a duly cci-tified cojjy of its 
 charter and articles of association and a cojiy of its by-laws, certified
 
 THE DISTRICT OF COLUMBIA 87 
 
 to by its secretary or corresponding ol'licer, toyctlirr witli nii ;i|i|)(iii)t- 
 iiient of the said superintendent as the person upon whom process 
 may be served as hereinafter provided : Provided, That such associa- 
 tion shall be shown to be anthoi'ized 1o do business in the State, 
 country, province, or Territory' in wliicli it is iiicoi'|)orated or organ- 
 ized, in case the l;i\vs oi' such State, country, province, of 'J'rrritor.v 
 shall provide for such authorization; and in case the laws of such 
 State, country, province, or Territory do not provide for any formal 
 authorization to do business on the part of an.y such association, 
 then such association shall be shown to be conducting its business 
 in accordance with the provisions of this subchapter; for which 
 purpose the said sujterintendent ma.v personall.v, or b.v some person 
 to be designated by him. examine into the condition, atit'airs, char- 
 acter, and busiiu'ss methods, accounts, books, and investments of 
 such association at its honu^ office, which examination shall be at 
 the ex|)ense of such association ami shall be made within thirty da.vs 
 after demand therefor, and the expense of such examination shall be 
 limited to fifty dollars. An.v association doing business under this 
 subchapter shall be permitted to do business upon filing annuall.y 
 with the superintendent of insurance the certificate of authority 
 of the insurance department of the State, jirovince. (w Territory in 
 which it is incorporated or organized : Provided, however. That in 
 case of failure to file said certificate by -diiy such association, or in 
 case the stiperintendent of insurance shall deem it necessary, he 
 shall have power, eitlier personally or b.v some person desigiuited 
 by him, to examine into the condition, aft'airs. character, business 
 methods, accounts, books, and investments of such association, at 
 its home office, Mdiich examination shall be at the expense of the 
 association. The amount of such expense shall not exceed one hun- 
 dred dollars for associations which have no reserve or emergency 
 fund and two hundred dollars for associations with a reserve or 
 emergency fund. 
 
 Annual Reports. 
 
 Section 752. Every such association doing business in said Dis- 
 trict shall, on OI- before the first day of March of each ,vear, make 
 and file with the said superintendent a rejiort of its affairs and opera-
 
 yy FRATERNAL SOCIETY LAW 
 
 tidiis during- the year ending on the thirt y-tirst day of December 
 immediately preceding, which annual report shall be in lieu of all 
 otlier reports required by any other law. Such report shall be upon 
 l)lank forms to be provided by the said superintendent, or may be 
 pi-intc'd in iiaiiii)lilet form, and shall he certified under oath by the 
 duly Muthoi-ized officers of such association, and shall be published, 
 or the substance thereof, in the annual report of said superintendent 
 under a separate jiart entitled "Fraternal Beneficial Associations," 
 and shall contain ans\vi>rs to the following questions: 
 
 First. Number of cei'tificates issued dui'ing tlie >ear oi- members 
 admitted. 
 
 Second. Amount of indenuiity eft'ected thereby. 
 
 'I'hird. Number of losses or benefit liabilities incurred. 
 
 Fourtli. Number of losses or benefit liabilities paid. 
 
 Fifth. 'J'he amii\uit received from each assessment for tlie year. 
 
 Sixth. Tcital amount |)aid members, beneficiaries, legal repre- 
 sentatives, or heirs. 
 
 Seventh. Number and kind of claims for which assessments have 
 been made. 
 
 Eightli. Number and kind of claims coni|)romised or resisted, and 
 brief statement of reasons. 
 
 Ninth. Does the association charge annual or other periodical 
 dui's or admission fees? 
 
 Tenth. If so, how much on each one tlionsand dollars, annually 
 or per capita, as the case may be? 
 
 Eleventh. Total amount received, from what source .and the dis- 
 position thereof. 
 
 Twelfth. Total amount of salaries paid to officers. 
 
 Thirteenth. Does the association guarantee in its certificates fixed 
 amounts to be paid regardless of amount realized from assessments, 
 dues, admission fees, and donations? 
 
 Fourteenth. If so. statr- amount uuai'anti'cd and the security of 
 such guaranty. 
 
 Fifteenlh. lias the association a reserve oi' emergency fund? 
 
 Sixteentli. If so, how is it created, and tor what purjxise. the 
 amoinit Iher-eol'. and liow invested'.' 
 
 Seventeenth. Has llu' association more than one class?
 
 THE JJhSTh-If'T OF COIAMRIA 89 
 
 Eighteenth. If so, Ikiw iiuiny; ;ini| llic ainniinl ol' iiKlciiiiiity in 
 t^aeli case. 
 
 Xineteontli. \innlici- (iT nu'inlxTS in cacli class. 
 
 Twentieth. It voluntary, so state; and give date of ori;ani/.al ion. 
 
 Twenty-tirst. If organized under the laws of said District, under 
 wliat law and at wliat time. uivin<;- cliajiter and year, and ija1e of 
 l)assage of tlie act. 
 
 Twent.y-second. If org;inized under the laws of any State, coun- 
 trv. province, or Territory, state such fact and the date of organiza- 
 tion, giving chapter and year, and date of passage of the act. 
 
 Twenty-third. Niiniber of certificates of beneficial membershii) 
 lapsed during the year. 
 
 Twent.v-fourth. Nnmher in force at beginning and end of .vear; 
 if more than one class, innnl)er in each class. 
 
 Twenty-fifth. Names and addresses of its i)resident, secretar\-. 
 and treasurer, oi' ('oiTes|)ondinii' officers. 
 
 Nonresident Associations to Name an Attorney in the District. 
 
 Section 753. Each such association now doing or hereafter ad- 
 mitted to do business within said District, and iiot having its prin- 
 cipal office within said District, and not beinji' oruiinzed luuler the 
 laws of the United .States relating to said District, .shall appoint, in 
 writing, the said superintendent and his successors in office to be 
 its true and lawful attorney, upon whom all lawful process in any 
 action or proceeding against it ma.v be served, and in such writing 
 shall agree that anv lawful process against it which is served 
 on said attorne.v shall be of the same legal force and validit.v as if 
 served upon the association, and that the authority shall continue 
 in force so long as an.v liabilitv remains outstanding in said District. 
 Copies of said certificate certified b.v said superintendent shall be 
 deemed sufficient evidence thereof, and shall be admitted in evidence 
 with the same force and effect as the original thereof might be 
 admitted. Service upon such attorne.v shall be deemed sufficient 
 service upon such association. When legal process against such 
 association is served upon said superintendent he shall immediately 
 notify the association of such service bv letter, prepaid and directed 
 to its secretarv or corres)ionding officer, and shall, within two days
 
 90 FRATERNAL SOCIETY LAW 
 
 after such service, forward in the same manner a copy of the process 
 served on him to such officer. The plaintiff in such process so served 
 shall pay to the said superintendent at the time of such service a fee 
 of three dollars, which shall be recovered by him as a part of the 
 taxable cost if lie prevails in his suit. The said sujjerintendent shall 
 keep a record of all iirocesses served up<ui him, wliich record shall 
 show the day and hour when such service was made. 
 
 Permit from Superintendent of Insurance. 
 
 Section 754. The said superintendent shall, upon the apjtlieation 
 of any association having- the right to do business within said Dis- 
 trict, as ]u-ovided by this subchapter, is-sue to such association a 
 permit in writing authorizing such association to do business within 
 said District, for which certificate and all proceedings in connection 
 therewith such association shall pay the said superintendent the fee 
 of five dollars. 
 
 Certificate of Organization — Trustees. 
 
 Section 7.35. Any nine or more persons, at least one-third of 
 whom shall be residents of the District of Columbia, being desirous 
 of forming a fraternal beneficial association for the purposes set 
 forth in section seven hundred and forty-nine of this subchapter, 
 may associate themselves together and effect such organization as 
 hereinafter prescribed, and not otherwise. Such persons shall make, 
 sign, and acknowledge before any officer authorized to take the 
 acknowledgment of deeds in this District and file in the office of 
 the recorder of deeds of said District a certificate or declaration in 
 writing, to be recorded in a book kept for that purpose and open 
 to ))Hblic inspection, in which shall be stated the nanu=' or title by 
 which said association shall be known to law; the mode anil manner 
 in which the em-poratc powers granted by this subchapter are to be 
 exercised: the name or official title of the officers, trustees, repre- 
 sentatives, or other persons by whatever name oi' title designated, 
 who are to have and exercise the general control aiul management 
 of its affairs: the place of doing business ih'fiued : the limit as to age 
 of ap|ilicMiits I'or liriii'tiri:il inriiibrrship. wliicli sli;ill not rxcccd fift\'-
 
 THE DISTHIVT OF COIAMHIA 91 
 
 live yi-ai's, ;iii(l 1li;i1 nicdicjil i'x:iiiiiii;it iims iU'i- i-niniri'd nl' .•ippliciints 
 
 for life heiii'tils, togctlicr with the sworn stateiiiciit by llii' I' saiil 
 
 corporators that at least one hundi'ed jiersons elifiihle under the 
 j)ropose(l laws ol' sneii assoeialion lo nicii;liei'siii|i tlier-rin have in 
 good faith made application in writing for membership. The re- 
 corder of deeds, upon the filing of said declaration, shall deliver to 
 such association a certified copy of the papers so tiled and recorded 
 in his office, togelher with a certificate to siieli association, stating 
 that the provisions of thi.s subchaptei' relative to incorporation have 
 been complied with and that said association beconies thereby 
 aii1 hiiri/.ed lo carry cm tin- work (if a rralcrnal bcnclirial association. 
 Ui>on tilint;' the certificate or declaration as afor-csaid, the pei-soiis who 
 sliall have signed and acluiowU'dged tlie same, and their successors 
 and associates, shall, by the |)i'ovisions of this snbcha]itei'. be a body 
 politic and ccir']iorate by the name and style stilted in the certitieate. 
 and by that name and style shall \\:\\r pei-petual succession, and by 
 saiil name may sue and be sued, and may have and use a common 
 seal, and the same may alter and change at ])leasure, and may make 
 and alter, at times or from time to time, such laws, not inconsistent 
 with the Constitution of the United States or the laws in force in 
 said District, as they may deem necessarj- for the government of 
 said association. And they and their successors, by their corporate 
 name, shall in law be cai)able of creating, maintaining, and dis- 
 bursing a reserve or emergency fund in accordance with its laws and 
 the ])rovisions of this subchapter, and of taking, receiving, ])urehas- 
 ing. and liolding real and personal estate necessary for the purpose 
 of such association, and may let, place out at interest, or sell and 
 convey the same as may seem most beneficial for said association. 
 The association shall elect from its members trustees, directors, or 
 managers, by whatever title known in its laws, at such time and 
 place and in such manner as may be specified in its laws, who shall 
 have the control and management of the affairs and funds of said 
 association, a ma.i'ority of whom shall be a .quorum for the trans- 
 action, of business: and whenever any vacancy shall happen among 
 such trustees, directors, or managers, by death. I'esignation. or other- 
 M-ise. s\ich vacancy shall be filled in such manner as shall be ])ro- 
 vided b\- the laws of said associiition.
 
 92 FRATERNAL SOCIETY LAW 
 
 Reinccrporation. 
 
 Section 7.56. The officers, trustees, direetors. or s^overniug body 
 of any existing- fraternal beneficial association may, by conforming- 
 to the requirements of the several provisions of this subchapter, rein- 
 corporate themselves or continue their - existing corporate po-wers 
 under this subchapter, or change their name, stating in their certifi- 
 cate the original name of such corporation as well as their new name 
 assumed, and all the property and effects of such existing corpora- 
 tion shall vest in and belong to the corjioration so reincorporated or 
 continued. 
 
 Subordinate Bodies. 
 
 Section 757. Any subordinate body of any fraternal beneficial 
 association incorporated under the provisions of this subchapter, or 
 of such association now doing business or which may hereafter be 
 admitted to do business in this District under this subchapter, where 
 1li(' laws of the governing l)ody of said association do not prohibit 
 lhi> incorporation of their subordinate bodies, may become a bod.v 
 corporate in the manner following: At some I'egular meeting of such 
 suliordinate body a resolution expressing the desire of such sub- 
 ordinate body to be incorporated, and directing its officers to perfect 
 such incorporation, shall l)e submitted to a vote of the members 
 present, and if two-thirds of the mcjubers present vote therefor 
 the president and secretary of such subordinate body, or the officers 
 holding relative offices thei-ein. shall prepare articles of association, 
 luider their hands and the seal of such subordinate body, setting 
 forth, first, the mimber of members of such subordinate body then 
 in good standing; secoiul, the name by which said subordinate body 
 is i<no\vn : thii'd, the date of its organization and the iieriod for which 
 it is to be incorporated, not exceeding thirty years. .\ fupy of such 
 articles of association shall ho filed with the i-oeoi-der of deinls. and 
 shall by him lie rccdrdcd, Idgethcr witli the at'lidavit hereafter 
 named, in a buok to be K'epl Wiy Ihal pui-pnse. ()n the executinn of 
 said ai'tieies of association and liefore tiu" liliiig tliereof with the 
 recorder the secretary of sueli subordinate l)ody shall annex thereto 
 his affidavit, staling Unit he is a memlier in good slanding in such 
 subcirdinalr lioily and occn|)ies the pusilidn ol' secretary, or the office
 
 THI'J DISTRICT OF COLUMBIA 93 
 
 correspond ill <;■ tlicrcwilli. jiihI that llic rcsdlnt imi, a copy (if which 
 shall be set I'drth at Iciiiilh. was regulai'ly jiassed at a reii'ular meet- 
 ing of said siil)()i'(liiiat(' body and received the vote of two-thii'ds of 
 the meiiiliers present and voting, and tiiat. to the best of his knowl- 
 edge and Ix'lief. the statements made in the articles of association 
 are true, and that such siiboi'dinate bod,y is organized and acting 
 under the laws of its respective association, giving the name l)y 
 which such association is known. "When the foregoing re(iiiirements 
 are complied with such subordinate body shall be a body corporate 
 ty the name expressed in such articles, and by that name shall be 
 a person in law, capable of suing and being sued in the courts, and 
 taking aiul holding jirojierty of every kind the same as natural 
 persons, and a copy of said articles of association, duly certified to 
 by the recoi'der of deeds, shall be prima facie evidence in all courts 
 and places of the existence and the due incorporation of such sub- 
 ordinate body. 
 
 Contract Invalid if Beneficiary to Pay Assessments. 
 
 Section 758. No contract with any such association shall be valid 
 when there is a contract, agreement, or imder.standing betw^een the 
 member and the beneficiary prior to or at the time of becoming a 
 member of the association that the beneficiary, or any person for 
 him, shall pay such member's assessments and dues, or either of 
 them. 
 
 Benefits Exempt From Attachment. 
 
 Section 759. The money or other benefit, charity, relief, or aid 
 to be paid, provided, or rendered by any association authorized to do 
 "business under this subchapter shall not be liable to attachment, 
 garnishment, or other process, and shall not be seized, taken, appro- 
 priated, or ai)plied liy any legal or equitable i)rocess, or by operation 
 of law to pay any debt or liability of a certificate holder or of any 
 beneficiary named in a certificate, or any jierson who may have any 
 right thereunder. 
 
 Meetings. 
 
 Section 760. Any such association organized imder the laws of
 
 94 FRATERNAL SOCIETY LAW 
 
 said District iiuiy provide for the meetings of its legislative or 
 governing body in any .State, country, province, or Territory wherein 
 such association shall have subordinate bodies, and all business trans- 
 acted at such meetings shall be valid in all respects as if such meet- 
 ings were held within said District ; and where the laws of any such 
 association provide for the election of its offieers by votes to be cast 
 in its subordinate bodies, the votes so cast in its subordinate bodies 
 in any State, country, province, or Territor\' shall be valid as if cast 
 Avithin said District. 
 
 Fraudulent Representations. 
 
 Section 761. Any person, officer, nionber, or examining physician 
 who shall knowingly oi- willfully make any false or fraudulent state- 
 ment or representMtion in ov with reference to any application for 
 membership or for restoration to membership or for the purpose of 
 obtaining any money or benefit in any association transacting busi- 
 ness under this subchapter slmll be guilty of a misdemeanor, and 
 upon conviction shall be ]uniished by a tine of not less than one 
 hundred dollars nor more than five hundred dollars, or imprisonment 
 in the United States .iail in said District for not less than thirty days 
 nor more than one year, or both, in the discretion of the court; and 
 an.\- )ierson who shall willfully make a false statement of any 
 material fact or thing in a sworn statement as to the death or dis- 
 ability of a certificate holdei- in any such association for the purpose 
 of procuring payment of a benefit named in the certificate of such 
 holder, and an.\- ])erson who shall willfully nudce any false statement 
 in any verified re|)oi-t or declaration under oatii re(|uii'ed or author- 
 ixed li\- tliis subcliaptei', shall lie guilty of perjury. 
 
 Neglect to Report. 
 
 Section Tfi'J. Any such association refusing or negk'cting to make 
 the report as pi'ovided in this subchapter shall be excluded from 
 doing busiru'ss within said dislriet. Said snpei'intendent of insur- 
 ance musi, within si.xty ilays after failure to make such report, or 
 in case an\- such as.sociation shall exceed its powers, or shall coiuluct 
 its business fraudulently, or shall fail to comply with any of the
 
 THE DISTRICT OF COLUMBIA 95 
 
 provisions ol:' lliis suhrliiiplci', li'ivc notice in writiui;- to tiic atlorncv 
 for said District, who sluill immediately eonimence an aution ag^ainst 
 such association to enjoin tlie same from carrying on any business. 
 An injunction against any such association may be granted on appli- 
 cation by the Commissioners of said District at the request of the 
 said superintendent. No association so enjoined shall have authori1.\- 
 to continue business until such rei)ort shall be made, or overt act 
 or violation complained of shall have been corrected, nor until the 
 costs of such action be paid by it, (provided, tlie court shall find 
 that such association was in default, as charged,) whereupon the 
 superintendent of insurance shall reinstate such association, and not 
 until then shall such ;issoeiati<in be allowed again to do busiiU'ss in 
 said District. Any officer, agent, or person acting for any association 
 or subordinate body thereof, within said district, while such associa- 
 tion shall be so enjoined or prohibited from doing business pursuant 
 to this subchapter, shall be deemed guilty of a misdemeanor, and on 
 conviction thereof shall be lumished by a fine of not less than twenty- 
 five dollars nor more than two hundred dollars, or by imprisonment 
 in saiti jail not less than thirty days nor more than one year, or by 
 both such fine and imprisonment, in the discretion of the court. 
 
 Acting- Without Authority. 
 
 Section 768. Any person who shall act within said District as an 
 officer, agent, or otherwise, for any association which shall have 
 failed, neglected, or refused to comply with, or shall have violated 
 any of the provision.s of this subchapter, or shall have failed or neg- 
 lected to procure from the said superintendent a proper certificate of 
 authority to transact business as provided for in this subchapter, 
 shall be subject to the ]ienalty provided in the last preceding section 
 for the misdemeanor therein specified. To "transact business" or 
 "doing business'" under this subchapter means the writing of appli- 
 cations aiul the soliciting of new members so far as the penalty of this 
 subchapter applies thereto. It shall not be unlawful for any organ- 
 ization under section seven hundred and forty-nine to continue the 
 operation of its lodges or branches except in securing new members.
 
 96 FRATEHXAL SOCIETY LAW 
 
 This Law Not to Apply to Associations for Profit. 
 
 Section 764. Nothing in this subchapter shall be construed to 
 apply to any corporation, society, order, or association carrying- on 
 the busines.s of life, health, casualty, or accident insurance for profit 
 or gain, and it shall only apply to fraternal beneficial associations as 
 defined by section seven hundred and forty-nine, and nothing in 
 this subchapter ccnitained shall be construed to eft'ect any grand or 
 subordinate lodge or branch of any such fraternal beneficial societies, 
 orders, or associations which limits its certificate holders to a par- 
 ticular religious denomination or to the employees of a particular 
 town or city, designated firm, business house, or corporation, or de- 
 partment or branch of the United States Government, nor the grand 
 and subordiniite lodges of the Independent Order of Odd Fellows, 
 nor any grand or subordinate lodge, or other l)ody of Free and Ac- 
 cepted ]Masons. nor the grand or any subordinate lodge of the 
 Elnights of Pythias, or similar orders, associations, or societies that 
 do not have as their principal object the issuance of benefit certifi- 
 cates of membership in case of death or the payment of sick, funeral, 
 or death benefits exceeding in amount one hundred dollars. 
 
 Nor to Associations or Individuals Using Name of Previously Exist- 
 ing Corporation. 
 
 Section Tlio. The provisions of this subchapter shall not extend 
 to nor apply to any association or individual who shall, in the cer- 
 tificate filed with the recorder of deeds, use or specify a name or 
 style the same as that of any previously existing incorporated fra- 
 ternn] l)oneficial association in the District of Columbia. 
 
 Sec. 0()1. Cliap. '_'] of the Disti'ict of Columbia Code provides: 
 
 Party Committing Murder or Manslaughter Takes No Interest in 
 Estate of Deceased. 
 
 Section !)(i1. \<i imtsoii wiio shall be convicted i)\' the I'donious 
 homicide of ;iiici1lier. eitlier by way of murder or manslaughter, shall 
 take any estate or interest of any kind whatsoever in any kind of 
 lii-o]i('i-ty whatsoever from lliat nthci' by way of inhcrilani-c. disti'ibu-
 
 THE DISTRICT OF COLUMBIA 97 
 
 tion, devise, or bequest, or shall take any remainder, reversion, or 
 executoi'y interest dejjendent upon the death of that other; and the 
 estate or interest of property to which the person so convicted would 
 have succeeded or would have taken in any way from or after the 
 death of the person so killed by him sliall go as if the person so con- 
 victed had died before the i)erson whom ho shall be convicted of kill- 
 ing. And every policy of insurance procured, directly or indirectly, 
 by the person so convicted for his own benefit or payable to him upon 
 the life of the person so killed shall be void. This act shall not affect 
 the rights of bona lide purchasers of any such property for value 
 without notice. 
 
 By-laws are Prospective in Operation. 
 
 By-laws will be given a prospective operation only, unless the 
 language used clearly indicates that they were intended to be ret- 
 rospective in their operation, especially where to give them a reti-o- 
 spective effect will impair the contract. 
 
 Brown vs. Grand Fountain of the Uniterl Order of True Reform- 
 ers, Nov. 9th, 1906. 2S App. Cases D. C. 200. 
 
 Amendment of Charter — Rights of Members Unaffected. 
 
 An amendment to the charter of a society, which was originally 
 incorporated as a joint stock company, depriving certificate holders 
 of the right they formerly possessed of designating their bene- 
 ficiaries, will not affect existing members in the absence of anything 
 in the amendment of the charter to show that it was intended to 
 have a retrospective effect, and where the existing certificate holders 
 did nothing to show an intention to acquiesce in such amendment. 
 
 Brown vs. Grand Fountain of the United Order of True Reform- 
 ers, Nov. 9th, 1906, 28 App. Cases D. C. 200. 
 
 Amendments to Constitution. 
 
 A committee appointed by a society to revise the constitution and 
 general laws has no authorit.y to propose amendments without the 
 notice required for amendments.
 
 98 FRATERNAL SOCIETY LAW 
 
 National Council J. O. U. A. M. vs. State Council J. O. U. A. M., 
 Feb. 6, 1906, 27 App. Cases D. C. 1. 
 
 Void Constitution. 
 
 A revised constitution of a society, adopted without compliance 
 with the requirements of the old constitution as to the procedure in 
 such cases is invalid, and a bill in equity by the National council 
 against the State council to compel the surrender of its charter, and 
 to iujoiu it from acting thereunder, on the ground that the charter 
 had been revoked by the National council's authority, will not lie 
 where the National council so revoking the charter was created, 
 by the revised constitution so unlawfully adopted. 
 
 National Council J. O. U. A. M. vs. State Council J. O. U. A. M., 
 Feb. 6, 1906, 27 App. Cases D. C. 1. 
 
 Reinstatement a Personal Privilege. 
 
 Where the by-laws of a society provide that forfeiture and dis- 
 connection of a member will result from the non-payment of the 
 assessments, and also that the disconnected member may be rein- 
 stated by payment b.v him. within 30 days, of his arrearages, the 
 right of reinstatement is held to be personal to the member, and 
 not to survive to his personal representatives or beneficiaries, and 
 if the member dies, and is disconnected inside of such 30 days, there 
 can be no recovery on the benefit certificate. 
 
 Supreme Commandery of the United Order of the Golden Cross vs. 
 Bernard, Nov. 8th, 1905, 26 App. Cases D. C. 169. 
 
 Agency of Local OiRcers — Estoppel. 
 
 As to the agency of a local collecting ofSeer. and his right to waive 
 laws, and a discussion of the question of estoppel, as apply in such 
 cases, see 
 
 Supreme Commandery of the United Order of the Golden Cross vs. 
 Bernard, Nov. 8th, 1905, 26 App. Cases D. C. 169.
 
 THE DISTRICT OF COLUMBIA 99 
 
 Agency of Local Officials. 
 
 Where a by-law of a society imposes upon the officers, of 'local 
 councils the duty of receiving and transmitting to the central* gov- 
 erning body the dues and assessments of members; a' provision in 
 such by-law that the officers of each local counm shall be deemed 
 the agents solely of such council, is inconsistent with the duty o{ 
 the agency, and cannot be used to defeat a cla'm upon a certificate 
 issued by the society. In such ease it is imih'a:*;erial u"^ between the 
 member and the society whether the latter 's agents and officers of the 
 local council perform their duty or not by transmitting the assess- 
 ments which the member had paid. 
 
 Prudent Patricians of Pompeii vs. Marr, June 23rd, 1902, 20 App. 
 Cases D. C. 363. 
 
 Good Standing — Resort to Civil Courts. 
 
 The courts will not interfere to determine a person's good standing 
 in his society, when such good standing is based upon morals, re- 
 ligion, etc., but will interfere whenever such good standing is based 
 upon the payment of dues, etc. 
 
 Prudent Patricians of Pompeii vs. Marr, June 23rd, 1902, 20 App. 
 Cases D. C. 363. 
 
 Suicide — Facts Held Not Sufficient. 
 
 For the facts in a suicide case, where the court directed a verdict 
 for the plaintiff, and no important question of law being involved, 
 see the following: 
 
 National Union vs. Bennett, Nov. lltli, 1902, 20 App. Cases D. C. 
 527. 
 
 Jurisdiction of Courts Over Foreign Society. 
 
 A suit in equit}' to enjoin a foreign mutual insurance society, whose 
 dues or assessments are payable at its home office, and which has an 
 agency and carries on business in this district, against collecting 
 from a member resisting, excessive and illegal assessments, and
 
 100 FRATERNAL SOCIETY LAW 
 
 against forfeiting his contract for non-payment of such assessments, 
 and also seeking an accounting and discovery of the books and 
 
 ■ papers' of the corporation, to determine the member's basis of assess- 
 ment, is .pot maintainable in this jurisdiction, as the relief sought 
 would require the direction and control of the internal affairs of 
 
 'the corporation^ H'tieh pi'operly belong to the jurisdiction where 
 
 •"t^^'.corporation is d:6miciled. 
 
 Caaf-k','iii53. Mutual 'Reserve Fund Life Ass'n, Feb. 7th, 1899, 14 App. 
 dases D./C. iS4 . 
 
 Members Bound By Laws — Ignorance Inexcusable. 
 
 The members of a mutual insurance society are bound bj^ its con- 
 stitution and by-laws, whether they have actual knowledge of them, 
 or whether they are referred to in the certificate held by them or not. 
 
 Clark vs. Mutual Reserve Fund Life Ass'n, Feb. Tth, 1899, 14 App. 
 Cases D. C. 154. 
 
 Suicide — Sane or Insane. 
 
 A stipulation in a cei'tificate relieving the society of liability, ex- 
 cept for assessments paid, in case of the suicide of a member, whether 
 voluntary or involuntaiy, sane or insane, is valid, and will be given 
 effect according to the terms of the contract. In a suit on a cer- 
 tificate containing such a stipulation, where the defense is estab- 
 lished, and the evidence is so clear as to exclude any other hypothe- 
 sis, other than by suicide, doubtful presumption against the fact of 
 suicide will not bo allowed to counteract and divert the rational con- 
 elusion deducible from such clear and definite proof. In such case 
 it seems proper for the trial court to direct a verdict for the suicide. 
 
 Sommerville vs. Knights Templars, Nov. 4th. 1897, 11 App. Cases D. 
 C. 417. 
 
 Forfeiture — No Reinstatement of Contract after the Member 's Death. 
 
 The constitution and by-laws of a mutual benefit association and 
 the certificate of membership in which the party to whom it is issued 
 agrees to conform to the constitution and by-laws, constitute the con-
 
 THE DISTRICT OF COLUMBIA 101 
 
 tract, and determine the rights of the member, and where such con- 
 tract provides that any member who fails to pay any of his assess- 
 ments 30 days after the same may be due shall be notified, and if 
 he shall be in arrears 30 days longer he shall be dropped, it is of the 
 essence of the contract. And upon his failure in such case to pay 
 after notice, his rights terminate, and the subsequent tender by the 
 beneficiary after the member's death of the amount of the assess- 
 ment cannot avail to reinstate the membership. 
 
 Drum vs. Benton, Oct. 3, 1898, 13 App. Cases D. C. 245.
 
 102 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF FLORIDA. 
 
 - CHAPTER 10. 
 
 There is no statute law in the State of Florida relating to 
 Fraternal Benefit societies and the Supreme Court of that State 
 has had fewer questions of Fraternal Society LaAv to adjudicate than 
 most of the States. 
 
 Death in Violation of Criminal Law. 
 
 In an action ujjon a certificate where one of the defendant's pleas 
 is to the effect that the member came to his death in consequence of 
 the violation by him of the criminal law of the State of Florida, the 
 burden of proving the matter contained in the plea is upon the de- 
 fendant, and it must establish the plea by a preponderance of the 
 testimony. For the facts in a case supporting the plea, see the 
 court's opinion. 
 
 Supreme Lodge Knights of Pythias vs. Lipscomb, June, 1905, 50 
 Florida 406. 
 
 Waiver of Proofs of Loss. 
 
 A denial of liability i.s a waiver of proofs of loss. 
 
 Ta.vlor vs. Glenn Falls Ins. Co., .lanuar.v, 1902, 44 Fla. 273.
 
 THE STATE OB' GEORGIA 103 
 
 THE 
 
 STATE OF GEORGIA. 
 
 CHAPTER 11. 
 
 An Act to define and regulate fraternal beneficiary orders, associa- 
 tions or societies in the State of Georgia, to provide penalties, and 
 for other purposes. 
 
 Section 1. Be it enacted by the General Assembly of Georgia, 
 That a fraternal beneficiary order, association or society is hereby 
 defined to be a corporation, society or voluntary association which 
 has no capital stock, but is formed or organized and carried on for 
 the benefit nf its members and their beneficiaries, and having a. 
 representative form of government and a lodge system, with ritual- 
 istic form of work for the meeting of its lodges, chapters, councils, 
 or other designated subordinate bodies, and the benefits, insurance, 
 charity or relief shall be payable by a grand or supreme body of 
 the same, excepting sick benefits, which may also be paid by local 
 or subordinate bodies. Such grand or supreme bodies may be com- 
 posed of its officers, incorporators, representatives elected by local, 
 district or grand bodies, past officers and standing committees. Such 
 orders or associations may make a constitution, by-laws, rules and 
 regulations consistent with the existing laws of the State, for thf> 
 government of all under its authority, for the management of its 
 properties and the due and orderly conduct of its affairs. 
 
 Such orders or associations may make provision for the payment 
 of benefits in case of death, sickness, temporary or permanent physi- 
 cal disability, either as the result of disease, accident or old age; 
 provided, the period of life at which payment for old age com- 
 mences shall not be under seventy years. Any such order or associa- 
 tion may also accumulate, maintain, apply or disburse among its 
 membership a reserve, emergency or other funds, as may be pro-
 
 104 FRATERNAL SOCIETY LAW 
 
 vided iu its constitution and laws; provided, however, that no profit 
 or o-ain shall be added to the payments made by a member. 
 
 The funds from which the payment of benefits shall be made, and 
 the funds from which the expenses shall be defrayed, shall be 
 derived from assessments, dues or other payments collected from its 
 members, as may be provided by the constitution or by-laws of such 
 order or association. Payment of death benefits shall be to families, 
 heirs, blood relatives, affianced husband or affianced wife of, or to 
 Ijersons dependent ujion the member, as may be designated by the 
 member. 
 
 Such orders or associations shall be governed by this Act, and 
 shall be exempt from the provisions of the insurance laws of this 
 State, and no law hereafter passed shall apply to fraternal benefi- 
 ciary orders or associations, unless it is expressly designated therein. 
 
 Section 2. Be it further enacted. That any fraternal beneficiary 
 order, association or society of this or any other State, district, 
 province or territory, now having members, or any lodge, chapter, 
 council or subordinate branch duly established and organized in 
 this State, may continue its operations and business in this State ; 
 provided, that it hereafter complies with the provisions of this Act 
 regulating annual reports, and the designation of the Insurance 
 Commissioner as the person upon whom process may be served, as 
 hereinafter provided. 
 
 Section 3. Any fraternal beneficiary order, association or societj^ 
 coming within tlie description as set forth in section one of this 
 Act, organized under the laws of any other State, province, district 
 or territory, not now having lodges, covmcils, or other bodies, or 
 members in this State, shall be permitted to do business within this 
 State when it shall have filed with the Insurance Commissioner a 
 certificate from the official in charge of insurance matters in its 
 home State of incorporation that it is authorized to transact business 
 therein as a fraternal beneficiary order or association, also a duly 
 certified copy of its charter and articles of association, and a copy of 
 its constitution and laws, certified to by its secretary or correspond- 
 ing ofiieer. together with the appointment of the Insurance Com- 
 missioner as the person upon whom Ic^al process may be served, as 
 hereinafter ]>rovided. 
 
 Section -1. Every such corporation, society, order or association
 
 THE STATE OF GEORGIA 105 
 
 doing business iu this State shall, on or bei'ore the first day of 
 March each year, make, and file with the Insurance Commissioner 
 a report of its affairs and operations during- the year ending the 
 thirty-first day of December immediatelj^ preceding, which annual 
 report sliall be in lieu of all other reports required by any other 
 law. Such reports shall be made on blanks provided by the Insur- 
 ance Commissioner, and shall be verified under oath by the duly 
 authorized officers of any such order, and shall be published, or the 
 substance thereof, in the annual report of the Insurance Commis- 
 sioner under a separate head, entitled "Fraternal Beneficiary So- 
 cieties." 
 
 Section 5. Each such corporation, society or association now doing, 
 or hereafter admitted to do business in this State, and not having 
 its principal office within this State, and not being organized under 
 the laws of this State, may be served with each and all processes of 
 law, whether mesne or final, in any action or special proceedings 
 against said corporation, society or association, as follows: The 
 party in whose favor suit is being brought, through his attorney at 
 law shall notify in writing the Insurance Commissioner of Georgia 
 of his intention to bring such suit or action, and request the said 
 Insurance Commissioner to a]i])oiiit some resident of the county of 
 the residence of said plaintiff in said case, and it shall be the duty 
 of the Insurance Commissioner immediately to appoint some resi- 
 dent of said county to accept service of process in all cases in the 
 name of the said corporation, society or association ; and the said 
 service, when so made, shall be deemed and held and accepted by 
 said cor[-)oration, society or association to be legal personal service 
 and binding, the same as if made upon any agent or officer of said 
 society or corporation; provided, that the said party or his attorney 
 shall twenty days before the appearance term for said si;it or 
 action, cause to be sent tn the Insurance C'ommissioner a copy of the 
 petition. When such service has been made upon such attorney 
 for service on any such corporation, society or association, and 
 copy of same has been forwarded to said Commissioner as hereinbe- 
 fore provided, it shall be the dut,v of said Insurance Commissioner 
 immediately to notify the said corporation, society or association of 
 such service liy letter, enclosing copy of said petition, together
 
 106 FRATERNAL SOCIETY LAW 
 
 with process filed in said case, prepaid and dii-ected to the secretai-y 
 or its correspouding otficer. 
 
 The Insnrauce Commissioner shall keej) a record of all such at- 
 torneys appointed for such service, together with the record of 
 when any such petitions with process were received by him in any 
 ease, and forwarded to any such corporation, society, or association. 
 
 Section 6. The Insurance Commissioner shall, without undue delay, 
 upon the application of any order, society or association having 
 the right to do business in this State as provided by this Act, issue 
 a permit in writing authorizing it to do business within the State, 
 for which certificate, and all proceedings in connection therewith, 
 such association shall pay to said Insx^rance Commissioner a fee of 
 ten dollars. This fee shall be paid annually thereafter in advance. 
 
 Section 7. Any such order, association or society refusing or neg- 
 lecting to make the report to the Insurance Commissioner, as pro- 
 vided in this Act, shall be excluded from doing business within this 
 State, and the Insurance Commissioner shall at once recall and can- 
 cel their license. Any officer, agent or person acting for any order, 
 or subordinate body thereof, within this State, while it shall be pro- 
 hibited from doing business pursuant to this Act, shall be deemed 
 guilty of a misdemeanor, and on conviction thereof shall be pun- 
 ished by a fine of not less than twenty-five dollars nor more than 
 one hundred dollars. 
 
 Section 8. Any person who shall act within this State as an offi- 
 cer, agent or otherwise for any such fraternal beneficiary order in 
 soliciting or ])roeuring new business or members, which shall have 
 neglected or refused to comply with this Act. .shall be subject to 
 the penalty provided in the last preceding section for the misde- 
 meanor tlierein si)ecified. 
 
 Section 9. All laws and parts of laws in conflict with or inconsist- 
 ent with this Act be, and the same are, hereby repealed, and nothing 
 in this Act shall be held to afi'ect or to apply to grand or subor- 
 dinate lodges of Masons, Knights of Pythias. Odd Fellows, Red 
 Men. Junior Ordei- American Mechanics, or similar orders that do 
 not have as their principal object the Issuance of benefit certificates 
 to members. 
 
 Section 10. This .\ct shall be in force and ofl'oet from and after 
 its passage.
 
 THE STATE OF GEORGIA 107 
 
 Approved December 17, IDUO. 
 
 Section 20 of "An Act to regulate tlic business of insurance in 
 this State and for other purposes," which Act creates the Insurance 
 Department of the State, etc., provides, viz. : 
 
 Section 20. Be it further enacted, That nothing in this Act con- 
 tained shall apply to or be construed to require any fraternal or 
 secret or industrial societies, or other associations exempt by law, 
 now organized or to be organized in this State, to pay any license 
 fee or tax, or to make or file reports with the Insurance Commis- 
 sioner, or to prevent the same from doing business in this State, 
 when the monej'', benefit, charity or relief is payable \)j the grand 
 or supreme body of the same, and is derived from assessments on 
 subordinate lodges, councils, or other bodies of their members. 
 
 Contract Between Members and Society — Certificate Need Not be 
 Issued. 
 
 A certificate of membership is not indispeusable to the completion 
 of the contract between a member and the society. In the absence 
 of the certificate, it is competent to look to the by-laws in order to 
 determine the obligations of the society, and unless there is an 
 express provision that a certificate of membei'ship is essential, the 
 by-laws and the existence of good standing in the society may alone 
 be regarded as constituting a valid contract. 
 
 Social Benevolent Society No. 1 vs. Holmes, Feb. loth, 1907, 127 
 Ga. 586. 
 
 Contract Must be in Writing. 
 
 The law requires a contract of insurance to be in writing, but 
 upon demurrer it will be presumed that the contract is in writing, 
 as the law requires it to be. 
 
 Social Benevolent Society No. 1 vs. Holmes, Feb. loth, 1907, 127 
 Ga. .586. 
 
 Officers and Agents — Distinction Between. 
 
 The distinction between officers and agents of a corporation lies in
 
 108 FRATERNAL SOCIETY LAW 
 
 the manner of their creation. For a fall discussion upon this sub- 
 ject, see the opinion of the court. 
 
 Vardeman vs. Penn. Mut. Life Ins. Co., March 24th, 1906, 125 Ga. 
 117. 
 
 Forfeiture — Custom — Estoppel. 
 
 A custom to receive payments after they are overdue, cannot be 
 availed of in the face of a writing stipulating for prompt payment, 
 and against the power of waiving the requirement. 
 
 Vardeman vs. Penn. Mut. Life Ins. Co., March 24th, 1906, 125 Ga. 
 117. 
 
 Beneficiary. 
 
 When an application for a policy of life insurance designates a 
 named person as a beneficiary, and the policy is issued, which does 
 not contain the name of any person as beneficiary, the person named 
 in the application is to be treated as the beneficiary of the con- 
 tract; aliter, when an application named one person, but the policy 
 named another, and the policy was accepted b.v the insured. 
 
 Ogletree vs. Hutchinson, August 13, 1906, 126 Ga. 454. 
 
 Beneficiary— Death of Before Member. 
 
 A member of a society named as his beneficiary his wife S, and 
 three sisters, who were to have the benefit in certain designated 
 proportions. S, the beneficiary, died intestate, leaving the member 
 as her sole heir-at-law. Svibsequently the member married J, who 
 survived hiin. No change in the certificate took place, and at the 
 member's death it remained in force as issued. A law of the society 
 provided that "in the event of the death before the decease of the 
 member, of one or more of the beneficiaries designated by him 
 • * * if he shall have made no other and further 
 
 disposition thereof # # * upon his death, that 
 
 part of the benefit made payable Id the deceased beneficiary, or 
 beneficiaries, shall be |)aid to the surviving beneficiary or benefi-
 
 THE STATE OF GEORGIA 109 
 
 ciaries equally." It was held that under the facts in the case, the 
 thi-ee sisters named in the certificate, who survived the member, 
 were entitled to have equally the share which would have gone to 
 S had she lived; that J, the widow, was not entitled to participate 
 under the certificate. Contract and by-law in question are those of 
 of the Royal Arcanum. 
 
 Polhill vs. Battle, Nov. 9th, 1905, 124 Ga. 111. 
 
 Forfeiture — Custom — Estoppel. 
 
 "Where a certificate of insurance provided that all benefits there- 
 from should be forfeited on failure to pay the premiums as therein 
 stipulated, and that no agent was authorized to alter or discharge 
 contracts, waive forfeitures, or receive premiums in arrears beyond 
 the time provided in the conditions and provisions of the certificate, 
 the custom of a mere collecting agent of a society with reference to 
 the collection and payment of premiums, if contrary to the terms 
 of the certificate, would not prevent a forfeiture thereof, on the 
 failure by a member to comply with its conditions as to the payment 
 of premiums, where such a custom was neither authorized or ratified 
 by the society. 
 
 American Assurance Ass'n vs. Hardiman. Nov. 20th. 1905, 124 Ga. 
 379. 
 
 Resort to Civil Courts. 
 
 Where the constitution of a society declared that "no suit shall 
 be brought against this order without first referring the matter to 
 the grievance committee," with right of appeal to the cabinet, and 
 from them to the annual congress, a suit by a member on a claim for 
 a sick benefit cannot be maintained without first exhausting the 
 remedies so prescribed. 
 
 Union Fraternal League vs. Johnston. Nov. 20th, 1905, 124 Ga. 902. 
 
 After-enacted Laws. 
 
 A member who has agreed to comply with the laws in force at the
 
 110 FRATERNAL SOCIETY LAW 
 
 time of his admission to the society, and also with such as might 
 thereafter be adopted, was held bound by all laws lawfully adopted 
 after his admission. 
 
 Union Fraternal League vs. Jolinston, Nov. 20th, 1905, 124 Ga. 902. 
 
 Misrepresentation — By Applicant. 
 
 Where an applicant for life insurance states in his application that 
 the statements made to the medical examiner are true, and these 
 statements are made a pai-t of the contract, and form the basis 
 thereof, any variation iu them which is material, whereby the nature 
 or extent or character of the risk is changed, will avoid the certifi- 
 cate, whether the statements were made in good faith or fraudulently 
 and willfully. 
 
 Supreme Conclave Knights of Damou vs. Wood, .Tune 8th. 1904. 120 
 Ga. 328. 
 
 Suicide — Sane or Insane. 
 
 In an action upon a certificate containing terms which the member 
 agreed to, that no benefit whatever should be paid upon his death, 
 should he commit suicide within two years, while sane or insane, 
 and the evidence was sufScient to warrant a finding that in less 
 than the time mentioned, the member took his own life, it was not 
 error for the court to charge the jury that if the member "destroyed 
 his life by shooting himself, and at the time he shot himself, did it 
 voluntarily, and intended to kill himself, then it would be imma- 
 terial whether at the time he Avas sane or insane, or whether his 
 mental faculties wore so impaired as to destroy his moral responsi- 
 bility and the plaintiffs in this case could not recover." 
 
 Jenkins et al. vs. National Union, Aug. 14th, 1903, 118 Ga. 587. 
 
 Interpleader — Counsel Fees. 
 
 In a case of interpleader in which the holder of a fund asked that 
 the two claimants be decreed to intorpload. and was authorized to 
 pay the fund into court, the plaintiil:' is not entitled to an allowance
 
 THE STATH Of GFAJRGIA III 
 
 of counsel i'cos \)\ the tlcerre .■illowiug the interpleudei'. and even 
 though such fund be paid into thi' registry of the court. Various 
 aiitliorities are cited in the l)riefs tiled by counsel, and same are 
 considered and coustructl by the court. 
 
 Helmken vs. Meyer, Aug. 14tli, 1903, 118 Ga. 657. 
 
 Void After-enacted Laws. 
 
 A certificate issued provided that in consideration of a full com- 
 pliance with all the by-laws then existing, and thereafter adopted, 
 the society agreed to pay the sum of $5,000.00. Subsequently a by- 
 law was adopted, i)roviding that -$2,000.00 should be the highest 
 amount paid on any benefit certificate theretofore or thereafter 
 issued. Held, 1st, that the agreement to pay $5,000.00 was a con- 
 tract which could not be changed by a by-law so as to reduce the 
 amount agreed to be paid; 2nd, that the passage of sucli by-law, and 
 an attempt to enforce it by tendering to the member a certificate for 
 $2,000.00 in lieu of the old certificate, which was requested for can- 
 cellation, amounted to a repudiation of the contract, and gave tiie 
 member the right, at his option, to bring an action against the soci- 
 ety for the recovery of the amount paid as premiums, with interest 
 thereon from the time each premium was paid. 
 
 Supreme Council American Legion of Honor vs. Jordan, June 27tli. 
 1903, 117 Ga. 808. 
 
 Limitations — Repudiation of Contract. 
 
 A b3-law provided: "Ko action at law or in equity in any court 
 shall be brought or maintained for anj' cause or claim arising out 
 of any membership or benefit certificate, unless such action is brought 
 within one year from the time when such action accrues, and such 
 right of action shall accrue ninety days after all proofs called for 
 in case of the death of a member shall have been furnished." It was 
 held that this by-law had no application to a suit to be brought by 
 a certificate-holder to recover back lU'emiums paid, in the event of 
 the society's repudiation of a contract.
 
 112 FRATERNAL SOCIETY LAW 
 
 Supreme Council American Legion of Honor vs. Jordan, June 27th, 
 1903, 117 Ga. SOS. 
 
 Beneficiaries — "Next of Kin." 
 
 Where a by-law stipulated that no death beuetit shall be paid 
 except "to the widow, children, uncle, niece, nephew, first cousin, 
 next of kin, who would be distributee of the member's personal 
 estate if he died intestate, or to persons dependent upon the mem- 
 ber," the words "next of kin" do not limit the class before enumer- 
 ated, but adds to them another class. 
 
 Maxwell vs. Family Protective Union, April .30th, 1902, 115 Ga. 475. 
 
 Resort to Civil Courts — Beneficiaries Not Bound by Rules. 
 
 A stipulation in the by-laws that, "No suit shall be instituted 
 against this order without first referring the matter to the griev- 
 ance committee, and if its action be objected to by either party, an 
 appeal may be taken to the supreme council," etc., was held not to 
 apply to beneficiaries of deceased members, but only to members 
 themselves. 
 
 Maxwell vs. Family Protective Union, April 30th, 1902, 115 Ga. 475. 
 
 After-enacted Laws — Suicide — Sane or Insane. 
 
 While a member in making a contract with a fraternal society 
 may agree that he will be bound by the laws existing at the date 
 of the agreement, and any other laws that may thereafter be legally 
 adopted, he is entitled to rely upon the contract and conditions as 
 made, until the law-making power of the society enacts legislation 
 which by its terms applies to his contract. Applying this principle 
 to a case where it was stated that at the time the member made his 
 contract no forfeiture was prescribed in case he should die by his 
 own hand while insane, but that four years later a by-law was en- 
 acted providing for forfeitures in cases where members died by their 
 own hands, whether sane or insane, the court held that the by-laws 
 were to be given a ])ro.speetivo operation only, as the words used in
 
 THE STATE OF GEORGIA 113 
 
 the amendment did not niiike it clear that they were to act retro- 
 spectively. 
 
 Sovereign Camp Woodmen of the World vs. Thornton, July 17th, 
 1902, 115 Ga. 798. 
 
 Disappearance of Member. 
 
 A certificate provided that "the disappearance or long continued 
 absence of a member unheard of shall not be regarded as evidence 
 of death or any right to recover until the full term of expectancy 
 has expired. ' ' It was held that the beneficiary named in the certifi- 
 cate was not entitled to maintain an action thereon on the theory 
 that the insured had disappeared and was not heard of or seen for a 
 period exceeding seven years, without alleging that the full term of 
 the member's expectancy had expired. 
 
 Porter vs. Home Friendly Society, March 12th, 1902, 114 Ga. 937. 
 
 Agent's Power — Estoppel. 
 
 "Where it was provided in a benefit certificate that "no agent has 
 authority in any manner to nuike, alter, or discharge contracts," 
 the beneficiary was held not entitled to maintain an action against 
 the society on the theory that one of its agents had made an agree- 
 ment with such beneficiary to the effect that if the latter would pay 
 the premiums, etc., for the specified number of years, the amount of 
 the insurance would be paid her. 
 
 Porter vs. Home Friendly Society, March 12th, 1902, 114 Ga. 937. 
 
 Beneficiary — Not Entitled to Take. 
 
 In a suit against a society by one who had been named as benefi- 
 ciary in a certificate, and who did not belong to the class from which 
 the member was authorized to select a beneficiary, it is proper for 
 the court to direct a verdict in favor of the society. 
 
 Union Fraternal League vs. Walton, Nov. 28th, 1900. 112 Ga. 315.
 
 1^4 FRATERNAL SOCIETY LAW 
 
 Agency — Beneficiary — Estoppel. 
 
 "Where it was provided in a certificate that "no agent or member 
 or other party than the President or Secretary of such order" shall 
 have the right to change the conditions of the contract, or to agree 
 to any modification thore( f. cr in any other way to alter or amend 
 the same, or release any of its conditions, the fact that other agents 
 of the society than those mentioned, knew that the person named as 
 beneficiary in a certificate did not belong to the class from which 
 the member was authorized to make a selection, did not estop the 
 society from calling in question this i)erson's right to the fund. 
 
 Union Fraternal League vs. Walton, Nov. 28th, 1900, 112 Ga. 315. 
 
 After-enacted Laws. 
 
 An after-enacted by-law will be given a prospective operation oul\- 
 in the absence of a clear intent that it shall act retrospectively. 
 
 Ancient Order of United Workmen vs. Brown, Jan. 24th, 1901, 112 
 Ga. 545. 
 
 Forfeiture — Promissory Warranty. 
 
 "Where it is provided in a contract that the society shall not lie 
 held responsible if the health of a member shall become impaired by 
 the use of narcotics, or alcoholic, vinouS, or malt liquors, it is held 
 that this stipulation amounts to a promissory warranty on the part 
 of a member, and that the breach thereof will work a forfeiture. 
 
 Waters vs. Supreme Conclave Knights of Damon, July 23rd, 1S9S. 
 105 Ga. 151. 
 
 Member's Admissions Bind Beneficiary. 
 
 Admissions or declarations by a member made before his eertiti- 
 eate is issued are admissible against the beneficiary in a case wIumt 
 it is within thi' power of a member to change the beneficiary. 
 
 Supreme Conclave Knights of Damon vs. O'Coniipll, March ISth. 
 1899, 107 Ga. 97.
 
 THE t^TATE OF GEORGIA 115 
 
 Suspension of Member. 
 
 For the facts iu a case involving the suspension of a member for 
 non-payment of assessments, in which case there was no provision 
 in the contract for such suspension, see : 
 
 Warwick vs. Supreme Conclave Knights ot Damon, MarclT IStli. 1S99, 
 107 Ga. 115. 
 
 Suspension — Reinstatement Personal. 
 
 Where the by-laws require members to make payment of the 
 assessments by a certain day in each month, or subject themselves 
 to suspension, a failure to pay his assessments within the time 
 required, and his failure to pay was reported to the lodge, upon 
 which the lodge took affirmative action iu suspending the member, 
 and the member died thereafter without having been reinstated, 
 the society is not liable on the contract. In this case it is held that 
 the offer of a third person to make payment after the expiration of 
 the ]iro]ior time to pay the assessment.s of the delinquent could not 
 bind the society. 
 
 Supreme Conclave Knights of Damon vs. Warwick, July 5th, 1900, 
 110 Ga. 3SS. 
 
 Beneficiaries — "Family." 
 
 For a death benefit payable to the family of a deceased, those 
 persons whose relationship to the deceased are legally connoted in 
 the word "family," are entitled to sue, and not his personal repre- 
 sentative. 
 
 Jackson vs. Brothers and Sisters of Promise, Court of Appeals of 
 Georgia, Oct. 1907, 59 S. E. 11. 
 
 Forfeiture Clauses not Favored. 
 
 The provision in the laws of a society M'ei"e to the effect that "no 
 member shall be entitled to benefits who has not paid dues and as- 
 sessments in advance," and that "members whose dues remain un- 
 paid for two months shall be dropped from the roll and lose all
 
 11(5 FRATERNAL SOCIETY LAW 
 
 elaims to membership" were held not to create ipso facto a for- 
 feiture of benefits. There must be some judicatory or affirmative 
 action by the society, declaring the member suspended or expelled. 
 
 Starnes vs. Atlanta Police Relief Assn., June, 1907, Court of Appeals 
 of Ga., 58 S. E. 481. 
 
 Beneficiary Definition of "Family." 
 
 The word '"family" used in the laws of a society to designate the 
 class to which the beneficiaries must belong, was held to include 
 any relative who lives ^^^th the member and who is dependent upon 
 him, or with whom the member lives, and upon whom he is de- 
 pendent for support, and is cared for at the time of his death. The 
 Court said "This combines the family relation .with the fact of 
 dependence, both of which we think .should exist in such case." The 
 rule as stated above is from the Court's opinion, but a majority of 
 the members of the Court concurred upon a proper construction of 
 the word "familj^, " in a separate opinion, and gave the word a 
 larger meaning than that given above. The majority membei-s of 
 the court said. "It is a word which may vary in meaning according 
 to the conditions concerning the member at the date of his death. 
 From a review of the decision we deduce the following order of pre- 
 cedence which should ordinarily be observed in determining who 
 are entitled to take under the words "family of the member.' or 
 similar designation: (1) Wife and unmarried children, minor or 
 adult; Or, if no unmarried children, ("2) wife alone; or, if no wife, 
 (3) unmarried children alone; or, if no wife and no unmarried chil- 
 dren (4) perspns related by consanguinity, or affinity, living with 
 the member in the same household : or, if none of these, (5) any per- 
 son related by consanguinity or affinity upon whom the member is 
 dependent; or, (6) any person related by consanguinity or affinity, 
 depending on and supported by the member; or, if none of these. 
 (7) married children, irrespective of dependency ; or. if none of 
 these, (8) father, mother, brothers and sisters, irrespective of active 
 household connections and irrespective of llu' question of depen- 
 dence; in some instances even further extension may be made, if 
 necessary, in order to find a beneficiary. The existence of the benefit 
 connotes a contemplated beneficiary, if possible."
 
 THE STATE OB' GEORGIA 117 
 
 Starnes vs. Atlg-nta Police Relief Assn., June, 1907, Court of Appeals 
 of Ga., 58 S. E. 481. 
 
 Tenders Need Not Be Repeated. 
 
 A tender of the payment actually made in good faith, and posi- 
 tively declined, need not be repeated in order to prevent a for- 
 feiture of a certificate. 
 
 Starnes vs. Atlanta Police Relief Assn., June, 1907, Court of Appeals 
 of Ga., 58 S. E. 481. 
 
 Forfeiture by Member's Violation of Criminal Law. 
 
 A certificate provided that if the death was "caused or super- 
 induced at the hands of justice" the full amount of the certificate 
 should not be recovered. The Georgia Code provides that "death 
 by suicide or by the hands of justice, either punitive or preventive, 
 releases the insurer from the obligations of his contract." Civ. code 
 1895, § 2118. The member holding a certificate with the first quota- 
 tion contained therein was killed by a husband under circumstances 
 which warranted the lielief that the member was guilty of adultery 
 with the wife of the husband. The court held that "the word 'puni- 
 tive' certainly referred to death inflicted by an officer of the law 
 in obedience to the commands of the law. The word 'preventive' 
 must be construed to refer to a killing by an authorized officer of the 
 law, or a private person for the time being in the attitude of a public 
 officer; as a member of the .sherifi"s posse, or the like, under these 
 circumstances where the law authorizes the taking of human life 
 in the advancement of public justice. It cannot be properly inter- 
 preted to ever include the killing by a private person to avenge or 
 prevent a private wrong, this though the circumstances be such that 
 the homocide is justifiable." Another provision in the certificate 
 was to the efl:'ect that the Society should not be liable for the full 
 amoiuit of the certificate if the killing "was caused or superinduced 
 by a violation of the criminal law." And it was claimed that the 
 member lost his life as the result of having committed the offense 
 of adultery with the wife of a person that did the killing. The 
 Court reviewed the various authorities on the latter proposition and 
 announced its holding in the following language: "If the insured
 
 lly FliATEh'XAL SOCIETY LAW 
 
 commits au act which is a vidlatimi ot the law. and u liich he knows 
 puts his life in peril at the time he commits it, the company is not 
 liable under a policy eoutaiuing a stipulation of the character now 
 befox-e us. But, there must be something in the act itself, inde- 
 pendent of other circumstances, which makes the death the reason- 
 able consequence. Death may follow the commission of any viola- 
 tion of law, when a felony ; for the arresting officer is authorized to 
 kill under certain circumstances in order to effect an arrest, as in 
 the case where an insured robbed the state treasurer, he knew that 
 under the law of the land the arresting officer, or in some circum- 
 stances, even a private person, would have the right to slay him in 
 order to take him, but his death resulting from the effort to arrest 
 him was not the reasonable and legitimate consequence of the rob- 
 bery he had committed a few minutes before. One who commits the 
 offense of adultery with a-married woman well knows that his life 
 is imperiled if the outraged husband takes the guilty pair in the 
 unlawful act, or at its beginning, or at its conclusion ; but it cannot 
 be said as a matter of law that the killing of the adulterer is the 
 natural and legitimate consequence of the illicit intercourse between 
 him and the wife of the wronged husband. Death might result, 
 but it cannot be any more said that death of the adulterer at the 
 hands of the husband is the reasonable and legitimate consequence 
 of the act of adultery than it can be said that the death of a felon 
 at the hands of an arresting officer is the reasonable and legitimate 
 consequence of the felony committed." 
 
 Supreme Lodge of Knights of Pythias vs. Crenshaw, August, 1907, 
 Supreme Court of Ga.. 58 S. E. 628.
 
 THE TEHUITORY OF HAWAII 119 
 
 THE 
 
 TERRITORY OF HAWAII. 
 
 CHAPTER 12. 
 
 There is no statute law of the Territory of Hawaii that in express 
 terms applies to fraternal benefit societies. These societies are not 
 in terms exempt from the operation of the insurance laws of the 
 Territory, and for that reason such provisions of the General In- 
 surance Jaws of the Territory as might under a liberal construction, 
 be held to apjily to fraternal benefit societies, are herein set forth. 
 The provisions set out are from Chapter 159 of the Revised Laws of 
 the Territory of Hawaii, as amended by Act 77 of the Session Laws 
 of 1905, and Act 124 of the Session Laws of 1907. 
 
 Commissioner — Qualification — Forms. 
 
 Section- 2599. There shall be a department charged with the exe- 
 cution of the laws relating to insurance, to be known as the insur- 
 ance department, the chief officer of which shall be the Territorial 
 treasurer, who shall be ex-offieio insurance commissioner. Neither 
 the insurance commissioner nor any of his deputies or clerks shall be 
 directly or indirectly interested in any insurance corporation or 
 insurance business except as a policy holder. All necessary forms, 
 circulars and blanks, together with such pamphlet copies of the 
 insurance laws as may be required for distribution to any person 
 at any time by the provisions of this chapter, shall be furnished at 
 the expense of the Territory. 
 
 Deputy Commissioner. 
 
 Section 2600. The insurance commissioner shall appoint a deputy, 
 and in the absence of the commissioner or his inability from any
 
 120 FRATERNAL SOCIETY LAW 
 
 cause to exercise the powers and discharge the duties of his office, 
 the powers and duties of the office shall devolve on the deputy. 
 
 Report to Legislature. 
 
 Section 2601. The commissioner shall transmit to each legislature 
 at the beginning of its regular session, or within ten days thereafter, 
 a report containing a summary of the statements and reports made 
 to him pursuant to the in'ovisious of this chapter, classified, which re- 
 port shall also contain : 
 
 First, a statement of all the insurance companies or corporations 
 authorized to do business in this Territory during the biennial period 
 ending the thirty-first day of December next preceding, with their 
 names, locations, capital stock, paid-up capital, dates of organization 
 and of the commencement of business in this Territory, and kinds 
 of insurance in which the.y are engaged respectively. 
 
 Second, the receipts and disbursements of the insurance depart- 
 ment during the same period. 
 
 Third, any amendment to the insurance law which, in his judg- 
 ment, are demanded for the better protection of the insured and the 
 people. 
 
 Powers and Duties. 
 
 Section 2602. The commissioner shall see that all laws of this 
 Territory respecting insurance companies and corporations are faith- 
 fully executed. He shall have power to examine all books and 
 accounts of any companies or corporations doing business in this 
 Territory, that are organized under the laws of this Territory; to 
 examine their officers and employees under oath ; to issue Rub])oenas 
 for witnesses to attend and testify before him in regnrd to tlie busi- 
 ness of said companies and corporations, and produce for examina- 
 tion and investigation books, papers and documents in relation 
 thereto. Said subpoenas must be served in the same manner as if 
 issued from a court, and any (tcrson wlm shall fail, neglect or refuse 
 to obey any sucli subpixnia shall be deemed guilty of a misdemeanor 
 and upon conviction thereof shall be pimished by a fine of not more 
 than one hundred dollars.
 
 THE TBKHiroKY OF IIAM'AII 121 
 
 Certificate of Authority. 
 
 Section 2603. The commissioner shall i.ssue to any insurance 
 company or corporation a certificate of authority to transact busi- 
 ness in this Territoiy under the following conditions: 
 
 First — If a company or corporation organized under the laws of 
 this Territory, when he is satisfied that the provisions of this chapter 
 in relation to such company or corporation have been complied with ; 
 
 Second — If a company or corporation organized outside of the 
 Territory of Hawaii, when he is satisfied that the company or 
 corporation has a paid-up and unimpaired capital or net surplus of 
 not less than one hundred thousand dt>llars. 
 
 Charter, Etc., to be Filed. 
 
 Section 2604. The commissioner shall cause every company or 
 cor])oration before engaging in the business of insurance in this 
 Territory to file in his office as follows : 
 
 First — If incorporated under the laws of this Territory, a copy of 
 its articles of incorporation witli any amendments made thereto ; 
 
 Second — If incorporated under the laws of any other State or 
 country, a copy of its articles of incorporation or charter, certified 
 by the officer having the custody of such articles, which certificate 
 shall also state that it is organized under the laws of such State or 
 country, that it is authorized to do business therein, and the amount 
 of the capital stock, or net surplus. 
 
 Term and Revocation of Certificate. 
 
 Section 2605. Every certificate of authority granted pursuant 
 to the provisions of this chapter to an insurance company or cor- 
 poration to do business in this Territory, shall expire on the fifteenth 
 day of April after the date of issuance. 
 
 The statements and evidence of investment required by this chap- 
 ter to be filed in the office of the commissioner before a certificate 
 of authority is granted to a company, shall be renewed from year 
 to year, as prescribed in Section 2609. 
 
 If the commissioner is not satisfied that the capital, securities and 
 investment remain secure, and that it may be safely intrusted with
 
 122 FRATERNAL SOCIETY LAW 
 
 a continuance of its authority to do business in this Territory, he 
 sluill revoke its certificate of authority. 
 
 Publication of Revocation. 
 
 Section 26iH>. When the license or authority of any insurance 
 company or corporation doing business in this Territory has been 
 revoked by the commissioner, the revocation shall be jniblished four 
 times in some newspaper of general circulation published in this 
 Territory. 
 
 Business Without Certificate, Unlawful. 
 
 Section 2607. It shall l)o unlawful for any company or corpora- 
 tion to transact the business of insurance in this Territory unless it 
 shall have complied with all of the provisions of this chapter and 
 obtained a certificate of aTithority from the commissioner as in this 
 chapter provided. 
 
 Business Without Certificate — Penalties. 
 
 Section litiOS. If any insurance company or corporation, its agents 
 or attorney's shall solict insurance or shall issue a policy without 
 having complied with the provisions of this chapter, the company 
 or corporation, or its agents or attorney so issuing the jiolicy or 
 accepting the application for the same shall be guilty of a misde- 
 meanor and be subject to a fine not less than one hundred dollars 
 nor more than five hundred dollars. If any insurance company or 
 corporation licensed to do business in this Territory shall violate 
 any of the provisions of this chapter, the commissioner shall have 
 power, upon notice and satisfactory proof thereof, to revoke the 
 license of such company or corporation to do business in this Terri- 
 tory, and such insurance company or corporation shall not again 
 he re-admitted to do business in this Territory until it shall have 
 paid into the treasury of the Territory the sum of five hundred dol- 
 lars as a pcnnlly for such \'ii)latiiin. 
 
 Agents — License — Penalty. 
 
 Section 2(1(11). .\" piTsmi sliall act ;is agrnt fni- any insui'ance com-
 
 THE TEHltlTOllV OF HAWAII 123 
 
 paijy or (Mirporatiuu in tlic transaction oi' any oi' its hiisiiicss in this 
 Territory, or negotiate for or place risks for any sucli orjiani/.atioii 
 or in any way or manner aid such organization in effecting insurance 
 in this Territory, unless such organization shall have fully complied 
 with the provisions of this chapter. Every such person before com- 
 mencing business, ami on or before the fifteenth day of each April 
 thereafter, shall produce a license of authority from the insurance 
 commissioner, which license shall grant the privilege of soliciting 
 and writing for any and all kinds of insurance in this Territory. Any 
 person violating the ju'ovisioiis of this section shall forfeit to the 
 people of the Tei'rilory the sniii ot H\'e Imiiiireil ddll.-irs for the first 
 offense, and an aiklitional snni of one hiimli'eil ili}||ars for each 
 month during which any sucli jiei'son shall eontinne to act for any 
 unauthorized insurance company oi- corporation, or to aid in effect- 
 ing unauthorized business or insurance in this Territm-y. 
 
 Section 2(J(t!JA. Every person, firm or corporation who in this 
 Territoi'v ju'ocures, agrees to jirocure or- assist in procuring in- 
 surance for a person, firm or corporation of this Territory, or for 
 a foreign corporation doing business in this Territory, from any 
 insurance company, corporation or association not licensed to do 
 business within this Territory, shall be guilty of a misdemeanor, 
 and, upon conviction, be jumished by a fine not to exceed five hun- 
 dred dollars for each offense ; provided, however, that the Insurance 
 commissioner may issue a license to any person residing in this Ter- 
 ritory, subject to revocation at any time, permitting the i)erson 
 named therein to procure policies of insurance on risks located in 
 this Territory in insurance cinnpanies not authorized to transact 
 business in this Territory, and for such license the Insurance Com- 
 missioner shall collect for the Territory an annual fee of twenty- 
 five dollars. Said license shall be valid until the fifteenth day of 
 April of each year. 
 
 Before the person named in such license shall ])rocure any insur- 
 ance in such companies on any such property, he shall in every case 
 execute and file with the Insurance Commissioner an affidavit that 
 he is unable to procure for a specified person, firm ov corporation in 
 a majority of the companies authorized to do business in the Terri- 
 tory the amount of insurance necessary to jirotect said property. 
 
 Every jierson so licensed shall keep a sejiarate account of the
 
 124: FRATERNAL SOCIETY LAW 
 
 business done under said license, open at all times to the inspection 
 of the Insurance Commissioner, and shall file a certified copy thereof 
 forthwith with the Insurance Commissioner, showing the exact 
 amount and character of such insurance placed for any person, firm 
 or corporation, the gross premiums charged thereon, the companies 
 in which the same is placed, the dates of the policies and the terms 
 thereof, the location of the insured property and also a report in the 
 same detail of all such policies cancelled and the gross return 
 thereon. 
 
 Before receiving such license, the person licensed shall execute 
 and deliver to the Insurance Commissioner a bond in the penal sum 
 of two thousand dollars, with such sureties as the Commissioner 
 shall approve, conditioned that the licensee will faithfully comply 
 with all the requirements of this section, and will file with the 
 Insurance Commissioner on or before June first of each year, a 
 sworn statement of the gross premiums charged for insurance pro- 
 cured or placed, and the gross return premiums on such insurance 
 cancelled under such license during the year ending on the thirty- 
 fii-st day of December last preceding, and will paj^ to the Insurance 
 Commissioner of the Territory of Hawaii, for the use and benefit 
 of said Territory, an amount equal to four per cent, of such gross 
 premiums, less such return premiums so reported, and in default of 
 the payment of any sum imposed by this section, the said Insurance 
 Commissioner may sue for same in any court of record in this 
 Territory. 
 
 Any person, firm, company or corporation for whom such insur- 
 ance as herein specified shall have been efl'ected, whenever required 
 by the Insurance Commissionr so to do, shall produce for examina- 
 tion by him the policy or policies issued for such insurance, and dis- 
 close to him the true amount of the gross premiums agreed to be 
 paid therefor, and upon refusal so to do shall forfeit to the Territory 
 of Hawaii for each such refusal the sum of two hundred dollars, to 
 be recovei'ed in a civil action. All policies and insurance contracts 
 issued without full compliance, by all parties concerned, with the 
 requirements of this Act, and of the general insurance laws of the 
 Territory, are null and void.
 
 THE TERRITOHY OF HAWAII 125 
 
 Resident Agent Shall be Appointed — Penalty. 
 
 Section 2610. No iii.suraiKH' eomiuiny oi' uoqjoratioa licensed to 
 do hiisiiiuss ill this TexTitory shall accept any application I'or insur- 
 ance, nor shall it write, issue, or deliver any policy of insurance 
 covering- a risk located within this Territory except through a duly 
 appointed agent of such insurance company or corporation, who is 
 a bona fide resident, linn or corporation of this Territory, resident 
 herein, and licensed as agent of such insurance company or corpora- 
 tion by the Commissioner to write and solicit insurance for such 
 insurance company, corporation or association. The license of any 
 such insurance company or corporation which shall violate this 
 section shall be revoked by the commissioner, and such organization 
 shall not be again licensed to do business in this Territory until it 
 shall have paid into the treasury of the Territory the sum of five 
 hundred dollars as a license fee. This section does not apply to 
 the acceptance or effecting of reinsurance. 
 
 Power of Attorney — Service. 
 
 Section 2611. No insuranc(! company or corporation organized 
 outside of this Territory shall be permitted to do business in this 
 Territory until such company shall have filed with the Commissioner 
 a power of attornej', which shall authorize a resident of this Terri- 
 tory to make and accept service in any proceeding in any court in 
 this Territory or of the United States herein. If any attorney of an^^ 
 insurance organization, appointed under the provi.sions of this chap- 
 ter, shall remove from the Territory, or become disqualified in any 
 manner from accepting service, and if any resident of this Terri- 
 tory shall have any claim by virtue of any insurance policy issued 
 b.y any company or organization not represented by attorney in this 
 Territory, valid service ma.y be made on such company or organiza- 
 tion by sei'vice upon the Insurance Commissioner; provided, that 
 in such case the commissioner shall immediately notify such com- 
 pany by inclosing a copy of the same by mail, postpaid ; and pro- 
 vided further, that in case such proceeding shall be had within 
 sixty days after such service on the commissioner.
 
 P26 FRATERNAL SOCIETY LAW 
 
 Annual Statement. 
 
 Section 1^618. Every in.surniiee company doing business in this 
 Territoi\y shall : 
 
 First. Ou or before the loth clay of April of each year file a 
 statement with the Commissioner, verified by the oath of its princi- 
 pal executive officer residing witliiu this Territory, or by the princi- 
 pal executive officer of the company, Avhich statement shall show 
 the total business done in this Territory during the year ending the 
 31st day of December next preceding, and shall contain a complete 
 list of agents in this Territory; 
 
 Second. Make and file with the Commissioner before the fifteenth 
 day of April of each year a statement, verified by the oath of the 
 president or principal officer of such company, showing the condition 
 of such company on the 31st day of December next preceding, and 
 such statement shall show: 
 
 1. The amount of the capital .stock of the company. 
 
 2. The property or assets held by the same. 
 
 3. The liabilities of the company, which must in the case of fire 
 insurance companies include the re-insurance reserve estimated at 
 fifty per cent, of the outstanding premii;ms, and which in the case 
 of life insurance companies uuist be computed on the basis of either 
 the American experience or the combined experience table of mor- 
 tality, with interest at the rate of not less than four per cent, per 
 annum. 
 
 ■4. The income of the compan.y during the preceding year. 
 5. The total amount of risk outstanding on the 31st day of 
 December next preceding. 
 
 Of Foreign Organizations. 
 
 Section 261!l. Every organization foi-eigii to this Territory, its 
 agents and officers, shall always be required to malce the same state- 
 nu'iits and answer the same inquiries to the Insurance Commissioner 
 and in case of default be sub.ject to the same penalties and liabilities 
 as domestic organizations doing the same kind of business, or any 
 op tlie agents or officers thereof, are, or may be liable to. under the 
 laws of this Territory or the regulations of the insurance depart- 
 ment.
 
 THE TERRITORY OF HAWAII 127 
 
 Fees. 
 
 iSeetiou 2620. The Couiuiissioner sliall requiri; payment iu ad- 
 vance of the following fees : 
 
 For tiling- articles of incorporation, or certified copies of ar- 
 ticles, by-laws, or other certificates required to be filed in 
 
 his office $25.00 
 
 Fur issuing certificates of authority 10.00 
 
 For each renewal certificate of authority 10.00 
 
 For filing the annual statement of condition 10.00 
 
 For filing each annual statement of business transacted in the 
 
 Territory 10.00 
 
 For filing any other paper ; 1.00 
 
 For furnishing copies of papers filed in his office, per folio . . . .2.5 
 
 For certifying copies, each 1.00 
 
 For Agent's license for each company represented 2.00 
 
 All moneys collected under this chapter shall be paid into the 
 treasury of the Territory as a government realization. 
 
 Taxes — Penalty. 
 
 Section 2621. All insurance companies or corporations doing busi- 
 ness in this Territory must file with the Commissioner annually, on 
 or before the first day of June, in each year hereafter, a statement 
 under oath, setting forth the amount of gross premiums received by 
 said companies or corporations during the year ending December 
 '■\1. next preceding, from all risks located in, and all business done, 
 within this Territory. All such insurance companies or corpoi-atimis, 
 except life insurance companies, shall pay to the Treasurer through 
 the Insurance Commissioner a tax of two per cent, on the gross 
 premiums received from all risks located in, and from all marine 
 business done within this Territory during the year ending on the 
 preceding 31st day of December, less return jiremiums. re-insurance 
 in companies or corporations authorized to do business in this Ter- 
 ritory and losses actually paid to policy holders. And if a life in- 
 surance company, shall pay to the Treasurer through the Insurance 
 Commissioner a tax of two per cent, on the gross premiums received 
 from all business done within this Territoi*y during the year ending 
 on the preceding 31st day of December less return premiums, re-
 
 128 FRATERNAL, SOCIETY LAW 
 
 insurance in companies or corporations authorized to do business 
 in this Territory, death claims, payments made to policy holders, 
 and actual operating and business expenses; which taxes when 
 so paid shall be in settlement of all demands of any taxes or licenses 
 or fees of every character imposed by the laws of the Territory, 
 excepting property taxes, and the fees set forth in Section 2620, 
 for conducting said business of insurance in said Territory. Said 
 taxes shall be due and payable on the first day of July succeeding 
 the filing of the statement provided for in this chapter. Any organ- 
 ization failing or refusing to render such statement and to pay the 
 required taxes above stated for more than thirty days after the time 
 so specified, shall be liable to a penalty of $25.00 for each day of 
 delinquency, and the taxes may be collected by distraint, and the 
 penalty recovered by an action to be instituted by the Commissioner 
 in the name of the Territory, in any court of competent jurisdiction, 
 and the Commissioner shall revoke and annul the certificate of 
 authority of such delinquent organization until such taxes and fine, 
 should any be imposed, are fully paid. 
 
 Sick Benefits — Evidence, 
 
 In an action against a society for sick benefits, the records of a 
 similar former action are admissible to show the status of the 
 plaintiff as a member of the society, and entitled to such benefits 
 at the date from which such benefits were claimed, 
 
 De Fraga vs. Portuguese Mutual Benefit Society of Hawaii, Oct. IStli, 
 1895, 10 Hawaii 128. 
 
 Members May Resort to Civil Courts. 
 
 A member of a society may sue for sick benefits in a court of law, 
 if he has not been allowed a fair hearing in the tribun^als of the 
 society. 
 
 De Fraga vs. Portuguese Mutual Benefit Society of Hawaii, Oct. 18th, 
 1895, 10 Hawaii 128.
 
 THU TtUilUroUY OF II AW Alt ]29 
 
 Beneficiary — Dependency. 
 
 For the facts in a ease liolding that a father aged 60 years and a 
 cripple, who had a wife of the same age to sii})port, and to whose 
 support the member in his lifetime had contributed his wages, was 
 entitled to take the benefit due ui>iin a membership by the member, 
 see: 
 
 Daniel vs. Portuguese Mut. Benefit Society of Hawaii, Nov. 23rd, 
 1896, 10 Hawaii 518. 
 
 Liability for Agent's Negligence. 
 
 A life insurance company was held liable for the negligence of 
 an agent in failing to forward promptly and within a reasonable 
 time an application for insurance, and by reason of snch negligence, 
 the member dying before the application was passed upon, the bene- 
 ficiary was entitled to damages, and the measure of damages in the 
 case was stated to be the amount for which the policy would have 
 been issued had the applicant been received into the society. 
 
 Carter vs. Manhattan Life Insurance Co., June 16th, 1897, 11 Hawaii 
 69. 
 
 Contracts — Waivers Not Allowed. 
 
 Where a contract of insurance provided that no agent of the 
 society, except an officer, should have power to waive any provision 
 or condition of a contract, unless such waiver was in writing upon, 
 or attached to the contract, proof was rejected of the oral waiver 
 by an agent. 
 
 Boardman vs. Firemen's Fund Ins. Co., Feb. 7th, 1902, 14 Hawaii 21. 
 
 Beneficiary — Legal Heirs. 
 
 The proceeds of an insurance contract, which was by its terms 
 payable to the member's legal heirs, had been collected by the ad- 
 ministrator of the deceased member's estate, were held not to be
 
 130 FRATERNAL SOCIETY LAW 
 
 assets of the estate of the member, and the administrator was de- 
 creed to pay them to the legal heirs of the member. 
 
 In Re Estate of Scrimgeour, Nov. 6th, 1905, 17 Hawaii 122.
 
 THE STATE OF IDAHO 131 
 
 THE 
 
 STATE OF IDAH(3. 
 
 CHAPTER 13. 
 
 (The section uuiubers are from the Revised Statutes of Idaho.) 
 
 Fraternal Beneficiary Association, What is — Government of — Benefit 
 Fund — Benefits — to Be Paid to W^|om, Etc. 
 
 Section 2246. A fraternal beneficiary association is hereby de- 
 clared to be a corporation, society or voluntary association, formed 
 or organized and carried on for tlie sole benefit of its members and 
 their beneficiaries, and not for profit. Each association shall have 
 a lodge system, with ritualistic form of work and representative 
 form of government, and shall make provision for the payment of 
 benefits in case of death, and may make provisions for the paj'ment 
 of benefits in case of sickness, temporary or permanent physical 
 disability, either as the result of disease, accident or old age : Pro- 
 vided, That the period in life at which payment of physical disability 
 benefits on account of old age commences and shall not be under 
 seventy (70) years, subject to their compliance with its constitution 
 and laws. The fund from which the payment of such benefits shall 
 be made, and the fund from which the expense of such association 
 shall he defrayed sluill lie derived from assessments or dues collected 
 from its members. Payments of death benefits shall be to the 
 families, heirs, blood relatives, affianced husband or affianced wife of, 
 or person dependent upon the member. Such associations shall be 
 governed by this chapter and shall he exempt from the provisions of 
 the insurance laws of this State and shall not pay a corporation or 
 other tax, and no law hereinafter passed shall apply to them unless 
 they be expressly designated therein. And such fraternal beneficial
 
 132 FKATERNAL i<OCIETY LAW 
 
 associatiou may create, maiiitaiu. disburse and apply reserve or 
 emergency funds in accordance with its constitution or by-laws. — 
 (1901, 6th Ses. p. 175. Sec. 1.) 
 
 Associations Already Formed, to Comply. 
 
 Section 2247. All such associations coming within the description 
 as set forth in the preceding section, organized under the laws of 
 this or any other State, province or Territory, and now doing busi- 
 ness in this State, may continue such business : Provided, That thej^ 
 hereafter comply with the provisions of this chapter regulating an- 
 nual reports and the designation of the commissioner of insurance 
 as a person upon whom process may be served, as hereinbefore pro- 
 vidd.— (1901, 6th Ses. p. 176. See. 2.) 
 
 Foreign Associations. 
 
 Section 2218. Any such association organized under the laws of 
 any other State, Province or Territory and now doing business in 
 this State shall be admitted to do business within this State, when 
 it shall have filed with the commissioner of insurance a duly certified 
 copy of its charter and articles of association and a copy of its con- 
 stitution or laws, certified to by its secretary or corresponding officer, 
 together with an appointment of the commissioner of insurance of 
 this State as a person upon whom process shall be served as herein- 
 after provided : And, provided, That such association shall be shown 
 to be authorized to do business in the State, Province or Territoiy in 
 which it is incorporated or organized, in case the laws of such State, 
 Province or Territory shall provide for such authorization ; and in 
 case the laws of such State, Province or Territory do not ])rovide 
 for any formal authorization to do business on the part of any sucli 
 association, then such association shall be shown to be conducting its 
 business within the provisions of this chapter for which purpose the 
 commissioner of insurance of this State may personally or by some 
 person to be designated by him, examine into the condition of affairs, 
 cliaracter and business nu^hods, accounts, books and investments 
 of such associaticui at its home ot'lioe. wliieli cxaiiiiiialiDn shall be at 
 the expense of such associatiou, and shall be made within thirty 
 days after demand thereof, and the expense of such examination
 
 THE STATE OF IDA 110 133 
 
 shall be limited to fifty dollars: Provided, Such person appointed 
 to examine into the affairs of any fralernal beneficiary association 
 shall not be a member of, or in anywise connected with said frater- 
 nal beneficiary association. — (1901, (itli Ses. p. 176, Sec. 3.) 
 
 Fraternal Beneficiary Association to Make Reports — Contents. 
 
 Section 2249. Every such association doing business in this State 
 shall, on or before the first daj* of March of each year, maice and 
 file witli the commissioner of insurance of this State a report of its 
 affairs and operations during the year ending on the 31st day of 
 December immediately preceding, which annual report shall be in 
 lieu of all other reports required by any other law. Such report 
 shall be ui)on blank forms to be provided by the commissioner of 
 insurance, or may be printed in pamphlet form, and shall be verified 
 under oath, by the didy authorized officers of such association, and 
 shall be pxdjlished, or the substance thereof, in the annual report of 
 the commissioner of insui-aiici' niulcr a scpai-atc pai't entitled '"Fra- 
 ternal beneficiary assoeiation " and shall contain answers to the fol- 
 lowing questions: 
 
 1. Number of certificates issued during the year, or members 
 admitted. 
 
 2. Amount indemnity affected thereby. 
 
 3. Number of losses or benefit lialiilities incurred. 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representatives 
 or heirs. 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 S. Number and kind of claims comprised or resisted and brief 
 statement of reasons. 
 
 9. Does association charge anniuil oi' jieriodical dues or admission 
 fee? 
 
 10. How much on each one thousand dollars, annually or per 
 capita, as the case may be? 
 
 11. Total amount received, from what source, and the disposition 
 thereof.
 
 134 FRATERNAL SOCIETY LAW 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does association guarantee iu its certificate tixed amount 
 to be paid regardless of amount realized from assessments, dues, ad- 
 mission fees and donations? 
 
 l-i. If so, state amount guaranteed, and the security of such 
 guarantee. 
 
 15. Has the association a reserve or emergency fund? 
 
 16. If, so, how is it created and for what purpose, the amount 
 thereof, and how invested? 
 
 17. lias the association more than one class? 
 
 IS. If so. how many and the amount of indemnity in each? 
 
 19. Number of members in each class. 
 
 20. If voluntary, so state and give date of organization. 
 
 21. If organized under the laws of this State, \mder what law 
 and at what time : giving chapter and year and date of passage of 
 the act? 
 
 22. If organized under tlie hiws of any other State, Province or 
 Tei-ritory, state such fact and date or organizMtion. giving chapter 
 and j^ear and date of passage of the act. 
 
 23. Number of certificate of beneficiary membersliip lapsed 
 during the year. 
 
 24. Number in force at the beginning and end of .year; if more 
 than one class number in each class. 
 
 25. Names and addresses of its presidents, secretary and treas- 
 urer-, or corresponding officer. 
 
 Tile commissioner of insurance is authorized and empowered to 
 address any additional inquiries to any such association in relation 
 to the matter embraced in such report, and such officers of such 
 association as the commissioner of insurance may require shall 
 promptly reply in writing, under oath, to all such inquiries. — (1901, 
 6th Ses. p. 177, See. 4.) 
 
 Service of Process on Fraternal Beneficiary Association. 
 
 Section 2250. Eaeli association now doing or hereafter admitted 
 to do business within this State, not having its principal office in this 
 State, and not having organized \mder the laws of this State, shall 
 apjioint, in writing, the commissioner of insurance and his sue-
 
 THE STATE OF IDAHO 135 
 
 cessors in office to be its true and lawful attorneys and upon whom 
 all lawful process- in any action or proceeding against it may be 
 served and in such writing shall agree that any lawful process 
 against it, which is served on said attorney sliall be of the same 
 legal force and validity as if served upon the association, and that 
 the authority shall coutiuue in force so long as any liability remains 
 outstanding in this State. Copies of such certificate, certified by 
 said commissioner of insurance, shall be deemed sufficient evidence 
 thereof and shall be admitted in evidence with the same force and 
 effect as the original thereof might be admitted. Service upon such 
 attorney shall be deemed sufficient service ujiou such association. 
 When legal process against any such' association is served upon said 
 commissioner of insurance, he shall immediately notify the associa- 
 tion of such service by letter, prepaid and directed to its secretary 
 or corresponding officer, and shall, within two days after such 
 service, forward in the same manner a copy of the process served 
 on him to such officer. The plaintiff in such jiroeess so served shall 
 pay the eommis.sioner of insurance at the time of such service a fee 
 of three dollars which shall be recovered by him as part of the 
 taxable costs, if he prevails in the suit. The commissioner of in- 
 surance shall keep a record of all process served iipon him, which 
 record shall show the day and hour when such service was made 
 and by whom made.— (1901, 6th Ses. p. 178, Sec. 5.) 
 
 Permit to Do Business — How Obtained. 
 
 Section 2251. The commissioner of insurance of this State shall, 
 upon the application of any association having the right to do busi- 
 ness within this State, as provided in this chapter, issue to such 
 association a permit, in writing, anthori;^ing such association to do 
 business within this State, for which certificate and all proceedings 
 in connection therewith such association shall pay to said commis- 
 sioner of insurance the fee of five dollars. — (1901. 6th Sees. p. 179. 
 Sec. 6.) 
 
 How Incorporated. 
 
 Section 2252. Fraternal beneficial associations shall be incorpor-
 
 2^36 FRATERNAL SOCIETY LAW 
 
 ated in mauiier as now is or may be iiereinafter pi-ovidi-d by law. — 
 (1901, 6th Ses. p. 179, Sec. 7.) 
 
 Association Shall Not Employ Agents— When. 
 
 Section 2253. Such association shall not employ paid agents in 
 soliciting or procuring members except in the organization or build- 
 ing up of subordinate bodies or granting members inducements to 
 procure new members. — (1901, 6th Ses. p. 179, Sec. 8.) 
 
 Contract of Beneficiary to Pay Dues — Effect of. 
 
 Section 2254. No contract between a member and his beneficiary, 
 and the beneficiary or any person for him. by which said beneficiary 
 or an.y person for him. shall pay such member's assessments and 
 dues, or either of them, shall give the beneficiary a vested right 
 in the benefit certificate or in the benefit or deprive the member of 
 the right to change the name of the beneficiary, or revoke the certifi- 
 cate, if any issued by the association : Provided, That such change 
 or revocation be done by written or printed notice to the association 
 in the manner and form provided for by law. — (1901, 6th Ses. p. 
 180, Sec. 9.) 
 
 Benefits Not Liable to Attachments, Execution or Other Process, 
 Etc. 
 
 Sietion 2255. The money or other benefit, charity, relief or aid 
 already paid or to be paid, provided or rendered by any association 
 authorized to do business under this chapter, shall not be liable to 
 attachment or execution by trustee, garnishee or other process, and 
 shall not be seized, taken, appropriated or applied by any legal or 
 equitable ]irocess. or by the operation of law, to pay any debt or 
 liability of a certificate holder or any beneficiary named in the cer- 
 tificate, or any person who may have rights thereunder. — (1901, 6th 
 Ses. p. 180, Sec. 10.) 
 
 May Provide for Meetings of Legislative Body in Any Other State — 
 Vote of Subordinate Bodies in Other States. 
 
 Section 2256. Any such association organized nndor the laws of
 
 THE STATE OF IDAHO 137 
 
 this State may provide for the meeting of its legislative or govei'u- 
 iiig body ill any other State, Province or Territory wherein such 
 assoeiatioii shall have suboi'dinalc liodii's. ami all i)iisiness transacted 
 at siu'h meetings shall be \ a lie I in all respects, as if such meetings 
 were held within the State, and wiien the laws of any such associa- 
 tion provide for the election of ils officers b.v votes to be east in its 
 subordinate bodies the \dt(' so east in llic subordinate bodies in any 
 other State. Province or Territory, shall be valid as if cast within 
 this State.— (.1901, 6th Ses. p. 180, See. 11.) 
 
 Penalty for False and Fraudulent Statements. 
 
 Section 2257. Any jierson, officer, memiicr or examining ph.vsician 
 who shall knowingly or wilfully make any false or fraudulent state- 
 ment or representation in or with reference to an.y application for 
 membership, or for the purpose of obtaining any money or benefit 
 in any association transacting business under this chapter, shall be 
 guilty of a misdemeanor, and, upon conviction, shall be punished 
 b.y a fine not less than one hundred dollars nor more than five hun- 
 dred dollars, or by imprisonment in the county ,iail for not less 
 than thirty days nor more than one year, or by both, in the dis- 
 cretion of the court, and any person who shall wilfully make any 
 false statement of any material fact or thing in a sworn statement 
 as to the death or disability of a C(n'tificate holder in any such 
 association for the purpose of jirocuring payment of a benefit named 
 in the certificate of such holder, and any person who shall wilfully 
 make any false statement, in any verified report or declaration, 
 under oath required or authorized by this chapter, shall be guilty of 
 per.iury, and shall be proceeded against and punished as provided 
 by the statute of this State.— (1901. 6th Ses. p. 180, Sec. 12.) 
 
 Penalty for Refusing or Neglecting to Make Report — Duty of Com- 
 missioner of Insurance — Injunction, Etc. 
 
 Section 2258. Any svicli association refusing or neglecting to 
 make the report, as provided in this chapter, or to appoint the 
 commissioner of insurance as its true and lawful attorne.v for the 
 purpose of this chapter, shall be exchided from doing business within 
 this State. Said commissioner of insurance must, within sixty days
 
 138 FRATERNAL SOCIETY LAW 
 
 after failure to make such report, or in auy case such association 
 shall exceed its power or conduct its business fraudulently, or shall 
 fail to comply with any of the provisions of this chapter give 
 notice, in writing, to the attorney general, who shall immediately 
 commence an action against any such association to enjoin the same 
 from carrying on any business. And no injunction against such 
 association shall be granted by auy court, except on the application 
 of the attorney general at the request of the commissioner of insur- 
 ance. No such association so enjoined shall have authority to con- 
 tinue to do business until such report shall be made, or overt act 
 or violation complained of shall have been corrected and until the 
 cost of such action be paid by it : Provided, The court shall find that 
 such association was in default as charged. "Whereupon the com- 
 missioner of insurance sliall reinstate such association and not until 
 then shall such association be allowed to again do business in this 
 State. Any ofScer, agent, or person acting for any association or 
 subordinate body thereof within this State, while such association 
 shall be enjoined or prohibited from doing business pursuant to this 
 chapter, shall be deemed guilty of a misdemeanor, and. on convic- 
 tion thereof, shall be pimished by a fine not less than twenty-five 
 dollars nor more thn two hiindred dollars, or by imprisonment in 
 the county jail for not less than thirty days nor more than one year, 
 or by both such fine and imprisonment in the discretion of the 
 court.— (1906. 6th Ses. p. 181. Sec. 13.) 
 
 Failing to Comply With Chapter — Agent Guilty of Misdemeanor. 
 
 Section 2259. Any person wlio shall act within this State as an 
 officer, agent or otherwise for auy association which shall have 
 failed, neglected or refused to comply with, or shall have violated 
 any of the provisions of this chapter, or shall have failed or neg- 
 lected to procure from the commissioner of insurance a proper 
 certificate of authority to transact business as provided by this 
 chapter, shall be subject to the penalty provided in the last pre- 
 ceding section for the misdemeanor therein specified. — -(1901. 6th 
 Ses. p. 182. Sec. 14.)
 
 THE STATU OF IDAHO W.) 
 
 Fees For Report — Fraternal Beneficiary Association. 
 
 Section 2260. Every fraternal beneficiary society to which this 
 chapter is applicable sliall pay to the insurance commissioner for 
 filing annual statement as provided by this chaiiter, twenty-five 
 dollars.— (1901, Gth Ses. p. 182, Sec. 15.) 
 
 Chapter Not Applying to Masons, Odd Fellows, or Similar Orders. 
 
 Section 2261. This chapter shall not ajiply to any grand or sub- 
 ordinate lodge of the order of Free and Accepted Masons. Inde- 
 'pendent Order of Odd Fellows, as they now exist, nor to similar or- 
 ders or secret societies, nor to fraternal societies whose snbordinate 
 or national bodies pay nothing but funeral or weekly sick benefits, 
 nor to any organization conducted solely for benevolent and charit- 
 able purposes, whose members are employed by one corporation or 
 institution or by more than one similar corporation or institution, 
 or whose membershi]i is confined to one trade, ;ii-t or profession. — 
 (1901. 6th Ses. p. 182. Sec. 16.) 
 
 Agency of Collecting Officer. 
 
 Where it is expressl.y provided in the constitution of a society 
 that the secretary of a subordinate lodge shall collect and forward 
 to the supreme lodge all assessments paid by members, such secre- 
 tary is the agent of the supreme lodge, and the payment of assess- 
 ments by members to such secretary is payment to the supreme 
 lodge, notwithstanding the fact that the constitution contained a 
 provision in general terms that the officers of a subordinate lodge 
 are agents of the members and not agents of the supreme lodge. 
 
 Reert vs. Ancient Order of Red Cross. May 29th. 1902. S Idaho 409. 
 
 Privileged Communications — Physicians — Waiver of Exemptions. 
 
 A certificate issued by the Modern Woodmen provided that if the 
 member should die from small-pox there should be no liability. In 
 a suit involving the certificate, the cause of the member's death 
 being in issue, the testimony of the attending physician was ofi'ered 
 by the society and objection was made to the testimony on the
 
 14:0 FRATERNAL SOCIETY LAW 
 
 ground that it was privileged under tlie statutes of Idaho. The sec- 
 tion of the statutes involved in the ease is 5958 Revised Statutes, 
 providing as follows : 
 
 "There are particular relatioiis in which it is the policy of the 
 law to eucourage confidence and to preserve it inviolate. Therefore 
 a person cannot be examined as a witness in the following cases, 
 * * * * 4. — A phj'sieian or surgeon cannot without the 
 consent of his patient be examined in a civil action as to any infor- 
 mation acquired in attending the patient which was necessary to 
 enable him to prescribe or act for the patient." 
 
 There was contained in the application for membership upon 
 which the certificate of membership sued was issued, the followiug 
 provision, which was agreed to over the signature of the member : 
 
 "And I hereby expressly waive for myself and beneficiaries the 
 privileges or benefits of any and all laws which are now or may be 
 hereafter enforced making incompetent the testimony of or dis- 
 qualifying any physician fi'om testifying concerning any informa- 
 tion obtained by him in a professional capacity." 
 
 In passing iipon and determining the validity of the waiver con- 
 tained in the application and set out above the court reviewed the 
 leading authorities, and announced the law in the following lan- 
 guage : 
 
 "In the light of the foregoing authorities and with the under- 
 standing we gather as to the intention and purpose of the statute. 
 . we see no reason why the Court should not give force and effect to 
 the clause in the contract making the attending physician competent 
 to testify in all matters the same as other witnesses. In that view 
 of Ihe case there could be no question but that the testimony of Dr. 
 Taylor was properly admitted. The benefits of the waiver are 
 equally as available to the beneficiary as to the insurer." 
 
 Trull vs. Modern Woodmen of America, May. 1906, 12 Idaho 318; 
 85 Pac. 1081.
 
 THE STATI-: OF lLLl.\UJii 141 
 
 ruE 
 STATE OF ILLINOIS. 
 
 CHAPTER 14. 
 
 An Act to provide for the organization and management of fraternal 
 beneficiary societies for the purpose of furnishing life indemnity 
 or pecuniary benefits to beneficiaries of deceased members or 
 accident or permanent indemnity disability to members thereof, 
 and to control such societies of this State and of other States doing 
 business in this State, and providing and fixing the punishment 
 for violation of the provisions thereof, and to repeal all laws now 
 existing which conflict herewith, approved and in force June 22, 
 1893, and all acts amendatory thereof and supplemental thereto, 
 in force July 1, 1901, (amended May 23, 1907, by adding Sec. 4A). 
 
 Fraternal Beneficiary Society Defined — Funds — Benefits. 
 
 Section 1. A fraternal beneficiary society is hereby declared to be 
 a corporation, society or association formed, organized or carried on 
 for the sole benefit of its members and their beneficiaries, and not 
 for profit. Bach society shall have a lodge system, with ritualistic 
 form of Avork and representative form of government, and may make 
 provisions for the payment of benefits in case of disability and death, 
 or of either, resulting from either disease, accident, or old age, of 
 its members. Any such society, order or association may create, 
 maintain and disburse a reserve fund in accordance with its consti- 
 tution and by-laws. Such reserve fund, if any, shall represent cer- 
 tain prescribed accumulations or percentage- retained for the benefit 
 of its members or their beneficiaries, and no part thereof shall be 
 used for expenses, nor for any purpose except the payment of 
 death and disability claims; the pa.vment of such benefits in all 
 eases being subject to compliance by the member with the contract
 
 142 FRATERNAL SOiJlETY LAW 
 
 rules and laws of society: Provided, The period in life at which 
 payment of physical disability benefits on account of age may com- 
 mence shaU not be under seventy (70) years. The fund from which 
 the payments of such benefits shall be made, and the fund from 
 which the expenses of such societj' shall be defrayed, shall be de- 
 rived from assessments or dues collected from its members. Pay- 
 ments of death benefits shall only be paid to the families, heirs, 
 blood relations, afSanced husband or affianced wife of, or to persons 
 dependent upon the member: Provided, That a member having 
 no wife or children living may, with the consent of the society, 
 make a charitable institution his beneficiary; Provided, however, 
 That societies formed to include only the membership or any re- 
 ligious denomination may be permitted to provide that benefits 
 under their certificates of membership may be paid to religious or 
 charitable institutions. The members of any religious denomination 
 may incorporate under this act, and shall only be required to have 
 a lodge or branch system and a representative form of government. 
 Membership in such corporation shall be confined to the members 
 of such religious organization. Commercial travelers shall also be 
 allowed to incorporate under the provisions of this act, but member- 
 ship of such incorporation shall be confined to those actively en- 
 gaged as commercial travelers, and officers, buyers or sellers for 
 corporations, associations and co-partnerships, or individuals who 
 employ commercial traveling men. Such commercial travelers' in- 
 corporation shall have a lodge or branch system and representative 
 form of government. All such societies shall be governed by this 
 act, and shall be exempt from the provisions of all insur;iuce laws 
 in this State, and no law hereafter passed shall apply to them unless 
 they be expressly designated therein : Provided, That this act 
 shall not be construed to prevent any society having a supreme lodge 
 with separate .iurisdiction, which by their law provides for a general 
 relief or reserve fund, for making assessments to pay its pro rata 
 share of such relief or reserve fund, or fi-om receiving their pro rata 
 of any such fund. [As amended by an act approved May 11. 1901, 
 in force July 1, 1901.] 
 
 Existing Societies May Continue — Condition. 
 
 Section 2. All such societies coming witliiii the description as
 
 THE UTATE OF ILLI.XOIH 143 
 
 set forth in section 1 of this <u;t, orgaiiizcKl uudcr the laws of this 
 or any other State, ami now doing' Inisiness in tliis State, shall 
 be considered duly organized, and may continue such business: 
 Provided, That they hereafter make application for such permission 
 and comply with the provisions of this act regulating annual reports, 
 and the designation of the Insurance Superiuteudeut as the pei'son 
 upon whom process may be served, as hereinafter provided. [As 
 amended by an act approved June 21, 1895, in force Julj^ 1, 1895.] 
 
 Admission of Societies — Conditions. 
 
 Section 3. Auj- such society coming withiu the descriiDtion as 
 set forth in section 1 of this act, organized under the laws of any 
 other State, province or territory, and not now doing business in 
 this State, shall be admitted to do business within this State when 
 it shall have filed with the Auditor of Public Accounts [Insurance 
 Superintendent] a duly certified copy of its charter and articles of 
 association, accompanied by a fee of $10, and a copy of its consti- 
 tution and laws, certified to bj^ its secretary, and a certificate duly 
 verified by such officer to the effect that such society has paid all 
 approved death claims in full for a period of at least six months 
 prior to applying for permission to do business within this State, 
 together with an appointment of the Auditor of Public Accounts 
 [Insurance Superintendent] of this State as a person upon whom 
 process may be served as hereinafter provided : And, provided, 
 That such society shall be shown bj' certificate to be authorized to 
 do business in the State, province or territory in which it is incor- 
 porated or organized, in ease the laws of such State, province or 
 territory shall provide for such authorization, and in ease the laws 
 of such State, province or territory do not provide for any formal 
 authorization to do business on the part of any such society, then 
 sncli society must be shown to be conducting its business in accord- 
 ance with the provisions of this act, for which pui-pose the Auditor 
 of Public Accounts [Insurance Superintendent] of this State ma}^ 
 personally, or by some person to be designated by him, exanyue 
 into the condition, affairs, character and business methods, accounts, 
 books and investments of such society at its home office, which ex- 
 amination shall be at the expense of such society.
 
 144 FRATERNAL SOCIETY LAW 
 
 Annual Report — Form. 
 
 Section 4. Every such society doing business in this State, shall, 
 on or before the first day of March of each year, make and file 
 with the Auditor of Public Accounts [Insurance Superintendent] of 
 this State, a report of its affairs and ojierations during the .year 
 ending on the 31st day of December immediately preceding, together 
 with a copj' of constitution and laws then in force, which annual 
 report shall be in lieu of all other reports required by any other 
 law. Such reports shall be ujion blank forms to be provided by the 
 Auditor of Public Accounts [Insurance Supei'intendent] , and shall 
 be verified under oath by the duly authorized officers of such society, 
 and shall be published, or the substance thereof, in the annual re- 
 port of the Auditor of Public Accounts [Insurance Superintendent] 
 under a separate part entitled '"Fraternal Beneficiary Societies," 
 and shall contain answers to the following questions: 
 
 1. Number of certificates issued during the year, or members 
 admitted. 
 
 2. Amoimt of indemnity effected thereby. 
 
 3. Number of losses or benefit liabilities incurred. 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representa- 
 tives or heirs. 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 8. Number and kind of claims compromised and resisted, and 
 brief statement of reasons. 
 
 9. Does society charge annual or other periodical dues or ad- 
 mission fees? 
 
 10. How mucli on each $1,000 annually or per capita as the case 
 may be? 
 
 11. Total amount received, from what source and the disposition 
 thereof. 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does society guarantee, in its certificate, fixed amounts to 
 be paid regardless of amount realized from assessments, dues, ad- 
 mission fees and donations?
 
 THE STATE OF ILLIXOIS 145 
 
 I 
 
 14. It' so, stiito Miiiiiiiiit niKiranlccMl. ;iii(l the security of such 
 
 guaranty. 
 
 15. lias the society a si)ecial reserve luiid.' 
 
 16. If so, how is it created, and for what purpose; the amount 
 tliei-eof. and how invested? 
 
 17. Has the society more ihan mn- ehiss .' 
 
 18. If so, how many, and Ihc aiunniil of nuieiiuiity in each? 
 
 19. Number of members in each chiss. 
 
 •20. If the society is incorporated, so state, and give date of or- 
 ganization. 
 
 L'l. If organized, under the laws ot lliis State, under what law, 
 and at what time, giving chapter and year and date of passage 
 of the act. 
 
 22. If organized umhn- the laws of any other State, province or 
 territory, state such fact, and the date of organization giving 
 chapter, and year and date of passage of the act. 
 
 23. Number of certificates of beneficiary membership lapsed dur- 
 ing the year. 
 
 24. Number in force at beginning and end of year; if more than 
 one class, niunber in each class, 
 
 25. Names and addresses of its president, secretary and treasurer, 
 or corresponding officers. 
 
 The Anditor of Public Accounts [Insurance Superintendent] is 
 authorized and empowered to address any additional inquiries to 
 any such society in relation to its doings or condition, or any other 
 nuitter connected with its transactions relative to the business con- 
 templated by this act, and such officers of such society as the Audi- 
 tor of Public Accounts [Insurance Superintendent] may require, 
 shall promptly reply in writing, under oath, to all such inquiries. 
 
 Section 4-a. The Insurance Superintendent may make or eai^se to 
 be made an examination of the condition and affairs of any society, 
 corporation, order or association, incorporated under the laws of 
 this State, or having its principal office in this State, at least as 
 often as once in two years, and all of the expenses of such examina- 
 tion except the salaries or compensation of the examiners shall be 
 paid by the society, corporation, order or association examined, upon 
 proper vouchers showing the amount and nature of such expenses 
 furnished to such society, corporation, order or association by the In- 
 10
 
 146 FRATERNAL SOCIETY LAW 
 
 suranee Siiperiutendeut or by such examiners, and that from and 
 after Jauuarj- 1, 1908, every such society, corporation, order or 
 association organized under the laws of this State, shall annually 
 pjiblish its annual statement within thirty (30) days after the same 
 has been filed in the office of the Insurance Superintendent, such 
 publication to be made in the official publication or newspaper, of 
 any such societ}'. order, corporation or association, and if such so- 
 ciety, order, corporation, or association hasno official publication, then 
 in a secular newspaper of general circulation published in the county 
 in which such society, order, corporation or association has its prin- 
 cipal office. Every such society, corporation, order or association 
 not organized under the laws of this State but doing business herein 
 under the provisions of this Act shall furnish to the Insurance Super- 
 intendent a cei-tified copy of such an examination made by the 
 proper authority of its own State, at least once in every two years, 
 if requested, or oftener, if requested. In case of its failure to fur- 
 nish said cei'tified copy of examination on request, then the Insur- 
 ance Superintendent may make or cause to be made, an exam- 
 ination of any such society, corporation, order or association so 
 failing as often as he may deem it necessary, tlie whole cost of such 
 examination to be paid by the society, corporation, order or asso- 
 ciation so examined. 
 
 Insurance Superintendent to be Appointed as Attorney for Service. 
 
 Section 5. Each such society now doing or hereafter admitted 
 to do business in this State, and not having its principal office 
 within this State, and not being organized under the laws of this 
 State, shall appoint in writing the Auditor of Public Accounts [In- 
 siiranee Superintendent] or his successor in office to be its true 
 and lawful attorney, iipon whom all lawful process in any action 
 or proceedings aigainst it maj^ be served, and in such writing shall 
 agree that any lawful process against it which is served on said 
 attorney shall be of the same legal force and validity as if served 
 upon the society, and that the authority shall continue in force so 
 long as any liability remains outstanding in this State. Copies of 
 such certificate certified by said Auditor of Public Accounts [In- 
 surance SuiMU'intondentl sliall bo deemed sufficient evidiuice thereof.
 
 THE STATE OF ILLINOIS I4.7 
 
 and shall be admitted in evidence with the same force and effect as 
 the original thereof might be admitted. Service upon such attorney 
 shall be deemed sufficient service upon such "society. When Icual 
 process against such society is served upon said Auditor of I'ublii- 
 Accounts [Insurance SiiperinteiidentJ, he shall immediately notify 
 the society of such service by letter, prepaid and directed to its 
 secretary or corresponding officer, and shall, within two days after 
 such service, forward in the same manner a copy of the process 
 served on him to such officer. The plaintiff' in such process so 
 served shall pay to the Auditor of Public Accounts [Insurance 
 Sui)erintendentJ at the time of such service a fee of $3, whicli 
 shall be recovered by him as part of the taxable costs, if he pre- 
 vails inthe suit. The Auditor of Public Accounts [Insurance Super- 
 intendent] shall keep a record of all processes served upon him, 
 which record shall show the day and hour when such service was 
 made. 
 
 Application to Continue Bvisiness. 
 
 . Section 6. Any such society now having the right to do business 
 within this State, as provided by this act desiring to so continue, 
 shall file with the Auditor of Public Accoiuits [Insurance Super- 
 intendent] an application for permission to do so, in which appli- 
 cation shall appear the date of organization or incorporation, and 
 if such society is incorporated, the name of the State, province or 
 territoiy within which such incorporation was had, and the chapter 
 and year and date of the passage of the act under which such 
 society was incorporated. If siich society is not incorporated, such 
 fact shall be so stated in the a])|)]ieat inu, and a copy of the articles 
 of association of such society, duly cei'tified to by its secretary or 
 corresponding officer, shall accompany such applicatiou. Iipon re- 
 ceipt of such a])]ilication, accompanied by a fee of ^'i. the Auditor 
 of Public Accounts [Insurance Superintendent] of this State shall 
 issue to such society a permit, in writing, authorizing such society 
 to do business in this State. 
 
 Mode of Incorporating — Requirements — Certificate of Association. 
 
 Section 7. Any ten or more persons, citizens and voters of this
 
 148 FRATERNAL SOCIETY LAW 
 
 State may associati' themselves together for the jiiii'pose of forming 
 a eorjioratiou under this act: for this i)nrpose they shall make, 
 sign and acknowledge, before an.y officer authorized to take acknowl- 
 edgements of deeds in this State, a certificate of association, in which 
 shall be stated the name or title of the proposed society; the object 
 for which it was formed; the jilan of doing business clearly and 
 fully defined ; the name of the board of officers or managers for the 
 first j'ear, and manner of selecting their successors; the limit as to 
 age of applicants for membership, which shall not exceed 60 years, 
 and that medical examinations are required, and that bona fide 
 applications for membership have been secured from not less than 
 500 persons who have each made application for membership in 
 such proposed society and have lieen dul.v examined and recom- 
 mended by a rejnitable physician : Provided, Societies that only 
 provide for the insuring against bodil.v injury, disablement or death 
 resulting frpm accident, shall not be required to have medical ex- 
 aminations of its members, and have each deposited with the parties 
 asking such charter the sum of one advanced assessment on each 
 $1,000 of insurance, or part thereof, jjrovided for in the plan of 
 organization of such society as an advance assessment for mortuary 
 purposes, which certificate of associations and applications, to- 
 gether with the certificate of some solvent bank or banks that all 
 such advance mortuary funds are deposited therein to be turned 
 over lo the treasurer of a subordinate lodge or branch composed of 
 such a])plicants, after the incorporation of such society, which cer- 
 tificate of association shall be filed with the Insurance Superintend- 
 ent, accompanied b.v a fee of $10. If the Insurance Supei'intendent 
 siuill find after eai-eful examinatiou, that the objects of the organ- 
 ization and the plan of doing business are fully and definitely set 
 forth, and are clearly within the provisions of this act. and that the 
 name or title is not the same, or does not so nearly resemble the 
 titli' in use. as to inive a tenili'iicx' to mislead tlic ])ublic. he shall ap- 
 prove the same, and sluill forthwith issue a cerliticate of organ- 
 ization of the societ.v. Thereupon said societ.v may proceed to 
 transact business according to the plan of its organization. [As 
 amcndi'd by an act a|)]U-ov(Ml .May 11. 1!t01. iu fdrce July 1. 1901.]
 
 THE HTATE O/-' ILLINOIS 149 
 
 How Articles of Association May Be Changed. 
 
 .Section 7^2- Any corporation, association or society organized 
 nndor the provisions of this act, amended by this section, may 
 change its article of association in the manner prescribed by its own 
 rules, but no such change shall lie of legal effect until a certificate 
 setting forth fully and definitely the changes proposed shall have 
 been sidjmitted to and approved by the Insurance Sup(!rintendent 
 and Hied in tiie oflii/c of the Secretai'y of State cUid a certified copy 
 thereof recorded in the office of the recorder of deeds in the county 
 in which the origiuid eertificMte of association wms re('(iril(Ml, Every 
 corjioration, ;issoei;i1 ion <>v society (n"gani/e(l li;i\iim' ailnplcd snch 
 change in its articles of association shall (•(imply with the |)rovisioiis 
 of this section within sixty (Oil) days. ] As amciided liy act aji- 
 {iroved and in force ]\Iny L'7. 1!)()7.] 
 
 Shall Not Have Paid Agents. 
 
 Section 8. Such societies shall not employ paid agents in solicit- 
 ing or procuring members except in the organizing or building up 
 of subordinate bodies or granting memliers inducements to procure 
 new members. 
 
 Benefits Exempt from Legal Process. 
 
 Section d). The money or other benefit, charity, relief or aid 
 to lie \rA\d. provided or rendered by any society authorized to 
 do business under this act, shall not be liable to attachment 
 by trustee, garnishee or other process, and shall not be seized, taken, 
 appropriated or applied by any legal or equitable process, or by 
 operation of law, to pay any debt or liability of a certificate holder 
 or of any beneficiai-y named in a certificate, or of any pei'son who 
 may have any right thereunder. 
 
 Meetings in Another State. 
 
 Section Id. Any such society organized under the laws of this 
 State vany provide for the meeting of its legislative oi' governing 
 body in any other State, province or territory wherein such societies
 
 150 FRATERNAL iSOVlETY LAW 
 
 shall have subonliiuilc bodies, and all business that has heretofore 
 or may hereafter bo traii.saeted at such meetings shall be valid in all 
 respects as if such meeting was held within this State, and where 
 the laws of any such society provide for the election of its officers 
 by votes to be cast in its subordinate bodies, the votes so cast in its 
 subordinate bodies, in any other State, province or territory .shall 
 be valid as if cast within this State: Provided, however, that in 
 all meetings held within tliis State in any such society organized 
 under this law or heretofore organized, no member shall be allowed 
 to east more than 15 votes by proxy on any cpiestion submitted 
 therein. [As amended by act approved and in force May 27, 1907.] 
 
 False Representations — Penalty. 
 
 Section 11. Any jierson, officer, member or examining physician 
 who shall knowingly or wilfully make any false or fraudulent state- 
 ment or representation, in or with reference to any application for 
 membership or for the i)nrpose of obtaining any money or benefit 
 in any society transacting business under this act, shall be guilty 
 of misdemeanor, and upon conviction shall be punished by a fine 
 of not less than $100 nor more than $500, or imprisonment in the 
 covuaty jail for not less than 30 days nor more than one year, or 
 both, in the discretion of the court and any person who shall 
 wilfully make a false statement of any material fact or thing 
 in a sworn statement as to the death or disability of a certificate 
 holder in any such society for the purpose of procuring payment 
 of a benefit named in the certificate of any such holder, and any 
 person who shall wilfully make any false statement in any verified 
 report or declaration under oath, required or authorized by this act, 
 shall be guilty of perjury, and shall be proceeded against and pun- 
 ished as provided by the statutes of this State in relation to the 
 crime of perjury. 
 
 Visitation — Report — Penalty, Etc. 
 
 S<'ctioii 12. All corporations to which this act is applicable, with 
 their books, pajM-i's and vouchers, .shall be subject to visitation and 
 inspection by the Insurance Superintendent, or such person as he 
 may designate. 'I'lie Insurance Su])('rint('udi'iit may address any
 
 THJ-: STATK OF ILLIXOLS lyl 
 
 inquifies to an\' swo.h corporation in relation to its doings or con- 
 dition, or any other matter connected with its transactions rehitive 
 to the business contemplated by this act. All officers of such 
 corporation shall promptly reply in writing to all sucli iiii|iiiries 
 under the oath of its president, secretary or other officers, if re- 
 quired. 
 
 Any such society refusing or neglecting to make tlie annual re- 
 port, as provided in this act, shall be excluded from doing business 
 within this State. Said Insurance Superintendent must, within 60 
 days after failure to make such report, or in case any such society 
 shall exceed its powers or shall conduct its business fraudulently or 
 shall fail to comply with any of the j^rovisions of this act, give notice 
 in writing to the Attorney General, who shall immediately commence 
 an action against such society to enjoin the same from carrying 
 (ui any business. And nny injuiii'tion may bo granted upon proper 
 showing in any court of competent jurisdiction in this State. No 
 society so enjoined shall have authority to continue business until 
 such report shall be made or overt act or violations complained 
 of shall have been corrected, nor until the cost of such action 
 be paid by it: Provided, The court shall find that such society was 
 in default as charged, whereupon the Insni'ance Sujjcr- 
 intendent shall reinstate such society, and not until then shall 
 such society be allowed to again do business in this State. Any 
 officei", agent or person acting for any society or subordinate body 
 thereof within this State while such society shall be so enjoined 
 or prohibited from doing business pursuant to this act shall be 
 deemed guilty of a misdemeanor, and on conviction thereof shall 
 be punished by a fine of not less than .'1>25 nor more than $.500, or 
 by imprisonment in the county jail for not less than 30 days nor 
 more than one year, or by both fine and imprisonment, in the dis- 
 cretion of the court. [As amended by an act approved May 27, 
 1897.1 
 
 Violations — Penalty. 
 
 Section 13. Any person who shall act within this State as an 
 officer, agent or otherwise, for any society which shall have failed, 
 neglected or refused to comply with, or shall have violated any of
 
 152 FRATERNAL SOCIETY LAW 
 
 the provisions of this act, or shall have failed or neglected to pro- 
 cure from the Insurance Superintendent proper certificate of au- 
 thority tt) trausact business as provided for by this act, shall be 
 subject to the penalty provided in the last preceding section for 
 the misdemeanor therein specified. [As amended by act approved 
 June I'l. 1895.] 
 
 All Conflicting- Acts Repealed. 
 
 Section 14. All laws or parts of |Unvs] in contlict with this act 
 are liereby repealed. 
 
 Emergency. 
 
 Section 1."). Whereas. An emergency exists, and this act shall be 
 in force frdin and after its passage. 
 
 An Act to amend sections 3 and 10 of an act entitled "An act to 
 provide for the establishment of an Insurance Department and the 
 appointment of an Insurance Superintendent," approved June 
 20, 1893, in force July 1, 1893, and to add a section thereto. Ap- 
 proved April 24, 1899, in force July 1, 1899. 
 
 Section 1. Be it enacted by the People of the State of Illinois, 
 represented in the General Assembly: That sections 3 and 10 of an 
 act entitled ' ' An act to provide for the establishment of an Insurance 
 department and the appointment of an Insurance Superintendent," 
 approved June 20, 1893, in force July 1, 1893. and to add a section 
 thereto, be, and the same is hereby amended to read as follows : 
 
 Section 3. The Insurance Superintendent shall possess and have 
 all the powers, and he may perform all the duties in regard to the 
 business of insurance in this State, which are now attached by 
 law to tlio office of Auditor of Public Accoiints and the Attorney 
 General. 
 
 And he sliail exercise the same control over llie insurance com- 
 l)aiiics. Ilicir (iflieers ;iiul agents in this State, and shall collect from 
 tlicni all taxes, fees, fines anil penallies. ami may institut(^ and 
 [)f(iseente in his name all snits nnil do ;dl lliinus heretufore recpiired
 
 THE HTATK OF ILLlSOl^ 153 
 
 to be done by the laws of this State by the Auditor of Public Ac- 
 counts and the Attorney General. 
 
 And the said Auditor of Public Accounts and the Attorney Gen- 
 eral are hereby relieved from miiv duty heretofore imjjosed upon 
 them by any law of tliis .State in i-elaticm thereto, and tlir said 
 SuiJerintendent of Insurance fully authorized and empowered, from 
 and after date of his appointment and qualification as such super- 
 intendent, to perform the same. 
 
 Section 10. All acts and parts of acts in couHict with this act 
 ai'e hereby repealed. 
 
 FRATERNAL BENEFICIARY SOCIETIES. 
 
 "An Act to regulate and control the investment and safe-keeping- 
 of the reserve funds of fraternal beneficiary societies and to en- 
 able such societies to deposit their reserve fund securities in the 
 custody of the State of Illinois, and provide for the registry 
 thereof, and provide compensation therefor, and providing a pen- 
 alty for the violation thereof. ' ' Approved May 14, 1903, in force 
 July 1, 1903. 
 
 Section 1. Be it enacted by the People of the State of Illinois, 
 represented in the General Assembly : That it shall be lawful for 
 any fraternal beneficiary society organized or doing business in this 
 State to invest its funds or accumulations in the stocks or bonds 
 of the United States or of this State, or of any county, city or town 
 in this State, or any national bank, or mortgages (being first lien) 
 on real estate being worth at least twice the amount of the money 
 loaned thereon, and such other securities only as are approved 
 by the Insurance Superintendent of this State. 
 
 Section 2. It shall be unlawful for any fraternal beneficiar.y so- 
 ciety to invest its funds or accumulations in any other securities, 
 except as in this act provided, and no securities not in accordance 
 with the provisions of this act shall be deposited or registered vmder 
 the provisions thereof. 
 
 Section 3. Any fraternal benefieiarv society organized in this 
 State may deposit in the custody of the State of Illinois, with the 
 Superintendent of Insurance, in sums of not less than fifty thou- 
 sand dollars ($50,000). at any time, all or any portion of the se-
 
 154 FRATERNAL SOCIETY LAW 
 
 curities belonging to its reserve fund; and such securities, when so 
 deposited, shall be safely kept and preserved for the use of such 
 society under the provisions of this act. 
 
 Section 4. The Insurance Superintendent shall receive all such 
 securities and shall register them in the name of the society to 
 which they belong, in a register kept for that purpose, and shall 
 indorse on each of said securities tlie following, to-wit: 
 
 This is the propertj' of , and deposited by the said 
 
 society with the Insurance Superintendent of the State of Illinois 
 and held bj' him in trust for the benefit and security of the mem- 
 bers of the said society, pursuant tn the hiws of the State of Illinois. 
 It is not negotiable or transferable until withdrawn from the said 
 trust, at which time it shall be indorsed b.y the Insurance Superin- 
 tendent and by the president and secretary of the society before the 
 same shall become negotiable. 
 
 Such registry and indoi-senu>nt shall be public notice of the own- 
 ership of such securities and the purpose for which deposited. The 
 Insurance Superintendent shall hold such securities for the use and 
 protection of the reserve fund of the society depositing the same, 
 and shall permit such society, so long as it is solvent, to collect 
 the interest or dividends thereon, and the principal thereof when 
 due. for tlie use of its mortuary and reserve funds, and shall per- 
 mit such society, whenever the receipt of its mortuary funds are 
 insufficient to meet the death and disability liabilities accruing dur- 
 ing any period of sixty days, to withdraw a sufficient sum in value 
 of such securities to meet such deficiency, and shall permit any 
 such society, at any time, to withdraw the whole or any part of such 
 securities, upon depositing with the Insurance Superintendent other 
 securities of the kind heretofore named and of equal value with those 
 withdrawn. And iipon the surrender of the charter or the dis- 
 solution of an.y such society all of its securities so deposited shall 
 be withdrawn, subject to the payment of outstanding mortuary and 
 disability liabilities. 
 
 Till' securities so deposited shall be non-negotiable until with- 
 drawn and indorsed, as provided in this act and wlion withdrawn, 
 such withdrawal shall bo indorsed thereon, signed by the Insurance 
 Su]icriiili'n(lriil, and llic pri'sidi'iit and sccri'tai'v nf tlic sdcicty to 
 which snidi seciirit ies hidnng.
 
 THE STATt! OF ILLL\0I8 1;J5 
 
 The securities so deposited shall not be withdriiwn at any time, 
 except upon wi-itteu order of the executive committee or a board of 
 not less than five persons duly authorized for that purpose, of the 
 society to which such securities belong, which order shall certify 
 to the Insurance Superintendent the purpose of withdrawal of the 
 securities and the amount to be withdrawn, and shall be signed 
 by a majority of such executive committee or board and attested by 
 the i)resident and secretary of the society. 
 
 Section 5. Each society depositing securities, as provided in this 
 act, shall pay a vault and registration fee of 25 cents per aiunnn 
 for caeli sf^l.dOO (IcpcisitiMJ. which shall l)i' in full lor all sn-vices 
 rendered. 
 
 Section (i. The Superintendent ol' Insurance is autluu-ized antl 
 empowered to make and enforce such i'ul(\s as are necessary for 
 the dejuisit and safe-keeping of the securities deposit(>d with him aiul 
 for carrying' out the provisions of tliis act. 
 
 Section 7. Any person or officer who shall violate any of the 
 provisions of this act shall be guilty of a misdemeanor, and upon 
 conviction shall be fined in a sum not less than $500 and not to 
 exceed $5,000. 
 
 An Act empowering fraternal beneficiary societies organized and 
 existing under and by virtue of the laws of the State of Illinois, 
 to create, maintain and operate as a part of their organization, 
 a department for the purpose of providing and furnishing to their 
 sick, disabled and distressed members and their families, free 
 medical, home, sanitorium and hospital service and treatment, and 
 other material aid and assistance, and to create, maintain and dis- 
 burse for such purposes, a trust fund to be raised by and from 
 voluntary contributions, and declaring such departments to be 
 charitable institutions, and competent as such to be named, and 
 to take, as beneficiary by its members in certain cases. 
 
 Section 1. Be it enacted by the People of the State of Illinois, 
 represented in the General Assembly : That any fraternal beneficiary 
 society organized and existing under and by virtue of the laws of 
 the State of Illinois, adopting the benefit of this Act. in the manner 
 provided herein, may create, maintain and operate as a part of its
 
 156 FRATERXAL HUCIETY LAW 
 
 organizatiou, a dcpai-tinciit for the piiri)ose of providing and furiiish- 
 iug to its sick, disabled and distressed members aud their families, 
 free medical, home, sanitorinm and hospital service and treatment, 
 and such other material aid and assistance as may be provided by 
 such society in its laws, and the by-laws, rules aud regulations gov- 
 erning such department, and for such purposes such societies may 
 own, hold and lease real property and suitable buildings necessary 
 to carry out any of the aforesaid objects and purposes, and create, 
 maintain and disburse a special fond. 
 
 Section 2. Such special fund shall be created and maintained 
 by and from voluntary gifts, contributions or payments made by the 
 subordinate lodges of such societies, or by the individual members 
 thereof, or both, upon such terms and conditions as may be pre- 
 scribed in and by the by-laws, rules aud regulations adopted by 
 the lioard of directors or managers of such department, and by 
 and from such contributions from the expense fund of such society 
 as may be authorized by the board of officers, managers or gov- 
 erning body of such society. 
 
 Section 3. Such special fund shall be used exclusively for the 
 pnriio.ses for which it is created, and shall constitute a trust fund 
 for such purposes. The expense of maintaining and operating such 
 department shall be borne by, and paid from such special fund, and 
 such fund and all the property of such department shall be held 
 free and clear of, and shall not in any manner be used for. or be 
 or become charged with, or liable for, the payment of any claims, 
 debts or liabilities of such society; nor shall such society or any 
 other of its funds or property, in any manner be used for, or be 
 or become charged with, or liable for, the payment of any of the 
 claims, debts or liabilities, or expense of maintaining or operating 
 such department, except to the extent of the contributions from 
 the expense fund of such society authorized in manner provided by 
 section two of this Act. 
 
 Section 4. The board of ofiicers. managers or governing bod\' of 
 any fraternal lieneficiary society organized and existing under and 
 by virtue of the laws of the State of Illinois, desiring to accept 
 the benefit of the jirovisions of this Act on behalf of such society, 
 shall adopt a resolution to that eft'ect. and )irovide for the creation 
 of a (lr|i;irlniciit of such society under the name thercMii designated,
 
 THE HTATE OF ILLINOIS ■ 137 
 
 aii<_l .sliali then siilunit, sueli resolution to :i vote of ;ill the suljordi- 
 nate lodges oi' sueli society, and on I'eceiviiig the affirmative votes 
 of not less than two-tliirds of siieh lodges thereon, the provisions of 
 this Act shall be thereby extended over, and this Act shall be in 
 force and effect in such society wlien tlie provisions of section five 
 of this Act shall be complied with. 
 
 Section 5. Any fraternal beneficiary society organized and exist- 
 ing under and by virtue of the laws of the State of Illinois, may 
 accept the benefit of the provisions of this Act in manner provided 
 by section four hereof, but such action shall not be of legal effect 
 until' a certificate subscribed and sworn to by the president, and 
 attested by the secretary of such society under its corporate seal, 
 setting forth the terms of the resolution, and the manner in which 
 it was submitted to vote, together with the result of the vote thereon, 
 shall have been sulnnitted to and be approved bj' the Insurance 
 Superintendent, and filed in the office of the Secretary of State, 
 and a certified copy thereof lie recorded in tlii' office of the Recorder 
 of Deeds in the county in which the certificate of incorporation of 
 such society was recorded. Every such society having complied 
 with the provisions of section four of this Act shall comply with 
 the further provisions of this section, within ninety tlays thereafter. 
 
 Section 6. The management and operation of such department 
 shall be exercised by a board of directors or managers of not less 
 than nine members, as shall be provided by the by-laws of such 
 department, and the officers shall consist of a president, secretary 
 and treasurer and such other officers and agents as shall be deter- 
 mined by the directors or managers, and the directors or managers 
 may adopt by-laws, rules and regulations, which shall ])rovide for 
 the government of the officers and the affairs of such department, 
 and the terms and conditions upon Avhich the benefits thereof shall 
 be furnished, but such by-laws, rules and regulations before the 
 same shall be of foi-ee and effect, shall first receive the approval 
 of the executive or managing committee of such societv. Tlie di- 
 rectors or managers may require of the officers and agents, bonds 
 with siich sureties and conditions as they shall deem proper. The 
 officers shall hold their respective offices for the terms provideil by 
 the by-laws.
 
 15y FRATERNAL SOCIETY LAW 
 
 Section 7. Each such department, when organized in manner 
 provided by this Act. is hereby declared to be a charitable insti- 
 tution, with all the rights, benefits and privileges given to charitable 
 institutions under and bj^ the Constitution and laws of the State 
 of Illinois, and such department is hereby declai-ed to be compe- 
 tent to be named and to take as beneficiary in and by the benefit 
 certificate of any member of such society having no wife or children 
 living, under the provisions of the laws of the State of Illinois 
 relating to fraternal beneficiary societies. 
 
 Approved May -20. ^W1. 
 
 An Act defining- who may become delegates or who shall have any 
 voice in the management of or legislate for any Fraternal Insur- 
 ance Society doing business in the State of Illinois. 
 
 Section 1. Be it enacted by the People of the State of Illinois, 
 represented in the General Assembly : That it shall be unlawful for 
 any person, other than a beneficiary nieml)er to bo elected delegate, 
 or shall have any voice in the management of the endowment or 
 mortuary features or business of any fraternal insurance society 
 doing business in the State of Illinois. 
 
 Section 2. All fraternal insurance societies doing business in 
 the State of Illinois shall amend their by-laws so as to comply with 
 the requirements of section 1 on or before the first day of January, 
 1910. 
 
 Section 3. Any fraternal insurance society failing to comply with 
 the requirements of this Act shall be prohibited from doing business 
 in this State, and it shall be the duty of the Superintendent of 
 Insurance to revoke the license of any fraternal insurance society 
 not incorporated under the laws of this State, and if incorporated 
 uiuler the laws of this State, to enjoin them from further continuing 
 business, until the requirements of the provisions of this Act are 
 complied with. 
 
 Ajiprovi'd May 23, lf)07. 
 
 Suicide by Strangulation Proved from Circumstances. 
 
 In an aelioii on a certificate ]iroof 1hat the diMil 1)ody of the 
 plaint ilV's Inisliand was rniiiKJ liMimiiiL:' 1iy a rope ai'onnd his ne(>k.
 
 THE STATE OF ILLINOIS 159 
 
 together with the proofs of death offered li\' the plaintiff herself, 
 wherein it is stated tliat the immediate cause of death was strangu- 
 lation by hanging himself, tends to prove the presumptions of the 
 defendant's special plea that the death of the assiii-cil resulted from 
 his own act, and uuless overcome by contrary j)roof. the fact of the 
 member's suicide is established. 
 
 Kiesewetter vs. Supreme Teut Knishts of the Maccabees of the 
 World, April, 1907, 227 111. 48. 
 
 Suicide — Insanity no Defense Where Contract Excepts Suicide, Sane 
 or Insane. 
 
 Counsel for the ])laintiff offered to prove liy witnesses ''that the 
 deceased came to his death while insane, tliat his mind was in 
 such a condition of insanity and frenzy that he was not aware at 
 the time of his death of the physical consequences of his act in the 
 taking of his life at that time." The offer was objected to. and 
 the objection sustained, and the rule of the trial court in this re- 
 gard approved by the supreme court. 
 
 Kiesewetter vs. Supreme Tent Knights of the Maccabees of the 
 World, April, 1907, 227 111. 48. 
 
 Service of Summons on Insurance Superintendent Not Exclusive 
 Method of Serving Society. 
 
 The purposes of the fraternal beneficiary act of the State recpiir- 
 ing foreign benefit societies, doing business in this State, to appoint 
 the Superintendent of Insurance as its attorney in fact for service 
 of process, is not to make service of process upon such attorney in 
 fact the exclusive method of obtaining jurisdiction of societies, but 
 to secure an agent for service of process whose agency cannot be 
 disputed, and to prevent such societies from avoiding service of pro- 
 ■ cess by withdraAving its other agents from the State. 
 
 Supreme Hive, Ladies of the Maccabees of the World vs. Harrington, 
 April, 1907. 227 111. 511.
 
 160 FRATERNAL SOCIETY LAW 
 
 Service of Summons — Limited Powers of Municipal Court of Chicago. 
 
 The municipal court of the city of Chicago cannot obtain juris- 
 diction of a suit against a foreign society hy sending its process 
 outside of the territorial limits of the city of Chicago, and obtain- 
 ing service of the same upon the Sujierintendent of Insurance. 
 
 Supreme Hive, Ladies -of tlie Maccabees of the World vs. Harrington. 
 April, 1907, 227 HI. 511. 
 
 Contracts — Construction to Favor Purposes of Society. 
 
 The rules and by-bnvs of a fraternal society are to be construed 
 liberally so as not to defeat the purp)oses of the inilemnity offered 
 to members, and in construing such rules, equivocal expressions are 
 to be interpreted most strongly against the societ.v. 
 
 The Switchmen's Union of North America vs. Colehouse, .Tune. 1907. 
 227 111. 561. 
 
 Provisions Requiring Bringing Suit in Limited Time, Valid. 
 
 Before a society can plead in bar the provision of a b,v-la\v. re- 
 cpiiring suit to be brought within 6 months from the rejection of 
 the member's claim bj' the grand lodge, it must be alleged that the 
 member had notice of such rejection for that length of time before 
 bringing suit. 
 
 The Switchmen's Union of North America vs. Colehouse, June, 1907, 
 227 111. 561. 
 
 State Laws Not Retroactive Nor Do They Affect Certificates Al- 
 ready Issued. 
 
 The act of 1893 relating to assessment societies does nut appl,\' 
 to societies in existence when the act was passed, unless the.v take 
 the steps provided in Section 6 of that act, to reincorporate under its 
 provisions, and contracts issued by the society prior to the passage 
 of the act will not. therefore, he affected by l!u^ act. unless the 
 societ.y has taken the steps to reincorporate.
 
 THE STATE OF ILLINOIS 161 
 
 Crawford vs. Northwestern Traveling Men's Ass'n, February, 1907, 
 226 111. 57. 
 
 True Rule as to What State Laws are Part of Contract. 
 
 The rule tluit the law writes into every contract the provisions of 
 the statutes that are applicable to the transaction refers only to 
 statutes existing at the time the contract was made, and not to sub- 
 sequent statutes such as would operate to impair the contract. The 
 case at bar was an assessment society case, and not a fraternal 
 societ.v case. 
 
 Crawford vs. Northwestern Traveling Men's Ass'n, February, 1907, 
 226 111. 57. 
 
 Society May Obtain Certain Benefits of State Laws Without In- 
 creasing its Obligations on Existing Contracts. 
 
 Changing the constitution and by-laws of an assessment societ.v 
 organized under the act of 1872. so as to create an emergency fund, 
 provided for in the act of 1893, does not render the provisions of 
 the act of 1893 a part of the contract of a member who joined the 
 society prior to such action, where no steps were taken to reincor- 
 porate under the act of 1893. 
 
 Crawford vs. Northwestern Traveling Men's Ass'n. February, 1907, 
 226 111. 57. 
 
 Contract Capable of Two Constructions Must be Held to Favor Bene- 
 ficiary. 
 
 A contract of insurance is to be construed liberall.v in favor of the 
 insured, and strictl.v against the insurer, and where two interpreta- 
 tions, each equally reasonable, are po.ssible, that construction should 
 be adopted which will enable the beneficiary to recover. 
 
 Grand Legion of Illinois Select Knights of America vs. Beaty, 
 December, 1906, 224 111. 346. 
 
 11
 
 162 FRATERNAL SOCIETY LAW 
 
 Beneficiary Has No Vested or Assignable Interest During Life of 
 Member. 
 
 During the lifetime of a member the beneficiary has no vested 
 interest in the certificate of a member, where the member may 
 appoint another beneficiary in the absence of any contractual rights, 
 and may, without the consent of the beneficiary entirely destroy his 
 or her interest in the certificate. 
 
 Grand Legion of Illinois Select Knights of America vs. Beaty, 
 December, 1906, 224 111. 346. 
 
 Suicide — No Defense Unless Provided for in Contract. 
 
 If a contract is silent as to the effect upon the rights of the parties 
 of a member's act of self-destruction, recovery can be had on the 
 certificate if the member suicides. The court discusses various 
 authorities upon this proposition, and concludes "That the act of 
 the member of a fraternal beneficiary society, who intentionally 
 takes his own life, while sane, does not defeat the right of his bene- 
 ficiary, who is his wife, to recover the benefit named in the certifi- 
 cate, where the contract of insurance is silent as to the effect on 
 the rights of the parties under such act of self-destruction." 
 
 Grand Legion of Illinois Select Knights of America vs. Beaty, 
 December, 1906, 224 111. 346. 
 
 Assessments— Printing and Mailing Notices Required. 
 
 "Where the constitution of a society provides that printed notices of 
 assessments shall be sent by the grand recorder in such manner 
 as the grand lodge may provide, and further provides that the 
 official organ of the society, published and printed on the 1st day of 
 each month, shall be an official notice of assessments to each mem- 
 ber, it is necessary in order to charge the member with notice to 
 show that a notice was not only published. l)nt sent to such mem- 
 ber. 
 
 Grand Legion of Illinois Select Knights of America vs. Beaty, 
 December, 1906, 224 111. 346.
 
 THE STATE OF ILLINOIS 163 
 
 Release on Part Payment — Valid Only in Compromise Cases. 
 
 A release in i'lill. wliile cxccutecl by tlir hciietieiai'v iindei- a bene- 
 fit certifieate, iipiui aeeeplanee ef a part of the amount of the cer- 
 tificate eaniiol lie made the basis of a, plea of accord and satisfaction 
 in a suit on the certificate, where there was no hon<'st difference 
 whatever between tlu' pai'ties as to the amount due. which was fixed 
 by the terms of the certificate. 
 
 Farmers' and Mechanics' Life Ass'n vs. Caine, December, 1906, 224 
 III. 599. 
 
 Release — Accord and Satisfaction. 
 
 Acceptance by a creditor from a debtor of an amount less than the 
 amoiuit due, in full satisfaction of a liquidated and inKlis])uted debt, 
 is not a discharge, except in so much of the debt as equals the 
 amount received, and it is not essential to the creditor's right of 
 action that he rescind the contract of settlement, or return the money 
 received, but only that he give the debtor credit for the amount paid. 
 
 Farmers' and Meclianics' Life Ass'n vs. Caine, December. 1906. 224 
 111, 599. 
 
 Waiver of Contract Provisions. 
 
 By entering into a parole contract extending the time of payment 
 of the assessments, a society waives the right to have the evidence 
 of its action reduced to writing, as provided in the contract, and 
 waives the right 1o insist u])on forfeiture foi- noniiaynient of the 
 assessments at the time, as tlu>y were due under the terms of the 
 original contract. 
 
 Farmers' and Mechanics' Life Ass'n vs. Caine. December. 190fi. 224 
 111, 599. 
 
 Suicide — After-enacted Law Valid and Binding on Existing Con- 
 tracts. 
 
 A by-law of a benefit society providing that " Tf any member shall
 
 164 FRATERNAL SOCIETY LAW 
 
 die by his own act or hand, sane or insane, his beneficiary or bene- 
 ficiai'ies shall receive only one-half of the face value of his benefit 
 certificate," is valid and binding as to a member who was admitted 
 to the society before the adoption of the by-law, and who had agreed 
 in his contract to be bound by all by-laws then in force or thereafter 
 adopted. The court in this ease reaffirmed the same doctrine an- 
 nounced by it repeatedly, and quoted the language employed in the 
 ease of FuUenwider vs. Royal League. 180 111. 621, viz.: "The con- 
 tract required full compliance with auj' by-laws that might be 
 thereafter enacted, and if the certificate were accepted with such a 
 clause therein, there is no vested right of avoiding the contract if 
 the certificate remained unchanged, because the recognition of the 
 power named under the by-law.s is necessarily a recognition of the 
 right to repeal or amend." 
 
 Scow vs. The Supreme Council Royal League. October, 1906, 223 
 111. 32. 
 
 After-enacted Suicide Law^ Reasonable. 
 
 An after-enacted by-law provided that there shall be no liability 
 in the event of the suicide of the member, sane or insane, is valid 
 and reasonable. 
 
 Scow vs. The Supreme Council Royal League, October, 1906, 223 
 111. 32. 
 
 Taxation — Property of Fraternal Societies Subject to, 
 
 A legislature lias no power to exempt from taxation any property 
 other than that enumerated in Section 3 of Art. 9 of the Constitu- 
 tion, since such enumeration is exclusive of all other subjects of 
 exemptions, and the properly of fraternal societies is not included in 
 such an enumeration. 
 
 Supreme Lodge Fraternal Order vs. Board of Review. October. 1906. 
 .223 111. 54. ^ 
 
 Fraternal Societies Not Public Charities. 
 
 Benefit societies are not institutions of imblic charities, since
 
 THE STATE OF ILLINOIS 165 
 
 they issue contracts of insurance, based upon valuable considera- 
 tions, and which are legal and enforeable at law. 
 
 Supreme Lodge Fraternal Order vs. Board ot ReviRW, Oc-tober, 1906. 
 223 111. 54. 
 
 Taxation — Statutes Exempting Fraternal Societies Unconstitutional. 
 
 The provisions of the statutes exempting from taxation money col- 
 lected by fraternal societies and on hand within this State, and used 
 exclusively for the purposes of such societies, is unconstitutional. 
 
 Supreme Lodge Fraternal Order vs. Board of Review, Octoter, 1906, 
 223 111. 54. 
 
 Construction to Be Given to Ambiguous Designation of Beneficiary. 
 
 Where an applicant for membership requests tliat the benetit be 
 paid to the applicant's wife, and there is an unsigned note upon the 
 back of the application directing that the benetit be paid to the 
 applicant's adopted daughter, naming her, and the certificate when 
 issued makes the benefit payable to the adopted daughter as per the 
 latter direction, which certificate is accepted by the applicant in 
 writing, and assessments paid by the member without objection ; the 
 adopted daughter must be held to be the equitable beneficiary. 
 
 Murphy vs. Nowack. October, 1906, 223 111. 301. 
 
 Beneficiary — Dependency — Adopted Child Is. 
 
 A child taken by a member and his wife from a home for orphans 
 when she was three years old, and from that time forward was 
 treated as a daughter, is a dependent during the period of her minor- 
 ity, or so long thereafter as the assumed relation of parent and 
 child continues and her support is furnished by such member, and 
 she is eligible to be named as a dependent of the member. 
 
 Murphy vs. Nowack, October, 1906, 223 111. 301.
 
 166 FRATERNAL SOCIETY LAW 
 
 Conflict Between Charter and Statutory Provisions Regarding Bene- 
 ficiaries. 
 
 If the certificate of a society is narrower than the statute under 
 which the society is organized, and excludes from the chiss of eligi- 
 ble beneficiaries persons who would otherwise be eligible under 
 the statute, the certificate of organization, and not the statute will 
 control. 
 
 Murphy vs. Nowak, October, 1906, 223 111. 301. 
 
 After-enacted Laws Valid and Change Existing Contracts. 
 
 If a member of a society agrees in his contract that he will con- 
 form to the laws, rules, and usages of the society then in force, or 
 which may subsequently be adopted, subsequent statutes and by- 
 laws may be given a retrospective effect. 
 
 Murphy vs. Nowak, October, 1906. 223 111. 301. 
 
 Beneficiary — Eligibility at Maturity of Contract Determines Right, 
 
 A person who does not come within any of the designated classes 
 of eligible beneficiaries at the time of the death of the member, 
 cannot take as beneficiary, and in such case the fund should be 
 paid to the member's heirs at law who are within the class. 
 
 Murphy vs. Nowak, October, 1906, 223 111. 301. 
 
 Beneficiary — Dependent at Member's Death Determines Eligibility 
 of. 
 
 AVhere by-laws of a society preclude payment of the benefit to 
 an\- pei-son who is a dependent, unless the dependency exists at 
 the time of the member's death. ;nul rc(|uii-es written proof of that 
 fact, one who was a dependent upon the member for a number of 
 years, but was not dependent upon him for support at the time of 
 his death, was not entitled to take the benefit, though named as 
 beneficiary in the certificate. 
 
 Murphy vs. Nowak, October, 1906. 223 111. 301.
 
 THE STATE OF ILLINOIS 167 
 
 Beneficiaries — Eligibility of — Societies May Restrict Statutory 
 Classes. 
 
 It is settled law that when the statute under which a society is 
 organized, and its charter adopted in pursuance of such statute 
 designates certain classes of persons as those for whom a benefit 
 fun^l is to be accumulated, a person joining who belongs to other 
 than one of such classes, is not entitled to take the fund, and that 
 the corporation has no authority to create a fund for other persons 
 than the classes specified, nor can a member direct a t\md to be paid 
 to a person outside of such classes, but there is nothing illegal or 
 against public policy in the action of a society in narrowing the 
 scope of its beneficial action and in determining the classes who 
 can take as beneficiaries, the court will look alone to the certificate 
 of organization and not to the statute under which the society is 
 organized, which may be broader in its terms than the certificate of 
 organization of the society organized thereunder. 
 
 Murphy vs. Nowak, October, 1906, 223 III. 301. 
 
 Suicide, Sane or Insane An Excepted Risk. 
 
 Suicide by a member of a fraternal society precludes a recovery 
 by the beneficiary regardless of whether sane or insane at the time, 
 or of the degree of his insanity, where both the application for mem- 
 bership and the by-laws of the society specify that no benefits shall 
 be |)aid if death results from the member's voluntary or involuntary 
 suicidal act, whether sane or insane at the time. 
 
 Zerulla vs. Supreme Lodge Order of Mut. Protection. December, 1906, 
 223 111. 518. 
 
 Agency of Local Lodge Officers. 
 
 Where all that a delinquent member has to do to be reinstated, if 
 in good health, is to pay his dues to the collector of the local lodge, 
 the latter must be regarded as the agent of the supreme lodge in 
 the matter of accepting the dues and reinstating the member in
 
 168 FRATERNAL SOCIETY LAW 
 
 good standing, notwithstanding the provisions of its constitution 
 and by-laws to the contrary. 
 
 Court of Honor vs. Dinger, April. 1906. 221 111. 17C. 
 
 Good Health — Definition of. 
 
 Good health was defined in an instruction, approved by the 
 supreme court, as follows : 
 
 "The words 'good health' when applied to a human being mean 
 that the person said to be in good health is in a reasonable good 
 state of health, and that he is free from any disease or illness that 
 tends seriously or permanently to weaken or impair the constitu- 
 tion." 
 
 Court of Honor vs. Dinger, April, 1906, 221 111. 176. 
 
 Good Standing — Societies' Books Not Only Evidence. 
 
 The books of a society are not the only evidence of the good 
 standing of its members. 
 
 Bolles vs. Mutual Reserve Fund Life Ass'n, April, 1906, 220 111. 400. 
 
 Consolidation — Transfer of Membership to Another Society. 
 
 Upon the approval of a contract of transfer of the membership 
 of one society to another by two-thirds of the members of the trans- 
 ferring society, all of the members in actual good standing in the 
 transferring society become members in the transferee society with- 
 out any further act upon their part, unless they elect to be trans- 
 ferred to some other society; one who does not participate in the 
 meeting where a vote is had upon the question of transferring the 
 membership from the one society to another, is not to be regarded as 
 a party to the contract of transfer, in the sense that he is precluded 
 from questioning its terms. 
 
 Bolles vs. Mutual Reserve Fund Life Ass'n. April, 1906, 220 111. 400.
 
 THE STATE OF ILLINOIS 169 
 
 Public Charged With Notice of Limited Power of Societies. 
 
 One who deals with a corporation having as a matter of public 
 law limited or delegated powers, is chargeable with notice of these 
 powers and their limitations, and cannot plead ignorance of their 
 existence. 
 
 Steele vs. The Fraternal Tribunes, April, 1905, 215 111. 190. 
 
 Ultra Vires Contracts — Neither Party Estopped to Assert. 
 
 If a contract with a corporation is beyond the powers conferred 
 upon it by existing laws, neither the corporation nor the other part}' 
 to the contract, by accepting it or acting upon it can be estopped 
 from raising the defense of ultra vires. 
 
 Steele vs. The Fraternal Tribunes, April, 1905, 215 111. 190. 
 
 Age of Applicant — No Estoppel Under Ultra Vires Contract. 
 
 A society organized in this State, whose by-laws and charter pro- 
 hibit the taking in of a member of over 51 years of age, cannot be 
 bound by a certificate issued to a person over that age, even though 
 some of the oiScers of the local lodge knew that the applicant's 
 representation of age in the application as 51 years of age, and 
 warranted to be true, was false. 
 
 Steele vs. The Fraternal Tribunes, April, 1905, 215 111. 190. 
 
 Ultra Vires Contract Cannot be Ratified. 
 
 On the question as to the power to ratify an ultra vires contract, 
 this is said: "It is insisted, however, that even though the contract 
 be regarded as ultra vires, yet defendant in error cannot avail itself 
 of such defense, the contract having been performed in good faith 
 by the other party, and the corporation had the full benefit of such 
 performance. We cannot agree with this contention. A contract 
 of a corporation which is ultra vires in the true sense of that term ; 
 that is to say, outside the power of its creation, as defined by the
 
 170 FRATERNAL SOCIETY LAW 
 
 laws of its organization, and therefore, beyond the powers conferred 
 upon it by the legislature, is not only voidable, but wholly void, and 
 of no legal effect. The objection to the contract here is not merely 
 that the corporation ought not to have made it, but that it could 
 not lawfully make it. The contract could not be ratified by either 
 party, because it could not have been authorized b.v either. No 
 performance by the parties could give the unlawful contract valid- 
 it.y, or become the foundation of any right of action upon it." 
 
 Steele vs. The Fraternal Tribunes. April, 1905, 215 111. 190. 
 
 Agency May Be Implied from Adopted Acts of Agent. 
 
 The existence of the agency of a local official may be implied or 
 established by ratification and adoption of the acts done by the 
 alleged agent. 
 
 The Fraternal Army of America vs. Evans, June, 1905, 215 111. 629. 
 
 Seven Years Absence — Presumption of Death. 
 
 The unexplained absence of a person from his usual place of abode 
 for seven continuous years, and from whom no intelligence has been 
 received within tluit time, raises the presumption of death, upon 
 which the jury may act where no sufficient facts or circumstances 
 are proven to overcome the presumption. For instructions given to 
 the jury and approved by the court, see 
 
 Policemen's Benevolent Ass'n vs. Ryce, December, 1904, 213 111. 1. 
 
 Obligations of Member Not Affected by Society 's Unauthorized Act. 
 
 An unauthorized attempt on the part of a society to make a 
 change in a member's contract of a character detrimental to him, 
 does not release the member of his obligation to pay as provided in 
 the original contract. 
 
 National Council Knights and Ladies of Security vs. Dillon, Decem- 
 ber, 1904. 212 111. 320.
 
 THE STATE OF ILLINOIS 171 
 
 Ultra Vires — Defense of Not Available Where Performed Contract is 
 Within Charter Powers. 
 
 A society which has received the benefit of a contract may be 
 estopped to raise the defense of iiltra vires, wliere the contract is 
 within the charter powers of the society. 
 
 Wood vs. Supreme Ruling of the Fraternal Mystic Circle, December, 
 1904, 212 111. 532. 
 
 Organic Law — Definition of. 
 
 In Illinois the charter or organic law of a society consists of the 
 certificate of organization granted to it by the State, and the statutes 
 which provide for the organization of snch societies and define their 
 powers. 
 
 Wood vs. Supreme Ruling of the Fraternal Mystic Circle, December, 
 1904, 212 111. 532. 
 
 Constitution May be Waived Same as By-law. 
 
 A by-law adojited by a society fixing the age limit of members, al- 
 though designated as part of the constitution, may be waived, if 
 there is no provision of the organic law of the society prohibiting 
 persons who are not within such age limit from becoming members. 
 
 Wood vs. Supreme Ruling of the Fraternal Mystic Circle, December, 
 1904, 212 111. 532. 
 
 Statutes of Foreign State — Presumptions as to. 
 
 In the absence of proof, it will be presumed that the statutes of 
 a foreign State governing the organization and specifying the pow- 
 ers of fraternal societies, contain restrictions limiting the age of the 
 persons who may become members. 
 
 Wood vs. Supreme Ruling of the Fraternal Mystic Circle. December, 
 1904, 212 111. 532.
 
 172 FBATERNAL SOCIETY LAW 
 
 Suicide — "Commit Suicide" — Application of Term. 
 
 lu passing upon a suicide provision in a contract, where suicides 
 in general terms were expected from the risk, but the usual sane 
 or insane clause was not incorporated, the court said: "Under such 
 provisions in the certificate, only the return of the amount which 
 had been paid into the benefit fund could be recovered if the insured 
 while in the possession of his ordinary reasoning faculties intention- 
 ally took his own life, but that if his reasoning faculties were so far 
 impaired that he was unable to appreciate the moral character, 
 genei-al nature, consequences, and efi'eet of the act of self-destruc- 
 tion, or that he was impelled thereto by an insane impulse, which 
 he had not the power to resist, the entire amount of the mortuary 
 benefit might be recovered; that is, we hold that the words 'com- 
 mit suicide' were applicable to a case of voluntary, intentional self- 
 destruction, the act of a sane mind." 
 
 Supreme Council Royal Arcanum vs. Pels. April, 1904. 209 111. 33. 
 
 Suicide — "Insane Impulse," Definition of. 
 
 "One may have sufficient mental power to form the intention to 
 do the physical act which will result in death, and also intend to 
 bring about that result by such act. yet if he is driven to the forma- 
 tion of that intention and the commission of the act by an insane 
 impulse, whi^^h lie has not the power to resist, and which overwhelms 
 his moral nature, his death is not regarded as a voluntary and inten- 
 tional act of self-destruction, but as though it were the result of 
 accident or of some irresistible, external force." 
 
 Supreme Council Royal Arcanum vs. Pels. April. 190-1. 209 111. 33. 
 
 Beneficiary — Murder of Member by — Forfeits Rights of. 
 
 WunliT of the iTisuri'd by a beneficiary named in the certificate 
 precludes a recovery by such beneficiary, but does not absolve the 
 society from payment of the amount of the certificate to any person 
 whomsoever in the absence of a provision of the contract to that 
 effect.
 
 THE STATf: OF ILLINUIH 173 
 
 Suiireme Lodge Knights anil Ladies of Honor vs. Menkliausen. A|)ril, 
 1904, 209 111. 277. 
 
 Beneficiary — Heirs at Law Take Where Member Murdered by Bene- 
 ficiary. 
 
 The heii's ;it law of a iiii'nil)or wlui was iiuirilci'i'd by a liriirliriary 
 are entitled, if within the class of eligible beneficiaries, to recover 
 under a certificate issued to the member, in the absence of anything 
 to the contrary in the contract or the laws of the State and as 
 against tlie beneficiary named in tlie certificate. 
 
 Supreme Lodge Knights and Ladies of Honor vs. Menkhausen, April, 
 1904, 209 ni. 277. 
 
 Beneficiary — Failure of Designated — Order of Heirship. 
 
 Where the law determines the persons entitled to insurance on the 
 life of a member, suit may be brought in the name of such persons,, 
 and not by the administrator of the estate of the deceased member. 
 The fraternal act of the State contemplates that the children of a 
 member shall stand next in order to the .surviving hu.sband or wife, 
 where the beneficiary named is disqualified to take. The statute- 
 construed liy the court in tliis particular provides for benefits to be 
 paid to the "families, heirs, blood relations, affianced husband or 
 affianced wife of or to persons dependent upon a member," but this 
 provision was by the court considered in connection with somewhat 
 similar pi'ovisions in jircviou.s acts of the legislature. 
 
 Supreme Lodge Knights and Ladies of Honor vs. Menkhausen, April,. 
 1904, 209 111. 277. 
 
 Guardian Has no Power to Compromise Wards' Claim. 
 
 A guardian has no power, without an express order of the court, 
 to make any settlement of the ward's interest under a certificate for 
 less than the full amount, and has no power or autlun-ity to make 
 admissions that will be adverse to his ward's interest. 
 
 Knights Templars" and Masons' Life Indemnity Co. vs. Crayton. 
 .Tune. 1904, 209 111. 550.
 
 174 FRATERNAL SOCIETY LAW 
 
 Minors Upon Obtaining Majority May Sue in Cases Where Guardian 
 Compromised Claims. 
 
 A release of liability inidei' a certificate given by the guardian of 
 an infant beneficiary, upon the payment by the society of a less 
 sum than the face of the contract issued to the member, whom the 
 society regarded as having committed suicide, is not a bar to a suit 
 on the certificate where the society was liable for the amount of the 
 contract, whether the member suicided or not, and minors upon ob- 
 taining their majority are not precluded from bringing suit to 
 recover the full amount of the contract, by reason of the fact that 
 their guardian acting without the authority of the probate court 
 made a settlement with the society under the certificate. 
 
 Knights Templars' and Masons' Life Indemnity Co. vs. Crayton, 
 June, 1904, 209 111. 550. 
 
 "Satisfactory Proofs of Death" — Definition of. 
 
 Satisfactory proof of death within the meaning of the certificate 
 means satisfactory proofs that the insured is dead, and reasonable 
 proof as to the cause of death, bi;t such proofs are not binding upon 
 either the society or the beneficiaries when the cause of death be- 
 comes a disputed (juestion between them. 
 
 Knights Templars' and Masons' Life Indemnity Co. vs. Crayton. 
 June. 1904. 209 111. 550. 
 
 Proofs of Death — Coroner's Verdict Admissible in Evidence. 
 
 A verdict of a coroner's jury attached to the proofs of death ma.v 
 be considered by ttie jury in determining the cause of the member's 
 death, but neither the proofs of death nor the testimony taken upon 
 the coroner's inquest can be considered "ii that subject, unless the 
 statements contaiiu>d in the jiroofs of death are against interest, and 
 made by persons eompetcnl lo bind Ihemselves, aiul infants are not 
 within that class. 
 
 Knights Templars' and Masons' Life Indemnity Co. vs. Crayton, 
 June. 1904, 209 111. 550.
 
 THE UTATE OF ILLINOIS 175 
 
 Taxation — Benefit Certificates are Subject to. 
 
 CV'i-tificates issued by benefit societies are taxable as credit after 
 the death of the persons wliose lives were insured, notwithstanding 
 proofs of death had not been made, nor the time expired within 
 which the societj' might be sued to recover under the certificates, 
 and in assessing such certificates for taxation, they are presumed to 
 be worth their face value. 
 
 Cooper vs. Board of Review, February, 1904, 207 111. 472. 
 
 Evidence — Opinions of Physician in Suicide Cases. 
 
 A physician called as an expert in an action on a certificate ma.v 
 give his opinion as to whether under the facts in evidence, the death 
 of the insured was caused by sti-angulation. where such physician 
 has seen several cases of hanging, or has read upon the question in 
 medical works. 
 
 Supreme Tent Knights of the Maccabees vs. Stensland, December, 
 1903, 206 111. 124. 
 
 Proofs of Death, Statements in, May be Denied by Beneficiary, 
 Though Beneficiary Offered Proofs in Evidence. 
 
 A beneficiary who signed without reading sworn proofs of death, 
 prepared by the society's agent, may introduce such proofs in evi- 
 dence upon the question of notice, and if no element of estoppel is 
 present, may after having established proper notice, give evidence 
 contradicting the statements made such proofs, to the effect that 
 the death of the member was caused by self-destruction. 
 
 Supreme Tent Knights of the Maccabees vs. Stensland, December, 
 1903. 206 111. 124. 
 
 Estoppel— Definition of. 
 
 It is essential to equitable estoppel that one party has by his 
 conduct wilfully misrepresented a material fact with the intention 
 of inducing the action of another person, who relying upon such
 
 IIQ FRATERNAL SOCIETY LAW 
 
 representations, in ignorance of their falsity, has so changed his 
 position that he would suffer loss if the false conduct were repudi- 
 ated. 
 
 Supreme Tent Knights of the Maccabees vs. Stensland, December, 
 1903, 206 111. 124. 
 
 Suicide — Burden of Proof on Society Always. 
 
 If a society files a special plea, alleging that a member suicided 
 in violation of the contract, the society has the burden of establishing 
 such fact, notwithstanding the proofs of death introduced in evi- 
 dence by the plaintiff contained an admission that the member sui- 
 cided, which makes a prima facie case of suicide, but which the plain- 
 tiff' seeks to overcome by introducing contradictory evidence. 
 
 Supreme Tent Knights of the Maccabees vs. Stensland, December, 
 1903, 206 111. 124. 
 
 Total Disability — Definition of. 
 
 One who has power to use his hands at labor for a brief time only, 
 and not for a sufficient time to make the result any benefit to him in 
 the way of making a living is ''totally incapacitated from perform- 
 ing manual labor" within the meaning of a benefit certificate, pro- 
 viding for the paj'ment of indemnity to one in such condition. 
 
 Grand Lodge Brotherhood of Locomotive Firemen vs. Orrell, Decem- 
 ber, 1903, 206 111. 208. 
 
 Society as to Funds a Mere Trustee. 
 
 The members of a society and those persons named in the statute 
 bearing certain relations to them are the beneficiaries of all funds 
 realized by the society, and it stands as the trustee handling the 
 funds. 
 
 Knights Templars' and Masons' Life Indemnity Co. vs. Vail, Decem- 
 ber, 1903, 206 111. 404.
 
 THE STATE OF ILLIXOIS 177 
 
 Society Limited as to Right to Collect Funds. 
 
 A society is not authorizod to eollcet funds from the membership 
 by way of dues or assessments in excess of the amount necessary 
 to pay death losses, indemnities, and the legitimate and reasonable 
 expenses of eonduetini;- tlic business of tlie society in the absence or 
 authority in the organic law so to do. 
 
 Knights Templars' and Masons' Life Inrlemnity Co. vs. Vail, Decem- 
 ber, 1903, 206 111. 404. 
 
 Assessments^Surplus Fund May be Applied to. 
 
 If the constitiition of a society provides that the surplus funds 
 shall be used without notice in payments of assessments, and the 
 evidence shows that such a surplus exists, a member can main- 
 tain his right to the application of the fund upon his unpaid assess- 
 ments. 
 
 Knights Templars' and Masons' Life Indemnity Co. vs. Vail, Decem- 
 ber, 1903. 206 111. 404. 
 
 Surplus Fund — Rights of Members in. 
 
 The acceptance by a member of a bond containing provisions 
 which are not in accord with the constitution of the society, does 
 not operate to change his interest under the constitution and benefit 
 cerificate in the surplus fund against which the bond was issued, 
 where there is no question of estoppel in the action. 
 
 Knights Templars' and Masons' Life Indemnity Co. vs. Vail, Decem- 
 ber. 1903. 206 111. 404. 
 
 Suicide — Burden on Defendant to Establish by a Preponderance of 
 the Evidence. 
 
 A defendant in an action on a benefit certificate has the burden 
 of establishing by a preponderance of the evidence the defense that 
 the insured committed suicide. 
 12
 
 178 FRATERNAL SOCIETY LAW 
 
 Rumbold vs. Supreme Council Royal League, February, 1904, 206 
 111. 513. 
 
 Benefit Fund Exempt From Debt, Dvity of Society Upon Beingi 
 Garnisheed. 
 
 It i.s the duty of a society if funds in its bauds belongiug to a 
 beneficiary are garnisheed to interpose the exemption created by the 
 beneficiary act of 1893, and it is not optional with the society whether 
 it will interpose the defense or suffer judgment. 
 
 Rumbold vs. Supreme Council Royal League. February, 1904, 
 111. 513. 
 
 206 
 
 Suicide — Presumptions Against. 
 
 "The law is of course well settled that suicide is not presumed, but 
 that the presumption is death from natural or accidental causes 
 rather than suicide, and au instruction that makes the test the 
 presence or absence of some other cause than suicide would seem 
 to be a reversal of the test." 
 
 Rumbold vs. Supreme Council Royal League, February. 1904, 206 
 111. 513. 
 
 Assignment of Fund Under Certificate Valid. 
 
 Contingent interests and expectancies, although not assignable at 
 law, may be transferred, and when assigned will be enforced equity, 
 if the contract was made in good faith and for a valuable considera- 
 tion. The contract in this case was a benefit certificate issued by the 
 Royal Temjilars of Temperance. 
 
 Jarvis vs. Binldey, February, 1904, 206 111. 541. 
 
 Beneficiary May Assign Expected Benefit, 
 
 The provisions of the statute and of the charters of benefit so- 
 cieties exempting benefit funds from liability for debts of a deceased 
 member have no application to the voluntary act of a beneficiary in
 
 THE STATE OF ILLINOIS 179 
 
 assigning her interest iu a certificate to secure payment of her 
 bona fide iudebteduess. 
 
 Jarvis vs. Binkley, February, 1904, 206 III. 541. 
 
 Benefit Fund Assigned, Enforcement of in Equity. 
 
 ^Vn assigumout by a beueHciary of lier contingent interest iu a 
 benefit certificate to secure payment to the assignee of groceries and 
 supplies furnished by liiui to tlic l)eneficiary before and after the 
 assignment may be iuforced in equity after sucli interest has vested, 
 notwitlistanding the charter of the society and the laws of the State 
 limits the benefit fund to members of the family, bldod relations, and 
 dependents of members. 
 
 Jarvis vs. Binldey, February, 1904, 206 111. 541. 
 
 Suicide "Sane or Insane" Clause Valid — Insanity no Defense. 
 
 A clause in a benefit certificate providing against liability if the 
 (insured "shall die by his own hand, whether sane or insane," was 
 held to be a complete exemption from liability iu case of the suicide 
 of the member, notwithstanding the fact that he was wholly insane 
 and totally incapable of understanding the physical nature and 
 efilect of his act. The court with much industry reviewed the leading 
 authorities upou the question at bar, but summed up its ruling in the 
 following language : "In the case at bar the replication admits the 
 cause of death, but seeks to avoid the condition in the contract by 
 setting up the insanity of the insured. It is not denie'd that the in- 
 surance company may contract to avoid liability if death results 
 from any disease of the mind, just as it may if death results from 
 any bodily disease, if the contract is embodied in apt language. 
 Nothing can be clearer than that the words 'sane or insane' were 
 introduced in the certificate by the insurer for the purpose of except- 
 ing from its operation any self-destruction whether the insured was 
 of sound mind, or in a state of insanity. There is no qualification 
 of the varying degrees of insanity, but tlie language is simply 'sane 
 or insane.' These words have a precise, definite, well understood
 
 180 FRATERNAL SOCIETY LAW 
 
 meauiug. \"o reasouable mind could be misled by them, and no 
 explanation of language could more clearly express the intention 
 of the parties in the construction of ordinary words. In a contract 
 thej- are to be given a meaning which they have to the ordinar3^ 
 mind, aiid to permit in cases of this kind a discussion and proof and 
 a differentiation of the degrees of insanity would be to do violence 
 to words having a generally accepted signification, and to do that 
 which the parties themselves never contemplated." 
 
 Seitzinger vs. Modern Woodmen of America, October, 1903, 204 111. .58. 
 
 Incontestable Clauses Valid. 
 
 A clause in a certificate making a certificate incontestable for 
 fraud in procuring same, after a lapse of a reasonable period is 
 valid, as creating a short statute of limitations. 
 
 Royal Circle vs. Aehterrath. October, 1903, 204 111. 549. 
 
 Construction of Contracts Must Favor Member. 
 
 An incontestable clause in a benefit certificate is to be liberally 
 construed in favor of the member. 
 
 Royal Circle vs. Aehterrath. October, 1903, 204 111. 549. 
 
 Good Standing- Presumed to Continue From Date of Certificate. 
 
 A certificate issued to a member is evidence of his good standing 
 at the time' of its issuance, and such good standing is presumed to 
 continue until the contrary is shown. 
 
 Royal Circle vs. Aehterrath. October, 1903, 204 111. 549. 
 
 Suicide Not a Criminal Act. 
 
 Suicide of a member does not reinhT the certificate void under a 
 provision in tlie constitution makinji- the certificate void if death 
 results on account of the insured viohiting any criminal law of the 
 State, since suicide is not a crime under the laws of this State.
 
 THE HTATE OF IhLlNOlH 181 
 
 Royal Cii-ile vs. Achtei-ratli, October, 1903,- 204 111. 549. 
 
 Suicide — In Absence of Proof Sanity Presumed. 
 
 If the proul sliows that a iiicniluT couimillcd siiiridc, \n\\ there is 
 no proof that be was insane, it will be presumed that he was sane 
 at the time of the comiiiissiou of the act. • 
 
 Royal Circle vs. Achterrath, October. 1903. 204 111. 549. 
 
 Proofs of Death Waived by Denial of Liability. 
 
 ■ A benefit society sent out a circular letter to subordinate lodges 
 denj-iny liability on a certain benefit certificate upon the ground 
 of non-payment of an assessment and thereby waives its right to 
 insist on failure to furnish proofs of death as ground of forfeiture. 
 
 Supreme Lodge Order of Mutual Protection vs. Meister, October. 1903, 
 204 111. 527. 
 
 Resort to Civil Courts Cannot be Denied or Restricted to Beneficiary. 
 
 A beneficiary named in a certificate is not bound to submit her 
 claim for adjudication to a tribunal provitled for in the by-laws of 
 the society before instituting suit in the courts. 
 
 Supreme Lodge Order of Mutual Protection vs. Meister, October, 1903, 
 204 111. 527. 
 
 Surplus Fund — Duty of Society to Apply Same to Prevent For- 
 feiture. 
 
 It is not conscionable for a society to forfeit a contraet when there 
 is in its treasurj' more than enough of the members' money to pay 
 his assessment, but it is its duty to so appropriate the money in its 
 hands as to prevent the member's forfeiture. 
 
 Supreme Lodge Order of Mutual Protection vs. Meister. October, 1903, 
 204 III. 527.
 
 182 FRATERNAL SOCIETY LAW 
 
 Society Bound by Acts of Chief Officials. 
 
 A benefit society is bound by the acts of its president in the ab- 
 sence of any proof that his ordinary powers as president were 
 abridged by the by-hiws of the society. Any act performed by the 
 president pertaining to the business of the society, not clearly for- 
 eign to the general power of the president, will in the absence of 
 proof, be presumed to have' been authorized by the societj^, as a 
 corporation acts through its president and secretary in the execution 
 of its contracts and agreements. 
 
 Traders' Mutual Life Insurance Co. vs. Johnson, December, 1902, 
 200 111. 359. 
 
 Waiver of Right of Forfeiture. 
 
 What facts will constitute a waiver is a mixed question of law 
 and fact. If the time for paying the premium on a contract is ex- 
 tended, the contract does not lapse, and if the premium is paid 
 within the extended period, it is not necessary that the member be in 
 good liealth at the time, or that he sign a cei"tificate to that effect, 
 as is required in the case of renewing lapsed certificates. 
 
 Aetna Life Insurance Co. vs. Sanford, Dec. 1902, 200 111. 126, affirm- 
 ing 9S 111. App. 376. 
 
 Tax, Illegal Levy no Ground for Relief After Payment. 
 
 A tax imposed upon n life insurance concern, voluntarily paid, 
 cannot be recovered ])uck, although illegal, and the fact that the tax 
 is paid unwilliimly does not coiislitute duress or eomimlsion. 
 
 Yates vs. Royal Insurance Co., Dec. 1002, 200 111. 202. 
 
 Suicide Provision Valid. 
 
 A provision in a contract providing that if the insured suicides, 
 whether sane or insane, 1li(> contract sliall be void, is valid. 
 
 Dickerson vs. Northwestern Mutual Lite Ins. Co., Dec. 1902, 200 III. 
 270, affirming 102 fll. App. 280.
 
 THE STATE OF ILLINOIS 183 
 
 President, Powers of. 
 
 A society is boiiiid by the acts of its president, in the absence of 
 any proofs that his ordinary powers as president were abridged by 
 the by-laws of the society. 
 
 Traders Mut. Life Ins. Co. vs. Johnson, Dec, 1902, 200 111. 359, affirm- 
 ing 101 111. App. 559. 
 
 Forfeiture, When Not Self -executing. 
 
 If there is no provision in the application for membership, the 
 certificate or the application for reinstatement, or any by-law to the 
 effect that false representations in an application for reinstatement 
 shall render the certificate void, a forfeiture alleged to arise from 
 such cause is not self-executing. 
 
 Traders Mut. Life Ins. Co. vs. Johnson, Dec, 1902, 200 111. 359, affirm- 
 ing 101 111. App. 559. 
 
 Assessment Notice, Technical Requirements of. 
 
 Whei'e a by-law requires notices of assessments to bear the official 
 stamp of the collector or the seal of the council, a notice without 
 either seal or .stamp is void. 
 
 Cronin vs. Supreme Council Royal League, Dec, 1902. 199 111. 228, 
 reversing 101 111. App. 479. 
 
 Evidence, When Member Incompetent Witness. 
 
 A memloer of a fraternal society is incompetent to tesifj' in behalf 
 of the society in a suit on a benefit certificate by a personal repre- 
 sentative of the beneficiary. 
 
 Cronin vs. Supreme Council Royal League, Dec, 1902, 199 111. 228, 
 reversing 101 111. App. 479.
 
 184 FRATERNAL SOCIETY LAM' 
 
 Waiver, Facts in Case. 
 
 For the facts iu a case where waiver of a provision of a contract 
 and liy-law was involved, see 
 
 Covei-dale vs. Royal Arcanum. Dec, 1902, 199 111. 649. 
 
 Beneficiaries, Enlarging Classes by Amendments. 
 
 If a statute enlarging classes of beneficiaries authorizes existing 
 societies to continue business by observing the provisions of the act 
 concerning annual reports, but provides that societies may avail 
 themselves of the provisions of the act by amendment to their con- 
 stitution, a society already existing may continue its business by 
 observing the provisions as to annual reports, but cannot avail Itself 
 of the provisions of the act enlarging the class of beneficiaries with- 
 out amending its charter to conform to the statute. 
 
 Grimme vs. Grimme. Oct.. 1902, 198 111. 265. affirming 101 111. App. 
 389. 
 
 Missouri Statute, Construction of. 
 
 Under the Missouri Fraternal Beneficiary Act of 1897, which act 
 enlarged the classes of beneficiaries of societies, any society doing 
 business in Missouri might continue doing business therein by com- 
 plying with the act concerning annual reports, without amending 
 its charter or re-incorporating. 
 
 Grimme vs. Grimme. Oct., 1902, 198 111. 265. Affirming 101 111. App. 
 389. 
 
 Suicide, Sane or Insane, Provisions Valid. 
 
 If the contract provides that the society shall not be liable if the 
 member's death shall result from his own suicidal act, whether 
 sane or insane, the society is not liable where the member volun- 
 tarily takes poison for the )MU'i)ose of ending his life, and with the 
 knowledge that such will be the efi'ect, and it makes no diflfereuce
 
 THE STATE OF ILLI^OIH 185 
 
 that he is moved thereto by ;iii insane impulse or that he is incapable 
 of forming a rational intent. 
 
 Supreme Lodge Order of Mutual Protection vs. Gelbke. Oct., 1902, 
 198 111. 365, reversing 100 111. App. 190. 
 
 Taxation, Funds of Fraternal Societies Subject to. 
 
 Laws exempting societies from taxation must be strictly con- 
 strued, and no property can be held exempt unless clearly within the 
 exemptive class; and a fraternal society deriving its funds from 
 assessments of members is not entitled to exemption from taxation 
 under the revenue act of the State, it not being a charitable insti- 
 tution. 
 
 State Council Cath. Knights of Illinois vs. Board of Review. Oct., 
 1902. 198 111. 441. 
 
 Taxation, Funds in Bank Belonging to Fraternal Societies Though 
 Drawn Against, Subject to. 
 
 Where drafts have been drawn upon a benefit fund prior to April 
 1st to pay beneficiaries of deceased members, but such drafts have 
 not been paid out of the fund, the fund nevertheless is subject to 
 taxation. 
 
 State Council Cath. Knights of Illinois vs. Board of Review. Oct., 
 1902, 198 111. 441. 
 
 Death in Common Disaster. 
 
 When two or more persons i)erish in a common disaster, there is at 
 common law no presumption of survivorsship, and if survivorship is 
 claimed it must be proved, and the party having the burden of proof 
 must fail if the proof cannot be made. 
 
 Middeke vs. Balder, Oct.. 1902, 198 111. 590, affirming 98 111, App. 525. 
 
 Beneficiary Has No Vested Interest in Certificate. 
 
 In Illinois, the beneficiary named in a certificate holds no vested
 
 Ib6 FRATERNAL SOCIETY LAW- 
 
 interest in the fund, foi- the reason that the same is under the con- 
 trol of the member. 
 
 Middeke vs. Balder, Oct., 1902, 198 111. 590, affirming 98 111. App. 525. 
 
 Death in Common Disaster. 
 
 Where two or more j)erish in a common disaster, they are treated 
 as all having perished at the same instant, and no one takes any- 
 thing from any of the others by reason of such others' death; and 
 where the heirs of the beneficiary have the burden of proving that 
 the beneficiary became entitled to the fund by reason of surviving 
 the insured, if they cannot make such proof the benefits will go 
 to the heirs of the deceased member. 
 
 Middeke vs. Balder, Oct., 1902, 198 111. 590, affirming 98 111. App. 525. 
 
 Forfeiture and Suspension. 
 
 For the facts in a case where it was alleged that the member had 
 been suspended and that that he was not in good standing at the 
 time of his death. 
 
 See Hunter vs. The National Union, June, 1902, 197 111. 478, affirm- 
 ing 99 111. 146. 
 
 Agency — Of Subordinate Lodge. 
 
 A subordinate lodge is the agent of the supreme lodge, and if a 
 subordinate lodge, with full knowledge of the falsity of the state- 
 ment in a member's application that he had never engaged in the 
 business of selling liquor, continues to receive assessments from him 
 and treats his certificate as in full force up to his death, the right 
 to forfeit the certificate for the falsity of such statement is waived. 
 
 Coverdale vs. The Royal Arcanum. Dec, 1901, 193 111. 91, reversing 
 93 111. App. 373. 
 
 Foreign Society, Rights of. 
 
 A society incorporated in a foreign State comes into Illinois not
 
 THK H'VA'n<: OF IIJJSOIS 1X7 
 
 as a matter of ley-al right, but only by comity, and is siibjuet to the 
 same restrictions and duties as local corporations ol' llic same class, 
 and has no ^■rcatcr powers. 
 
 Covei-clale vs. The Royal Arcaiuim, Dec, lyol, 193 111. 91, reversing 
 93 111. App. 373. 
 
 Contract, When Regarded as an Illinois Contract. 
 
 It' the ap])lication for membership is made in Illinois hy a citizen 
 and resident of the State, and the assessments are paid to a subordi- 
 nate lodge in Illinois, and the certificate, which specifies no place 
 of payment, is received and accepted in Illinois, the conti-act of in- 
 surance is governed l)y the laws of Illinois, though the society is 
 incorporated in a foreign State and the headquarters of the society 
 is located in such f(n-eign State. 
 
 Coverdale vs The Royal Arcanum, Dec. 1901. 193 111. 91, reversing 
 93 111. App. 373. 
 
 After-enacted Laws, When Will They Impair Contracts. 
 
 It is only when a member in express terms agrees to be bound 
 by amendments that may thereafter be enacted that he is bound 
 by subserpient amendments which impair the obligations of his con- 
 tract; and where the certificate of a member provides that he shall 
 comply with the constitution and laws, which constitution pro- 
 vides that it may be amended, it is held that this is not an express 
 agreement on the part of the member to be bound by future changes 
 which impair his contract. 
 
 Peterson vs. Gibson. Oct.. 1901. 191 111. 365, affirming 92 111. App. 595. 
 
 Mistake, Acquiescence of Member in Same. 
 
 In determining whether a deceased member knew of and acqui- 
 esced in a mistake made by an official of the society in the names 
 of the beneficiaries when making out a new certificate, the conduct 
 of the member in retaining the new certificate without objection is
 
 188 FRATERNAL SOCIETY LAW 
 
 competent evidence, but so also are his declarations tending to show 
 that he did not know of the mistake. 
 
 Towlie vs. Towne, Oct., 1901, 191 111. 478, affirming 93 III. App. 159. 
 
 Beneficiaries, Mistake of Member, Effect of. 
 
 If a member of a society did not read his new certificate and did 
 not know that a mistake had been made therein cutting; out the 
 half interest of his heirs and making his wife the sole beneficiary, 
 the rights of the heirs to have the certificate reformed after his 
 death is not barred by the mere fact of his retaining possession of 
 the certificate. 
 
 Towne vs. Towne, Oct., 1901, 191 III. 47S. affirming 93 111. App. 159. 
 Presumptions, What Will be Indulged in. 
 
 In an action upon a certificate, it is not incumbent upon the plain- 
 tiff to prove the truth of the statements in the application or the 
 member's compliance with the rules of the society, since the falsity 
 of the statements or non-compliance with the rules is a matter of 
 defense; nor need the plaintiff prove the election of the person in 
 possession of the office of secretary of the soeietj^ and performing 
 its duties. 
 
 Supreme Lodge. Bohemian Knights vs. Matf jowski, .\pril, 1901, 190 
 111. 142. affirming 92 III. App. 385. 
 
 Certificate, Assignable in Equity. 
 
 "While at law a benefit certificate is not assignable, in equity a 
 beneficial interest may be transferred therein which will be pro- 
 tected by a court of chancery. 
 
 McGrew vs. McGrew, .lune, 1901, 190 111. 604, affirming 93 111. App. 7G. 
 
 Certificate, Rights of Creditors in Equity, Under Assignment. 
 
 If a member of a society names his daughter as beneficiary, and
 
 THE HTATE OF ILLINOIS 189 
 
 agrees with her that upon his death she shall receive out of the pro- 
 ceeds of the certificate the amounts advanced by her to him, he has 
 no right, after the certificate is delivered and the money paid, to 
 change his beneficiary, notwithstanding provisions in the laws to 
 the effect that certificates cannot be made i)ayable to a creditor, nor 
 be held wholly or in part, nor assigned to secure a debt of the 
 member. 
 
 MoGrew vs. McGrew, June, 1901. 190 111. (!04, affirming 93 111. App. 76. 
 
 By-laws Prohibiting Members Going Into Saloon Business, Reason- 
 able. 
 
 A by-law which proliibits members from engaging in the Imsiiies.-; 
 of saloon-keeping and forfeits all beneficial rights of those who 
 violate the provisions of the law, is not unreasonable. 
 
 Moerschbaecher vs. Supreme Council Royal League, Dec, 1900, 188 
 III. 9, affirming 88 111. App. 89. 
 
 After-enacted Saloon Laws Valid. 
 
 At the time when the member joined a society he agreed to obey 
 all the laws then in force and those that might thereafter be en- 
 acted. Subsequently a by-law was adopted prohibiting members 
 from engaging in the saloon business and providing for forfeiture 
 of their contracts if they violated the law. Held, that the by-law 
 was valid and binding, and that a memlier who violated it, though 
 not formally notified of his violation and suspended, nevertheless 
 the certificate was forfeited. 
 
 Moerschbaecher vs. Supreme Council Royal Deague, Dec, 1900, 188 
 111. 9, affirming 88 III. App. 89. 
 
 After-enacted Laws Retroactive When. 
 
 Even if a certificate states that the by-laws are part of the con- 
 tract and that they are subject to amendment, subsequent by-laws 
 will be construed to apply only to contracts made after their adop-
 
 190 FRATERNAL SOCIETY LAW 
 
 tion, unless there is an express agreement that the member shall be 
 boimd by future by-laws. 
 
 ' Covenant Miit. Life Ass'n vs. Kentner. Dec, 1900. 188 III. 431. affirm- 
 ing 89 111. App. 495. 
 
 Attachment of Fund for Debt, Exemption. 
 
 The provision in the Frateriial Act of 1893 providing that "the 
 money to be paid by any society shall not be liable to attachment 
 or other process, and shall not be seized, taken, appropriated or 
 applied to pay any debt or liability of a certificate holder or of any 
 beneficiary," is held to be designed only to protect the societies 
 from legal process by creditors of their members or beneficiaries. 
 
 Martin vs. Martin, Oct.. 1900, 187 111. 2(H), affirming 87 111. App. .3G.5. 
 
 Creditors Rights to Fund, When. 
 
 Money belonging to a beneficiary collected bj^ his agent o na cer- 
 tificate is liable to garnishment in the hands of such agent by a 
 creditor of the beneficiary, since the x^rovisions of the fraternal act 
 of the State exempting funds of fraternal societies from being taken 
 or seized for the debts of members or of their beneficiaries does not 
 apply to money which has been paid over by the society. 
 
 Martin vs. Martin. Oct., 1900, 187 111. 200, affirming 87 111. App. 36.5: 
 
 After-enacted Laws Valid as to Extension of Class of Beneficiaries. 
 
 An agreement by a member to obey all by-laws in force or subse- 
 quently enacted, subjects tlie member and his beneficiary to the 
 operation of a sulisoquent by-law passed to carry into force the 
 provisions of the statute restricting payments to the family of the 
 member, his heirs, blood relations, affianced wife, or persons de- 
 pendent upon him. 
 
 Baldwin vs. Begley. Ajiril. liiOO, 18,5 111. ISO, distingnishing Voight 
 vs. Kersten. 164 111. 314. reversing 84 111. App. 074.
 
 TIIK STATE OF ILIJNOIS 191 
 
 Beneficiary — Rights of Heirs at Law. 
 
 Heirs iit law of a iiH'iiil)er are entitled to the benefit where the 
 person di^sigiinted as beiiefieiai-y is ontside the classes of persons 
 capable of taking tlie benefit. 
 
 Baldwin vs. Begley, April, 1900, 18.5 111. 180, distinguishing Voight 
 vs. Kersten, 164 111. 314, reversing 84 111. App. 674. 
 
 Proofs of Death, Beneficiary May Deny Statements in Same. 
 
 A beneficiary is not e.stop])ed to deny the truth of the statements 
 contained in the physician's affidavit, wliich under the rules of the 
 society is part of the proofs of death. 
 
 Modern Woodmen of America vs. Davis. Feb. 1900, 184 111. 236, affirm- 
 ing 84 III. App. 439. 
 
 Evidence, Proofs of Death Admissible. 
 
 A physician's affidavit as to the cause of a member's death is ad- 
 niissil)le in evidence with other papers constituting proofs of death. 
 
 Modern Woodmen of America vs. Davis, Feb. 1900, 184 111. 236. affirm- 
 ing 84 111. App. 439. 
 
 Mandamus Proper Remedy Against Superintendent of Insurance. 
 
 Mandamus lies against the Superintendent of Insurance to compel 
 him to issue a license to a foreign insurance concern where his 
 refusal to do so is not warranted by law. 
 
 The People vs. Van Cleave, Dec. 1899, 183 111. 330. 
 
 Subordinate Lodge Laws Part of Contract. 
 
 The constitution of a subordinate lodge is a part of the member's 
 contract of insurance, and where there is no requirement that the 
 laws of the subordinate lodge must strictly conform to those of the 
 society, which has no transactions with the members directly, the 
 former governs in cases of conflict.
 
 192 FRATERNAL SOCIETY LAW 
 
 Polish Roman Catholic Union vs. Warczali, Oct., 1899, 182 111. 27, 
 affirming 82 111. App. 351. 
 
 Forfeiture and Suspension. 
 
 For the facts in a case where it was alleged that the member was 
 not in good standing at the time of liis death, see 
 
 Catholic Order of Foresters vs. Fitz, Oct.. 1899. 181 111. 206. affirm- 
 ing 81 111. App. 389. 
 
 Charter Members ' Rights. 
 
 The charter members of the Modern Woodmen have no rights 
 which are not given to other members of the society. 
 
 Park vs. Modern Woodmen of America, Oct., 1899, 181 111. 214. 
 
 Fraternal Society Not Bound by Promoter's Contract. 
 
 A benefit society is not liable, in the absence of ratification, upon 
 a contract made by its ])rnmoters before its incorporation. 
 
 Park vs. Modern Woodmen of America, Oct.. 1899, 181 111. 214. 
 
 Supreme Lodge, Powers of. 
 
 The principal olSce of a society maj- be removed b.y direction of 
 its legislative body for the general good of the society and for the 
 accommodation of a great majority of its members, although all of 
 them do not give consent thereto. 
 
 Park vs. Modern Woodmen of America, Oct , 1899, 181 111. 214. 
 
 Meetings Held Out of Home State Validated. 
 
 The legalizing clause of the Fraternal Beneficiary Act of 1897, 
 which validates former action taken by fraternal societies at meet- 
 ings held iiiitsiili' I hi' State, is valid and not uiicoiistitntioiial. 
 
 Park vs. Modern Woodmen of America, Oct.. 1S99. 1S1 111. 214.
 
 THE STATE OF ILLINOIS 193 
 
 Amendments to Laws, Reservation of Power When. 
 
 A certificate of membersliip wliicli provides that the member shall 
 be bound by the laws, rules and regulations then in force or which 
 may thereafter be enacted by the society, sufficiently reserves the 
 right of a society to amend existing laws. 
 
 Fullenwider vs. Supreme Council Royal League, Oct., 1899, 180 111. 
 621, affirming 73 111. App. 321. 
 
 After-enacted Laws, Reasonable Increase of Rates. 
 
 A member has no vested right to have the rate of assessments 
 fixed by a by-law in force when the contract was entered into, re- 
 main unchanged where he has agreed to be bound by future enacted 
 by-laws; and Avhere the society in such case increases the assess- 
 ment from $2.62 to $4.52 per month, such increase is not unreason- 
 able, and the same is valid where there is no fraud or improper 
 motive established on the part of the society. 
 
 Fullenwider vs. Supreme Council Royal League, Oct., 1899, 180 111. 
 621, affirming 73 111. App. 321. 
 
 Supreme Lodge Cannot Delegate Legislative Power. 
 
 A supreme lodge cannot delegate to a board created by it the 
 power to pass a by-law forfeiting the certificate of membership of 
 any member whose death shall result from self-destruction, volun- 
 tary or involuntary, whether sane or insane. 
 
 Supreme Lodge, Knights of Pythias vs. Kutscher, April, 1899. 179 
 III. 340, reversing 72 111. App. 462. 
 
 After-enacted Laws Valid Though Not Adopted in Formal Way. 
 
 The adoption by the supreme lodge of an unauthorized by-law 
 passed by a subordinate board renders such by-law effective, and 
 binds members who have agreed to comply with by-laws now in 
 force or thereafter enacted by the supreme lodge. 
 13
 
 194: FRATERNAL SOCIETY LAW 
 
 Supreme Lodge, Knights of Pythias vs. Kutscher, April, 1899, 179 
 111. 340, reversing 72 111. App. 462. 
 
 Constitution a Mere By-law. 
 
 The constitution of a society has the force of a by-law only, and 
 cannot take away the inherent power to adopt such other by-laws as 
 the charter permits. 
 
 Supreme Lodge, Knights of Pythias vs. Kutscher, April, 1899, 179 
 111. 340, reversing 72 111. App. 462. 
 
 After-enacted Laws Binding and What Are Reasonable. 
 
 A by-law forfeiting claims for the death of a member by suicide 
 or intoxication, is reasonable and binds members joining before its 
 passage where their contracts require compliance with the laws in 
 force and those thereafter enacted. 
 
 Supreme Lodge, Knights of Pythias vs. Kutscher, April, 1899, 179 
 111. 340, reversing 72 111. App. 462. 
 
 After-enacted Laws — Power to Violate Formal Rules to Enact Laws. 
 
 The adoption by the supreme lodge, by a viva voce vote, of a 
 committee report approving a suicide by-law passed by a subordi- 
 nate board without authority, is an enactment of such law by the 
 supreme lodge, although its constitution provides another method 
 for enacting by-laws, and binds members whose contracts require 
 compliance with all laws now in force or thereafter enacted by the 
 supreme lodge. 
 
 Supreme Lodge Knights of Pythias vs. Trebbe, April, 1899, 179 111. 
 348, reversing 71 111. App. 545. 
 
 Cancellation of Certificate. 
 
 An allegation that the defendant, in a bill to cancel his certificate 
 of membership in a society, gave untrue answers to questions in his 
 application, is not sustained where the defendant testifies that the
 
 THE fiTATE OF JlJ.IXOIfi 195 
 
 answers written by the society's examining physician did not corre- 
 spond with those given by the defendant, and that they were not 
 read over to liim, which testimony is nndenied by the examiner 
 called by the conii)lHinMnt: and in such a ease where it is sought 
 during the member's last illness to cancel the eertifieati'. the society 
 must prove substantial violntion of the terms of tlic contract as 
 alleged in its bill. 
 
 Arnhorst vs. National Union, June, 1899. 179 111. 4.Sfi. reversing 
 74 111. App. 482. 
 
 Foreign Society, Rights of. 
 
 A foreign corporation cannot collect money in Illinois unless it 
 has complied with the laws of this State preserving the terms upon 
 which it may transact business therein; and the money paid by 
 membei-s of a local branch to a local treasurer, which remains in his 
 possession, is the propcrtj' of the members of the local branch as 
 individuals, where the society has no authority to transact business 
 in the State. 
 
 Supreme Sitting Order of Iron Hall vs. Grigsby, Feb., 1899, 17S 111. 57, 
 affirming 78 111. App. 300. 
 
 Construction of Act of 1893 — Assignability of Certificate. ' 
 
 The act of 1893 relating to fraternal societies does not apply to 
 certificates issued prior to a society's reorganization under that 
 act. T)or will its provisions govern the assignment of such certificate 
 in the absence of anj'thing to show the assignment was made after 
 such reorganization. Prior to the passage of the act of 1893, an 
 assignee of a benefit certificate need not have an insurable interest 
 in the member's life. 
 
 Moore vs. Chicago Guaranlj- Fund Life Society. Feb., 1899, 178 111. 
 202, affirming 76 111. App. 433. 
 
 Beneficiaries, Class of May be Restricted, 
 
 A society organized under the general ini'oriioi'atioii act prior to
 
 196 FRATERNAL SOCIETT LAW 
 
 the passage of the fraternal beneficiary act, not for pecuniary profit, 
 may by its certificate of incorporation, laws and contracts restrict 
 the class of eligible beneficiaries, notwithstanding the statute under 
 which it is incorporated is broader in its terms. 
 
 Norwegian Old People's Home Society vs. Wilson, Dec, 1898, 176 111. 
 94, affirming 73 111. App. 287. 
 
 Beneficiary, Has No Vested Rights, Change of Beneficiary. 
 
 The beneficiary named in a certificate, from the mere fact of such 
 naming, has no vested interest in the certificate, and the member 
 may change the beneficiary at any time in accordance with the 
 statute and the laws of the society; and in the absence of any pro- 
 vision of statute, laws of the society, or the contract expressly au- 
 thorizing or prohibiting the change by the member, the member has 
 a vested right to make such change from the very character and 
 purpose of the society itself, 
 
 Delaney vs. Delaney, Oct., 1898, 175 111. 187, affirming 70 111. App. 130. 
 
 Beneficiaries, By-laws Respecting- May Be Waived. 
 
 The by-laws of a society with reference to making changes of 
 beneficiaries may be waived by the society and a new cei'tificate 
 may be issued in lieu of an old certificate in any manner satisfac- 
 tory to the society and the member. 
 
 Delaney vs. Delaney, Oct., 1898, 175 111. 187, affirming 70 111. App. 130. 
 
 Construction of Act of 1893. 
 
 For the facts in a case and the opinion of the court discussing 
 the Fraternal Bonoficiary Act of 1893, see 
 
 Lehman vs. Clark, Oct., 1898, 174 111. 279. following Bastian vs. 
 Modern Woodmen, 166 111. 595. 
 
 Assessments, Member Cannot Be Sued for Same. 
 
 Levying an assessment on nn insurance certificate in an assess-
 
 THE STATE OF ILLISOIS 197 
 
 ment society does not, where the contraet is unilateral, create the 
 relation of debtor and creditor between the society and the member, 
 and upon the member's failure to pay the assessment when due, 
 neither the society nor its receiver can enforce payment by suit. 
 
 Lehman vs. Clark, Oct., 189S, 174 111. 279. 
 
 Agency of Subordinate Lodge. 
 
 The relation between a subordinate lodge and the society is that 
 01 agency, and where forfeiture of the certificate of a member of a 
 subordinate lodge is sought, it may be shown in defense that the 
 subordinate lodge, with knowledge of the alleged cause of forfeiture, 
 treated the insurance as in force, receiving dues and paying them 
 over to the society. 
 
 High Court, Independent Order of Foresters vs. Schweitzer, Feb., 
 1898, 171 111. 325, affirming 70 111. App. 139. 
 
 After-enacted Laws, When Valid. 
 
 An agreement in an application that the applicant shall be bound 
 and his contract of insurance controlled by the laws then in force 
 or which might thereafter be enacted by the society, does not in- 
 clude in its terms a by-law subsequently enacted by a subordinate 
 body of the society which provides for forfeiture of the insurance 
 upon self-destruction of the members. 
 
 Supreme Lodge Knights of Pythias vs. McLennan, Feb., 1898, 171 111. 
 417, affirming 69 111. App. 599. 
 
 Beneficiary, Right to Name By Will. 
 
 A by-law which provides that "in the event of the death of all 
 the beneficiaries designated by a member in accordance with the 
 laws of the order, upon the death of such member, if he shall have 
 made no other disposition thereof, the benefit shall be paid" to cer- 
 tain designated persons, recognizes the member's right, upon the 
 death of his main beneficiary, to dispose of the benefit by will to 
 any person eligible as a beneficiary.
 
 198 FRATERNAL SOCIETY LAW 
 
 High Court Catholic Order of Foresters vs. Malloy, November, 1897, 
 169 111. 58, affirming 67 111. App. 665. 
 
 Beneficiary, Equitable Rights May Be Enforced in Certificate. 
 
 A member wlio, in consideration of a cash loan from his wife, 
 makes her the beneficiary in a certificate, which certificate is deliv- 
 ered to and retained by her. and upon which she pays all the assess- 
 ments required therein, cannot divest her rights therein by making 
 a false afiidavit that the certificate was lost and thus procuring 
 from the society a duplicate certificate, but naming new beneficiaries ; 
 and while a benefit certificate is not assignable, rights may be ac- 
 quired therein which will be enforced in equitj'. In this case the 
 court held that the wife had a vested equitable interest in the 
 original certificate. 
 
 Supreme Council Royal Arcanum vs. Tracy, Nov., 1897, 169 111. 123, 
 affirming 67 111. App. 202. 
 
 Benefit Fund No Part of Member's Estate. 
 
 A fimd arising from a benefit certificate is not an asset of the 
 estate of the deceased, but goes directly to the beneficiary named 
 therein, and is not payable to the deceased nor for his benefit, nor 
 is it subject to his debts. 
 
 Stake vs. Stake. Oct.. 1907, 228 III. 630. . 
 
 Beneficiary, Member's Marriage Does Not Affect Designation Made. 
 
 Sul)sequent marriage of a member without changing tlie bene- 
 ficiary named in the certificate as originally issued does not afl'ect 
 the certificate or tlie rights of the beneficiary, and no principle of 
 public policy is violated by permitting a member to designate a 
 stranger as his beneficiary, even though the member may leave a 
 wife (ir iillipi- relatives. While the certificate in the case at bar was 
 is.sued by a fraternal society, it was not subject to the fraternal 
 beneficiary act of the State of Illinois. 
 
 Stake vs. Stake, Oct., 1907, 228 111. 630.
 
 THE STATE OF ILLINOIS 199 
 
 Beneficiary, Not Affected by Member's Marriage. 
 
 Where a member of a society organized under the general incor- 
 poration act of 1872 as a corporation not for pecuniary profit, but 
 for the purpose of paying death benefits to the widows, orphans 
 and devisees of deceased members, names his brother as beneficiary 
 and subsequently marries without changing the beneficiary, the 
 brother is entitled to the fund, notwithstanding the deceased leaves 
 a wife and practically no estate. 
 
 Stake vs. Stake, Oct., 1907, 228 111. 630. i
 
 200 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF INDIANA. 
 
 CHAPTER 15. 
 
 Definitions — Sources of Revenue — Exempt from Insurance Laws — 
 Reserve or Emergency Funds. 
 
 Section 1. That a fraternal beneficiary association is hereby 
 declared to be ~ a corporation, society or voluntary association 
 formed, organized and carried on for the sole benefit of its members 
 and their beneficiaries and not for profit. Each association shall 
 have a lodge system with ritualistic form of work and a representa- 
 tive form of government. Any association having a supreme govern- 
 ing or legislative body and subordinate lodges or branches by what- 
 ever name known, into which members shall be elected, initiated 
 and admitted in accordance with its constitution, laws, rules, regula- 
 tions and prescribed ritualistic ceremonies, which subordinate lodges 
 or branches shall be required by such association to hold regular 
 or stated meetings at least once in each month, shall be deemed to 
 be operating under the lodge system. An association shall be deemed 
 to have a representative form of government when it shall provide 
 in its constitution and laws for a supreme legislative or governing 
 body, composed of representatives elected either by the members 
 or by delegates elected by the members through a delegate con- 
 vention system, together with other members as may be prescribed 
 by its constitution and laws : Provided, That the elective representa- 
 tives shall constitute a majority in number and have not less than 
 a majority of the votes, nor less than the votes required to amend 
 its constitution and laws, and Provided, further. That the meetings 
 of the representatives or delegates shall be held as often as once in
 
 THE STATE OF INDIANA 201 
 
 four years. The members, officers, representatives or delegates of a 
 fraternal beneficiary association shall not vote by proxy. The 
 supreme lodge or similar governing body shall have exclusive right 
 to change, amend or othervv'ise alter the by-laws of the association. 
 Every such association shall make provision for the payments of 
 benefits in case of death, and may make provision for the payment 
 of benefits in case of sickness, temporary or permanent physical 
 disability, either as the result of disease, accident or old age, pro- 
 vided that the period of life at which the payment of physical dis- 
 ability benefits on account of old age commences shall not be under 
 seventy (70) years, all subject to the compliance of its members with 
 its constitution and by-laws. The fund from which the expenses 
 of such association shall be defrayed shall be derived from assess- 
 ments or dues collected from its members. Payment of death bene- 
 fits shall be to the families, heirs, blood relatives, affianced husband 
 or affianced wife of, or to persons dependent upon the member. 
 Such associations shall be governed by this act and shall be exempt 
 from the provisions of the insurance laws of this State, and no law 
 hereafter passed shall apply to them unless they be expressly desig- 
 nated therein. Any such fraternal beneficiary association may 
 create, maintain, disburse and apply a reserve or emergency fund in 
 accordance with its constitution or by-laws, and every such associa- 
 tion shall be deemed and held to be a charitable institution. The 
 terra "fraternal beneficiarj' association" wherever used in this act. 
 or in any other law of this State hereafter enacted, shall be con- 
 strued to mean anj' association such as is defined in this section: 
 Provided, That none of the provisions of this act shall apply to the 
 Brotherhood of Locomotive Firemen and Enginemen, the Brother- 
 hood of Railroad Trainmen, the Order of Railway Conductors, the 
 Order of Railroad Telegraphers, or the Switchmen's Union of North 
 America, or any other similar order. Act of 1903, as amended 1907. 
 
 Existing Corporations. 
 
 Section 2. All such associations coming within the description 
 as set forth in section one (1) of this act, organized under the laws 
 of this or any other State, territory or province, and now doing
 
 202 FRATERNAL SOCIETY LAW 
 
 business in this State, may continue such business provided they 
 hereafter comply with the provisions of this act regulating annual 
 reports to, and the designation of the auditor of state or his suc- 
 cessors in office as a person upon whom legal process may be served 
 as hereinafter provided. Such associations shall also be required to 
 make sufficient assessments at the rates named in their certificates 
 of membership to meet all death losses as they occur, and such asso- 
 ciations shall not be considered insolvent unless the mortuary funds 
 in the hands of the supreme officers are less than the death claims 
 outstanding against the association. All such associations which 
 use rates of assessments lower than those based on the national fra- 
 ternal congress table of mortality shall be prohibited from advertis- 
 ing or representing that extra assessments shall not be required to 
 pay all death losses as they occur. If the membership certificates 
 issued by any such association provide for the payment of accident 
 or sick benefits, other than those which shall permanently reduce 
 the face of the certificate, then the by-laws and certificate shall 
 clearly state what portion of the assessments are for the payment of 
 such benefits and all such funds shall be kept separate and distinct 
 from the funds available for the payment of death losses, and in no 
 event shall the latter be used for the payment of sick or accident 
 disability benefits. The by-laws of every such association shall also 
 clearly state what part if any of each assessment may be used for 
 expenses, and no other part may be used for any purpose whatever 
 other than the payment of losses, and any officer or other person 
 who shall make any other use of such funds shall be deemed guilty 
 of a misdemeanor and upon conviction shall be punished by a fine 
 of not less than $500 nor more than $1,000, or imprisonment in the 
 county jail for not less than six months nor more than one year, or 
 both, in the discretion of the court. Act of 1903, as amended, 1907. 
 
 Admission of Foreign Association — Pay Certificates in Full — Tables 
 of Rates — Examination — Conditions Precedent. 
 
 Section 3. Any such fraternal beneficiary association, within the 
 description as set forth in Section one (1) of this act, organized 
 under the laws of any other State, territory or province, and not 
 
 {
 
 THE STATE OF INDIANA 203 
 
 now doing- business within [this] State, shall he admitted to do 
 business within this State,. when it shall be shown to the satisfaction 
 of the auditor nf Stale that its charter or articles td' association, 
 and its bydaws ju-nvidc tor the conduct of its business in accordance 
 with the j)rovisions of this act; that it luis at the time it ajjplies for 
 admission to do business within this State a sufficient nundjer of 
 members so that one assessment, or other stated payments in lieu 
 of such assessment, ujion such mendjers, the amount of which assess- 
 ment or other stated i)ayment shall not exceed the amount pre- 
 viously provided liy the laws of the order, shall be sufficient to pay 
 in full the largest death loss the association might be called upon, 
 under its laws to pay, and that it has paid in full all just benefits, 
 claims of whatever nature incurred by it within the two years last 
 past: Provided, Such fraternal beneficiary association shall show 
 that the mortuary assessment rates, provided for in whatever plan of 
 business it has adopted are not lower than is indicated as necessary 
 by the following mortality table : 
 
 Age. 
 
 Number 
 Living. 
 
 Number 
 Dying. . 
 
 Probability 
 of Dying. 
 
 20 
 
 100,000 
 
 500 
 
 .005000 
 
 21 
 
 99,500 
 
 501 
 
 .005035 
 
 22 
 
 98,999 
 
 502 
 
 .005071 
 
 23 
 
 98,497 
 
 503 
 
 .005107 
 
 24 • 
 
 97,994 
 
 505 
 
 .005153 
 
 25 
 
 97,489 
 
 507 
 
 .005201 
 
 26 
 
 96,982 
 
 510 
 
 .005259 
 
 27 
 
 96,472 
 
 513 
 
 .005318 
 
 28 
 
 95,959 
 
 517 
 
 .005388 
 
 29 
 
 95,442 
 
 522 
 
 .005469 
 
 30 
 
 94,920 
 
 527 
 
 .005552 
 
 31 
 
 94,393 
 
 533 
 
 .005647 
 
 32 
 
 93,860 
 
 540 
 
 .005753 
 
 33 
 
 93,320 
 
 548 
 
 .005872 
 
 34 
 
 92,772 
 
 557 
 
 .006004 
 
 35 
 
 92,215 
 
 567 
 
 .006149 
 
 36 
 
 91,648 
 
 578 
 
 .006307 
 
 37 
 
 91,070 
 
 591 
 
 .006490
 
 204 FRATERNAL SOCIETY LAW 
 
 Age. 
 38 
 
 Numher 
 Living. 
 
 90,479 
 
 Number 
 Dying. 
 
 606 
 
 Probability 
 of Dying. 
 
 .006698 
 
 
 39 
 
 89,873 
 
 622 
 
 .006921 
 
 
 40 
 
 89,251 
 
 640 
 
 .007171 
 
 
 41 
 
 88,611 
 
 660 
 
 .007448 
 
 
 42 
 
 87,951 
 
 683 
 
 .007766 
 
 
 43 
 
 87,268 
 
 708 
 
 .008113 
 
 
 44 
 
 86,560 
 
 734 
 
 .008480 
 
 
 45 
 
 85,826 
 
 761 
 
 .008867 
 
 
 46 
 
 85,065 
 
 790 
 
 .009287 
 
 
 47 
 
 84,275 
 
 822 
 
 .009754 
 
 
 4S 
 
 83,453 
 
 857 
 
 .0102693 
 
 
 49 
 
 82.596 
 
 894 
 
 .0108238 
 
 
 50 
 
 81,702 
 
 935 
 
 .0114440 
 
 
 51 
 
 80.767 
 
 980 
 
 .0121337 
 
 
 52 
 
 79,786 
 
 1,029 
 
 .0128970 
 
 
 53 
 
 78,757 
 
 1,083 
 
 .0137511 
 
 
 54 
 
 77,674 
 
 1,140 
 
 .0146767 
 
 
 55 
 
 76,534 
 
 1,202 
 
 .0157054 
 
 
 56 
 
 75,332 
 
 1,270 
 
 .0168587 
 
 
 57 
 
 74,062 
 
 1,342 
 
 .0181200 
 
 
 58 
 
 72.720 
 
 1.418 
 
 .0194994 
 
 
 59 
 
 71,302 
 
 1.501 
 
 .0210513 
 
 
 60 
 
 69,801 
 
 1,588 
 
 .0227504 
 
 
 61 
 
 68,213 
 
 1,681 
 
 .0246434 
 
 
 62 
 
 66,532 
 
 1.778 
 
 .0267240 
 
 
 63 
 
 64.754 
 
 1.880 
 
 .0290330 
 
 
 64 
 
 62,874 
 
 1,985 
 
 .0315711 
 
 
 65 
 
 60.889 
 
 2.094 
 
 .0343904 
 
 
 66 
 
 58,795 
 
 2.206 
 
 .0375206 
 
 
 67 
 
 56,589 
 
 2,318 
 
 .0409620 
 
 
 68 
 
 54,271 
 
 2,430 
 
 .0447753 
 
 
 69 
 
 51.841 
 
 2.539 
 
 .0489767 
 
 
 70 
 
 49.302 
 
 2.645 
 
 .0536489 
 
 
 71 
 
 46.657 
 
 2,744 
 
 .0588122 
 
 
 72 
 
 43.913 
 
 2,832 
 
 .0644912 
 
 
 73 
 
 41.081 
 
 2.909 
 
 .0708113 
 
 -1 
 
 ? 
 
 >
 
 THE STATE OF INDIANA 205 
 
 Age. 
 
 Ntimher 
 Living. 
 
 Number 
 Dying. 
 
 Probability 
 of Dying. 
 
 H 
 
 38,172 
 
 2,969 
 
 .0777795 
 
 75 
 
 35,203 
 
 3,009 
 
 .0854757 
 
 76 
 
 32,194 
 
 3,026 
 
 .0939!)27 
 
 77 
 
 29,168 
 
 3,016 
 
 .1034010 
 
 78 
 
 26,152 
 
 2,977 
 
 .1138345 
 
 79 
 
 23,175 
 
 2,905 
 
 .1253506 
 
 80 
 
 20,270 
 
 2,799 
 
 .1385163 
 
 81 
 
 17,471 
 
 2,659 
 
 .1521951 
 
 82 
 
 14,812 
 
 2,485 
 
 .1677694 
 
 83 
 
 12,327 
 
 2.280 
 
 .1849599 
 
 84 
 
 10,047 
 
 2,050 
 
 .1855707 
 
 85 
 
 7,997 
 
 1,800 
 
 .2250844 
 
 86 
 
 6,197 
 
 1,539 
 
 .2483460 
 
 87 
 
 4.658 
 
 1,277 
 
 .2741520 
 
 88 
 
 3,381 
 
 1,023 
 
 .3025732 
 
 89 
 
 2,358 
 
 788 
 
 .3341815 
 
 90 
 
 1,570 
 
 579 
 
 .3687898 
 
 91 
 
 991 
 
 404 
 
 .4076690 
 
 92 
 
 587 
 
 264 
 
 .4497445 
 
 93 
 
 323 
 
 161 
 
 .4984520 
 
 94 
 
 162 
 
 89 
 
 .5493827 
 
 95 
 
 73 
 
 19 
 
 .6027397 
 
 96 
 
 29 
 
 19 
 
 .6551724 
 
 97 
 
 10 
 
 7 
 
 .7000000 
 
 98 
 
 3 
 
 3 
 
 1.00000(10 
 
 And provided further, That before any such fraternal beneficiary 
 association shall be authorized to do business in this State it .shall 
 file with the auditor of state a duly certified copy of its constitution 
 or by-laws, certified to under oath by its secretary or similar officer 
 and its chief executive officer, together with the appointment of 
 the auditor of state as a person upon whom all legal process may 
 be served as hereinafter provided ; and it must also be shown that 
 the said association is duly authorized to do business within the 
 State, territory or province in which it is incorporated or organized,
 
 206 FRATERNAL SOCIETY LAW 
 
 provided the laws of such State, territory or province provide for such 
 authorization, but in case the laws of such State, territory or prov- 
 ince do not provide for any such formal authorization for such asso- 
 ciation to do business, then such association shall be shown to be con- 
 ducting its business in accordance with the provisions of this act ; 
 and to satisfy himself that such is the fact, the auditor of state may 
 personally, or by some person designated by him, examine into the 
 condition, affairs, character and business methods, accounts, books 
 and investments of such association at its home ofSce, which ex- 
 amination shall be at the expense of such association ; but such 
 expense shall not exceed ten dollars per diem in addition to the 
 reasonable traveling expenses of the person making such examina- 
 tion : Provided, That the auditor of state may accept the examina- 
 tion made by the insurance department of the State, territory or 
 province in which the home office of said association is located. 
 Every provision of this section shall be considered a condition prec- 
 edent for such association doing business within this State. As 
 amended Acts 1901, p. 312. R. S. 1901, § 5050c. 
 
 Annual Reports — License — Report, Form of and Contents — Addi- 
 tional Inquiries. 
 
 Section 4. Every such association doing business within this State, 
 shall, on or before the first day of March of each year, make and 
 file with the auditor of state of this State a report of its affairs 
 and oi)eratiou during the year ending on the thirty-first day of De- 
 cember, immediately preceding, togetlier with a certified cop.y of 
 its laws, rules and regulations : Provided, That no such association 
 organized under the laws of this State prior to the passage of this 
 act, shall be required to make such report until it is two years 
 old. If such association is found, upon examination of its reports 
 and laws, to be doing business in accordance with the provisions 
 of this act, the auditor of state shall issue it a license to do busi- 
 ness within this State for one .year, for which he shall charge a fee 
 of five dollars ($5). Such annual reports, which shall be in lieu of 
 all other re])orts required by the auditor of state, shall be made 
 on blank forms provided by the auditor of state, or may be printed
 
 THE STATE OF INDIANA 207 
 
 in pamphlet form, and shall be verified under oath by the duly 
 authorized ofificei's of such association. This report, or the sub- 
 stance thereof, shall be published in the annual report of the auditor 
 of state, in a part to be entitled "Fraternal Beneficiary Associa- 
 tions," and shall contain answers to the following questions, and any 
 other information the auditor of state may require : 
 
 First. Number of certificates issued during the year or number 
 of members admitted. 
 
 Second. Amount of indemnity effected thereby. 
 
 Third. Number of losses or benefit liabilities incurred. 
 
 Fourth. Number of losses or benefit liabilities paid. 
 
 Fifth. The amount received from each assessment during the 
 year. 
 
 Sixth. Total amount paid members, beneficiaries, legal repre- 
 sentatives or heirs. 
 
 Seventh. Number and kinds of claims for which assessments have 
 been made. 
 
 Eighth. Number and kind of claims compromised or resisted, and 
 brief statement of reasons. 
 
 Ninth. Does the association charge annual or other periodical 
 dues or admission fees? 
 
 Tenth. How much on each one thousand dollars, annually or per 
 capita, as the case may be? 
 
 Eleventh. Total amount received, from what source, and the 
 disposition thereof. 
 
 Twelfth. Total amount of salaries paid to officers. 
 
 Thirteenth. Does the association guarantee, in its certificates, 
 fixed amounts to be paid, regardless of amounts realized from assess- 
 ments, dues, admission fees and donations? 
 
 Fourteenth. If so, state amount guaranteed, and the security for 
 such guaranty. 
 
 Fifteenth. Has the association a reserve fund? 
 
 Sixteenth. If so, how is it created, what is its purpose, its amount, 
 and how is it invested? 
 
 Seventeenth. Has the association more than one class? 
 
 Eighteenth. If so. how many and the amount of indemnity in 
 each?
 
 208 FRATERNAL SOCIETY LAW 
 
 Nineteenth. Number of members in each class. 
 
 Twentieth. If it is a voluntary association, so state and give 
 date of its organization. 
 
 Twent,y-first. If organized under the laws of this State, under 
 what law and at what time, giving year and date of the approval 
 of the act 1 
 
 Twenty-second. If organized under the laws of any other State, 
 territory or province state such fact and the date of organization, 
 with complete reference and designation of the law or laws under 
 which organized. 
 
 TAvent.y-third. Number of certificates of benefieiarj' membership 
 lapsed during the j^ear. 
 
 Twenty-fourth. Number in force at the beginning and end of the 
 year; if more than one class, the number in each class. 
 
 Twenty-fifth. Names and addresses of its president, secretary and 
 treasurer or corresponding officers. 
 
 The auditor of state is authorized and empowered to address any 
 additional inquiries to any such association in relation to its busi- 
 ness or condition, or any other matter connected with its transaction, 
 relative to the business contemplated by this act, and such officers 
 of such associations as the auditor of state may require shall 
 promptly i"eply in writing, under oath, to all such inquiries. R. S. 
 1901, § 5050d. 
 
 Auditor of State Attorney for Process — Duty of Auditor — Service 
 of Process on Domestic Associations. 
 
 Section 5. Every such association now doiug or hereafter admit- 
 ted to do business within this State, and not having its principal 
 office within tlii.s State, and not being organized under the laws of 
 this State, shall appoint in writing the auditor of state and his suc- 
 cessors in office to be its true and lawful attorney, upon whom all 
 legal process in any action or proceeding against it must be served, 
 and in such writing shall agree that any lawful process against 
 it which is served on said auditor of state, shall be of the same legal 
 force and validity as if served upon said association, and that the 
 authority shall remain in force so long as any liability against such 
 association remains outstanding within this State. Copies of such
 
 THE STATE OF INDIANA 209 
 
 certificate, certified by said auditor of stati', shall br clcriucd svii'- 
 ficient evidence thereof, and shall be admitted in evidence with the 
 same force and efi'ect as the original tlici-oof might ))(■ admitted. 
 Service u])on such auditor of state shall bi' deemed sni'licient service 
 U|iiiii such associal inn, pi-dxidi'd tiiat siidi proci'ss shall not bu re- 
 turnable until thirty da\s after such service. When legal process 
 against any such association is served upon the said auditor of state, 
 he shall immediately notify the association of such service by letter, 
 prepaid and directed to its secretary or corresponding officer, and 
 shall, within two daj^s after such service, forward in the same man- 
 ner a copy of the jjrocess served upon him to such officer. The 
 plaintiif in the action upon which .such process was issued shall pay 
 to the auditor of state at the time of sueli service a fee of three 
 dollars ($3), which shall be recovered bj^ said plaintiff as a part 
 of his taxable costs, if he prevail in his said action. The auditor 
 of state shall keep a record of all processes served upon him, which 
 record shall show the day and hour when such service was made 
 and when the notice hereinbefore provided for was given to the 
 officers of such association. In all suits in this State against any 
 such association organized under the laws of this State, and having 
 its principal office in this State, service shall be had only upon the 
 chief executive officer or the secretary or corresponding officer of 
 such association. R. S. 1901, § 5050e. 
 
 License and Fee. 
 
 Section 6. The auditor of state, upon the application of any fra- 
 ternal beneficiary association having the right' to do business within 
 this State, as provided for in this act, shall issue to such association 
 a permit in writing authorizing such association to do business 
 within this State for one year from the date thereof, for which 
 permit or certificate and all proceedings in connection therewith 
 such association shall pay to the auditor of state a fee of five dollars 
 ($5). R. S. 1901, §5050f. 
 
 Examination by Auditor — Expense. 
 
 Section 7. The auditor of state, at the reqiiest of any such frater- 
 14
 
 210 FRATERNAL SOCIETY LAW 
 
 nal beneficiary association doing- business under the provisions of 
 this act in this State, shall make an examination of the books and 
 accounts of such association, and shall furnish a certificate of the 
 results of such examination, showing all of such association's assets 
 and how invested, the condition of its business, its methods and such 
 other particulars as may be deemed necessary to show the char- 
 acter and condition of the financial affairs of such association ; and 
 such association shall at all times be subject to such examination 
 without any request being made by them. The necessary expense 
 of this examination shall be paid by such association, but it shall 
 not exceed ten dollars a day and the necessary traveling expenses of 
 the person making the examination. R. S. 1901, § 5050g. 
 
 Organization — Approval by Auditor — Fee — Certificate — Articles, 
 Form and Contents. 
 
 Section 8. Any number of persons, citizens of the United States, 
 not less than seven, five of whom shall also be citizens of the State 
 of Indiana, hereafter desiring to form a fraternal beneficiary asso- 
 ciation, may associate themselves together and effect such organiza- 
 tion in the manner provided in this section, and not otherwise. 
 Articles of association shall be prepared in triplicate in the manner 
 hereinafter provided and submitted to the auditor of state for his 
 approval, together with the proposed litei'ature, by-laws, rules and 
 regulations governing such association and the proposed table of 
 mortuary assessment rates under whatever plan of business it may 
 have adopted, and that such rates are not lower than is indicated 
 by the mortality table provided in amended section 3 of the above 
 entitled act, and they shall not be approved by the said auditor if 
 it shall appear that the name selected is the same, or so near the 
 same, as that of any other association or corporation then doing 
 biisiness within this State as to cause confusion in the minds of the 
 people or to interfere with the rights of such existing association or 
 corporation, or that the ob.iects of the a.ssociation are not in accord- 
 ance with the provisions of this act, or of any other law or laws of 
 this State applicable to such associations, or tliat Ihe said articles 
 of association do not conform to the provisions of this act in every 
 y)ai'ticnlar : but in case none of these objections are found to exist.
 
 THE STATE OF INDIANA 211 
 
 the said auditor of state shall endorse on the back of each copy of 
 said articles of association the fact that he has approved them, 
 together with the date of such action, all of which shall be signed 
 by him with his official title : Provided, however, That before the 
 said auditor of state shall approve any such articles of association 
 it shall be shown to him by the sworn statement of one or more of 
 the proposed incorporators that at least three hundred persons have 
 signed, in good faith, applications for beneficiary membership in 
 such proposed association and paid to the proper one of such pro- 
 posed incorporators the amount of one death or mortuary collection, 
 by whatever name it may lie called, and that such money is deposited 
 with some bank or trust company and held for the special jjurpose 
 named. For this examination and approval of the articles of asso- 
 ciation herein mentioned, the auditor of state shall collect a fee of 
 five ($5) dollars. One copy of such articles of association, approved 
 as hereinbefore provided, shall be filed with the secretary of state, 
 whereupon the said secretary of state shall issue his certificate of in- 
 eoi'poration and permanently attach the same by the seal of the State 
 to another copy of the said articles of association, approved as here- 
 inbefore provided, which copy shall be delivered to the incorporators 
 of such association. The third approved copy of such articles of 
 association shall be filed with the auditor of state. The articles of 
 association hereinbefore mentioned shall be substantially in the fol- 
 lowing form : 
 
 First. The preamble shall name the incorporators and give the 
 residence of each and the fact of their citizenship as herein requii'ed, 
 and express their desire to incorporate a fraternal beneficiary asso- 
 ciation in accordance with and under the provisions of this act 
 (designating this act so as to positively identify it). 
 
 Second. Article 1 shall give the name of the association. 
 
 Third. Article 2 shall state the location of the principal office 
 of the association. 
 
 Fourth. Article 3 shall state the ob.jeets of the association and 
 the plans by which these objects are to be carried out, including 
 the extreme limit of the age of persons to whom benefit cei-tificates 
 may be issued, which limit of age shall not (>xceed fifty-five (55)
 
 212 FRATERNAL SOCIETY LAW 
 
 years, and it shall also state the fact that all beneficiary members 
 will be required to pass a medical examination such as is usually 
 required by fraternal beneficiary associations. 
 
 Fifth. Article 4 shall state the name of the persons selected to 
 manage the business or prudential afi:'airs of the association for the 
 first term, for which such persons are to be elected, and the manner 
 of electing their successors, the title of all officers and the names 
 of such officers with their residences, if they have been selected. 
 
 Sixth. Article 5 shall contain a description of the corporate seal 
 adopted by such association, together with an impress of the same. 
 These articles of association shall be signed and acknowledged by 
 each of the incorporators. As amended, Acts 1901, p. 315. R. S. 
 1901, §5050h. 
 
 Existing- Associations, Reincorporation — Manner of. 
 
 Section 9. Any such fraternal beneficiary association that is now 
 doing business in this State as a corporation de .iure or a corporation 
 de facto, by virtue of any law of this State authcu-izing the incorpo- 
 ration of such associations, may reincorporate under the provisions 
 of this act, and receive from the secretary of state a certificate of 
 reincoi'poration, which certificate shall also state the date of the 
 original incorporation. Any such association desiring to reincorpo- 
 rate under this act shall, by its supreme governing body, council, 
 executive committee or other body or committee having power to 
 change its laws, adopt a resolution embodying new articles of asso- 
 ciation prepared to conform to section seven [eight] of this act, 
 which resolution must be copied in triplicate, signed by the execu- 
 tive officer of the body adopting it. or by the chief executive officer 
 of the association ; and its correctness and the fact that it was 
 adopted in accordance with the provisions of this section must be 
 certified to under oath by the secretary or similar officer of such 
 association. The aforesaid triplicate copies of such resolution shall 
 then be submitted to the auditor of state for his approval, the same 
 as if they were original articles of association, as i)rovided in section 
 seven [eight] (159 herein) of this act, and one copy shall be filed 
 Avitli llie said auditor of state and one copy with the secretary of 
 state in the niMuncr ])r()vid(Ml in section seven of this act for the
 
 THE STATE OF INUIANA 213 
 
 incorporation of new associations; and when this is done, the secre- 
 tary of state sliall issue, in the manner provided in section seven of 
 thi saet, his certificat(' of reincorporation; and thereafter such asso- 
 fi:iliiiii shall be deemed to be reincorporated under the provisions 
 or I his .-ict. R. S. 11301, §5050i. 
 
 Fee for incorporation same as ior original incorporation. Opinion At- 
 torney-General Taylor, 1899. 
 
 Rights and Powers. 
 
 Section 10. Every such fraternal beneficiary association, fi'om 
 the time it files a copy of its articles of association for record in 
 the ofSee of the auditor of state and files a copy of the said articles 
 of association with the secretary of state and receives his certifi- 
 cate of incorporation, as provided either in section seven [eight] 
 or in section eight [nine] of this act, shall be deemed and held to 
 be a corporation or body politic in perpetuity, and shall have and 
 possess all the rights, powers and ])rivileges given to corporations 
 by common law ; it may sue and be sued in any court of pi-oper 
 jurisdiction; it may borrow money and sectire the payment of the 
 same by notes and mortgages, bonds or deeds of trust upon its 
 personal or real property; it may rent, lease, purchase, hold, sell 
 and convey such real and personal property as may be necessary 
 and proper for the purpose of erecting Intildings for the use of such 
 association and for other proper objects of such association, or which 
 may be taken for debts dtxe stich association ; and it may in general 
 do all things not prohibited by law that are necessary and proper for 
 the economical and proper conduct of its business. B. S. 1901, 
 § 5050 j. 
 Shall Not Employ Paid Agents. 
 
 Section 11. Such association shall not employ paid agents in 
 soliciting or procuring members, except in the organization or btiild- 
 ing up of stiboi'dinate bodies or granting members inducements to 
 procure new members. R. S. 1901, § .30.50k. 
 
 Right of Member to Change Beneficiary. 
 
 Section 12. No contract between a member and his beneficiary,
 
 214 FRATERNAL SOCIETY LAW 
 
 that the beneficiary, or any other person for him shall pay such 
 member's assessments and dues, or either of them, shall give the 
 beneficiary or other person a vested right in the benefit certificate or 
 in the benefit, or deprive the member of the right to change the 
 name of the beneficiary, or revoke the ertificate, if any, issued by 
 such association : Provided. That such change or revocation to be 
 made by written or printed notice to the association in the manner 
 and form provided for by its by-laws. K. S. 1901. § 5050 1. 
 
 Exemption from Attachment— Exemption from Taxation— Excep- 
 tion. 
 
 Section 13. The money, or other benefit, charity, relief or aid to 
 be paid, provided or rendered by any association authorized to do 
 business under this act shall not be liable to attachment by trustee, 
 garnishee or other process, and shall not be seized, taken, appro- 
 priated or applied by any legal or equitable jirocess or by opera- 
 tion of law to pay any debt or liability of a certificate holder or of 
 any beneficiary named in any certificate or any person who may 
 have any right thereunder. And the buildings and other property 
 used by said association in carrying on its business, and all dvies, 
 assessments and other payments and the accumulations thereof, held 
 and possessed by said association for the payment of death, sick or 
 disability benefits, and the reserve, emergency and other mortuary 
 funds of said association shall be exempt from taxation for State, 
 county and municipal purposes : Provided, That nothing in this act 
 shall be construed to exempt from taxation any real estate owned 
 by any association incorporated or doing business under the pro- 
 visions of this act, except .such as is occupied exclusively by such 
 association in carrying on its business. As amended, Acts 1903, p. 19. 
 
 As to right to exempt property from taxation, see section 1, article 10, Con- 
 stitution of Indiana. Also annotation to case of Hogg v. Mackay, 19 L. R. A. 77. 
 
 Right to attach proceeds of certificate after payment to beneficiary. Reig- 
 hart V. Harris. 51 Pac. Rep. 788. \ 
 
 Also, see Wright v. Wright, 100 Tenn. 313; Burton v. Snyder, 43 Pac. Rep. 
 1004; Lake v. Minnesota, etc., Ass'n, 63 N. W. Rep. 261; Larrabee v. Pal- 
 mer, 70 N. W. Rep. 100; Murdy v. Skyles, 70 N. W. Rep. 714; How v. How, 63 
 N. W. Rep. 627; Clark v. Lynch, 31 N. Y. Supp. 1038; Crumley v. Fuller, 57 
 Pac. 47; Grand Lodge v. Dister, 2 Mo. App. R. 71; Skinner v. Holt, 69 N. W. 
 13
 
 THE STATE OF INDIANA 215 
 
 595; Sulz v. Mutual, etc., Ass'n, 145 N. Y. 563; Nims v. Ford, 159 Mass. 575; 
 Commercial Ass'n v. Newkirk, 16 N. Y. Supp. 177; Brown v. Balfour, 46 
 Minn. 6S; Bull v. Ease, 58 N. Y. Supp. 774; Aniburg v. Manhattan Life, 67 N. 
 Y. Supp. 872. 
 
 Legislative Body May Meet Outside of State. 
 
 Section 14. Any such fraternal beneficiary association organized 
 under the laws of this State may provide for the meetings of its 
 legislative or governing body in any other State, territory or 
 province, wherein such association shall have subordinate lodges or 
 bodies, and all business or corporate acts transacted at such meetings 
 shall be valid in all respects as if such meetings were held in this 
 State ; and where the laws of any such associations provide for the 
 election of its officers by votes to be cast in its subordinate bodies, 
 the votes so cast by its subordinate bodies in any other State, terri- 
 tory or province shall be valid as if cast in this State. R. S. 1901, 
 § 5050n. 
 
 See Bastian v. Modern, etc., 166 111.505; Head Camp v. Woods (Cal.), 81 
 Pac. Rep. 261. 
 
 Application— Proof of Claim — Penalty for Fraud. 
 
 Section 15. Any person, officer, member or examining physician 
 who shall knowingly or willfully make any false or fraudulent state- 
 ment or representation in or with reference t(J any application for 
 membership, or for the purpose of obtaining any money or benefit 
 in any association transacting business under this act, shall be 
 guilty of a misdemeanor, and upon conviction shall be punished by 
 a fine of not less than $100, nor more than .$500, or imprisonment 
 in the county jail for not less than thirty days nor more than one 
 year, or both, in the discretion of the court; and any person who 
 shall willfully make any false statement of any material fact or 
 thing in a sworn statement as to the death or disability of a certifi- 
 cate holder or member of any such association, for the purpose of 
 procuring payment of a benefit named in the certificate of such 
 holder, and any person who shall willfully make any false statement 
 in any verified report or declaration under oath, required or author- 
 ized by this act, shall be guilty of perjury, and shall be proceeded
 
 216 FRATEKKAL HUVIETY LAW 
 
 against and punished as provided by the statutes of this State in 
 rehition to the crime of perjury. R. S. 1901, § 5050o. 
 
 Failure to Make Report, Penalty — Injunction — Readmission — Con- 
 dition Precedent — Violating Injunction, Penalty. 
 
 Section 16. Any such association, whether heretofore or here- 
 after organized under the laws of this State or of any other State, 
 territory or i>rovinee, refusing or neglecting to make the report pro- 
 vided for in this act, shall be excluded from doing business within 
 this State. The auditor of state, within sixty days after such asso- 
 ciation shall exceed its powers or shall conduct its business fraudu- 
 lently, or shall be insolvent, or .shall fail to comply with au.v of 
 the provisions of this ;ict. must give notice thereof in writing to the 
 attorney-general, who shall immediately commence an action against 
 such association to enjoin it from carrying on any business within 
 this State, or if found to be insolvent, for the appointment of a re- 
 ceiver to wind up its affairs. No injunction against any such asso- 
 ciation to enjoin it from transacting business in this State, or order 
 appointing a receiver therefor, shall be granted by any court except 
 on application of the attorney-general at the request of the auditor 
 of state, where the State, or a member, or other party, seeks relief. 
 No association so enjoined shall have authority to continue business 
 until such report shall 1)e made, or overt act or violations of the 
 law complained of shall be coi-rected. nor until the costs of such 
 action shall be paid by it. provided the court shall find that such 
 association was in default as charged and that such association is 
 solvent. Whereupon the auditor of state shall reinstate such asso- 
 ciation and not until then shall such association be again allowed to 
 do business within this State. Any officer, agent, or person acting 
 for any such association ov subordinate body thereof within this 
 State, while such assoeialion shall be so enjoined or prohibited from 
 doing business, imrsuaut to this act. or after received has been ap- 
 pointed, for such association, shall be deemed guilty of a misde- 
 meanor, and on conviction thereof shall be punished by a fine of not 
 less than twenty-five ($25) dollars nor nuire than two hundred 
 ($200) dollars, or by impri.sonment in the county jail for not less 
 than thirty (30) days nor more than one year, or bj^ both such fine
 
 THE STATE OF INDIANA 217 
 
 and imprisonment in the discretion of the court. As amended, Acts 
 1901, p. 312, R. S. 1901, § 5050p. 
 
 Penalty for Doing Business for Unauthorized Associations. 
 
 Section 17. Any person who shall act within this State as an 
 ofScer, agent or otherwise for any association which shall have 
 failed, neglected or refused to comply with, or shall have violated 
 any of the provisions of, this act, or shall have failed or neglected 
 to procure from the auditor of state a proper certificate of authority 
 to transact business as provided for by this act, shall be subjected 
 to the penalty provided in the last preceding section for the mis- 
 demeanor therein specified. R. S. 1901, § 5050q. 
 
 Retaliatory Section. 
 
 Section 18. When any other State, territory or province shall 
 impose any obligation upon any fraternal beneficiary association or- 
 ganized under the laws of this State, or its agents or representatives, 
 or other persons transacting business for it in such other State, ter- 
 ritory or i^roviuce, the like oltligations are hereby imposed on similar 
 fratei'nal beneficiary associations organized under the laws of such 
 other State, territory or province, and their agents or representa- 
 tives doing business in this State. R. S. 1901, § 5050r. 
 
 Associations Exempted from Provisions Hereof. 
 
 Section 19. This act shall not apply to any corporation, society 
 or association carrying on the business of life, health, casualty or 
 accident insurance for profit or gain, but it shall apply only to fra- 
 ternal beneficiary association.s as defined in section one of this act; 
 this act shall not affect or apply to any grand or subordinate lodge 
 of the Ancient Order of Free and Accepted IMasons, Independent 
 Order of Odd Fellows, Improved Order of Red Men, or Knights of 
 Pythias, as they now exist, nor to similar orders or secret societies, 
 nor to any association not working on the lodge system, or which 
 limits its certificate holders to a particular class, or to the employes 
 of a particular town or city, designated firm, business hoxise or cor- 
 poration. R. S. 1901, § 5050s.
 
 218 FRATERNAL SOCIETY LAW 
 
 Lodges and other subordinate bodies of Masons, etc., are author- 
 ized to incorporate as voluntaiy associations, by act approved March 
 9. 1901, which act provides as set forth in the next 19 sections: 
 
 Articles of Association. 
 
 Section 1. That anj' number of persons, not less than three (3), 
 may voluntarily associate themselves bj' written articles of associa- 
 tion signed and acknowledged by each person who may be a member 
 at the time of organization, specifying: 
 
 First. -The corporate name of such association, which shall not 
 be the same or similar to the name of any other association incor- 
 poi-ated in this State. 
 
 Second. The amount of the capital stock of the same, if such 
 association is organized for pecuniary profit, and the number of 
 shares (if any) into which the same shall be divided, with the 
 amount of each share, which sluill not exceed one hundred dollars 
 ($100). 
 
 Third. The object of such association, with the proposed plan 
 of doing business fully set out. 
 
 Fourth. The names and places of residence of each incorporating 
 member. 
 
 Fifth. The principal place of business of such association. 
 
 Sixth. The term of existence of such association, which, if or- 
 ganized for pecuniary profit, shall not exceed fifty (50) years. 
 
 Seventh. A description of the corporate seal ; and 
 
 Eighth. The manner of election or appointment of all directors 
 and officers who are to manage the business and prudential concerns 
 of any such association. 
 
 Ninth. The number of trustees, directors or managers who shall 
 manage the affairs of the association, together with the names of 
 those who shall manage such aft'airs for the fii'.st year. R. S. 1901, 
 § 4583. 
 
 Purposes of Association — Lodges of Masons, Etc. 
 
 Section 2. That such associations ma.v be formed for one only of 
 
 the following purposes:
 
 ' THE STATE OF INDIANA 219 
 
 .Section 7. To org'jitiizi' lodses of othci' bodies ol' Masons. Odd 
 Fellows, Knights of Pxtliias, Ifniforni Rank Kniglits of rytliias, An- 
 cient Order United AVorkmen, BeiHsvolent Order Elks, Knights of 
 Honor and Knights and Ijndies of Honor. Ro.val Arcanum, Conti- 
 nental Fraternal Union, or the National Union, or other secret ritual- 
 istic orders, according to their respective laws; also divisions or 
 associations of temperance or other charitable associations or organ- 
 izations. R. S. 1901, §§ 4584-4589. 
 
 When treated as mutual insurance conipan.y. Opinion Attorney- 
 General Hord. 1884. 
 
 Articles of Incorporation Presented to Secretary of State — Re- 
 cording. 
 
 Section 27. That such incorporating members of such association 
 shall first present their articles of association to the secretary of 
 state of the State of Indiana for filing; and at the time of present- 
 ing said articles (and before presenting the same for filing to the 
 recorder of the county in which the same is organized) they shall 
 also present therewith full written or printed statements of the 
 proposed plan of doing business; and if, upon examination, said 
 secretary of state shall find said articles to be according to law, and 
 its proposed plan of doing business not inconsistent with the existing 
 laws of the State of Indiana, or of the United States, and upon the 
 payment of the fees prescribed by law. he shall issue to sucli corpo- 
 ration a certificate of incorporation, which shall be prima facie 
 evidence of such incorporation. Every such association, after such 
 articles have been so approved by the secretarv of state, shall file 
 a duplicate of its articles in the recorder's office of the county in 
 which the principal place of business of such association is located, 
 and upon the expense of filing and recording being paid such re- 
 corder shall record the same in the miscellaneous book of records 
 in his office, and such record or a certified copy thereof shall be 
 conclusive evidence of the matters and things therein stated. R. S. 
 1901, §4595n. 
 
 Interment associations cannot incorporate under this law unless on lod§e 
 system. Opinion Attorney-General Taylor, January 7, 1901.
 
 220 FRATERNAL SOCIETY LAW 
 
 Powers. 
 
 Section 28. Eveiy .such association, from the time such certificate 
 is issued by the secretary of state and such articles are recorded 
 in the recorder's office, shall be deemed and held to be a corporation, 
 and shall have and possess all the rights, powers and privileges 
 given to corporations by common law. to sue and be sued, to borrow 
 money and secure the jjayment of the same by notes and mortgages, 
 bonds or deeds or trust upon their pei'sonal and real property, and 
 rent, lease, purchase, hold, sell and convey such real and personal 
 property as may be necessary and proper for the purpose of erecting 
 buildings and for other necessary objects of any such corporation. 
 E. S. 1901, § 45950. 
 
 Duties of Auditor of State — Receiver. 
 
 Section 29. That snt-li association, at the time of filing its said 
 articles with the secretary of state, shall likewise file a copy thereof 
 in the office of the auditor of .state of the State of Indiana, and shall 
 also file in the office of the auditor of state, from time to time, 
 written or printed copies of its constitution and all by-laws there- 
 after adopted; and said auditor of state shall have ])ower to examine 
 any such association at an\- time, and if upon any such examination 
 said auditor of state shall find that any such association is doing a 
 business not authorized by law, he shall notify such association to 
 cease doing such unauthorized business, and such association shall 
 at once cease doing such unauthorized business ; and if such asso- 
 ciation shall fail or refuse to cease doing such unauthorized business, 
 or shall be insolvent, then in either such event the auditor of state 
 shall notify the attorney-general of the result of such examination 
 and condition, and the attorney-general shall thereupon be author- 
 ized to institute proceedings for injunction, for a receiver or for a 
 judgment of ouster by proceedings in quo warranto, or for seques- 
 tration of property, or such other legal proceedings as may be neces- 
 sary or proper in the premises. R. S. 1901, § •4595p. 
 
 Capital Stock — Increase or Decrease. 
 
 Section 30. That every such association mav designate the man-
 
 THE STATE OF INDIANA 221 
 
 ner in which its sliar'e's of stock (if any) may be held, sold, con- 
 veyed, assigued or Iransferrod. Any voluntary association here- 
 tofore or hereafter organized iiinlci- tiic laws of the State of Indiana 
 for any of the purposes set out in this act may increase or decrease 
 its capital stock at any annual meeting of the stockholders: Pro- 
 vided, That written or printed notice of such proposed increase or 
 decrease shall be given by the secretary of the association to its 
 stockholders by depositing such notices in the mail at least ten (10) 
 days before such annual meeting, addressed to their last named 
 place of residence : And provided, further, That any such association 
 heretofore or hereafter organized may increase its capital stock at 
 any special meeting of the stockholders by a vote representing a 
 majority of all the outstanding stock of such association ; such spe- 
 cial meeting to be called for that purpose: Provided, Written or 
 printed notice of such proposed change, signed by the secretary 
 of the company, shall be deposited in the mail addressed to each 
 of the stockholders of such association at least ten (10) days before 
 such special meeting, at their last known place of residence. R. S. 
 1901, § 4595q. 
 
 Election of Officers — Books — Evidence. 
 
 Section 31. Every such association shall elect such officers or 
 agents as may be necessary to carry into operation the objects of 
 its organization. It may prescribe and adojit rules and regulations 
 for the direction of its ofScers and members; and such corporation 
 shall keep a fair record of its proceedings and accounts in proper 
 books, and such records, or copies thereof, duly attested by the 
 secretary or clerk under its corporate seal, may be given and read 
 in evidence in any court of this State. R. S. 1901, § 4595r. 
 
 Section 32. Any property, real or personal, may be bequeathed, 
 devised or given to any such corporation by will ; and in such cases, 
 it shall be sufficient if the corporate name be used or the purpose 
 so described as not to admit of a reasonalile doubt for what corpora- 
 tion or purpose the same was intended to Ix' devised or given. R. S. 
 1901, § 4595s.
 
 222 FRATERNAL SOCIETY LAW 
 
 Dissolution — Receiver. 
 
 Section 33. Whenever two-thirds in interest of the members of 
 any such corporation heretofore or hereafter organized, desire to 
 close its concerns, they may apply by petition to the circuit or 
 superior court of the county in which the principal office or place 
 of business of such company is located, setting forth, in substance, 
 the grounds of their application, with the names and amounts of 
 all stockholdei-s, and the names and amount due all creditors; and 
 the court shall thereupon direct that notice for ten (10) days .shall 
 be mailed to the last and usual place of residence of each stock- 
 holder and creditor, and fix a day in such notice for a hearing of 
 such application for dissolution ; and the court, after such notice 
 and a hearing, may decree a dissolution of such corporation and 
 appoint a trustee or receiver or receivers to wind up its affairs, 
 take charge of its estate and effects, to collect debts and property 
 due and belonging to such corporation, with jiower to prosecute and 
 defend suits in its name or otherwise, to appoint agents under such 
 receiver or receivers, and to do all other acts which might be done 
 by such corporation that are necessary fur tln' final settlement of 
 its 'anfinished business. The powers of such receiver or receivers 
 may continue as long as the court deems necessary for said purposes. 
 R. S. 1901, § 4595t. 
 
 Jurisdiction of Court. 
 
 Section 34. The court shall have jurisdiction of such application 
 and of all questions arising in the proceedings thereon, and may 
 make such orders, injunctions and decrees and judgments therein 
 as justice and equity may require R. S. 1!)()1. § 4595u. 
 
 Duty of Receiver. 
 
 Section 35. The receiver shall pay all debts due from the cor- 
 poration, if the funds in their hands are sufficient therefor, and if 
 not, they shall distribute the same ratably among the creditors who 
 prove their debts in a manner directed by any order or decree of 
 the court for that purpose. If there is a balance remaining after 
 the payments of the debts, the receiver shall distribute and pay it
 
 THE STATE OF J X DIANA 223 
 
 to and anioug those who are justly entith'd lliereto as Jiaving been 
 stockholders or members of the corporation, or their legal repre- 
 sentatives. R. S. IflOl. S 459r)v. 
 
 Final Order for Dissolution — Duty of Clerk of Court. 
 
 Section S6. When the biisines.s of such corporation shall have 
 been closed up, then the court may order and decree a final dis- 
 solution of the corporation, and the clerk of tlic court for the county 
 in which the decree or order for dissolnlion is nuide shall forthwith 
 make such return thereof to the secretary of state, giving the name 
 of the corporation dissolved, and the date ujjon which such order 
 or decree was made, and the secretary of state shall make a memo- 
 randum thereof upon the records in his office. R. S. 1901. § 4595w. 
 
 Right to Amend or Repeal. 
 
 Section 37. This act may be repealed or amended at the disci-e- 
 tion of the legislature. R. S. 1901, § 4595x. 
 
 Laws Repealed. 
 
 Section 38. All law.s and parts of laws in conflict with this act 
 are hereby repealed; and the following acts upon the same subject- 
 matter are hereby expressly repealed, to wit : 
 
 The act approved February 20, 1867, published on page 223 of the 
 acts of the General Assembly for that year. 
 
 The act approved December 20, 1872, published on page 135 of the 
 acts of the General Assembly for that year. 
 
 The act approved March 26, 1881, published on page 712 of the 
 acts of the General Assembly for that year. 
 
 The act approved April 16, 1881, published on page 715 of the 
 acts of the General Assembly for that year. 
 
 The act approved April 8, 1885, published on page 145 of the 
 acts of the General Assembly for that year. 
 
 The act approved March 7. 1887, published on page 41 of the 
 acts of the General Assembly for that year. 
 
 The act approved March 6. 1889. published on page 144 of the 
 acts of the General Assembly for that vear.
 
 224 FRATERNAL SOCIETY LAW 
 
 The act approved March 9, IS'Jl, published ou page 37U of the 
 acts of the General Assembly for that year. 
 
 The act approved March 9, 1891, published ou page 385 of the 
 acts of the General Assembly for that year. 
 
 .The act approved March :?. 1893. published ou page 289 of the 
 acts of the General Assembly for that year. 
 
 The act approved March 5, 1895, piiblished on page 99 of the 
 acts of the General Assembly for that year. 
 
 The act approved March 8, 1895, published ou page 168 of the 
 acts of the General Assembly for that year. R. S. 1901, § 4595y. 
 
 Rights of Existing Corporations. 
 
 Section 39. That all corporations organized under either of the 
 laws hereby repealed which would have been legalh' incorporated 
 if said acts had been valid are hereby validated and legalized, are 
 hereby continued in their respective rights, as fixed by the law 
 under which the same was incorijorated, and are hereby authorized 
 to operate under the provisions of this act, or under the provisions 
 of the law pursuant to which any such association is organized: 
 Provided. Tliat the right of the auditor of state to supervise and 
 examine any such association and of the attorn ey-genei-al to insti- 
 tute the proceedings in this act provided for shall be held to apply 
 to all such corporations heretofore, as well as to all such corpora- 
 tions hereafter organized. R. S. 1901, § 4595z. 
 
 When Benefits Exempt from Creditors' Claims. 
 
 Section 40. All benefits, claims or interests on account of certifi- 
 cates of membership, policies or other evidences of interest in any 
 Masonic, Odd Fellow or other benevolent or charitable association, 
 society or incorporation, organized and incorporated under the laws 
 of this State, shall be exempt from all claims of creditors, all .iudg- 
 ments, and all other claims against the holder of such certificate, 
 policy or other evidence of interest. All such benefits, claims or 
 interests, made for the benefit and protection of the wife, child or 
 children, or ileiiendeuts of parties so insiu-od. or members of such 
 societies so organized and incorporated, shall be for the sole use
 
 THE HTATE OF IXDIANA 225 
 
 Jlllil lii'liclit III' lllr |i;il1ii'S llllllicd :is lirlli'H('in ricS Ol- pMVccs ill tlic 
 |iolir\- (II' iM'i-1 ihc.-itc III' inciiilicrslii|i issiii'il liy such society, ass(i- 
 ciation (n- iiicdi-poi-itidii : I'l-ovidcd, S\icli Mssociiitiuii, society or 
 incorporation is oi-iianizcil Tor tlie purjiosc oi' in\it\ial licm^fit. for 
 benevolent or cliaritalile piirposi's, or for the purpose of niiitiial 
 life insurance: And provided. Sucli lienetits, claims or interests 
 arc made in favor of the wife, child or children, or other dependents 
 of the holder of such certificate, policy or evidence of interest: And, 
 IH-ovidcd further. That nothin'j- in this act shall be constnied to 
 affect the rights of creditors in any policy of life insurance, where 
 the insured shall have died previous to the taking effect of this act. 
 R. 8. VM)1. S r)04S. 
 
 Ttiis section only apiilies to corporations organized nnrter the laws of this 
 State. Presb.vterian Fund vs. Allen, 106 Ind. 593. 
 
 Venue of Actions — Service of Process. 
 
 Section 41. All suits on account of benefits, claims or interest 
 again.st societies, associations or incorporations named in the pre- 
 ceding sections, shall be brought, either in the county where the 
 jirincipal office of such societ.v, association or incorporation is lo- 
 cated, lU' in the count.y in which is located the local or subordinate 
 branch or lodge of such societ.v, association or incorporation, of 
 which the person to whom such certificate of membership, policy 
 or other evidence of interest was issued was a member at the time 
 of his death or when tln^ cause of action accrued. And the service 
 of a summons on the presiding officer of said local or subordinate 
 branch or lod,ge of such society, association or incorporation in 
 which the membershi]) is or was held at the time of tlie in,iurv. 
 disability or death occurs, shall be sufficient service on said societ.v, 
 association or incorporation to give the court .iurisdiction in such 
 action. 
 
 As amended. Acts 1S99. p. 117. R. S. 1901. 5 5049. 
 
 Right to Change Beneficiary. 
 
 Section 42. All certificates of membershi]), policies or other evi- 
 dences of interest in an.v ilasonie. Odd Fellow or other benevolent or 
 15
 
 226 FRATERNAL SOCIETY LAW 
 
 charitable association, society or incorporation named in section 1 of 
 this act. shall be regarded as a contract between the person whose 
 life is insured by such certificate of- membership, policy or other 
 evidence of interest, and the association, society or incorporation of 
 which he is a member; and it shall be lawful for such association, 
 society or incorporation to change the name or names of the payee 
 or payees, beneficiary or beneficiaries named in such certificate of 
 membership, policy or otlier evidence of interest, on such terms 
 and conditions as the parties to the contract may agree to. R. S. 
 1901, S 5050. 
 
 This section only applies to corporations organized imder tlie laws of this 
 State. Presbyterian Fnnd vs. Allen, 11)6 Ind. .593. 
 
 While the next two sections do not apply to Fraternal Benefit 
 Societies, nevertheless, the auditor of state, has for some years re- 
 quired such societies, as a condition upon which they have been 
 licensed, to agree to l)e governed by these provisions. 
 
 Removal of Suits to United States Court — Commencement of Suit 
 in United States Court — Forfeiture. 
 
 Every foreign corporation miw doing or transacting, or that shall 
 hereafter do or transact, any business in this State, m- ac(|uire 
 any right, title, interest in. or lien upon real estate in this State, 
 that shall transfer or cause to lie transferred from any court of 
 this State to any court of the United States, save by regular course 
 of appeal, after trial in the State courts, and action commenced 
 1)\- 111- against such corporation in any court of this State by or 
 against any citizen or resident tliei'eof; or shall commence in any 
 court of the I'nited States in this State, or any contract made in 
 this State or liability accrued therein, any suit oi- action against 
 any citizen or resident nf the State of IndiauM — shall tln^reby forfeit 
 all ri^ilil anil niithnrily to i|i> or traiisjirl business in this Stat(» oi- 
 hold ri'al jiroperty or liens tliereon : and all contracts between such 
 corporations and citizens or residents of this State, made aftei- the 
 passage of act. sluill be ri'iiiln'rii void as in favoi- of surh rnrpora- 
 tion. but I'liforcrabli' by such rili/i'ii Ml bis I'lrct inn. 1\. S. l!l()l. 
 S .3460.
 
 THE STATE OF J N 1)1 AN A '221 
 
 Similar laws to this section have been held valid. Morse vs. Home. etc.. 
 Co., oO Wis. 496; State vs. Doyle, 40 Wis. 715. Held unconstitutional and 
 void on appeal to U. S. supreme court. Home, etc., Co. vs. Morse, 87 U. S. 
 445; Doyle vs. Continental, etc., Co., 94 U. S. 535. An injunction to restrain 
 the revocation of license because of removal of a cause to the United States 
 court cannot be sustained. Doyle vs. Continental, etc., Co., 94 U. S. 535. On 
 violation of this act the revocation of license is imperative. State vs. Doyle, 
 40 Wis, 220. Agent cannot be proceeded against for rei)resenling comiiany 
 which has not agreed to ijrovision against removal. Baron vs. Burnside, 121 
 U. S. 186. 
 
 Conditions Precedent. 
 
 The provisions of this act are licreliy iiiach' comlil ions upon wliicli 
 siieh corporations may be authorized to do busini'ss in thi.s State 
 or hokl titles to or liens on real estate therein. R. S. 1901, § 3461. 
 
 Waiver of Proofs of Loss. 
 
 The denial of lialiility by the iiistirer within the time fixed for 
 filing proofs of loss is a waiver of the instir^r's riiiht to such proof's. 
 
 Ohio Farmers' Insurance Co. vs. Vogel, November, 1905, 106 Ind. 
 239. 
 
 Waiver of Forfeiture. 
 
 Retention of the premiums on a tire iitsiiraiiee policy, after 
 knowledge of the breach of a emidition iiivitig a right of forfeiture, 
 is held to be an election to disregard such breach, and to continue 
 the poliej. 
 
 Ohio Farmers' Insurance Co. vs. Vogel, November, 1905, 166 Ind. 
 239. 
 
 Death From Exempted Cause — General Contract and Limited 
 Liability. 
 
 Where a certificate on its face insures against death generally, 
 but the member executed an agreement at the time of receiving the 
 certificate, exempting the society from liability for death for a certain 
 cattse. such certificate and agreement executed li\- the member con-
 
 228 FRATERNAL SOCIETr LAW 
 
 stitntes the contract, and deatli from sneli exempted cause, is not 
 covered by the contract. 
 
 Knights and Ladies of Columbia vs. Slioaf. November, 1905, IGG Ind. 
 367. 
 
 Special Agreements Limiting Liability. 
 
 An agreement which is part of a life insurance contract, exempt- 
 ing the society from liability from death arising from jjregnaney, 
 exempts it from liability from death caused by puerperal septicemia. 
 
 Knigiits and Ladies of Columbia vs. Shoaf. November, 1905, 166 Ind. 
 367. 
 
 Doing Business Without License — Validity of Contracts. 
 
 A legislature of a State is powerless to ]irohil)it a citizen from 
 executing a contract of insurance outside of such State on i)roperty 
 inside thereof. This doctrine is announced in an important fire in- 
 surance case, where the company was not authorized to do business 
 under the laws of the State, and will be interesting to societies that 
 may make contracts with citizens of States where they ai'e not 
 licensed. 
 
 Swing vs. Hill, May, 1905, 165 Ind. 411. 
 
 Waiver of Proofs of Loss. 
 
 A condition in an accident policy, requiring proofs of injury to 
 be made within 90 days of the happening of the accident, being en- 
 tirely for the benefit of the insurer, may be waived by it, and very 
 slight circumstances are suflficient evidence of the intention of the 
 insurer not to take advantage of the breach, or to insist njion a for- 
 feiture. 
 
 National Masonic Accident Ass'n vs. McBride. March, 1904. 162 Ind. 
 379. 11
 
 THE STATE OF INDIANA 229 
 
 Prompt Payment of Premiums. 
 
 Where :i coiiti'iiet jji'ovidi'd lli.il I'Miliiri' Ui |i;iy the pi'einiuiii on a 
 day certain should work forfeiturr of the coiitraet, an allegation in 
 the complaint filed in an action on a (Mudi'Met. that the policy was not 
 delivered, and did not take effect until live clays after its date, is 
 not sufKcient to sliow a ehaiiuc in the conti-ael as to the tiuie of 
 the i)ayment of premiums, and avoid a forfeiture of the ijolicy for 
 failure to pay the premium at the time stipidated therein. 
 
 Tibbits vs. Mutual Benetit Life Ins. Co., .January, 190", 159 Ind. 671. 
 
 Service of Process Upon Local Lodge Officers. 
 
 In an action against a foreign sociely (ui a benefit certificate, it 
 was held that service of process on the chief officers of the local 
 lodge was sufficient, where such society had failed to comply with 
 the statute by filing with the auilitor of the State its consent that 
 service of process might be made upon such officer. 
 
 Modern Woodmen of America vs. Noyes, May. 1902. 15S Ind. .503. 
 
 General Promise to Pay — Defenses Need Not Be Negatived. 
 
 Where in a certificate a promise to pay is general, it is not neces- 
 sary in a suit upon the certificate that the complaint should negative 
 a provision of non-liability in the nature of an excejition, since that 
 is a matter of defense. 
 
 Modern Woodmen of Ameiics vs. Noyes, May, 1902. 1.5S Ind. 503. 
 
 Are Members Debtors to the Society — Levying Assessments Upon 
 Them. 
 
 The assessments against menibei-s of a society for the lienefit of a 
 beiiefici;iry of a deceased member cannot be enforced by suit, where 
 the only penalty provided in the ccuitract for non-payment was a 
 ftu'feitnre of the defaulting member's certiticate and of all rights 
 thereunder. The facts in this case, in brief, were: That the appel- 
 lant for herself and others began ;iii miction against the trustees
 
 230 FRATERNAL SOCIETY LAW 
 
 of the .Mfi.siinic .Alutiial Heiielit Society of tiie State of Indiana. 
 Avhereiii the appellant sought to have the appellees ordered to levy 
 and collect assessments trom members. The trustees of the society, 
 M'ere acting as such under an order of court, and the appellants 
 sought to have a collection made fi'om the members liv assessments 
 of a s)im sufficient to pay the death losses remaining unpaid. The pe- 
 tition was demurred to, and the denuirrer sustained. The opinion 
 is lengthy, and discusses many authorities adhering to the general 
 doctrine, that the levy of assessments as a general rule does not 
 serve to make the members of a fraternal society debtors to the 
 society so as to authorize the latter to enforce demand thereof by 
 suit. Cases cited as sup])orting tln' coiicliisinn of the court are the 
 following. 
 
 Lerman vs. Clark. 174 111. 279; 51 N. E. 222; 43 L. R. A. 648: 
 
 Clark vs. Scliromeyer. 23 Ind. App. 565; 
 
 In Re Protection Life lus. Co., 9 Bis. ISS; 
 
 2 Bacon on Benefit Societies. See. 357. 
 
 Niblack on Mut. Benefit Societies, 276: 
 
 State vs. Merchants, etc.. Society, 72 Mo. 146; 
 
 Commonwealth vs. Wetherbee, 105 Mass. 149; 
 
 Rood vs. Railway, etc., Assn., 31 Fed. 62. 
 
 The eases opposing, or seeming to oppose the conclusions reached 
 by this court, are considered and distinguished. 
 
 Gibson vs. Megrew, March. 1900, 154 Ind. 273. 
 
 Members Cannot Sue to Prevent Issuance of Special Contracts by 
 the Society. 
 
 Wiiere an insurance company is regularly organized and lawfully 
 doing i)usiness, a court of general jui'isdiction has no ])ower upon 
 the ap])lica1ion of a member to enjoin the issuance of sjiecial con- 
 tracts of insurance, since the statute provides that a court shall 
 have no jinwer to interfere with the business of such company, ex- 
 ce])t upon Ihc application of the Attorney General. 
 
 Lowery vs. State Life Ins. Co., .luly. 1S99. 153 Ind. 100.
 
 THE KTATE OF JXDfANA 231 
 
 Members May Sue to Prevent Society Paying Invalid Claims. 
 
 A policy hdldiT in ;j iiiiitii:il life iiisui'Miici' society iii;iy iii.'i iiilaiii 
 M suit to ciijoiii the society IVom pnyiiiL: .-in iii\;iliil chiiiii. wlici'c it 
 is shown that the society' has ;iccuiiuiiatc(l and is acciuinUat iiiji'. 
 from the assessments collected from its members, a fund for the 
 henetit of all inembers, from which fund the contracts are paid at 
 the time of the death of members, and from which fund dividends 
 are distributed to members, and added to their certificates. 
 
 Carmien vs. Cornell May. 1897. 14.S Ind. S3. 
 
 Suit by Beneficiary Against Third Person to Whom the Benefit Was 
 Paid. 
 
 An action cannot be maintained b_\- a beneticiary against a third 
 jierson to whom the amount ilue was paid, foi' the recovery of the 
 amount paid, where it is not shown that the defendant assumed to 
 act for the plaintiff in receiving the money, but collected same 
 from the company upon a claim of right luider an alleged assign- 
 ment of the insurance contract. 
 
 Schultz vs. Boyd. February. 1899, 152 Inci. 166. 
 
 Physician Not Privileged Witness. 
 
 Where the assured agreed in his application for insurance that 
 his physician might testify, his adininistrator cannot object to' the 
 competency of such physician as a witnes.s. 
 
 Met. Life Ins. Co. vs. WlUis. Nov., 1905. 37 Inci. App. 48. 
 
 Warranty as to Good Health. 
 
 For an interesting case discussing warranty as to good health 
 and previous state of health, and to knowledge of agent of the 
 falsity of statements contained in an application for insurance, see 
 
 Met. Lite Insurance Co. vs. Willis, November. 1905, 37 Ind. App. 48.
 
 232 FRATERNAL SOCIETY LAW 
 
 Vested Interests. 
 
 The beneficiary lias only a contingent interest in the lienefit cer- 
 tificate prior to the member's death. 
 
 Grand Lodge A. O. U. W. vs. Hall, November, 1905. 37 Ind. App. 371. 
 
 Admissions of Members. 
 
 As a general rule admissions of a member are not admissible 
 against the beneficiary, and this rule applies to benefit societies as 
 well as to ordinary life insurance companies. 
 
 Grand Lodge A. O. U. W. vs. Hall. November, 1905. 37 Ind. App. 371. 
 
 Averments of Performance Requisite in Pleading. 
 
 To authorize a recovery by a beneficiary named in a certificate. 
 it must be shown by the complaint that the member performed tin- 
 requirements of the constitution and by-laws, and an averment that 
 the beneficiary performed all the conditions and requirements is 
 insufficient. 
 
 Grand Lodge A. 0. U. W. vs. Hall, November. 1905. 37 Ind. App. 371. 
 
 Suicide — Presumptions — Facts for Jury. 
 
 Suicide cainiot he ])resumed from death in an unknown inaniun'. 
 where it is ])ossible that such death may be due to accident, negli- 
 gence, or mistake ; the burden of proving suicide being upon the 
 one alleging it. Where it was shown that the insured wa.s' found 
 dead with a bottle partlx' filled with rarbolic acid in his vest pocket, 
 a large)' bottle of sanu' tliluted with water near the body: that he 
 had ])i'ocure(l such acid for the purj)0se of treating his face, wishinu 
 to cnri' |)ini|ilcs. and evidence of the presence of such acid in the 
 mouth and stonia<'li. l)eiug in cOnfiict. and it I'lirtliei' being shown 
 that the mrinlier had previously sufi'ered a sun-stroke, and that the 
 day of the death was an uiuisually warm one, the suicide was a (pies- 
 tion of I'aet to lie passed upon liy the jury.
 
 THE STATE OF INDIANA 283 
 
 Equitaljle Life Ins, Co. of Iowa vs. Herbert. February. 1906, 37 Ind. 
 App. 373. 
 
 Amendment of Laws After Cause for Benefits Accrue. 
 
 'I'lic MiiU'iuliiU'iit o\' I III' hiw's (iT ;i scicicly mI'Iit the iiiciiilic'f has 
 riH'eivi'd iiijiii-ics. whicli exccpl I'ur the MJiiendiiieiil woiihl entitle 
 the iiieinber to benehls. (h)es iml relie\e the society t'roni payment 
 of such benefits. 
 
 Brotherhood of Painters, ote. vs. Moore. November. Ifl05. 3G Ind. App. 
 580. 
 
 Right to Forfeiture Waived. 
 
 AViuM'e the eonstitiitidii nl' n. society pi-ovides sipitinst liat)ility 
 where ;i member eiiyaii''s in hazardotis occupations, and where the 
 meiuiier has notitied tlie society that he is engaged in such occupa- 
 tion, and lie continues to pay his dues, which are accepted by the 
 society, it was held that thi' society had elected to i-etain the mem- 
 . ber. and to disre<;;ii'd the pri)\-isiiin. 
 
 Brotherhood of Painters, etr. vs. Moore, November, 190.5. 36 Ind. App, 
 580. 
 
 Agents — Imputing Knowledge. 
 
 The local officers arc held to be the agents of the general lodge to 
 do whatever the constitution of the latter require of them, and that 
 their knowledge gained while in the performance of that d\ity is to 
 be imputed to the general lodge. 
 
 Brotherhood of Painters, etc. vs. Moore. November-. 1905, 36 Ind. App. 
 580. 
 
 No Vested Interests in Certificate. 
 
 A beneficiarv named in a certificate, issued to a member by the 
 Supreme Lodge Knights of Honor, does not acquire by reason of 
 that fact alone a vested interest in such certificate, since the assured
 
 234 FRATERNAL SOCIETY LAW 
 
 may change the beneficiary at will, in accordance with the rules of 
 the society. 
 
 Carter vs. Carter, November. 1904, 35 Ind. App. 73. 
 
 Beneficiary— Change of Through Fraud. 
 
 The by-laws provided that a member might receive a new certifi- 
 cate if the original were "lost or beyond his control," and where 
 it was shown b.y.the member's affidavit that his certificate was lost, 
 or beyond his control, and he executed an ante-nuptial contract, 
 makinu- his intended wife his beneficiary, and subsequent to his mar- 
 riage he procured his certificate, to be issued payable to her and where 
 STich member afterwards liy a false affidavit ]n-ocured a new certifi- 
 cate payable to his brother, such wife named under the circum- 
 stances was held to be the original owner of the insurance. This 
 was a case where the society paid the fund into court under a bill of 
 inter])leader. 
 
 Carter vf. Carter, November. 1904, 35 Ind. App. 73. 
 
 Death Before Contract Became Binding. 
 
 The application for insurance was made on Ajiril ."ith. and pro- 
 vided that no contract should be eft'ective until the policy was issued 
 and delivered while the member was in good health. The applicant 
 died on April 8th. and the company, in ignorance of the death, 
 mailed the policy on A])ril Dth. Held that there was no liability 
 under the policy. 
 
 Reserve Loan Life Ins. Co. vs. Hockett, March. 1905, 35 Ind. App. S9. 
 
 Agency — Waiver and Estoppel. 
 
 A local oflicer, who collects the tlues from the members of a local 
 lodge, and transmits them to the grand lodge, is to be deemed the 
 agent of the <irand lodtie, nevertheless the latter is not estopped 
 from declarinj;' a foi'feitui'e from subseqiient defaults, since the 
 agent cannot bind his princi|)al by any unaiithorized act.
 
 THE STATE OF INDIANA 235 
 
 Supreme Lodge Knights oi Honor vs. Jones, January, 1904, 35 Ind. 
 App. 121. 
 
 Forfeiture — Unreasonable By-laws. 
 
 The court held that the fdlldwiiii;' li\'-l;i\v was not so oppressive 
 and unreasonable as to be iUeual: "When a member owes a .sum 
 eipud lo three mouths" dues, he is uol in u'ood standing, and is 
 thereby suspended from all benelits in the interim, and will not be 
 again entitled to benefits until three numths after all his arrearages 
 ai'e paid in full. " 
 
 United Brottierliood of Carpenters and Joiners of America vs. Dinlvle, 
 January. 1904, 32 Ind. App. 273. 
 
 Prompt Payment of Assessments. 
 
 The insurance in mutual benefit or fraternal societies ordinaril.y 
 lasts only from the maturity of one assessment to the maturity of 
 another, and therefore, stipulations to insnre prompt payment by 
 the members are of the substance and essence of snch contracts. 
 The obligations of fraternal societies and their individual members 
 are reciprocal, and both must comply with the laws of the society. 
 
 Supreme Lodge Knights of Honor vs. Jones, January, 1904, 35 Ind. 
 App. 121. 
 
 Payment of Assessment After Forfeited Member's Death. 
 
 Where the laws provide that a membei- failing to pay an assess- 
 ment shall stand suspended, and shall not, therefore, be entitled to 
 the benefit, unless reinstated, and where a member failed to pay an 
 assessment due and payable at maturity, he is not in good stand- 
 ing on IMarch 10th, and payment of the assessment after death of 
 the member, by the beneficiary, will not revive a forfeited contract. 
 
 Supreme Lodge Knights of Honor vs. Jones, January, 1904. 35 Ind. 
 App. 121.
 
 236 FRATERNAL SOCIETY LAW 
 
 Forfeiture — Payment of Delinquent Amount. 
 
 Where it was sluiwu that a meiiiber of the IvHight.s of Honor 
 failed to pay an assessment at the time fixed by the by-laws, that 
 after the member's deatli siieh asses.smeiit was paid to the society's 
 local collector, who returned same upon learning of such member's 
 death, a verdict and judgment against the society in favor of the 
 member's beneficiary cannot be sustained. 
 
 Supreme Lodge Knights of Honor vs. Jones, January, 1904, 35 Ind. 
 App. 121. 
 
 No Vested Interests in Beneficiary — Change of Beneficiary. 
 
 A beneficiary in a fraternal society acquires no vested interest 
 in the certificate until tlie death of the member, and such member 
 may. without the benefieiar> 's eonseut. make a new a|i|)iiintmeut of 
 l)enefieiary. unless prevented by the organie biw or rules and regu- 
 lations of the society. 
 
 Bunyan vs. Reed. May, 1904. 34 Ind. App. 295. 
 
 No Vested Interests — Failure to Name New Bepeficiary. 
 
 A menilier of the National I'nion obtained a .$5.0011.00 certificate, 
 wliieli lu' had made pa>-able to a lu'otlier to secure to such brother 
 for money due him from the member, the sum of $3,000.00, and to 
 each of the member's two .si.sters the sum of .$1,000.00. and where 
 such brother i)redeeea.sed the member, and the by-laws of the soci- 
 ety pi-ovided that n|iiin the death of a beneficiary, the lienelit should 
 he |)aid to the surviving l)eneHeiai-y or lieneficiaries. each sharing 
 pro I'ata. unless otherwise |)i'ovided in the lienefit certificate, it was 
 lield thai tiu' two sisters named were entithnl to tiu' benefit, antl that 
 sneh (h'ceased bi'(itliei-'s adniinistratcu' was not entitled to any |iart 
 there()f. 
 
 Bunyan vs. Reed. May. 1904. 34 Ind. App. 295. 
 
 Laws Are Part of Member's Contract. 
 
 .\ nienibel' 111' a IV.'ilerual siieiely lal\es a cerlilicate subject to tile
 
 TllK t^TATK OF IMllA.\A 237 
 
 reason<il)le rules, laws, and reg'ulatinns (if llic society, and the saiiir 
 form a part of his contract of insurance. 
 
 Buiiyan vs. Reed, May. 1904, 34 rnd. App. 295. 
 
 Habits of Members — Breach of Promissory Warranty — Excessive 
 Indulgence in Liquor. 
 
 Where the insui-ed warranted lliat lie would not iisi' inlo.xicatinic 
 liquors to excess, nor practice any i)eriucious lial)it that tended to 
 shorten life, and jiayiuent of the policy was contestetl on the ground 
 that the insured drank to excess, it was error to instruct the jury: 
 that, if they found from tlic natin-e of the miuiilier's employment, 
 that his physical condition was occasioned thereby, that he became 
 weak and exhausted, and was compelled to and did resort to .stimu- 
 lants, as he believed, for his own protection, and to enable him to 
 continue his hd^ors. and in so doing- occasionally draidc li(iiR)rs even 
 to the extent of being luuler the influence of such, then the indul- 
 gence could not be termed excessive, and could not he urged as a 
 defense, unless you further find that such indulgences were ex- 
 cessive, and that it tended to or did shorten his life; since the in- 
 struction left it with the memhei' to ih'termine for himself what 
 would be an excessive use of liquors. 
 
 Union Life Ins. Co. vs. Jameson, April, 1903, 31 Ind. App. 28. 
 
 Necessary Averments in Petition. 
 
 To entitle the heneficiary to recover the anunuit stated in a cer- 
 tificate, it is essential that the complaint show by ex])ress averment 
 full performance of all coiulitions imjiosed by the contract of in- 
 surance and the laws of the society, or by facts showing such con- 
 ditions to have been waived, and an allegation that a member was, 
 at the time of his death, in good standing and entitled to all the 
 rights and jirivileges of membership does not supply the necessary 
 averment of jierformance of all conditions, since it is only a state- 
 ment of a conclusion. 
 
 Grand Lodge A. 0. U. W. vs. Hall, May, 1903, 31 Ind. App. 107.
 
 238 FRATERNAL SOCIETY LAW 
 
 Resort to Civil Courts. 
 
 A member is uot required to exhaust his remedies within the 
 society before resorting to the courts, unless the by-laws of the 
 society make it obligatory upon him to do so. 
 
 Supreme Lodge Knights of Pythias vs. Andrews, June. 1903. 31 Ind. 
 App. 422. 
 
 Diiferent Classes in Same Society — Right of Members to Transfer 
 From One Class to Another. 
 
 For the facts in a case where it was cliarf;ed that a member had 
 been arbitrarily refused transfer upon application to a class in a 
 society of which he was already a member, to which class he claimed 
 he was entitled to be transferred, see 
 
 Supreme Lodge Knights of Pythias vs. Andrews. June. 1903, 31 Ind. 
 App. 422. 
 
 Forfeitures — Duty of Court to Declare. 
 
 Forfeitures are not favored by law, but nevertheless it is the 
 duty of courts to declare a forfeiture upon facts which will admit 
 of no other conclusion. For the facts in evidence in an interesting 
 forfeiture ease, see 
 
 Grand Lodge A. O. U. W. vs Marshall. October, 1903, 31 Ind. App. 
 534. 
 
 Forfeiture of Member — Self-executing Provisions. 
 
 Where the laws of a society provide that a faihire by the member 
 to pay an assessment within a stipulated time operates as a for- 
 feiture of membership, no affirmative action on the part of the 
 society to suspend delinquent members is required. 
 
 Grand Lodge A. 0. U. W. vs. Marshall, October, 1903, 31 Ind. App. 
 534.
 
 THE STATE OF INDIANA 239 
 
 Agent's Knowledge Imputed to Principal. 
 
 Knowledge possessed by iiii agent, acquired by him in perform- 
 ance of his duties as as'ciil is to he imjiuted to liis principal. 
 
 Supreme Court of Honor vs. Sullivan. January, 1901. 2i; Ind. App. GO. 
 
 Agency — Waiver by Agent — Imputed Knowledge. 
 
 A court in coustruiug a provision of the laws of a society which 
 read, "it is expressly understood that the district recorder is an 
 agent of tlie district court, aiul not an agent of the supreme co\u't, 
 to do anything, except such acts as are specifically authorized in the 
 fundamental laws ; ' ' Held, that where in such a case the recorder 
 of the local lodge had authority to collect from the members, assess- 
 ments when due, giving receipts, and forwarding the payments to 
 the supreme body, that such recorder was the agent of the supreme 
 body as between it and the members in doing the duties imposed 
 by the latter, and that he had autluu-ity to waive the forfeiture of 
 a certificate by the acceptance of dues and assessments with knowl- 
 edge of the forfeiture. The case in point was one where the mem- 
 ber had engaged in a prohibited occupation, and knowledge of that 
 fact had come to the district recorder, and the court iiu]nited such 
 knowledge to the society. 
 
 Supreme Court of Honor vs. Sullivan. January. 1901. I'ti Ind. App, 60. 
 
 Privileged Communications — Physician and Patient. 
 
 Statements made by a member's physician in his presence as to 
 his condition, and accpiiesced in by him may be proven as admis- 
 sions by him. A conversation between a physician and his patient 
 in the presence of a third person is not a privileged communication 
 between patient and physician, and such third person may testify 
 as to what was said, if it is otherwise admissible. 
 
 Mason's Fund Life Insurance Assn. vs. Brocknian. January. 1901. 
 26 Ind. App. 182.
 
 240 FRATERNAL SOCIETY LAW 
 
 Suicide — Death From Intemperance. 
 
 For an interesting case discnssing testimony under the defense 
 of death by suicide, and also death resulting from intemperance, 
 and the contract provisions bearing upon such defense, see the 
 following: 
 
 Supreme Lodge Knights of Pythias vs. Foster, March 7th. 1901, 26 
 Ind. App. 333. 
 
 Sick Benefits — Total Disability, 
 
 A member wlm during the time for \\iiich he claimed sick in- 
 denniit.A". was mi account of siclvuess wholly disabled ;nid prevented 
 from participating in all kinds of business, does not forfeit his 
 right to indemnity by leaving his room under the instructions of 
 a physician for the benefit of his health. 
 
 Cohniibian Relief Fund Assn. vs. Gross, April. 1900, 25 Ind. App. 215. 
 
 Forfeiture^ — Waiver and Estoppel — Members Engaging in Prohib- 
 ited Occupation, 
 
 AVhere the local olflcers received the dues and assessments of a 
 member after he had engaged in the liquor traffic, with the knowl- 
 edge of such fact and after the society had received his last pay- 
 ment, with the knowledge of the further fact that the meiuber died 
 while so engaged in the licpior traffic, the society will be estopped 
 from asserting a forfeiture of the certificate under the law jn-oliibit- 
 ing members from engaging in the licpior business. 
 
 Supreme Tent Knights of the Maccabees vs. Volkert, November. 1900, 
 25 Ind. App. 627. 
 
 Conflict Between Terms of Certificate and By-laws. 
 
 Where there are contlicts between the terms of a certificate and 
 by-law provisions, the court will ado]it that provision which will 
 give the greatei- rigid to the member and his beneficiary.
 
 THE HTATK Ob' J X DIANA 241 
 
 Supreme Tent Knights ol' the IVliii'caljecs vs. VolUert. November. 1900, 
 25 Intl. Apii. (i27. 
 
 Agency of Local Officers. 
 
 IjocjiI officers wlm i-ollcct .-iiid ti-.-iiismit iiicnilirr's pa yiiiciits are to 
 he (leoiied agents of the su|irriHr liody. mil wil hslaiiiliiii;- jjrovisioiis 
 of the laws to the contrary. 
 
 Supreme Tent Knights of the Maccabees vs. Volkert. Novemljer. 1900, 
 2.5 Ind. App. (527. 
 
 Suicide — Presumptions in Favor of. 
 
 In a suit u|ion a eertitieate exempting- the society from liability 
 for death liy snieide, the evidence showed that the member and bis 
 wife lived together in a, liouse bi;ilt on a lot owned by the wife; 
 that the wife brought a suit for divorce, charging her Imsband with 
 drunkeinies.s and cruel treatment, and i)rocured a restraining order 
 prohibiting liim from returning to his home ; that the member dis- 
 appeared a few daj's later. His hat was found on the banks of a 
 stream at an unfrequented place, and tracks made by some person 
 going into the stream were also found, and no tracks were found 
 where the member had come out of the water ; the body of the 
 member Avas found with no marks u])on it. and no evidence of 
 violence, it wa.s held that the evidence excluded, with reasonable 
 certaint.v an.v hypothesis of death by aii.v other cause than by 
 suicide. 
 
 Sovereign Camp Woodmen of the World vs. Haller. Feb. 1900. 24 Ind. 
 App. 108. 
 
 Agency of Collecting Officer. 
 
 A local officer recpiired to collect dues from the members, and to 
 transmit them to the supreme body is the agent of the latter in doing 
 whatever the laws require him to do, as between the members and 
 the societ>'. 
 
 Supreme Tribe of Ben Hur vs. Hall, March, 1900, 24 Ind. App. 316. 
 16
 
 24i^ FRATERNAL SOCIETY LAW 
 
 Forfeiture — Waiver of by Agent. 
 
 Forfeiture of a certificate on account of the inni-payment of dues 
 may be waived by the officers charged with the duty of collecting- 
 the dues, by the officer demanding and receiving dues after the 
 death of a forfeited member, witli knowledge of his forfeiture and 
 death. 
 
 Supreme Tribe of Ben Hur vs. Hall, March, 1900, 24 Ind. App. 316. 
 
 Change of Beneficiary. 
 
 If the holder of a certificate does all in his power to effect a 
 change in beneficiary, in accordance with the by-laws of the soeiet.y, 
 such change will be effected, although such by-laws are not strictly 
 comi)lied with. 
 
 Isgrigg vs. Schooley, 125 Ind. 94. 
 
 No Vested Interests in Beneficiary. 
 
 Persons named as beneficiaries in certificates have no vested rights 
 therein until the death of the member holding the certificate. 
 
 Masonic Society v. Burkhart, 110 Ind. 1S9; Milner v. Bowman. 119 
 
 Ind. 44S. 
 Also, see Wright v. Wright, inii Tenn. 313. 
 
 Change of Beneficiary — Assignment of Certificate. 
 
 When there is no prescribed mode for changing the beneficiaries 
 in a certificate, an assignment of the certificate will have the effect 
 of making such change. 
 
 .Milner v. Bowman, 119 Ind. 44S. 
 
 Agency — Waiver of Grounds of Forfeiture by. 
 
 Where the agent of a company is aulhoi-izcd to solicit ajjplica- 
 tions and collect premiums, and eontinncs to collect premiums from 
 the insiifed, with the '■ i\\-ledL!'o that ho was using into icating
 
 THE STATE OF INDIANA 243 
 
 liquors to excess in violjition of llic lo-iiis nf tlif pnlicy, such action 
 amounted to n waiver ot a riylil to ilcelare a iortViture, although 
 sucli I\nowl('(l^(> of the as'ent was not communicated to the company. 
 
 Northwestern Masonic Aid Association vs. Bodnrtlia. May. 1S99, 23 
 Ind. App. 121. 
 
 I 
 
 Promissory Warranty. 
 
 An ai)i)lication for insurance containing questions and answers 
 in the Medical Examiner's report and an agreement reciting tliat 
 the statements and answers in the application were to be madi; 
 a part of the policy and form part of the insurance contract, and 
 which contained an agreement that the insured would abstain from 
 the excessive use of intoxicating liquors was held to be a promis- 
 sory warranty and not the statement of an expectation. 
 
 Nortliwestern Masonic Aid Association vs. Bodurtha, May, 1899, 23 
 Ind. App. 121. 
 
 A Promissory Warranty Requires Cessation From a Previous 
 Practice. 
 
 The fact that an insurance company knew that the assured 
 was in the habit of drinking intoxicating li(|U(irs to excess prior to 
 the issuance of the policy will not prevent the company from mold- 
 ing payment on the ground of a breach of n ])romissory warranty not 
 to drink intoxicating liquors to excess. 
 
 Nortliwestern Masonic Aid Association vs. Bodurtlia. May, 1S"9, 23 
 Ind. App. 121. 
 
 Admissions of Member Not Sufficient to Defeat Claim of B-'^efi ry. 
 
 Statements or admissions made l)y the insured and not -^ml lied 
 in the contract are not admissible in evidence in an ;'cti ■ ' a 
 policy for the purpose of defeating the rights of beneficii- ■^• 
 
 The Mason's Union Life Insurance Association vs. Br"- ay, 
 
 1898, 20 Ind. App. 206.
 
 2i4 FRATERNAL SOCIETY LAW 
 
 Eights of Minority of Lodge Where Majority Secede. 
 
 Where the lUiijurity of the iiiemhers of ;i subordinate lodge with- 
 drew from the jiirisdietioii of the Grand Lodge — The Iiidei)eiideut 
 Order of Foresters — the minority who continued steadfast in tlieir- 
 allegiance to the society, are as against tlie maj(irit\'. entitled to 
 the ]ir()])erty of the lodge. 
 
 Ahlendorf vs. Barkoiis. October, 1898. 20 Inrt. App. ti57. 
 
 Beneficiary — Designation of. 
 
 \Vhere tlie hy-laws of a mutual benefit a.ssociation jn-ovide that 
 members upon admittance who desire to participate in the benefit 
 fund shall designate a beneficiary ami the manner in which the 
 fund shall l)e jiaid. in a book to be kejit for that ]iur])(>se by the local 
 lodge, or if such member be absent from his lodge or through extra- 
 ordinary causes be prevented from thus designating a beneficiary 
 in said l)ook, that he may do so in writing, transmitted to the local 
 lodge, and further providing that if any such designation has been 
 made that the benefit fnnd at the member's death shall be paid 
 to his wife: if she be not living, to his childi-en. ])i-o rata, and that 
 if he left neither wife nor cliildrcii. and has made no valid designa- 
 tion of beneficiaries, then that no portion of the benefit fund shall 
 be paid to any one on account of such member: it was held, that the 
 failure oi a member to m;dce such designation, is failui'e to comply 
 witli a condition precedent, and the fact that thr local lodge did not 
 keep the book used in writinu' the names of the beneficiaries as |)ro- 
 vided in till' by-laws was not a sufficient excuse for failing to make 
 surli ili>si<^nation of beneficiaries. 
 
 It was i'lirthrr held, that in such case where a member dies with- 
 out ha\iim made such designation. Iea\ing neither wife nor chil- 
 dri'ii. that his brothers and sisters caiiuot recover any portion of 
 the lii'iiefit riiiid on an oral st;itement niailc by the member to the 
 secretary of the society that he desired tlii' lieiieiit to go to them. 
 
 Lowenthal vs. District Grand Lodge No. 2, I. O. B. B., February, 
 ISnS. m Ind. All]). 277,
 
 THE HTATH OF IXDJAXA 245 
 
 Suickle — ' ' Self-inflicted Injuries. ' ' 
 
 A heiipfil cci'tifie'iile (Icsiunatcil live iiisljiuces I'm' wliicli t lici-r sIkhiIiI 
 lie ii pai'tit'ipatioii in llic I)i'ni'li1 riiiid. tlic last of wliicli was thai llie 
 sum of one luuidred dollai-s would lie paid as a fuiioral benefit "if 
 deatli sluill result from any cause a,t any time while this meiid>er 
 is in good standing',"' llici'c was a further provision th;it "no heiie- 
 fits will he j)ai(l for self-intlieted injuries." 
 
 It was held that the society was not lialile for a funeral benefit 
 upon the death of a member oeeurrinu' by suicide. 
 
 Weblier vs. Home Benevolent Society. .January. ISfi;), 21 Ind. App. 
 :!45. 
 
 Change of Plans — Creation of Classes — After Enacted Laws. 
 
 As to the I'ight of a society to chanui' its plan. <M'eate diffei'ent 
 classes, raise the rates ui)on members and I'cadjust same, one of the 
 earliest ami best considered cases is that of Knights of Pythias 
 vs. Knight, where a change was made by the Society in its plan of 
 doing busiiu^ss. It had been <loing' business solely upon the post- 
 mortem i)lau, having' tliree classes of members upon this |)lan. It 
 created a fourth chiss based upon the ante-mortem plan, and to this 
 fourth class the members of the other nlaiis at the >onnger ages 
 were transferring, upon the invitation and urging of the society. 
 An action was brought to prevent the Society from enforcing its 
 amended laws, and carrying- oiit its ne'w plans on the ])art of one of 
 the older mcMubers of tlie old jilan. Ou this point the Ccnu't said: 
 
 "We do iu)t affirm that a beiu^tit society may, hy a change in its 
 hy-laws. arbitrarily repudiate an obligation created hy a jiolicN- of 
 insurance; but we do affirm that wher(> a change is regularly m.-ule in 
 its by-laws, and the motive which intlnences the change is an hoin'st 
 ■one to promote the welfare of the society, and the memliers are 
 all given an opportunit\' to avail themselves of the change, no ac- 
 tionable wi'ong is done the mendiers oi- their beneficiaries. It may 
 isonu'times hajjiien that the interests of an iiidiviiln.'d. oi' of a few in- 
 dividuals, may be impaired; but it is the right, .'ind indeed it is the 
 ■duty of the society, to protect the interests of the man.w rather than 
 of the few. rersinis who l)ec(nne niemlii'i's of such societies must
 
 246 FRATERNAL SOCIETY LAW 
 
 take notice of tliis; and one person cannot, tlierefore, demaut^lhat 
 the welfare of the society and the interests of the many lie sacri- 
 ficed for his sole benefit. 
 
 "In the case before ns tlie change from the one plan to tlie other 
 ■was not an arbitrary or nnreasonable exercise of power; nor was 
 it the repudiation of a debt, nor the destruction of a vested right. 
 It was not nnreasonable, because it may well be that the system of 
 insurance originally adopted, which gave no heed to age, was so 
 infirm as to be incapable of long- enduring. It was not arbitrary, 
 because the by-laws reserved the right of amendment, and a desire 
 to promote the welfare of the society brought about the change. It 
 was not the repudiation of a debt, because the right to the avails of 
 assessments provided for by the contract was not taken away. It 
 was not the destruction of a vested right, because the power to 
 amend was, as reserved, a part of the contract from which the right 
 of the beneficiary emanated, and because, also, the right to enter 
 the new class was open to all members on equal terms. 
 
 "There was a classification, it is true, according to age; but there 
 was no inequality, because, as all men know, it is no more than .just 
 to require one whose life exjiectancy is brief to pay a higher rate 
 than one whose age gave him. in the usual coiu'se of nature, a longer 
 lease of life. 
 
 "It is to be constantly kept in mind that the contract does not liind 
 the society to pay a designated sum. absolutely and at all events; 
 but, on the contrary, the contract, by its express terms, limits the 
 beneficiary to a specific fund derived from assessments. The rigiit 
 of the beneficiary, as fixed by the contract, is to receive the avails of 
 the assessments. Bacon, Benefit Societies, Para. 453. 
 
 "There is no general fund from which a loss can be paid. All the 
 money available for the payment of losses is derived from the assess- 
 ment of the members of the class in which (he loss occurs. It is 
 therefore not legally po.ssible for a beneficiary in one class to comi>el 
 payment out of funds derived from premiums of assessments paid 
 by the members of aiu)ther class. Each class contributes to its own 
 losses, but not lo losses in othei- classes. Of this, members and bene- 
 ficiaries are bound to take iiotici': and thc\- cainiot. therefore, de-
 
 THE HTATE OF INDIANA 247 
 
 iji.-md llijit I'liiids lii'lonuiiii;' tn iiiiotlici' cliiss shiill he diverted I'oi' 
 their benetit. 
 
 " BeiR'ticiarie.s fi(U(nire tlieir ri^lits lliroufih tlie members. Ft is 
 possible that in some exceptional particulars tlu^y may have rifi:lits 
 wiiieh the members dn imt possess; but in a ease like this, where 
 their contract restricts lliem to a specilic fund, they certainly have 
 no right to demand payment out of a fiuid beloupino' to another 
 class. Their right to payment is eoufiiied 1o the fund designated by 
 their conti'act. and they cannot, with justice, demand that other 
 funds shall be appropi'iatetl to the payment of their claim." 
 
 On the ijuestion as to the danuiges sustained by a member of the 
 old class, the Court said this: 
 
 "Could the plaintiff recover moi'e than nominal damages for the 
 depletion of the class to which the assured belonged, even if it were 
 conceded that the change constituted a breach of the contract? 
 
 "There can be, it seems clear to us. only oni' answei- to this rpies- 
 tion; and that. is, the damages are too remote, conjectural, and 
 speculative to form the basis of a legal recovery. The result that 
 would have followed had not the system been changed is a mere 
 matter of speculation and conjecture. It cannot be said that, if no 
 change has been made, tliere would have been no reduction in the 
 numbers of the class. 
 
 "If the system originally adopted was not one (and this the facts 
 stated make very probable) that would maintain itself, then the 
 appellee would have been nuich worse off than she is now. Whether 
 it would have endured can only he conjectured. The damages are 
 both conjectural and remote. There is no connection between the 
 change in the s.vstem and the depletion of the class of which Ilussey 
 was a member that can be legally said to be proximate and natural." 
 
 Supi'eme Lodgs Ivnights of Pythias vs. Knight, March 1889, Supreme 
 Court of Indiana, 3 L. R. A. 409. 
 
 Recision of Contracts. 
 
 A recision will not he pm'mitted, unless the jiarties are placed in 
 statu (ino. The doctrine has its foundation in natural justice which 
 will not permit one to retain the advantage and escape the burden 
 of his contract at the same time.
 
 248 FRATERNAL SOCIETY LAW 
 
 Modern Woodmen of America vs. Vincent. October. 1907, Appellate 
 Court of Indiana. 82 N. E. 475. 
 
 Mandamus Not Required to Preserve Rights. 
 
 Where a iiieinher of a society was entitled to be transferred from 
 cue ehiss to another, if in good health, and while in good health 
 he applied for such transfer, but was rejected arbitrarily, the Court 
 held he wa.s not bound to institute niandanuis proceedings to compel 
 such transfer or to ju-eserve his rights which he eft'eetiuilly did by 
 paying all assessments levied upon him. 
 
 Supreme Lodge Knights Pythias vs. Andrews, March. 1906, Appellate 
 Court of Indiana. 77 N. E. 361. 
 
 Right of Members to Transfer From One Class to Another. 
 
 Where a member entitled to a traiisfei- from one class to another, 
 if in good health at the lime of his ajiplication. the moti\(^s of a 
 medical examiner whi<-li induced the latter tn n;.i<M-1 tlic applic-ation. 
 were held immaterial. 
 
 Supreme Lodgs Knights of Pythias vs. Andrews, March. 1906. Appel- 
 late Court of Indiana, 77 N. E. 361. 
 
 The Verdict of the Jury May Rest Upon But Little Evidence. 
 
 If there is evidence tending to support the verdict of a .iury, the 
 Court is powerless to interfere with it, although a contrary tindinL; 
 may properly have been based upon the same evidence. 
 
 Sovereign Camp Woodmen of the World vs. Co.\. October, 1906, Ap- 
 pellate Court of Indiana. 78 N. E. 683. 
 
 Aften Enacted Laws Binding — Incontestible Contracts Amended. 
 
 .\ iiiemher was reipiired by an agreement with the society, to 
 eonl'(ii-ni to all laws in force at that time, as well as those which 
 miglit thereal'li'i' be iidii|i1eil. The cdiisl i 1 11 1 i( m of the society ;it that 
 time aiith<ii'i/,ei| its iiiiii'ndinenl ami ,-i proxision of Ihe cnnst it nt ion 
 pfo\ii|eil |li:il ;irie|- Iwci years ;| eerlitieate iil' nienibi'I'shi |i shonbl be
 
 THE STATE OF J.SOIASA 249 
 
 incontestible for any cause except fraud, vidhitimi or l;i\vs o1 rlic 
 society, or failure to ])ay assessjnents. SiihscciniMitly llie is<iciety 
 repealed this iueoiHcstible clause jiud iirovidcd in lii-n Ihereof that 
 in case a ini'iiiln'i- slimild siiicid<' his hi'iictiriary should only Im' en- 
 titled to live per rent id' the face of the certificate for each \-ear that 
 the uieiuher belonf;ed to the society. It was held that this amend- 
 ment did not iiii])air the member's contract who had been such tin- 
 luoi'e than two yeai's |irior to the iuloption of the aniendinent and 
 who thereafter eomniitted suicide. The C(Uirt said "the insured 
 contracted with a])i)ellant to confiu'ui in all r(>spects to the constitu- 
 tion, la^^•s. I'uies. nuil reuidations of this order now in force, or 
 wliich may be hereafter adopted by the Supreme Court thereof." 
 This feature of the e(Hitract appeared both in his application and 
 the certificate. .\ niendier of an order of this character has a voice 
 in its hnxniakiny- body in that the representatives of such body 
 are selectetl from the suboi-dinate bodies and are members thereof. 
 It is averred in the answer that the ameiulment under consideration 
 was enacted in due and regular form, and we are to decide whether, 
 under insiu'ed's eiin1i-act. su(di ainenduu'Ut is binding;- on bis bene- 
 ficiary. The rifiht to amend the laws in nnitual benefit as.soeiations. 
 within reasonable limits is recognized by all auth(n-ities. aiul this is 
 true not (udy of liy-laws, but the organic law as well. 
 
 To justify the interference by the courts and warrant the over- 
 throw of by-laws enacted in the mode prescribed by the by-laws, 
 it unist be shown that there was an abuse of power, or that the 
 later by law is unreasonable. It is not enough to show that a better 
 or wiser course might lune been pursued, for it must be shown tluit 
 there was an abuse of discretion, or that a by-law is so unreas(Hiable 
 as to be void. We do iu)t affirm that a Beiu^fit Society nuty. by a 
 change in its by-laAvs, arbitrarily repudiate an obligation created by 
 a policy of insurance, but we do affii'm that, where a change is regu- 
 larly made in its by-laws, and the nu)tive which iiitlueuces the change 
 is an honest one to iiromote the welfare of the society, and the uu^m- 
 bers are all given an opport\uiit\' to avail themselves of the change, 
 no actionable wrong is done the members or their beiu^ticiaries. ' It 
 may sometimes liajipeii that the interests of one individual, oi' of a 
 few individuals, nuiy bi' impaired, but this is the r'iuht, and, indeed.
 
 250 FRATERXAL SOCIETY LA^V 
 
 it is the duty, of the society to protect the interests of tlie many 
 rather than of a few. Persons who become members of such society 
 nuist take notice of this, and one nerson cannot, therefore, demand 
 that the welfare of the society and tlie interests of the many be 
 sacrificed for liis sob* Itenefit.'' 
 
 Court of Honor vs. Hutchens, Nov.. 190C, Appellate Court of Indiana. 
 79 N. E. 409. 
 
 Error in Age — Voidable Contracts. 
 
 A member in his application warranted that he was born on a 
 certain date and ag;ree(l that any untrue answer shoidd forftMt his 
 certificate. He was in fact a year older than the age named in his 
 application, but the rate charged the member who had misstated 
 his age was the same as it wimld have been had he acctu'atel\- stated 
 his age. It was held, under the circumstances, that a breach of war- 
 ranty rendered the contract voidable only, and that the society hav- 
 ing taken no steps to enforce a forfeiture, was held to consider it 
 valid and was not entitled after the death of the member in an action 
 on the contract to recover thereon, to claim that the contract was 
 void from the beginning. 
 
 Modern Woodmen of America vs. Vincent. Feb., 1907. Appellate 
 Court of Indiana, 80 N. E. 427. 
 
 Coroner's Inquest Not Binding on Beneficiary. 
 
 The laws of a society required the beneticiary to furnish proofs 
 of death and after the coroner's inquest was held, to siUjmit a copy 
 of the evidence and findings, as a part of the proof of death. A 
 beneficiary attached to the proofs a copy of the evidence taken by 
 the coroner together with his finding, which was to the effect that 
 the member came to his death by drinking carbolic acid with sui- 
 cidal intent. The beneficiary stated that she did not believe that 
 the member came In his death by drinking cai'hdlic acid. It was 
 held that the coroner's fiiulings and the testimony taken by him. 
 were not admissible in eviilenee under the general denial; if ad- 
 mLssible at. all they were only so in siijiport of an answer setting up
 
 THE STATIC OF ISDI.iyA '251 
 
 (Icalli \)\ siiic^idc. The Court licld 1l:at the t'oroner's iii(|ucs1 was in- 
 adniissililc. to establisli an at'iii'iiial i\-i' dcfciiso of suioidc. 
 
 Craiger vs. Modern Woodmen of America. Feb., 1907, Appellate Court 
 of Indiana, 80 N. E. 429. 
 
 Release — Suit to Cancel Must Tender Back Payment Received. 
 
 A I'oniplaiiit prayiiiii tor a caiici'llat ion of a reli'asf alleged to 
 have been obtained through fraud, wliich fails to allege a return 
 or tender of the sum reeeivetl, is held fatally bad. 
 
 Supreme Council Knights and Ladies ol' Columbia vs. Apman, March, 
 1907, Appellate Court of Indiana. 80 N. E. (!40. 
 
 Release of Claim — Suit to Set Aside. 
 
 In a complaint against a fraternal soeiety, issuance of a certificate 
 was alleged, and that the society by fraud induced the beneficiary 
 to execute a release on receiving part of the amoiuit due under tin- 
 certificate. The complaint was held bad and the evidence introduced 
 was held insufficient to establish the fraiul. 
 
 Supreme Council Knights and Ladies of Columbia vs. Apman, March, 
 1907, Appellate Court of Indiana, 80 N. E. 640. 
 
 The Supreme Court of Indiana on Oct. 29, 1907, handed down an 
 opinion (not yet printed), in the case of Mutual Protective Legion 
 vs. Biegler, State Auditor, which is of great interest and value to 
 many fraternal societies and the opinion is here reproduced in fidl : 
 
 "This was a proceeding by way of mandate to compel the Auditor 
 of State to license relator to do business in this State as a fraternal 
 beneficiary association, for the year then next ensuing. Issues 
 were .joined, and, after a hearing, the peremptory writ was denied. 
 
 "It appears from the evidence that the relator is chartered as a 
 fraternal beneficiary association under the laws of Illinois, and 
 ■ that it was doing business in this State at the time of the enact- 
 ment of the act of March 1, 1899, Acts 1899, p. 177, Sees. 5050a, et 
 seq. Burns 1901. The testimony of the president of relator showed 
 that it had established what it termed an emergency council in
 
 252 FRATERNAL HOVIETY LAW 
 
 the State of Illinois: that this council had about three hiiiuli-ed 
 members, a majority of whom were members who had moved away 
 from their home councils; that relator emjiloyed agents, or. as 
 they were termed, deputies, some of whom were paid a salary and 
 others a commission, to establish new councils: that where a de|)iity 
 had gotten a number of persons together, and some of them failed 
 to be initiated, while others desired to, and there was reason to 
 believe that at some time a council might be organized at that 
 place, that association regarded it for the good of the order to 
 receive the latter, and to enroll them in some established couiu^il, 
 either one nearby, or in the emergency council referred to: that 
 iu that event the deputy would give the applicant the unwi-itten 
 \vork, including the signs, passwords, etc. When asked whether 
 this would be done in a cornfield m' barn, the witness answered: 
 "Any place that was secret.' So far as indicated by its by-laws. 
 it would seem that the beneficial, or perhaps it might be termed 
 the insui-ance feature, to relator's organization is the leading one. 
 The witness referred to testified that a dejiuty who was working 
 on a salary was exi)ected to do a certain am<nnit of business or 
 his services would be discontinued. 
 
 "By § 5050a, .supra, it is required that fratei'iuil beneficiary as- 
 sociations 'shall have a lodge .system, with ritualistic fi)rni of 
 woi'k.' 'Such associations.' the section declares, 'shall be governed 
 by this act, and shall be exempt from the jn'ovisions of the in- 
 surance laws of the State.' Section 5050b, authorizes associa- 
 tions incorpoi-ated in another State, falling within the description 
 set forth iu the prior section which were doing business in the 
 State at the time of the enactment of tiie statute, to continue such 
 business, provided that they comjily with the provisions of the act 
 concerning the making of annual repoi-ts to llu' .Vuditor of State 
 and designate him as a person njioii whom ])rocess )n;iy be served. 
 By SS 5(150(1 and 505()f. which apply to associations of the char- 
 acter of relaliii-. provisiiiii is iii:idi' Tor tlir lirrnsing of such asso- 
 ciations til do hnsiness in the State from year to year. Section 
 5()5(lk. which follows section making prox'isiou for the iiu-or)iorat ion 
 of IVatri-nal licm-ficiai'v associations in the State provides: "Such 
 associations shall not employ paid aiic^nts in solieitinu; or pi'denring"
 
 THE STATI'J OF IXDIANA 253 
 
 nieinbci's ('xccpl in 1hc (ii-L;iiiii/.;i1 ion or linililiiiL; up nl' siilHii'iliii:it c 
 bodies or jii'antiiij;' iiu'iiihcrs iiidiu'cmciils to |)i'ociire new meiiiiiei's. ' 
 It appears from tlie evidence ott'ei'ed hy i-elator tliat there is a liUe 
 provision in the act nndcr which rehdor is iiicdfporated. 
 
 "It is ((uite (dear to ns thai I'clator lias been j;uii1y ol' a vinhiliim 
 (if both tile letter and the spirit ot !; oil.")!);!, supra, ^\ilich re- 
 quiri's that snch associations shall have a lodge sysleni. with ritual- 
 istic form (d' wiirk. It is unnecessary for the purpnse (d' this 
 case to attemjit a differentiation of ordinai'y insurance and the 
 benefits grantetl by fraternal organizations. It suffices now to state 
 that it was evidently the legislative contemplation that the spirit 
 of fraternity among the mend)ers of such associations afforded such 
 a check in the administration of their beneficiary funds as to war- 
 rant the establishment of such associations without surrounding 
 them with all of the safeguards which have been thrown about the 
 business of insurance, in which the jiarties deal at arm's length. 
 In otiier words, that i)rovision of the statute concerning the main- 
 tenance of the lodge system with ritualistic form of work is. a con- 
 dition of the grant of ])o-\\er, and is one which such an association 
 is not at libertv to disobey. Upon this point we are of opniion 
 that the provision of the statute should be rigidly adhered to, for 
 in matter of substance it is the fraternal feature of these asso- 
 ciations which constitutes one of the leading distinctions between 
 them and mutual insurance companies. The course piu'sued by 
 relator would in some degree tend to break clown an intended legis- 
 lative check upon the safeguarding of its funds, ami if winked 
 at, would afford a constant temptation to associations of like char- 
 acter to hont)r the statute in the breacdi rather- than in its observ- 
 ance. 
 
 "It also ai)pcars to us that in another jiarticular, relator is calling 
 on the C'Ourt to admit it to do business in contravention of the 
 donu'stic policy of this State, and also, if we may regard the evi- 
 dence oft'ered by its coiuisel, in contravention of its own charter 
 restrictions. We refer to the employment of agents who, as stated 
 above, are permitted to enroll members who have no substantial 
 relation to the association as a fraternity. Whether associations 
 of this character, which are organized luider the law of another
 
 254 FRATERNAL SOCIETY LAW 
 
 State, but which were doing: business her.e when the statute was 
 passed, are to be regarded as foreign corporations, or, by virtue 
 of the statute, as domestic corporations quod hoc, yet the legishitive 
 comity whicli the statute expresses in authorizing- them to do busi- 
 ness in this State is not without restriction, and should be limited 
 by con.struction, so that an association may not by the taking up 
 of a local habitation, pursue a course which would at once be to 
 do what is prohibited to local associations of like character and 
 to violate the law of its own existence. In discussing the doctrine of 
 comity, as appjied to foreign corporations Judge Thompson says: 
 'Without attempting to enumerate in a single section all the cases 
 to which this county does not extend, it may be observed in the 
 first place that it does not extend so far as to concede to foreign 
 corporations the powers which their own charters do not permit 
 them to exercise, nor so far as to ])eniiit a foreign corporation 
 to exercise powers within the State which a domestic corporation 
 of the same kind is not permitted to exercise under the consti- 
 tution, laws or jjolicy oF liie State.' If) Cyc. 1224, and see Nathan 
 vs. Lee, 152 Ind. 232. 
 
 "The course pursued by relator is especially pernicious in its 
 tendency, since the partial abandonment of the lodge feature and 
 the employment of paid agents are brought into conjunction, tlius 
 putting agents unuder the temptation to solicit individuals nominally 
 to join the association on account of the death benefits paid by it, 
 instead of devoting their efforts to the building up of a s.ystem 
 of lodges. 
 
 "Counsel for appellant contend that as relator had made its re- 
 port according to law, it was the duty of the Auditor of State to 
 issue a license: that he had no power to enter into an incpiii'y 
 as 1(1 the iiiiuuiei- in whieli rcbitor had done business. This appears 
 to us to lir ;i moot c|iii',s1 ion, in view of the fact that relator is 
 seeking by inaiidatc to cnl'oi'cc the granting of a license. The writ 
 will not issue to pi'nniolc a wrong, or to coin]iel a coinpliani'c with 
 the strict h'ttci- of the slMtntc in disregard of its spirit. Western 
 I'nion Tel. Co. vs. State, ex rel., IGf) Ind. 492: Funk vs. State, ex rel.. 
 Kit) Ind. 4.'ir); People, ex rel. vs. Board. 1:57 N. V. 2(11. As was 
 said i?i tile rase last cited: 'Tliat I'l-lalor nnist come into Court
 
 THE STATE OF JXDIANA 255 
 
 with clcjin liiiiids.' When rchitiir li;is pureed JlscH' ol' tliat wliidi 
 is objertioiuihlc in its iu;iiiiicr of doiiio- linsiiicss i1 will lir linn' 
 enough to seek the aid of the courts. 
 " Jutlgjneiit ;dfirmed. "" 
 
 A cei'titicate under which a jx'rsou was insuri'd made suicide 
 while sane a complete defense apainst Hie contract of insurance. 
 The constitut inn and liy-laws pi'oviili'cl 1li;M ai'tcr Iwn vi'ars the cer- 
 tificate should be incontestable except for fraud, violation of the 
 constitution or laws, or failure to pay assessments. After the mem- 
 ber had paid his assessments for five years a by-law was adopted 
 which provided that if a member committed suicide, only part) of 
 the face of the certificate would be paid. It was held that the by- 
 law, having been passed after the defense of siiicide had become 
 un;ivail;d)lf. was void as to tbat ccrtificalc. sinc<' it impaired the 
 obligation of the contract. The Court said : 
 
 "No question as to the authority of the society to make or change 
 its by-laws , generally speaking, is involved in this case, but by the 
 terms of the contract the appellant has become absolutely liable for 
 the payment of two thousand dollars, and could not thereafter dis- 
 charge such liability to the extent of $1,500 b.v the enactment of a 
 by-law, any more than it could discharge its entire liability by such 
 an act, it admitting liability to the amount of $500." 
 
 Court of Honor v.s. Hutehens. App. Ct. of IiuL. Nov. 1907, 82 N. E. 89.
 
 256 FHATEIfXAL SOCIETY LA.^V 
 
 THE 
 
 STATE OF IOWA. 
 
 CHAPTER 16. 
 
 (The Section mimbers are from the Iowa Code.) 
 
 Defined. 
 
 Section 1822. A fraternal beneficiary as.sociation is herelty de- 
 clared to be a corporation, society or voluntary association, formed 
 or organized and carried on for the sole benefit of its members and 
 their beneficiaries, and not for profit, and having a lodge system, 
 with ritualistic form of work and representative form of govern- 
 ment. Such association .shall make provision for tlie payment of 
 benefits in case of deatli. and may malvc provision for the payment 
 of benefits in case of sickness, temporary or permanent physical dis- 
 ability, either as a resnlt of disease, accident or old age, provided 
 the period of life at which payment of physical disability benefits 
 on account of old age commences .shall not be under seventy years, 
 suljject to the compliance by members with its constitution and laws. 
 But the provisions of this chapter shall not be construed to include 
 fraternal orders which only provide for sick and funeral benefits. 
 
 Assessments. 
 
 Section 1823. The fund from which the payment of such benefits 
 shall })e made and the expenses of such association defrayed shall be 
 drrivcd from beneficiary calls, assessments or dues collected from its 
 
 liirliibci'S.
 
 THE STATE OF IOWA 257 
 
 Insurable Age — Beneficiary. 
 
 Section 18'24. No fraternal association created or organized under 
 the provisions of this chapter shall issue any certificate of member- 
 ship to any person under the age of fifteen years, nor over the age 
 of sixty-five years, nor luiless the beneficiary under said certificate 
 shall be the husband, wife, relative, legal representative, heir or 
 legatee of such member. 
 
 Statutes Applicable. 
 
 Section 1825. Sucli associations shall he governed by this chapter, 
 and shall be exempt from the provisions of the statutes of this State 
 relating to life insurance companies, except as hereinafter provided. 
 
 Copy of Application. 
 
 Section 1826. All such associations shall, upon the issue or re- 
 newal of any beneficiary certificate, attach to such certificate or in- 
 dorse thereon a true copy of any application or representation of the 
 member which by the terms of such certificate are made a part 
 thereof. The omission so to do shall not render the certificate in- 
 valid, but if any such association neglects to comply with the re- 
 quirements of this section it shall not plead or prove the falsity of 
 any such certificate or representation or any part thereof in any 
 action upon such certificate, and the plaintiff in any such action, in 
 order to recover against such association, shall not be required to 
 either plead or prove such application or representation. 
 
 Where Suable. 
 
 Section 1827. Such associations may be sued in any county in 
 which is kept their principal place of business, or in which the benefi- 
 ciary contract was made, or in which the death of the member 
 occurred : but actions to recover old age, sick or accident benefits 
 may, at the option of the beneficiary, be brought in the county of 
 his residence. 
 
 n
 
 258 FRATERNAL SOCIETY LAW 
 
 Exemption of Proceeds. 
 
 Section 1828. The proceeds of any beneficiary certificate issued 
 by any such association, and of any claims for benefits, shall be ex- 
 empt from execution and attachment, to the same extent as the pro- 
 ceeds of any policy of life or endowment insurance, as is now or 
 may hereafter be provided by the laws of this State. 
 
 Foreign Companies. 
 
 Section 1829. Any such association organized under the laws of 
 any other State shall be permitted to do business in this State, when 
 it shall have filed with the auditor of this State a duly certified copy 
 of its charter and articles of association, and a copy of its constitu- 
 tion or laws, certified to by its secretary or corresponding officer, 
 together with an appointment of the auditor of this State as a per- 
 son upon whom ]n-ocess may be served as hereinafter provided, if 
 such association shall be shown to be authorized to do business in 
 the State in which it is incorporated or organized. The auditor of 
 State may personally, or by some person to be designated by him, 
 examine into the conditions, affairs, character and business methods, 
 accounts, books and investments of such association at its home 
 office, Avhich examination shall be at the expense of such association, 
 and shall be made within thirty days after demand therefor; and 
 the expense of such examination shall be limited to five dollars per 
 day and the necessary expenses of travel and for hotel bills. If the 
 auditor, after such examination, is of the opinion that no permit 
 should be granted to such association, he may refuse to issue the 
 same. 
 
 Report. 
 
 Section 1830. Every such association doing business in this State 
 shall, on or before the first day of March of each year, make, and file 
 with the auditor of State, a report for the year ending on the thirty- 
 fir.st day of December immediately preceding. All reports shall be 
 upon blank forms to be provided by the auditor of State, or may be 
 printed in pamphlet form, and shall be verified under oath Ity the 
 authorized officers of such association, and slmll ho published, or the
 
 THE STATE OF IOWA '259 
 
 substance thereof, in the annual report of the auditor of State under 
 the separate title "Fraternal Beneficiary Associations," and shall 
 contain answers to the followino- questions: 
 
 1. Xmiilirr of certificates issued diirinii' the year, or iiieiubers 
 admitted ; 
 
 2. Amount of iudenuiity efteeled thereby ; 
 
 3. Number of losses or benefit liabilities iiicuri'cd : 
 
 4. Nuinl)er of losses or benefit liabilities paid; 
 
 5. The amount received from each assessment for the year; 
 
 6. Total amount paid members, l)eneficiaries, legal representa- 
 tives or heirs; 
 
 7. Number and kind of claims for wliich assossniiMils have been 
 made; 
 
 8. Number and kind of claims compromised or resisted, and 
 brief statement of reason ; 
 
 9. Does association charge annual or other ])eriodical dues or 
 admission fees; 
 
 lU. How much ou eacb one thousand doHai's annually, or per 
 capita, as the case may be ; 
 
 11. Total amount received, from what source, and the disposition 
 thereof ; 
 
 ll!. Total amount of salaries, fees, per diem, mileage, expenses 
 ])aid to officers, showing amount paid to each; 
 
 13. Does the association guarantee, in its cei-tificates. fixed 
 amounts to be paid regardless of amount realized from assessments, 
 dues, admission fees and donations ; 
 
 14. If so, state amount guaranteed, and the security of such 
 guarantee ; 
 
 15. Has the association a reserve or emergenc.y fund ; 
 
 IG. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested ; 
 
 17. Has the association more than one class; 
 
 18. If so, how many, and amount of indemnity in each; 
 
 19. Number of members iu each class ; 
 
 20. If voluntary, so state, and give date of organization; 
 
 21. If organized under the laws of this State, under what law 
 and at what time, giving chapter and ycai- and date of passage of 
 the act;
 
 260 FRATERNAL SOCIETY LAW 
 
 22. If organized under the laws of any other State, territory or 
 province, state such fact and the date of organization, giving chap- 
 ter and year and date of passage of the act; 
 
 23. Number of certificates of beneficiary membership lapsed 
 during the year; 
 
 2-1. Number in force at beginning and end of year ; if more than 
 one class, number in each class; 
 
 25. Names and addresses of its presidents, secretary and treas- 
 urer, or corresponding officers. 
 
 The auditor of State is empowered to make any additional in- 
 quiries of anj- such association relative to the business contemplated 
 bj' this act, and such officer of such association as the auditor of 
 State may require, shall promptly reply in writing, under oath, to all 
 such inquiries. 
 
 Service of Process. 
 
 Section 1831. Any such association permitted to do business 
 within this State, and not having its principal office within this 
 State, and not organized under tlie laws of this State, shall appoint, 
 in writing, the auditor of State to be attorney in fact, on whom all 
 process in any action or proceeding against it shall be served, and 
 in such writing shall agree that any process against it which is 
 served on said attorney in fact shall be of the same validity as if 
 served upon the association, and that the authority shall continue 
 in force so long as any liability remains outstanding in this State. 
 Copies of such certificate, certified by said auditor of State, shall be 
 deemed sufficient evidence thereof, and shall be admitted in evidence 
 with the same force and effect as the original. Service upon such 
 attorney shall be deemed sufficient service upon such association. 
 When legal ])i'()ccss against any such association is served upon said 
 auditor of Stale, he shall immediately notify the association of such 
 service by letter, postage prepaid, directed and mailed to its secre- 
 tary or corresponding officer, and shall within two days after such 
 service forward in the same manner a copy of the process served on 
 him to such officer. The auditor of State shall keep a record of all 
 processes served upon him, which record shall show the day and 
 liovu' when such service was made. \
 
 THE STATE OF IOWA 261 
 
 Section 1832. "Before any beneficiary society, order or associa- 
 tion shall be authorized to conimpnce business within this State, it 
 shall submit to the auditor of State its by-laws or rules by which it 
 is to be governed, and also its articles of incorporation which shall 
 include ils pliin of business. The audilni' nf State shall thereupon 
 submit its articles of incorporation to the attorney-general for ex- 
 amination, and if found by him to he in harmony with this title, 
 chapter and with law, he shall so certify upon said articles and 
 return them to the auditor of State. If the auditor of State shall 
 approve the articles and also the by-laws or rules, he shall issue to 
 the society, order or association a permit in writing, authorizing it 
 to transact business within this State for a period of one year from 
 the first day of April of the year of its issue, for which certificate 
 and all proceedings in connection therewith, there shall be paid to 
 the auditor of State a fee of twenty -five dollars, and for each annual 
 renewal thereof a like fee shall be paid: provided, however, that 
 before such certificate shall be issued, the fraternal society, order or 
 association shall have actual bona fide applications upon the lives of 
 at least five hundred (500) persons, residents of this State, for at 
 least one thousand dollars of insurance each, and the auditor of 
 State may require the presentation of such applications, signed by 
 the applicants themselves. No renewal of certificate of authority 
 shall bo made to any society, order, or association whose member- 
 shi]!. in good standing, or the amount of whose insurance in force 
 shall be reduced below the above requirements. Societies, orders or 
 associations not organized under the laws of this State, in addition 
 to the requirements of the provisions of section eighteen hundred 
 twenty-nine (1829) of the code, must also comply with all of the 
 provisions of this chapter, except as to the residence of membership ; 
 provided, that no such society, order or association shall be author- 
 ized to transact business within this State unless it shall be shown 
 to have actual members, in good standing of at least one thousand, 
 and at least one million dollars of insurance in force." 
 
 Agents. 
 
 Section 1833. Such association shall not employ paid agents in 
 soliciting or procuring members, except in the organization or build-
 
 262 
 
 FRATERNAL SOCIETY LAW 
 
 ing up of subordinate bodies, or granting members inducements to 
 procure new members. 
 
 Changing Beneficiary. v 
 
 Section 1834. No contract between a member and his beneficiary 
 that the beneficiary or any person for him shall pay such mem- 
 ber's assessments and dues, or either of them, shall deprive the 
 member of the right to change the name of the beneficiary. 
 
 Meetings in Other States. 
 
 Section 1835. Any such association organized under the laws of 
 this State may provide for the meetings of its legislative or govern- 
 ing body in any other State, territory or province wherin such asso- 
 ciation shall have subordinate bodies, and all business transacted at 
 such meetings shall be valid, in all respects, as if such meetings were 
 held within this State; and where the laws of any such association 
 provide for the election of its officers by votes to be cast in its sub- 
 ordinate bodies, the votes so cast in its subordinate bodies in any 
 other State, territory or province shall be valid, as if east witKin this 
 State. 
 
 Proceedings for Violations of Statute. 
 
 Section 1836. Any such association refusing or neglecting to 
 make the report as provided in this chapter shall be excluded from 
 doing business within this State. The auditor of State must, within 
 sixty days after failure to make siich report, or in case any such 
 association sliall exceed its powers, or shall conduct its business 
 fraudulent ly. or shall fail to comply Avith any of the provisions of 
 this chapter, give notice in writing to the attorney-general, who 
 shall immediately commence an action against such association to 
 enjoin the same from carrying on any business. No association so 
 en.jiiini'd shall have authority to continue business until such report 
 shall be made, or overt act or violation complained of shall have 
 been corrected, nor until the costs of such action lie paid by it. pro- 
 vided the court shall lind that such association was in default as
 
 THE STATE OF IOWA 263 
 
 charged ; whereupon the auditor of State shall reinstate such associa- 
 tion, and not until then shall such association be allowed to again 
 do business in this State. Any officer, agent or person acting for 
 any such association or subordinate body thereof within this State, 
 while such association shall be so enjoined or prohibited from doing 
 business pursuant to this chapter, shall be deemed guilty of a mis- 
 demeanor, and on conviction thereof, shall be punished by a fine of 
 not less than twenty-iive dollars, nor more thn two hundred dollars, 
 or by imprisonment in the county jail not less than thirty days nor 
 more than one year, or by both such fine and imprisonment, in the 
 discretion of the court. 
 
 Illegal Business — Agents. 
 
 Section 1837. An.y person who shall act within this State as an 
 officer, agent or otherwise for any such association which has failed, 
 neglected or refused to comply with or which has violated any of 
 the provisions of this chapter, or shall have failed or neglected to 
 procure from the auditor of State proper certificate of authority 
 to transact business as provided for by this chapter, shall be subject 
 to the penalty provided in the last preceding section for the mis- 
 demeanor therein specified. 
 
 False Representations by Officers or Agents. 
 
 Section 1838. Any officer, agent or member of such association, 
 who shall obtain any money or property belonging thereto by any 
 false or fraudulent representations, shall be fined not more than 
 five hundred dollars and costs, and stand committed until such fine 
 and costs are paid, or may be imprisoned in the county jail not more 
 than six months. 
 
 Physician 's Certificate. 
 
 Section 1839. Every applicant for membership in any association 
 organized in this State shall first be examined by a physician hold- 
 ing a certificate from the State board of medical examiners. 
 
 The legislature provided for the examination of Fraternal Soci- 
 eties by act approved March 17, 1904, which act is as follows :
 
 2g4 FRATERNAL SOCIETY LAW 
 
 An Act to provide for the examination of Fraternal Beneficiary 
 Associations. [Amendatory to chapter nine (9) of title nine 
 (IX) of the code, relating to Fraternal Beneficiary Societies, 
 Orders and Associations.] 
 
 Be it enacted by the General Assembly of the State of Iowa : 
 
 "Association" Defined. 
 
 Section 1. The term "association" when i;sed in this act shall 
 mean any society, order or association organized or authorized 
 under the provisions of chapter nine of title nine of the code. 
 
 Examination — Assistants — Compensation. 
 
 Section 2. The auditor of State may. at any time he may deem it 
 advisable, either in person or by his legally appointed representa- 
 tive, make an examination of or inquire into the affairs of any fra- 
 ternal beneficiary association authorized or seeking to be authorized 
 to transact business within this State, provided the examination of 
 associations organized under the laws of this State shall not be less 
 frequent than once during each biennial period. To aid in making 
 such examination, the auditor of State may appoint such assistants 
 as may be necessary, each of whom shall receive as compensation 
 for his services not to exceed five dollars per day. 
 
 Officers to Assist — Examiner May Administer Oaths. 
 
 Section 3. When an association is being examined, the ofScers, 
 agents or employes thereof shall produce for inspection all books, 
 papers, documents or other information concerning the affairs of the 
 association and shall otherwise assist in the examination. The audi- 
 tor of State or examiner shall have authority to administer oaths, 
 and may summon and may examine under oath any officer, employe, 
 representative or agent of any association concerning its affairs or 
 condition. 
 
 Revocation or Suspension of Authority. 
 
 Section 4. If upon investigation or cxainiiiation, it shall appear
 
 THE STATE OF IOWA 265 
 
 to the satisfaction of the auditor of State that any association is 
 doing an illegal or unauthorized business, or is failing to fulfill its 
 contracts with its members, or is conducting its business fraudu- 
 lently, or if its membership or the amount of its insurance in force 
 has been reduced below the legal requirement, or should any asso- 
 ciation decline or refuse to submit to an examination, the auditor 
 of State may suspend or revoke its certificate of authority to trans- 
 act business within this State, and haying revoked the certificate of 
 authority of any association organized under the laws of this State, 
 he shall at once report the same to the attorney-general who shall 
 apply to the district court or any judge thereof for the appointment 
 of a receiver to wind up the affairs of such association. 
 
 Expenses — How Paid. 
 
 Section 5. In addition to the compensation of the assistants pro- 
 vided for in section two of this act, the auditor or examiner and 
 assistants shall be entitled to actual and necessary traveling, hotel 
 and other expenses while conducting examinations away from their 
 respective places of residence, the same to be paid by the treasurer 
 of State upon warrants drawn by the auditor of State, bills there- 
 for having been filed under oath and approved by the executive 
 council. Such expense and compensation shall, by the auditor of 
 State, be charged to and collected from the associations examined 
 and should any association neglect or refuse to pay the same, the 
 auditor of State shall at once revoke its certificate of authority to 
 transact business within this State. 
 
 Soliciting New Business — Penalty. 
 
 Section 6. Any officer, manager, agent or representative of any 
 association who with knowledge that its certificates [certificate] of 
 authority has been suspended or revoked or that it is doing an 
 illegal, unauthorized or fraudulent business, solicits insurance for 
 said association or receives applications therefor, or does any other 
 act or thing toward receiving or procuring any new business for 
 said association, shall be deemed guilty of a misdemeanor and for 
 every such act, on conviction thereof, shall pay a fine of not less
 
 266 FRATERNAL SOCIETY LAW 
 
 than one hundred nor more than one thousand dollars, or be im- 
 prisoned in the county jail not more than one year, or be punished 
 by both such fine and imprisonment. 
 
 By act approved March 30, 1904, the legislature passed a law pro- 
 viding for the consolidation of Fraternal Societies. The act is as 
 follows : 
 
 An Act to provide for consolidation or re-insurance of the risks of 
 Fraternal Beneficiary Societies with or by other societies or organ- 
 izations, and providing a plan therefor. [Additional to chapter 
 nine (9) of title nine (IX) of the code, relating to Fraternal 
 Beneficiary Societies, Orders and Associations.] 
 
 Be it enacted by the General Assembly of the State of Iowa : 
 
 Plan of Consolidation or Re-insurance — Approval. 
 
 Section 1. When any fraternal beneficiary association shall pro- 
 pose to consolidate or enter into anj^ re-insurance contract with any 
 Other association or organization, it shall present its proposed plan 
 of consolidation or re-insurance, together with a statement of the 
 condition of its aii'airs to the auditor of State for his approval. 
 Should he approve the plan, the same shall be submitted by any 
 association proposing to re-insure its risks or transfer its business, 
 to its local lodges or organizations or to a regular or special meeting 
 of its supreme lodge or governing body to be voted upon, such notice 
 being given as the auditor of State may direct. If, in the judgment 
 of the auditor of State, it is deemed advisable he may also require 
 the plan to be in like manner submitted to the association proposing 
 to accept or re-insure the risks of any other association. In ease two 
 or more associations propose to consolidate, the proposed plan of 
 consolidation shall be submitted, as above provided, to all the asso- 
 ciations interested in such consolidation. In any of the above cases, 
 a two-thirds vote of all of the members of each association present 
 and voting shall be necessary to an approval of any plan of consoli- 
 dation or re-insnranee, and in no ease shall proxies be voted. On 
 presenting to the auditor of State satisfactory proof that the fore- 
 going provisions have been complied witli and that the required 
 number of votes have been east in favor of the proposed plan, he
 
 THE STATE OF IOWA 267 
 
 shall issue to the associations an order to the cft'cct that the plan 
 has been approved, and the same shall be in force and effect from 
 and after the date of such order, and the auditor of State shall 
 direct such distribution of the assets of aii.>' such association or asso- 
 ciations as shall be just and equitable. 
 
 Expenses, How Paid. 
 
 Section 2. All expenses or costs incident to proceedings under the 
 provisions of this act shall be paid by the associations interested. 
 
 Penalty. 
 
 Section 3. Any officer, director or manager of any association 
 violating or consenting to the violation of any of the provisions of 
 this act shall be punished by a fine of not less than one thousand 
 dollars, or by imiJi'isoument in the county jail not less than one 
 year, or by both such fine and imprisonment in the discretion of the 
 court. 
 
 The following section of the code is here reproduced in view of 
 the decisions of the courts referred to immediately following: 
 
 Against Insurance Companies. 
 
 Section 3499. Insurance companies may be sued in any county 
 in which their principal place of biisiness is kept, or in which the 
 contract of insurance was made, or in which the loss insured against 
 occurred, or. in case of insurance against death or disability, in the 
 county of the domicile of the insured at the time the loss occurred, 
 or in the county of plaintiff's residence. 
 
 Under tliis section an action may be brought before a justice of 
 the peace against an insurance company in another county than that 
 of its residence, notwithstanding the provisions of section 4476. with 
 reference to the place of bringing action in justice's courts: 
 
 Hunt vs. Farmers Ins. Co., 67-742. 
 
 Suit may be brought in the county where the loss occurs : 
 
 State Ins. Co. vs. Granger, 62-272.
 
 268 FRATERNAL SOCIETY LAW 
 
 A provisiou iu a certificate of mutual benefit insurance by which 
 it is stipulated that action shall not be brought thereon except in a 
 certain county named is not valid : 
 
 Matt vs. Iowa Mut. Aid Association, 81-135. 
 
 An action may be brought against an insurance company in any 
 eountj' in which the loss occurred although it has no agent on whom 
 service can be made, provided jurisdiction in rem is acquired by 
 publication : 
 
 Lesure Lumber Co. vs. Mutual F. Ins. Co., 70 N. W., 761. 
 
 An action against an insurance company may be brought in the 
 county in which the loss occurred, even though the principal place 
 of business of a company is in another county of the State: 
 
 Parder vs. National Masonic Ace. Ass'n, 63 N. W., 601. 
 
 j\Iutual benefit associations are to be deemed insurance companies 
 within the provisions of this section : 
 
 Ibid. 
 
 The legislature by an act approved April 10, 1907, exempted the 
 funds of Fraternal Societies from taxation. The act is as follows: 
 
 An Act to amend section thirteen hundred and four (1304) of the 
 code, so as to exempt from taxation the accumulations and funds 
 of Fraternal Beneficiary Associations. 
 
 Be it enacted by the General Assembly of the State of Iowa: 
 
 Exemptions. 
 
 Section 1. That section thirteen hundred and four (1304) of the 
 code be amended by adding the following: 
 
 "8. The accumulations and funds held or possessed by fraternal 
 beneficiary associations for the purposes of paying the benefits con-
 
 THE STATE OF IOWA 269 
 
 templated by section ciyhlccii liumlrcd ami twenty-two (1822) of the 
 code, or for tlie payment of the expenses of such association." 
 
 By act approved Feb. 9, 1907, the legislature amended Section 
 1794 of the ct)de so as to have said section apply to fraternal Acci- 
 dent Societies. Said Section 1794 as so amended, is as follows: 
 
 Foreign Companies. 
 
 Sectioir 1794. Any association organized under the laws of any 
 other State to carry on the business of insuring the lives of persons, 
 or of fui'nishing benefits to the widows, orphans, heirs or legatees 
 of deceased members, or of pa\ing accident indenuiity, or surrender 
 value of certificates of insurance, upon the stipulated premiuni plan 
 or assessment jilau, nuiy be permitted to do business in the State by 
 com]ilying with the recpiirements hereinafter made, but not other- 
 wise. It shall file with the auditor of State a copy of its charter or 
 articles of incorporation, duly certified by the proper ofSeers of the 
 State wherein it was orgauized, together with a copy of its by-laws, 
 application and policy or certificate of membership. It shall also 
 file with the auditor a statement, signed and verified by its president 
 and secretary, which shall show the name and location of the asso- 
 ciation, its principal place of business, the names of its president, 
 secretary and other princii)al officers, the number of certificates or 
 policies in force, the aggregate amount insured thereby, the amount 
 paid to beneficiaries in the event of death or accident, the amount 
 paid on the last death loss and the date thereof, the amount of cash 
 or other assets owned by the association and how invested, and any 
 other information which the auditor may require. The statement, 
 papers and proofs thus filed shall show that the death loss or sur- 
 render value of the certificate of insurance or accident indemnity 
 is in the main provided for by assessments upon or contributions by 
 surviving members of such association, and that it is legally organ- 
 ized, honestly managed, and that an ordinary assessment upon its 
 members or other reyuhir contributions to its mortuary fund are 
 sufficient to pay its niaxinnuu certificate to the full limit named 
 therein. Upon its comjilying with the provisions of this section, and 
 of section eighteen luuulred and eight, chapter eight, of this title, 
 atul the payment of twenty-five dollars. tlu> auditor shall issue to it
 
 270 FRATERNAL mCIETY LAW 
 
 a certificate of authority to do business in this State, provided the 
 same right is extended by the State in which said association is 
 organized to associations of the same class in this State. When the 
 auditor doubts the solvency of any foreign association, and the fail- 
 ure to pay the full limit named in its certificate or policy shall be 
 such evidence of its insolvency as to require the auditor to investi- 
 gate it, he shall for this or other good cause, at the expense of such 
 association, cause an examination of its books, papers and business 
 to be made, and if upon such examination he finds that the associa- 
 tion is not financially sound, or is not paying its policies or certifi- 
 cates in full, or is conducting its business fraudulently, or if it shall 
 fail to make the statement required by law. he may revoke its 
 authority and prohibit it from doing business until it shall again 
 comply with the provisions of this chapter. If the auditor appoints 
 someone not receiving a regular salary in his office to make this 
 examination, such examiner shall receive five dollars per day for his 
 services in addition to his actual traveling and hotel expenses, to be 
 paid by the association examined, or by the State on the approval 
 of the executive council, if the association fails to pay the same. 
 
 The provisions of this section shall apply to fraternal beneficiary 
 associations doing exclusively an accident insurance business, and 
 upon compliance with the provisions of this chapter, and the pro- 
 visions of chapter eight of title nine of the code, so far as the same 
 are applicable, such associations may be authorized to transact busi- 
 ness within this State. 
 
 The legislature by acts approved March 15. 1907. April 4. 1907, 
 and February 14, 1907, enacted three importnnt laws, which are set 
 out as follows: 
 
 An Act relating to rates of Fraternal Beneficiary Societies. 
 
 Be it enacted by the General Assembly of the State of Iowa : 
 Section 1. No fraternal beneficiary society not admitted to trans- 
 act business within this State prior to the passage of this act, shall 
 be incorporated or given a permit or certificate of authority to 
 transact business within lliis Stnte. unless it shall first show that 
 the mortuary assessment rates ])rovi(l('d for in whatever plan of
 
 THE STATE OF IOWA 
 
 271 
 
 business it has adopted, are not lower than is indicated as necessary 
 b.y the followinti' mortality table: 
 
 
 NATIONAL PRATERMAL CONGRESS 
 
 MORTALITY TABLE. 
 
 
 Age. 
 
 No. 
 Living. 
 
 No. 
 Dying. 
 
 Probability 
 of Dying. 
 
 Age. 
 
 No. 
 Living. 
 
 No. 
 Dying. 
 
 Probability 
 of Dying. 
 
 20.. 
 
 100,000 
 
 500 
 
 .0050000 
 
 60. . 
 
 69,801 
 
 1,588 
 
 .0227504 
 
 21.. 
 
 99,500 
 
 501 
 
 .0050352 
 
 61.. 
 
 68,213 
 
 1,681 
 
 .0246434 
 
 22.. 
 
 98,999 
 
 502 
 
 .0050708 
 
 62.. 
 
 66,532 
 
 1,778 
 
 .0267240 
 
 23.. 
 
 98,497 
 
 503 
 
 .0051068 
 
 63.. 
 
 64,754 
 
 1,880 
 
 .0290330 
 
 24.. 
 
 97,994 
 
 505 
 
 .0051535 
 
 64.. 
 
 62,874 
 
 1,985 
 
 .0315701 
 
 25.. 
 
 97,489 
 
 507 
 
 .0052006 
 
 65.. 
 
 60,889 
 
 2,094 
 
 .0343904 
 
 26.. 
 
 96,982 
 
 510 
 
 .0052587 
 
 66.. 
 
 58,795 
 
 2,206 
 
 .0375202 
 
 27.. 
 
 96,472 
 
 513 
 
 .0053176 
 
 67.. 
 
 56,589 
 
 2,308 
 
 .0409620 
 
 28.. 
 
 95,957 
 
 517 
 
 .0053877 
 
 68.. 
 
 54,271 
 
 2,430 
 
 .0447753 
 
 29.. 
 
 95,442 
 
 522 
 
 .0054693 
 
 69.. 
 
 51,841 
 
 2,539 
 
 .0489767 
 
 30.. 
 
 94,920 
 
 527 
 
 .0055520 
 
 70.. 
 
 49,302 
 
 2,645 
 
 .0536489 
 
 31.. 
 
 94,393 
 
 533 
 
 .0056466 
 
 71.. 
 
 46,657 
 
 2,744 
 
 .0588122 
 
 32.. 
 
 93,860 
 
 540 
 
 .0057532 
 
 72.. 
 
 43,913 
 
 2,832 
 
 .0644912 
 
 33.. 
 
 93,320 
 
 548 
 
 .0058723 
 
 73.. 
 
 41,081 
 
 2,909 
 
 .0708113 
 
 34.. 
 
 92,772 
 
 557 
 
 .0060040 
 
 74.. 
 
 38,172 
 
 2,969 
 
 .0777795 
 
 35.. 
 
 92,215 
 
 567 
 
 .0061487 
 
 75.. 
 
 35,203 
 
 3,009 
 
 .0854957 
 
 36.. 
 
 91,648 
 
 578 
 
 .0063067 
 
 76.. 
 
 32,194 
 
 3,026 
 
 .0939927 
 
 37.. 
 
 91,070 
 
 591 
 
 .0064895 
 
 77.. 
 
 29.168 
 
 3,016 
 
 .1031010 
 
 38.. 
 
 90,479 
 
 606 
 
 .0066977 
 
 78.. 
 
 26,152 
 
 2,977 
 
 .1138345 
 
 39.. 
 
 89,873 
 
 622 
 
 .0069209 
 
 79.. 
 
 23,175 
 
 2,905 
 
 .1253506 
 
 40.. 
 
 89,251 
 
 640 
 
 .0071708 
 
 80.. 
 
 20,270 
 
 2,799 
 
 .1380858 
 
 41.. 
 
 88,611 
 
 660 
 
 .0074483 
 
 81.. 
 
 17,471 
 
 2,659 
 
 .1521951 
 
 42.. 
 
 87,951 
 
 683 
 
 .0077657 
 
 82.. 
 
 14,812 
 
 2,485 
 
 .1677694 
 
 43.. 
 
 87,268 
 
 708 
 
 .0081129 
 
 83.. 
 
 12,327 
 
 2,280 
 
 .1849599 
 
 44.. 
 
 86,568 
 
 734 
 
 .0084797 
 
 84.. 
 
 10,047 
 
 2,050 
 
 .2040410 
 
 45.. 
 
 85,826 
 
 761 
 
 .0088668 
 
 85.. 
 
 7,997 
 
 1,800 
 
 .2250844 
 
 46.. 
 
 85,065 
 
 790 
 
 .0092870 
 
 86.. 
 
 6,197 
 
 1,539 
 
 .2483460 
 
 47.. 
 
 84,275 
 
 822 
 
 .0097538 
 
 87.. 
 
 4,658 
 
 1,277 
 
 .2741520 
 
 48.. 
 
 83,453 
 
 857 
 
 .0102693 
 
 88.. 
 
 3,381 
 
 1,023 
 
 .3025732 
 
 49.. 
 
 82,596 
 
 894 
 
 .0108238 
 
 89.. 
 
 2,358 
 
 788 
 
 .3341815 
 
 50.. 
 
 81,702 
 
 935 
 
 .0114440 
 
 90.. 
 
 1.570 
 
 579 
 
 .3687898 
 
 51.. 
 
 80,767 
 
 981 
 
 .0121460 
 
 91.. 
 
 991 
 
 404 
 
 .4076690
 
 272 FRATERNAL SOCIETY LAW 
 
 Age. 
 
 52.. 
 
 No. 
 
 Living. 
 
 79,786 
 
 No. 
 Dying. 
 
 1,029 
 
 Probability 
 of Dying. 
 
 .0128970 
 
 Age. 
 92.. 
 
 No. 
 Living, 
 
 587 
 
 No. 
 Dying. 
 
 264 
 
 Probability 
 o( Dying. 
 
 .4497445 
 
 53.. 
 
 78,757 
 
 1.083 
 
 .0137512 
 
 93.. 
 
 323 
 
 161 
 
 .4984520 
 
 54.. 
 
 77.674 
 
 1,140 
 
 ,0146767 
 
 94.. 
 
 162 
 
 89 
 
 .5493827 
 
 55. . 
 
 76,534 
 
 1,202 
 
 .0157054 
 
 95.. 
 
 73 
 
 44 
 
 .6027397 
 
 56.. 
 
 75,332 
 
 1,270 
 
 .0168587 
 
 96.. 
 
 29 
 
 19 
 
 .6551724 
 
 57. . 
 
 74,062 
 
 1,342 
 
 .0181200 
 
 97.. 
 
 10 
 
 7 
 
 .7000000 
 
 58.. 
 
 72,720 
 
 1,418 
 
 .0194994 
 
 98.. 
 
 3 
 
 3 
 
 1.0000000 
 
 59.. 
 
 71.302 
 
 1,501 
 
 .0210513 
 
 
 
 
 
 Section 2. This act, being deemed of immediate impoi'tance, shall 
 take elfect and be in force from and after its publication in the Reg- 
 • ister and Leader, and Des Moines Daily Capital, newspapers pub- 
 lished at the city of Des Moines, Iowa. 
 Approved March 15. 1907. 
 
 An Act to permit Fraternal Beneficiary Societies, Orders or Associa- 
 tions to piurchase and own real estate ; to erect a building thereon 
 and to occupy and rent the same. 
 
 Be it enacted by the General Assembly of the State of Iowa : 
 
 Section 1, Any fraternal beneficiary society, order or association 
 organized under the laws of this State, accumulating money to be 
 held in trust for the purpose of the fulfillment of its certificates or 
 contracts, shall be permitted to invest not to exceed ten (10) per 
 cent, of the aggregate amount of such aecumiilation in such real 
 estate in this State as is necessary for its accommodation as a home 
 office, and in the purchase or erection of any building for such p\ir- 
 pose it may add thereto rooms for rent; provided that before any 
 association shall invest any of its funds in accordance with the pro- 
 visions of this sub-division it shall first obtain the consent of the 
 executive council. Any company or association so investing its 
 funds shall convey the real estate thus acquired to the auditor of 
 State by deed, such property to be held by him in trust for the bene- 
 fit of the members of such association, the vahie thereof to be deter- 
 mined from time to time by the auditor of State. Provided, that 
 nothing in this act shall be construed to permit the officials or lioard 
 of directors of such society, ordej- or association to make such in-
 
 THE STATE OF IOWA 273 
 
 vestment without authority specifically griintcd hy tho said society, 
 order or association through its grand nr su|)reme lodge or coiiven- 
 tion. 
 
 Approved April 4, 1!)()7. 
 
 An Act to provide for the investment of the funds of Fraternal 
 Beneficiary Societies, Orders or Associations. 
 
 lit' it enacted b.y the General Assoiiilily of the State of Iowa: 
 
 Section 1. Any fraternal beneficiary society, order or association 
 organized under the laws of this State, accumulating money to be 
 held in trust for the purpose of the fulfillment of its certificates or 
 contracts shall invest such accumulations in tlie following securities 
 and no other. 
 
 1. Bonds of the United States. 
 
 2. Bonds of this or of any other State, when such bonds are at or 
 above par. 
 
 3. Bonds or other evidences of indebtedness of any county, city, 
 town or school district within the State or any other State, or drain- 
 age bonds of anj^ drainage district in the State of Iowa where such 
 bonds or other evidences of indebtedness are issued by authority of 
 and according to law and bearing interest, and are approved by the 
 executive council. 
 
 4. Bonds, mortgages and other interest bearing securities being 
 first liens upon real estate within this State or any other State, 
 worth at least doi;ble the amount loaned thereon and secured 
 thereby exclusive of improvements, or two and one-half times such 
 amount including the improvements thereon, if such improve- 
 ments are constructed of brick or stone ; but no such improvements 
 shall be considered in estimating the value unless the owner shall 
 contract to keep the same insured in some reliable fire insurance 
 company or conipanii's authorized to do business in the State, during 
 the life of the loan, in a sum at least double the excess of the loan 
 above .one-half the value of the ground exclusive of the improve- 
 ments, the insurance to be made payable in case of loss to the com- 
 pany or association investing its funds, as its interest may appear 
 at the time of loss. 
 
 18
 
 274 FRATERNAL SOCIETY LAW 
 
 All such securities shall be deposited with the auditor of State 
 subject to his approval, and shall remain with him until withdrawn 
 in accordance with the provisions of this act. Any fraternal benefi- 
 ciary society, order or association receiving payments or partial pay- 
 ments on any securities deposited with the auditor of State, shall 
 notify him of such fact giving the amount and date of payment 
 within fifteen (15) days after such payment shall have been made. 
 The ofiicers of any society, order or association which fails to report 
 the receipt of payments or partial payments as above provided shall 
 be liable to a fine in double the amount collected and not reported 
 within the time and in the manner above specified. 
 
 An}' societ}', order or association required to make a deposit with 
 the auditor of State as herein contemplated, shall at the time of 
 making such deposit, designate by what provisions of its articles 
 of incorporation or laws such f\md is accumulated and upon making 
 request for withdrawal of any funds shall designate for what i)ur- 
 pose such withdrawal is desired. 
 
 Anj' society, order or association, may at any time change its 
 securities on deposit by depositing a like amount in other securities 
 of the same character and the auditor of State shall permit a with- 
 drawal of the same upon satisfactory proof in writing filed with 
 him that they are to be used for the purpose for which they were 
 originally deposited. 
 
 The auditor of State shall have authority to suspend or revoke 
 the certificate of authority of any society, order or association fail- 
 ing to comply with an\' of the provisions of this act or for violating 
 the same. 
 
 "Nothing in this act shall be constructed to apply to any associa- 
 tion organized solely for benevolent purposes and composed wliolly 
 of members of any one occupation, guild, profession or religious 
 denomination." 
 
 Approved February 14, 1907. 
 
 Beneficiary — Niece by Affinity. 
 
 The Supreme Court in passing u|h)ii section 1824 of the code, 
 which provides that "No fraternal association shall issiu' any cer- 
 tificate of mcnibei'sliip unless the beneficiary uiuler said certificate
 
 THE STATE OF IOWA 275 
 
 shall be the husband, wife, relative, legal representative, heir, or 
 legatee of such member." Held, in a case where the niece of the first 
 wife of the father of the deceased member claimed the fund, the 
 deceased member being the issue of the second wife, that the said 
 niece was not competent to take the benefit. The court said, "con- 
 ceding that the term relative is to lie extended to cover the rela- 
 tives by marriage as well as by blood, we are unable to reach the 
 conclusion that the plaintiff was a relative of the deceased during 
 the life of the first wife. The father of deceased was the uncle 
 by marriage to the plaintiff, and it appears after the death of the 
 first wife the father of decea.sed wan still her uncle by afSnity, but 
 there was no relationship by either blood or affinity between the 
 plaintiff and the deceased son of her uncle by marriage to his second 
 wife. The general proposition seems to be this, that the relation- 
 ship of affinity is not created by the blood relatives on either side 
 of the parties to the marriage relation. 
 
 Smith vs. Supreme Tent, Knights of the Maccabees of the World, 
 March, 1905, 127 la. 115. 
 
 Payment to Wrong Beneficiary — Suit by Other Claimant. 
 
 Where a fraternal society paid, pending an action by one of two 
 contesting claimants, the amount of a death loss to one of the 
 claimants in the regular way, but neglected to inform its counsel 
 of the fact until after judgment against it on a claim of the other 
 claimant, it could not urge that such payment constituted newly 
 discovered evidence entitling it to a new trial. 
 
 Robins vs. The Modern Woodmen of America, May, 1905, 127 la. 444. 
 
 Construction of Doubtful Contracts. 
 
 It is only when the nature of an insurance contract is ambiguous 
 or fairly suspectible of two or more constructions that courts are 
 required to give it that construction which will afford protection to 
 the assured. 
 
 The court in this case said: "Rut appellee insists that the lan- 
 guage used in the certificate should be so constructed as to cover
 
 276 FRATERNAL SOCIETY LAW 
 
 the injury above desci'ibed, relying upon the proposition that it is 
 the duty of the court to construe the terms of every policy of insur- 
 ance or benefit certificate most strongly against the insurer and to 
 resolve every doubt of ambiguity in favor of the insured. There is 
 no doubt about the rule for which the counsel contends, but the 
 difficulty is in its application. If the language used in the certificate 
 is ambiguous or is reasonably capable of two or more constructions 
 that construction should be given which will aft'ord the insurer pro- 
 tection under the certificate, but the parties have a right to make 
 contracts for themselves and there is no authority for the court to 
 change such contracts." To take away from parties this unde- 
 niable right of contract, or to make contracts for parties is not 
 within the province of courts of justice. 
 
 Peterson vs. Modern Brotherhoofl of America. November. 1904, 125 
 la, 562. 
 
 Inefifectual Change of Beneficiary. 
 
 Where a benefit certificate entitles the lieiieficiary to participate 
 in a special fund, a subsequent change in beneficiaries made by the 
 society upon compliance of the member with cei'tain requirements 
 being authorized, an attempted change of beneficiary was held not 
 to effect the right of the beneficiaiy where the member failed to 
 perform the conditions required to make such change. 
 
 Kennedy vs. Iowa Legion of Honor, April, 1904, 124 la. 66. 
 
 Separate Warranties — Separate Breaches of. 
 
 AVhere there are separate warranties in a benefit certificate a 
 breach of either will defeat recovei-y and the jnrv should be clearly 
 instructed to that effect by the court. It was held error for the 
 court to fail or refuse to .so instruct. 
 
 Knapp vs. Brotherhood of American Yeoman. October, 1905. 12.S la. 
 566. 
 
 Funds In Hand To Be Applied Before Forfeiture. 
 
 Where a jiiiitiial Hi'c iiisiiraiice cojiipaiiy had funds in its liands
 
 THE STATE OF IOWA 277 
 
 belongiug to the incmlicr sufficient to pay an assessment due from 
 him it was held that it could not declare a forfeiture of the policy 
 for non-payment of such assessment, but that it was its duty to 
 apply the funds in its hands. 
 
 Younghoe vs. The Grain Shippers' Mutual Fire Insurance Com- 
 pany, January, 1905, 126 la. o74. 
 
 Strict Construfction Required. 
 
 The conditions of an insurance contract which, if violated, ren- 
 ders the same void, will be strictly construed and in case of doubt, 
 will be construed against the company. 
 
 Swank vs. Farmers Insurance Company, February, 1905, 126 la. 547. 
 
 Application of Advance Payments. 
 
 The advance mortuary assessment joaid by a member of a fra- 
 ternal society to join the society cannot be applied on an assessment 
 levied prior to his membership, under regulations which require 
 new members to pay an advance assessment and which also provide 
 that death losses shall be paid from equal contributions of the mem- 
 bers. 
 
 Hetzel vs. Knights and Ladies of the Golden Precept, February, 1906, 
 129 la. 655. 
 
 Advance Payments. 
 
 A rule that each menil)er of a fraternal society shall pay an 
 advance assessment upon entering- the societ.v does not require him 
 to keep an advanced assessment continually up. 
 
 Hetzel vs. Knights and Ladies of the Golden Precept, February, 1906, 
 129 la. 655. 
 
 Exemption From General Insurance Law^s. 
 
 A fraternal societ.y was held not to be a life insurance company
 
 278 FRATERNAL SOCIETY LAW 
 
 within the meaning of the statutes, imposing obligations and re- 
 quirements upon regular insurance companies. 
 
 Knapp vs. Brotherhood of American Yeoman, Octoher, 1905, 128 la. 
 566. 
 
 Premature Suit. 
 
 An action against a fraternal society for benefits which are not 
 due according to the terms of its contract, is premature, and a denial 
 of liability by the society will not operate to mature the cause of 
 action. 
 
 Arrison vs. The Supreme Council of Mystic Toilers, January, 1906, 
 129 la. 303. 
 
 Forfeiture — Health Certificate — Advance Payments. 
 
 Where a member of a fraternal society had paid the assessments 
 before they became due and was in good standing, the society 
 cannot rightfully demand a health certificate as a condition of rein- 
 statement, and if one is furnished under such circumstances the 
 society cannot rel.y on any false statements contained therein for the 
 purpose of defeating an action to compel an assessment to pay a 
 loss under the certificate. It was held in this case that under the 
 testimony the statements in the health certificate were immaterial. 
 
 Arrison vs. The Supreme Council of Mystic Toilers, January, 1906, 
 129 la. 303. 
 
 Proofs of Death Waived by Denial of Liability. 
 
 Where a fraternal society denies liability on its certificate on the 
 ground of forfeiture, its requirements for proof of loss was held to 
 have been waived. 
 
 Arrison vs. The Supreme Council of Mystic Toilers, January, 1906, 
 129 la. 303.
 
 THE STATE OF IOWA 279 
 
 Change of Beneficiary. 
 
 Where a fraternal society is estopped to deny the validity of an 
 application for change of beneficiary, the beneficiary named in the 
 original certificate which is sought to be changed cannot raise ob- 
 jection to the change made. 
 
 Wandell vs. The Mystic Toilers, May, 1906, 130 la. 639. 
 
 Societies Not to Employ Paid Agents — Ultra Vires Contracts. 
 
 A fraternal society was organized under the laws of Iowa, one 
 provision of which provided that, "Such association shall not em- 
 ploy paid agents in soliciting and securing members except in the 
 organization of or building up of subordinate bodies or granting 
 members inducements to secure new members." The society in 
 question made an agreement that it would pay for, at the rate of 
 one dollar and a half for each thousand dollars of insurance written 
 for it in Marshalltown and vicinity. And further provided that an 
 applicant should pass medical examination, etc. 
 
 The court in passing upon the right of the society to make such 
 an agreement said, the term "organization" as here used refers to 
 subordinate bodies and not to that of the association itself, and the 
 evidence shows conclusively that whatever Sears did was in the 
 procuring of members for the organization of the association ; ap- 
 pellee suggested that Sears was a member and, therefore, the com- 
 pensation proposed was merely an inducement to a member to pro- 
 cure others. This is disposed of by the fact that there were no 
 members at the time the proposition was made, and the work done. 
 He undertook to do something which the statute prohibited the 
 association from employing him to do, and for this reason the con- 
 tract to compensate him was ultra vires, and therefore, not subject 
 to ratification. Where a plea of estoppel was interposed, on the 
 theory that as an agreement with the citizens of Marshalltown to 
 take insurance was delivered to the association, and by it retained, 
 and certificates of membership issued to those named therein, the 
 society ought not while obtaining the benefits be permitted to re- 
 pudiate the contract by virtue of which those benefits were obtained. 
 "The vice of this reasoning is that it ignores the fact that the
 
 280 FRATERNAL SOCIETY LAW 
 
 employment of Sears by the association Avas prohibited by statute, 
 with which he is presumed to have been familiar. One cannot enter 
 into an agreement expressly forbidden by statute and then by invok- 
 ing the plea of estoppel evade the laws of the State and reap the 
 fruits of such agreement as fully as though not prohibited." 
 
 First National Bank vs. Tlie Church Federation of America, January, 
 1906, 129 la. 268. 
 
 Vested Interests — Change of Beneficiary. 
 
 The beneficiary in a certificate issued by a fraternal society has 
 no vested interests therein during the life of the member, but is 
 sub.ject to the rules providing for a change of beneficiary, and the 
 beneficiary cannot ob.ject to any change actually made or to a failure 
 of a member to comply with any formalities in making an attempted 
 change, provided the application therefor was actually made and 
 acted upon by the society during the life of the member. 
 
 Wandell vs. The Mystic Toilers, May, 1906, 130 la. 639. 
 
 Change of Beneficiary — Estoppel. 
 
 Where the member executed the prescribed application for a 
 change of beneficiary and received the assurance from the local 
 representative to whom the same was delivered in accordance with 
 the rules, that its execution was proper and said application was 
 received and acted upon by the society. It was held, that the 
 society cannot thereafter contend that the execution of the applica- 
 tion was not in conformity with its rules, and therefore void. 
 
 Wandell vs. The Mystic Toilers, May, 1906, 130 la. 639. 
 
 Vested Rights — Amendment of Fundamental Laws. 
 
 On the (juestiou of vested rights the court in speaking of jiower 
 of the society to amend its fundamental laws said, if its powers are 
 limited by the articles of incorporation, that limitation is apt and 
 binding iiiulci- its governing jjower, but cannot destroy the rights 
 of its members or of their beneficiaries. It may regulate or
 
 THE STATE OF IOWA 281 
 
 control the exercise of these rights but it cannot destroy them. 
 By-laws of a business corporation are merely for its internal govern- 
 ment and management and cannot be adopted for the purpose of 
 changing the nature of business or of amending the charter or 
 defeating the members of their fundamental rights. These by-laws 
 so-called which fix defendant's rights and liabilities to its members 
 were and are of necessity fundamental laws, no matter what they 
 may be called, and in this case it so happens they are called "funda- 
 mental laws." 
 
 Van Adtem vs. Modern Brotherhood of America, July, 1906, 131 la. 
 232. 
 
 Contracts May Limit Time for Suing. 
 
 A contract of insurance may ignore the statute of limitations and 
 limit the time within which an action on the contract may be 
 brought, but the time within which action may be brought does not 
 commence to run until a cause of action accrues, and in the case at 
 bar it was held that the company should have a specified time in 
 accordance with the terms of the contract after the receipt of 
 proofs of loss to make payment, and therefore, that the cause of 
 action thereon did not accrue until the expiration of the specified 
 time. 
 
 Klisel vs. Mutual Reserve Life Insurance Company, June, 1906, 131 
 la. 54. 
 
 Trustees Not Authorized to Amend Charter. 
 
 The board of directors of a fraternal society were authorized by 
 its constitution to adopt such by-laws as may be necessary, but not 
 in conflict with its fundamental law, and in this case it was held 
 that the board had no power to amend or alter the charter or articles 
 of incorporation which were held to bp the fundamental law of the 
 society. 
 
 Van Adtem vs. Modern Brotherhood of America, July, 1906, 131 la. 
 232.
 
 282 FRATERNAL SOCIETY LAW 
 
 Void Amendments. 
 
 It was held that where the directors of a fraternal society may- 
 amend the by-laws by two-thirds vote that a provision not shown 
 to have been so adopted will be held invalid by the court. 
 
 Van Adtem vs. Modern Brotherhood of America, July, 1906, 131 la. 
 232. 
 
 Where the assessments on the members of a particular class are 
 made for the purpose of creating a fund for the payment of certifi- 
 cates on the death of members of that class, it was held that the dis- 
 continuance of the class did not affect the rights of the beneficiary, 
 nor entitle him to more than the proceeds of an assessment on all 
 the members of the particular class, the court said: 
 
 "The appellee concedes in argument that the deceased originally 
 became a member of the separate or woman's class; and that she 
 never was transferred to, or became a member of the general class, 
 the rights of the certificate holder, and the amount to be paid upon 
 the death of a member were fixed by the constitution and by-laws 
 of the ordei', which in the instant case provided for the payment 
 of such sum as would be realized from one assessment on the mem- 
 bership in good standing of the class to which Miss Kennedy be- 
 longed at the time of her death, and it is also conceded by the ap- 
 pellee that but for the action of the defendant providing for the 
 abandonment of the separate or woman's class, no greater sum 
 could be rightfully demanded upon the death of a member of that 
 class than such an assessment would produce. The theory of the 
 trial court and the theory of the appellee upon the trial seems to 
 have been that the separate class was discontinued and because 
 thereof, the defendant was lidiind to assess the members of the 
 general class for the payment of the certificate. In any view which 
 may be taken of the case pi-esented by the pleadings, this theory 
 is unsound, for when it is once admitted that the deceased never 
 became a member of the general class, as it has and must be ad- 
 mitted in this case, it is clear that the membership of such class 
 cannot be assessed for the payment of this certificate, nor has the 
 defendant the ])()wer to use the funds which have been derived from 
 assessments of sucli membership for such purpose.
 
 THE STATE OF IOWA ^83 
 
 "The members in good stiiiidiiiu nl' llie woman's class were the 
 only members of the order which conld lenjally l)e called upon for 
 an assessment in this ease." 
 
 The court cited in support of this contention the following: 
 
 Theunen vs. The Iowa Mutual Benefit Association, 101 Iowa 558; 
 Supreme Lodge, Knighits of Pythias vs. Knight, 117 Indiana 489, 20 
 
 N. B. Rep. 479, 3 L. R. A. 409; 
 Kennedy vs. Iowa Legion of Honor, April, 1904, 124 la. 66. 
 
 Beneficiary — Divorced Wife. 
 
 The statements in a fraternal society certificate, that the bene- 
 ficiary is the wife of the member, is descriptive of her relation to 
 him, and is not a provision, for payment to his widow in the case 
 at bar. 
 
 The contract provides for the payment of a sum upon the mem- 
 ber's death to "Florence H. White," related to the member a» 
 wife. The coui't discussed the Iowa statute, relating to fraternal 
 societies and the provisions thereof, with reference to beneficiaries 
 and said : 
 
 "When the certificate was issued the appellant was the wife of 
 A. J. White, and was one of the class of persons, designated by the 
 statute and by the laws of the order, as a competent beneficiary. 
 The statement that she was related to the member as wife, was 
 descriptive of her relation to him and did not in itself provide for 
 payment to his widow." 
 
 The court cites various authorities in support of this position and 
 proceeds : 
 
 "The statute provides only for the relationship that shall exist 
 when the certificate is issued and does not in any way or by fair 
 implication limit to those only who occupy such relations at the 
 time of death of the member. It was the evident intent of the legis- 
 lature to prohibit anything in the nature of gambling contracts, and 
 to so limit the beneficiaries as to accomplish such a result. In this 
 case the member had made no effort to change his beneficiary, 
 though he had the right to do so, and he knew that his former 
 wife was expressly named in his certificate." And the court closed 
 its opinion with the following:
 
 284 FRATERNAL SOCIETY LAW 
 
 "A married woman, named as beneficiary in a policy of insur- 
 ance on the life of her husband, is entitled to the proceeds of the 
 policy; notwithstanding a divorce was obtained by her before his 
 death." 
 
 White vs. The Brotherhood of American Yeoman, June, 1904, 124 la. 
 293. 
 
 Contract — Certificate Need Not Be Issued. 
 
 Where a proposition for insurance as contained in the application 
 is accepted, there is a contract of insurance made, though no policy 
 or certificate is issued, in the absence of any provision to the con- 
 trary. 
 
 Herring vs. American Insurance Co., April, 1904, 123 la. 533. 
 
 Warranty — False Answers In Application. 
 
 In an action on a fraternal society certificate, the evidence is con- 
 sidered and held to show that the answers of the assured in his 
 application, regarding his condition of health were substantially 
 false, Ihus rend6ring the contract void. 
 
 ; j 
 Smith vs. Supreme Lodge of the Knights and Ladies of the Golden 
 Precept, May, 1904, 123 la. 676. 
 
 Fraternal Societies Exempt From Insurance Laws. 
 
 The supreme court in construing section 6812 of the code, which 
 provides that tlie taking of health certificates made by its medical 
 examiner shall estop the company from denying that the assured 
 was in the condition of health represented therein, unless the same 
 was the result of fraud of the insured. Held, that it had no appli- 
 cation to fraternal societies, which were exempt from the provisions 
 of the statute relating to insurance companies. 
 
 Smith vs. Supreme Lodge of the Knights and Ladies of the Golden 
 Precept, May, 1904, 123 la. 676.
 
 THE STATE OF IOWA 285 
 
 Valid Contract Though Delivery Not Shown. 
 
 A policy of insurance issued to a resident citizen of Iowa, but 
 executed in New York State, and which provided for the payment 
 of premiums to be made at the home office in New York, was held 
 to be a valid contract, although it contained a provision that it 
 should become effective only on delivery, even though there was no 
 showing made of a delivery in Iowa. 
 
 Summit vs. United States Life Insurance Co., May, 1904, l^'i la. 681. 
 
 False Statement in Application — Knowledge of Agent Imputed to 
 Society. 
 
 A misstatement in an application for membership in a fraternal 
 accident society, to the effect that the applicant was a member of 
 another fraternal society was held to be immaterial, where it ap- 
 peared that the agent taking the application was fully advised of 
 the facts, and the knowledge of the agent in this case was imputed 
 to the society. 
 
 Delaney vs. Modern Accident Club, October, 1903, 121 la. 528. 
 
 Precedent Conditions — Agent's Agreements. 
 
 The constitution of a fraternal accident society, provided, as a 
 condition precedent to membership therein that the applicant must 
 be a member of another society The agent of the defendant ac- 
 cepted the plaintiff's application, knowing that this condition had 
 not then been performed, l)ut the same was subsequently done in 
 accordance with the understanding between the applicant and the 
 agent had at the time. 
 
 It was held that the transaction amounted to an agreement, that 
 the defendant's certificate should not be in force until the appli- 
 cant's compliance with the condition precedent, and that the agent 
 had authority to make the same. 
 
 Delaney vs. Modern Accident Club, October, 1903, 121 la. 528.
 
 286 FRATERNAL SOCIETY LAW 
 
 Contract — Advertising Which Induced Membership Not Part of. 
 
 lu an action to recover on a benefit certificate, a circular letter 
 which may have induced the contract, but is not referred to or 
 made a part of the certificate cannot be made the basis of recovery, 
 but should be stricken from the pleadings. 
 
 Sleight vs. Supreme Council of Mystic Toilers, October, 1903, 121 
 la. 724. 
 
 Forfeiture — Self -executing Provisions. 
 
 A provision in the constitution of a mutual benefit society, pro- 
 viding that a member failing to pay his assessment within fifteen 
 days after being notified by the secretary to do so, shall be sus- 
 pended, was held to be not a self-executing provision, and that a 
 member who had failed to pay within the time, was still in good 
 standing, when it was shown that no action had been taken to 
 suspend him. 
 
 Jelly vs. Muscatine City and County llutual Aid Soci., May, 1903, 
 120 Iowa 689. 
 
 Denial of Liability Waives Proofs of Loss. 
 
 Wliere an officer of a fraternal society has authority to waive 
 proofs of loss and lie writes a letter, in Avhich he says the claim is 
 not valid, — by reason of the suspension of the member, and makes 
 no objection to the failure to make proofs of loss, it was held that 
 the proofs of loss were waived. 
 
 Alexander vs. Grand Lods?e. A. U. O. AV., Feb., 1903, 119 la. 519. 
 
 Interest Allowable on Claim. 
 
 Where a fraternal society contends that it is not liable on a cer- 
 tificate issued, legal interest should be allowed, though the jilaintiff 
 is a non-resident, and no tender could be made within tlie State, 
 in cases where ]ial)ility was fixed by the conrt. 
 
 Alexander vs. Gran<l Lodge. A. U. O. W., Feb.. 1903, 119 la. .''119.
 
 THE STATt: OF IOWA 287 
 
 Presumptions — Burden of Proof. 
 
 Proof of the genuineness of the signature of the deceased member 
 to a letter written, direeting a ehange of his beneficiary, raises a 
 presumption, that the same was voluntarily made and signed, with 
 the kniiwledge of its contents, and one asserting undue influence 
 njinn till' mcnilier, lias the liiirden (if pi'oof. 
 
 Walts & Clark vs. Grand Lodge Iowa Workman, October, 1902, 11<S 
 la. 216. 
 
 Impaired Health — Insanity From. 
 
 Age, impaired physical vigor and at time faulty and irrational 
 talk, stupor and sluggishness, the result of disease and drugs are 
 held not to be sufficient to establish permanent insanity or imply 
 such mental unsoundness ns to make it impossible for a member to 
 change his beneficiary. 
 
 Walts & Clark vs. Grand Lodge Iowa Workman, October, 1902, 118 
 la. 216. 
 
 Answers in Application Construed Liberally in Favor of Applicant. 
 
 In a member's application for insurance, he was asked, "Has any 
 company ever declined to grant insurance on your life?" To which 
 question he answered in the negative. 
 
 The evidence showed that on a similar application for membership 
 in a fraternal societj^ he was asked: "Have you ever been rejected 
 for life insurance? if so, state when, naming the company or order?" 
 To which he answered: "Yes. Modern Woodmen of America, one 
 year ago." 
 
 It was held that since there is a clear distinction between life 
 insurance companies and fraternal societies, that the question asked 
 by the defendant of the member in the case at bar, referred only to 
 insurance companies, and that the member's answer was not false. 
 
 It was held further that under such circumstances it was proper 
 to exclude as immaterial, the testimony of the defendants medical
 
 288 FRATERNAL SOCIETY LAW 
 
 examiner, that h£ would not have approved the application had he 
 known of the member's rejection by the fraternal society. 
 
 Newton vs. Southwestern Mutual Life Association, April, 1902, 116 
 la. 311. 
 
 Members Must Exhaust Remedies in Society. 
 
 Where the constitution of a fraternal society, provided, that if a 
 member should consider that an injustice had been done him. by 
 any action of the society, that he might appeal to the supreme coun- 
 cil, it was held, that the action by the society in suspending a mem- 
 ber will not be reviewed by the courts when no such appeal was 
 taken by the agrieved member. 
 
 Finnerty vs. Supreme Council, Catliolic Knights of America, January, 
 1902, 115 Iowa, 398. 
 
 Beneficiary Has No Vested Interest in Certificate. 
 
 The beneficiarj^ named in a fraternal society's certificate is not 
 exempted from the operation of the rule, providing that no a.ction 
 shall be begun by any member in a civil case until he has exhausted 
 his remedies within the society, and it was held that since she had 
 no vested interest in the certificate until the death of the member; 
 and that he had failed to exhaust his remedies in the society, and 
 thereby lost rights that he otherwise would have had; that the bene- 
 ficiary took only what was left. 
 
 Finnerty vs. Supreme Council, Catholic Knights of America, January, 
 1902, 115 Iowa, 398. 
 
 Change of Beneficiary. 
 
 A member of a fraternal society designated his wife and sister as 
 beneficiaries, and on his death bed he requested by letter that his 
 wife be made the sole beneficiary. The letter was not received by 
 the society until aftei- Ihc member's deatli, wluMi it was returned 
 withniit .-my ;icti(ui luiviiig been taken tliei'eon. Tlic liv-laws of the
 
 THE STATE OF IOWA 289 
 
 society prescril)ed tli;it the fhiuiu'c of hi'iicficiai'v of :\ iiirnilicr cduIiI 
 be made by his certificate being surrendered by the member and 
 upon his executing a request for the change, such request to be 
 executed in the presence of the clerk of the local camp. It was 
 held tiuit the change of beneficiary could l)e made only in the mode 
 described by the by-laws and that the attempt of the member to 
 make a change in the manner indicated was ineffectual. 
 
 Modern Woodmen of America vs. Little. May, 1901. 114 Iowa, 109. 
 
 Construction of Terms of Designation of Beneficiary. 
 
 Where a policy of insurance provided that the company would 
 pay the amount of the insurance to "H, " wife of "M, " his exec- 
 utors, administrators or assigns, the word "His," was held to refer 
 to "H" the member and not to the wife. 
 
 Haerther vs. Mohr, October, 1901, 114 la, 636. 
 
 Copy of Application to be Attached to Certificate. 
 
 Under acts of the 18th General Assembly, Code 211, Section 2, 
 requiring an application for insurance to be attached to the policy, 
 and precluding the company or association from asserting the mis- 
 representations of the applicant unless so attached; in case of failure 
 to do so was held that a fraternal society was not entitled to intro- 
 duce an application not attached to a certifieate, and that the statute 
 in question applied to fraternal societies. 
 
 Stork vs. Supreme Lodge Knights of Pythias, December, 1900, 113 
 Iowa 724. 
 
 Conditions Precedent to Liability. 
 
 A benefit certificate in a fraternal society provided that liability 
 of the society for payment thereunder should not begin until the 
 member named therein should have paid certain fees, amounting to 
 $6.40, and had been obligated and introduced into the society in 
 due form, and had receiveii his certificate and that these should be 
 conditions precedent to the payment of IxMiefits, in the case of the 
 19
 
 290 FRATERNAL SOCIETY LAW 
 
 member's death. The society's agent iuduced the deceased to apply 
 for membership, and received from him $3.00. Under the agent's 
 agreement with the society, he was to retain $5.00 as his personal 
 compensation, and the physician, making the examination of the 
 applicant was to have one dollar. The deceased's application for 
 membei'ship was accepted, and his certificate issued and counter- 
 signed by the soliciting agent, who endorsed thereon, "He has made 
 all payments required and has been introduced as a member of 
 this camp." And such agent Avas present at its delivery, and had 
 authority' to obligate members. It was held that since there was 
 three dollars paid, which was sufficient to cover the fees, outside 
 of those due the soliciting agent, and the examining ph.ysician, it will 
 be deemed that the agent waived payment of the fees, and that the 
 deceased had completed his membership in the society, so as to 
 entitle his beneficiaries to the amount of the certificate. 
 
 Healy vs. Sovereign Camp, Woodmen of the World, October, 1900, 
 112 Iowa 137. 
 
 Warranty — Statements by Applicant Previous to Making Applica- 
 tion, 
 
 In an action on a certificate, one of the defenses was a breach of 
 warranty, in that the member falsely represented that he never had 
 heart disease. The only evidence that he ever had this disease was 
 that ten months prior to his application he had suft'ered an attack 
 of la grippe, and he later stated that he wanted to arrange his 
 affairs, as he had heart trouble seriously and might die at any time. 
 At the time of his application, the member was examined b.v a 
 medical examiner, for the society and declared by him- to be a good 
 risk and liis intimate friends testified that the insured was not 
 known to have any heart trouble. It was held that the evidence 
 was not sufficient to establish a breach of warranty or fraud, in 
 that the insured had heart disease prior to his ap])lication for insur- 
 ance. ' 
 
 Metzradt vs. Modern Brotherhood of America. December. 1900. 112 
 Iowa 522.
 
 THE STATE OF IOWA 291 
 
 Suicide — Coroner's Verdict. 
 
 The verdict ol' the coroiiei-'s jury was admissible in evidence, 
 which showed that the meiulier died by his own liand; a lelter was 
 also iutrotiuced, written by the memher to his wife, which was fiunid 
 in the room with his dead botly. This letter was read to tiie coro- 
 ner's jury, aud according to the testimony of members of that jury, 
 it being in German and being translated to them its contents indi- 
 cated that tlie member was about to suicide. The letter was in evi- 
 dence at the time of trial, liut no expressions of the kind were found 
 in it. It was held that this evidence was not sufficient to overcome 
 the i)resumption against suicide. 
 
 Metzradt vs. Modern Brotherhood of America, December. lyiKl. 112 
 Iowa 522. 
 
 Waiver of Laws by Society. 
 
 Where an assessment life insurance association insured a person 
 on an a|)plicatioii for re-in.surance, without medical examination, as 
 re(|uii'e(l i)y its by-laws, it was held that he (•()uhl not resist pay- 
 ment of assessments for such reason as the corjtoration had the 
 power to waive the ])rovisions of its laws. 
 
 Watts vs. Equitable Life Association. Ai)ril l:', 1900. Ill Iowa 90. 
 
 ■•j 
 Consolidation of Societies — Risks Assumed. 
 
 Where a mutual insurance associati(ui transferred its membership 
 to another association, under an aiireement that the latter should 
 carry out the insurance contracts of the former, such an arrange- 
 ment was held not to be an agreement to insure within the pro- 
 visions of the code prohibiting such an association from insuring a 
 lierson over sixty-five years of age, and hence the fact that a mem- 
 ber of the association, whose membership was so transferred, was 
 over sixty-five years of age at the date of the agreement, did not 
 release the latter association from liability on his certificate. 
 
 Cathcart & Wetherell vs. Equitable Miitual Life Association. May. 
 1900, 111 Iowa 471.
 
 292 FRATERNAL SOCIETY LAW 
 
 Ultra Vires Contract — Consolidation. 
 
 Where a mutual insurance association received a transfer of all 
 the members and property of another association and collected 
 assessments from them, as its members, under a contract to perform 
 the former association's obligations, and provided that the mortuary 
 fund contributed by the members who should thereafter join the con- 
 solidated association, should insure to all of the members, it was 
 held, that the association was estopped from levying an assessment 
 on the members joining after the consolidation to pay beneficiaries 
 of a member of the former association, on the ground that the con- 
 tract was ultra vires. 
 
 Cathcart & Wetherell vs. Equitable Mutual Life Association. May, 
 1900, 111 Iowa 471. 
 
 Rights of Old Members in Consolidated Societies. 
 
 A mutual insurance association, which had issued certificates 
 to its members requiring it to levy a per capita assessment at 
 a member's death, and apply the proceeds not exceeding .i<2,000 to 
 the member's beneficiaries, transferred its membership to another 
 association, under an agreement that its transferred members .should 
 be entitled to full rights as members of the new society. It was held 
 that the beneficiaries of the transferred members were not entitled 
 to compel the defendant to apply property transferred to it in trust 
 to carry out the terms of the agreement, in the absence of proof 
 that such aiijilication was necessary to jiay their claim. 
 
 Cathcart & Wetherell vs. Equitable Mutual Life Association. May, 
 1900, 111 Iowa 471. 
 
 Privileged Communications. 
 
 As to privileged conununications of physicians, and communica- 
 tions between husband and wife, see 
 
 Shunian vs. Supreme Lodge Knishts of Honor. February, 1900, 110 
 Iowa 4S0.
 
 THE STATE OF IOWA 293 
 
 Change of Beneficiary. 
 
 A c'lijiii^'c (if bciicticMiH'y ii;iiiiril in a cert ilii/alc can l)c made only 
 in the manner ami form proviileii lor h\ \\<v laws of Ww society. 
 
 Sluiman vs. Grand Lodge A. O. U. W., April. ]9U0, 110 Iowa 642. 
 
 Change of Beneficiary Must be in Manner Prescribed by the Laws, 
 
 A memlier has no leeal rieht to ciianee liis l)enefieiary, except as 
 the law may prescribe, where lie has held his certificate for more 
 than fifteen year.s, and on the day before his death, changes the 
 beneficiary, but not in the manner jirovided for nnder the laws. 
 Equity will not treat the chane-e as havin<i- been leii'ally made, where 
 no reason is shown, why the change might not have been made 
 prior to such time in the precise manner required by the tei'ms of 
 the contract. 
 
 Sluiman vs. Grand Lodge A. O. U. W., April, 1900, 110 Iowa 642. 
 
 Proofs of Death Waived by Denial of Liability. 
 
 Proofs of death are waived by the society, denying liability by 
 reason of the charge that the member was suspended. 
 
 Parsons vs. Grand Lodge A. O. U. W., April, 1899, 108 Iowa, 6. 
 
 Presumption That Beneficiary is Qualified. 
 
 On the issue whether the claimant under a certificate is legally 
 the beneficiary, or whether she is the legal wife of the member, the 
 court said that it will be presumed that the member obtained a 
 divorce from a former wife before he married the claimant. 
 
 Parsons vs. Grand Lodge A. 0. U. W., April, 1899, 108 Iowa, 6. 
 
 Legal Heirs Includes Illegitimate Children. 
 
 A member of a fraternal society had designated as his beneficiary
 
 294 FKATBRXAL SOCIETY LAM' 
 
 his legal heirs. It w ;is held that illegitimate ehihlren were included 
 •within this term. 
 
 Brown vs. Iowa Legion of Honor, January, 1S99, 107 Iowa, 439. 
 
 Change of Beneficiary— Claimants Cannot Complain of Waiver of 
 Laws. 
 
 While a l)y-law of a fraternal society provides the manner in 
 which a change of beneficiary may be made a member's failure to 
 comply with same, cannot be taken advantage of by persons claim- 
 ing the benefit, yet such claimant may question whether a change in 
 beneficiary has actually been made. 
 
 Depee vs. Grand Lodge A. 0. U. W., October. 189S. 106 Iowa 747. 
 
 After-enacted Laws — Reserve Power. 
 
 After-enacted by-laws were held not to affect a contract already 
 made, when it did not appear that the power to amend the laws had 
 been preserved. 
 
 Carnes vs. The Iowa State Travelling Men's Ass'n, October. 1898, 
 106 Iowa 281. 
 
 Suicide — Death From Overdose of Poison. 
 
 Whei-c the death of ;i jiieiiiber is caused by his taking more mor- 
 l)liiiie than he intended, it was held that this was not a death by 
 suicide. 
 
 Carnes vs. The Iowa State Travelling Men's Ass'n. October. 1S9S. 
 106 Iowa 281. 
 
 Forfeitures, Waivers by Agents. 
 
 On the question of agency and the liability of the society for the ' 
 conduct and course of dealing of an agent with the members, the 
 Supreme Court of Iowa in a well considered ease, and after citing 
 many authorities, announces its conclusions in the followine: Ian- 
 
 \
 
 THE STATE OF IOWA 295 
 
 guage: "It must be borne in mind that no matter how stringent 
 the condition upon which the continued validity of the contract of 
 insurance is made to depend, the company or association is under no 
 obligation to enforce it. If, then, such company or association itself 
 or by its agent (and it can act only by agent) adopts a method of 
 business by which premiums or assessments are habitually collected 
 and received for a period of several days after they become delin- 
 quent according to the strict letter of the contract, no forfeiture or 
 suspension is declared thereon, but such members are recognized 
 as being at all times in good standing, and by this course of business 
 members have reason fairly to eoncliule that the insurer does not 
 insist upon literal compliance witli the tei-ms of the contract in this 
 respect : then it will not be heard to deny the good standing of a 
 member who has depended upon the custom observed by an agent, 
 and has paid or offered to pay, his assessments in accordance there- 
 with." 
 
 Trotter vs. Grand Lodge of Iowa, Legion of Honor, December, 1906, 
 Supreme Court of Iowa, 109 N. W. 1099. 
 
 Waivers Depends Upon Effect on Opposite Party. 
 
 The question of waiver and Avhether it will be found in any par- 
 ticular case depends "not upon the intention of the parties against 
 whom it is asserted, but on the effect which his conduct or course of 
 business has had i^pon the other party." 
 
 Trotter vs. Grand Lodge of Iowa, Legion of Honor, December, 1906, 
 Supreme Court of Iowa, 109 N. W. 1099. 
 
 Absence of Collecting Officer. 
 
 Where a collecting officer is absent from his home at the time when 
 assessments are payable, it is held that under such circumstances the 
 members are entitled to a reasonable time after the return of the 
 collecting officer to make payments. 
 
 Trotter vs. Grand Lodge of Iowa, Legion of Honor, December, 1906, 
 Supreme Court of Iowa, 109 N. W. 1099.
 
 296 FRATERNAL SOCIETY LAW 
 
 Agency — What Determines. 
 
 On the question of the agency of a collecting officer, and his 
 power to bind the society, the Court said: "There is no magic in 
 the mere name of a thing, and if an act done or performed by one 
 person or party for or in behalf of another is in its essential nature 
 one of agency, then the former is the agent of the latter. This prin- 
 ciple has been often enforced as between the insurer and the insured, 
 and the person appointed or designated to receive payment of 
 prmiums and assessments held to be the agent of the insurer, even 
 where, by the terms of the contract, it is provided that he shall be 
 regarded as the agent of the insured." 
 
 Trotter vs. Grand Lodge of Iowa, Legion of Honor, December. 1906, 
 Supreme Court of Iowa, 109 N. W. 1099. 
 
 Agency in Collecting Assessments — Course of Dealing. 
 
 A member of a society was a banker and the collecting officer car- 
 ried his account, as collector, in this member's bank for many 
 years. When the collector got ready to remit the amount of his col- 
 lection he would procure from the bank exchange for the amount 
 to be remitted, including the amount due from the banker, and the 
 banker would have transferred from his account to the collector's 
 account on the books of the bank, the amount of the banker's pay- 
 ment. The Court held that under such facts a forfeiture of the 
 banker's certificate could not be asserted when it appeared that the 
 banker had died without having actually made the payment due to 
 the collector. 
 
 Wood vs. Iowa Legion of Honor, Jan.. 1907, Supreme Court of Iowa, 
 110 N. W. 164. 
 
 Warranty as to Age. 
 
 The statement of an ai)]ilieant in his application as to his age 
 was held to be a warranty, and if false rendered the certificate void, 
 
 Krause vs. Modern Woodmen of America, Feb., 1907, Supreme Court 
 of Iowa, no N. W. 452.
 
 THE STATE OF IOWA 297 
 
 Local Officer Agent of Society. 
 
 The Scribe oi' tin- local Court rcfjuircd to collt'ct moneys and dues 
 from the members of the Court and to remit same to the society was 
 held to bo the agent of the society and not the agent of the local 
 court, though the laws of the soeiet\- so deelared. and though the 
 local court elects such Scribe. 
 
 Davidson vs. Supreme Tribe of Ben Hur, March, 1907, Supreme 
 Court of Iowa, 111 N. W. 46. 
 
 Waiver of Laws by Local Officers Allowed. 
 
 The laws of a society provided that waiver by receiving payment 
 of dues should not be deemed a waiver save upon the knowledge of 
 the ca.se by the society ; but this provision was held inapplicable in 
 view of the conduct of the local collecting ofSeer in making his 
 collection from members long after thej- were due. The Court 
 reviewed the authorities and adhered to the doctrine announced in 
 Trotter vs. Grand Lodge (Iowa) 109, N. W. 1099. 
 
 Davidson vs. Supreme Tribe of Ben Hur, March, 1907, 111 N. W. 46. 
 
 Beneficiary — Divorced Wife Competent. 
 
 A member's certificate was issued payable to his wife who sub- 
 sequently was divorced from him. No change of designation was 
 made and at the member's death, the wife claimed the amount of 
 benefit. The laws of the society jjrovided that a beneficiary should 
 "be one or more members of his family or related to or dependent 
 upon him." The Court held after reviewing the authorities that the 
 divorced wife was entitled to the benefit. 
 
 Schmidt vs. Hauer, May, 1907, Supreme Court of Iowa. Ill N. W. 
 966. 
 
 Conditions Precedent to Liability. 
 
 The laws of a society required that application for membership 
 should be submitted to the subordinate lodge and if applicants were
 
 298 FliATERNAL SOCIETY LAW 
 
 elected by the lodge they should be examined by the medical ex- 
 aminer, and that if the applications were approved by the society 
 the certificate should be forwarded to the local lodge which would 
 deliver the same to the. applicants after the applicant's adoption 
 into the lodge. It was held that the adoption of a candidate was a 
 condition precedent to membership, imless such condition was 
 waived. 
 
 Bruner vs. Brotherhood of American Yeomen, May, 1907, Supreme 
 Court of Iowa, 111 N. W. 977. 
 
 Actions at Law Proper on a Certain Indefinite Contract. 
 
 A certificate entitled a named beneficiary to participate in the 
 mortuary fund to the amount of one full assessment on all members 
 in good standing, not to exceed $2,000. Action was brought to re- 
 cover on a certificate by the beneficiary of a deceased member, such 
 action being in law ; and the defense was urged that the action 
 should be brought in equity. The Court denied this contention and 
 held that the beneficiary might recover in an action at law. 
 
 Van Norman vs. Modern Brotherhood of America, May, 1907, 
 Supreme Court of Iowa, 111 N. W. 992. 
 
 i 
 
 'i
 
 THE STATE OE KANSAS 299 
 
 THE 
 
 STATE OF KANSAS. 
 
 CHAPTER 17. 
 
 (General Statutes of 19(11. C'hap. ;")(). Articles f. and S.) 
 
 Societies for Payment of Death Benefits. 
 
 Section 3568. § 214a. A fraternal beneficiary association is hereby 
 declared to be such a corporation, society or voluntary association 
 of individuals, formed or organized into a lodge system with ritual- 
 istic form of work, or composed of members of an order or society 
 having a lodge system with ritualistic form of work, or of such 
 members, their wives, widows, or daughters, as shall make provision 
 for the payment of benefits in case of death, sickness, or temporary 
 or i)ermanent disability, and shall be carried on for the sole benefit 
 of its members and their beneficiaries, and not for profit. Every 
 fraternal beneficiary association as herein defined shall have a repre- 
 sentative form of government, with provisions for corporate meet- 
 ings, and, subject to compliance with its constitution and laws, 
 shall make provision for the payment of benefits in case of death, 
 and may make provision for the payment of benefits in case of sick- 
 ness, temporary or permanent disability, either as a result of disease, 
 accident, or old age : Provided, The period of life at which payment 
 of physical disability benefits on account of old age commences shall 
 not be under seventy years. The ftuul from which the payment of 
 the benefits of such association shall be made, and the fund from 
 which the expenses of such association shall be defrayed, shall be 
 derived from assessments, premiums or dues collected from its 
 members, and interest accumulations thereon. The payment of
 
 300 FRATERNAL SOCIETY LAW 
 
 death benefits of such an association shall be to the families, heirs, 
 blood relatives, affianced husband or affianced wife of, or to persons 
 dependent upon the members thereof. Such associations may create, 
 maintain and disburse a reserve or emergency fund in accordance 
 with their constitution or by-laws. Such association shall be gov- 
 erned by this act, and shall be exempt from the provisions of other 
 insurance laws of this State, and no law hereafter passed shall apply 
 to them unless they be expressly designated therein. |L. 1898, ch. 
 23. ;; 1, as amended by L. 1899, ch. 147. § 1 ; May 15.] 
 
 Existing Societies. 
 
 Section 3569. § 215. All such associations coming within the de- 
 scription as set forth in Section 1 of this act, organized under the 
 laws of this or any other State, province, or territory, and now doing 
 business in this State, ma.y continue such business, provided that they 
 shall show to the satisfaction of the superintendent of insurance 
 that their plan of organization is in keeping with Section 1 of this 
 act. All such societies shall hereafter be governed by this act, (and 
 shall hereafter comply with the provisions of this act regulating 
 annual reports and the designation of the sujierintendeut of insur- 
 aiu-e as the person upon whom process may be served as hereinafter 
 provided.) [L. 1898, ch. 23, § 2; March 1.] 
 
 Foreign Associations. 
 
 Section 3570. ij 216. Any such association coming within the 
 description as set forth in Section 1 of this act, organized under 
 the laws of any other State, province, or territory, and not now doing 
 business in this State, shall be admitted to do business within this 
 State when it shall have filed with the superintendent of insurance 
 a duly certified copy of its charter and articles of association, and a 
 copy of its constitution and laws, certified to by its secretary or 
 corresjionding officer, and a statement of its Inisiness during the pre- 
 ceding year, in the form jirovided for in Section 4 of this act, to- 
 gether with an api)ointnieiit of the superintendent of insurance of 
 this State as a person upon whom process ma.v be served as herein- 
 after provided : And provided, That such association shall be shown 
 
 I
 
 THE STATE OF KANSAS P,Ol 
 
 to he ;m11i(ii-i/.('tl (ci ilo hiisincss in tlic Stale, province or tei'ritory 
 ill which it is iucorjiorated or organized, in case the hiws of such 
 State, province or territory shall provide for such aiithoi'i/ation ; 
 and ill ease tiie laws of such State, province or territory do not pro- 
 vide for an\- formal authorization to dn business on the pai't of any 
 siicli association, then such association shall he shown to he conduct- 
 ing its luisiuess in accordance with the provisions of this act. For all 
 the purposes of this act, the superintendent of insurance of this 
 State may personally, or hy some person to he designated by him. 
 examine into the condition, affairs, character and business methods, 
 accounts, books and investments of any such association at its home 
 office, which examination shall be at the expense of tlie jissociation : 
 Provided, That sucli expense shall not exceed the sum of fifty dol- 
 lars and necessary traveling expenses; and such e::amination may 
 be repeated whenever deemed necessary by the sui)eriiiti'ndent of in- 
 surance. No such association organized under the laws of any otlier 
 State, territory or province shall be admitted to do business in this 
 State unless it is shown that one assessment u])on its members, at 
 the current rates, will produce sufficient funds to pay a claim, under 
 its largest certificate, in full. [Id., § 3.] 
 
 Statement to be Filed. 
 
 Section 3571. § 217. Every such association doing business in 
 this State shall, on or before the 1st day of Jfarch of each year, make 
 and tile with the sup(M-intendent of insurance of this State a report 
 of its affairs and operations during the year ending on the 31st day 
 of December immediately preceding, which annual report shall be 
 in lieu of all other reports required by any other law. A fee of 
 twenty dollars shall accomiiany such annual report. Such reports 
 shall be upon blank forms to be provided by the superintendent of 
 insurance, and shall be verified ixnder oatli by the duly authorized 
 olificers of such association, and shall be published, or the substance 
 thereof, in the annual re]iort of the superintendent of insurance 
 under a separate part, entitled "fraternal l)enefieiary associations," 
 and shall contain answers to the following questions: 
 
 1st. Number of certificates issued during the year, or members 
 admitted.
 
 302 FRATERNAL SOCIETY LAW 
 
 2d. Amount of indemnity affected thereby. 
 
 3d. Number of losses or benefit liabilities incurred. 
 
 4th. Number of losses or benefit liabilities paid. 
 
 5th. The amount received from each assessment for the year. 
 
 6th. Total amount paid members, beneficiaries, legal represen- 
 tatives, or heirs. 
 
 7th. Number and kind of claims for which assessments have been 
 made. 
 
 Sth. Number aud kind of claims compromised or resisted, and 
 brief statement of reasons. 
 
 9th. Does association charge annual or other periodical dues or 
 admission fees? 
 
 10th. How much on each one thousand dollars annually or per 
 capita, as the case may be? 
 
 11th. Total amount received, from what source, and the dis- 
 position thereof. 
 
 12th. Total amount of salaries paid to officers. 
 
 13th. Does association guarantee, in its certificates, fixed amounts 
 to be paid regardless of amount realized from assessments, dues, ad- 
 mission fees, and donations? 
 
 14th. If so, state amount guaranteed, and the security for such 
 guaranty. 
 
 15th. Has the association a reserve fund? 
 
 16th. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested? 
 
 17th. Has the association nuire than one class? 
 
 18th. If so. how many, and the amount of indemnity in each? 
 
 lf)th. Number of members in each class. 
 
 2(lth. If voluntary, so state, and give the date of organization. 
 
 21st. If organized under the laws of this State, under what law 
 and what tinu>, giving chapter and year and date of passage of 
 the act? 
 
 22d. If organized under the laws of any other State, province, 
 or territory, state such fact and the date of organization, giving 
 chapter and year, date of passage of the act. 
 
 23d. Number of certificates of beneficiary membership lapsed 
 (luriiiu- the \'ear. 
 
 I
 
 THE STATE OF KANSAS 303 
 
 2-lth. Nninhcr in foroe at hciiiiiiiing and v\)d of year; it' more 
 than one class, number in each class. 
 
 25th. Names and addresses of its i)rcsident, secretary, and treas- 
 urer, or corresponding officers. 
 
 The superintendent of insurance is authorized and empowered 
 to address any additional inquiries to any such association, in rela- 
 tion to its doings or condition, or any other matter connected with 
 its transactions relative to tiic i)iisiness contemplated by this act, 
 and such officers of such association as the superintendent of insur- 
 ance may require shall promptly reply, in writing, under oath, to 
 all such inquiries. [Id., § 4.] 
 
 Service of Process. 
 
 Section 3572. § 218. Each such association now doing or here- 
 after admitted to do business within this State, and not having its 
 principal office within this State, and not being organized under the 
 laws of this State, shall appoint, in writing, the superintendent of 
 insurance and his successors in office to be its true and lawful at- 
 torney, upon whom all lawful process in any action or proceeding 
 against it may be served ; and in such writing shall agree that any 
 lawful process against it which is served on said attorney shall be 
 of the same legal force and validity as if served iipon the associa- 
 tion, and that the authority shall continue in force so long as any 
 liability remains outstanding in this State. Copies of such certifi- 
 cate, certified by said superintendent of insurance, shall be deemed 
 sufficient evidence thereof, and shall be admitted in evidence with 
 the same force and effect as the original thereof might be admitted. 
 Service upon such attorney shall be deemed sufficient service upon 
 such association. When legal process against any such association 
 is served upon said superintendent of insurance he shall immediately 
 notify the association of such service by letter, prepaid, and directed 
 to its secretary or corresponding officer, and shall, within two days 
 after such service, forward in the same manner a copy of the 
 process served on him to such officer. The plaintiff' in such process 
 so served shall pay to the superintendent of insurance, at the time 
 of such service, a fee of two dollars and fifty cents, which shall be 
 recovered by him as a part of the taxable costs, if he prevails in
 
 304 FRATERNAL SOCIETY LAW 
 
 the suit. Such superintendent shall keep a suitable record-book, in 
 ■which he shall docket everj^ action commenced against such associa- 
 tions or corporations, the time when commenced, the date and man- 
 ner of service ; also, the date of the judgment, its amount and costs, 
 and the date of payment thereof, which shall be certified from time 
 to time by the clerk of the court in which such action was brought. 
 [Id., § 5.] 
 
 Permit. 
 
 Section 3573. § 219. The superintendent of insurance of this 
 State shall, upon the application of any association now organized 
 and having the right to do business within this State as provided by 
 this act, issue to such association a permit in writing, authorizing 
 such association to do business within the State, for which certifi- 
 cate and all proceedings in connection therewith such association 
 shall paj' to said superintendent of insurance a fee of twenty-five 
 dollars; and any association of the character described in Section 1 
 of this act, organized under any other law of this State and now 
 doing business therein, may reincorporate under the provisions of 
 this act by resolution of their governing body, certified to the 
 siiperintendent of insurance. Upon receipt of such resolution, so 
 certified, and the payment of a fee of twenty-five dollars, said 
 superintendent of insurance shall issue to said corporation a certifi- 
 cate of authority to transact business in accordance with the pro- 
 visions of this act, and thereafter such associations shall be deemed 
 fully incorporated under the provisions of this aet. [Id., § 6.] 
 
 How Organized. 
 
 Section 3574. § 220. Seven or more persons, citizens of the United 
 States, and a majority of whom are citizens of this State, who may 
 desire to form a fraternal beneficiary association, as defined in Sec- 
 tion 1 of this act. may make, sign, seal and acknowledge before 
 some officer authorized to take acknowledgments of deeds, a cer- 
 tificate in writing, in which shall be stated: (a) The names and 
 places of residence of the applicants, (b) Proposed corporate name 
 of the association, whieli shall iio( loo closely rescmlilc llie name of
 
 THE STATE OF KASSAS 305 
 
 any similar associalidii. (c,) Tln' object <ii' pui'posr lor wliirh I Ik; 
 incorporatiou is sought, including the plan of oi'sanization and 
 method of condnctino' the business, including provision for corporate 
 meetings for tile adoi)tion or amendment of articles of association 
 and by-laws and the election of officers, to be held at least biennially, 
 (d) The location ol' the ])rincipal office, which must be within this 
 State, (e) Number of directors or similar governing officers, and 
 their names and residence, who shall manage the business of the 
 corporation for the first year, or until the next corporate meeting. 
 AVhen said certificate has been dul.v signed and acknowledged l),y 
 the proposed incorporators it shall be tiled with the superintendent 
 of insurance of this State, and in case the superintendent of insur- 
 ance shall find that its provisions are in accordance with Section 1 
 of this act, he shall issne to said incorporators duplicate copies of 
 said application, with his certificate indorsed thereon that said cor- 
 poration has been dul.y authorized to coneluct the business provided 
 for in its said application, according to the provisions of this act. 
 When one of said certified copies shall have been filed for record in 
 the office of the register of deeds of the county in which the prin- 
 cipal office shall have been established, the remaining copy shall 
 constitute the articles of association of said corporation: Provided, 
 That said superintendent of insurance shall not issue said certified 
 copies until said incorporators have paid him a fee of twenty-five 
 dollars and shall have satisfied him that there have been obtained 
 bona fide applications for membership and insnrance in said pro- 
 posed association from at least five hundred applicants, and that a 
 benefit fund had been established, and cash deposited therein to an 
 amount at least ecpial to twice the amount of the lowest certificate 
 proposed by said association, and the proposed by-laws, benefit cer- 
 tificate and applieaticm have been submitted to said superintendent 
 of insura7ice and found to be not in conflict with this act. [Id.. §7.] 
 
 Shall be Body Corporate. 
 
 Section 3575. § 221. A fraternal assessment order organized 
 
 under the provisions of this chapter shall be a body corporate and 
 
 politic by the name stated in the certificate of organization, and b.v 
 
 that name they and their successors may have succession, and shall 
 
 20
 
 306 FNATERNAL ttOCIETY LAW 
 
 be persons in law, capable of suing and being sued, and may have 
 power to make and enforce contracts in relation to the Inisiness of 
 their corporation ; maj- have and use a common seal, and may change 
 or alter the same at pleasure; and they and their successors in their 
 corporate name shall, in law, be capable of taking, purchasing, hold- 
 ing and disposing of real and personal estate for the purpose of 
 their corporation ; may, by its board of officers, trustees or represen- 
 tatives composing its governing body, make by-laws not inconsistent 
 with the constitution and laws of this State or of the United States, 
 and such by-laws shall jjrovide for annual or biennial meetings and 
 provide the manner of filling vacancies in the board of officers ; and 
 whenever officers or trustees are elected, a certificate under the seal 
 of the corj)oration, giving name and residence and term of officers 
 elected, which term of officers elected shall not exceed four years, 
 shall l)e forwarded, duly certified, to the superintendent of insurance. 
 The governing body shall also fix the compensation of all executive 
 officers of the corporation in full compensation of services; and it 
 shall not be lawful for any officer to take or receive any of the 
 money or funds of such corporation in excess of the anKuuit of 
 salary so fixed, and such salarv shall not be increased during the 
 term for which officers are elected. It shall be unlawful for an 
 officer of such corporation to use or expend any portion of the mortu- 
 ary fund or emergency fund for expense purposes, and any officer 
 who shall authorize or use any portion of such funds for expense 
 purposes shall forfeit his office and become personally liable to the 
 cor|)()ratiiiii for all sums so illegally exiM:>nded. [Id.. §8.] 
 
 Certificates — When Issued. 
 
 Section 3576. S 222. No association incorporated under the pro- 
 visions of this act shall issue any certificate of membership or benefit 
 certificate until its benefit fund shall contain an amount, in cash, at 
 least equal to twice the amount of its smallest proposed death benefit 
 certificate ; and if at the incorporation of any such association its 
 proposed officers shall contribute any sums to such benefit fund, they 
 may be afterward reimbursed from a siiecial expense fund, which 
 may be contributed for that ])urpose by the members. No such 
 association shall issue beiu'fit certificates except for the smallest
 
 THE STATE OF KANSAS 307 
 
 amount jn-ovidi'il lor by its laws, unlil ils membership shall be such 
 that one assessment upon each will produce sufficient funds to pay 
 its proposed next largest benefit certificate in full ; a similar restric- 
 tion shall apply until the number of its membership shall authorize 
 the issuance of its maximum certificate. [Id., § 9.] 
 
 May Amend Articles. 
 
 .Section 3577. § 2'2'S. Any such a.ssociation incorporated under 
 the provisions of this act ma.y amend its articles of association in the 
 manner provided for in its by-laws, and may provide for the meeting 
 of its legislative or governing body in any other State, province or 
 territory wherein such association shall have subordinate bodies, and 
 all business transacted at such meetings shall be valid in all respects 
 as if such meetings were held within this State: and where the laws 
 of any such association provide for the election of its officers by 
 votes to be cast in its subordinate bodies, the votes so cast in its 
 subordinate bodies in any other State, province, or Territory shall 
 be valid as if east within this State ; and whenever any such asso- 
 ciation shall amend its laws it shall be the duty of its secretary or 
 corresponding officer to file with the superintendent of insurance 
 of this State a certified copy of all such amendments within thirty 
 days after the adjournment of the nu^eting at which such amend- 
 ments were made. | Id., § 10.] 
 
 Benefits Exempt. 
 
 Section 3578. S 2:24. The money or other benefit, charity, relief 
 or aid to lie paid, provided or rendered by any association author- 
 ized to do business vuider this act and the reserve or emergency fund 
 of such association shall not be liable to attachment by trustee, gar- 
 nishee, or other process, and shall not be seized, taken, appropriated 
 or apjilied, by any legal or equitable process or l)y oiieration of law, 
 to i)ay any debt ov liability of a certificate-holder or of any bene- 
 ficiary named in the certificate, or any person who may have a right 
 thereunder, and shall be exempt from all taxes. [Id., § 11, as 
 amended bv L. 1901, ch. 6(3 S 1 : .Alav 7. 1
 
 308 FRATERNAL SOCIETY LAW 
 
 Fraud Punished. 
 
 Section 3579. § 225. Any person, officer, member or examining 
 phj'sician who shall knowingly make any false or fraudulent state- 
 ment or representation, in or with reference to any application for 
 membership or medical examination, or for the i)urpose of obtain- 
 ing any money or benefit in any association transacting business 
 under this act, shall be guilty of a misdemeanor, and upon convic- 
 tion shall be punished by a fine of not less than one hundred dollars 
 nor more than five hundred dollars, or imprisonment in the county 
 jail for not less than thirty days nor more than one year, or Ijoth, 
 in the discretion of the court; and any pei'son who shall knowinsily 
 make a false statement of any material fact or thing in a sworn 
 statement as to the death or disability of a certificate-holder in any 
 such association, for the purpose of prociu-ing payment of a benefit 
 named in the certificate of such holdi'i-. ami any person who shall 
 knowingly make any false statement in any verified report or dec- 
 laration under oatli, required or antliorized by this act. shall bi- 
 guilty of perjury, and shall be proceeded against and punished as 
 provided by the statiites of this State in relation to the crime of 
 perjury. [Id., § 12.] 
 
 Penalties for Neglect. 
 
 Section .3580. § 226. Any association authorized to do business 
 under this act refusing or neglecting to make the reports provided 
 for in this act, or which shall exceed its powers, or shall conduct its 
 business fraudulently, or which shall take steps to remove any suit 
 commenced against it in any of the courts in this State to any of the 
 courts of the T^nited State, or which shall fail to ])ay any judgment 
 rendered against it in any coiii-t in this State, una|)pealed from, 
 within six1y days of the rendition of such judgment, or which shall 
 fail to comply with any of the provisions of this act, shall be ex- 
 cluded from doing business, within this State. Whenever it shall 
 come to the knowledge of the superintendent of insurance that any 
 association authorized to do business under the ])rovisi()ns cif this 
 act has so conducted its business as to render it liable to exclusion 
 as herein provided, he shall give notice in writing to the attorney-
 
 TlIK tiTATli OF KAXt<AS 309 
 
 jjciiiT.-il, wliii sluill iiii.iii'ilialcly f(iiiiiii('iice an action in one of tlie 
 disli-ict courts oi this State to enjoin such association fi'oni soliciting 
 any new business within this State. No association doinu' business 
 uniler this act shall have authoi-ity to solicit or initiate new members 
 after notice of the commencement of such injunction proceedings 
 by the attorney-general, until sneh time as such injunction proceed- 
 ings shall be finally disi)osed of. If, pending such proceedings, the 
 occasion thereof shall he removed aii<l tln' costs of such ])rocee(ling-s 
 paid by such association, the proceedings may be dismissed by the 
 attorney-general on recommendation of the superintendent of insur- 
 ance, and thereupon said association shall be allowed to again tran.s- 
 act business in this State. In case of -a perpetual injunction allowed, 
 under the provisions of this section, against an association incorpora- 
 ted under this act or other law of Kansas, such iujiuietion shall be 
 sufficient cause for the appointment of a receiver by any court of 
 competent jurisdiction, to wind up the affairs of such association. 
 No injunction shall be granted by any court in this State against 
 any association authorized to do business under this act, except 
 on application of the attorney-general, at the request of the super- 
 intendent of insurance. [Id., § 13.] 
 
 Penalty. 
 
 Section 3581. § 227. Any person who shall act as officer, agent, 
 solicitor, or otherwise, within this State, for any association which 
 shall have failed, neglected or refused to comply with or shall have 
 violated any of the provisions of this act, or shall have failed or 
 neglected to procure from the superintendent of insurance authority 
 to transact within this State the business provided for in this act, 
 or at any time when such association shall have been notified of the 
 pending of injunction proceedings b.y the attorney-general against 
 it, shall be deemed guilty of a misdemeanor, and on conviction 
 thereof shall be pimiished by a fine of not less than twenty-five dol- 
 lars or more than two hundred dollars, or by imprisonment in the 
 count.y jail not less than thirt.v days nor more than one year, or 
 by both such fine and imprisonment, in the discretion of the court. 
 [Id., ^ 14.]
 
 3J0 FRATERNAL SOCIETY LAW 
 
 Powers of Superintendent. 
 
 Section 3582. §228. None of the provisions of this act shall be 
 construed as vesting discretionary power in the superintendent of 
 insurance, but his construction of and decisions under any section of 
 this act shall stand and be binding on all parties in interest until 
 revei'sed by a court of competent jurisdiction in an action in the 
 nature of an action in mandamus, to be prosecuted at his or its 
 own cost, by any person or association dissenting from such con- 
 struction or decision. [Id.. § 15.] 
 
 Not Apply. 
 
 Section 3583. S 229. Nothing herein contained shall apply to 
 grand or subordinate lodges of any fraternal society wherein the 
 only benefits provided for are sick or funeral benefits not to exceed 
 two hundred dollars on any one case, nor which limits its member- 
 ship to a particulai- trade or calling, or the employee of a particular 
 person, firm or corporation, nor to any class of United States gov- 
 eriiiiient employees, formed exclusively for their own or their fami- 
 lies' protection against sickness, accident, or death. [L. 1898, eh. 23, 
 § 16, as amended by L. 1899, ch. 148, § 1; May 15.] 
 
 Eepeal. 
 
 Section 3584. §230. A]\ laws and parts of laws inconsistent 
 with this act are hereby repealed. [Id., § 17.] 
 
 Agents' License. 
 
 Section •3589. § 235. That any fraternal association, mutual life 
 insurance company, mutual fire insurance company, mutual accident 
 insurance comjiany. ami inuliial building and loan association, organ- 
 ized and existing \uider the laws of the State of Kansas, and the 
 agents and representatives of any such association or company, act- 
 ing in the capacit}' of such agent and representatives, shall be 
 exenipl from the payment of any license tax imposed b.y any city, 
 when the cliarter of such assixfiation or company shows i1 was organ-
 
 THE STATE OF KANSAS oil 
 
 ized for mutn;il puriiiiscs ;iiid not for i)rofit. [L. 1901, ch. 261, § 1; 
 Mar«h 15.] 
 
 Beginning of Liability — Conditions Precedent. 
 
 The constitution of ;i frnternal society i^rovided that "no bene- 
 ficiary certificate shall be or become effective and in force until 
 executed by the' supreme president and supreme secretary and coun- 
 tersigned by the president and secretary of the local council to which 
 the member may belong, and the conditions of the certificate accepted 
 by the member to whom it is issued in writing on his certificate ; and 
 it was held that a monthly assessment paid at the time of making 
 an application by the applicant cannot be applied before such con- 
 stitutional provision of the society was complied with, said pro- 
 vision of the constitution being held effectual for the jjurpose of 
 determining when liability under the contract began. 
 
 The Triple Tie Benefit Association vs. Wood, February 10th, 1906, 
 73 Kans. 124; S4 Pac. 565. 
 
 Limited Time to Appeal Suits. 
 
 ' ^ ' I 
 The fraternal beneficiary act of Kansas provides in Sec. 13 (§ 3580) 
 
 that: 
 
 "Any association authorized to do business under this act re- 
 fusing or neglecting to make the reports provided for in this act, 
 or which shall exceed it^ powers, or sliall conduct its business fraudu- 
 lently, or which shall take steps to remove any suit commenced 
 against it in any of the courts of this State to any of the courts of 
 the United States, or which shall fail to pay any judgment rendered 
 against it in any court in this State, nnappealed from, within sixty 
 days from the rendition of snch .judgment, or which shall fail to 
 comply with any of the provisions of this act, shall be excluded from 
 doing business within this State." 
 
 Other litigants in this State under the statutes of the State are 
 given one year within which to perfect appeals from judgments. 
 The provision above quoted was upheld by the court, which declared 
 that fraternal societies under said provision, in view of rights of 
 other litigants, was not (b_»nied the equal protection of the laws.
 
 312 FRATERNAL SOCIETY LAW 
 
 The court approved the doetrine in the case of Modern Woodmen 
 vs. Heath, 71 Kans. 148 ; 79 Pac. 1091. 
 
 The Sons and Daughters of Justice vs. Swift, March 10th, 1906, 
 73 Kans. 255; 84 Pac. 984. 
 
 Parole Evidence Received to Vary Contract. 
 
 lu a suit to avoid a written contract of life insurance and recover 
 premiums paid thereon, on the ground that the plaintiff had no 
 opportunity to read the contract, and was induced to execute the 
 same bj' false and fraudulent repj^sentations, the rule that parole 
 evidence will not be i-eceived of conversations between the contract- 
 ing parties prior to the signing of the contract,' for the purpose 
 of disputing, altering, ov changing the terms of the contract was 
 held not to apply. 
 
 The State Life Insurance Co. vs. Johnson, May 12, 1906, 73 Kans. 
 567; 85 Pac. 597. 
 
 Notice of Powers of Societies Imputed. 
 
 Every person' dealing with a fraternal incorporated society or with 
 its obligations is bound to take notice of the power possessed by 
 such coi-poration, and for the purpose for which it was created. 
 
 Scott vs. Banlvers' Union of the World, May 12th, 1906, 73 Kans. 
 575; 85 Pac. 604. ' 
 
 Corporate Powers of Society — Limitations. 
 
 An incorjjorated fraternal society, organized under a charter 
 
 which does not expressly confer the power to issue promissory notes, 
 
 has no implied power to do so, when such authority is unnecessary 
 
 to enable the society to exercise the powers expressly given it to 
 
 accomiilisli the purpose of its creation. 
 
 For ;i full discussion of the powers of fraternal societies see this 
 very interesting and iiniinrtant case. 
 
 Scott vs. Banlcers' Union of the World, May 12th, 1906, 73 Kans. 
 575; 85 Pac. 604.
 
 THE STATE OF KANSAS 313 
 
 After-enacted Laws — Prohibited Occupations. 
 
 The adiiptioii by a fraternal society of a h\-law declariiii;- that 
 no person shall be admitted or retained as a member who is engaged 
 in the sale of intoxicating liquors, does not, in the absence of a 
 specific provision to that effect, avoid the beneficiary certificate of a 
 member who is already engaged in that business in a State where it 
 is not unlawful, and who continues therein, and against whom no 
 action is taken. 
 
 Grand Lodge A. O. U. W. vs. Haddock, October 7th, 1905, 72 Kans. 
 35; 82 Pac. 583. 
 
 Forfeiture for Entering Prohibited Occupation — Amended By-laws. 
 
 A b.y-law adopted by a fraternal society wliich jn'ovides that any 
 member who shall, after the date of its adoption, have entered into 
 or who shall thereafter enter into the bitsiness of selling intoxicating 
 liquors shall stand suspended from his rights to participate in the 
 beneficiary fund, and that his certificate shall thereby become void 
 from the date of his so engaging in such occupation, does not in 
 terms apply to the ease of a member who, prior to that time, so en- 
 gaged in such business and who remains in it continuously thereafter, 
 and it will be held by the court not to effect such member. 
 
 Grand Lodge A. U. W. vs. Haddock, October 7th, 1905, 72 Kans. 
 35; 82 Pac. 583. 
 
 Pleading Precedent Conditions Required. 
 
 In an action to recover on an insurance contract the plaintiff must 
 plead and prove the performance of all precedent conditions, or the 
 waiver of the same by the insurer. Where performance of such con- 
 ditions is pleaded, a general denial puts in issue the same. 
 
 Shawnee Fire Ins. Co. vs. Knerr, Dec. 9th, 1905, 72 Kansas 385; 83 
 Pac. 611. 
 
 Presumption of Death from Absence. 
 
 In order that a presumption that a person once shown to have been
 
 314 FRATERNAL .SOCIETY LAW 
 
 alive continues to live may be overcome by the presumption of death 
 arising from seven years' unexplained absence from home or place 
 of residence, there must be a lack of information concerning the 
 absentee on the part of those likely to hear from him, after diligent 
 inquiry. 
 
 Modern Woodmen of America vs. Gerdom, December 9th, 1905, 72 
 Kans. 391; 82 Pac. 1100. 
 
 Disappearance — Presumptions — Absence for Seven Years, 
 
 In passing upon a disajapearance case the court in speaking upon 
 the duty of the plaintiff said : 
 
 "All those persons who in the ordinary course of events would 
 likely receive tidings if the party were alive, whether members of 
 his family or not, should be interrogated, and the result of the in- 
 quiry should be given in e\idence, or the testimony of the parties 
 themselves should be produced at the trial. Any word received 
 by any one who might naturally be exjjected to hear at any time 
 within the seven-year period destroys the presumption of death, and 
 unless the resources of this field of information have been exhausted, 
 an allegation of death cannot be successfully sustained." 
 
 Modern Woodmen of America vs. Gerdom, December 9th, 1905, 72 
 Kans. 391; 82 Pac. 1100. 
 
 Time to Perfect Appeals from Judgments. 
 
 Litigants generall\- within the State of Kansas have one year 
 within which to appeal from .judgments rendered against them, but 
 under the fraternal beneficiary act fraternal societies have only sixty 
 days. In pa.ssing upon this discrimination the court said : 
 
 "The association is a foreign corporation, and the legislatnrt> lias 
 the right to pre.scribe the terms upon which it and other like corpora- 
 tions may do business in Kansas. It did prescribe the condition that 
 all judgments nnappealed from within sixty days after rendition 
 must be paid. In effect, it said to such associations: 'You are given 
 sixty days witliin which to take an appeal, and if it be not taken 
 within that time the end of the litigation has been reached.' It is
 
 THE HTATE OF KANf^AS 315 
 
 lidt ciKiujili tliJit steps he liilccn tnwnrd perfecting iiti ;i|)pi';il, liiil the 
 apjieal must Ix' completed, jiiul it' lluit he not clone within the sixty 
 days, the judgment is tiiud, and tlu' only alternative is payment. 
 We cannot suppose that the h'gislature intended to treat the judg- 
 ment as a tinality and compel its payuu-nt and sii'terwards allow a 
 legal combat over a controversy that had been ended. 
 
 "Payment of the judgment was in fact made, but it was done in 
 obedience to a demand of the superintendent of insurance, and under 
 protest. No doubt the superintendent of insurance would have exer- 
 cised the power reposed in him by statute to compel i)ayment if it 
 had been refused, and in a sense the payment was involuntary. The 
 coercion, however, was by force of the law itself. It commanded 
 the payment which was made. By coming into the State, and avail- 
 ing itself of the advantages afforded by the statute the association 
 impliedly agreed to comply with the statute and to pay all judgments 
 from which it did not appeal within sixty days." 
 
 Modern Woodmen vs. Heath, Marcli 11, 1905. 71 Kans. 148; 79 Pac. 
 1091. 
 
 Forfeiture — Custom of Receiving Payments. 
 
 Where a member of a fraternal society offers to pay dues assessed 
 against him and is ready and willing to pay to the officer whose 
 duty it is to receive them, and such officer, doubting his power in 
 the premises, refused to accept the offered payment, the society 
 cannot declare a forfeiture, nor will it be permitted to assert a for- 
 feiture for the non-payment of assessments which were not made 
 as reipiired by its by-laws, where it is shown that the society had 
 adopted the custom and course of dealing, which led the members 
 honestly to believe that the assessments might be paid and received 
 at times other than those stated in the by-laws. 
 
 Foresters of America vs. Hollis. October 8. 1904. 70 Kans. 71; 78 
 Pac. 160. 
 
 Beneficiary — Ineligibility Not Raised in Pleadings. 
 
 A member obtained a certificate on his life payable to his stepson. 
 His stepson brought suit to recover upon the certificate after the
 
 31g FRATERXAL SOCIETY LAW 
 
 death of the member. There was no issue raised in the pleadings 
 as to the right of tlie stepson to take the benefit. His right was ques- 
 tioned for the first time by the society in requesting an instruction on 
 the subject to be given by the court to the .jury. The court refused to 
 give the instruction aslied, error was assigned, and the supreme 
 court said that the trial court rightly refused to submit the ques- 
 tion to the jury, as it should have been put in issue by the pleadings. 
 
 Foresters of America vs. Hollls, October 8th, 1904, 70 Kans. 71; 
 78 Pac. 160. 
 
 Change of Beneficiary. 
 
 A fraternal society by-law provided that "No change in beneficiary 
 shall be effective until the delivery of a new certificate, and until 
 such time, the old certificate shall be lield to be in force." A mem- 
 ber of a society executed a surrender clause in due form «u the 
 back of his certificate, and changed the name of his beneficiary 
 from his wife to his brother. The certificate was then mailed to the 
 head clerk in another State, who had tlie power to make the change 
 and issue the new certificate. Before its receipt by this clerk, how- 
 ever, the member died. No new certificate was is.sued. In an action 
 brought by the brother against the society to recover the amount, 
 it was held that he could not recover as the change of beneficiary 
 had not taken place. 
 
 Kemper vs. Modern Woodmen of America, November 5th, 1904, 
 70 Kansas 119; 78 Pac. 452. 
 
 Agency — Assistant to Collecting Officer — Estoppel. 
 
 Tlie l)y-]a\vs of a fraternal society provided that subordinate 
 lodges, so desiring, might have an assistant clerk. For two months, 
 both in the presence and absence of its clerk, a mendjer of the sub- 
 ordinate lodge habitually received and receipted for dues and assess- 
 ments in the name of the clerk, in regular lodge meetings, and with 
 the knowledge and consent of the subordinate lodge. During the 
 period f)f the month, in the absence of the clerk, this member per- 
 formed the hitter's duties in taking down and recording minutes
 
 THE STATE OF KANSAS 317 
 
 of the meetings, eollecthig assessments and dues, entering payments 
 made by members on the books of the lodge, making reports to the 
 Supreme clerk, all with the knowledge and acquiescence of the sub- 
 ordinate lodge. This same member assisted a new clerk, who sub- 
 sequently took office in making up the reports required and in per- 
 forming other duties. Held that such conduct was sufficient to 
 constitute such member jui assistant clerk, so that payment of dues 
 and assessments made to such assistant clerk by members would 
 bind the soeiet.y whether such payments finalls' reached the supreme 
 body or not. 
 
 Woodman Circle vs. Stretton, February 6th, 1904. 68 Kansas, 403 
 75 Pac. 477. 
 
 Incontestability — Suicide. 
 
 A contract in a fraternal society provided that it should be incon- 
 testable after two years from its date. The member who held this 
 contract, which was payable to his wife, committed suicide after 
 the two-year period had elapsed. The society refused to pay, alleg- 
 ing that the member suicided. The court held that the defense of 
 suicide could not be set up in view of said incontestable clause. 
 
 Court of Honor vs. Updegraff, February, 1904, 68 Kansas 474; 75 
 Pac. 477. 
 
 Resort to Civil Courts — Duty of Members to Exhaust Remedies in 
 Society. 
 
 A member of a fraternal society who is denied rights and benefits 
 to which he claims to be entitled under its laws must avail himself 
 of the right of appeal provided by the laws of the society for the 
 redress of grievances before he can resort to the civil courts. A 
 failure to seek such method of review by the holder of a benefit 
 certificate, whose tender of monthly dues was refused b.y the secre- 
 tary, and who thereby became suspended from the society, will defeat 
 an action brought against the society on such licnefit certificate b.v 
 the member's beiu'fieiarv after the member's death.
 
 318 FRATERNAL SOCIETY LAW 
 
 Modern Woodmen of America vs. Taylor, March 7tli, 1903, 67 Kansas 
 368: 71 Par. 806. 
 
 Agency of Local Secretary. 
 
 Where the laws of a fraternal society authorize the local secretary 
 to collect dues and assessments of the members, and also provides 
 that the society shall be liable for benefits upon payment of dues 
 by its members to the local secretary, and where the certificate of 
 membership recognizes the authority of the local secretary to receive 
 payments from the members, and further provides that the failure 
 to make payments to hini shall avoid the certificate, such local secre- 
 tary may be held to be deemed to be the agent of the society. 
 
 Fraternal Aid Assn. vs. Powers, July 10th, 1903, 67 Kansas 420; 
 73 Pac. 65. 
 
 Surplus Credits of Member in Hands of Society. 
 
 Where by reason of excess payments made by members to the 
 local secretary for dues and assessments, money is in the hands of 
 the secretary, to the credit of such member, more than is necessary 
 to meet claims which have accrued, it should be applied to subse- 
 quent and aceruing dues and assessments, and the nunuber will not 
 be deemed to be in default so long as such excess is sufficient to meet 
 the accruing claims of the society against the member. 
 
 Fraternal Aid Association vs. Powers. July 10th. 1903, 67 Kansas 
 420, 73 Pac, 65. 
 
 Powers Under Charter — Consolidation — Ultra Vires Contracts, 
 
 A fr;itcrii;d society has only such powers as are expressly con- 
 ferred upon il liy its charter, or such as are necessarily im]ilied 
 therefrom, to enable it to carry out the objects of its creation. The 
 exercise of all other powers by it are ultra vires and void. A con- 
 tract of consolidation between two societies whereby on(> society 
 is to p;iy all death losses of another, which have alread\- accrued, 
 in cniisidcration of the transfer to the one of the membershii) and
 
 THE HTATE OF KAPHAS 319 
 
 funds of sui'li (itlior soeic'ty is liclil Id lir iiiihiwfiil jind iiltrji vires. 
 
 Bankers' Union vs. Crawfonl. .Inly imh, 1903, 67 Kas. 449; 73 Pac. 79. 
 
 Ultra Vires Agreements — Estoppel. 
 
 A society which hris entered into .-in ;iL;ri'i'nicnt to consolidate 
 with nnother, assuming- the payment of death losses which have 
 ;drcMd\- accrued is not estopped to deny tlic ultra vires character of 
 sncli assumption by reason of the fact that large numbers of mem- 
 bers of the latter society were induced to become members of the 
 former; nor by the further fact that, by the resignation of the 
 officers of the latter society, it was ])laced in the liands of the officers 
 named by those who were managing the former. 
 
 Bankers' Union vs. Crawford. July Kitli, 1903, 67 Kansas 449; 73 Pac. 
 79. 
 
 Situs — Conflict of Jurisdictions — Void Procedure. 
 
 A beneficiary's certificate issued by a fraternal society, suable 
 in ilissouri. in favor of minor children domiciled in Missouri, has 
 its legal situs at their domicil. and is an asset in the hands of a 
 guardian appointed there, and the presence of the paper in another 
 State does not authorize the appointment of a guardian for the 
 minors in such other State. A judgment of a probate court appoint- 
 ing a guardian under such circumstances is void for want of ."juris- 
 diction, and may be attacked collaterally in an action brought by 
 persons claiming under such appointment. 
 
 The Modern Woodmen of America vs. Hester, January 10th, 1903, 
 66 Kansas 129; 71 Pac. 279. 
 
 Proofs of Death Waived by Refusal of Blanks. 
 
 Where the by-laws of a fraternal society provide that proofs of 
 death must be made on blanks furnished by its officers, and where 
 such officers upon reasonable demand refuse to furnish such blanks, 
 the society cannot take advantage from the failure of a claimant 
 to make such proofs of death.
 
 320 FRATERNAL SOCIETY LAW 
 
 Ancient Order of Pyramids vs. Dralie & Morgan, April 11th, 1903, 
 66 Kansas 538; 72 Vac. 239. 
 
 Local Secretary Agent of Supreme Body. 
 
 Where the by-laws of a fraternal society require a member to 
 make payments of stated assessments to the local secretary, and no 
 other method is afforded b>' which he can make such payments, a 
 provision of such by-laws which, in substance, declares the local 
 secretary to be the agent of the member, and denies the member 
 the benefit of a payment made to such secretary unless he actually 
 forwards the amount received to the general treasurer, is held to 
 be invalid and will not be given effect in court. 
 
 Ancient Order of Pyramids vs. Drake & Morgan. April 11th, 1903, 
 66 Kansas 53S; 72 Pac. 239. 
 
 Taxation Exemptions. 
 
 A fraternal society conducted for the sole mutual benefit of its 
 members, and for the purpose of providing a fund, by their joint 
 contribution made up from stated dues from such members, out of 
 which special amounts were to be paid upon the death of members 
 occurring, such payments to be made to their designated bene- 
 ficiaries, was held not to be such a benevolent association within 
 the meaning of the Kansas laws, as entitles it to have its property 
 exempted from taxation. 
 
 National Council K. & L. of Security vs. Philliiis. December. 1901, 
 63 Kansas 799; 66 Pacific 1011. 
 
 Funds Invested for an Income Subject to Taxation. 
 
 Funds belonging to a charitaltle or benevolent society which are 
 invested by it for the purpose of deriving an income therefrom, are 
 held not to be exempt from the burden of taxation. 
 
 National Council K. & L. of Security vs. Phillips. December, 1901, 
 63 Kansas 809: 66 Pacific 1014.
 
 THE STATE OF KANSAS 321 
 
 Service of Suits upon Commissioner. 
 
 The fact that a foreign life insurance company had at one time 
 transacted business in a State under a license, issued by the super- 
 intendent of insurance, and that it had filed in his office as required 
 by the statute its "authorized consent, irrevocable" to the insti- 
 tution of suits against it in the courts of said State and the issuance 
 of summons against it directed to the superintendent of insurance, 
 was held not to subject it to suit in said State on a policy of insur- 
 ance wholly executed in another State, if, prior to the issuance of 
 such policy, it had withdrawn or been expelled from the first State 
 mentioned and entirely ceased to do business therein. 
 
 Mutual Reserve Fund Life Assn. vs. Boyer, June 9th, 1900, 62 Kansas 
 31; 61 Pac. 387. 
 
 Time Within Which Suit Must be Brought — After-enacted Laws. 
 
 A benefit certificate issued by a fraternal society provided that 
 no suit brought thereon should be enforced unless such suit should be 
 brought within one year from the death of the member to whom the 
 certificate was issued. In an action upon such certificate in which 
 the petition was filed before the expiration of the year, but summons 
 was not issued and served until after the expiration of the year, it 
 was held that the suit had not been brought within the time pre- 
 scribed by the terms of the certificate, and it was also held in the 
 same case that a subsequently enacted by-law made after the issuance 
 of the said certificate, and which provided a new form of certificate 
 in which the time of bringing suit thereon was extended could not 
 be followed in this State without it appeared that the by-law was 
 . intended to be retroactive. 
 
 Modern Woodmen of America vs. Bauersfeld. December Sth. 1900, 
 62 Kansas 340; 62 Pacific 1,012. 
 
 Courts Take Judicial Notice of Mortality Tables. 
 
 The Supreme Court of Kansas held that it would take judicial 
 cognizance of the tables of life expectancy and employed the follow- 
 ing language in passing upon this question: 
 21
 
 322 fbaternaIj society law 
 
 "At the trial plaintifif read the tables of life expectancy as pub- 
 lished in the Encyclopedia Britannica, to which objection was made. 
 "We are quite well satisfied that courts are entitled to take judicial 
 notice of the standard tables of life expectancy and may allow them 
 to be read in evidence to the jury. Erb vs. Propritz, 59 Kansas 264, 
 52 Pacific 87 ; Donaldson vs. Mississii)pi & Missouri Railroad Com- 
 pany, IS Iowa 280; Seheffler vs. Minneapolis & St. Louis Railway 
 Company. 32 Minnesota 518, 21 N. W. 711 ; Abell vs. Pennsylvania 
 Mutual Life Insurance Company, 18 West Virginia 400; Gordon, 
 Rankin & Company vs. Tweedy. 74 Alabama 232. These tables con- 
 sist of summarized statistical information on a matter of general 
 interest. They are, therefore, impartial and disinterested, and they 
 are so nearly in the nature of exact science or mathematical demon- 
 stration as to render them creditable and valuable. Consequently 
 the imiform practice of the courts is to receive them in evidence. If 
 the court judicially know the standard tables of life's expectancy 
 when presented to their observation, they may assure their knowl- 
 edge by reference to publications containing them. The only easily 
 accessible authentic publications of such tables is to be found in 
 the standard encyclopedias like the Brittanica. The courts recog- 
 nize such publications as being- authentic and in general use, and, 
 therefore, thej- receive them in evidence as to matters contained 
 therein of which judicial knowledge is possessed. ' ' 
 
 A. T. & S. F. Ry. Co. vs. Ryan, April 6th, 1901, 62 Kansas 682, at p. 
 690; 64 Pac. 603. 
 
 Pleading Offer of Compromise Admits Something Due. 
 
 An offer was made by the insurance company to compromise a 
 claim made against it for a sum smaller tlian the amount claimed, 
 and an averment of the same made in the answer of the insurance 
 company to the suit; was held to waive a defense that the insured 
 was not entitled to anything under the claim made. 
 
 The Wilfley Casualty Co. vs. Sheppard, January 6th, 1900, 61 Kansas 
 351; .59 Pacific 651.
 
 TBE STATE OF KANSAS 323 
 
 Suicide — Sane or Insane. 
 
 It is coiii|)('li'iit for piirtics in coiiti-iicting as to life insurance to 
 provide tluit self-destruction by the insured, whether sane or insane, 
 shall avoid the contract, and a provision to this effect in a contract 
 covers a case of intentional self-destruction b\- one who understood 
 the physical luiture and consequences of an act which caused his 
 death, although his mind was so far impaired that he was not con- 
 scious of the moral quality or the consequences of such act. The 
 facts in this case were stipulated and were stated by the court in the 
 following language : 
 
 "The agreed facts showed a ease of intentional self-destruction, 
 and that while he did not understand the moral character nf his 
 acts, he had sufficient intelligence as to what the physical end and 
 consequences of the same would be." The court further said "We 
 are not required to determine the effect of such an exception where 
 the insured was wholly bereft of reason that he did not understand 
 the natural result of his acts, nor what woi;ld be the effect, if, in 
 addition to this exception, the contract contained a clause making 
 it incontestable after a stated time and the death had occurred after 
 that time." 
 
 Hart vs. Modern Woodmen of Amerira and Hart vs. Knights of 
 the Maccabees, July Sth, 1899, 60 Kansas 67S. 
 
 Disappearance — Proof of Death — Not Furnished in Time. 
 
 The plaintiffs who were beneficiaries named in a certificate of 
 membershii) in a fraternal soeiet.v alleged and established the death 
 of a member as having occurred in 1883, by evidence that he dis- 
 appeared from all his friends and acquaintances at that time and 
 that he had since never been heard from. Proof of his death, which 
 by the terms of the certificate was a condition precedent to any 
 liability of the society to pay, was not furnished until Jiily, 1894. 
 It was held that this was an unreasonable delay, and that the statute 
 of limitation barred the action. The courts held that the proof of 
 death should have been made in 1889. 
 
 Harrison vs. Masonic Mutual Benefit Assn.. January, 189S, 59 Kan- 
 sas 29.
 
 324 FRATERNAL SOCIETY LAW 
 
 An Unincorporated Subordinate Lodge Not a Partnership. 
 
 The fiuaucial officer of a local lodge of the Knights of Pythias was 
 charged with having embezzled the funds of the lodge. He claimed 
 that the local lodge was a partnership, that the taking of its funds 
 was not embezzlement, but merely conversion of partnership funds 
 by one partner. The coui-t held that the local lodge was not a part- 
 nership, that it was a fraternal society, and that fraternal societies 
 are not partnerships. 
 
 State of Kansas vs. Campbell, March 5th, 1898, 59 Kansas 246. 
 
 Provisions Limiting Time for Suing. 
 
 The contract of insurance provided that no "Legal proceedings 
 for recovery hereunder shall not be brought iintil after three months 
 from the date of filing proof at the company's home office, or brought 
 at all unless begun within six months from the time when the right 
 of action shall accrue." This provision was con.strued and upheld. 
 
 Provident Standard Life & Accident Assn. vs. Davis, July 8th, 1S9S, 
 59 Kansas 521. 
 
 Resort to Civil Coiu-ts Before Exhausting Remedies in Society. 
 
 The general laws of a fraternal society, which, by the use of 
 permissive words, allow an appeal from the decision of an officer 
 of the society to whom the claimant of a death or disability benefit 
 is required in the first instance to prosecute his claim, but which 
 do not obligate liim to appeal from an adverse decision as a condition 
 precedent to an action upon his certificate, was itpheld, and to pre- 
 clude the claimant from maintaining an action in the courts for the 
 recovery of his loss, without his having taken such appeal. In 
 this case at bar the entire doctrine of the right of resort to 
 civil courts without exhausting the judicial procedure ju'ovided in 
 fraternal societies, as discussed in the case of Order of Select 
 Friends vs. Raymond, 57 Kansas 647, was followed. 
 
 Supreme Lodge Order Select Friends vs. Dey, June 5th, 1S97, 58 
 Kansas, 283.
 
 THE STATE OF KANSAS 3'25 
 
 Benefit Funds Exempt From Creditor's Claims. 
 
 The (>x('inpti(iii l:nvs of the Slali' "f K:nis;is wci'c held to extend 
 to the funds eolleeted \>y liciiclieiaries n])()n certificates issued by 
 fraternal societies, the proceeds of wliieli were tk'ixisited in banks: 
 the Court said that same could not be reached by process of garnish- 
 ment by a creditor to enforce payment of a judgment against a 
 beneficiary. 
 
 Emmert vs. Schmidt, January, 1902, 65 Kansas, 31; 68 Pac. 1072. 
 
 Immaterial Answers Made Material by Warranty. 
 
 When, in a contract of insurance, the application of the insured 
 is made the basis for. and a part of the contract, and where it is 
 stipulated and warranted that the answers of the applicant to ques- 
 tions propounded in the application are literally true, and it is also 
 stipulated that if any such answers be found not literally true, the 
 contract shall become absolutely null and void, the validity of the 
 contract depends on the truthfulness of the answers, and not on the 
 materiality of the answers. The Court held that the parties having 
 made the answers of the insured material that the contract is 
 avoided, if such answers be found untrue, whether they would have 
 otherwise been material was immaterial. 
 
 Hoover vs. Royal Neighbors of America, July. 1902, 65 Kansas, 616; 
 70 Pac. 595. 
 
 Right to Increase Payments and to Readjust Rates. 
 
 Where a fraternal society has issued to a member a benefit cer- 
 tificate, which is so defective in its recitals as to make reference to 
 the laws of the society necessary in order tt) understand the exact 
 obligations and duties of each of the parties, such laws are a part 
 of the agreement, and where the certificate and by-laws make it 
 apparent that the member agreed to be bound by subsequently 
 enacted laws, he is bound by a new law which changes and increases 
 his rate of monthly assessments if it be reasonable and necessary to 
 the accomplishment of the objects of the society.
 
 326 FRATERNAL SOCIETY LAW 
 
 Miller vs. National Council K. & L. of Security, May, 1904, 69 Kan- 
 sas 234. 76 Pacific 830. 
 
 Meetings Held in Foreign State. 
 
 Where a statute under which a fraternal societ.y is corporated au- 
 thorized the society so to amend or alter its by-laws as to provide 
 for holding meetings of its legislative body in any State or territory 
 \vhere it has subordinate lodges, and where its governing body at a 
 regular meeting, has adopted a resolution to meet next at a place 
 other than that stated in the by-laws, in another State, the meeting 
 so held under such resolution, if otherwise regular, is authorized and 
 its proceedings valid. 
 
 Miller vs, Nat. Council K. and L. of Security, May, 1904, 69 Kas. 
 234, 76 Pacific 830. 
 
 Beneficiaries Limited to the Statutory Classes. 
 
 The Kansas fraternal beneficiary act of 1899 provides among 
 other things that "The payment of death benefits of such an asso- 
 ciation shall be to the families, heirs, blood relatives, affianced hus- 
 band or affianced wife of, or to persons depending upon, the mem- 
 ber thereof." The Supreme Court in passing upon this provision of 
 law held that persons other than those designated in the statute 
 have no insurable interest in the life of a member, and cannot 
 legally be made beneficiaries or receive death benefits from such 
 societies. It* was further held that a person not included in such 
 class cannot indirectly become a beneficiary b.v an agreement be- 
 tween the assured and one authorized by law to receive the benefits 
 in which the latter agreed to act as trustee for the person having 
 no insurable interest. 
 
 Gillam vs. Dale, May, 1904, 69 Kas. 362; 76 Pacific 861. 
 
 Change of Beneficiary — Fraudulent Inducements. 
 
 A certificate was issued b.v the Ancient Order of United Workmen, 
 payable to a member's child and afterward a change was made and 
 the certificate changed to the brother of the member. After the
 
 THE STATE OF KANSAS 327 
 
 death of the member the minor child of the member formerly named 
 as the beneficiary, made claim for the amoiint of the benefit, and the 
 society refused to pay any one. The brother named in the certificate 
 then brought suit and made the minor child party defendant. TlTe 
 minor child set up that the brother of the deceased, by fraud in- 
 duced the assured when enfeebled in body by disease and weakened 
 in mind from the excessive use of opiates to change the beneficiary 
 in the certificate from it to the brother. The Court held that where 
 there was no testimony tending to show the fraudulent inducements, 
 mere evidence that it was unnatural and improbable that a father 
 would change the beneficiary frcmi his infant daughter to a grown 
 brother, that siich evidence alone was not to be taken as fraudulent 
 inducement. 
 
 Broderick vs. Broderick, July. 1904, 69 Kansas 679 ; 77 Pac. 534. 
 
 After Enacted Laws in Mutual Society. 
 
 For the facts in a case where a member joining a mutual life 
 insurance company agreed in his application to be bound by after- 
 enacted by-laws, was held not bound by a certain amendment sub- 
 sequently adopted, see the following: 
 
 Boman vs. Bankers' Union of the World, July, 1907, Supreme Court 
 of Kansas, 91 Pac. 49. 
 
 Admissions by Beneficiary in Proofs of Death. 
 
 The statements made by a physician in the execution of death 
 proof blanks, furnished by the beneficiary, and which were obtained 
 from the society, which statements related to the condition of health 
 of the deceased member for some months prior to his death, were 
 held not to be regarded as admissions of the beneficiary made in 
 connection with furnishing proofs of death. 
 
 Triple Tie Benefit Assn. vs. Wheatley, July, 1907, Supreme Court of 
 Kansas, 91 Pac. 59. 
 
 Conditions Precedent to Liability. 
 
 The laws of a society provided that liability should not begin,
 
 328 FRATERNAL SOCIETY LAW 
 
 until after the certificate had been issued and signed by the proper 
 officials of the supreme and local councils, and the conditions of the 
 certificate accepted by the member in writing, endorsed upon the 
 certificate, and it was held, notwithstanding the payment of a 
 monthly assessment, liability did not begin until the conditions 
 had been met and application of the payment cannot be made until 
 thereafter. 
 
 Triple Tie Benefit Association vs. Wood, February, 1906, Supreme 
 Court of Kansas, 84 Pac. 565. 
 
 Public Charged With Notice of Corporate Powers. 
 
 Every person dealing with a corporation or with its obligations 
 is bound to take notice of the power vested in such corporations and 
 of the purposes of its creation. 
 
 Scott vs. Bankers' Union of the World, May, 1906, Supreme Court 
 of Kansas, 85 Pac. 604. 
 
 Self Executing Forfeiture Provisions. 
 
 As an example of self executing provisions of fraternal contracts, 
 the following which was so held to be self executing is given: "If 
 the member shall become so far intemperate in the use of alcoholic 
 drinks, or the use of drugs, to such an extent as to permanently 
 impair his health, or to pi-oduce delirium tremens, then -this certifi- 
 cate shall be null and void and of no eifect ,and all moneys which 
 shall have been paid, and all rights and benefits which may have 
 accrued on account of this certificate shall be absolutely forfeited." 
 
 Modern Woodmen of America vs. Breckenridge, March, 1907, Supreme 
 Court of Kansas, 89 Pac. 661. 
 
 Waiver of Laws by Local Lodge. 
 
 When a subordinate lodge has the power to receive members and 
 discipline and expel them for violating the by-laws of the society, 
 and it possesses knowledge that a member has done acts which 
 forfeit his benefit certificate, and it failed to act upon such conduct
 
 THE STATE OF KANSAS 329 
 
 of the member, it is held that the society has waived the right to 
 insist upon forfeiture by continuing to receive the delinquent mem- 
 ber's assessment up to the time of his death, and that the society 
 is estopped from assertiug the forfeiture. A by-law was called to 
 the attention of the court, which prohibited the subordinate lodge 
 from waiving any of the provisions of the laws of the society, but 
 the court said that this by-law had reference only to contractural 
 waivers, and had no application to a waiver by operation resulting 
 from subsequent acts. 
 
 Modern Woodmen of America vs. Breckenridge, March. 1907, Supreme 
 Court of Kansas, 89 Pac. GGl. 
 
 Venue of Suits Versus Societies. 
 
 An act authorizing the incorporation and providing for the regu- 
 lation of fraternal societies, was held not to fix the venue of actions 
 brouglit against fraternal societies, and that such actions 
 might be brought in any county in the State and process served 
 on the superintendent of insurance. 
 
 Loyal Mystic Legion of America vs. Brewer, May, 1907, Supreme 
 Court of Kansas, 90 Pac. 247. 
 
 Courts Do Not Take Judicial Notice of Foreign Statutes. 
 
 The courts of Kansas do not take judicial notice of the statutes 
 of other States, and where such statutes become material they must 
 be pleaded and proved as other material facts. 
 
 Loyal Mystic Legion of America vs. Brewer, May, 1907. Supreme 
 Court of Kansas. 90 Pac. 247.
 
 330 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF KENTUCKY. 
 
 CHAPTER 18. 
 
 The State of Kentucky has no fraternal society code. Tlie couri 
 of appeals of that commonwealth having held that Section 679 of 
 the General Statutes applied to fraternal societies, the legislature 
 in 1906 amended said section so as to exempt such societies from 
 same by an act which became a law March 24. 1906, as follows: 
 
 "Section six hundred and seventy-nine of subdivision three, 
 article four, chapter thirty-two of the Kentucky statutes, to be 
 amended by adding thereto the following words: 'But the pro- 
 visions of this section and of this subdivision shall not apply to 
 secret or fraternal societies, lodges or councils, which are under 
 the supervision of a grand or supreme body and secure members 
 through the lodge system exclusively, and pay no commission, and 
 employ no agents, except in the organization and supervision of 
 the work or local subordinate lodges or councils,' so that section 
 six hundred and seventy-nine of subdivision three, article four, 
 chapter thirty-two, of the Kentucky statutes, when amended shall 
 read as follows: 
 
 "All policies or certificates hereafter issued to persons within the 
 commonwealth by corporations transacting business therein, under 
 this law, which policies or certificates contain any reference to the 
 application of the insured, or the constitution, by-laws or other rules 
 of the corporation, either as forming part of the policy or contract 
 between the parties thereto or having any bearing on said contract, 
 shall contain or have attached to said policy or certificate a correct 
 copy of the application as sigiied by the applicant, and the portion 
 of the constitution, bv-laws, or other rules referred to ; and unless 
 
 7
 
 THE STATE OF KENTUCKY 331 
 
 SO attached and aceompanyiiig the policy, no such aj)i)lieation, con- 
 stitution, l)y-la\\s (ir other rules shall he received as evidence in 
 any controversy between the parties to or interested in said policy 
 or certificate, and shall not he considered a jiart of the policy or of 
 the contract between such parties. '1 he said poliey or certificate, 
 application, constitution, by-laws nr othei' rules shall be plainly 
 printed, and no portion thereof shall be in type smaller than brevier : 
 Provided, however, that nothing in this section shall be constnu'd 
 as applying to health certificates or any constitutional receipts, or 
 other evidences used in reinstatement of a jiolicy or certificate. But 
 the provisions of this section of this subdivision shall not apply to 
 secret or fraternal societies, lodges or councils, Avhich are under the 
 supervision of a grand or supreme body, and secure members 
 through the lodge system exclusively, and pay no commission nor 
 employ any agents, except in the organization and supervision of 
 the work of local subordinate lodges or councils." 
 
 —Kentucky Laws. 1906. 
 
 Misstatements Regarding Habits. 
 
 Where it is pleaded that the insured made false statements in his 
 application for insurance as to his habits of drinking whisky, the 
 court should have set out in an instruction the qiiestions and 
 answers contained in the application with reference thereto, and 
 should have told the jury that they should find for the plaintiffs if 
 the answers were substantially true, but otherwise they should find 
 •for the defendant, although there was no intention to mislead or 
 deceive the company, and also should have told the .jury that the 
 answers were not substantially true, if the assured drank whisky 
 materially more than as stated. 
 
 Providence Savings Life Assurance Co. vs. Dees, January, 1905, 
 120 Kentucky 2S5. 
 
 Statutes Limiting Time to Sue, 
 
 A provision in a life insurance contract to the effect that no suit 
 shall be maintained thereon unless begun within one .vear from the 
 death of the insured, is void, as in contravention of publfe policy;
 
 332 FRATEUyAL SOCIETY LAW 
 
 because the statutes of Kentucky prescribe a period of fifteeeu years 
 for bringing actions on such contracts. 
 
 Union Central Lite Ins, Co. vs. Spinlcs, September, 1904, 119 Ken- 
 tucky 261. 
 
 Time When Liability Begins Under Policy. 
 
 A provision in an insurance contract to the effect that it shall 
 not take effect unless applicant be alive and in sound health when 
 the policy is delivered, was held to refer solely to the change in 
 condition from that existing- from the date of the application and 
 medical examination, and that "sound health" is co-ordinate with 
 the "alive" both in logical and grammatical construction. 
 
 Metropolitan Lite In. Co. vs. Moore, January, 1904. 117 Kentucky 651. 
 
 Pleading Return of Premium on Void Contract. 
 
 It is elementary that an insurance company cannot collect and 
 retain the premium, .md claim that there was no insurance. The 
 defendant will not be permitted to say that the policy was never 
 binding until it shall pay back or tender back the premium collected, 
 and this must apjiear in the pleadings. 
 
 Metropolitan Life In. Co. vs. Moore, .lanuary. 1904. 117 Kentucky (i.51. 
 
 Contract Delivered Must Contain Complete Exhibit of All Parts Re- 
 ferred to or Relied on. 
 
 In construiug Section 679 Kentucky Statutes. 1903, which pro- 
 vides that all policies issued to persons within the commonwealth 
 by corporations transacting business therein, which contain only 
 reference to the application of the insured or the by-laws, or to the 
 rules of the corporation having any bearing on the contracts, shall 
 also contain or have attached to tlie contract a correct copy of the 
 portiosis of the by-laws referred to, and tuiless so attached, no such 
 by-laws or application shall be received in evidence in any contro- 
 versy between the parties interested, was held to apply in the case 
 where a (-ei't ilicate was issiu'd before tlie enactment of sucli statute,
 
 \ 
 
 THE STATJ.:! OF KENTUCKY 3;^,H 
 
 and Avhieh contained no reference to suicide of the member, hut 
 where the insurer liad subsequently after the passage of the act and 
 issuance of the certificate passed a by-law providing that in case 
 the member died by bis own bands the company should be liaiile 
 only for a i)roi)ortioiiate amount of the policy, and the coiift rx- 
 ■cluded the bydaw in question, because a copy of it liad not brcu 
 attached to the certificate. The legislature has subsetpieiit to this 
 decision amended this section 670. 
 
 HunziUer vs. Supreme Lodge K. of P., January. 1904, 117 Kentiuky 
 418. 
 
 Suicide Provided Against by Implication and Also is Against Public 
 Policy. 
 
 Every contract of life insui-.-mee nmst be construed to contain 
 the implied condition that the insured will not intentionally termi- 
 nate his life, but that the insurer shall have the benefit of the 
 chances of its continuance until terminated in thi> luitural, ordinary 
 course of events. Tt is upon these chances that the premium is 
 calculated and the contract founded; hence, the suicide of the in- 
 sured operates as fraud upon the insurer, and especially is this so 
 when the insurance is taken out in contemplation of the act. In the 
 second place, the enforcement of the contract in case of death by 
 suicide is opposed to public policy. If the contract should expressly 
 include death from this cause, the provision, even if not prohibited 
 by statute, would be contrary to public policy in that it tempted or 
 encouraged the insured to commit suicide ; and it is obvious that 
 the court will not imply a condititui which, if expressed in the i-on- 
 tract, would render it void. 
 
 Hunziker vs. Supreme Lodge K. of P.. January, 1904, 117 Kentucky 
 41S. 
 
 Suicide While Insane, 
 
 As the act of an insane person in taking his own life cannot be- 
 a fraud upon the insurer, no reason exists why it should invalidate 
 the policy. If tlie insurance comi)any would ))rotect itself against
 
 334 FRATERNAL SOCIETY LAW 
 
 such a risk, it slioiild so provide iu its policy, otherwise it will b'i 
 liable. 
 
 Hunziker vs. Supreme Lodge K. of P., January. 1904. 117 Kentucky 
 41S. 
 
 Circumstantial Evidence of Suicide, 
 
 Where the right to recover turns upon the question as to whether 
 the insured committed suicide, the court should direct a verdict for 
 the insurance company, where the evidence, though circumstantial, 
 but uncontradicted, all points to suicide. 
 
 Aetna Life Ins. Co. vs. Kaiser, April, 1903, 115 Kentucky 539. 
 
 Coroner 's Inquest — Suicide, 
 
 In a suit upon a policy, the defense interposed was suicide. The 
 coi-oner who had conducted the inquest was allowed to testify, and 
 was permitted to give his opinion as to whether the insured's death 
 was self-inflicted, but it was held that the coroner's opinion and the 
 coroner's inquest findings were wholly incompetent under the I'ules 
 of evidence in this State. 
 
 Aetna Life Ins. Co. vs. Kaiser, April. 1903, 115 Kentucky 539. 
 
 Entire Contract Required to be Contained in Certificate. 
 
 Section 679 Kentuckj' Statutes wliicli requires that charters, by- 
 laws, etc., or copies thereof, shall be attached to the certificate before 
 it can be treated as part of the contract and used in evidence, applies 
 to fraternal societies. This section of the statutes has been subse- 
 quently amended so that it does not longer apply to such societies. 
 
 Supreme Commandery United Order of the Golden Cross vs. Hughes, 
 September, 1902, 114 Kentucky 175. 
 
 No Stipulation Against Suicide. 
 
 A certificate issued by :i fi'nti'i'iinl society, containing no stipnla- 
 
 r:
 
 TBE STATE OF KENTUCKY 335 
 
 tions as to suicide, but, declared that it was subject to the laws of 
 the order, aud in the laws there was a provision aj^ainst suicide, it 
 was held that as the certificate contained no stipulation as to suicide, 
 and no copy of the laws was attached to the certificate, it wms not 
 competent to show under the laws the provision against suicide. 
 
 Mooney vs. Ancient Order United Workmen, January, 1903, 114 
 Kentucky 950, 
 
 Suicide — Definition of Under Sane or Insane Clause. 
 
 A fraternal benefit certificate, payable to a designated beneficiary, 
 and which is silent on the subject of suicide, becomes void if the 
 insured commits suicide while sane, but not void if the insured com- 
 mit suicide when insane ; and it was held that the insured was in- 
 sane at the time he committed suicide if he did not have sufficient 
 reason to know what he was doing, and to distinguish right from 
 wrong, or if he had not sufficient will power to govern his actions 
 by reason of some insane impulse which he could not control. 
 
 Mooney vs. Ancient Order United Workmen, January, 1903, 114 
 Kentucky 950. 
 
 Forfeiture Ipso Facto. 
 
 Where a contract of insurance provided that upon the violation of 
 its conditions that it would be void "Without action on the part of 
 the company or notification to the insured or beneficiary," no notice 
 of the forfeiture for the non-payment of premiums is necessary to 
 make forfeiture effective. 
 
 Cretchfield vs. Union Cent. Life. Ins. Co., January, 1902, 113 Ken- 
 tucky 53. 
 
 Suicide Sane or Insane — Erroneous Instruction. 
 
 A contract of life insurance provided that if the member should 
 "Die by his own act, sane or insane," that there should be no re- 
 covery, was construed by the court to the effect that if the insured 
 took his life when he had mind enough to know that the act by
 
 336 FRATERNAL .SOCIETY LAW 
 
 ■which he did so would probabl.v result iu his death, and he com- 
 mitted it with the intention that it should do so, though he may not 
 from mental derangement have known that his act was wrong, and 
 may not have the will power to resist the insane impulse ; that 
 it was error to instruct the jury that before they could find for the 
 defendant they must believe that the insured possessed sufficient 
 will power at the time to refrain from taking his own life. 
 
 Manhattan Life Ins. Co. vs. Beard. January, 1902. 112 Kentucky 455. 
 
 Absence for Seven Years of Fugitive — Presumptions of Death. 
 
 Section 1639, Kentucky Statutes, provides that, "If any person 
 who shall have resided in this State go from and do not return to 
 this State for seven successive years, he shall be presumed to be 
 dead iu any case wherein his death shall come in question, unless 
 proof be made that he was alive within that time," applies where 
 the person leaving the State is absent for seven successive years 
 after he last was heard from ; the burden being then thrown on the 
 other party to prove that the person is alive. It was further held 
 that the fact that the person who had been thus absent from the 
 State without being heard from for seven consecutive years is a 
 fugitive, does not prevent the application of the statute as a matter 
 of law; but that fact was held to be admissible to rebut the pre- 
 sumption of death. 
 
 Mutual Benefit Life Ins. Co. vs. Martin. January, 1903, lOS Ken- 
 tucky 11. j/^ 1 
 
 Separate Classes — Separate Funds. 
 
 A inut\ial society had two classes of members, and by law these 
 classes were required to be kept separate and distinct, and that 
 neither class should be responsible for the obligations of the other 
 class and that their funds should be kept separate. The court held 
 that no part of the funds of one class should be used to pay the 
 losses of the other. 
 
 Allen vs. Thompson. April, 1!miii. ](IS Kentucky 476.
 
 THE STATE OF KI-:\TI CKY 337 
 
 Beneficiary — Surviving- Widow — Dependents. 
 
 Where a iiu'iiiher (if :i rniti'rnnl society obtained a eo'tificate pay- 
 able to his wife, iiamiiig her as sueh beiiefioiary, and after lier deatli 
 lie remarried and then died childb^ss, leavinjs: his second wife sur- 
 viving, but never having obtained a new certificate or changed the 
 l)eiieticiai-y, it was held Ilia1 llie siii-viving wil'e was entitled to the 
 benefit as against the father of the deceasetl. and to the exclusion of 
 the member's administrator; the court holding that the widow was 
 a member of the family of Ihe ileceased, while the father was not 
 such, and there being a provision in the laws of the society limiting 
 the benefits to the membei's of the family of. oi- to dependents of the 
 member, and further provided that the benefit should not in any 
 event be liable foi' any of Ihe debts of the member. This construc- 
 tion was of a certificate and the by-laws of The Calholir Knights of 
 Aiuerica. 
 
 O'Neal vs. O'Neal, Oct. 5tli. 1900, 109 Ky. 113. 
 
 After-enacted State Statutes. 
 
 A luember holding a certificate in the American Guild died iu 
 1905, and suit was begun upon the certificate in September of that 
 year. In March, 1906, the General Assemlily ameinled § 679 of the 
 Kentucky statutes 1903, by excepting from its operations, fraternal 
 societies. 
 
 There was not attached to the certificate sued, a copy of the ap- 
 plication or by-laws, and the society relied upon the exception added 
 to the statute by the Genei'al A.ssembly in 1906. The Court held 
 that the amended statute did not apply to the contract in suit, and 
 added the following: "The rights of the parties are determined by 
 the contract, and the contract under the statute is determined by 
 the certificate. The statute cannot make any law impairing the 
 obligation of a contract, and when the insured died, the rights of 
 the beneficiary attached, arul the statute could not thereafter, if it 
 wished, impair in any way the contract rights of the beneficiary 
 under his contract." 
 
 It was further held in the same case that S 679 did not merely 
 22
 
 338 FRATERNAL SOCIETY LAW 
 
 prescribe a rule of evidence, but determined what shonld constitute 
 the contract between the parties. 
 
 American Guild vs. Wyatt, March, 1907, Court of Appeals of Ken- 
 tucky, 100 S. W. 266.
 
 THE STATE OF LOUISIANA 339 
 
 THE 
 
 STATE OF LOUISIANA 
 
 CHAPTER 19. 
 
 The State of Louisiaii.i,, l)y an act approved July 9, 1906, enacted 
 a Fraternal Society Code. The act is as follows: 
 
 "An Act to provide for the organization, admission and regulation of 
 associations transacting the business of life, accident, sick benefit, 
 or physical disability insurance on the fraternal plan, and to fix 
 penalties for the violation of this Act, and to repeal all laws in 
 conflict with the provisions of this Act. 
 
 Section 1. Be it enacted by the General Assembly of the State of 
 Louisiana, That any corporation, society, order or voluntary associa- 
 tion Avithout capital stock, organized and carried on solely for the 
 mutual benefit of its members and their beneficiaries, and not for 
 profit, and having a lodge system with ritualistic form of work aud 
 representative form of government and which shall make provisions 
 for the pa.yment of death benefits, and which may make provisions 
 for the payment of disability benefits, or both, provided the regular 
 periodical payments by members shall not be made oftener than once 
 per month, is hercljy deehired to be a frntornal beneficiary asso'cia- 
 tiou. 
 
 Section 2. Be it further enacted, etc.. That any association having 
 a supreme governing or legislative body and subordinate lodges or 
 branches by whatever name known, into which members shall be 
 elected, initiated and admittetl in accordance with its comstitution,
 
 340 FliATERXAL SOCIETY LAW 
 
 laws, I'ules, regulations and prescribed ritualistic ceremonies, which 
 subordinate lodges or branches shall be required by such association 
 to hold regular stated meetings at least once in each month, shall be 
 deemed to l)e operatint;' under the lodge system. 
 
 Section 3. Be it further enacted, etc., That any association shall 
 be deemed to have a representative form of government, when it 
 shall provide in its constitution and laws for a supreme legislative 
 or governing bodj', composed of representatives elected either by the 
 members or by delegates elected bj^ the members through a delegate 
 convention system together with such other members as may be pre- 
 scribed by its constitution and laws, provided that the elective 
 representatives shall constitute a majority in number and have not 
 less than a majority of the votes, nor less than the votes required to 
 amend its constitution and laws, and provided further that the meet- 
 ings of the supreme or governing body and the election of officers, 
 representatives or delegates shall be held as often as once in four 
 years. The members, officers, representatives or delegates of a fra- 
 ternal beneficiary society shall not vote by proxy. 
 
 Section 4. Be it further enacted, etc., That, except as herein pro- 
 vided, such association shall be governed by this Act and shall be 
 exempt from all provisions of the insurance laws of this State, and 
 no law hereafter passed shall a])])]y to them, unless they be expressly 
 designated therein. 
 
 Section 5. ]?e it further enacted, etc.. That every association trans- 
 acting business under this Act shall provide for the payment of 
 death benefits, and may provide for the payment of benefits in ease 
 of temporary' oi" permanent physical disability, either as a result of 
 disease, accident or old age, provided the period of life, at which the 
 ])aynient of lienefits for disability on account of old age shall coni- 
 nu^nce. siiall not lie under seventy years; except as otherwise pro- 
 vided in this Act no association shall issue or offer, or promise to 
 issue, any contract providing for the payment of any other benefit, 
 or any contract which does not provide for the regular payments or 
 assessments during the entire existence of the contract. 
 
 Section G. Be it further enacted, etc.. That the paynieut of death 
 benefits shall be confin(Hl 1o 1he wife, husliand. family, relatives by 
 blood, marriage, or legal adoption, affianced husband, or affianced 
 wife, or to a person or persons dependent on the member.
 
 THE STATE OF LOUISIANA 341 
 
 Scctiiin 7. lie i1 riifthrr rii:ictc(l, r\f.. Thai iKi jissdc'iMlidii sliall 
 admit to l)ciu'tiL'ial iiieiiiberslii[) any person less tluiii sixteen (Ki) nor 
 more than sixty ((50) years of age, nor any person who Inis not been 
 examined by a legally qualified jtracticing pliysieian, and whose ex- 
 amination has not been a|ii)roved by the snpervising medical author- 
 ity of the association as j)i'ovided by the laws of the association. 
 
 Section 8. Be it further enacted, etc., Tliat every certificate issued 
 by the association shall s])ecify the maximum amount of benefit pro- 
 vided by the contract, and shall stipulate that the funds from M'hich 
 benefits shall be paid and the fmids from which the expenses of the 
 association shall be derived from periodical or other payments by the 
 members of tlie association and arerclions of said funds: I'rovii.led, 
 that regular periodical payments shall not lie made oftener than once 
 per month ; and every such association shall provide in its constitu- 
 tion or laws, and in its certificates, that if such regular payments are 
 insufficient to \>ay all matured death and disability claims in full, 
 and to provide for the creation and maintenance of the funds re- 
 quired by its constitution and laws, extra assessments or other pay- 
 ments may be levied upon the members to meet such deficiency. It 
 must also be stipulated in the certificate, that the certificate, the 
 constitution and laws of the association and the application for mem- 
 bersliip and medical examination, signed by the applicant, shall con- 
 stitute the contract between the association and the member, and 
 copies of the same certified by the secretary of the association or cor- 
 responding officer, shall be received in evidence of the terms and con- 
 ditions of the contract; and any changes, additions or amendments 
 to said charter or articles of association, constitution or laws duly 
 made or enacted subsequent to the issuance of the benefit certificate 
 shall bind the member and his beneficiaries, and shall govern and 
 control the contract in all respects the same as though such changes, 
 additions or amendments had been made prior to and were in force 
 at the time of the application for membership; Provided, how^ever, 
 that the constitution and laws of any such association shall never be 
 amended or in any way altered except by the supreme legislative or 
 governing body in a regular or special meeting called for that pur- 
 pose after written notice of the purpose of such meeting has been 
 given every member of the association, and no amendment to the
 
 342 FRATERNAL SOCIETY LAW 
 
 constitution and laws shall in anv way affect the rights of any benefi- 
 ciary whose claim accrued b.y death or otherwise prior to the passage 
 of such amendment. 
 
 Section 9. Be it further enacted, etc.. That any association may 
 create, maintain, invest, disburse and apply a reserve, emergency 
 surplus or other fund in accordance with its constitution and laws 
 for the purposes specified in Section 5 of this Act. Any such asso- 
 ciation so creating, maintaining, investing, disbursing or applying 
 any such reserve, emergency or surplus fund, shall not be held to be 
 organized or carried on for profit within the intent of the provisions 
 of Section 1 of this Act. Such funds shall be held, invested and dis- 
 bursed for the use and benefit of the as.sociation, and no member or 
 beneficiarj^ shall have or acquire any individual rights therein, or be 
 entitled to an apportionment or the surrender of anj' part thereof. 
 
 Section 10. Be it further enacted, etc., That any association may 
 invest its funds in and hold real estate for lodge and office puiT^oses, 
 and any real estate acquired by foreclosure or received in satisfac- 
 tion of loans, and may sell and convey the same. Any such associa- 
 tion may also invest its funds in United States, State, parish, muni- 
 cipal, levee, or drainage district bonds, provided that such bonds 
 shall be a direct obligation on all the taxable property within such 
 municipality or district and the net indebtedness of such munici- 
 pality or district shall not exceed five (5) per centum of the value of 
 all taxable property therein according to tli'e last valuation for taxa- 
 tion preceding the issuance of said bonds; or in first mortgages or 
 first mortgage bonds upon improved real estate for not exceeding 
 fifty (50) per centum of the actual cash value thereof at the time of 
 making the loan; Provided, however, that every foreign association 
 shall be empowered to invest its funds in such securities as may be 
 permitted by tlie laws of the State, province or country in which it 
 is organized. 
 
 Section 11. Be it further enacted, etc.. That every association shall 
 make provision in its constitution and laws for payment by members 
 of such an association, which provision shall state the purpose of the 
 same and the proportion thereof Avhich may be used for expenses, 
 and no part of the money collected for mortuary or disability pur- 
 poses and no part of the reserve, emergency or surplus funds or the
 
 THE STATE OF LOUISIANA 343 
 
 net accretions of either or any of said funds, shall be used for ex- 
 penses, and such provision must also be printed in the certificate, 
 showing the proportion of the payment of the member that is for 
 mortuary or disability purposes, and the proportion that can be used 
 for expenses, which shall be binding on the association. 
 
 Section 12. Be it further enacted, etc.. That five or more persons, 
 citizens of this State, who desire to form a fraternal or beneficiary 
 association as defined by this Act, may take out a charter in the way 
 and manner provided by law, in which shall be stated : 
 
 First — The proposed corporate name of the association, which 
 shall not so closely resemble the name of any association or insur- 
 ance company already transacting bvisiness in this State as to mis- 
 lead the public or to lead to confusion. 
 
 Second — The purpose for which it is foi-med — which shall not in- 
 clude more liberal powers than are granted by this Act, provided 
 that any lawful, social, intellectual, educational, moral or religious 
 advantages may be set forth among the purposes of the association — 
 and the mode in which its corporate powers are to be exercised. 
 
 Third — The names, residences and ofScial title of all the officers, 
 trustees, directors, or other persons who are to have and exercise the 
 general control and management of the affairs and funds of the asso- 
 ciation or the first year or until the ensuing election at which all 
 such officers shall be elected by the supreme legislative or governing 
 body. 
 
 Such articles of association and duly certified copies of the consti- 
 tution and laws, rules and regulations, and copies of all proposed 
 forms of benefit certificates, applications therefor and literature to 
 be used by such association, and a bond in the sum of five thousand 
 dollars, with sureties approved by the Secretary of State, con- 
 ditioned upon the return of the advanced payments, as provided in 
 this section, to applicants, if the organization is not completed in one 
 year, or after such further jieriod, not exceeding one year, as may be 
 authorized by the Secretary of State, shall be fixed with the Secre- 
 tary of State, who may require such further information as he deems 
 necessary, and if the purposes of the association conform to the re- 
 quirements of this Act and all provisions of the law have been com- 
 plied ^vith, the Secretary of State shall so certify and retain and
 
 344 FRATERNAL SOCIETY LAW 
 
 keep on file and furnish the incorporators a preliminary certificate 
 authorizing said association to solicit members as hereinafter pro- 
 vided. 
 
 Upon receipt of said certificate from the Secretary of State said 
 association may solicit members for the purpose of completing its or- 
 ganization and shall collect from each applicant the amount of not 
 less than one death benefit assessment or payment, in accordance 
 with its tables of rates as provided by its constitution and laws, and 
 shall issue to each such applicant a receipt for the amount so 
 collected. 
 
 Bat no such association shall incur any liability other than for 
 such advance payments, nor issue any benefit certifieate, nor pay or 
 allow, or offer a promise to pay or allow to any person any death or 
 disability benefit until actual bona fide applications for death benefit 
 certificates have been secured upon at least five hundred lives for at 
 least one thousand dollars each, and all such applicants for death 
 benefits shall have been regidarly examined by legally qualified 
 practicing physicians and certificates of such examinations have been 
 duly filed and approved bj' the cliief medical examiner of such asso- 
 ciation, nor until there shall be established ten subordinate lodges or 
 branches into which said five hundred applicants have been initiated, 
 nor until there has been submitted to the Secretary of State under 
 oath of the president and secretary or corresponding officers of such 
 association, a list of such applicants, giving their names, addresses, 
 date examined, date approved, date initiated, name and number of 
 the subordinate branch of which each applicant is a member, amount 
 of benefits to be granted, rate of i-egular payments or assessments, 
 which shall not be lower for death benefits than those required by 
 the National Fraternal Congress table of mortalit.v, with interest at 
 four per cent, per annum ; nor until it shall have been shown to the 
 Secretary- of State by the sworn statement of the treasurer or cor- 
 responding officer of such association, that at least five hundred ap- 
 plicants have each paid in cash at least one regular monthly pay- 
 ment or assessment as herein provided per one thousand dbllars of 
 indemnity to l)e effected, which payments in the aggregate shall 
 amoiuit 1(1 ;it least twenty-five hundred dollars, all of which shall be 
 credited to the nmrluary uv ilisaliility fund on account of such ap- 
 plicants, and nil |iart nf whii'li may be used for expenses.
 
 THE STATE OF LOUISIANA 345 
 
 Said advanced payments shall during the jx'riod of oi'ganization 
 be held in trust for and, if the organization is not complpted within 
 one year as hereinafter provided, returned to said ap])licant,s. 
 
 The Secretary of State may make such examination and require 
 such further information as he may deem advisable, and upon pre- 
 sentation of satisfactory evidence that the association has complied 
 with all the provisions of the law he shall issue to such association a 
 certificate to that effect. Such certificate shall lie prima facie evi- 
 dence of the existence of such association at the date of such certifi- 
 cate. The secretary of state shall cause a record of such certificate to 
 be made and a certified copy of such record may be given in evidence 
 with like effect as the original certificate. 
 
 No preliminary certificate granted under the provisions of this 
 section shall be valid after one year from its date, or after such fur- 
 ther period, n<jt exceeding one year, as may be anlhoi-ized by the 
 Secretary of State upon cause shown, unless five hundred applicants 
 herein required have been secured and the organization has Been 
 completed as herein provided, and the articles of association and all 
 proceedings thereimder shall become null and void in one year from 
 the date of said preliminary certificate, or at the e^ipiration of said 
 extended period, unless such association shall have completed its 
 organization and commenced business as herein provided. When 
 any domestic association shall have discontinued business for the 
 period of one year, its charter shall become null and void. 
 
 Section 13. Be it further enacted, etc.. That any domestic or fra- 
 ternal association within the definition of fraternal associations de- 
 scribed in this Act, now engaged in transacting business in this 
 State, may exercise, after the passage of this Act. all of the rights 
 conferred thereby, and in addition thereto may exercise all of the 
 rights, powers and privileges now exercised or possessed by it under 
 its charter or articles of association not inconsistent with this Act, 
 or it may be reincorporated hereunder. But no such association 
 already organized shall be required to reincorporate hereunder, nor 
 shall it be required to adopt the rules prescribed herein for new asso- 
 ciations, in order to avail itself of the privileges of this Act. 
 
 Section 14. Be it further enacted,- etc., That no domestic associa- 
 tion shall transfer its membership or funds to any association not
 
 346 FRATERNAL SOCIETY LAW 
 
 authorized by the Secretary of State to transact business in this 
 State, nor shall any such association transfer its members or 
 funds to any licensed association, unless the said contract to transfer 
 has been approved by a tAvo-thirds vote of the members of the su- 
 preme body of the association whose membership is proposed to be 
 transferred ; and by a two-thirds vote of the trustees or board having 
 charge of the association proposing to take such membership. 
 
 Section 15. Be it further enacted, etc., That foreign fraternal 
 associations which were transacting business in this State prior to 
 the passage of this Act may continue such bu.siuess until the first 
 day of April next succeeding the passage of this Act, and the author- 
 ity' of such associations to do bvisiness in this State may thereafter 
 be renewed annually, as hereinafter provided, but in all cases to 
 terminate on the first day of the siicceeding April. A eertifieate 
 from the Secretary of State to such association shall be prima facie 
 evidence that the license is a fraternal beneficiary association withiu 
 the meaning of this Act. 
 
 Section 16. Be it further enacted, etc.. That no foreign fraternal 
 association shall transact any business in this State without a cer- 
 tificate from the Secretary of State. Before receiving such certifi- 
 cate it shall file with the Secretary of State a duly certified copy of 
 its charter or articles of association ; a copy of its constitution and 
 laws, certified by its secretary or corresponding officer; a power of 
 attorney to the Secretary of State as hereinafter provided; a state- 
 ment under oath, of its president and secretary, or corresponding 
 officers, in the form required by the Secretary of State, duly verified 
 by an examination made by the supervising insurance official of its 
 home State, of the business for the preceding year ; a copy of its mem- 
 bership contracts, or certificates, which must show that benefits are 
 provided for by assessments upon or other payments by the persons 
 holding similar membership contracts or certificates, and shall fur- 
 nish the Secretary of State with such other information as he may 
 deem necessary to a proper exhibit of its business and jilan of work- 
 ing, and if he finds that it is transacting' business in accordance with 
 the provisions of this Act. that its assets are invested in accordance 
 with the laws of the State where it is organized, and that it has the 
 memliri-sliip and qnalitication reqiiifi'd <if <l(iniestie associatinns or-
 
 THt: STATE OF LOUISIANA 347 
 
 yiiiiizcd iiiidiT this Act, lie iiiiiy license such associaticm t(i do liiisi- 
 ness ill this State until the fii'st day of the succcediti^'' Api'il, and sucli 
 license may he renewed annually. l)ut in all eases to terminate ou the 
 first day of the succeeding- April. 
 
 Hection 17. He it further enaetetl, etc., That no license shall be 
 issued to any association not transacting business in this State at the 
 time of the i)assage of this Act which collects from any of its mem- 
 bers assessments or payments for death benefits lower than those re- 
 quired by the Fraternal Congress Mortality Table of 1900, with in- 
 terest at four per cent, per annum. 
 
 Section 18. Be it further enacted, etc.. That when the Secretary 
 of State refuses to license any association, or revokes its authoi'ity 
 to do business in this State, he shall reduce his ruling, order or de- 
 cision to writing, and file the same in his office, and shall furnish a 
 copy thereof, together with a statement of his reasons, to the officers 
 of the association, ujion request. Any society affected by any such 
 ruling, order or decision, .shall have the right to appeal to any court 
 of competent jurisdiction in this State, by filing with said Secretarj' 
 of State a notice of such aijjteal in writing, .stating specifically to 
 which court such appeal is proposed to be taken, and in such case 
 said Secretary of State shall forthwith, and within ten days there- 
 after, deliver to such association a full and certified transcript of all 
 proceedings had before him in such matter, including all applica- 
 tions, together with all orders, rulings and decisions had thereon. 
 And on such transcript being filed in .said court, such court shall be 
 fully possessed of said action, and a full trial on the merits de novo 
 shall be had thereon; jirovided, that such appeal shall be filed in 
 such court within forty days after the rendition of the ruling, order 
 or decision appealed from : And provided further, that nothing con- 
 tained in this or the preceding section shall be taken or construed 
 as preventing any such association from continuing in good faith all 
 contracts made in this State during the time such association was 
 legally authorized to transact business herein, and provided further, 
 that the association will not be allowed to voluntarily withdraw from 
 the State after such appeal has been taken nor until the court has 
 rendered its decision on such appeal. 
 
 Section If). Be it further enacted, etc.. That every foreign asso- 
 ciation shall, before lieing licensed, appoint in writing the Secretai\v
 
 348 FRATERNAL SOCIETY LAW 
 
 cf State and his successors iu office to be its true and lawful at- 
 torney, upon whom all legal process in any action or proceeding 
 against it shall be served, and in such writing shall agree that any 
 lawful process against it, which is served upon said attorney, shall 
 be of the same legal force and validitj' as if served upon the associa- 
 tion, and that the authority shall continue in force so long as any 
 liability remains outstanding in this State. 
 
 Copies of such appointment, certified by the Secretary of State, 
 shall be deemed sufficient evidence thereof, and shall be admitted in 
 evidence with the same force and ei¥ect as the original thereof might 
 be admitted. Service may only he had upon such attorney, must be 
 made in duplicate and accompanied by the fee hereinafter provided, 
 and shall be deemed sufficient service upon such association, pro- 
 vided, however, that no such service shall be valid or binding against 
 anj^ such association when it is required thereunder to file its answer, 
 pleading or defense in less than thirty days after the date of such 
 service. When legal process against any association is served upon 
 said Secretary of State, he shall forward forthwith by registered 
 mail one of the duplicate copies, prepaid and directed to its secretary 
 or corresponding officer. The plaintiff in such process so served 
 shall pay to the Secretary of State for his services at the time of 
 such service a fee of $2.00, which shall be recovered by him as a part 
 of the taxable costs, if he X'l'evails in the suit. 
 
 Section 20. Be it further enacted, etc.. That any domestic asso- 
 ciation may provide that the meetings of its legislative or governing 
 bodj- may be held in any State, district, province or territory 
 wherein such association has subordinate branches, and all business 
 transacted at such meetings shall be as valid in all respects as if such 
 meetings were held in this State. But its ]irin('ipal office -shall be 
 located in this State. 
 
 Section 21. Be it further enacted, etc.. That officers and meniljers 
 of the supreme or grand or any subordinate body of any such in- 
 corporated association, shall not be individiutlly liable for the pay- 
 ment of any disability or death benefits provided for in the laws and 
 contracts of such association, but the same shall be payable only 
 out of the funds of such association and in the manner ju-ovidcd by 
 its laws.
 
 THE STATE OF LOUISIANA 349 
 
 Section li'J. Be it fui-tiicr' enacted, etc.. Tli.il the constitution and 
 laws of the association must provide that no subordinate Ijody, nor 
 any of is officers or members shall have the power or authority to 
 waive any of the provisions of the laws and Constitution of the asso- 
 ciation, and the same shall be biudiiiii on the association and each 
 and (ivery member thereof. 
 
 Section 23. Be it further enacted, etc.. That all grand lodges bj' 
 whatever name known, whether ineorpoi-ated or not. holding char- 
 ters from a supreme governing bod.\', which are^ conducting business 
 in this State upon the passage of this Act as a fraternal beneficiary 
 association upon what is known as the separate .iurisdietion plan, 
 shall be treated as a federation of grand lodges and not as single 
 State organizations, and all rejiorts required by the provisions of 
 this Act shall be made and furnished b.v the officers of each supreme 
 governing body and shall embrace and contain the transactions, lia- 
 bilities and assets of the entire order, providing such assets are liable 
 for the debts and liabilities of the subordinate organizations. 
 
 Section 24. Be it further enacted, etc., That every association 
 transacting business under this Act shall file with the Secretary of 
 State a diily certified copy of all amendments of, or additions to, its 
 constitution and laws, within ninety days after the enactment of the 
 same. Printed copies of the constitution and laws and of additions 
 or amendments thereto, certified by the secretary or corresponding 
 ofiicer of the association, shall be prima facie evidence of the legal 
 adoption thereof. 
 
 Section 25. Be it fi;rther enacted, etc.. That every association 
 transacting business in this State, shall aiuiually. on or before the 
 first day of ]Mareh. file with the Secretary of State, in such form as 
 he may require, a statement under oath of its president and secre- 
 tary, or corresponding officers, of its condition and standing on the 
 thirty-fir.st day of December next preceding and of its transactions 
 for the year ending on that date, and shall also furnish such other 
 information as the Secretary of State may deem necessary to a 
 proper exhibit of its business and iilan of working. The Secretary 
 of State may at other times require any further statement he may 
 deem necessary to be made relating to such associations. But such 
 Secretary of State shall neither make or permit to be made from any
 
 350 FRATERNAL SOCIETY LAW 
 
 information so obtained the valuation of its ontstanding bonefit cer- 
 tificates unless requested to make such valuation by the association. 
 
 Section 26. Be it further enacted, etc., That the Secretary of 
 State, or any person he may appoint, shall have the power of visita- 
 tion and examination into the affairs of any domestic association. He 
 ma.y employ assistants for the purpose of such examination, and he, 
 or any person he may appoint, shall have full access to an.y books, 
 papers and documents that relate to the business of the association, 
 and may summon and qualify as witnesses under oath, and examine 
 its officers, agents and employes or other persons in relation to the 
 aifairs, transactions and condition of the association. The expense 
 of such examination shall be paid by the association examined. 
 
 Whenever after examination the Secretary of State is satisfied 
 that any domestic association has failed to comply with any provis- 
 ions of this law or is exceeding its powers ; or is not carrying out its 
 contracts in good faith; or is transacting Inisiiiess fraudulently; or 
 is in such condition as to render further proceedings hazardous to 
 the public or its certificate holders; or whenever any domestic asso- 
 ciation, after the existence of one year or more, shall have a member- 
 ship of less than three hundred, or votes to discontinue business, the 
 Secretary of State may present the facts relative thereto to the State 
 Attorney General, who shall, if he deem the circumstances warrant, 
 commence an action in quo warranto in a court of competent .i\u'is- 
 diction, and such court shall thereupon notify the officers of such as- 
 sociations of a hearing, and, unless it shall then appear that some spe- 
 cial and good reason exists why such association shcndd not be closed, 
 said association shall be enjoined from carrying on any further busi- 
 ness, and some person shall be appointed receiver of such associa- 
 tion, and shall i)roeeed at once to take ])ossession of the books, 
 papers, moneys, and other assets of the association, and .shall forth- 
 with, under the direction of the court, proceed to close the affairs of 
 the association and to distribute its funds to those entitled thereto. 
 No such i)roceeding shall be commenced by the State Attorney Gen- 
 eral against any such a.ssociation until after notice has been duly 
 served on the chief executive officers of the association and a reason- 
 able opportunity given to it on a date to be named in said notice to 
 .show cause why such proceedings should not he commenced.
 
 THE UTATE OF LOUIHIANA 351 
 
 Section 27. Be it further enacted, etc.. That no action or pro- 
 eeedinji' to discontiiuie or enjoin, in whole or in part, the business or 
 methoils of any sneh domestic a.ssociatioti, or to appoint a receiver 
 thei'ct'or. or to dissolvi- the same, or in any inamiiT affcclitiK' its cor- 
 porate rights, or to oust any foreign association, or enjoin it from 
 transacting business in this State, shall be entertained by any court, 
 except on the suit of the Attorney General of this State. 
 
 Section 28. Be it further enacted, etc., That the Secretary of 
 State, or any person whom he may appoint, may examine any for- 
 eign association transacting or applying for admission to transact 
 business in this State. The Secretary of State may employ assistants 
 for the purpose of such examination, and he, or any person he may 
 appoint, shall have free access to all the books, papers and docu- 
 ments that relate to the business of the association, and may sum- 
 mon and qualify as witnesses under oath and examine its officers, 
 agents, employes and other persons in relation to the affairs, trans- 
 actions and condition of the association. He may, in his discretion, 
 accept in lieu of such examination the examination of the insurance 
 department of the State, territory, district, province or country 
 where such association is organized. All examinations made under 
 the provisions of this section shall be made at the expense of the 
 association examined. 
 
 If any such association or its officers refuse to submit to such 
 examination, or to comply with the provisions of this section rela- 
 ting thereto, the authority of such association to transact business in 
 this State shall be revoked until satisfactory evidence is furnished 
 the Secretar.y of State relating to the condition and affairs of the 
 association, and during such revocation the association shall not 
 transact any business in this State. 
 
 Section 29. Be it further enacted, etc.. That when the Secretary 
 of State on investigation is satisfied that any foreign association 
 transacting business mider this Act has exceeded its powers, or has 
 failed to comply with the provisions of the law, or is conducting 
 business fraudulently, or is not carrying out its contracts in good 
 faith, or is in such condition as to render further proceedings hazard- 
 ous to the public or its certificte holders, he may revoke the certifi- 
 cate of authority granted to it, and shall cause notification thereof
 
 352 - FRATERNAL SOCIETY LAW 
 
 to be published in one or more newspapers of t;eneral circulation, 
 and no new business shall thereafter be done by it or its agents in 
 this State while such default or disability continues, nor until its 
 authority to do business is restored by the Secretary of State ; pro- 
 vided, that nothing in this Act shall prevent such association from 
 aijplying to a court of competent jurisdiction, by mandamus or 
 otherwise, to compel said Secretary of State to issue such certificate, 
 if such court, in its discretion, should determine that said association 
 was entitled, under the law, to have said certificate issued to it. 
 
 Section 30. Be it further enacted, etc.. That nothing contained 
 in this Act shall be construed to affect or apply to grand or subordi- 
 Tiate lodges of Masons. Odd Fellows or Knights of Pythias (exclusive 
 of the insurance branch of the Supreme Lodge Knights of Pythias), 
 or to similar orders which do not issue insurance certificates, nor to 
 local lodges of an association now doing business in this State that 
 do not issue certificates that provide death benefits not exceeding 
 three hundred dollars to any one person, or disability benefits not 
 exceeding three hundred dollars in any one year to any one person, 
 or both ; nor to domestic associations which limit their membership 
 to the emploj'es of a particular city or town, designated firm, busi- 
 ness house or corporation. The Secretary of State may require from 
 any association such information as will eiuible him to determine 
 whether such association is exempt from the provisions of this Act. 
 No association which is exempt by the provisions of this section 
 from the requirements of this Act shall give or allow, or promise to 
 give or allow, to any person any compensation for procuring new 
 members. 
 
 Section 31. Be it further enacted, etc.. That associations coming 
 within the definition of fraternal beneficiary associations as defined 
 by this Act, and now transacting business as fraternal beneficiary 
 associations, doing business in this State prior to and at the time of 
 the passage of this Act. and which shall have established or may 
 hereafter establish rates deemed by it adequate to perpetuate its 
 existence or meet its obligations, and in so doing has increased or 
 shall increase the payments required to be made by any member, 
 so that sucli nicmber shall be unable for any reason to make such 
 payniciit and to coiitinn<' his nii'inl)erslii]i, in such case or cases any
 
 THE t^TATH OF LOUISIANA 353 
 
 siieh as.sotiiatioii may make snoli allowance to sueh member or mem- 
 bers, by way of extended insurance, or reduced benefit ])ayalib=' to a 
 l)eneficiary designated in accordance with tlie jirovisions of Seetioii 
 (■) of this Act, as it may determine to be equitable and provided for 
 by the laws and regulations, and may provide for paying the cost 
 of carrying such extended insurance out of any reserve, emergency, 
 surplus or other fund it has or shall accumulate or create. 
 
 The provisions of this section shall not be construed as applicable 
 to any association which does not make provision for such extended 
 insurance in its laws or regulations, nor shall the members of any 
 association which does not, by its laws or regulations, make provis- 
 ion for such extended insurance, have any right to or interest in any 
 fund which any sueh association may have now or may hereafter 
 create, either as a reserve, emergency, surplus or other fund. 
 
 Section 32. Be it further enacted, etc., That such associations 
 shall not employ paid agents in soliciting or procuring members, 
 exei'pt in the organization or building up of subordinate bodies, or 
 granting meml)(>rs inducements to procure new members. 
 
 Section :]3. Be it further enacted, etc., That each and every cer- 
 tiiicate issued by any association operating under the provisions of 
 this Act shall be incontestable on account of erroneous or innocent 
 statements made'in the ajiplication as to age, provided the member 
 was within the age limit for membership at the time of the applica- 
 tion; and provided, fiirther, that in the settlement of any loss, where 
 there was an error as to age, sueh settlement shall be made on the 
 basis of the correct age. But no association operating under the pro- 
 visions of this Act shall contest the age of any member after his 
 death, unless the proof offered by the beneficiary shows the age of 
 llie deceased member to be different from that given in his applica- 
 tion; then the correct age may be ascertained and settlement made 
 as herein provided. 
 
 Section 34. Be it further enacted, etc.. That any person, officer, 
 member or examining physician, who shall knowingly or wilfully 
 make any false or fraudulent statement or representation in or with 
 reference to any application for membership, or for the purpose of 
 obtaining money from or benefit in any association transacting busi- 
 ness under this Act, shall be guilty of a misdemeanor, and upon con- 
 23
 
 354 FRATERNAL SOCIETY LAW 
 
 viction thereof shall be punished by a fine of not less than one 
 hundred dollars nor more than three hundred dollars, or imprison- 
 ment in the parish jail for not less than thirty days nor more than 
 three months, or both, in the discretion of the court; and any person 
 who shall wilfully make a false statement of any material fact or 
 thing in a sworn statement as to the death or disability of a certifi- 
 cate holder in any such association, for the purpose of procuring 
 payment of a benefit named in the certificate of such holder, and 
 an.y person who shall wilfully make any false statement in any veri- 
 fied report or declaration under oath required or authorized by this 
 Act, shall be guilty of perjury, and shall be proceeded against and 
 punished as provided b.y the statutes of this State in relation to the 
 crime of perjury. Any person who shall solicit membership for, or 
 in any manner assist in procuring membership in, any association 
 not licensed to do business in this State, or who shall solicit member- 
 ship for, or in any manner assist in procuring membership in any 
 such association not authorized as herein provided to do business as 
 herein defined in this State, shall be guilty of a misdemeanor, and 
 upon conviction thereof shall be punished by a fine of not less than 
 fifty nor more than two hundred dollars. An.y association, or any 
 officer, agent or emjjloye thereof, neglecting or refusing to comply 
 with, or violating any of the provisions of this Act, the penalty for 
 which neglect, refusal or violation is not specified in this section, 
 shall be fine not less than one hundred dollars nor more than three 
 hundred dollars, or imprisonment in the parish jail for not less than 
 thirty days nor more than three months, iipon conviction thereof. 
 
 Section 35. Be it further enacted, etc.. That the word 'associa- 
 tion,' as used in this Act, shall be taken and construed as meaning a 
 fraternal beneficiary corporation, society, order or voluntary associa- 
 tion as defined by this Act. The words 'domestic association' shall 
 be taken and construed as meaning an association organized or in- 
 corporated under the laws of this State. The words 'foreign asso- 
 ciation' shall be taken and construed as meaning an association 
 organized or incorporated under the laws of another State, territory, 
 district, province or country. The woi'd 'State,' as used in this 
 Act, shall be taken and construed as meaning 'State,' 'Territory,' 
 'District,' 'Country.' or 'Province.' All iirovisioiis of each section
 
 THE STATE OF LOUISIANA 355 
 
 of tliis Act except as otherwise provided shall be taken and con- 
 strued as applying' to l)otli domestic and foreii,'n associations. 
 
 Section 36. Be it further enacted, (itc, That iH)thing contained in 
 this Act shall be construed to require any society to make or cause to 
 be made any valuation of its benefit certificates for any purpose 
 whatever, nor shall the Secretary of State have the right to require 
 or demand that such valuation be made or embraced in th(! report of 
 any fraternal beneficiary society to the insurance department, pro- 
 vided, that every certificate issued by fraternal associations that 
 provides for a fixed benefit, stipulates in a conspicuous manner that 
 in the event the regular payments are iosufficient to pay all matured 
 death and disability claims, the right is reserved thereunder to levy 
 additional assessments to meet such deficiency, otherwise the Secre- 
 tary of State shall value all certificates annually according to the 
 National Fraternal Congress Tables, with four per cent, compound 
 interest. 
 
 Section 37. Be it further enacted, etc., That all laws and parts of 
 laws in conflict with the provisions of this Act, be and the same are 
 hereby repealed. 
 
 Section 38. Be it fui-ther enacted, etc.. That this Act take effect 
 from and after its passage. ' ' 
 
 The State of Louisiana by act approved July 4, 1906, enacted a 
 code relating to certain kinds of so-called Fraternal Societies, which 
 act is, viz. : 
 
 "An Act to define and regulate the business of industrial life insur- 
 ance ; to provide the manner in which foreign and domestic corpor- 
 ations, associations, societies, or fraternal orders doing business 
 of industrial life insurance shall be authorized to do business in 
 this State ; to provide for the making of a deposit with the Treas- 
 urer of the State by such corporations, associations, societies or 
 fraternal orders as a condition precedent to doing business in this 
 State, and to fix the amount thereof. Provided, that foreign cor- 
 porations, associations, relief organizations, societies or fraternal 
 orders that have made sufficient deposit in the State in which they 
 are incorporated, or that have made sufficient deposit in any other 
 State, shall not be required to make such deposit in this State, and
 
 356 FRATERNAL SOCIETY LAW 
 
 fixing penalties for the violation of this Act, and to repeal all laws 
 in conflict with this Act. 
 
 Section 1. Be it enacted by the General Assembly of the State of 
 Louisiana, That industrial life insurance is hereby defined to be 
 that insurance for which the stipulated premiums, advance assess- 
 ments or dues are regularly payable and collectable every four 
 weeks, tri-weeklj^, bi-weekly, weekly, semi-weekly or at any other 
 stated terms less than a month apart, and the policies or benefit cer- 
 tificates for which are for sums of five hundred dollars or less on a 
 single life on which policies or benefit certificates provide a weekly 
 cash benefit for disability, caused by sickness or accident, of twenty 
 dollars per week or less, or which provide for the attendance of a 
 physician or supplying of drugs, or furnishing a funeral. 
 
 Section 2. Be it further enacted, etc.. That all corporations, so- 
 cieties, relief organizations, fraternal orders or associations, with or 
 without capital stock, and having or not having a ritualistic form of 
 government, whether operating under the present insurance laws as 
 insurance companies, or operating under the laws governing fra- 
 ternal beneficiary orders, and issuing policies or benefit certificates 
 and carrying on their l)nsiuess in the manner and within the mean- 
 ing and definition set forth in Section 1 of this Act, shall be held and 
 deemed to be doing an industrial life insurance business and shall 
 be subject to this Act and all the other laws of this State, not re- 
 pugnant to this Act, regulating the business of life, health and acci- 
 dent insurance in this State. 
 
 Section 3. Be it further enacted, etc.. That any corporation, asso- 
 ciation, society or fraternal order organized under the laws of this 
 State, whether organized upon the mutual assessment plan or as a 
 stock company, for the purpose of doing the business of industrial 
 life insurance, as in this Act defined, shall, before commencing to do 
 business in this State, comply with the laws of this State, regulating 
 the manner in which other insurance companies shall be authorized 
 to do business in this State, except that a deposit of one thousand 
 ($1,000.00) dollars, where the membership is one thousand or less, 
 and for every additional one tliousand members oi' fraction of one 
 thousand added to the iuenilu'i-shi|) an additional (lejiosit of five
 
 THE STATE OF LOUISIANA 357 
 
 hundred ($500.00) dollars, uiitU the totiil sum of five thousMiid ($5,- 
 000.00) dollars has been deposited, shall, be made by comi)anies 
 operating upon the i)lan and accortling to the manner specified in 
 this Act. Such deposit shall be made with the State Treasurer of 
 this State in such securities as are now required of surety companies, 
 and shall be held subject to any chiim, liens or judgments that may 
 be judicially obtained aginst them in the courts of this State, or the 
 Federal courts in this State, or arising from any contract of insur- 
 ance or indemnity, entered into in this State, and to be liable to 
 seizure and sale at the instance of any judgment creditor of such 
 companies, under judgment obtained in any of the courts of this 
 State or of the Federal courts in this State against them. 
 
 Section 4. Be it further enacted, etc., That any corporation, asso- 
 ciation, society or fraternal order organized under the laws of any 
 other State upon the mutual assessment plan or as a stock company 
 for the purpose of doing business of industrial life insurance as in 
 this Act defined, shall be authorized to do business in this State 
 upon complying with the other laws of this State regulating the 
 manner in which foreign insurance companies shall be authorized to 
 do business in this State, and filing with the Insurance Commissioner 
 of this State, a certificate from the officer having supervision of the 
 Insurance Department of the State under the laws of which such 
 corporation, association, society or fraternal order was chartered or 
 elects to make its deposit, that such corporation, a.ssociation, society 
 or fraternal order has deposited with said State a sum of not less 
 than five thousand dollars ($5,000.00) in such securities as are re- 
 quired to be deposited by insurance companies in said States. 
 
 Section 5. Be it further enacted, etc.. That the provisions of this 
 Act shall in no way apply to any company, organization or associa- 
 tion or society which does not collect its premiums or dues eveiw four 
 weeks, tri-weekly, bi-weekly, weekly, semi-weekly, or at any stated 
 .terms of days less than a month apart, but any company, organiza- 
 tion, association, society or fraternal beneficiary order, with or with- 
 out a ritualistic form of government, which collects its dues or pre- 
 miums every four weeks, tri-weekly. bi-weekly, weekly, semi-weekly 
 or at any stated terms of days less than a month apart, shall come 
 under the provisions of this Act.
 
 358 FRATERNAL SOCIETY LAW 
 
 Section 6. Be it further enacted, etc., That all officers, directors, 
 managers, employees and agents of foreign and domestic corpora- 
 tions, relief organizations, societies and fraternal orders, who shall 
 conduct or attempt to conduct the business of industrial life insur- 
 ance without having first complied with, or who in any manner vio- 
 late, or refuse or neglect to comply with the provisions and require- 
 ments of this Act, shall be deemed guilty of a misdemeanor, and 
 upon conviction before any court of competent jurisdiction shall be 
 fined not less than fifty dollars ($50.00) or more than two hundred 
 dollars ($200.00), or be imprisoned in the parish jail (parish prison 
 in the city of New Orleans) not less than thirty (30) or more thaa 
 ninety (90) days. 
 
 Section 7. Be it further enacted, etc.. That no law, hereafter 
 passed, shall be held or deemed to refer to the business of industrial 
 life insurance unless the same is expressly referred to in said law. 
 
 Section 8. Be it further enacted, etc., That this Act shall become 
 efliective from and after January first, nineteen hundred and seven, 
 and that all laws and parts of laws in conflict with this Act, be and 
 the same are hereby repealed. ' ' 
 
 By act approved June 30, 1902, the Legislature of the State of 
 Louisiana passed an act providing for a tax on certain Fraternal and 
 Benevolent Societies and while this act does not apply to the ordi- 
 nary Fraternal Society, its embodiment here is deemed proper. The 
 act is as follows : 
 
 "An Act to levy a license tax upon all benevolent or fraternal so- 
 cieties or associations who, through agents, solicit membership 
 from house to house. 
 
 Section 1. Be it enacted by the General Assembly of the State of 
 Louisiana, That each and eveiy benevolent or fraternal society or 
 association Avhich may, through solicitors or agents, solicit member- 
 ship therein from house to house, and who pay compensation to such 
 solicitors or agents for their services, shall pay a license on the said 
 business as follows, to-wit: 
 
 First Class — When the gross annual I'eceipts or collections from 
 tlie members of such society or association shall amount to fifty
 
 THE HTATE OF LOUISIANA 359 
 
 thousaiul (lolhirs or more, the license sluill he three hundred and 
 seventy-five ($375.00) doUars. 
 
 Second Class- — When the said gross annual receipts or collections 
 from the members of such society or association shall amount to 
 forty thousand dollars, and less than fifty thousand dollars, the 
 license shall be three hundred ($300.00) dollars. 
 
 Third Class — When the gross annual receipts or collections from 
 the members of such society or association shall amount to thirty 
 thousand dollars, and less than forty thousand dollars, the license 
 shall be two hundred and twenty-five ($225.00) dollars. 
 
 Fourth Class — When the said gross annual receipts or collections 
 from the members of such society or association shall amount to 
 twenty thousand dollars, or less, the license shall be one hundred 
 and fifty ($150.00) dollars. 
 
 Section 2. Be it further enacted, etc.. That within sixty (60) days 
 from the passage of this Act each of the benevolent oi- fraternal 
 societies or associations engaged in business in this State, shall de- 
 posit with the Secretary of State for recordation, a certified copy 
 of its act of incorporation, together with a copy of the certificate of 
 membership, which is issued by it to its members; and, also, a copy 
 of the form of application for membership ; and no such society or 
 association shall conduct or prosecute any business before a com- 
 pliance with the requirements of this section, and any officer or 
 member of such society or association who shall do any act in fur- 
 therance of the objects and purposes thereof before the requirements 
 of this section shall have been complied with, on conviction thereof 
 before a court of competent .jurisdiction, be fined not more than one 
 hundred dollars, or imprisoned for a period of not more than thirty 
 days, or both, in the discretion of the court. 
 
 Section 3. Be it further enacted, etc.. That all remedies provided 
 in existing laws for the collection of licenses and all penalties for 
 the non-payment thereof, now provided by existing law, or may be 
 provided by future laws, shall apply and be available to all of the 
 licenses imposed by this Act. 
 
 Section 4. — Be it further enacted, etc.. That this Act shall not 
 affect or apply to any secret fraternal organization in this State. 
 
 Section 5. Be it further enacted, etc.. That this Act shall take
 
 360 FRATERNAL SOCIETY LAW 
 
 efieet ironi and after its passage, and all laws or parts of laws in 
 conflict with this Act are hereby repealed." 
 
 The act of the Louisiana Legislature approved July 8, 1898, 
 entitled, 
 
 'An Act to provide for recording and keeping a record in the office 
 of the Secretary of State of all charters of corporations, proofs of 
 publication thereof; amendments thereto, and proceedings rela- 
 tive to the consolidation, dissolution, and liquidation of corpora- 
 tions ; to provide for the use and effect as evidence of extract and 
 certificate from such record, ' ' 
 
 is believed to apply to Fraternal Societies, and is as follows : 
 
 Section 1. Be it enacted by the General Assembly of the State 
 of Louisiana, That all corporations (except those organized for lit- 
 erary, scientific, religious, educational or charitable purposes) here- 
 after doing business in the State of Louisiana, shall tile with the Sec- 
 retai-y of State : First — A duly certified copy of their charters, taken 
 either from the record of the notary before whom the act of in- 
 corporation was passed, or from the record thereof in the office of the 
 recorder in whose office said charter shall have been recorded, to 
 which copy shall be affixed the certificate of such recorder attesting 
 recordation of the acts in his office and giving book and folio of such 
 record, or a published copj^, duly certified by one of said officers. 
 Second — A copy of one issue of the newspaper wherein the said 
 charter shall have been published, when such publication is required 
 by law, together with the affidavit of the publisher, making oath to 
 the fact that said charter was duly published in his paper as required 
 by law. Third — A certified copy of any and all amendments to said 
 charters, taken either from the record thereof in the office of the 
 recorder where the same shall have been recorded, as required by 
 law, or from the records of the notary public before whom the act 
 of incorporation was passed, to which copy shall be attached a cer- 
 tificate of such recorder, attesting the fact that the same has been 
 recorded in his office and giving the book and folio of such record. 
 Fourth — A copy of the minutes of any and all meetings of stock- 
 lidldiTs or directors containing all proceedings of sueli stockhold'Ts
 
 THE HTATK OF LOUIfilANA 3(il 
 
 jiiiil (liiTc'tors in reference to siu'h jiinciKlincnt of charter-, iluly at- 
 tested by the secretary of such corporation, whose signature to such 
 attestation shall be duly acknowledged. Fifth — Any and all agree- 
 ments for the consolidation of corporations, together with copies 
 from the minutes of any meetings of stockholders or directors au- 
 thorizing or pertaining to the consolidation, dissolution, or liquida 
 tion of any corporations, the signatures to such agreements to be 
 duly acknowledged and the copies of such minutes to be duly 
 attested by the secretary of such cm-poi-ation, whose signature to 
 such attestation shall be duly acknowledged. 
 
 Section 2. Be it further enacted, etc., That the Secretary of 
 State shall keep books in which to transcribe and record all of the 
 documents and writings, by the first section of this Act required to 
 be filed in his office (other than the newspapers therein described), 
 which books shall be numbered consecutively, and to which books 
 he shall keep proper indices. 
 
 Section 3. Be it further enacted, etc., That the Secretary of State 
 shall keep on file in his office the newspapers required to be filed 
 with him, as provided in Section 1 of this Act, and he shall make au 
 entry in the book, provided by Section 2 of this Act, attesting the 
 fact that such newspapers have been filed with him and that such 
 charter has been published. 
 
 Section 4. Be it further enacted, etc., That extracts from the 
 books, provided by Section 2 of this Act, dul.v attested by the Sec- 
 retary of State, shall be admissible in evidence in all courts, and 
 shall constitute prima facie proofs of all facts stated in such extracts. 
 
 Section 5. Be it further enacted, etc.. That this Act shall take 
 effect from and after its passage." 
 
 Denial of Liability Waives Necessity for Proofs of Loss. 
 
 The denial of liability is held to be a waiver of proofs of loss, and 
 whether there was such a denial of liability is a question to be de- 
 termined as any other fact necessary to l)e ju-oved. 
 
 St. Landry Wholesale Mer. Co. vs. Teutonia Life Insurance Co., Jan- 
 uary, 1905, 113, La. 1053, 37 So. 967.
 
 -362 FRATERNAL SOCIETY LAW 
 
 Materiality Conceded From Special Enquiry. 
 
 A matter specifically inquired about in a question propounded to 
 a party seeking to obtain a policy of life insurance, and the answer 
 thereto, are equal to the agreement that the matter inquired about 
 is material, and any misrepresentation in the answer will void the 
 policy, though the matter may not have been really material to the 
 risk of the particular case. 
 
 Brignac vs. Pac. Mutual Life Ins. Co., February, 1904, 112 La. 573, 
 36 So. 595. 
 
 Death by Own Act— Suicide. 
 
 The death of a person resulting from morphine administered by 
 himself is in one sense death from his own act, but it is not neces- 
 sarily suicide. And where a clause in a contract of life insurance 
 read, "if I die by my own hand or act, voluntarily or involuntarily, 
 sane or insane," the court said that this was a mere ordinary suicide 
 clause. 
 
 Brignac vs. Pac. Mutual Life Ins. Co., February, 1904, 112 La. 573, 
 36 So. 595. 
 
 Circumstantial Evidence to Prove Suicide. 
 
 In reaching their conclusions as to whether a person has com- 
 mitted suicide, courts are not tied down by the rigid rules of the 
 criminal law. They are authorized to act upon circumstantial, as 
 well as direct evidence. The evidence upon which they act should 
 be weighty, precise, and consistent. 
 
 Brignac vs. Pac. Mutual Life Ins. Co., February, 1904, 112 La. 573, 
 36 So. 595. 
 
 Untrue Answers in Application. 
 
 When answers matle by a party in his application for life insur- 
 ance to questions which are lu-opmuuled to him by the comjiany, 
 were such as might have iiifliu'iici'd tin- company to determine
 
 THE STATE OF LOUISIANA . 363 
 
 whctlici- to accept the risk and to deteriuiiic what premium to charge, 
 the answers must be truthful, and if untrue, tlie contract is avoided. 
 
 Brignac vs. Pac. Mutual Life Ins. Co., February, 1904, 112 La. 573, 
 36 So. 595. 
 
 Forfeiture — Self-executing Provisions. 
 
 A member failed to pay the regular monthly assessment fixed by 
 the by-laws, and which fell due, without notice, on the 31st of 
 October, 1901. On the 26th day of November, following, he died, 
 his assessment still being unpaid. Non-payment of the assessment 
 by itself operated, und'er the by-laws of the society, to effect an im- 
 mediate suspension of the member, and to deprive him of all benefits 
 of his contract, if he should die while under suspension ; and it was 
 held that the by-laws were self-enforcing and binding. 
 
 Feiber vs. Supreme Council American Legion of Honor, May, 1904, 
 112 La. 960, 36 So. SIS. 
 
 r I 
 
 Reduction of Benefits by After-enacted By-law. 
 
 A clause in a benefit certificate, providing that a member agrees 
 to comply with all the by-laws of the society then in existence or 
 that thereafter may be adopted, cannot be held to authorize the 
 society to reduce the amoimt stipulated in the certificate to be paid 
 upon the death of the member, and if assessments on the reduced 
 basis are paid such would not be construed into acquiescence of the 
 reduction in the certificate, when such payments were made under 
 protest, and vnth tender of the full amount that would have been 
 due, if the reduction had not been made. 
 
 Russ vs. Supreme Council American Legion of Honor, March, 1903, 
 110 La. 5SS, 34 So. 697. 
 
 Beneficiary — Idem Sonans. 
 
 A beneficiary named in a certificate being designated by name, 
 with the ■ description that she was the wife of the member, and 
 this member having biit one wife, it was held that there was no un-
 
 364 FRATERNAL SOCIETY LAW 
 
 certainty that might result from calling the beneficiary " Georgia J. 
 Rayne, " instead of "Georgiana Jackson Rayne." 
 
 Russ vs. Supreme Council American Legion of Honor, MaTch, 1903, 
 110 La. 5S8, 34 So. 697. 
 
 Suicide — Accidental Death Presumed. 
 
 Where suicide is pleaded as a defense to an action to recover 
 on an insurance contract, before such defense can be availed of, 
 every reasonable hypothesis of accidental death must be excluded. 
 Under the facts in the case, the member was found dead with a 
 gun-shot wound, and he was alone at the time when the act was 
 committed so far as the evidence showed. 
 
 Boynton vs. Equitable Life Assurance Society, 1900, 105 La. 202. 
 
 Suicide — Use of Opiates — Presumptions. 
 
 On two occasions, the insured took oj^iates which caused him to 
 be ill. This was some time prior to his death. When his body was 
 found, his death having been caused by a gun-shot wound, the 
 court held that it did not follow from the member having taken 
 opiates that the presumption against suicide was de.stroyed, or that 
 the taking of opiates was to be x)resumed with sitieidal intent. 
 
 Boynton vs. Equitable Life Assurance Society, 1900, 105 La. 202. 
 
 Risks Not Assumed — Suicide, Etc. 
 
 The following provision in a contract of insurance was upheld 
 (the facts established a complete defense to the claim upon the con- 
 tract under consideration:) "Death of said member caused by any 
 violation of law, or l).y his own hand, whether sane or insane, volun- 
 tary or involuntary, is not a risk assumed by this contract, within 
 three months from its date, when his disability is thus caused by 
 such a risk at any time." 
 
 The facts proven iipon the trial sliowcil that tlic niriubcr s;iiei<h'(l. 
 
 Wolff vs. Mutual Reserve Fund Life ..ssociation. May 15th, 1S99, 51 
 La. Ann. 1261.
 
 THE STATE OF LOUISIANA 365 
 
 Warranty — Waiver— Estoppel. 
 
 The aj)plii';uit for lii'o insuiMiicc stated in his application that 
 lu^ had never at any time .-ipiilicd for a policy of insurance on his 
 life and been rejected. This was not true. The company when the 
 application was made, had within reach information as to the falsity 
 of this answer, but did not avail itself of this information, and it 
 was held that the company had waived the truth of this riiprcsenta- 
 tion, and was estopped to S(.'t up its falsity as a defense to the con- 
 tract. 
 
 Union Nat'l Bank vs. Manhattan Life Insurance Co., November, ±899, 
 52 La. Ann. 36. 
 
 Warrar.ty — Materiality of Statements. 
 
 A warranty contained in a contract of life insurance must be 
 strictly and literally fulfilled before the insured is entitled to recover 
 on the contract, and the warranty need not be material to the risk. 
 because it is of itself an implied agreement that the representations 
 warranted are material. 
 
 Petitpain vs. Mutual Reserve Fund Life Ass'n, January, 1900, 52 
 La. Ann. 503. 
 
 After-enacted Laws — Suicide. 
 
 A certificate was issued at a time when there was no provision 
 either in the certificate or in the laws of the society providing 
 against death by suicide. Subsequently the society passed a suicide 
 by-law providing for non-liability in cases Avhere the member sui- 
 cided. It was contended that such after-enacted laws were ex post 
 facto, that they diti not luar upon the eontriict but only as to the 
 qualification, and the discipline of the society. Answering this con- 
 tention the Court said : 
 
 "Orders like the defendant association have iu'dtii)lied in recent 
 years. They are organized for the mutual beiu^fit of the members, 
 taking care of the sick and afflicted in life and providing for the 
 fiimily of the deceased memlier after death. Rules and regulations, 
 a constitution and by-laws are enacted for their government. Every
 
 366 FRATERNAL SOCIETY LAW 
 
 member who joins one of these orders does so with the full knowl- 
 edge of its laws and usages. He is bound by the constitution and 
 by-laws and subjects himself to their discipline in order to receive 
 the benefits conferred by the order. There can be no law or regula- 
 tion enacted after his membership that would destroy the benefit 
 agreed to be conferred upon him by the laws and regulations in 
 force at the time he joined the order. His contract of insurance 
 could not be abridged or violated without his consent, but provision 
 is made in the constitution for its amendment, and we see no reason 
 why the members of an association of this kind cannot, like a body 
 politic, change its laws, enact new ones, and discipline its members 
 b.y police regulations. In both cases the members by their vote, par- 
 ticipate in the change bj^ the nde of the majority. In neither case 
 can vested rights be destroyed. The vested right that the deceased 
 had was for his family to receive the sum of $3,000, provided he 
 complied with the laws of the order. There was no vested right 
 in selecting the mode and manner of his death. Had there been 
 no subsequent legislation there would have been no prohibition to 
 the payment, but the order had the right, independent of any stipu- 
 lation or agreement, to say that no member should take his own 
 life and receive for his family the benefit of the policy. It was a 
 matter of legislation in which each member, through representation, 
 assented. It was a police regulation in the interest of the disciplin ■ 
 and welfare of the endowment rank." 
 
 Daugherty vs. Knights of Pythias, June, 1896, 48 La. Ann. 1203; 
 20 So. E. 713; 55 Am. St. 310. 
 
 After-enacted Suicide Laws Applicable to Outstanding Contracts. 
 
 A certificate issued to a member contained among other things the 
 following agreement, — 
 
 "and in consideration of the payment hereafter to said endowment 
 rank of all monthly payments as required, and the full compliance 
 with all the laws governing this rank now in force or that may here- 
 after be enacted, and shall be in good standing under such laws," 
 etc. 
 
 Subsequently a suicide by-law was enacted, and thereafter the 
 holder of the certificate suicided. In considering the applicability
 
 THE STATE OF LOUISIANA ;567 
 
 of the arter-eiiactrd suicide by-law to this coiiti'uct, tlie court said 
 "in the certiticate it is stated that if any of the requirements of thi' 
 laws in force governing the endowment rank sh^dl be violated, the 
 Supreme Lodge of the Order shall not be liable for the amount of 
 the policy. The certificate covers both the laws which may there- 
 after be enacted governing the endowment rank, and the good stand- 
 ing of the members under the existing regulations. After this cer- 
 tificate was issued to F. A. Daugherty, the law was enacted by the 
 proper authority, and approved by the Supreme Lodge forfeiting 
 the policy on account of suicide. Any law enacted in pursiiance of 
 this agreement is the voluntary consent of the members of the Order 
 made for their mutual benefit and by their proper representatives. 
 
 Daugherty vs. Knights of Pythias, June, 1S9G. 48 La. Ann. 1203; 
 20 So. E. 713; 55 Am. St. 310. 
 
 Warranties Versus Representations. 
 
 In discussing warranties and representations and the distinctions 
 sometimes made between same, the court said : 
 
 "Whether this certificate be designated a warranty or a repre- 
 sentation, it was undoubtedly a matter from which the defendant 
 was to decide the course it was to pursue as to the future. * * * 
 It was not a question of supposition or belief to which it was asked 
 to certify, but a matter of fact. When it certified to something 
 which was not true we think it destroyed a basis upon which the 
 contract was granted." 
 
 Winkler vs. Fidelity and Deposit Co., Supreme Court of La., June, 
 1907, 44 So. 449. 
 
 Warranty — Untrue Answers Avoid Contract. 
 
 A contract of life insurance was is.sued December 3rd, 1903, and 
 twenty days later the assured was examined by two physicians who 
 discovered a cavity in one of her lungs, the assured dying February 
 23rd, 1905. For several years prior to the date of the policy the 
 assured had suffered from a chronic cough which kept growing 
 worse and finally developed into consumption. The court said:
 
 368 FRATERNAL SOCIETY LAW 
 
 "Ihe discover.y of a cavit.y in the lung twenty days after she was 
 examined for insurance, and her subsequent death from consumption 
 leave little doubt in the lay mind that she had that dread disease 
 when she was insured. There can be no doubt however from the 
 evidence that she had been suffering from a chronic and persistent 
 cough for several years antedating her application, that she had 
 at the time either bronchitis or consumption. " 
 
 The application stated that the answers made to the medical 
 examiner were true and it was agreed that if they were untrue the 
 contract should be avoided. In the answers made to questions asked 
 in the medical examination, the applicant denied that she was suf- 
 fering froni consumption, and it was held by the court that under 
 the facts in the case, the answers were untrue and the contract was 
 avoided. 
 
 Bertrand vs. Franklin Life Ins. Co., Supreme Court of Louisiana, 
 June, 1907; 44 So. 186.
 
 THE STATE OF MAINE 369 
 
 THE 
 
 STATE OF MAINE. 
 
 CHAPTER 20. 
 
 (The Section uumbers employed correspond to those in Chapter 49, 
 \l. S. of Me.) 
 
 Section 134. A fraternal' beneficiarj^ association is hereby defined 
 to be any corporation, society or voluntary association, formed or 
 organized and carried on for the sole benefit o^ its members and 
 their beneficiaries, and not for profit. Each association shall have 
 a lodge system, with ritualistic form of work and representative form 
 of government, and shall make provision for the' payment of benefits 
 in case of death, and may make provision for the payment of benefits 
 in the case of sickness, temporary or permanent physical disability, 
 either as the result of disease, accident or old age, provided the 
 l)eriod in life at which payment of physical disability benefits on 
 account of old age commences, shall not be under seventy years, 
 sulijeet to their compliance with its constitution and laws. The 
 fund from which the payment of such benefits shall be made, and 
 tlie fund from which the expenses of such association shall be de- 
 frayed shall be derived from assessments or dues collected from its 
 members. Payments of death benefits shall be to the families, heirs, 
 blood relatives, adopted children, adopting parents, affianced hus- 
 band or affianced wife of, or to persons dependent upon the member. 
 Such associations shall be governed by the last twenty-four sections 
 of this chapter and shall be exempt from the provisions of insurance 
 laws of this State, except as therein provided and no law passed 
 after March twenty-one, nineteen hundred and one, shall apply to 
 them unless they be expressly designated therein. Any such fra- 
 24
 
 370 FRATERNAL SOCIETY LAW 
 
 ternal beneficiarj- association may create, maintaiu, disburse and 
 apply a reserve or emergency fund in accordance with its consti- 
 tution or by-laws. 
 
 Section 135. Seven or more persons, residents of the State, desh-- 
 ing to form a fraternal beneficiary corporation for the purposes 
 above provided, and having signed an agreement therefor, declaring 
 therein the jjurposes of such corporation, may organize as such in 
 the manner provided in sections one, two and three of chapter fifty- 
 seven, and such corporation shall have all the powers, privileges and 
 immunities, and be subject to all the liabilities named in said section 
 three. 
 
 Section 136. The president, secretary, and a majority of the 
 directors, or other officers corresponding thereto, shall forthwith 
 make, sign and swear to a certificate setting forth a true copy of 
 the agreement and declaration of the purposes of the association, 
 with the names of the subscribers thereto, the date of the first 
 meeting, and the successive adjournments, if any, and shall sub- 
 mit such certificate and the records of the corporation to the insur- 
 ance commissioner, who shall make such examination and require 
 such evidence as he deems necessary; and if it appears that the pur- 
 poses of the corporation conform to laAv. he shall certify his approval 
 thereof, and the certificate shall then be filed by said officer in the 
 office of the secretary of State, who shall cause the same with the 
 indorsements, to be recorded, and shall thereupon issue a certificate 
 in the following form : 
 
 "STATE OF MAINE. 
 
 Be it known that whereas" (here the names of the subscribers 
 to the agreement of the association shall be inserted), "have asso- 
 ciated themselves with the intention of forming a corporation under 
 the name of" (here the name of the corporation shall be inserted) 
 "for the purpose" (here the purpose declared in the agreement of 
 association shall be inserted), "and hace complied with the provi- 
 sions of the statutes of this State in such ease made and provided, 
 as appears from the certificate of the officers of the corporation, 
 duly approved by the insurance commissioner and recorded in this 
 office: Now, therefore, I" (here the name of the secretary shall be
 
 THE STATE OF MAINE 371 
 
 inserted), "Secretary of tlic State of Maine, do liereby certify tliat 
 said" (here the names of the subscribers to the agreement of asso- 
 ciation shall be inserted), "their associates and successors, are 
 legally organized and established as and are hereby made an exist- 
 ing corporation under the name of" (here the name of the corpora- 
 tion shall be inserted), "with the powers, rights and privileges, and 
 subject to the limitations, duties and restrictions which by law apper- 
 tain thereto. Witness my official signature hereunto subscribed, and 
 the seal of the State of Maine hereunto aifixed, this day of 
 
 in the year " (day, month and year inserted). 
 
 The secretai-y shall sign the same and cause the seal of the State 
 to be thereto affixed, and such certificates shall be conclusive evi- 
 dence of the existence of such corporation at the date of such certifi- 
 cate. He shall cause a record of such certificate to be made, and a 
 certified copy of such record may be given in evidence, with like 
 effect as the original certificate. 
 
 Section 137. No charter granted under the provisions of the 
 two preceding sections shall be valid after one year from its date 
 unless the organization has been completed and business begun 
 thereunder, and when any domestic corporation has discontinued 
 business for the period of one year its charter shall become null and 
 void. 
 
 Section 138. Any fraternal beneficiary corporation existing ixnder 
 the laws of this State, and engaged in transacting business herein 
 on March twenty-one, nineteen hundred and one, may reincorporate 
 under the foregoing provisions ; provided, that nothing herein con- 
 tained shall be construed as requiring any such corporation to rein- 
 corporate ; and any such corporation may continiie to exercise all the 
 rights, powers and privileges conferred by the last twenty-four sec- 
 tions of this chapter, and its articles of incorporation not inconsistent 
 herewith, and shall be subject to the requirements and penalties of 
 said sections the same as if reincorporated thereunder. 
 
 Section 139. No association hereafter organized under the pro- 
 visions of sections one hundred thirty-five and one hundred thii-ty- 
 six shall incur any liability or issue any benefit certificate until it 
 has received from the insurance commissioner a certificate to the 
 effect that it has complied with the reqiiirements of law and is duly 
 authorized to transact business in this State. Before such certificate
 
 372 FRATERNAL SOCIETY LAW 
 
 is granted the association must present satisfactorj^ evidence to the 
 insurance commissioner that it has established mortuary assessment 
 rates which are not lower than those now indicated as necessary by 
 the National Fraternal Congress Mortality Tables and that at least 
 five luiudred pei-sons have each paid one advance mortuary assess- 
 ment on the rates so established and become a bona fide member of 
 a local branch of the association, and that it has deposited with the 
 treasurer of State at least one thousand dollars as a part of its 
 emergency or reserve fund for the benefit and protection of certifi- 
 cate holders in said association, which fund shall be held and used 
 as hereinafter provided. 
 
 Section 140. Each such association organized under the foregoing 
 provisions, after March twenty-one, nineteen hundred and one, shall, 
 on or before the thirty-first day of December in each j^ear deposit 
 with the treasurer of State to the credit of its emergency or reserve 
 fund not less than fifteen per cent, of its total mortuary receipts 
 for the year then ending, until the amount to deposited amounts 
 to not less than fifty thousand dollars. These amounts shall 
 be deposited in such interest bearing securities as any insurance 
 company or savings bank may fi'om time to time by law invest its 
 funds in, and the securities shall be held in trust by the treasurer of 
 state, but the association shall have at all times the right to exchange 
 any part of said securities for others of like amount and character, 
 and the income from said fund shall be paid by said treasurer to the 
 association. When deemed advisable by the majority of the direc- 
 tors, or other officers corresponding thereto, such part of the fund as 
 may be considered necessary, may with the written approval ol' 
 the insurance commissioner, be applied from time to time to the 
 payment of death benefits but for no other purpose; provided, hew- 
 ever, tliat such fund shall not at any time be reduced below an 
 amount equal to one assessment or periodical call upon all of its 
 members, nor to less than one thousand dollars. The insurance com- 
 missioner shall annually, in February, certify to the treasurer of 
 State, the minimum amount of reserve fund required to be kept on 
 deposit in the treasurj'- by each such association doing business under 
 this chapter. If said association shall neglect for sixty days to 
 satisfy any judgment against it, in any court in this State, then Ihr
 
 THE STATE OF MAINE ;:57;j 
 
 said treasurer shall convert into money any of said securities, :mil 
 forthwith satisfy such judgment, and said association shall not trans- 
 act any further business until said deposit is restored. When any 
 such association shall discontinue business, any justice of the su- 
 preme judicial court may appoint a receiver or agent to administer 
 any unexhausted portion of such fund which shall be used, less 
 compensation not to exceed five per cent., as such court or justice 
 may allow the receiver or agent; first, in the payment of accrued, 
 mortuary or indemnity claims upon certificates or policies, or if in- 
 sufficient to pay such claims in full, they shall be paid pro rata; 
 second, if a balance remains after the payment of such claims, such 
 balance to be distributed to the holders of certificates then in force, 
 pro rata, in accordance with the total mortuary payments of said 
 members, after first paying all expenses incident to such distribu- 
 tion. If, upon the thirty-first day of December of any year, the 
 emergency or reserve fund of any such association is found to be 
 less than the amount of one assessment or periodical call upon all 
 the members thereof, said association shall, within six months there- 
 after, collect from its members a sum sufficient to bring said emer- 
 gency or reserve fund up to one assessment or periodical call upon all 
 its members, and deposit the amount with the treasurer of State to 
 the credit of said fund. 
 
 Section 141. No such association shall reinsure with or transfer 
 its membership certificates or funds to any organization, unless the 
 , said contract of transfer or reinsurance is first submitted to and 
 approved by a two-thirds vote of the members of each association 
 present at meetings called to consider the same, of which meetings 
 written or printed notice shall be mailed to each certificate holder at 
 least thirty days before the date fixed for said meeting, nor unless 
 the said contract of transfer or reinsurance is first submitted to and 
 approved by the insurance commissioner. The members of fraternal 
 beneficiary associations shall not vote by proxy. 
 
 Section 142. Fraternal beneficiary associations organized under 
 the laws of another State or country which were transacting busi- 
 ness in this State as herein defined, on the twenty-eighth day 
 of February, eighteen hundred and eighty-nine, or which sub- 
 sequently thereto have been legally admitted to transact Inisi-
 
 374 FRATERNAL SOCIETY LAW 
 
 ness in this State and which now report or which shall report 
 when requested to the insurance commissioner, may continue such 
 business subject to the provisions of the last twenty-four sec- 
 tions of this chapter. A fraternal beneficiary association which 
 was not transacting business in this State on the twenty-eighth day 
 of February, eighteen hundred and eighty -nine, and which has not 
 since been legally admitted to transact business therein and which 
 may after March twentj^-one, nineteen hundred and one, desire to do 
 so, shall first obtain a license therefor from the insurance commis- 
 sioner. Before receiving such license it shall file with the commis- 
 sioner a duly certified copy of its charter or articles of association 
 and a copy of its constitution or laws, certified by its secretary or 
 corresponding officer, a power of attorney to the commissioner, as 
 hereinafter provided; a statement under oath of the president and 
 secretary, or corresponding officers, in the form required by the 
 commissioner, of its business for the preceding year; a certificate 
 from the proper official in its home State or country, that the com- 
 pany is legally organized and that similar associations of this State 
 may be admitted to transact business in said State or country; a 
 copy of its application and policy or certificate, which must show 
 that benefits are provided for by assessments upon persons holding 
 similar contracts, and shall furnish the commissioner with such 
 other information as he may deem necessary to a proper exhibit 
 of its business and standing and plan of working, and if he deems 
 it expedient he may license such association to do business in this 
 State in accordance with the provisions of this chapter; provided, 
 however, that no license shall be issued to any such company unless 
 it shall have adopted and have in force mortuary assessment rates 
 which are not lower than those now indicated as necessary by the 
 National Fraternal Congress Mortality Tables. 
 
 Section 143. Each such association which, on March twent.v-one, 
 nineteen hundred and one, was doing or was thereafter admitted 
 to do, busine.ss within Hi is State, and not having its principal office 
 within this State, and not being organized iinder the laws of this 
 State, shall appoint in writing the insurance commissioner and his 
 successors in office to be its true and lawful attorney, U|)nn whom all 
 lawful process in any action or proceeding against it shall be served,
 
 THE STATE OF MAINE 375 
 
 and in such writing shiill agree tliiit any lawful process against it 
 which is served on said attorney shall be of the same legal force and 
 validity as if served upon the association, iind that the authority 
 shall continue in force so long as any liability remains outstanding 
 in this State. Copies of such appointment, certified by said insurance 
 commissioner, shall be deemed sufiicient evidence thereof, and shall 
 be admitted in evidence with the same force and effect as the 
 original thereof might be admitted. Service upon such attorney 
 shall be deemed sufficient service upon such association. When legal 
 process against any such association is served upon said insurance 
 commissioner, he shall immediately notify the association of such 
 service by letter, prepaid and directed to its secretary or correspond- 
 ing officer, and shall within two days after such service forward in 
 the same manner a copy of the process served on him to such oiScer. 
 
 Section 144. No cei'tificate issued by any such association trans- 
 acting business under this chapter shall be valid or legal which shall 
 be conditional upon an agreement or understanding that the benefi- 
 ciai'y shall pay the dues and assessments, or either of them for said 
 member. Every call for a jjayment by the policy or certiiicate 
 holders shall distinctly state the purpose of the same. No part of 
 the money collected for mortuary or indemnity purposes or for the 
 emergency or reserve fund shall be used for expenses ; provided, 
 that any such association transacting business in this State on IMarch 
 twenty-one, nineteen hundred and one, and whose laws provide for 
 and which is now using such funds for expenses, may continue to do 
 so, but not to exceed the amount named for that ])urpose in such 
 existing laws. 
 
 Section 145. Any association authorized to transact business as 
 defined in the last twenty-four sections of this chapter, may employ 
 paid agents in soliciting business but no person shall act as such 
 agent until the association or its authorized manager has filed with 
 the insurance commissioner a certificate certifying that such person 
 has been appointed as the agent of the association. Upon receiving 
 such certificate the commissioner may issue a license to such person, 
 authorizing him to transact business in this State in accordance with 
 the provisions of said sections and such license shall expire on the 
 first dav of the next Julv, but no license shall be issued under the
 
 376 FRATERNAL SOCIETY LAW 
 
 provisions of this section to firms or corporations. If any person 
 acts as such agent without first receiving such license, or fraudu- 
 lently assumes to be an agent and solicits or procures risks or 
 receives money for premiums or assessments, he forfeits not less 
 than fifty dollars nor more than one hundred dollars for each ofl'ense, 
 but anj' policy or certificate issued on such application binds the 
 association, if otherwise valid. 
 
 Section 146. Any person who shall solicit membership for, or in 
 any manner assist in procuring membership in any such association 
 doing business not authorized by sections one hundred and thirty- 
 four to one hundred and fifty-seven inclusive, or who shall solicit 
 membership for, or in any manner assist in procuring membership 
 in any such association not authorized, as herein provided, to do 
 business as therein defined, in this State, shall be punished by a fine 
 of not less than fiftj'^, nor more than two hundred dollars. 
 
 Section 147. Every association doing business as a fraternal 
 beneficiary a.ssociation as herein defined shall annually, on or before 
 the first day of March, report to the insurance commissioner the 
 names and addresses of its president, secretary and treasurer, or 
 other officers corresponding thereto, and shall make under oath such 
 further statements of its membership and financial transactions for 
 the year ending on the preceding thirty-first day of December, with 
 other information relating thereto, as said commissioner may deem 
 necessary to a proper exhibit of its business and standing ; and the 
 commissioner may at any other times require any further statement 
 he may deem necessary to be made relating to such association. 
 Anj' such association wliich neglects or refuses to make the returns 
 required by this section shall forfeit five dollars a day for each day's 
 neglect; and for wilfully making a false statement, the association 
 and the persons making oath thereto, or subscribing the same, shall 
 severally be i)unished by a fine of not less than one hundred, nor 
 more than five hundred dollars. 
 
 Section 148. The money or other benefit, charity, relief or aid to 
 be paid, provided or rendered, or which has been paid, provided or 
 rendered l)y any fraternal beneficiary association authorized to do 
 business under this chapter, and as heretofore provided, shall not 
 !)(' lialiJr III attachment by trustee, or otbri- process, and sliall not be
 
 THE STATE OE MAINE 377 
 
 seized, taken (ii- appniin-iuted, or applied by any legal or equitable 
 process, nor 1>.\- operation of law, to pay any debt or liability oi' a 
 certificate holder, oi- any beneficiary thereof, existing ;it the death of 
 such holder; provided that the foregoing provisions shall not apply 
 to debts contracted for the purpose of paying assessments or dues 
 in order to keep such certificates in force. 
 
 Section 1-1:9. Any solicitor, agent or examining physician, who 
 shall knowingly or wilfully make any false or fraudulent statement 
 or representation in or with reference to any application for mem- 
 bership, or for the purpose of obtaining any money or benefit, in any 
 such association transacting business under this chapter, shall be 
 punished by a fine of not less than one hundred, nor more than five 
 hundred dollars, or by imprisonment not less than thirty days nor 
 more than one year ; and any person who shall wilfully make a false 
 statement of any material fact or thing in a sworn statement as to 
 the death or disability of a certificate holder in any such association, 
 for the purpose of procuring the payment of the benefit named in 
 the certificate of such holder, shall be guilty of perjury, and upon 
 conviction, shall be punished accordingly. 
 
 Section 150. Nothing contained in the last twenty-four sections 
 of this chapter shall be construed to affect or apply to grand or 
 subordinate lodges of Masons, Odd Fellows, Knights of Pythias or 
 similar orders, organized or incorporated under the laws of this 
 State, and which do not have as their principal object the issuance 
 of insurance certificates. Nor shall anything therein contained apply 
 to domestic corporations or voluntary associations which limit their 
 membership to the employees of a particular city or town, designated 
 firm, business house or corporation ; nor to domestic lodges, orders 
 or associations of a purely religious, charitable and benevolent de- 
 scription which do not operate with a view to profit and which do 
 not provide for a funeral benefit or more than one hundred dollars, 
 or sick or disability benefits of more than one hundred and fifty 
 dollars, to any one person in any one year. Provided always, that 
 any association which has more than three hundred members and 
 which issues to any person a certificate providing for the payment of 
 benefits shall not be exempt by the provisions of this section, and 
 such associations shall comply with all requirements of this chapter
 
 378 FRATERNAL SOCIETY LAW 
 
 relating to frali-iual beneficiary associations. The insurance com- 
 missioner may require of anj- association such information relating 
 to its membership and certificates as will enable him to determine 
 whether it is exempt from the provisions hereof. And no associa- 
 tion which is exempt by the provisions of this section from the re- 
 quirements hereof, shall employ paid agents or give or allow to any 
 person any compensation for procuring new members. 
 
 Section 151. The insurance commissioner, in person or by deputy, 
 shall have the power of visitation and examination into the affairs 
 of any domestic association subject to the provisions of this chapter 
 relating to fraternal beneficiary associations, that are conferred 
 upon him hy the provisions of this chapter, provided, that he shall 
 not be required to make periodical examinations of domestic associa- 
 tions. Whenever after examination the commissioner is satisfied 
 that any domestic association is not paying the maximum amount 
 named in its policies or certificates in full or is in such condition as 
 to render further proceedings hazardous to the public or its policy- 
 holders or is transacting its business fraudulently ; or whenever such 
 domestic association shall, after the existence of one year or more, 
 have a membership of less than three hundred, the insurance com- 
 missioner may present the facts in relation to the same to any justice 
 of the supreme judicial court ; and said justice shall thereupon notify 
 the officers of such association of a hearing and unless it shall then 
 appear that some special and good reason exists why the associa- 
 tion should not be closed, some person sliall be appointed receiver 
 of such association and shall proceed at once to take possession of 
 the l)ooks, pa])ei's, moneys and other assets of the association, and 
 shall forthwitli, under the direction of the court proceed to close the 
 afi'airs of such association and to distribute to those entitled thereto 
 its funds in the manner provided in section one hundred and forty. 
 For this service the receiver may be allowed out of any funds in 
 possession of the association or which may come therefrom into his 
 hands, such sum as the court may determine to be reasonable and 
 just. When the affairs of the association .shall be finally closed, the 
 court shall decree a dissolution of the same. 
 
 Section 152. Fi'aternal beneficiary associations, organized or in- 
 corporated under the laws of this State, which were transacting
 
 THE STATE OF MAINE 379 
 
 business herein on March twonty-ono, nineteen hundred and one, 
 and which limit their membership to the members of some particular 
 order, class or fraternity may continue. such business by complying 
 with the jjrovisions hereof not inconsistent therewith. 
 
 Section 153. Whenever the commissioner deems it prudent for 
 the protection of the policy or certificate holders in this State he, 
 or any person whom he may appoint, may examine any foreign 
 fraternal beneficiary association applying for admission or trans- 
 acting business in this State and such association shall pay the ex- 
 penses of the examination. The commissioner may employ assistants 
 and for the purposes aforesaid he, or any person he may appoint, 
 shall have free access to all the books and papers that relate to the 
 l)usiness of such association and to the books and papers kept by 
 an.y of its organizers and may summon and qualify as witnesses 
 under oath, and examine the directors, officers, agents, organizers 
 and trustees of such association and other persons in relation to its 
 aft'airs, transactions and condition. He may accept in lieu of such 
 examination the examination of the insurance department of the 
 state or country where such foreign association is organized. 
 
 If anj' such association, or its officers or agents, refuse to submit 
 to such examination or to comply with the provisions of this section 
 relating thereto, the authority of such association to transact busi- 
 ness in this State shall lie suspended until satisfactory evidence is 
 furnished the commissioner relating to the .standing and affairs of 
 the association, and during such suspension the association shall not 
 transact any business in this State. 
 
 When the commissioner, on investigation, is satisfied that any 
 association organized under the laws of another State or country 
 and transacting business iinder the last twenty-four sections of 
 this chapter has exceeded its powers, or has failed to comply with 
 an.y provision of law, or is conducting business fraudulentl.y, or that 
 its condition is such as to render further proceedings hazardous to 
 the public or to its certificate holders, or in case any such association 
 shall vote to discontinue its business, he shall notify the president 
 and secretary, or other officers corresponding thereto of his findings, 
 and state the grounds of his dissatisfaction and after thirty days' 
 notice require said association, on a date named, to show cause why
 
 3y0 FRATERNAL SOCIETY LAW 
 
 its license should not be revoked and its authority to transact busi- 
 ness in this State terminated. If on the date named in said notice 
 such objections have not been removed to the satisfaction of the 
 commissioner, or the association does not present good and sufficient 
 reasons why its authority to transact business in this State should 
 not at that time be revoked, he may revoke the authority of such 
 association to continue business in this State. 
 
 "When the commissioner suspends or revokes the authority of any 
 association to contiue business in this State, or on application refuses 
 to countermand such suspen.sion or revocation the association may 
 within thirty days apply to any justice of the supreme judicial court, 
 by presenting to him a petition therefor, in term time or vacation, 
 and he shall fix a time and place of hearing which may be at cham- 
 bers and in vacation, and cause notice thereof and a copy of said 
 petition to be served on the commissioner, and after said hearing he 
 may affirm or reverse the decision of the commissioner and the 
 decision of such justice shall be final. 
 
 Section 15-t. No association organized or doing business under 
 the last twenty-four sections of this chapter shall issue any policy or 
 certificate upon the life of any person more than sixty years of age: 
 nor on the life of any person who has not been examined by a re- 
 putable, practicing physician and passed a satisfactory medical ex- 
 amination. No person shall be admitted to membership in any such 
 organization unless he has first filed an application with and been 
 initiated in and becomes a member of a local branch. The by-laws 
 of such association shall provide that meetings of such branches 
 shall be held at least once each month. 
 
 Section 155. When the laws of any State or country under whicli 
 any such association is organized or incorporated impose on fraternal 
 associations of this State any additional or greater fees, fines, penal- 
 ties, prohibitions or obligations than are imposed hereby upon similar 
 associations of other States or coiuitries. the same fees, fines, penal- 
 ties, prohibitions or obligations shall be imposed upon the associa- 
 tions of such State or country applying for admission or transacting 
 business in this State. 
 
 Section If)!). Any association neglecting or refusing to comply 
 with, or \-iiiliiting Ihc pnivisioiis hereof relating to fraternal benefi-
 
 THE STATE OF MAINE 381 
 
 ciary associatidiis. shall Ix.' fined iiol cxccciling- two hundred dollars 
 upon conviction thci-tMil'. I'rosucutiOns for such violations may be 
 coiumeuced by eonii)laint and warrant before any municipal or police 
 judge or trial justice as in the case of other offenses not within the 
 final jurisdiction of such judge or justice, as i)rovided in section 
 live of cha})ter one hundred and thirty-three. 
 
 Section 157. The word "association" as used in the twenty- three 
 preceding sections shall be taken and construed as meaning a cor- 
 poration, society or voluntary association. 
 
 Section 158. Fraternal beneficiary associations transacting busi- 
 ness in this State on the twenty-eighth day of February, eighteen 
 hundred and eighty-nine, as heretofore defined and named in section 
 one hundred and forty-two of this chapter, shall be construed to 
 include those so transacting business through their supreme bodies, 
 or by a subordinate body, or by one affiliated therewith or rendering 
 allegiance thereto, or by an organization embracing a portion of 
 the territory of any such association and at that time or subsequent 
 thereto contributing to its funds, or by one using its ritualistic work 
 and calling its members b.y the same general name; and no change 
 since that time or hereafter, in the internal divisions or operations 
 of any such association, or its relations with subordinate bodies, 
 shall deprive it of the power to so transact business through its 
 supreme body and subordinate and affiliated divisions or agents, or 
 to prevent such subordinate or affiliated bodies from doing business, 
 so long as death benefits are paid, and they shall be considered as 
 legally organized and duly authorized for such purpose under the 
 provisions hereof and may transact business in this State as inde- 
 pendent bodies only in the event that said supreme body shall cease 
 to transact business herein. 
 
 An Act additional to Chapter forty-nine of the Revised Stitutes, 
 relating to Insurance. 
 
 Section 1. Any association organized or incorporated under the 
 laws of another State or country as a fraternal beneficiary associa- 
 tion and which does not conduct its business upon the lodge system 
 with a ritualistic form of work and a representative form of govern- 
 ment, in accordance with the provisions of section one hundred and
 
 382 FBATEEXAL SOCIETY LAW 
 
 thirty-four of chapter forty-nine of the revised statutes, and which 
 is not subject to the statutes of this State regulating fraternal benefi- 
 ciary associations, but which confines its membership to the members 
 of some particular order, class or fraternity, and which has the mem- 
 bership and qualifications herein required, may be licensed by the 
 insurance commissioner to transact the business of casualty insur- 
 ance on the assessment plan and to provide for the payment of death 
 or funeral benefits of not exceeding one hundred dollars to the 
 beneficiaries of deceased members, subject to and in accordance with 
 the provisions of this act. 
 
 Section 2. No such association shall transact any business in this 
 State without a license from the insurance commissioner. Before 
 receiving such license it shall file with the commissioner a duly 
 certified copy of its charter or articles of association ; a copy of its 
 constitution and by-laws certified by its secretary; a power of at- 
 torney to the commissioner as provided by section one hundred 
 fortj'-three of chapter forty-nine ; a statement under oath of its 
 president and secretary, in the form required bj' the commissioner, 
 duly verified by an examination made in accordance with the pro- 
 visions of section one hundred fifty-three of chapter forty-nine of 
 its business for the preceding .year, which statement and examination 
 must show that the association had at least five thousand members 
 in good standing at the date of such report, and that it had on that 
 date available assets in excess of all known liabilities of not less than 
 twenty thousand dollars; a copy of its policy and application which 
 must show that benefits are provided for by assessments upon or 
 other payments by persons holding similar contracts, a certificate of 
 deposit from the State treasurer of this State as hereinafter provided, 
 and shall furnish the insurance commissioner with such further infor- 
 mation cs he may deem necessary to a proper exhibit of its business 
 and plan of working. Upon compliance with the foregoing provisions 
 the commissioner may license such association to transact busi- 
 ness in this State as herein defined until the first day of the succeed- 
 ing July, and such license may thereafter be renewed annually, but 
 in all cases to terminate on the first day of the next succeeding July. 
 The provisions of sections one hundred and twenty-nine, one hundred 
 and forty-three, one hundred and forty-five, one hundred and forty-
 
 THE STATE OF MAINE 383 
 
 seven, one huiiilrcd juul I'orty-eiyht, one Imndn'd mid i'i)rty-iiiijc and 
 (ine liundi'ed and tit'ty-three of chapter forty-uine shall ajiply to such 
 associations. 
 
 Section 3. No license shall lie issued to any such association until 
 it has deposited with the State treasurer of this State securities 
 which are a legal investment for savings banks of this State amount- 
 ing to not less than the maximum policy issued by such association 
 nor to less than one thousand dollars. '1 he St;ite treasurer shall 
 receive such securities and hold the same on deposit and in trust for 
 the benefit of all the policy holders of the a.ssociation in this State, 
 and shall receipt for and hold the same in the manner provided in 
 sections sixty and sixty-one of said chapter forty -nine, but he shall 
 retain and hold the same as long as any liability remains outstanding 
 in this State. Whenever any judgment obtained in a court of com- 
 petent jurisdiction in this State, by a policy holder or any beneficiary 
 thereof, remains unsatisfied for more than sixty days after legal 
 demand upon the association, and no appeal from the decision of said 
 court is pending, said court may issue an order directing said State 
 treasurer to immediately convert so much of said deposit as may be 
 necessary into cash and to forthwith satisfy said judgment and such 
 additional costs appertaining thereto as said court may allow, and 
 said treasurer shall immediately comply with said order, and the 
 association shall not transact any further business in this State until 
 such deposit is restored. When anj' such association discontinues 
 business in this State, and the insurance commissioner is satisfied 
 upon investigation that the association has no liabilities outstanding 
 therein, he shall so certify to the State treasurer, who shall there- 
 upon return said deposit to the association. 
 
 Section 4. Every call for a payment by the policy holdei-s of any 
 such association shall distinctly state the purpose of the same, and no 
 part of the money collected for the payment of indemnity claims or 
 death or funeral benefits and no part of the reserve or emergency 
 fund shall be used for expenses. 
 
 Section 5. Except as otherwise herein provided, the fees for 
 license to the association or its agents or any renewal thereof or for 
 any act or service of the insurance commissioner or the State treas- 
 urer shall be the same as is provided by section seventeen of chapter
 
 384 FRATERNAL SOCIETY LAW 
 
 one hundred and seventeen of the revised statutes for life insurance 
 companies. 
 
 Section 6. This act shall take effect when approved. 
 
 Approved March 17, 1905. 
 
 The following sections of the law are here included because of 
 their possible relation to Fraternal Societies: 
 
 An Act additional to Chapter forty-nine of the Revised Statutes, 
 relating to Insurance and Insurance Companies. 
 
 Be it enacted by the Senate and House of Representatives in 
 J-iCgislature assembled, as follows: 
 
 Section 1. Every policy of insurance issued to a resident of Maine 
 by any insurance company, except a domestic life or stock insurance 
 company, which contains a reference to the application of the in- 
 sured, either as a part of the policy or as having any bearing thereon, 
 nuist have attached thereto a correct copy of the application, and 
 unless so attached the same shall not be considered a part of the 
 policy or received in evidence. Each application for such policy 
 shall have printed upon it or upon a slip attached thereto in large 
 bold-faced type the following words : ' ' Under the laws of Maine, each 
 applicant for a policy of insurance to be issued hereunder is en- 
 titled to be furnished with a cojiy of this application attached to any 
 policy issued thereon." 
 
 Section 2. Any iutsoii u-lio knowingly or wilfully makes a false 
 or fraudulent statement or representation in or relative to any appli- 
 cation for accident, health or casualty insurance, or who makes any 
 such statement for the purpose of obtaining a fee, commission, money 
 iiv benefit in a corporation transacting such business in this State, 
 shall be punished by a fine of not less than one hundred nor more 
 than five hundred dollars or by imprisonment for not less than 
 thirty days luir more than one year, or by both such fine and impris- 
 onment; and a person who wilfully makes a false statement of any 
 material fact or tiling in ;i sworn statement as to the death or dis- 
 ability of a ]iolicy or certificate holder in any s\ieh cori)oratioii, for 
 the |)iir]Hisi' ol' proiMiring pnyiiioit of a benefit named in the certifi- 
 cate of such holder, shall be guilty of ])er.iury. 
 
 .\j)proved March fi. 1007.
 
 THE STATE OF MAINE 385 
 
 Actions Against Foreign Companies. 
 
 (Revised Statutes of 1903, Chapter 83.) 
 Section 22. In actions bj' inhabitants of this State against insur- 
 ance companies established by any other State or eovuitry, on policies 
 of insurance signed or countersigned by agents in this State, on prop- 
 erty or lives, or against accidents in this State ; and in such actions 
 against express companies so established,, service is sufficient if made 
 on the person who signed or countersigned such policies, or on any 
 agent or attornej' of either such company, or if left at his last and 
 usual place of abode thirty days before the return day of the suit; 
 but the court may in any case, order fui-ther notice. 
 
 Section 107. Any foreign corporation doing business continuously 
 in this State, and having constantly an officer or agent resident 
 herein, on whom service of au.y process may be made, shall be en- 
 titled to the benefit of all provisions of law relating to limitation 
 ,of actions the same as domestic corporations. 
 
 Larceny. 
 
 (Revised Statutes of 1903, Chapter 121.) 
 Section 10. Whoever embezzles, or fraudulently converts to his 
 own use, or secrets with intent to embezzle or fraudulently convert 
 to his own use, money, goods or property delivered to him, or any 
 part thereof, which may be the subject of larceny, shall be deemed 
 guilty of larceny, and shall be punished accordingly. And any insur- 
 ance agent, or agent of any corporation doing business in the State, 
 who appropriates to his own use any money, or substitutes for money, 
 received by him as such agent, or refuses or neglects to pay over 
 and deliver the same to the party entitled to receive it, for thirty 
 days after written demand upon him therefor, is guilty of larceny, 
 and shall be punished accordingly. 
 
 Inquests into Insurance Frauds. 
 
 Section 76. Chap. 49. R. S. On application in writing to the 
 
 commissioner by an officer of auj' insurance company doing business 
 
 in the State, stating that he has reason to believe and does believe 
 
 that any person ha.s, by false representations, procured from said 
 
 25
 
 386 FRATERNAL SOCIETY LAW 
 
 company an insurance, or that the companj^ has sustained a loss by 
 the fraudulent act of the insured, or with his knowledge or consent, 
 and requesting an investigation thereof, said commissioner, or his 
 deputy or such magistrate as he appoints, shall summon and examine, 
 under oath, at a time and place designated by him, any persons, and 
 require the production of all books and papers necessary for a full 
 investigation of the facts, and make report thereof, with the testi- 
 mony by him taken, to the company making such application. 
 
 Renewal Contracts. 
 
 Unless other\vise expressed, a renewal of a contract of insurance 
 through a new agreement, will be construed to be subject to the 
 terms and conditions contained in the original contract. 
 
 Bickford vs. Aetna Insurance Co., January 5th, 1906, 101 Maine 124. 
 
 Construction of Ambiguous Contracts. 
 
 An insurance contract should, in cases of ambiguity be construed 
 more favorable to the insured, and the language of the contract, if 
 ambiguous, is to be interpreted in the light of attending circum- 
 stances and the intent of the parties. 
 
 Bickford vs. Aetna Insurance Co., January 5th, 1906, 101 Maine 124. 
 
 Application Filled up by Agent. 
 
 An application for a contract of life insurance was signed in 
 blank by the applicant and delivered in this condition to the agent 
 of the company, with the understanding that the agent should fill in 
 the answers to the questions from information contained in a pre- 
 vious application for insurance, which had been made out in the 
 applicant's presence and signed by him. It was held by the court 
 that if the agent filled in the second application in accordance with 
 the terms of the first, then the applicant would be bound by it. but 
 if the agent filled in the second application with answers that were 
 not contained in the first one, or if he filled them in differently from 
 what they were in the first, then the applicant would not be bound
 
 THE STATE OF MAINE 387 
 
 by them, becauso they would be tlie answer.s of the agent and not 
 the answers of the applicant; and the eourt further said that it is a 
 rule of law that an application for life insurance signed in blank by 
 one desiring insurance, and filled in by the company or its agent, 
 should be construed most favorable to the applicant. 
 
 Hewey vs. Metropolitan Life Insurance Co., December 6th, 1905, 
 100 Maine 523. 
 
 Warranties — Materiality of Statements. 
 
 When defense to the payment of a certificate is asserted solel.v on 
 the ground that statements of the member made in his application 
 as to his bodily health are not true, it is held immaterial whether 
 the statements be regarded as warranties or as representations. 
 
 Jeffrey vs. United Order of the Golden Cross, December 27th, 1902, 
 97 Maine 176. 
 
 Material Representations. 
 
 In passing upon representations contained in an application for 
 life insurance, it was held that representations would not be con- 
 sidered as substantially true Avhen they were only partly true on the 
 one hand, nor when true in every possible immaterial respect, on the 
 other. The court held that representations must be true in all 
 respects material to the risk, and that representations with respect 
 to the condition of the applicant's health past and present, were 
 material to the risk proposed. 
 
 Jeffrey v.s. United Order of the Golden Cross, December 27th, 1902, 
 97 Maine 176. 
 
 Good Health — Misrepresentation. 
 
 The applicant stated in her application in answer to a question 
 that she had had dyspepsia in a light form. The testimony showed 
 that she had suli'ered from chronic dyspepsia for many years; and 
 the eourt held that there was a material misstatement, and that she
 
 388 FRATERNAL SOCIETY LAW 
 
 was not in good health at the time when she applied for membership 
 as she had represented herself to be. 
 
 Jeffrey vs. United Order of the Golden Cross, December 27th, 1902, 
 97 Maine 176. 
 
 Beneficiary — Adopted Child. 
 
 An adopted cliild was held to be competent to take as beneficiary 
 under a life insurance contract issued and payable to among others 
 "his widow, if any, otherwise for the benefit of his surviving chil- 
 dren." The court holding that the adopted child was to be regarded 
 as the member's child bj- law but not by birth. 
 
 Virgin vs. Marwick, June 30th, 1903, 97 Maine 578. 
 
 Suicide — Death Resulting from Habits. 
 
 A contract stipulated among other things that the company should 
 not be liable in the event of self-destruction of the insured in any 
 form, except upon proof that the same should be the direct result 
 of disease or accident occurring without the voluntary act of the 
 insured ; nor in case the death of the insured resulted from any dis- 
 ease produced by, or resulting from the occasional or habitual use 
 of, alcoholic or narcotic stimulants. Defense was made to the suit 
 on this contract on the ground of alleged self-destruction of the 
 member. It was claimed by the plaintiff that while the member com- 
 mitted suicide, that he was insane, while the countercharge was made 
 that if such was the case, that the insanity was the result of use of 
 alcoholic stimulants. The facts were submitted to the jury, and the 
 verdict went against the society. No questions of law were dis- 
 cussed by the court, but the facts are interesting. 
 
 Arnold vs. Conn. Mut. Life Ins. Co., June 26th, 1901, 95 Maine 331. 
 
 A Charity Defined — Fraternal Society Not a Charitable Institution. 
 
 In a suit for a sick benefit claimed to bo due by the by-laws of a 
 society, a defense interposed was that the society was a charitable 
 institution, and in passing upon this question the court said:
 
 THE ,STATE OF MAINE 
 
 38^ 
 
 "Defendant corporation is in no sense a benevolent or charitable 
 institution. Charity in its legal sense has its origin in gift and 
 bounty. It has been well defined as 'wliatever is given for the love 
 of God, or the love of your neighbor, in tlie catholic or univcr-s:il 
 sense; given from these motives and to these ends, free from the 
 stain or taint of every consideration that is personal, private, or 
 selfish.' Ould vs. Washington Hospital, 95 U. S. 311. 'It is the 
 source whence the funds are derived, and in the purpose to which 
 they are dedicated, which constitutes the use charitable. ' If derived 
 from the gift of the government or a private gift for improving a 
 town, they are charitable, but where a fund is wholly derived from 
 rates and assessments, being in no respect derived from bounty or 
 charity, it is not charitable. 
 
 Attorney General vs. Heelis, 2 Sim. & Stu. 77. 
 
 Bolton vs. Bolton. 73 Maine 303. 
 
 Bangor vs. Masonic Lodge, 73 Maine 429. 
 
 Saltonstall vs. Sanders, 11 Allen 456. 
 
 Coe vs. Washington Mills, 149 Massachusetts 547. 
 
 "Here for a definite amount paid by a member at regular recurring 
 periods, the corporation undertook to pay its member, if sick and 
 unable to work, a definite sum per week for a period not exceeding 
 thirteen weeks in the year, excluding the first week of sickness. 
 Whatever it may be called, the scheme and the contract is that of 
 insurance. The relation of the corporation to its members is con- 
 tractual, rather than charitable. 
 
 "Nor is it a benevolent institution. No aid is furnished fi-oni 
 generosit}'. None such is pretended. On the contrary, for a pecuni- 
 ary consideration it agrees to pay a definite sum in the cases speci- 
 fied. If it fails to perform its contracts with its members, they may 
 be enforced in the courts by suit." 
 
 Dolan vs. Court Good Samaritan, 12S Massachusetts 437. 
 
 Coe vs. Washington Mills, supra. 
 
 Clement vs L'Institut .Tactjues Cartier, 95 Maine 493. 
 
 Warranty — False Age Given. 
 
 The by-laws of a fraternal society prohibited the admission of
 
 390 FRATERNAL SOCIETY LAW 
 
 persons more than fifty years of age. An applicant for admission 
 declared in his application that he was forty -nine years of age. He 
 was, in fact, at that time fifty years, nine months and seventeen 
 days old. It was held that the declaration of the application was a 
 misrepresentation of a material fact, and that such misrepresenta- 
 tion rendered invalid the contract made. 
 
 Marcoux vs. Society of Beneficence St. John Baptist of Fairfield, 
 January 20, 1898, 91 Me. 250. 
 
 Assumed Contracts by Absorbing Society — Original Provisions 
 Continued. 
 
 A contract made in a society which afterwards became absorbed 
 in another society, at maturity, was sued upon, and the adopting 
 society defended on the ground of misrepresentation made in the 
 application for insurance, made to the society absorbed. The court 
 held that inasmuch as the defendant society assumed the obligation 
 pertaining to the membership of the plaintiff's husband, and only 
 upon the implied condition that his declarations made in his original 
 application to the absorbed society were true, and that the contract 
 was continued in operation by the agreement of the society with 
 the member, held that any misstatement or misrepresentations of 
 a material fact contained in the original application would avoid 
 the contract sued on. 
 
 Marcoux vs. Society of Beneficence St. John Baptist of Fairfield, 
 January 20, 1898, 91 Maine 250. 
 
 Forfeiture — Waiver. 
 
 Oil the question of waiver in case where forfeiture of membcrsliip 
 was discovered by the society subsequent to the member's death, 
 the court said: "It ajipears that the defendant society in pursuance 
 to a vote attended Marcoux 's funeral as a body and in uniform, and 
 it is contended that this was a recognition of the validity of his 
 membership, and that it is evidence of a waiver, on the part of the 
 society of any objections on account of any invalidity of his mem- 
 bership. Without considering what would be the effect of a case
 
 THE STATE OF MAINE 391 
 
 like this of an intended waiver, we do not find that there was in fact 
 any waiver. * * * Certainly not as to the effect of the 
 misstatement of age, for it does not appear that the society had any 
 knowledge of the true age of Marcoux until long after his funeral. 
 One cannot be said to waive that which he does not know." 
 
 Marcoux vs. Society of Beneficence St. John Baptist of Fairfield. 
 January 20, 1898, 91 Maine 250.
 
 392 FRATERNAL SOCIETY LAW- 
 
 TILE 
 
 STATE OF MARYLAND. 
 
 CHAPTER 21. 
 
 (The Section numbers employed correspond to those in the Insur- 
 ance Code, published by the Insurance Department of Maryland, 
 July, 1906, and being Sections 143E to 143R inc., Ch, 295 of 1894.) 
 
 Section 210. A fraternal beneficiary association is hereby declared 
 to be a corporation, society or voluntary association, formed or 
 organized and carried on for the sole benefit of its members and their 
 beneficiaries, and not for profit. Bach such association shall have a 
 lodge system, with ritualistic form of work and a representative 
 form of government, and shall make provision only for the payment 
 of benefits in case of sickness, disability or death of its members, 
 subject to their compliance with its constitution and laws. The fund 
 from which the payment of such benefits shall be made and the 
 fund from which the expenses of such association shall be defrayed 
 shall be derived from fees, assessments and dues collected from its 
 members. Payments of death benefits may be made only to the 
 widow, children, grandchildren, mother, father, brother, sister, 
 grandparent, aunt, uncle, niece, nephew, first cousin, next of kin who 
 would be distributees of the member's personal estate if he died in- 
 testate, to an affianced hu.sband or affianced wife of the member, or to 
 persons dependent upon the member for food, lodging, clothing or 
 education, and to none other; provided, that payment can only be 
 made to a benefieinrv by reason of dependency when it is established 
 by documentary proof to the satisfaction of the executive officers 
 (Vf such association that the fact of such dependency, as herein pro- 
 vided, exi.sted at the member's doatli. and no benefit certificate sliall
 
 THE STATE OF MARYLAND 393 
 
 issue designating a beneficiary by way of dependency, unless such 
 dependency shall be fully set forth, in writing, and established by 
 documentary proof to the satisfaction of said executive officers, 
 prior to the issuance thereof. A benefit shall not be assignable 
 except to the beneficiaries above specified, and then only by the 
 consent of such association, attested by its seal and the signature 
 of its supreme secretary and its supreme executive officer; but the 
 member may surrender his benefit certificate and have a new one 
 issued to any one or more of the beneficiaries, as above specified, in 
 llic manner provided by the constitution and laws of such associa- 
 tion. Such association shall be governed by the provisions of Sec- 
 tion 210 to Section 223, both inclusive, of this article, and shall be 
 exempt from the provisions of the insurance laws of this State, and 
 no law hereafter passed shall apply to them unless they be expressly 
 designated therein ; jirovided. that any corporations or associations, 
 orders or societies, operating on the lodge system and having ritual- 
 istic work in their lodges, councils or societies, whose business it is, 
 in whole or in part, to pay, at the expiration of a fixed period of not 
 less than five years, a sum not exceedng the maximum amount named 
 in their certificates, or paying dividend, withdrawal, surrender or 
 old age benefits, or paying such certificates at the expiration of life 
 expectancy, may conduct their business in this State under the pro- 
 visions governing fraternal beneficiary societies, orders or assQcia- 
 tions, with this exception, that no such corporation or association 
 shall be permitted to begin, do or continue business in this State, 
 until it shall have first deposited with the insurance commissioner of 
 this State, the sum of ten thousand dollars in dividend-bearing 
 securities, satisfactory to said commissioner, as a guarantee for the 
 payment of certificates issued by it, which deposit shall be constantly 
 maintained at that amount ; provided, however, that any such corpo- 
 ration or association organized under the laws of any other State, 
 which may have, under the laws of the State of which it is a citizen, 
 a deposit of equal value for the purpose herein mentioned, shall, 
 upon proof of the existence of such deposit, not be required to make 
 the same with the insurance commissioner of this State. 
 
 Section 211. Any such association coming within the description 
 of a fraternal beneficiarj' association, as set forth in section 210 of
 
 394 FRATERXAL SOCIETY LAW 
 
 this article, organized under the laws of this or any other State, 
 province or territorj-, and now doing business in this State, may 
 continue such business, provided that it hereafter comply with the 
 provisions of sections 213 and 214 regulating annual reports, and 
 the designation of the commissioner of insurance as the person upon 
 whom process may be served as hereinafter provided; and shall file 
 with the commissioner of insurance a duly certified copy of its char- 
 ter or act of incorporation, its form of benefit certificate and also 
 a certificate of the proper officer of such State, province or territory, 
 certifj'ing that such association is authorized to conduct its business 
 therein, where the laws of such State, province or territory require 
 an annual report of the operations of such association, or where 
 its laws authorize such certificate, and, thereupon, said commissioner 
 of insurance shall issue a certificate to said association authorizing 
 it to continue to do business in this State, for which he shall receive 
 the sum of twenty -five dollars ; but if said association be incorporated 
 under the laws of this State, or if it be a foreign corporation, and 
 by the laws of the State of its corporation shall not be required to 
 make report, or the certificate referred to in this section shall not 
 ba authorized by such law, then the commissioner of insurance shall 
 make examination of its afl'airs in manner as provided in the next 
 succeeding section, in like case before issuing such certificate, and 
 until a certificate is refused, after examination had as provided, 
 such association shall continue to do business in the State as here- 
 tofore. The expense of the examination required under this section 
 for associations incorporated under the laws of this State shall not 
 exceed fifty dollars. 
 
 Section 212. Any such association coming within the description 
 of a fraternal beneficiary association, as set forth in section 210 of 
 this article, organized under the laws of any other State, province or 
 territory, and not now doing business in this State, shall be admitted 
 to do business within this State, when it shall have filed with the 
 commissioner of insurance a duly certified cop.y of its charter and 
 articles of association, and a copj^ of its constitution or laws certified 
 to by its secretary or corresponding officer, together with an ap- 
 pointment of the commissioner of insurance of this State, as a person 
 upon whom process may be served as hereinafter provided ; and
 
 THE STATE OF MARYLAND 395 
 
 shall pay said commissioner of iiistiraiiue a fee of twenty-five dollars 
 for liliiiu' said charter, cn\)y of eonstitnt ion and laws, and apimint- 
 menf oi' attorney; and provided that such association sindl be shown 
 by cerlifieate to be authorized to do business in the State, province 
 or teri'itcn'v in which it is ineor|ioratc(l oi' <ii'n;ini/.e(l, in case the 
 laws of such State, province or territory shall provide for such 
 authorization ; and in case the laws of such State, province or terri- 
 tory do not provide for any formal authorization to do business on 
 the part of any such associatifui, tlu'u such association shall Ix; 
 shown to be conducting its business in accordance with the pro- 
 visions of section 210 to section 223 (both inclusive) of this article, 
 for which purpose the commissioner of insurance of this State may 
 personally or by some person to be designated by him, examine 
 into the condition, affairs, character and business methods, accounts, 
 books and investments at its home office, which examination shall 
 be at the expense of such association, and shall be made within thirty 
 days after demand therefor ; and the commissioner of insurance .shall 
 be paid by such association for such examination the actual traveling 
 expenses and not more than ten dollars per day for each day actually 
 employed in such examination, not to exceed fifty dollars in the 
 aggregate. The commissioner of insurance shall issue a certificate 
 to such association, qualified as required in this section, authorizing 
 it to do business within this State, for which certificate said asso- 
 ciation shall pay to the said commissioner the fee of twenty-five dol- 
 lars. 
 
 Section 213. Every such association doing business in this State 
 shall, on or before the last day of March of each year, make and 
 file with the insurance commissioner of this State a report of its 
 affairs and operations during the year ending on the thirty-first day 
 of December immediately preceding, which annual report shall be 
 in lieu of all other reports required by any other law; such reports 
 shall be upon appropriate blank forms to be provided by the insur- 
 ance commissioner, and shall be verified under oath by the duly 
 authorized officer of such association, and shall be published, or the 
 substance thereof, in the annual report of the insiirance commis- 
 sioner, under a separate part, entitled "Fraternal Beneficiary Asso- 
 ciations." The insurance commissioner is authorized and empow-
 
 396 FRATERNAL SOCIETY LAW 
 
 ered at any time to address auy additional iiujuiries to any such 
 association, in relation to its doings or condition, or any other matter 
 connected with its transactions relative to the business contemplated 
 by section 210 to section 218 (both inclusive) of this article, and such 
 officers of such associations as the insurance commissioner may re- 
 quire, shall promptly reply in writing under oath to all such in- 
 quiries if so required; and in case after si;ch inquiry the insurance 
 commissioner shall have reason to believe that such association is 
 insolvent or cannot meet its obligations to its beneficiaries or certifi- 
 cate holders, or is conducting its business in an illegal manner, he 
 may, by some person designated by him, examine the accounts, books 
 and investments of said association at its home office, at the expense 
 of said association, not to exceed in the aggregate the sum of fiftj'- 
 dollars; each such association on filing its annual report shall pay to 
 the insurance commissioner the sum of twenty-five dollars. 
 
 Section 214. Each such association now doing or hereinafter ad- 
 mitted to do business within this State, and not having its principal 
 office within this State, and not being organized under the laws 
 of this State, shall appoint, in writing, the insurance commis- 
 sioner, or his successor iu office, to be its true and lawful attorney 
 upon whom all lawful process in any action or proceeding against 
 it may be served, and in such writing shall agree that any lawful 
 process against it which is served on said insurance commissioner 
 shall be of the same legal force and validity as if served upon the 
 association, and that the authority shall continue in force so long 
 as any liability remains outstanding in this State. Copies of such 
 certificate, certified by said insurance commissionei", shall be deemed 
 sufficient evidence thereof, and shall be admitted in evidence with 
 the same force and effect as the original thereof might be admitted. 
 Service upon such attorney shall be deemed sufficient service upon 
 such association. When legal process against any such association 
 is served Tipon said insurance commissioner, he shall immediately 
 notify the association of such service by letters prepaid and directed 
 to its president, secretary and supreme or chief secretary or corre- 
 spondirm' ol'licei-s; and shall within two days after such service for- 
 ward in the same manner a copy of the process served on him to 
 such officers. The plaintiff, in such process so served, shall pay to
 
 THE STATE OF MARYLAND 397 
 
 the commissioner of iiisurance, at the time of such service, a fee 
 of five dollars, which shall be recovered by him as part of the tax- 
 able costs, if he prevails in the suit. The insurance commissioner 
 sliall keep a record of all processes served upon him, which record 
 shall show the day and hour when such service was made. 
 
 Section 215. The insurance commissiouer of this State shall fur- 
 nish to each of said associations doing business within this State, 
 as provided by section 210 to section 223 (both inclusive) of this 
 article, two abstracts of its annual report prepared for publication, 
 for which it shall pay him the sum of four dollars. 
 
 Section 216. Such association shall not employ paid agents in 
 soliciting or procuring members, except in the organizing or building 
 up of subordinate bodies or granting members inducements to pro- 
 cure new members. 
 
 Section 217. The money or other benefit, charity, relief or aid 
 to be paid, provided or rendered by any association authorized to do 
 business under section 210 to section 223 (both inclusive) of this 
 article, shall not be liable to attachment by trustee, garnishee or 
 other process, and shall not be seized, taken, appropriated or applied 
 by any legal or equitable process or by operation of law to pay 
 any debt or liability of a certificate holder or of any beneficiary 
 named in a certificate, or of any person who may have any right 
 thereunder. 
 
 Section 218. Any such association organized under the laws of 
 this State may provide for the meetings of its legislative or govern- 
 ing body in any other State, province or territory wherein such asso- 
 ciation shall have subordinate bodies, and all business transacted 
 at such meetings shall be valid in all respects, as if such meetings 
 were held within this State; and where the laws of any such associa- 
 tion provide for the election of its officers by votes to be cast in its 
 subordinate bodies, the votes so cast in its subordinate bodies in any 
 other State, province or territory shall be valid as if cast within 
 this State. 
 
 Section 219. Any person, officer, member or examining physician, 
 who sliall knowingly or wilfully make any false or fraudulent state- 
 ment or representation, in or with reference to any apjilieation for 
 membership, or for the purpose of obtaining any money or benefit
 
 398 FRATERNAL SOCIETY LAW 
 
 ill any association transacting business under sections 210 to 223 
 (both inclusive) of this article, shall be guilty of a misdemeanor, 
 and upon conviction shall be punished by a fine of not less than 
 one himdred dollars iinr more than five hiindred dollars, or impi'lsou- 
 ment in the city or county jail for not less than thirty days nor 
 more than one year, or both, in the discretion of the court ; and any 
 person who shall wilfully make a false statement of any material 
 fact or thing in a sworn statement, as to death or disability of a cer- 
 tificate holder in any such association for the purpose of procuring 
 payment of a benefit named in the certificate of such holder, and any 
 person who shall wilfully make any false statement in any verified 
 report or declaration under oath, required or authorized under the 
 provisions of section 210 to section 223 (both inclusive) of this 
 article, or either of them, shall be guilty of perjviry, and shall be 
 proceeded against and punished as provided by the statutes of this 
 State in relation to the crime of i^erjury. 
 
 Section 220. Any such association refusing or neglecting to make 
 the report as provided in section 213 shall be excluded from doing 
 business within this State in procuring new members. The insurance 
 Commissioner must, within sixty days after failure to make such 
 report, or in case any such association shall exceed its powers, or 
 shall conduct its business fraudulently, or shall fail to comply with 
 any of the provisions of section 210 to section 223 (both inclusive) 
 of this article, immediately commence an action against such asso- 
 ciation to en,join the same from carrying on any business. And no 
 injunction against any such association shall be granted by any 
 court, except on application as set forth in this section. No asso- 
 ciation so enjoined shall have authority to continue business until 
 such report shall be made, or overt act or violation complained of 
 shall have been corrected, nor until the costs of such action bo p:iid 
 by it; provided, the court shall find that such association was in 
 defavilt as charged : whereupon the insurance coinmissi(uu'r shall 
 reinstate such association, and not until then shall such association 
 be allowed to again do business in this State. Any officer, agent or 
 person acting for any association or subordinate body thereof, within 
 this State, in procuring new members, while such association shall 
 be so I'lijoinod (U* prohiliitcd fi-om doing business pursuant to this
 
 THE STATE OF MARYLAND 399 
 
 section, shall be deemed guilty of a misdemeanor, and on conviction 
 thereof shall be punished by a fine of not less than twenty-five dollars 
 nor more than two hundred dollars, or by imprisonment in the city 
 or county jail not less than thirty days nor more than one year, or 
 by both such fiin' and imprisonment, in the discretion of the court. 
 
 Section 221. Any person who shall act within this State as an 
 officer, agent or otherwise in procuring new members for any asso- 
 ciation, which shall have failed, neglected or refused to comply with, 
 or shall have violated any of the provisions of section 210 to section 
 223 (both inclusive) of this article, or shall have failed or neglected 
 to comply with thfe provisions therein, preliminary to transacting 
 business as provided for by said sections, or either of them, shall be 
 subject to the penalty provided in the last preceding section for the 
 misdemeanor therein specified. 
 
 Section 222. Fraternal beneficiary societies, orders or associa- 
 tions as described is section 210 may be incorporated in the manner 
 provided for the formation of corporations under this article ; pro- 
 vided, that no such society, order or association incorporated in 
 another State, province or territory, nor any council or branch, or 
 component part thereof, can be incorporated under the laws of this 
 State. 
 
 Section 223. Any association entitled to do business in this State 
 under the provisions of section 210 to section 223 (both inclusive) 
 of this article, which shall so conduct its affairs or shall in any man- 
 ner change its charter, constitution or laws, so that it shall not 
 answer to the description of a fraternal beneficiary association as set 
 forth in section 210, shall thereupon cease to be entitled to the 
 privilege of said section. 
 
 Section 224. The insurance commissioner of this State shall 
 notify the supreme secretary of each of the said associations now 
 doing business in this State of sections 210-223, and enclose a blank 
 for the report of its operations for each year ending December 31 ; 
 and every association receiving such notice and blank shall file such 
 report in the manner provided in section 213, not later than three 
 months from the date of the receipt of such notice and blank, under 
 the like penalties as provided in section 220 for not filing a report. 
 
 Section 22.5. Nothing contained in sections 210-223 shall apply
 
 400 FRATERNAL SOCIETY LAW 
 
 to lodges or orders of a purely religious, charitable or benevolent 
 description, pajing exclusively sick, funeral or death benefits to 
 members, their family or dependents, and not operated with a view 
 to profit, nor shall any sucli organization be required to make any 
 report under this or any other sections of the insurance laws; and 
 provided further, that no society, lodge or body of any secret or 
 fraternal society, or association of employes of any particular trade, 
 firm or corporation organized in this State, paying only sick benefits 
 not exceeding two hundred and fifty dollars in the aggregate to any 
 one person in any one year, or a funeral benefit to those de- 
 pendent on a member not exceeding three hundred and fifty dollars, 
 shall be required to make any report thereof under this article or 
 under any other article of the insurance laws; provided further, that 
 certificates issued by the Improved and Independent Orders of B 'nai 
 B'rith may be made payable to charitable institutions as now pro- 
 vided in its by-laws. 
 
 The following sections of the Maryland code as prepared by the 
 said insurance department are also deemed proper to be included 
 here : 
 
 Fraud — Insurance Companies, by Directors or Officers of. 
 
 Section 145. Any director or officer of any insurance company, 
 or association, or fraternal beneficiary association, who shall receive 
 any premium or assessment on behalf of said company, association, 
 or fraternal beneficiary association, knowing at the time of the re- 
 ceipt of said premium or assessment, said company, association or 
 fraternal beneficiary association to be insolvent, shall be deemed 
 guilty of a misdemeanor, and, upon conviction thereof, shall be 
 liable to a fine not exceeding five hundred dollars, or imprisonment 
 in jail for a period not exceeding six months, or both, in the discre- 
 tion of the court. 
 
 Article XLV, Husband and Wife. 
 
 Section 8. Any married woman, by herself and in her name, or 
 in the name of any third person, with his assent, as her trustee, may 
 insure or cause to be insured for her sole use the life of her husband
 
 THE STATE OF MARYLAND 401 
 
 for any definite period, or for the term of his natural life; and any 
 husband may cause his own life to be insured for the sole use of 
 his wife and may also assign any policy of insurance upon his own 
 life to his wife for her sole use ; and in case of the wife surviving 
 her husband, the sum or net amount of such insurance becoming 
 due and payable by the terms of the insurance shall be payable to 
 her for her own use, free from the claims of the representatives of 
 her husband or any of his creditors. 
 
 Mutual Benefit Life Ins. Co. vs. Wise, 34 Md. 582. 
 
 Emerich vs. Coakley, 35 Md. ISS. 
 
 Whitridge vs. Barry, 42 Md. 140. 
 
 Knickerbocker Life Ins. Co. vs. Peters, 42 Md. 415. 
 
 Mutual Life Ins. Co. vs. Stibbe. 46 Md. 312. 
 
 Elliott vs. Bryan, 64 Md. 368. 
 
 Earnshaw vs. Stewart, 64 Md. 514. 
 
 Section 9. All policies of life insurance upon the life of any per- 
 son which may hereafter mature, and which have been or shall be 
 taken out for the benefit of or bona fide assigned to the wife or 
 children or any relative dependent upon such person or any creditor, 
 shall be vested in such wife or children or other relative or creditor, 
 free and clear from all claims of the creditors of such insured person. 
 
 Section 10. If the wife shall die before her husband the amount 
 of such insurance may be payable after her death to the children 
 or descendants for their use, and to their guardian, if under age, and, 
 if there be no children or descendants of the wife living at the time 
 of her death, to her legal representatives. 
 
 Emerich vs. Coakley, 35 Md. 188. 
 
 Article LXXV, Pleadings, Practice and Process at Law. 
 
 Section 23. Whenever any insurance company or surety or bond- 
 ing company of any kind whatsoever shall have a duly accredited 
 agent in any county or city of this State resident therein and shall 
 become obligated by its policy or other contract, express or implied, 
 to any resident of any such county or city the said company may 
 sue or be sued on such policies as other contracts in the same man- 
 ner as if resident in such city or county, by causing process to be 
 26
 
 402 FRATERNAL SOCIETY LAW 
 
 served on such resident agent, which shall be as effective in law and 
 equity as if such service had been made on the president, director 
 or directors of such company, and the judgment rendered in such 
 case shall have the same force and effect as other judgments would 
 or could have. 
 
 Henderson vs. Md. Home Ins. Co., 90 Md. 51. 
 
 Provisions for the Formation of Corporations. 
 
 Section 14. Coi"porations may be formed in this State, uuder the 
 provisions hereinafter set forth, by any five or more persons, citizens 
 of the United States, and a majority of them citizens of this State, or 
 if unnaturalized, residents of this State, malking oath that they 
 bona fide intend to become citizens of the United States without un- 
 reasonable delay, who may desire to form a body corporate or 
 politic, for anj' of the following purposes : 
 
 Section 15. Class 1. For the creation and maintenance of educa- 
 tional, moral, scientific, literary, dramatic, musical, social, benevolent 
 or beneficial societies or associations of all descriptions ; of religious 
 or charitable societies or associations; fire engine and hose com- 
 panies; and of uniformed volunteer companies; of universities, col- 
 leges, academies, hospitals or asylums ; provided such corporations 
 are located in this State and that the propertj^ which they possess 
 or acquire is located therein, but corporations formed for the creation 
 and maintenance of educational associations, universities, colleges, 
 academies, hospitals or asylums may take and hold any property, 
 real or personal, situate out of this State which may be given, 
 granted, devised or bequeathed to said corporations, and may hold, 
 use or sell and convey the same, or may deal with it in any manner 
 not inconsistent with law. 
 
 Boyce vs. Trustees, 46 Md. 372. 
 
 General Regulations. 
 
 Section 50. Any five or more persons, citizens of the United 
 States, and a majority of them citizens of this State, who may 
 desire to form n corpoi'iition for any of the purjioses hereinbefore
 
 THE STATE OF MARYLAND 403 
 
 referred. to, shall mako, sign, seal and acknowledge before some 
 officer competent to take the acknowledgment of deeds, a certificate 
 in writing in which shall be stated : 
 
 1. The names in full and places of residence of the applicants. 
 
 2. The proposed corporate name of the corporation, which shall 
 always include the name nf thi' county or city in which it may 
 be formed. 
 
 3. The, object or purposes for which incorporation is sought, the 
 time of its existence not to exceed forty years, and the articles, 
 conditions and i)rovisious under which the corporation is formed; 
 provided, that the limitations as to the duration of the existence 
 of corporations formed under this article shall not apply to gas 
 light companies, cemetery companies, or to corporations formed for 
 the creation or maintenance of educational associations, universities, 
 colleges, academies, hospitals or asylums, and that certificates of 
 incorporation of all corporations named in the proviso may contain 
 provisions for perpetual existence. 
 
 Order Int. Frat. All. vs. State. 77 Md. 5G1. 
 
 4. The place or places where the operations of the corporation 
 are to be carried on, and the place in this State in which the princi- 
 pal office of the eor])oration will be located. 
 
 5. The amount of capital stock (if any) of the corporation. 
 
 6. The number of shares of stock (if any) and the amount of 
 each share. 
 
 7. The number of trustees, directors or managers, and their 
 names, who shall manage the concerns of the corporation for the 
 first year. 
 
 Section 51. When said certificate is executed, it shall be the duty 
 of the persons executing the same to submit it to one of the judges 
 of the judicial circuit, within which the principal or any other office 
 of said corporation is, under said certificate, to be located, if it shall 
 be located in one of the counties of this State, or to one of the 
 judges of the supre)ne bench of Baltimore city, if the principal office 
 of said corporation shall be located in Baltimore city, in order that 
 the said judge may determine whether the said certificate is in con-
 
 404 FRATERNAL 80CIETY LAW 
 
 formity with the law ; and such determination, when certified by the 
 said judge as required by the next succeeding section, shall be con- 
 elusive evidence that such certificate does conform to the law. 
 
 Gtoodman vs. Jedidjah Lodge, 67 Md. 125. 
 
 Section 52. If the said judge shall so determine, he shall certify 
 his said determination upon the said certificate, which shall there- 
 upon be recorded in the office of the clerk of the circuit court for 
 the county in which the principal office of said corporation shall by 
 the terms of said certificate, be located, if it shall be located in one 
 of the counties of this State, or in the office of the clerk of the 
 superior court of Baltimore city, if the principal office of said cor- 
 poration shall be located therein ; and the said certificate shall be 
 recorded in a book provided for that special purpose. 
 
 Oler vs. Balto. & Randallstown R. R. Co., 41 Md. 583. 
 
 Section 53. When the said certificate shall have been recorded, the 
 persons who have signed and acknowledged the same, and their 
 successors shall, according to the objects, purposes, articles, con- 
 V ditions and provisions in said instrument contained, become, and 
 be a body politic and corporate, in fact and in law, by the name 
 stated in such certificate. 
 
 Grape S. & V. Co. vs. Small, 40 Md. 395. 
 
 Section 54. A coj)y of such certificate, or of any amendments 
 thereto, or of any paper relating to corporations, which is required 
 by law to be recorded, when certified to be a true copy by the 
 clerk of the court in whose oifice the same is recorded, under the 
 seal of his office, shall be evidence in all legal proceedings, and in 
 all the courts of this State. 
 
 Section 55. If any alteration or amendment of the articles or 
 provisions of the charter of any said corporations shall be made 
 by the authority of the corporations, such alterations or amendments 
 shall be made known, acknowledged and recorded in the same man- 
 ner as prescribed in Sections 50, 51 and 52 of this article, and after
 
 THE STATE OF MARYLAND 405 
 
 the said alteration or amendment shall be recorded, the same shall 
 be taken to be a part of the said charter or instrument, as if the 
 same had originally been made a pni't thereof; and any corporation 
 heretofore formed under the provisions of this article for the crea- 
 tion or maintenance of educational associations, universities, col- 
 leges, academies, cemetery companies, hospitals or asylums, the 
 existence of which, by the terms of its charter, is limited to a period 
 of forty years or less, is authorized to amend its chai-ter, so as to 
 ■provide for i^erpetual existence. 
 
 Section 57. Every corporation incoi'porated under this article 
 shall have the following powers and be subject to the following 
 general regulations, except in cases where the special provisions 
 relating to any particular corporation are inconsistent with the said 
 general regulations. 
 
 Section 58. Any such corporation shall have power — 
 
 First. To have succession by its corporate name for the period 
 prescribed by law or by the certificate evidencing its incorporation 
 where the said certificate is in accordance with law. 
 
 Section 59. Second. To sue and be sued, complain and defend 
 in any eoui't of law or equity. 
 
 Section 60. Third. To make and use a common seal and alter 
 the same at pleasure. 
 
 Section 61. Fourth. To acquire by purchase or in any other man- 
 ner, and take, receive, hold, use, employ, manage, mortgage, dispose 
 of, or in any manner not inconsistent with law, deal with any prop- 
 erty, real, personal or mixed, and situate in or out of this State, 
 which may be necessary or proper to enable said corporation to 
 carry on the operations or fulfill the purposes named in its certifi- 
 cate of incorporation, and generally to do evei'y other act or thing, 
 not inconsistent with law, which may be necessary or proper to 
 promote the ob.iects, designs and purposes for which said corpora- 
 tion was formed. 
 
 Hagerstown Mnfg. Co. vs. Keedy, 91 Md. 438. 
 
 Section 62. Fifth. To appoint a president of the company from 
 among the directors, trustees or managers, and to appoint such
 
 406 FRATERNAL SOCIETY LAW 
 
 oiSeers and agents as the business of the corporation shall require; 
 to allow them a suitable compensation, require security for the 
 faithful discharge of their duties and regulate the tenure of office 
 of the said officers. 
 
 Eckenrode vs. Chemical Co., 55 Md. 65. 
 
 Section 63. Sixth. To make by-laws, not inconsistent with law, 
 for the management of its propert.y, the regulation of its affairs, 
 and for the transfer of its stock, if any such stock there be ; for 
 the forfeiture of stock not paid for, and for the disposition of the 
 proceeds thereof; for the calling of regular, special and general 
 meetings of the directors, managers and trustees of said corporation, 
 and fixing tlie place or places where the same shall be held, and to 
 provide for all other matters which may be regulated by by-laws, 
 and from time to time to repeal, amend or re-enact the same; but 
 every such by-law, and every repeal, amendment or re-enactment 
 thereof, unless in the meantime confirmed at a general meeting of 
 the company, duly called for that purpose, shall only have force 
 until the next annual meeting of the company, and in defaiilt of 
 confirmation thereof, shall, from that time only, cease to have force. 
 The stockholders, or members of the corporation, may, at any gen- 
 eral meeting, make by-laws, which shall not be rescinded by the 
 directors, managers or trustees. 
 
 Morrison vs. Dorsey, 48 Md. 471; Grafflin vs. Woodside, 87 Md. 151. 
 
 Section 64. No corporation shall possess or exercise any corpor- 
 ate powers except such as are conferred by law, and such as shall 
 be necessary to the exercise of the powers so acquired. 
 
 Davis vs. West Saratoga Bldg Union, 32 Md. 295. 
 State vs. Consolidation Coal Co., 46 Md. 9. 
 
 Section 65. The stock, if any, property and concerns of any cor- 
 poration, for whose creation provision is made in this article, shall 
 be managed by such number of trustees, dii'ectors or managers as 
 its by-laws or charter slmll prescribe, said number to lie not less
 
 THE STATE OF MARYLAND 407 
 
 than four nor more than twelve, who shall respectively be citizens 
 of the United States, and a majority of them citizens of tliis State; 
 or if unnaturalized residents of this State shall make oath that they 
 intend to become citizens of the United States without unreasonable 
 delay; and who shall, except the first year, be annually elected by 
 the stockholders, where there are such, or by the shareholders or 
 members, where there are no stockholders, at such meeting-, time 
 and jilace, and after such notice as shall be directed by the by-laws 
 of the corporation ; and the election shall, except in cases otherwise 
 provided for herein, be made by such of the stockholders, share- 
 holders or members, as the case maj^ be, who shall attend for that 
 purpose, either in person or by proxy; and where no other notice is 
 provided for by the by-laws, public notice of the time- and place 
 of holding such election shall be published not less than ten days 
 previous thereto, in a newspaper printed nearest to the place where 
 the principal office of said corporation in this State shall be located. 
 
 Darrin vs. Hoff, 99 Md. 491. 
 
 Waiver — Ignorance no Excuse. 
 
 On the question of waiver the court adopts a doctrine announced 
 upon this same subject by the Supreme Court of the United States, 
 as follows, "The Supreme Court of the United States speaking by 
 Mr. Justice Brown said in dealing with that feature of the case: 
 'Granting that the continued receipt of premiums or assessments, 
 after a forfeiture has occurred, will only be construed as a waiver 
 when the facts constituting a forfeiture are known to the company. 
 This is true only of such facts as are peculiarly within the knowl- 
 edge of the insured.' (N. L. L. Insurance Company vs. Davis, 95 U. 
 S. 427 ; Bennecke vs. Conn. Mutual Life Insurance Co., 105 U. S. 
 355.) If the company ought to have known of the facts, or with 
 proper attention to its own business, would have been apprised 
 of them, it has no .right to set up its ignorance as an excuse." 
 
 Monahan vs. Mutual Life Ins. Company, February 15th, 1906, 103 
 Maryland 145.
 
 408 FRATERNAL SOCIETY LAW 
 
 Age — Misrepresentation — Compromise. 
 
 The amount due under a contract to the beneficiary depended 
 upon the true age of the member at the time when he obtained the 
 insurance. The company claimed that the true age was not stated 
 in the member's application and the beneficiary was subsequently 
 induced to accept a smaller sum than would be payable if the state- 
 ment as to age was correct and executed a receipt in full for all 
 claims iinder the contract. Held, that the transaction was not a 
 compromise of the disputed claim so as to create an accord and 
 satisfaction ; that there was no consideration for the agreement to 
 accept a smaller sum in satisfaction of the claim, and that the 
 beneficiary was entitled to the balance under the contract upon the 
 proof that the age of the insured was correctly stated in the appli- 
 cation. 
 
 Prudential Life Insurance Company vs. Cottlngham, March 27th, 
 1906, 103 Maryland 319. 
 
 Beneficiary Cannot Compel Continuation of Membership. 
 
 When the assured voluntarily elects to discontinue payment of 
 assessments and dues and directs the cancellation of his contract, 
 the beneficiary named therein has no right of action against the 
 company on the ground that it made illegal asse.ssments upon the 
 member, and did not place him in the particular class to which he 
 was entitled to be placed, and had failed to set aside a reserve fund, 
 the court holding that the beneficiary has no interest in the con- 
 tract further than to claim as beneficiary after its maturity, while 
 in force. 
 
 Price vs. Mutual Reserve Life Ins. Company, January 9th, 190B, 102 
 Maryland 683. 
 
 Misrepresentation Avoids Contract. 
 
 A misrepresentation as to a subject material to the risk made by 
 an applicant for life insurance, avoids the contract subsequently 
 issued upon such application, although the applicant made such
 
 THE STATE OF MARYLAND 409 
 
 representations in good faith or through mistake. It is held that 
 the company in such case had been induced to take a different risk 
 from that which the representations allowed it to suppose it was 
 assuming. 
 
 Bankers' Life Insurance Company vs. Miller, November 18tli, 1904, 
 100 Maryland 85. 
 
 Limit of Time to Sue in — Waiver of by Society. 
 
 The contract provided that suit should be brought within six 
 months after death of the member and also that before any pay- 
 ments should be made, that the contract, together with the receipt 
 book should be surrendered. After the death of a member the 
 beneficiary named in the contract notified the society, and was told 
 that the loss would be paid when the receipt book was surrendered. 
 The beneficiary replied that she could not find the book, and that 
 she had last seen it in the possession of the society's agent, when 
 he called to collect the premiums which she had paid. Suit was 
 not begun on the contract until after the time mentioned. The 
 court held that the question of whether plaintiff had been pre- 
 vented from bringing suit within the period named, by the conduct 
 and representations of the society, were facts to be passed upon by 
 the jury. 
 
 The Home Friendless .Society vs. Roberson. November 30th, 1904, 
 100 Maryland 85. 
 
 Printed By-laws Admissible in Evidence. 
 
 In a ease where the printed copy of the laws of a society were 
 admitted in evidence, see : 
 
 Wells and McComas Council vs. Littleton, January 13th, 1905, 100 
 Maryland 416. 
 
 Right of Beneficiary to Resort to Civil Courts. 
 A beneficiary was held not to be required to appeal to a higher
 
 410 FRATERNAL SOCIETY LAW 
 
 authority within the society from an adverse ruling on her claim 
 for benefits due upon the death of a member. 
 
 Wells and McComas Council vs. Littleton, January 13th, 1905, 100 
 Maryland 416. 
 
 Proofs of Death Waived by Denial of Liability. 
 
 A denial by an insurer of all liability under a contract is a waiver 
 of proofs of death. 
 
 Prudential Insurance Co. vs. DeBoe, January 20tli, 1904, 98 Mary- 
 land 584. 
 
 Reasonable By-laws. 
 
 A by-law in a fraternal society provided that: "No brother owing 
 thirteen weeks or more dues shall be entitled to receive weekly or 
 death benefits until thirteen weeks- after paying all arrears." The 
 court in passing upon the validity of this by-law, where it was 
 attacked on the ground of being unreasonable, reviewed the author- 
 ities and held that the by-law was not unreasonable. 
 
 Littleton vs. Wells and McComas Council, January 12th, 1905, 98 
 Maryland 453. 
 
 Beneficiary — Remedies in Society to be Exhausted Before Resort is 
 Made to Civil Courts. 
 
 A benefit society issued a certificate to a member promising to pay 
 to his wife, as beneficiary, in the event of the death of the member 
 occurring during the continuation of his membership, a certain sum. 
 The by-laws of the society required that all claims made upon cer- 
 tificate should be first passed upon by the executive committee; that 
 any beneficiary dissatisfied with the decision made by the executive 
 committee must appeal therefrom to the Grand Council of the soci- 
 ety. The beneficiary named upon the death of her husband, applied 
 for the piiyiiieiit ol' tlie amount due by the certificate, but the 
 executive ennunitti'O decided that slu' was entitled to only a small
 
 THE STATE OF MARYLAND 411 
 
 portion of hov claim. She refused to accept tliis and refused to 
 appeal, and ijrouglit suit. Tlie society filed ii denuirrcr settiufi' 
 forth the facts referred to above and the court held that plaintiff, 
 under the regulations of the society, although only a Ixmeficiary and 
 not a member, was precluded from bringing suit upon the certificate 
 until after exhausting the remedies granted her within the organiza- 
 tion. The authorities are reviewed at great length in the briefs filed 
 before the court and the question fairly raised. 
 
 Weigand vs. Fraternity's Accident Order, June 30th, 1903, 97 Mary- 
 land 443. 
 
 Beneficiaries — Benefits Exempt from Creditor's Claims, Etc. 
 
 The by-laws of the Improved Order of Heptasoph's designated 
 the class of persons that might be named as beneficiaries by 
 members of the society, such persons being confined to blood 
 relations, or to persons depending upon the member for main- 
 tenance, food, clothing, lodging or education, and further pro- 
 vided that the member .should not designate by will to whom the 
 benefits should be paid, nor be permitted to sell or assign his cer- 
 tificate or any portion thereof. A certificate was issued to one 
 Brumbly, payable at his death to his four children named therein, 
 and to all his surviving children; subsequently this certificate was 
 surrendered and a new one issued payable to the member's "estate." 
 This last named certificate was endorsed over to Peter Dale, as 
 collateral security for a debt owed by the member to Dale. After 
 the death of the member, the fund under the certificate was brought 
 into court under a bill of interpleader. The society disclaimed any 
 interest in the fund. At the time the last named certificate was 
 issued, a statute of Maryland was in force designating who might be 
 named as beneficiaries by members of fraternal societies, providing 
 that such funds should not be liable to be seized under any legal 
 process for any debt or liability of the certificate holder and that 
 the benefit should not be. assignable except to those named in the 
 act as competent to take as beneficiaries and creditors were not in 
 the li.st. The court said. "The association would have no power 
 whatever under its constitution and the laws of the State to pay 
 the fund to a creditor of the deceased.
 
 412 FRATERNAL SOCIETY LAW 
 
 "We come then to the meaning of the construction to be placed 
 upon the word 'estate' as designated by the assured in the certifi- 
 cate dated January 17th, 1889. In the view we take of this case it 
 becomes immaterial whether we hold that the fund shall be paid 
 to the administrators of the assured, Brumblj^, and distributed ac- 
 cording to the laws of the State, of whether we declare that the 
 word 'estate' was an illegal designation. In either ease the fund 
 would be distributed to the same persons. # # » 
 
 The decree of the lower court directed th fund to be paid to the 
 wife and children of the assured, as the persons entitled, free and 
 clear of the claims of creditors, and for the reasons given we affirm 
 the decree appealed from." 
 
 Dale vs. Brumbly, March 31st, 1903, 96 Maryland 674. 
 
 Forfeiture — Waiver of. 
 
 For the facts in an interesting case where forfeiture of a contract 
 was alleged by reason of non-payment of assessments, and where it 
 further appears that the assessments were not paid by reason of the 
 failure of a subordinate lodge to comply with the laws of the society, 
 and where upon such facts the society was held to have waived the 
 forfeiture, see: 
 
 Schlosser vs. Grabd Lodge Brotherhood of R. R. Trainmen, January 
 16th, 1902, 94 Maryland 363. 
 
 Payment of Assessments After Member's Death. 
 
 A contract provided that failure to pay assessment when due 
 should cause its forfeiture, and that it could not be reinstated ex- 
 cept in a designated manner with the consent of the company. It 
 was held that the payment of an assessment after maturity and 
 after the forfeiture of the contract without its reinstatement in the 
 manner provided for in the laws, would not operate to create a 
 waiver of the forfeiture, or to revive the contract, and that upon the 
 subsequent insolvency of the company, the holder of such contract 

 
 THE STATE OF MARYLAND 413 
 
 was not liable for assessments ordered to be made by a court in the 
 domicile of the corporation. 
 
 Stockley vs. Benedict, January 16th, 1901, 92 Maryland 325. 
 
 A Maryland Contract. 
 
 A benefit certificate was issued in New York to a member residing 
 in Maryland, delivered in Maryland, and the court held that it pro- 
 vided for payment in Maryland, and upon these facts it was held, 
 that the certificate was a Maryland contract, and the rights of the 
 parties thereunder were to be governed according to the laws of 
 that State. 
 
 Expressmen's Mutual Benefit Ass'n vs. Hurlock, June 16th, 1900, 91 
 Maryland 585. 
 
 Courts Without Power to Control Internal Affairs of Foreign 
 Society. 
 
 A member of a mutual life insurance company, operated on the 
 assessment plan, is an insurer of others as well as himself. An 
 action on a policy to recover a loss insured against would be within 
 the jurisdiction of the courts of this State. - But a suit to determine 
 whether certain assessments of a foreign company were fraudulently 
 and irregularly made and to enjoin the forfeiture of a contract for 
 non-payment thereof, was held to involve an inquiry into the in- 
 ternal management of a foreign corporation and is not within the 
 jurisdiction of the courts of 'the State. 
 
 Condon vs. Mutual Reserve Fund Life Ass'n, March 14th, 1S99, 89 
 Maryland 99. 
 
 Contracts — Rules of Construction. 
 
 A contract of insurance is to be construed according to the con- 
 stitution and laws of the society and the laws of its domicile. 
 
 Condon vs. Mutual Reserve Fund Life Ass'n, March 14th. 1899, 89 
 Maryland 99.
 
 414 FRATERNAL SOCIETY LAW 
 
 Courts Will Not Interfere With Internal Affairs of Foreign Society. 
 
 The plaintiff filed a liill alleging that his assessments had been 
 fraudulently and illegally increased in amount by the society for 
 the purpose of forcing him to lapse, and that the amount the society 
 assigned to him in the reserve fund was less than the amount due 
 upon a true accounting. The bill asked for an injunction restrain- 
 ing the forfeiture of plaintiff's contract for non-payment of the 
 extra assessment, and for an accounting of the assets and receipts 
 and for the appointment of a receiver. It was held that the ques- 
 tion of whether the condition of the company required the levy of 
 extra assessments and whether they were unnecessary and fraudu- 
 lent, could not be determined until the whole management of the 
 association and an accounting made of its liabilities and assets, 
 funds on hand and claims shoidd be made and that since this in- 
 volved an inquiry into the internal affairs of a foreign corporation 
 the courts of this State have no jurisdiction to maintain the bill. 
 
 Condon vs. Mutual Reserve Fund Life Ass'n, March 14th, 1S99, 89 
 Maryland 99. 
 
 Beneficiary — Death of Before Member. 
 
 The member's beneficiary died during his lifetime and he failed 
 to designate another. The laws of the society provided that the 
 member had a right to change the beneficiary at will and for the 
 distribution of the fiuid upon the death of the member, in case he 
 did not designate a beneficiary, but no provision was made for the 
 distribution of the fund, in the event 'of death of the beneficiary 
 during the lifetime of the member, and no new designation having 
 been made. It was held that the proceeds of the certificate in ques- 
 tion were payable to the administrator of the wife, her interests 
 being the same or similar to tliat of a beneficiary in an ordinary life 
 insurance policy, and that the fact that her husband, the member, 
 attempted to dispose of the fund by his will made no difference, 
 because he had no property interest in the certificate, but only a 
 power to designate a beneficiary in the manner prescribed by the 
 by-laws of the association. This was an interpleader case. The 
 claim for the fund was made bA' the member's executor, the admin-
 
 THE STATE OF MARYLAND 415 
 
 istrator of the mpmher's wife, the member's surviving eliililreii, and 
 children of liis deceased children, and the court said: "The designa- 
 tion by Mr. Herring of his wife, Ann M. Herring, as his beneficiary, 
 when he joined the assoeiittion, eonferrcd upnn her ;i beneficial in- 
 terest in the proceeds of the policy when dnc. The estate thus 
 acquired by her of the insurance and its proceeds, although it was 
 liable to have been defeated by the ai)pointnient of a new beneficiary 
 by her husband, if he had made a new appointment, possessed th^ 
 inherent qualities of the estate of the beneficiary under an ordinary 
 policy of life insurance and was a valuable asset, which at her death 
 devolved upon her administrator. The title of the administrator 
 would have been divested after her death if the husband had in his 
 lifetime designated a new beneficiary in the manner prescribed by 
 the by-laws of the association." 
 
 Thomas vs. Cochran, June 20th, 1S98, 89 Maryland 390. 
 
 Assignment of Certificate Valid Unless Prohibited. 
 
 A benefit cei'tificate was assigned by a member and his wife, the 
 designated beneficiary, to an existing creditor in satisfaction of the 
 member's debt to the cx-editor, and the latter thereafter paid the 
 assessment upon the certificate. On the death of the member the 
 beneficiary alleged that the true intent of the parties was that she 
 should receive the amount of the certificate, less the claim of the 
 creditor and that a writing of an absolute assignment was fraudu- 
 lent. The question was also raised in the case as to whether the 
 assignment could be enforced in an action at law. The court held 
 that inasmuch as the by-laws did not prohibit an assignment, that 
 the certificate was assignable, and that the creditor was entitled to 
 the fund. 
 
 Clogg vs. McDaniel, June 20th, 1899, 89 Maryland 416. 
 
 What State Laws Govern — Misrepresentation. 
 
 A certificate was issued by the Royal Arcanum at its home office 
 in JIassaehusetts to a resident of ^Maryland. The statute of ilassa-
 
 416 FRATERNAL SOCIETY LAW 
 
 chusetts provided that, ' ' When any certificate is issued to a resident 
 of the commonwealth, by any fraternal beneficiary corporation or- 
 ganized under the laws of" that commonwealth, that a misrepre- 
 sentation in the application should not avoid the certificate unless 
 the misrepresentation was made with actual intent to deceive in 
 regard to the matter misrepresented, and thereby increasing the 
 risk. The court in Maryland passing upon this case held that the 
 act of the Massachusetts legislature applied only to certificates 
 issued to residents of that commonwealth, yet since in benefit socie- 
 ties all members should be treated alike, the certificate should be 
 construed as though the member was a resident of Massachusetts, 
 and the suit pending in the courts of that State. 
 
 Supreme Council Royal Arcanum vs. Brashears, June 22nd, 1899, 89 
 Maryland 624. 
 
 Suicide — Presumptions Against. 
 
 Where it appears that the death of a member was caused by sui- 
 cide or accident, and the proven facts do not show which, the pre- 
 sumption is that death was from accident. 
 
 Travelers' Insurance Co. vs. Nicklas, November 17th, 1898, 88 Mary- 
 land, 470. 
 
 Valid Requirements for Proofs of Loss to be Filed Within Short 
 Time. 
 
 A condition of a contract of insurance requiring proofs of loss to 
 be made within 60 days after the loss occurs is held to be valid. 
 
 Caledonian Fire Insurance Co. vs. Traub, June 23rd, 1897, 86 Mary- 
 land 86. 
 
 Charter Powers of Societies. 
 
 For an interesting case involving the exercise of powers by a fra- 
 ternal society, the limitations upon such, societies, by-laws, power to 
 enact and the forfeiture of their charters for violation of their 
 powers, see case of:
 
 THB STATE OF MARYLAND 417 
 
 International Fraternal Alliance vs. State of Maryland, January 4th, 
 1898, 86 Maryland 550. 
 
 Exclusive Jurisdiction in Tribunals of Societies. 
 
 "Where the tribunals of a fraternal society have the power to de- 
 cide disputed questions, their jurisdiction is exclusive, whether 
 there be a by-law of the society stating such decisions to be final 
 or not, and the courts cannot be invoked to review their decisions 
 of questions coming properly before them, except in cases of fraud. 
 
 Donnelly vs. Supreme Council Catholic Benevolent Legion, June, 
 1906, Court of Appeals of Maryland, 67 Atl. 276. 
 
 Members Bound by Laws Though Ignorant of Them. 
 
 A member is bound by all the laws in force at the date of his 
 joining the society, whether such laws be specifically called to his 
 attention or not. 
 
 Donnelly vs. Supreme Council Catholic Benevolent Legion, June, 
 1906, Court of Appeals of Maryland, 67 Atl. 276. 
 
 27
 
 41g FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF MASSACHUSETTS. 
 
 CHAPTER 22. 
 (Chapter 119, Eevised Laws.) 
 
 Section 1. Seven or more persons, residents of this common- 
 wealth, may form a fraternal beneficiary corporation for the pur- 
 pose of providing' for the payment of benefits in the case of death 
 or disability, or of both. The disability may be temporary or perma- 
 nent and the result of sickness or of accident. Any educational, 
 charitable, benevolent or social purpose may be united therewith. 
 
 The membership may be limited to members of a particular order, 
 class or fraternity-, to the employees of towns or cities, the common- 
 wealth, or the federal government, or of a designated firm, business 
 house or corporation ; or to persons of the same occupation. 
 
 If its membership is not limited as above provided, its business 
 shall be conducted on the lodge system, with a representative form 
 of government, and, in such case, the incorporators, their successors 
 and associates, with the officers, ex-presiding officers, and such per- 
 sons as may be admitted as representatives, shall be a supreme or 
 governing body, with power to create subordinate bodies by the 
 grant to applicants therefor of charters authorizing those named 
 therein to organize as a subordinate lodge and to admit members 
 after its organization, in accordance with such ritual as the supreme 
 or governing body may prescribe. 
 
 Section 2. The corporation shall be formed in the manner pre- 
 scribed in. and be subject to the provisions of, sections fifteen to
 
 rUil STATE OF MASSACHUtil'JTTti 419 
 
 twenty, inclusive, oi' ('lia))ter one hundretl and ten, except as foUow.s: 
 
 The agreement shall nmit llie statement of the amount of its 
 capital stock and llic paf \alue and number of its sinires. 
 
 All officers shall lie elected by ballot and the presidi'iit shall 
 be included among- the officers to be electetl at the first meeting 
 by the associates, and no person who has not subscribed the; agree- 
 ment of association shall be eligible as a director or other officer. 
 
 The provisions of section six of chapter one hundred and twenty- 
 five shall apply to such corporation, except that the financial officer 
 shall not be required to sign or make oath to the certificate of 
 organization. 
 
 The b.y-laws nuiy, unless it is otherwise provided, also prescribe 
 the officers and elective members of standing committees, who may 
 he, exofficios, directors or other officers corresponding thereto ; the 
 method of calling its meetings ami the notice tliereof which shall be 
 given; the right of attendance, individual or representative, at its 
 meetings; the assessments and benefits in ease of disability or death, 
 and the conditions upon which the same shall l)e j);iid ; the amount 
 which shall be deemed one full individual assessment for the respec- 
 tive funds and for calls for fractional parts thereof; and the loss 
 or forfeiture of membership and benetits, the method of the amend- 
 ment of the by-laws and such other provisions as the corporation 
 may determine. 
 
 Lf the corporation conducts its business as a fratei'nal society on 
 the lodge system, it shall have a ritualistic form of work and no 
 person shall be admitted as a member thereof unless he has pre- 
 viously made a written application therefor, and has been initiated 
 in, and become a member of, a local branch of said corporation. Its. 
 by-laws shall provide that meetings of said branches shall be held 
 at least once each month, and may provide that, in addition to repre- 
 sentatives chosen by the grand or subordinate bodies, the incorpora- 
 tors, officers, members of standing committees and the ex-presiding 
 officers of the supreme or governing body may be members thereof. 
 
 The certificate of organization and the records shall be submitted 
 to the insurance commissioner, instead of the commissioner of cor- 
 porations, and he shall perform the duties relative thereto which are 
 reqidred of the commissioner of corporations relative to manufact- 
 ;n"ing corporations.
 
 420 FRATERNAL SOCIETY LAW 
 
 The fees to be paid to the secretary of the commonwealth upon the 
 filing of the certificate of organization shall be five dollars. 
 
 Section 3. Officers chosen at the first meeting of the association 
 shall hold office until the next meeting of the corporation for the 
 election of officers, the date of which, within two years of the time 
 of organization, shall be prescribed by the by-laws. At such meet- 
 ing, and thereafter at least biennially, the officers shall be chosen by 
 ballot and shall hold office until their successors are elected and 
 qualified. Standing committees or boards having prescribed duties 
 under the bj'-laws, including those the members of which are by 
 such by-laws made directors or other officers corresponding thereto, 
 may be constituted by the election of one or more members thereof 
 annually, to serve for not more than three years under any one 
 election. No person shall be elected or appointed to an administra- 
 tive position for more than three years at any one election or ap- 
 pointment. 
 
 Section 4. No corporation organized as aforesaid subsequent to 
 the twenty-third day of May in the year nineteen hundred and oue 
 to conduct business as a fraternal society on the lodge system, or 
 w^hieh limits its membership to a particular order or fraternity, shall 
 incur any liability or issue anj" benefit certificate until it has re- 
 ceived from the insurance commissioner a certificate to the eft'eet 
 that it has complied with all the requirements of law and is duly 
 authorized to transact business in this commonwealth ; but the fore- 
 going provisions shall not apply to a eorpoi-ation which confines its 
 membership to that of a particular order or fraternity in any one 
 county, or to a lodge of such order or fraternity. Before such cer- 
 tificate is granted, the corporation must present satisfactory evi- 
 dence to the insurance commissioner that at least five hundred per- 
 sons have each paid one advance assessment for its iiiortuarv or dis- 
 ability business, or both if such business is combined, at its estab- 
 lished rates, and have become bona fide members of the corporation. 
 If such corporation is a fraternal society on the lodge system, pa.ving 
 a death benefit, it must also show that it has established mortuary 
 assessment rates which are not lower than those indicated as neces- 
 sary on till' twenty-third <la\' of Ma\' in the year nineteen hundred 
 anil iiiir li\- the ■"Natinnnl l<'r,itri'nal Cinmress Mortalitv Tables."
 
 THE STATE OF MAtlSACHUSETTS 421 
 
 unless it is a fraternal beneficiary corporation which confines its 
 membership to the employees of towns or cities, the commonwealth, 
 the federal government, of a designated firm, business house or cor- 
 poration, or to persons ol' the same occui)ation. 
 
 Section 5. A domestic corporation subject to the provisions of 
 this chapter may hold its annual meetings in any State, in the Dis- 
 trict of Columbia, or in the Dominion of Canada or a province 
 thereof, if in such State, district or province it has one or more local 
 branches; and its acts at such meetings shall have the same effect 
 as if done within this commonwealth. 
 
 Section 6. A corporation duly organized and transacting busi- 
 ness under the provisions of this chapter, which conducts its business 
 as a fraternal society on the lodge system, or which limits its certifi- 
 cate holders to a particular order, class or fraternity, or to the em- 
 ployees of towns or cities, the commonwealth, or the federal govern- 
 ment, or of a designated firm, business house or corporation, or to 
 persons of the same occupation, may make provision for the pay- 
 ment of benefits in ease of death or disability or of both. The funds 
 from which the payment of such benefits shall be made shall be 
 derived only from assessments collected from the members, except 
 as provided in sections eight, nine and ten. The fund from which 
 the expenses shall be defrayed may be derived from a per capita 
 tax, dues or expense assessments. Such provisions, funds, assess- 
 ments and payments shall be as required in the by-laws of the cor- 
 poration. The benefit certificate shall, in effect, provide that if the 
 death of the member therein named shall occur when one full assess- 
 ment on each member would not amount to the face amount of the 
 maximum certificate of sucli corporation, then the amount paid the 
 beneficiary thereunder shall not exceed the amount of such full 
 assessment or the proportionate part thereof which said face amount 
 named in such certificate bears to sucli maximum certificate, but 
 this restriction shall not apply to a corporation which confines its 
 membership to the permanent employees of towns or cities, the com- 
 monwealth, or the federal government, nor to a corporation having 
 an emergency or reserve fund, imtil such fund shall have been ex- 
 hausted. Such death benefit shall be payable only to the husband, 
 wife, betrothed, child by legal adoption, parent by legal adoption,
 
 422 FRATERNAL HOGIETY LAW 
 
 or relatives of. or persons dependent upon, the member named in 
 the benefit certificate; bnt a member of any fraternal beneficiary 
 corporation may, with the consent of tlie officers thereof, name as 
 beneficiary a home located within this commonwealth and incorpo- 
 rated under the laws thereof, and maintained and supported by any 
 secret fraternity or order for the care and maintenance of its aged, 
 infirm, indigent or unfortunate members, or for the care and support 
 of the wife or widow of such member, or for the care, support and 
 education of minor children of such members or of deceased members, 
 to the extent of the amount disbursed for the benefit of said member, 
 wife, widow or child, by .such home, at rate of average cost of 
 maintenance thereof, during- the period of occupancy of such mem- 
 ber, wife, widow or child, Avith any sums expended for assessments, 
 dues, tax or other payments by such home by reason of such benefit 
 certificates; and, subject to the limitations of this section, another 
 I^erson as beneficiary of the remainder. If a benefit certificate has 
 been lawfully issued and the beneficiary therein named and the hus- 
 band, wife, betrothed, child, child by legal adoj)tion, parent, jiareut 
 b.v legal adoption, or persons dependent upon the member named 
 in the benefit certificate have all died, the member with the consent 
 of the officers of the corporation, and under such rules as they may 
 prescribe, may have any other person substituted as beneficiary 
 therein. 
 
 Section 7. A corporation organized under or conducting its busi- 
 ness in accordance with the provisions of this chapter may hold as 
 a death fund belonging to the beneficiaries of members when de- 
 ceased not more than the amount of thi-ee a.ssessments from a gen- 
 ei'al or unlimited membership, or of three assessments from each 
 limited class or division of its members; and in addition thereto may 
 create, collect, maintain, disburse and apply an emergency fund in 
 accordance with its by-laws, not however at any time exceeding 
 in amount collected from its members five per cent, of the aggregate 
 face value of all its then outstanding benefit certificates. If any i>art 
 of such fimd jwiyable by a member under such by-laws remains un- 
 paid at his decease, it nuiy be deducted from the amount payable to 
 his betiefieiary or benefir-iaries; but any decrease in such face value 
 shall not require a corresponding diminution of such emergency
 
 THE STATE OF MASSACHUSETTS 423 
 
 fund. The emergency fund shall be used only for the payment of 
 death or disability benefits. Such death fund while held in trust 
 shall be invested in securities in which insurance companies may in- 
 vest their capital, or deposited in safe banking institutions subject 
 to sight drafts, for distribution to the beneficiaries aforesaid. When- 
 ever the death fund exceeds, above all known liabilities, the 
 amount of three assessments as aforesaid, .such excess shall be trans- 
 ferred to the emergency fund. Such emergency fund shall be in- 
 vested in securities in which insurance companies may invest their 
 capital, but a part thereof, not exceeding twenty per cent, may be 
 invested in a building for vise and occupancy by the corporation as 
 its home office within this commonwealth. Such securities, if regis- 
 tered or recorded, sliall be taken and stand in the name of the cor- 
 poration, and all the securities in which the emergency fund is in- 
 vested shall be deposited with the treasurer and receiver general; 
 but the corporation may at any time exhange any part of said 
 securities for other authorized securities which the treasurer and 
 receiver general determines are of equal value. No part of said se- 
 curities shall be withdrawn except upon a requisition signed by 
 three-fourths of the directors or executive committee, or other offi- 
 cers corresponding thereto, and indorsed by the insurance commis- 
 sioner, setting forth that the same is to be used for the purposes of 
 the trust. The income from securities so deposited shall be paid to 
 the corporation for the uses of the fund as specified in the by-laws. 
 No sale, assignment, release, discharge, or surrender of securities 
 so deposited to or in favor of any obligor, mortgagor or other person, 
 shall be valid against the corporation owning the same, unless the 
 original papers which constitute, or are the evidence of, said securi- 
 ties, are transferred or surrendered to the person entitled thereto, 
 except in case of the actual loss or destruction thereof. 
 
 Section 8. No part of the death, disability, or emergency funds 
 herein provided for shall be used for any purposes other than those 
 specifically prescribed in this chapter, and no assessment for the 
 disability fund shall be called while there remains on hand of such 
 fund an amount equal to that received from three assessments ; but 
 payments for total permanent disability may be made from the 
 death fund if made in a single payment.
 
 424 FRATERNAL SOCIETY LAW 
 
 No contract under this chapter shall be valid which shall be con- 
 ditional upon an agreement or understanding that the person to 
 whona the death benefit is made payable shall pay the dues or assess- 
 ments. Death, disability and expense assessments may be called 
 together; but the proportion to be used for each purpose shall be 
 distinctly stated and the amount received for each fund shall be 
 held and used only in the manner heretofore sfjecified; but trans- 
 fers from the expense fund to any other fund may be made by the 
 directors. 
 
 Section 9. A domestic corporation subject to the provisions of 
 this chapter, in addition to the revenues in this chapter provided, 
 may receive and hold gifts, bequests and money from other sources, 
 which shall be held in a separate fund; subject however to transfer 
 in accordance with its by-laws to funds herein authorized. 
 
 Section 10. A corporation organized under or conducting its 
 business in accordance with the provisions of this chapter, which 
 on the twenty-eighth day of June in the year eighteen hundred and 
 ninety-nine was, or the members of which then formed, a part or 
 jurisdiction of one general order or fraternity conducted on the lodge 
 system and paying only death, sick, disability or old age benefits, 
 and having a common name and ritualistic ceremonies, and which 
 corporation was then in affiliation with the supreme or governing 
 body of such order or fraternity, may continue to affiliate with and 
 contribute to the support of such supreme body under the methods 
 and laws then existing, or which have been or hereafter may be 
 adopted by both said corporation and supreme body, and in addition 
 to the other rights and authority conferred by this chapter may by 
 assessments or through its other funds provide for death benefits 
 and the payment thereof, and maj' pay death benefits, to or for the 
 beneficiaries of deceased members of such order or fraternity, hold- 
 ing benefit certificates issued not by said corporation but by said 
 supreme body or bj^ one of the grand or subordinate bodies thereof 
 organized or incorporated elsewhere than in this commonwealth, 
 imder an arrangement or agreement with said supreme body and 
 in compliance with the laws or rules thereof, whereby said corpora- 
 tion may afford relief and aid by payment of or for such death 
 benefits as aforesaid, or itself receive similar payments for relief and
 
 THE STATE OF MASSACHUSETTS 425 
 
 aid to the beneficiaries of its deceased members as the case may 
 require and such laws and rules provide ; but this authority shall 
 not permit the payment of benefits other than those arising from 
 death. 
 
 Section 11. A corporation organized under or conducting its busi- 
 ness in accordance with the provisions of tliis chapter, and which 
 has no provision for a per capita tax, or for dues payable to the 
 supreme or governing body for expenses, may make not more than 
 three assessments a year, to meet its reasonably necessary expenses. 
 The purpose of such asses-sments shall be clearly stated in calls there- 
 for, and no expense assessment shall be called while the amount of 
 one assessment remains on hand. 
 
 A corporation organized as aforesaid which limits its membership 
 to the permanent employees of towns or cities, the commonwealth, or 
 the federal government, and which does not pay death benefits, may 
 pay annuities or gratuities contingent upon disability or long service, 
 and may fix the amount of the annual assessment therefor. 
 
 A corporation which is subject to the provisions of this chapter 
 may reinsure with or transfer its membership, certificates or funds 
 to any other corporation or organization which is authorized to do 
 business under this chapter in this commonwealth. The agreement 
 of transfer or reinsurance shall first be submitted to and approved 
 by a two-thirds vote of the certificate holders of each corporation 
 or organization present at meetings called to consider the same, of 
 which meetings written or printed notice shall be mailed to each 
 certificate holder at least thirty days before the day fixed for the 
 meeting, and such agreement shall not take effect until a cer- 
 tified copy thereof is filed with the insurance commissioner. The 
 members of fraternal beneficiary corporations shall not vote by 
 proxy; but if the instrument appointing the proxy is filed with the 
 secretary of the corporation at least fifteen days before the day fixed 
 for a meeting called to consider the agreements of transfer aforesaid, 
 they may so vote at such meeting. 
 
 Section 12. A fraternal beneficiary corporation, — or an associa- 
 tion which limits its membership to a particular order, class or fra- 
 ternitj', or to the employees of towns or cities, the commonwealth, or 
 the federal government, or of a designated firm, business house or
 
 426 FRATERNAL SOCIETY LAW 
 
 corporation, — or a secret fraternity or order, — or a purely cliaritable 
 association or corporation existing on the twenty-eighth day of June 
 in the year eighteen hundred and ninety-nine or on the twenty- 
 third day of May in the year nineteen hundred and one, — any one 
 of which pays a death or funeral benefit not exceeding two hundred 
 dollars, or disability benefits not exceeding ten dollars a week, or an 
 annuity or gratuity contingent upon length of service not exceed- 
 ing five hundred dollars in any one year, or any or all of said bene- 
 fits, and which is not conducted as a business enterprise or for profit, 
 may transact in this commonwealth such business, without otherwise 
 conforming to the provisions of this chapter. An association which 
 limits its membership, benefits and business as described in this sec- 
 tion may be incorporated in the manner prescribed in sections one 
 and two of this chapter, so far as the same are applicable. The 
 money or other benefit to be paid by such a corporation shall be 
 exempt from attachment as provided in section seventeen of this 
 chapter. The recording officer of any organization claiming ex- 
 emption under this section shall file a certified copj' of its by-laws 
 with the insurance commissioner whenever he shall so require in 
 writing. 
 
 Section 13. A fi'aternal ])eneficiary corporation organized under 
 the laws of another State of the United States or of the Dominion of 
 Canada or a province thereof and paying only disability and death 
 benefits may be' admitted to do the business defined in this chapter 
 if it files with the insurance commissioner a duly certified copy of 
 its charter and agxeement of association, and a copj' of its con- 
 stitution and by-laws certified to by its secretary or corresponding 
 officer, with the appointment of such commissioner as the person 
 upon whom process shall be served as provided in section four of 
 chapter one hundred and twenty-six, and a statement under oath 
 of the president and secretary in the form required by such com- 
 missioner of its business for the preceding year, if such corporation 
 shall be shown to be authorized or permitted to do business in the 
 State, dominion or province in which it is incorporated or organized, 
 and if similar cor])orations organized under the laws of this common- 
 wealth are authorized to do business in such State, dominion or 
 province. Xo such corporation which was not doing business in this
 
 THE STATE OF MASSACHUSETTS 427 
 
 commornvpiilth on the twciily-tliird diiy of .M;iy in tlic yciir nineteen 
 liuiidred and one shall hei-eafter he admitted to do sacdi l)usiiies.s in 
 this comiiionwealth nnless it shall have adopted and have in force 
 moi'tnary assessment rates whieh are not lower than those then indi- 
 cated as necessary hy the "National Fraternal Congress Mortality 
 Tahles. " It' any other State, the Dominion of Canada or a province 
 thereof shall impose any obligation in excess of the obligations im- 
 posed by the provisions of this chapter upon any such corporation of 
 this commonwealth, like obligation shall be imposed on similar corpo- 
 rations of such State, ibmiinion or province doing business in this 
 commonwealth. The tran.saction of the business defined in this chap- 
 ter by any corporation, association, partnership or individuals, unless 
 organized, continuing or admitted as provided herein, is forbidden. 
 A c(U-poration heretofore atlmitted to do business in this common- 
 wealth under the corresponding provisions of earlier laws may con- 
 tinue such business without being re-admitted. Imt sh:dl otherwise be 
 subject to the provisions of this chapter. 
 
 Section 14. A corporation doing business under the foregoing 
 provisions shall annually, on or before the first day of February, 
 report to the insurance commissioner the location of its principal 
 office in this commonwealth, and the names and addresses of its 
 president, secretary and treasurer, or other officers corresponding 
 thereto ; and shall make under oath such statements of its member- 
 shi]) and financial transactions for the year ending on the preceding 
 thirty-first day of December, as the commissioner may require to 
 show its business and standing; and at all times shall make under 
 oath all statements relative to said corporation required by said 
 commissioner. For cause the conunissioner nuiy extend the time 
 within which an annual statement may be filed, to a date not later 
 than the first day of Llarch. Such statement shall be subscribed 
 and sworn to bj' the president and secretary of the corporation, or 
 officers corresponding thereto. For wilfully making a false state- 
 ment, if the statement, whether annual or otherwise, is required by 
 law, the corporation and the persons making oath to or subscribing 
 the statement shall severally be punished by a fine of not less than 
 one htuidred nor more than five hundred dollars. 
 
 Section 15. The insurance commissioner shall, ujion request of a
 
 428 FRATERNAL SOCIETY LAW 
 
 domestic corporation doing business on the lodge system, personally 
 or by some person designated by him visit such cocporation and 
 thoroughly inspect and examine its affairs, especially as to its finan- 
 cial condition. "When he determines it to be prudent for the protec- 
 tion of the certificate holders in the commonwealth, he may in like 
 manner visit and examine, or cause to be visited and examined 
 by some competent person or persons whom he may appoint for the 
 purpose, any foreign fraternal beneficiary corporation applying for 
 admission or already admitted to do business in this commonwealth, 
 and such foreign corj)oratiou shall pay the expense of such examina- 
 tion. For the purposes aforesaid, the commissioner or person making 
 the examination shall have free access to all the books and papers 
 that relate to the business of such corporation, and to the books and 
 papers kept by any of its organizers, and may summon and admin- 
 ister the oath to and examine as witness the directors, officers, 
 agents, organizers and trustees of any such corporation, and any 
 other persons, relative to its financial affairs, transactions and condi- 
 tions. He may in his discretion accept, in lieu of such examination, 
 the examination of the insurance depai'tment of the State, the 
 Dominion of Canada or a province thereof in which such foreign 
 corporation is organized. 
 
 Section 16'. No corporation organized or transacting business 
 under the provisions of this chapter shall employ paid agents in 
 soliciting or jirocuring business; but corporations which transact 
 business as fraternal societies on the lodge system may employ organ- 
 izers in the preliminary organization of local branches, and members, 
 as officers or deputies, to assist members of weak and inactive local 
 branches to increase their membership, if their compensation does 
 not depend upon and is not affected by such increase, and corpo- 
 rations which limit their certificate holders to a particular order or 
 fraternity may employ and pay members for securing new members, 
 and any corporation may pay local collectors. Whoever solicits 
 membership for, or in any manner assists in procuring membership 
 in. or aids in the transaction of business for, a corporation or organ- 
 ization not aiilliiiri/,('(l to do Inisiness in this commomvealth, siuill 
 be punished as i)r((vided in section twenty-one of this chapter. A 
 eorixn-aliou organized or transacting business under or as defined
 
 THE STATE OF MASSACHUSETTS 429 
 
 ill this chapter shall, within two months after the adoption by it 
 of an amendment to its by-laws, file with the insurance commis- 
 sioner a copy tliereof, settiiiK forth such ameiidiiieiit distinctly and 
 clcai-ly, 1111(1 this cdpy sluill he certified by its rccordiiiy- officer. 
 
 Section 17. Tlie money or other benefit to be puid by a corpora- 
 tion authorized to do business under the provisions of this chajiter 
 shall not be liable to attachment by trustee or other jirocess, or be 
 seized, talvcii apiii'(ipi'i;ited or ap])lied by any legal or iMjiiitable 
 pi'ocess, or by operiitioii of biw, to jiay a debt or liability of a cer- 
 tificate holder, or a beneficiary named therein. 
 
 Section 18. A solicitor, agent or examining jjliysiciaii wlm sliall 
 knowingly or wilfully make any false or fraudulent stiiteniciit or 
 representation in or with reference to any application for meiiil)er- 
 ship, or who shall make any false or fraudulent statement or repre- 
 sentation for the purpose of obtaining any money from or benefit 
 in any corporation transacting business under the provisions of this 
 chapter, shall be punished by a fine of not less than one hundred nor 
 more than five hundred dollars or by imprisonment for not less than 
 thirty days nor more than one .year, or by both such fine and im- 
 prisonment. A person wilfully making a false statement of any 
 material fact or thing in a sworn statement as to the death or dis- 
 ability of a certificate holder in any such corporation, for the pur- 
 pose of procuring payment of a benefit named in the certificate of 
 such holder, shall be guilty of perjury. 
 
 Section 19. If the insurance commissioner on investigation is 
 satisfied that a corporation organized or conducting business under 
 the provisions of this chapter has exceeded its powers, or has failed 
 to comply with any provisions of law, or has conducted business 
 fraudulently, or that its condition is such as to render its further 
 proceedings hazardous to the public or to its certificate holders, or 
 if such corporation shall vote to discontinue its business, he shall 
 report the facts to the attorne.y general, who ma.v thereupon apply 
 to the supreme judicial court or the superior court, which shall have 
 jurisdiction in equity of such application for an injunction restrain- 
 ing such corporation in whole or in part from the further prosecu- 
 tion of business. Before making such report to the attorney general 
 the insurance commissioner, if he is satisfied that the corporation
 
 430 " FRATERNAL SOCIETY LAW 
 
 has exceeded its powers, or has failed to comply with any provision 
 of law, or has conducted its business fraudulently, shall notify such 
 corporation of particulars in which he decides that it has exceeded 
 its powers, or of the provisions of law with which it has failed to 
 comply, or of the fraudulent matter in the conduct of its business, 
 and shall give such corporation a reasonable opportunity to comply 
 with the law or amend its methods. The application shall state the 
 specific facts relied upon as in excess, power, or as neglect or 
 violation of law, or as constituting- fraudulent conduct of business. 
 The court may issue such injunction forthwith or, upon notice and 
 hearing thereon, may issue an injunction or decree for the removal 
 of au.y officer of said corporation, and may substitute a suitable per- 
 son to serve in his stead until a successor is chosen, and may make 
 such further orders and decrees as the interests of the corporation, 
 the certificate holders and the public may require; and may, after a 
 full hearing, appoint a permanent receiver to take possession of the 
 property and effects of the corporation, and to settle its affairs, sub- 
 ject to such rules and orders as the court may from time to time 
 prescribe. No such injunction shall issue, and no order, judgment 
 or decree appointing a temporary or permanent receiver shall be 
 made or granted, otherwise than upon the application of the attorney 
 general, on his own motion, or at the relation of the insurance com- 
 missioner, whether the commonwealth or a member, or other party 
 seeks relief. 
 
 Section 20. A domestic fraternal beneficiaiy corporation may, 
 with the approval of the insurance commissioner, change the pur- 
 poses for which it was organized so as to permit it to transact any 
 business authorized by this chapter. Upon such approval the pre- 
 siding, financial and recording officers, and a nutjority of its other 
 officers having the powers of directors, shall file in the office of the 
 secretary of the commonwealth a certificate, with the approval of 
 the insurance commissioner indorsed thereon, setting forth the 
 change in the jiurposes of the corporation. The secretary of the 
 commonwealth shall, upon receipt thereof and upon the payment of 
 five dollars, cause such certificate to be filed and recorded in his 
 office. Such action shall operate to reincorporate the corporation 
 hereunder, but reincorporation shall not be required. Every domes-
 
 THE STATE OF MASSACHUSETTS 431 
 
 tic fraternal beneficiary corporation may continue to exercise all 
 the rights, powers and privileges conferred by the provisions of this 
 chapter or of its certificate of incorporation or charter not incon- 
 sistent herewith, and shall be subject to the i)rovisions of this 
 chapter, as if reincorporated hereunder. No certificate of incor- 
 poration granted under the provisions of this chapter shall continue 
 valid after one year from the date of such certificate, unless the 
 organization has been completed and business begun thereiuider. 
 The certificate of incorporation or the charter of any corporation 
 subject to the provisions of this chapter, and any certificate here- 
 after granted under the provisions of this chapter, shall become in- 
 valid if during a period of twelve months no business is transacted 
 thereunder. 
 
 Section 21. A corporation, association or society transacting 
 business in this commonwealth and an agent or officer thereof neg- 
 lecting to comply with or violating any provision of this chapter 
 shall be punished by a fine of not less than fifty nor more than two 
 hundred dollars or by imprisonment for not less than three months 
 nor more than two years, or by both such fine and imprisonment. 
 
 Section 22. The provisions of chapter one hundred and eighteen, 
 except section ninety-five, shall not apply to corporations 
 organized or admitted under and transacting business author- 
 ized by the provisions of this chapter; and corporations or associa- 
 tions heretofore exempted by special laws from the provisions of 
 chapter four hundred and forty-two of the acts of the year eighteen 
 hundred and ninety-nine shall not be subject to the provisions of 
 this chapter. 
 
 Certain Fraternal Beneficiary Corporations May Become Assessment 
 Companies. 
 
 Section 1. Any domestic corporation now doing business under 
 the provisions of chapter one hundred and nineteen of the Re- 
 vised Laws and acts amendatory thereof, whether originally incorpo- 
 rated under such act or not, which limits its certificate holders to a 
 particular order or fraternity, may at any time within seven years 
 after the date of the approval of this act, at a meeting called for the 
 purpose, adopt its provisions, and may thereafter carry on the busi-
 
 432 FRATERNAL SOCIETY LAW 
 
 ness defined in section one of chapter one hundred and twenty of 
 the Revised Laws, and may. in addition thereto, provide for the 
 payment of funeral benefits, not exceeding one hundred dollars, in 
 case of the death of the assured by sickness, and shall thereafter 
 conduct such business under the provisions of said chapter one hun- 
 dred and twenty, as modified by this act, and shall be deemed an 
 assessment insurance company. 
 
 Section 2. Such vote and adoption shall not in any way affect 
 the existing business of such adopting company, nor prevent its 
 continuance, nor annul or cancel the membership of such company, 
 nor annul, cancel, modify or affect in any way its policies or cer- 
 tificates of insurance, but all certificates in force and outstanding 
 when the provisions of this act are adopted by anj' such company 
 shall continue in full force and effect in all their provisions, agree- 
 ments and undertakings as the contracts, policies and certificates of 
 such adopting company. Such policies or certificates shall be con- 
 strued according to the provisions of law under which they were 
 issued, and any defenses or evidence relative to such policies open 
 under such provisions shall continue a defense and shall be received 
 as evidence in any controversy between the parties to or interested 
 in said policies or certificates. 
 
 Section 3. If a benefit certificate has been lawfully issued and 
 the beneficiary named therein shall have died, the member with the 
 consent of the officers of the company, and under such rules as they 
 may prescribe, may have any other person having an insurable inter- 
 est and permitted by the by-laws, substituted as beneficiary therein. 
 Said company may by by-law provide that should a member become 
 entitled to a benefit before he shall have i)aid a benefit assessment 
 the company may, as a condition precedent to the payment of the 
 benefit, require such member to pay the amount of one such assess- 
 ment. Standing committees or boards having prescribed duties 
 under the by-laws, including those the members of which are by such 
 by-laws made directors or other officers corresponding thereto, may 
 be constituted by the election of one or more members thereof an- 
 nually, to serve for not more than three years under any one elec- 
 tion. No person shall be elected or appointed to an administrative 
 position for more than three years at any one election or appoint- 
 ment.
 
 THE STATE OF MASSACHUSETTS 433 
 
 Section 4. Any company adopting the provisions of this net sIkiII 
 file in the office of the secretary of the commonwealth a copy of the 
 vote of adoption, certified by its clerk or recording officer, within 
 thirty days rifter the final adjournment of tlic meeting at which the 
 vote was passed, antl thereafter sucli i-oinpjiny sliiill he subject to 
 the provisions of chapter one hundred and twenty and its amend- 
 ments, except as otherwise provided in this act. 
 
 Section 5. No amendments hereafter made to any fraternal or 
 assessment act shall apply to corporations or associations doing busi- 
 ness under the provisions of this act. unless such amendments are 
 specifically made applicable thereto. Approved March 14, 1904. 
 
 Benefit to Member on Death of Wife. 
 
 Section 1. In the event of the death of the wife of a member of 
 anj' such fraternal organization as is designated in section twelve 
 of chapter one hundred and nineteen of the Revised Laws, a portion 
 of the amount payable at the death of such member may be paid 
 to him: provided, that the amount so paid shall be deducted from 
 the amount payable at the member's death, and that the total 
 amount so paid either at the death of the member or of the member's 
 wife shall not exceed the amount allowed by said section twelve to 
 be paid at the death of a member. 
 
 Section 2. This act shall take effect upon its passage. Approved 
 April 29, 1904. 
 
 Its Name May Exclude a Foreign Fraternal. 
 
 No fraternal beneficiary corporation .shall be admitted to do busi- 
 ness in this commonwealth under a name in use by a corporation 
 organized under the laws of this State, or under a name so similar 
 thereto as to be liable to be mistaken for it, except with the con- 
 sent in writing of such corporation. The supreme ji;dicial court and 
 the superior court shall have jurisdiction in eqtxity to enforce the 
 provisions of this act. Approved April 20, 1905. 
 
 The following sections of the Corporation Law of the Common- 
 wealth seem to be proper to be here inserted : 
 
 Section 15. The agreement of association .shall state tliat the sub- 
 28
 
 434 FRATERNAL SOCIETY LAW 
 
 scribers thereto associate themselves with the intention of forming 
 a coi'poration. the corporate name assumed, the purpose for which 
 it is formed, the cit.y or town, which shall be in this commonwealth, 
 in which it is established or located, the amount of its capital stock 
 and the par value and number of its shares. 
 
 Section 16. Any name may, subject to the provisions of section 
 eight of chapter one hundred and nine, be assumed by a corporation. 
 If organized for the i^urposes mentioned in sections seven or eight, 
 or imder the i^rovisions of chapter one hundred and fourteen or 
 section thirty of chapter one hundred and eighteen, or if subject to 
 any of the provisions of chapter one hundred and sixteen, the words 
 "co-operative" or "fishing" or "co-operative bank" or "insurance," 
 or "mutual insurance" if organized upon the mutual principle, or 
 "trust company," respectively, shall form part of the name. 
 
 Section 17. The first meeting shall be called by a notice signed 
 by one or more of the subscribers to such agreement, stating the 
 time, place and purpose of the meeting, a copy of which notice 
 shall, seven da.ys at least before the day appointed for the meeting, 
 be given to each subscriber, or left at his usual place of busiues.s or 
 residence, or deposited in the post ofSce, postpaid, and addressed to 
 him at his usual place of business or residence. Whoever gives such 
 notice shall make affidavit of his doings, which, with a copy of the 
 notice, shall be recorded in the records of the corporation. 
 
 Section 18. The subscribers to the agreement of association shall 
 hold the franchise until the organization has been completed; and, 
 unless it is otherwise pi-ovided in such agreement, each subscriber 
 who elects to take such shares at the first meeting may take such 
 proportion of the shares of the capital stock as the number of sub- 
 scribers to the agreement bears to the whole number of shares, or 
 any part of such proportion, upon paying tlie assessments thereoD 
 as called for by the corporation. All shares not so taken shall be 
 disposed of as the corjioration determines. 
 
 Section 19. At such first meeting, inchiding any necessary or 
 reasonable adjournment, an organization shall be effected by the 
 choice by ballot of a temporary cleric, wlio shall be sworn, and by 
 the adoption of by-laws, and the election, in the manner provided 
 in section twentv-three, of directors, treasurer, clerk and such other
 
 THE STATE OF MASSACHUSETTS 435 
 
 ofiScers as the by-laws may pi'ovide ; but at such first meeting no 
 person shall be eligible as a director who has not subscribed the 
 agreement of association. The temporary clerk shall make and at- 
 test a record of the proceedings until the clerk has been chosen and 
 sworn, including a record of such choice and qualification. 
 
 Section 20. The president, treasurer and a majority of the direc- 
 tors, shall forthwith make, sign and swear to a certificate setting 
 forth a true copy of the agreement of association with the names 
 of the subscribers thereto, the date of the first meeting and the 
 successive adjournments thereof, if any, and shall submit such cer- 
 tificate and also the records of the corporation to the commissioner 
 of corporations, who shall examine the same, and who may require 
 such other evidence as he may judge necessary. If it appears that 
 the requirements of the preceding sections preliminary to the estab- 
 lishment of the corporation have been complied with, the commis- 
 sioner shall so certify and approve the certificate by his indorse- 
 ment thereon. Such certificate shall thereupon be filed by said 
 officers in the office of the secretary of the commonwealth, who, upon 
 payment of the fee hereinafter provided, shall cause the same with 
 the indorsement thereon to be recorded, and shall thereupon issue 
 a certificate in the following form: 
 
 COMMONWEALTH OP MASSACHUSETTS. 
 
 Be it known that whereas (the name of the subscribers to the 
 agreement of association) have associated themselves with the in- 
 tention of forming a corporation under the name of (the name of 
 the corporation), for the purpose (the purpose declared in the agree- 
 ment of association), with a capital of (the amount of capital fixed 
 in the agreement of association), and have complied with the pro- 
 visions of the statutes of this commonwealth in such case made and 
 provided, as appears from the certificate of the president, treasurer 
 and directors of said corporation, duly approved by the commis- 
 sioner of corporations and recorded in this office : now, therefore, I 
 (the name of the secretary), secretary of the commonwealth of 
 Massachusetts, do hereby certify that said (the names of the sub- 
 scribers to the agreement of association), their associates and suc- 
 cessors, are legally organized and established as, and are hereby
 
 436 FRATERNAL SOCIETY LAW 
 
 made, an existing corporation under the name of (name of the cor- 
 poration), with the powers, rights and privileges, and subject to 
 the limitations, duties and restrictions, which by law appertain 
 thereto. 
 
 Witness mj^ official .signature hereunto subscribed, and the seal of 
 the commonwealth of Massachusetts hereunto affixed, this 
 day of in the year (the date of execution of the 
 
 certificate). 
 
 The secretary shall sign the same and cause the seal of the com- 
 monwealth to be thereto affixed, and such certificate shall have the 
 force and eft'ect of a special charter and shall be conclusive evidence 
 of the existence of such corporation. He shall also cause a record 
 of such certificate to be made, and a certified copy of such record 
 may be given in evidence with like efl'ect as the original certificate. 
 
 Section 8. A corporation which is organized under the general 
 laws may assume any name which, in the judgment of the commis- 
 sioner, indicates that it is a corporation ; but it shall not assume 
 the name of another corporation estalilished under the laws of this 
 commonwealth, or of a corporation, firm, association or person car- 
 rying on business in this commonwealth, at the time of such organ- 
 ization or within -three years prior thereto, or a,ssume a name so 
 similar thereto as to be liable to be mistaken for it, except with 
 the consent in writing of said existing corporation, firm or asso- 
 ciation or of such person previously filed with the commissioner of 
 corporations. The supreme judicial court or the superior court shall 
 have jurisdiction in equitJ^ upon the application of any person inter- 
 ested or affected, to enjoin such corporation from doing business 
 under a name assumed in violation of the provisions of this section, 
 although its certificate of organization may have been approved and 
 a certificate of incorporjitioii may liavi' been issued to it. 
 
 Section 9. "EJpon the application of any corporation, authorized 
 by a vote, of two-thirds of the .stockholders present aiid voting at 
 a meeting called for the purpose, the commissioner of corporations 
 may, after public notice of sucli application, authorize such corpora- 
 tion to change its name. If it has no capital stock, the ajjplieation 
 maj' be authorized by a two-thirds vote of the jiersons legally quali- 
 fied to vote in meetings of the corporation present and voting on
 
 THE STATE OF MASSACHUSETTS 437 
 
 the (juestion of the change of name. The approval of tlic insurance 
 commissioner shall be required fpr applications l)y corp(jrations 
 which are subject to the provisions of chaj)ters one hundred and 
 eighteen, one hundred and iiin('teen and one hundred and twenty. 
 
 Section 10. A certified copy of such authorization and a certifi- 
 cate of the vote of the corporation, signed and sworn to by the 
 president, treasurer and a majority of the directors, or if it lias no 
 such officers, b.y its presiding and financial officers and a majority 
 of its other officers having the powers of directors, shall be filed 
 in the office of the secretary of the commonwealth. The commissioner 
 shall require public notice to be given of the change so authorized; 
 and upon receipt of proof thereof the secretary of the common- 
 wealth may grant a certificate of the name which the corporation 
 shall bear, which, subject to the provisions of section eight, shall 
 thereafter be its legal name. 
 
 Section 11. A corporation shall have the same rights, powers 
 and ]irivileges and be subject to the same duties, obligations and 
 lial)ilities under its new name as before its name was changed, and 
 may sue and be sued by its new name; but any action brought 
 against it by its former name shall not be defeated on that account, 
 and, on motion of either party, the new name may be substituted 
 therefor. 
 
 Section 95. The compensation of receivers of insolvent insurance 
 companies shall be fixed by the supreme judicial court. All accounts 
 rendered to the court by such receivers shall be referred to the in- 
 surance commissioner for his examination and report thereon. 
 
 Such receivers, at the expiration of one year after final settlement 
 ordered by the court, shall report to the coui-t the names and resi- 
 dences, if known, of the persons entitled to money or dividends from 
 the estate of such companies remaining in their hands uncalled for, 
 with tlie amiinnt due to eacli. The court shall thereupon order a 
 notice to be given by the receivers and, upon the expiration of one 
 year after the time of giving such notice, the receivers shall in like 
 manner report the amounts still uncalled for. Unless cause shall 
 appear for decreeing otherwise, such amounts shall then be ordered 
 to be paid into the treasury of the commonwealth, and schedules 
 signed by the receivers .shall at the same time be deposited with
 
 438 FRATERNAL SOCIETY LAW 
 
 the treasurer and receiver general and auditor, setting forth the de- 
 cree of the court and the names and residences, so far as known, of 
 the persons or parties entitled thereto alphabetically arranged, and 
 the amount due to each. The auditor shall forthwith cause notice of 
 such deposit to be mailed to such persons, and, upon certification by 
 him that a claimant is entitled to any part of said deposit, it shall 
 be paid in the same manner as other claims against the common- 
 wealth. Upon the payment into the treasury of the commonwealth 
 of such unclaimed money or dividends by the receiver, and the al- 
 lowance by the court of his final account, or at the expiration of one 
 year after the final settlement ordered by tlie court if lie then has in 
 his hands no unclaimed money or dividends, he shall deposit with 
 the insurance commissioner all books and papers of such company, 
 including those relative to his receivership, whicli shall be pre- 
 served by the commissioner. 
 
 Section 6. The corporation may prescribe by its by-laws the man- 
 ner in which, and the officers and agents by whom, the purposes of 
 its corporation may l)e accomplished, and, instead of the directors 
 and other officers to be chosen at the first meeting, it may have a 
 board of other officers with the powers of directoi-s, and presiding, 
 financial and i-ecording officers with the powers of president, treas- 
 urer and clerk: and its certificate of organization nuiy be made, 
 signed and sworn to b.y its presiding, financial and recording officers 
 and a majority of its other officers having the powers of directors; 
 and the certificate issued by the secretary under the provisions of 
 section twenty of chapter one hundred and ten shall be modified 
 to correspond with the facts in each case. 
 
 Section 4. Every foreign corporation, except foreign insurance 
 corporations, which has a usual place of bu.siness in this common- 
 wealth, or whicli is engaged in this commonwealth, permanently or 
 temporarily, and with or without a usual place of business therein, 
 in the construction, erection, alteration or repair of a building, 
 bridge, railro;id, railway or structure of any kind, shall, before 
 doing business in this commonwealth, in writing appoint the com- 
 missioner of corporations and his successor in office to be its true 
 and lawful attorney upim wliom all lawful processes in any action 
 or iiroceeding against il may l)e served, and in sucli writing shall
 
 THE STATE OF MABBACHJJ SETTS 4;^,9 
 
 agree that any lawful process against it which is served on said 
 attorney shall be of the same legal force and validity as if served 
 on the corporation, and that the authority shall continue in force so 
 long as any liability remains outstanding against the corporation in 
 this commonwealth. Every foreign insurance corporation shall in 
 like manner and with like effect appoint the insurance commissioner 
 or his successor in office to be its attorney. The power of attorney 
 and a copy of the vote authorizing its execution, dulj' certified and 
 authenticated, shall be filed in the office of the commissioner who has 
 been appointed, and copies certified by him shall be sufficient evi- 
 dence thereof. Service of such process shall be made by leaving a 
 copy of the process with a fee of two dollars in the hands or in the 
 office of the commissioner, and such service shall be sufficient service 
 upon the principal. 
 
 After-enacted Laws — Limitations Regarding Bringing Suit. 
 
 By-laws adopted subsequent to the issuance of certificate for the 
 purpose of limiting the time for bringing action on certificates was 
 held not to affect certificates that had therebefore been issued. 
 
 Attorney General vs. Supreme Council A. L. of H., Suisreme Court 
 of Mass., June, 1907, 81 N. E. 966. 
 
 Compromises — Accord and Satisfaction. 
 
 Payment of a less sum in discharge of a greater is not at common 
 law an accord and satisfaction, and this rule applies to settlements 
 under benefit certificates. 
 
 Attorney General vs. Supreme Council A. L. of H., Supreme Court 
 of Mass., June. 1907, 81 N. E. 966. 
 
 Beneficiaries — ' ' Family. ' ' 
 
 The statute under which the society was incorporated provided 
 that beneficiaries should belong to the family of the members. A 
 certificate was issued payable to the member's children, who sub- 
 sequently married and established families of their own. Held that
 
 440 FRATERNAL SOCIETY LAW 
 
 in a contest between the widow of the deceased brother and such 
 children, the widow was entitled to take the benefit, the court say- 
 ing: 
 
 "In Tjder vs. Odd Fellows, etc., Ass'n, 145 Mass. 134, 13 N. E. 
 360, it was said of the designation of a beneficiary that to make it 
 available after his death, there must then be a relation to the de- 
 ceased such as is contemplated by the agreement of the association 
 and the bj'-laws relating to payment, and it was held that the wife 
 who was properly designated lost her rights by a divorce obtained 
 for her husband's fault. The same doctrine was' held under a simi- 
 lar statute of Connecticut, in Larkin vs. Knights of Columbus, 
 188 jMass. 32m, 73 N. E. 850, and in cases cited in the opinion. We 
 think that, under the statute and by-laws before us, the fact that 
 the claimants ceased to be members of their father's family ren- 
 dered the designation of no effect, and that the condition was to be 
 treated as a failure to designate, which gives the widow the right 
 to receive the money under the by-law. 
 
 Spear vs. Boston Relief Assn., Supreme Court of Mass., May, 1907, 
 81 N. E. 196. 
 
 Fraternal Societies Exempt from Insurance Statutes. 
 
 A fraternal society is held not to be subject to the provisions of 
 the laws of the State applicable to regular life insurance companies 
 requiring that the application should be annexed to the policy in 
 order to enable the insurer to treat it as a part of the contract and 
 prove same as a defense to an action thereon. 
 
 Attorney General vs. Colonial Life Association, Supreme Court of 
 Mass., March, 1907. 80 N. E. 455. " 
 
 Contract — Composition of. 
 
 Where a certificate provided that it was issued on the statements 
 of the applii-ant niaile in his application and those made by him to 
 the medical e.xamiuer, all of which were filed in the office of the 
 society, sucli applieatiou and medical examination so far as material
 
 THE STATE OF MASSACHUSETTS 441 
 
 were held to be incorporated in the certificate and to constitute a 
 part of the contract to the same extent as though they had been 
 formally repeated in the certificate. 
 
 Attorney General vs. Colonial Life Association, Supreme Court of 
 Mass., March, 1907, 80 N. E. 455. 
 
 Suicide, Risk not Assumed. 
 
 A member suicided as a result of acute melancholia. Ills certifi- 
 cate was issued upon an application which contained agreeuent 
 as follows: "I also consent and agree that if a certificate or policy 
 is granted on this application, the same shall not cover death by 
 suicide, whether sane or insane." There was also a by-law in force 
 in the society providing that there should be no liability in the 
 event that the member suicided. It was held that the association 
 hud not assumed the risk of suicide. 
 
 Attorney General vs. Colonial Life Association, Supreme Court of 
 Mass., March, 1907, 80 N. E. 455. 
 
 After-enacted Laws — Emergency Fund. 
 
 After a society had amended its by-laws readjusting and increas- 
 ing the rates of contribution to be made by members, a bill in equity 
 was filed by certain members to prevent the carrying into effect of 
 such by-laws. The amended by-laws provided for the creation and 
 maintenance of an emergency fund. As to the right of the society 
 to establish the emergency fund, the court said : 
 
 "Plainly the statute contemplates that such corporations shall 
 have power to establish bj' their by-laws a system of giving death 
 benefits which shall be sound and equitable and founded upon prin- 
 ciple which can be reasonably expected to furnish i)ro])er security 
 for the i^erformanee of their contracts with member. The power 
 to make proper changes in these particulars bj' amendments of the 
 by-laws from time to time is expressly given and there is no ground 
 for the contention that it is a violation of the statute or of the 
 defendant's charter rights to provide for such assessments as will 
 be likely to procure the payments of the sums named in the certifi-
 
 4.42 FRATERNAL SOCIETY LAW 
 
 cates. The statute expressly authorizes not only a death fund 
 amounting to three full assessments from the members, but also the 
 accumulation of a reserve fund amounting to five per cent upon 
 the face value of all outstanding certificates. 
 
 Reynolds vs. Supreme Council Royal Arcanum, March, 1906, 192 
 Mass. 150. 
 
 Classes— Right of Society to Separate Membership into Classes. 
 
 As to the right of a society to classify its members and to separate 
 them into different classes, the following language was employed by 
 the court having this question under consideration: 
 
 "The objection that the amendments are illegal by reason of the 
 division of the members into classes cannot prevail. There is no 
 objection to the classification of members according to age, and it 
 would be unjust to di.sregard age in determining the rates that dif- 
 ferent persons shall pay for death benefits in an association of this 
 kind." 
 
 Reynolds vs. Supreme Council Royal Arcanum. March, 1906, 192 
 Mass. 150. 
 
 Right to Raise and Readjust Rates. 
 
 With respect to the right of a society to readjust the rates of 
 members and increase same, bringing the members to attained age, 
 the following is the true rule : 
 
 "In regard to a similar provision under which a mutual fire in- 
 surance company changed its by-laws so as to increase assessments 
 upon certain policy holders, the Supreme Court of the United States 
 uses this language, — 'The liability of the members of this institu- 
 tion is of a two-fold nature. It results both from the obligation to 
 conform to the laws of their own making as members of the body 
 politic and from a peculiar assumption or declaration which each 
 individual signs on becoming a member. The latter is remarkably 
 comprehensive, — We will abide by, observe and adhere ^to the con- 
 stitiitioii, rules and regvilations which are already established or may 
 hereafter be established by the majority insured, or which are or
 
 THE STATE OF MASSACHUSETTS 443 
 
 may hereafter be established by the president and directors of the 
 society. As to what is contended to be a material alteration in their 
 society we consider it merely as a new arrangement or (listrihvitii)n 
 of their funds, and whether just or unjust, reasonable or unreason- 
 able, benevolent or otherwise to all concerned was certainly a mere 
 matter of speculation proper for the consideration of the society 
 and which no individual is at liberty to complain of as he is bound 
 to consider it as his own individual act. Every member, in fact, 
 stands in the peculiar situation of being party of l)oth sides, insurer 
 and insured. Certainly the general submission which they have 
 ■signed will cover their liability to submit to this alteration." 
 
 Reynolds vs. Supreme Conncil Royal Arcanum. March. 1906, 192 
 Mass. 1.50. 
 
 Right to Amend the Laws and Duty of the Society to Perpetuate 
 Itself. 
 
 On the question of the power to amend the by-laws and the duty 
 of the society to do so in order to perpetuate itself, the following 
 language is apropos: 
 
 "On principle and on the weight of authority, we are of opinion 
 that there is nothing in this contract that prevents a corporation 
 from amending its by-laws in a reasonable Avay to accomplish the 
 purposes for which it was organized, even though the change in- 
 creases the payments to be made by certificate holders, which 
 changes necessarily involve some hardship to certain individual 
 members, but the corporation under the law should do that which 
 will bring the greatest good to the gi^eatest number. The members 
 who complain of its action are those who have had the benefit of 
 insurance for many years at very much less than the cost of their 
 insurance to the corporation. The.v have had the good fortune to 
 survive and therefore their contracts have bi-ought them no money, 
 but all the time they have had a stipulated security against the risk 
 of death. If now they are called upon to pa,v for future insurance 
 no more than its cost to the corporation the.v ought not to think it 
 unjust," 
 
 Reynolds vs. Supreme Council Royal Arcanum, March, 190G, 192 
 Mass. 150.
 
 444: FRATERNAL SOCIETY LAW 
 
 Warranty and Misrepresentation. 
 
 •1 
 A misrepresentation which is not a warranty, unless made with 
 
 actual intent to deceive, or unless the matter misrepresented in- 
 creases the risk, was held not to avoid the certificate. 
 
 Kidder vs. Supreme Commandery United Order of the Golden Cross, 
 June, 1906, 192 Mass. 326. 
 
 Forfeiture — Warranty. 
 
 For the facts in a case where misrepresentation and breach of war- 
 ranty was charged, and where forfeiture of a certificate was also 
 claimed on account of the failure of the member to make certain 
 payments, see 
 
 Kidder vs. Supreme Commandery United Order of the Golden Cross, 
 June, 1906, 192 Mass. 326. 
 
 Beneficiary — Dependents. 
 
 On the question of dependency that must exist in order to entitle 
 a beneficiary named as dependent to take the benefit, the court said : 
 
 ' ' Trivial or casual or perhaps wholly charitable assistance would 
 not create a relationship of dependency within the meaning of the 
 statute and by-laws. Something more is itndoubtedly reqiured. The 
 beneficiary must be dependent upon the member in a material de- 
 gree for support or maintenance or assistance, and the obligation on 
 the part of the member to furnish it, must it would seem rest upon 
 some moral or legal or equitable grounds and not upon a purely 
 V(ilmita)-y or charitable impulse and disposition of the member. 
 
 Wilber vs. Supreme Lodge New England Order of Protection, June, 
 1906, 192 Mass. 477. 
 
 Beneficiary — Suit by Executor of Member. 
 
 Where an executor under the will of the deceased member brought 
 suit to recover on a certificate that the member held in the society, 
 and which was payable to a person other than the executor, it was
 
 THE STATE OF MASSACHUSETTS 445 
 
 held that the burden rested on the executor to maintain his action 
 by showing that he and not the person named in the certificate was 
 entitled to receive the amount of sam(\ and that this was true not- 
 withstanding the fact that the society had merely filed a general 
 denial to the claim made by the executor. 
 
 Klttredge vs. Boston Firemen's Mutual Relief Assn., March, 1906, 
 191 Mass. 23. 
 
 Service of Summons on Foreign Society. 
 
 The provisions of a foreign statute, providing for the service of 
 summons upon foreign societies doing business in such State to be 
 made upon the auditor of state so long as there were any liabilities 
 existing on the part of the society to citizens of that State, was 
 held to be good and binding, and such rule would be recognized and 
 enforced by the courts of the State where the society was incor- 
 porated. 
 
 Bruning vs. Brotherhood Accident Co., March, 1906, 191 Mass. 115. 
 
 Beneficiary — Change of. 
 
 A change of beneficiary will not be permitted to be made except 
 same be in compliance with the provisions of the laws of the society. 
 
 Abbott vs. Supreme Colony United Order of Pilgrim Fathers. January, 
 1906, 190 Mass. 67. 
 
 Agency — Local Officers Cannot Waive Laws. 
 
 Subordinate lodges and the officers thereof are without power to 
 waive the requirements of the constitution and laws of the society 
 in respect to making changes of beneficiaries. 
 
 Abbott vs. Supreme Colony United Order of Pilgrim Fathers,^ January, 
 1906, 190 Mass. 67. 
 
 Accident Insurance. 
 
 For the facts in a case arising under an accident insurance con- 
 tract issued by a fraternal society see the following:
 
 446 FRATERNAL SOCIETY LAW 
 
 Noyes vs. Commercial Travelers' Eastern Accident Assn., January, 
 
 1906, 190 Mass. 171; and also 
 Morse vs. Fraternal Accident Assn.. February. 1906, 190 Mass. 417. 
 
 Assessment — Duty to Levy Same. 
 
 Where it is the dutj' of a society to levy assessments upon mem- 
 bers for a sufficient amount to enable it to pay its losses and it fails 
 -to levy such assessments, beneficiaries entitled to collect for losses 
 sustained may have an action for breach of warranty against the 
 society. 
 
 Garcelon vs. Commercial Travelers, June. 1903, 184 Mass. 8. 
 
 Forfeiture — No Recovery of Payments Made. 
 
 Upon the death of a member who had been .suspended for failure 
 to pay dues and assessments who had not been reinstated at the 
 time of his death, his administrator was not entitled to recover 
 from the society the sums that had been paid by the member prior 
 to his suspension. 
 
 McLaughlin vs. Supreme Council Catholic Knights of America, Octo- 
 ber, 1903, 184 Mass. 298. 
 
 Forfeiture — Requirements for Reinstatement. 
 
 AVhere the laws of a society prescribed that in order for a sus- 
 pended member to be reinstated he should be examined and his 
 examination approved by Uic nu'dieal e.xaniimn- in chief, he had 
 not complied with these laws b.v being examined and receiving the 
 approval of the local examiner who turned the medical examination 
 certificate over to the member and he in turn turned it over to the 
 subordinate lodge, which certificate never reached the Supreme Med- 
 ical Examiner until after the member's deatli. and was not acted 
 upon by him. 
 
 McLaughlin vs. Supreme Council Catholic Knights of .'\merica, Octo- 
 ber. 1903. 184 Mass. 298.
 
 THE STATE OF MASiiACHUSETTS 447 
 
 After-enacted Laws — Breach of Contract. 
 
 A meiiibcr held a $."). 0(1(1 (•(■rtiHcjitc upon which he lia<l hceii mak- 
 ing payiiiciits. A subsequent by-law was passed providing that the 
 societ.v would not pay more than $"J,00() on any certificate. The 
 sociely then assessetl the nieinher n|Miii a .+:2. (111(1 cerl ideate, instead 
 of a $5,000 certificate. The member, complaining and protesting, 
 paid upon the $2,000 certificate and tendered the amount which he 
 had been paying upon the $5,000 certificate, which was refused. 
 He then claimed that the contract had been broken and brought suit, 
 asking for damages in the amount of the certificate. The court said : 
 
 "We are of opinion that the contract has not yet been brolien. 
 If is a contract to pay at his death $5,000 to his beneficiary. If the 
 defendant does not choose to assess him upon a $5,000 certificate, 
 he has no ground for complaining. He stands ready to be assessed, 
 and can do no more. 
 
 Porter vs. Supreme Covmcil American Legion of Honor, May, 1903, 
 183 Mass. 326. 
 
 After-enacted Laws Cannot Cut Down Certificate Arbitrarily. 
 
 A society attempted to cut its certificates outstanding from $5,000 
 to $2,000 by tlu^ passage of a by-law. The members of the society 
 had promised in their application to make full compliance with all 
 laws then in force and those thereafter adopted. The Court held 
 that the society could not reduce the amount of the benefits promised 
 to be paid, and that the provision in the contract made by the 
 member providing for full compliance with all the laws in force 
 then existing or thereafter adopted referred to laws that might re- 
 quire the payment of assessments, etc., and that, subject to these 
 conditions, the promise to ]iay was absolute. 
 
 Newhall vs. Supreme Council American Legion of Honor, March, 
 1902, 181 Mass. 111. 
 
 After-enacted Laws — New Classes. 
 
 With respect to the right of a society to amend its by-laws and
 
 448 FRATERNAL SOCIETY LAW 
 
 increase the rates of contribution of members and classify the 
 members into different plans, etc., the following language was em- 
 ployed by the Court having these questions under consideration : 
 
 "This change in the by-laws is not void as opposed to the power 
 to make changes on the ground that it is calculated to defeat the 
 purpose of the organization and destroy the rights of the members, 
 it may be conceded that some amendments might be so foreign to 
 the general scheme and purpose of the organization and so contrary 
 to its fundamental law and the contracts made under it as not to 
 be within the power of amendment referred to, but this is not true 
 of an amendment which merely changes the forms and methods 
 while substantially all the general plan and purpose of the organiza- 
 tion is preserved. We are of opinion therefoi'e that the classified 
 assessments referred to in the bill are not shown to be unauthorized 
 and illegal." 
 
 Messer vs. Grand Lodge A. 0. U. W., January, 1902, 180 Mass. 321. 
 
 Beneficiaries — ' ' Children. ' ' 
 
 In construing the statute designation the class of persons that may 
 be named as beneficiary and the word children as used therein, 
 the Court held that legitimate children alone were meant by the 
 term children, and that an illegitimate child was not entitled to be 
 named as the beneficiary. 
 
 Lavigne vs. Ligue des Patriotes, February, 1901. ITS Mass. 25. 
 
 Conditions Precedent to Liability. 
 
 A provision in the laws of a society requiring sworn certificate 
 from the physician l)efore benefits can be received by a member 
 was held to he a condition precedent to the society's liability. 
 
 Audette vs. L'Union St. Joseph, March, 1901, 178 Mass. 113. 
 
 Beneficiaries, Failure of. 
 
 Where a membei' died without leaving any p(>rsoiis authoriz(>d by
 
 THE STATE OF MICHIGAN 449 
 
 law to be designated as l)eiiefieiary, and the society waived the 
 claim of reversion of the fund, the executor of the deceased mem- 
 ber's estate was held to be entitled to be admitted as a party to a 
 suit on the certificate in order to enable him to raise the 'question 
 whether there was a resulting trust in favor of the estate or not. 
 
 Hill vs. Supreme Council Ameriran Legion of Honor, March, 1901, 
 178 Mass. 145. 
 
 Beneficiary — Right of Widow versus Executor. 
 
 A society was organized to assist the widows and orphans of de- 
 ceased members and to pay benefits to such person or persons be- 
 longing to these classes as might hold an assignment of the certifi- 
 cate of membership at the time of the death of the member. The 
 member died intestate leaving a widow but no child, and never 
 having designated a beneficiary in writing nor having made any 
 assignment of his certificate. It was held in a contest between the 
 widow and the administrator of the member's estate that the widow 
 was entitled to take the amount of the certificate. 
 
 Hadley vs. Odd Fellows Beneficial Assn., January, 1899, 173 Mass. 
 583. 
 
 After-enacted Laws — Cutting Down Benefits. 
 
 At the time when a member joined a society there was a by-law 
 providing for $5.00 a week sick benefit to be paid during the time 
 of disability not exceeding thirteen weeks in each year. Subse- 
 quently this by-law was amended so as to provide when a member 
 had received 39 weeks of sick benefits, he should thereafter receive 
 only one dollar per week instead of five dollars per week for thirteen 
 weeks of each .year during a term of five years. It was held that 
 this amendment not onlj' applied to all members who were in the 
 society prior to the passage of same, but also to those who wei'e 
 under disability at the time of the amendment going into effect. 
 
 Pain vs. Societe St. Jean Baptists. January, 1899, 172 Mass. 319. 
 29
 
 450 FRATERNAL SOCIETY LAW 
 
 Beneficiaries, Assignment to Creditor. 
 
 Prior to the passage of the present fraternal beneficiary law of 
 Massachusetts in a case before the Supreme Court of that State it 
 was held that a society incorporated in another State admitted to do 
 business in that State might issue a certificate to a member payable 
 to himself as beneficiary, and he might assign same for a valid 
 debt larger than the amount of the benefit payable tliereunder and 
 that such assignment would confer upon the assignee an equitable 
 right upon the fund after the member's death, which right would 
 prevail over the legal title of the administrator of the member's 
 estate. i 
 
 Brlerly vs. Equitable Aid Union. January, 1898, 170 Mass. 218.
 
 THE STATE OF MICHIGAN 45I 
 
 THE 
 
 STATE OF MICHIGAN. 
 
 CHAPTEE 23. 
 
 (The Section luinibers enclosed in parenthesis con-espond to those 
 in the 1907 etlition of tlie Insurance Laws of ]Michigan. while the 
 numbers preceded by the sign § correspond to those in the Com- 
 piled Laws of 1897.) 
 
 An Act to define what shall constitute Fraternal Beneficiary So- 
 cieties, Orders, or Associations; to provide for their incorpora- 
 tion and the regulation of their business, and for the punishment 
 for violation of the provisions of the act of their incorporation, 
 and to repeal all existing acts inconsistent therewith. 
 
 The People of the State of Michigan enact: 
 
 (144) § 7740. Section 1. That a fraternal beneficiary association 
 is hereby declared to be a corporation, society or voluntary asso- 
 ciation having a lodge system with ritualistic fonii of woriv and a 
 representative form of government, formed t)r organized and car- 
 ried on for the sole benefit of its members and their beneficiaries 
 and not for profit. Such association making provision for the pay- 
 ment of death benefits, may, in addition thereto, provide for the pay- 
 ment of benefits in the case of accident, sicl\ness, disability, or old 
 age of its members. The fund from which the paj^ment of such benefits 
 shall be made, and the fund from which the expenses of such asso- 
 ciation shall lie defrayed, shall be derived from assessments or 
 dues collected from its niemliers. Payment of death benefits shall 
 be made only to the wife, husband, children and dependent chil-
 
 ^52 FRATERNAL SOCIETY LAW 
 
 dren, mother, father, sister, brother, or blood relatives to the fourth 
 decree of the member : Provided, That where an applicant or mem- 
 ber has no relative as above provided, to whom he may make his 
 certificate payable, in sneh case he may designate any other person 
 or make his estate his beneficiary. Such association shall be gov- 
 erned by this act and shall be exempt from the provisions of the 
 insurance laws of this State, excepting as provided by this act: 
 Provided, further. That when the laws of any such association al- 
 ready provide that an aiifianeed wife, or any other person who is 
 dependent upon the member for maintenance, food, clothing, lodging 
 or education, may be made the beneficiary, payment of death bene- 
 fits may be made to such beneficiaries, but no certificate of mem- 
 bership shall be made payable to, nor any death benefit paid to 
 an affianced wife, or any beneficiary by reason of dependency as 
 hereinbefore provided, unless satisfactory proof of such affianced 
 relation or dependency shall have been filed with, and accepted 
 by, the executive officers of such association : And provided fur- 
 ther, That no death claim shall be a valid claim against any such 
 association, where the deceased member came to his or her death 
 by unlawful means, at the hands or through the procurement or 
 connivance of the beneficiary named therein, and as to such bene- 
 ficiary, the benefit certificates issued to such deceased member shall 
 become null and void : Provided, That the provisions of this section 
 requiring a ritualistic form of work shall not apply to the New 
 Era Association of Grand Rapids, heretofore incorporated and doing 
 business under the provisions of this act. 
 Am. 1901, Act 226. 
 
 (145) § 7741, Section 2. Any number of persons not less than 
 nine, residents of the State of Michigan, and citizens of the United 
 States, hereafter desiring to form a fraternal beneficiary society, 
 order or association for the purpose set forth in section one of tliis 
 act. may associate themselves together and effect such organiza- 
 tion as hereinafter prescribed and not otherwise. 
 
 (146) § 7742. Section 3. All such associations coming within 
 the description as set forth in section one of this act. organized 
 under the laws of this or any otlu'r State, jiroviuce or territory, 
 and now doing l>nsiiu'ss in this Stale, and :ill associations of anv
 
 • THE UTATE OF MICHIGAN 453 
 
 other State which have been authorized by the commissioner of 
 iiisuriiiicc to do business in this State ;nid have been iloin-;- business 
 herein for the period of five years and upwards, may eontiniic tlicir 
 business: Provided, that they hereafter comply with the provisions 
 of this act regulating amnial reports and the designation of the 
 conunissioner of insurance as the person upon whom process may 
 be served as hereafter pmviiled: And provided further, That suits 
 may be commenced in the circuit court in any county where the 
 plaintiff resides, by declaration or writ, and service shall be made 
 in such eases only upon the conimissionei* of insurance in like man- 
 ner and with like effect as is hereinafter ])ri)vided for the service 
 of j)rocess upon societies, orders or associations organized under 
 the laws of any other State, province or territory and doing busi- 
 ness in this State, and not having its principal office within this 
 State, and for the purpose of service of process as herein provided 
 such society, order or association shall appoint in writing the com- 
 missioner of insurance, or his successor in office, to be its true and 
 lawful attorney: And provided further, That the trial judge may, 
 when there is a recovery by the plaintiff in any suit commenced in 
 the circuit court, award costs to plaintiff, notwithstanding the fact 
 that the amount recovered is less than one hundred dollars. 
 
 Am. 1903, Act 44 ; 1907, Act 175. 
 
 (147) § 7743. Section 4. Any such association coming within 
 the description as set forth in section one of this act, organized 
 under the laws of any other State, province or territory, and not 
 noM- doing business in this State, shall be aduiitted to do business 
 within this State when it shall have filed with the commissioner 
 of insurance a duly certified copy of its charter and articles of 
 association, and a copy of its constitution or laws, certified to by 
 its secretary, or corresponding officer, satisfactory proof to the eft'eet 
 that such association has paid all death claims in full for the period 
 of at least one year immediately preceding, together with an a])- 
 pointment of the commissioner of insurance of this State, as a person 
 upon whom process may be served as hereinafter provided: And 
 provided. That such association shall be shown by certificate to 
 be authorized to do business in the State, province or territory in 
 whicli it is inoor]iorated or organized in case the laws of such State,
 
 4»i 
 
 FRATERNAL SOCIETY LAW 
 
 province or territon- shall provide for such autliorizatiou ; and in 
 case the laws of such State, province or territory do not provide 
 for an}- formal authorization to do business on the part of any such 
 association, then such association shall be shown to be conducting 
 its business in accordance with the provisions of this act, for which 
 purpose the commissioner of iUjSurance of this State may, person- 
 ally, or by some person to be designated by him. examine into 
 the condition, affairs, character and business methods, accounts, 
 books and investments of such association at its home office, which 
 exainination shall be at the expense of such association. 
 
 (148) § 7744. Section 5. Every such association doing business 
 in this State shall, on or before the first day of March of each 
 year, make and file with the commissioner of insurance of this 
 State a report of its affairs and operations during the year ending 
 on the thirty-first day of December immediately preceding, to- 
 gether with a copy of its constitution and laws then in force, which 
 annual report shall be in lieu of all other reports required by any 
 other law. Upon receiving such report and copy of the laws or 
 constitution the commissioner shall examine them and if they are 
 foimd to be in conformity with the provisions of this act he shall 
 issue to such association a license or certificate of authority to con- 
 tinue its bu.siness for another year, and no such association shall 
 be authorized to do any business unless so licensed Such reports 
 shall be upon blank forms to be provided by the commissioner of 
 insurance, or may be jn-inted in pamphlet form, and shall be verified 
 under oath by the duly authorized officers of such association, and 
 shall be published, or the substance thereof, in the annual repoi-t of 
 the commissioner of insurance under a separate part entitled "Fra- 
 terual Beneficiary Associations." and shall contain answers to the 
 following questions: 
 
 1. .\uiiil)er of certificates issued during the year, or members ad- 
 mitted. 
 
 2. Amount of indemnity effected thereby. 
 
 •'5. .Vumber of lo.sses or benefit liabilities incurred. 
 
 4. Xinubei- (if losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Tnlal MiiKiuiil jjaid members or beneficiaries.
 
 THE STATE OF MICHIGAN 455 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 8. Number and kind of claims compromised or resisted, and 
 brief statement of reasons. 
 
 9. Does association charge annual or other periodical dues or 
 admission fees? 
 
 10. How much on each one thousand dollars annually or per 
 capita, as the ease may be. 
 
 11. Total amount received, from what source, and the disposition 
 thereof. 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does association guarantee, in its certificate, fixed amounts 
 to be paid regardless of amount realized from assessments, dues, 
 admission fees and donations? 
 
 14. If so, state amount guaranteed, and the security of such 
 guaranty. 
 
 15. Has the association a reserve fund? 
 
 16. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested. 
 
 17. Has the association more than one class? 
 
 18. If so, how many and the amount of indemnity in each. 
 
 19. Number of members in each class. 
 
 20. If a voluntary association, so state, and give date of or- 
 ganization. 
 
 21. If organized under the laws of this State, under what law 
 and at what time, giving chapter and year and the date of passage 
 of the act. 
 
 22. If organized under the laws of any other State, province 
 or territory, state such fact and the date of organization, giving 
 chapter and year and date of passage of the act. 
 
 23. Number of benefit certificates lapsed during the year. 
 
 24. Number in force at beginning and end of year; if more 
 than one class, number in each class. 
 
 25. Names and address of its president, secretary and treasurer, 
 or corresponding officers. 
 
 The commissioner of insurance is authorized and empowered to 
 address any additional inquiries to any such association in relation
 
 456 FRATERNAL SOCIETY LAW 
 
 to is doings or condition, or any other matter connected with its 
 transactions relative to the business contemplated by this act, and 
 such ofBcei-s of such association as the commissioner of insurance 
 may require shall properly reply in writing under oath to all such 
 inquiries. 
 
 (149) § 7745. Section 6. Each such association now doing or 
 hereafter admitted to do business in this State and not having its 
 principal office within this State, and not being organized under 
 the laws of this State shall appoint in writing the commissioner 
 of insurance or his successor in office to be its true and lawful 
 attorney upon whom all lawful process in any action or proceeding 
 against it may be served, and when so served on said attorney, 
 shall be of the same legal force and validity as if served upon the 
 association, and that the authority shall continue in force so long 
 as any liabilitj- remains outstanding in this State. Copies of such 
 certificate, certified by said commissioner of insurance, shall be 
 deemed sufficient evidence thereof, and shall be admitted in evi- 
 dence with the same force and effect as the original thereof might 
 be admitted. When legal jjrocess against any such association is 
 served upon said commissioner of insurance, he shall immediately 
 notify the association of such service by letter prepaid and directed 
 to its secretary, or corresponding officer; and shall within two days 
 after such service forward in the same manner a copy of the process 
 served on him to such officer. The plaintiff in such process so served 
 shall pay to the commissioner of insurance at the time of such 
 service a fee of three dollars, which shall be recovered by him as 
 part of the taxable costs, if he prevails in the suit. The commis- 
 sioner of insurance shall keep a record of all processes served upon 
 him, which record shall show the day and hour when such service 
 was made. 
 
 (150) § 7746. Section 7. The commissioner of insurance of 
 this State shall upon the application of any association having the 
 right to do business within this State as provided by this act, issue 
 to such association a permit in writing authorizing such association 
 to do business within this State, for M-hich certificate, and all pro- 
 ceedings in connection therewith, such association shall pay to said 
 commissioner the fee of five dollars.
 
 THE STATE OF MICH WAN 457 
 
 (151) § 7747. Section 8. Such persons as provided in section 
 two of this act shall file in the office of the commissioner of insur- 
 ance a declaration signed by each of the corporators, and duly 
 acknowledged before an officer authorized under the laws of this 
 State to take acknowledgment of deeds, and shall therein express 
 their intention to form a fraternal beneficiary society, order or asso- 
 ciation for fraternfil beneficiary purposes. Said declaration shall 
 also eont;iin the proposed name of the society, order or association, 
 which shall not be the same as, nor too closely resemble, the name 
 of any other society, order or association organized under the laws 
 of this State, or doing business in this State ; the mode and manner 
 in which the corporate powers granted by this act are to be exer- 
 cised; the place of -doing business fully and clearly defined; the 
 limit as to age of api)licant for lieueficiary membership, which shall 
 not exceed fifty-five years, and that medical examinations are re- 
 quired of applicants for life benefits; the names and official titles 
 of the officers, trustees and directors, representatives or other per- 
 sous, by whatsoever name or title designated, having and exercising 
 the general control and management of its affairs and all its funds, 
 who shall be elected after the first year by representatives chosen 
 by the subordinate lodges, councils or bodies, or grand lodges, grand 
 councils or bodies, as the laws of the society, order or association 
 may provide, and who shall be members of such society, order or 
 association. The president, secretary and treasurer or correspond- 
 ing officers of such association, shall be residents of the State of 
 Michigan and citizens of the United States. 
 
 Am. 1901, Act. 160; 1905, Act. 3. 
 
 (152) § 7748. Section 9. Upon the filing in the office of said 
 commissioner of the declaration required by the last preceding sec- 
 tion, together with the sworn statement by three of said corporators 
 that at least two hundred persons eligible under the proposed laws 
 of such society, order or association, to membership therein, have 
 in good faith made application in writing for membership, and if 
 by him found conformable to the requirements of this act, and not 
 inconsistent with the constitution and laws of the United States 
 and of this State, he shall thereupon deliver to such society, order 
 or association a certified copy of the papers so filed and recorded
 
 458 
 
 FRATERNAL SOCIETY LAW 
 
 in his office, together with a license or certificate of said commis- 
 sioner to such society, order or association, to carry on the work 
 of a fraternal beneficiary society, order or association as proposed 
 in said declaration. Upon such certified copy and license or certifi- 
 cate being filed in the office of the commissioner of insurance, and 
 when at least two hundred persons have subscribed in writing to 
 be beneficiary members therein and have paid in one full assessment 
 in cash according to its proposed laws, and the commissioner of in- 
 surance shall have certified that it has complied with the provisions 
 of this act and is authorized to transact business, the said corpora- 
 tors and those who may hereafter become associated with them, 
 or their successors shall be constituted a body politic and corporate, 
 with the powers and privileges of a fraternal beneficiary society, 
 order or association. Such society, order or association may, by a 
 vote of the governing body, hold its regular stated meetings in any 
 State or territory in the United States, or in any province of Canada 
 where subordinate lodges, councils or bodies may exist and are under 
 the jurisdiction of the supreme, grand or governing lodges; and 
 all business transacted at anj^ such meetings shall have the same 
 force and effect as if transacted in this State. 
 
 Am. 1901, Act. 160. 
 
 (153) § 7749. Section 10. Any fraternal beneficiary society, or- 
 der or association, as defined by section one of this act, transacting 
 business in this State, and incorporated under the laws of this State, 
 may reincorporate under the provisions of this act by filing with 
 said commissioner a declaration adopted by the board of trustees, 
 directors, council, committee, or other governing body of said asso- 
 ciation and signed and duly acknowledged by the president, secre- 
 tary and treasurer with the seal thereof, which shall contain the 
 name of such corporation, the mode and manner in which the corpo- 
 rate powers granted by this act are to be exercised, the name and 
 official title of the officers, trustees, representatives, or other persons, 
 by whatsoever name or title designated, who are to have and exer- 
 cise the general control and management of its affairs and all its 
 funds, and the mode and manner of their selection, and the place 
 where the principal office for the transaction of business within the 
 State is located. Upon the filins- in the office of said commissioner
 
 THE STATE OF MICHIGAN 4;;9 
 
 of the declai'atioii lierein required, together witli the sworn stiite- 
 iiietit of tlirce of said officers, that at h^ast two hundred persons are 
 bdiia tide iiii'iiihers of said socii'ty, (ir(hjr or assdcial ion. and llial hik; 
 full assessment has been i)aid in according to its laws, and if found 
 conformable to the pi'ovisions of this act; the said commissioner shall 
 record and deliver to such association or society a certilied eoiiy 
 of such declaration and such certificate, together with his license to 
 carry on the work of a fraternal beneficiary society, order or asso- 
 ciation, as proposed in said declaration ; and upon the same being 
 filed in the office of the clerk of the county wherein the principal 
 office for the transaction of its business is located, the said society, 
 order or association shall thereupon be duly incorporated under 
 the provisions of this act: Provided always. That nothing in this 
 act contained shall be construed as requiring or making it obligatory 
 upon any existing fraternal beneficiary society, order or association 
 to reincorporate under the provisions of this act. 
 
 (154) §7750. Section 11. Any subordinate body of any frater- 
 nal beneficiary society, order or association, incorporated under the 
 provisions of this act, or of any such society, order or association 
 now doing business or may hereafter be admitted to do business in 
 this State under this act may become a body corporate in the manner 
 following: At some regular meeting of such subordinate body a 
 resolution expressing the desire of such subordinate body to be 
 incorporated and directing its officers to perfect such incorpor- 
 ation, shall be submitted to a vote of the members present, 
 and if two-thirds of the members present and voting [vote] therefor, 
 the ]n-esident and secretary of such subordinate bod.y, or the officers 
 holding relative offices therein, shall prepare articles of association 
 under their hands and the seal of such subordinate body setting forth 
 first, the number of members of such subordinate body then in good 
 standing; second, the name by which said subordinate body is 
 known ; third, the date of its organization and the period for which 
 it is to be incorporated, not exceeding thirty years. 
 
 (155) § 7751. Section 1'2. A copy of such articles of associa- 
 tion shall be filed with the county clerk of the county within which 
 such subordinate body holds its stated meetings, and shall by him 
 be recorded, together with the affidavit hereafter named by such 
 clerk, in a bonk In be kp])t for tliat jiurpose.
 
 460 FRATERNAL SOCIETY LAW 
 
 (156) S 7752. Section 18. On the execution of said articles of 
 association and before the filing thereof with the county clerk, the 
 seeretarj' of such subordinate body shall annex thereto his affidavit 
 stating that he is a member in good standing in such subordinate 
 body and occupies the position of secretary, or the office correspond- 
 ing therewith therein, and that the resolution, a copy of which shall 
 be set forth at length, was regularly passed at a regular meeting 
 of said subordinate body and received the vote of two-thirds of 
 the members ])resent and voting, and that to the best of his knowl- 
 edge and belief the statement made in the articles of association are 
 true, and that such subordinate body is organized and acting under 
 the laws of its respective soeietj', order or association, giving the 
 name by which such society, order or association is incorporated. 
 
 (157) § 7753. Section 14. When the foregoing reqiiirements 
 are complied with such subordinate body shall be a body corporate 
 by the name expressed in such articles, and liy that name shall 
 be a person in law capable of siiing and being sued in the courts, 
 and taking and holding property of every kind the same as natural 
 persons, and a copy of said articles of association duly certified to 
 by the clerk of the county, in whose jiossession they are, shall be 
 pi-ima facie evidence in all courts and places of the existence, and 
 the due incorporation of such subordinate body. 
 
 (158) § 7754. Section 15. The money or other benefit, charity, 
 relief or aid to be jjaid, provided or rendered by any association 
 authorized to do business iinder this act, shall not be liable to attach- 
 nuMit l)y trustee, g;iriiishee or other process, and shall not be seized, 
 taken, appropriated or applied by any legal or equitable process, or 
 by operation of law, to pay any debt or liability of a certificate 
 holder, or of any beneficiary named in a certificate, or of any person 
 who limy have any right thereunder. And all dues, assessments 
 and oilier jiaynients and the accumulations thereof, held and pos- 
 sessed b_\- said association for the payment of death, sick or disability 
 benefits, and the reserve, emergency and other mortuary funds of 
 saiil association shall be exempt from taxation for State, county and 
 municipal purposes. 
 
 Am. 1903, Act. 53. 
 
 ('159') ? 775.">. Section 16. Any jierson, otlicer, meiulier or ex-
 
 THE STATE OF MICHIGAN 461 
 
 iiiiiiiiiiii^ pliysicijiii. wild sIimH kii(i\viii,L;iy or wiH'iilly iiiiil<(' any false 
 or rramlnlont statcniciit or representation, in or witli reference to 
 any applieation foi- nieniherslii]). or for the purpose of obtaiiiini^ any 
 money oi- lieiielil in any association ti'ansaetinu liusiness inider this 
 act, shall lie guilty of a misdemeanor, and upon conviction shall 
 lie iiunished liy a line of not less than one hundred dollars nor more 
 than live hundred dollars, or imiirisonment in the county jail for 
 not less than thirty days nor more than one year, or both, in the 
 discretion of the court; and any person who shall wilfully make a 
 false statement of any material fact or thing in a sworn statejnent 
 as to the death or disability of a cei-tificate holder in any such 
 association for the imi'pose of proenrint>- payment of a heiielit named 
 in the certificate of such holder, and any jierson who shall wilfully 
 make any false statement in any verified report or declaration under 
 oath required or authorized by this act, shall be guilty of perjui'y, 
 and shall be proceeded against and punished as provided by the 
 statutes of this State in relation to the crime of per.iury. 
 
 (160) § 7756. Section 17. An^- such association refusing or 
 neglecting to make the report as jirovided in this act, shall be ex- 
 eluded Ironi doing business within this State. Said commissioner 
 of insurance must, within sixty days after failure to make such 
 report, or in case any .such association shall exceed its powers or 
 shall conduct its liusiness fraudulently or shall fail to comply with 
 any of the provisions of this act, give notice in writing to the attorney 
 general, who shall immediately commence an action against such 
 association to en.join the same from carrying on any business. No 
 association so proceeded against shall have authority to continue 
 business until such report shall be made or overt act or violations 
 complained of shall have been corrected, nor until the costs of such 
 action be paid by it, provided the court shall find that such associa- 
 tion was in default as charged, whereujion the connnissioner of in- 
 surance shall reinstate such association, and luit until then shall 
 such association be allowed to again do business in this State. An.v 
 officer, agent or person acting for an.v association within this State 
 or for a subordinate branch thereof, while such associatiou shall 
 be so en.ioined or prohibited from doing business pui'suant to this 
 act, shall be deemed guiltv of a misdeme'inor. ami on eoii\iction
 
 462 FRATERNAL SOCIETY LAW, 
 
 thereof, shall be punished by a fiue uot less than twenty-five dollars 
 nor more than two hundred dollars, or by imprisonment in the 
 county jail not less than thirty days nor more than one year, or by 
 both such fine and imprisonment in the discretion of the court. And 
 no injunction against any such association shall be granted by any 
 court except on application by the attorney general, at the request of 
 the commissioner of insurance. 
 
 (161) § 7757. Section 18. Any pei'sou who shall act within 
 this State as an officer, agent or otherwise, for any association which 
 shall have failed, neglected or refused to comply with, or shall 
 have violated any of the provisions of this act, or shall have failed 
 or neglected to prociire from the commissioner of insurance proper 
 certificate of authority to transact business as provided -for by this 
 act, shall be subject to the j^enalty provided in the last preceding 
 section for the misdemeanor therein specified. 
 
 (162) § 7758. Section 19. Nothing in this act shall be con- 
 strued to apply to any corporation, society or association carrying 
 on the business of life, health, casualty or accident insurance for 
 profit or gain, and shall only apply to fraternal beneficiary societies, 
 orders or associations as defined by section one. 
 
 (163) § 7759. Section 20. Nothing in this act contained shall 
 be construed to afl'ect any grand or subordinate lodge or branch of 
 any such fraternal beneficiary societies, order or association, which 
 limits its certificate holders to a particular religious denomination, 
 or to the emplo.ves of a particular town or city designated, firm, busi- 
 ne.ss house or coi'poration, nor the grand or subordinate lodges of the 
 Inde[)endent Order of Odd Fellows, as they now exist, nor any grand, 
 subDi'diiiate lodge, oi' other body of Free and Accepted Masons, nor 
 the grand nor any subordinate lodge of the Knights of Pythias, ex- 
 clusive of the endowment rank: Provided, That the United States 
 Benevolent Society of Saginaw, the Michigan Home and Hospital 
 Association of Grand Rapids, the National Protective Society of Bay 
 City, the American Benevolent Society of Traverse City, heretofore 
 inc()ri)orated and doing business, are hereby exem])te(l from the 
 ])rovisions of said act requiring a lodge .syst<'iii with I'itualistic form 
 of work, on complying witli all olher provisions of said act. 
 
 (164) Section '21. Any assdciation iiicor]iorated or doing busi-
 
 THE STATE OF MICHIGAN 463 
 
 ness under this act may amend its articles of incorporation at any 
 of its regular stated meetings by a two-thirds vote : • Provided, That 
 notice of intention so to do shall be published in the official organ, 
 of the association (in the event such association has no official organ, 
 then either a written or printed notice of such intention shall be 
 miiiied to each of the subordinate bodies of such association) at 
 least sixty days prior to the meeting at which such amendment is to 
 be considered. All such amendments and the proceedings relating 
 thereto, together with proof of notice as above provided, shall be 
 duly certified and filed within sixty days after their adoption in 
 the office of the commissioner of insurance. 
 
 (165) Section 22. All the official books, papers, records and 
 other personal property belonging to associations organized vinder 
 this act, or any subordinate body thereof, shall be kept at the home 
 office of the association, except in the case of said subordinate bodies 
 the same shall be kept in such place as the laws of the association 
 shall provide, and the same shall at all times be open to the inspec- 
 tion of the commissioner of insurance. And any officer or other 
 person who shall take, carry away, or in any manner dispose of 
 said books, papers, records, or other personal property from said 
 home office or other place, as above designated, shall be deemed 
 guilty of a misdemeanor, and on conviction thereof shall be subject 
 to the same penalty provided in section seven thousand seven hun- 
 dred fifty-six, compiled laws of eighteen hundred ninety-seven, for 
 the misdemeanor therein specified; Provided, That by a two-thirds 
 vote of the trustees, directors or executive council having general 
 control and management of the affairs of the said association, such 
 books, papers, records, or other property may be taken into the pos- 
 session of and retained in such manner as such trustees, directors 
 or executive council may direct. 
 
 (166) Section 23. No society organized under the laws of this 
 State shall consolidate with any other society, or reinsure its risks 
 or any pai't thereof with any other society, or assume or reinsure the 
 whole of or any portion of the risks of any other society, except as 
 hereinafter provided. 
 
 (167) Section 24. When any such society shall propose to con- 
 solidate with anv other society, or enter into any contract of rein-
 
 464 FRATERNAL bOCIETY LAW 
 
 surance, it shall present its petition to the commissioner of insurance 
 of this State, setting forth the terms and conditions of such proposed 
 consolidation or reinsurance, and praying for the approval or of any 
 modification thereof, which the commission hereinafter provided 
 for maj' approve. The commissioner of insurance shall thereupon 
 issue an order of notice, requiring notice to be given by mail to the 
 members of such society, of the pendency of such petition, and the 
 time and place at which the same will be heard, and the publication 
 of said oi-der of notice and said petition, in five daily newspapers 
 designated by the commissioner of insurance, at least one of which 
 shall be published in the city of Lansing for at least two Aveeks 
 before the time appointed for the holding of such hearing. 
 
 (168) Section 25. The governor of the State or in event of his 
 inabilit}' to act, some competent person • resident of the State to be 
 appointed by him, the attorney general of the State, and the com- 
 missioner of insurance of the State shall constitute a commission 
 to hear and determine upon said petition. At the time and place 
 fixed in said notice, or such time and place as shall be fixed by 
 adjournment said commission shall proceed with said hearing, and 
 may make such examination into the affairs and conditions of said 
 society as it may deem jjroper-. The commissioner of insurance of 
 this State shall have the power to summon and compel the attend- 
 ance and testimony of witnesses and the production of books and 
 papers before said commission. Any policy holder or member of 
 the above named society or societies may appear before said com- 
 mission and be heard in reference to said petition. Said commission, 
 if satisfied that the interests of the policy holders and the members of 
 such society or societies are properly protected and that no reason- 
 able objection exists thereto, may approve and authorize the proposed 
 consolidatif)n or reinsurance, or of such modification thereof as may 
 seem to it best for the interests of the members and policy 'holders, 
 and said commission may make such order with reference to the dis- 
 tribution and disposition of the surplus assets of any such society 
 thereafter remaining, as shall he just and equitable. Such consolida- 
 tion or reinsurance shall only be approved by tlie consent of all the 
 members of said commission, and it shall be the di;ty of said com- 
 mission to guard the interests of the policy holders and members
 
 THE UTATE Of MICHIGAN 465 
 
 of any sueii .society nr societies proposing to eonsolidate or reinsure. 
 All expenses and costs incident to proceedings under this section 
 .shall be paid by the society or societies l)ringing sand petition. 
 
 (1G9) Section 26. Any officer or member of any sucii society or 
 societies violating or consenting to the violation of sections twenty- 
 three, twenty -four and twentj'-flve, or any of them, shall be punished 
 by tine of not less than five hundred dollars and by imprisonment in 
 the county jail for not less than one year. 
 
 The Attorney General of iliclii^'an has ruled ofHoially that the 
 following act applies to Fraternal Societies: 
 
 An Act relating to the provisions of Life Insurance Policies. 
 The People of the State of Michigan enact : 
 
 (52) Section 1. Every policy of insurance issued or delivered 
 within this State on or after the first day of January, nineteen hun- 
 dred eight, by any life insurance corporation doing business within 
 the State shall contain the entire contract between the parties. And 
 nothing shall be incorporated therein by reference to any constitu- 
 tion, by-laws, rules, application or other writing unless the same are 
 endorsed upon or attached to the policy when issued. 
 Section 2. Repeals inconsistent acts. 
 
 The following act in express terms applies to Fraternal Societies 
 though it does not attempt to amend the Fraternal Society in the 
 manner pointed out by law: 
 
 An Act regulating Life Insurance Companies and prohibiting the 
 diversion of funds for political purposes. 
 
 The People of the State of Michigan enact: 
 
 (57) Section 1. No insurance company or association, includ- 
 ing fraternal beneficiary associations, doing business in this State 
 shall, directly or indirectly, pay or use or offer, consent or agree to 
 pay or use and money or property for or in aid of any political 
 party, committee or organization, or for or in aid of any corporation, 
 joint stock or other association organized or maintained for political 
 purposes, or for or in aid of any candidate for political office, or for 
 30
 
 466 FRATERNAL HOCIETY LAW 
 
 nomination for such office or for any political purpose whatsoever, 
 or for the reimbursement or indemnification of any person for money 
 or property so used. iVny officer, director, stockholder, attorney or 
 agent of any corporation or association which violates any of the 
 provisions of this act, who participates ia, aids, abets, or advises 
 or consents to any such violation, and any person who solicits or 
 knowingly receives any money or property in violation of this act, 
 shall be guilty of a misdemeanor and be punished by imprisonment 
 for not more than one year and a fine of not more than one thousand 
 dollars, and any officer aiding or abetting in any contribution made 
 in violation of this act, shall be liable to the company or association 
 for the amount so contributed. No pei'sou shall be excused from at- 
 tending and testif.ying, or producing any books, papers or other doc- 
 uments before any court or magistrate upou any investigation, pro- 
 ceeding or trial, for a violation of any of the provisions of this act, 
 upon the ground or for the reason that the testimony or evidence, 
 documentary or otherwise, reqi^ired of him may tend to incriminate 
 or degrade him; but uo person shall be prosecuted or subjected to 
 any penalty or forfeiture for or on account of any transaction, 
 matter or thing concerning which he may so testify or produce 
 evidence, documeutary or otherwise, and no testimony so given or 
 produced shall be used against him upon an.y criminal investigation 
 or proceeding. 
 
 Section 2. Repeals inconsistent acts. 
 
 The last section of the chapter of the Michigan Statutes relating 
 to "Co-operative and Mutual Life Insurance" reads, viz.: 
 
 (100) Section 40. Nothing in this act shall be construed to af- 
 fect the grand or subordinate lodges of the Independent Order of 
 Odd Fellows, Free and Accepted Masons, Ancient Order of United 
 Workmen, Knights of Pythias, Modem Woodmen of America, 
 Knights of ]\Iaccabees or other similarly condi;cted secret societies, 
 maintaining grand or subordinate lodges, with ritualistic form of 
 work and representative form of government, which may be now or 
 hereafter formed for the sole benefit of members and their beue- 
 fieinrios, and not for the profit from the business of iusurnnce.
 
 THE STATE OF MICHIGAN 4(57 
 
 Beneficiaries — Trust Agreement for Creditor. 
 
 A member's certificate was payable to his sister. On being talten 
 ill, he went to live with and was cared for b.y his aunt, to whom he 
 conveyed land more than sufficient to recompense her for all ser- 
 vices that she might render. He attempted to change the beneficiary 
 in his certificate and to designate his aunt, but the sister refused 
 to consent to the change by surrendering the certificate which was 
 in her possession. Sub.sequently the member executed a trust agree- 
 ment with his half-brother whereby the latter was to pay over the 
 proceeds of all that he miyhl receive under the certificate, if it was 
 paid to him, except one hundred dollars, to the aunt, and the certifi- 
 cate outstanding was changed and a new one issued to this half- 
 brother. The aunt having been fully paid for her services, the 
 half-brother claimed the advantages of the benefit certificate and re- 
 pudiated the trust agreement. It was held that he was entitled to 
 the fund and was not estopped to deny his obligation to hold it as 
 trustee for the aiint. 
 
 Knights of the Modern Maccabees vs. Grice, Supreme Court of 
 Michigan, May, 1907, 111 N. W. 1054. 
 
 Beneficiary — Insurable Interest. 
 
 A person not related to a member is held to have no insurable in- 
 terest in his life under a benefit certificate and his designation of 
 such beneficiary was void as being against public policy. 
 
 Dolan vs. Supreme Council Catholic Mutual Benefit Assn., Supreme 
 Court of Michigan, October, 1907, 113 N. W. 10. 
 
 Michigan Contract. 
 
 Where a member resided in Michigan and was a member of a local 
 lodge of the society in that State, and a certificate issued to him had 
 to be countersigned by the local officers of such lodge, the societv 
 being a foreign corporation, it was held that the contract was to be 
 regarded as a Michigan Contract, and its validity determined by 
 the law of ilichigan. and that it was to be assumed that the certifi- 
 cate was delivered at the place of the residence of the member.
 
 468 FRATERNAL SOCIETY LAW 
 
 Dolan vs. Supreme Council Catholic Mutual Benefit Assn., Supreme 
 Court of Michigan, October, 1907, 113 N. W. 10. 
 
 Resort to Civil Courts. 
 
 A member claimed total ami permanent disability benefits in Jan- 
 uarj', 1900, and the claim was denied in May, 1900, but notice of the 
 soeiet}''s decision was not siven until in February, 1903, and not 
 received bj- the member until in ^lay or June following. The laws 
 of the society permitted twenty days from the date of the decision 
 in any such case for appeal to the executive council and provided 
 also that the member should be notified at once of the decision, and 
 that, failing to appeal within the jn-eseribed time, he should be 
 bound by the decision, and that no action should be brought until 
 all remedies provided by the laws of the society had been exhausted. 
 It was held that in this ease all remedies provided for by the societ.y 
 had been exhausted and that suit might be bi-onght in the courts. 
 
 Steiner vs. Supreme Council Independent Order of Foresters, Su- 
 preme Court of Michigan. October, 1907. 113 N. W. 15. 
 
 Contract for Cash Benefits Ultra Vires. 
 
 In 1892 a certificate was issued to a memlu'r who was then fift}' 
 years old, which provided for animal payments to him by the society 
 when he should become seventy years old, such payments to be in 
 the nature of disability benefits. In 1894 the society reincorporated 
 tmder the Michigan laws of 1893, and in 1895 the society passed a 
 by-law relieving its members from paying dues and assessments after 
 they became seventy years of age and entitling them to such benefits 
 as were promised in the original certificate. It was held that the 
 contract was ultra vires. 
 
 Wineland vs. Knights of the Maccabees of the World, Supreme Ct. 
 Mich., July, 1907, 112 N. W. 696. 
 
 After-enacted Laws Binding. 
 
 An agreement between members of a fraternal society and i1 that 
 they shall be bnnnd by after-enacted bv-laws is valid.
 
 THE STATE OF MICHIGAN 469 
 
 Wineland vs. Knights of the Maccabees of the World. Supreme Court 
 of Michigan, July, 1907, 112 N. W. 696. 
 
 Increasing Member 's Payment. 
 
 With respect to the risjlit of a society to increase the assessments 
 of members after their contracts have been issued, the Court said : 
 
 "We have no doubt that it was lawful and no violation of contract 
 I'iuhts for defendant to increase the number of assessments to meet 
 the demands arising from the deaths of members. There seems to 
 be no great reason why fewer assessments at a greater rate should 
 not be levied, so long as the increase in rates is pro])oi'ti(inal ; young 
 and old members alike contrlliiiting. Whether such ai-tiim be n mere 
 detail in management aimed to procure for distribution the same sum 
 of money in a different way, or intended to actually increase the con- 
 tributions over present necessities for distribution and to accumulate 
 a fund, it may be, so long as it is proportional and reasonable, sup- 
 ported as against a protesting member by his agreement in his appli- 
 cation to conform to and be governed by laws to be from time to time 
 made by the representative governing body of the association." 
 
 Wineland vs. Knights of the Maccabees of the World, Supreme Court 
 of Michigan, July, 1907, 112 N. W. 69G. 
 
 Beneficiary — "Member of Family." 
 
 A by-law of a fraternal soeietv authoi'ized l)enef]t certificates to 
 be made j)ayable to persons belonging to the "members of the 
 family" of the member. The wife of a member took from a found- 
 ling asylum in 1879 a child who was never legally adopted by either 
 the member or his wife, but resided with them from 1879 to 1887 
 when the member and his wife separated until 1890, during which 
 time the orphan remained with the wife. The member and his wife 
 reunited in 1890, living together until 19(12. when the.v were di- 
 vorced. In 1901 the nrphaii worked in a m-arby eity. but spent his 
 Sundays with the member and the member's wife, and in 1902 he 
 married. It was held that such a person was not entitled to take 
 the benefit due under the member's certificate. 
 
 Grand Lodge A. O. XJ. W. vs. McKay, Supreme Court of Michigan. 
 July, 1907, 112 N. W. 730.
 
 470 FRATERNAL SOCIETY LAW 
 
 Limitations — Time to Sue. 
 
 A contract of insurance provided that no suit should be maiji- 
 tained after six montlis from the date on wliit-h proof of loss was 
 required to be filed. This provision was upheld by the courts. For 
 the facts in the case, see 
 
 Harris vs. Phoenix Accident and Sick Benefit Assn., Supreme Court 
 of Michigan, July, 1907, 112 N. W. 935. 
 
 Warranty Not Waived by Knowledge of Agents. 
 
 An api)licant for membership answered a question propounded 
 to him in the application stating that he had never been insane, 
 which was not true. It was known to himself, the agent who took 
 the application and the physician who made the examination that 
 the member had been insane. Nevertheless the society was held not 
 to be estopped to deny the truth of the answer. 
 
 Mudge vs. Supreme Court Independent Order of Odd Fellows, Su- 
 preme Court Michigan, September, 1907, 112 N. W. 113. 
 
 Warranty, Breach of. 
 
 Where, in a suit on a certificate, the certificate and medical exami- 
 nation were sufficient to show the breach of contract it was not 
 fatal to the defense that the by-laws were not offered in evidence, 
 though they were conceded to be a pai't of the contract. 
 
 Mudge vs. Supreme Court Independent Order of Odd Fellows, Su- 
 preme Court Michigan. September, 1907, 112 N. W. 1130. 
 
 The last mentioned case is so recent and so important that the 
 opinion is here set out in full in so far as it deals with warranties 
 and niisrejjresentations : ' 
 
 "The ])laiiiliff in this cause is a widow, and beneficiary in a fra- 
 ternal benefit certificate. Her action is brought to recover the 
 amount thereof, and is predicated upon the death of her husband. 
 
 "The defense is reduced to one claim, viz., that the deceased made 
 an intentionally false answer, in his medical examination, to the
 
 THE STATE OF MICHIOAN 471 
 
 question, 'Have j'ou ever had the disease of insanity?' Upon the 
 trial the learned circuit judf^e was of tlic opinion that the undisputed 
 testimony established this defense, and he therefore directed a 
 verdict for the defendant and afterwards denied a motion for new 
 trial. The plaintiff has appealed. 
 
 "The undisputed testimony shows that the insured had previously 
 been insane, and confined in the asyhim as insane, for three months, 
 upon an adjudication by the Probate Court that he was insane, 
 based upon an application sworn to and filed by this plaintiff stating 
 that he was insane. It also shows that he had ilelusions, and that 
 he had attempted suicide twice. It appeared with equal conclusive- 
 ness that he knew that he had been confined and treated as insane, 
 and there was no testimony that he stated these facts to the agent, 
 or examining physician and was not a party to the insertion of the 
 false answer in the application or report of the examining physician. 
 On the contrary it was shown that his answers were faithfully re- 
 corded. There is no occasion to allude to the attempted discrimina- 
 tion between 'insanity' and the disease of insanity under the facts 
 in this ease. Hence, we find that upon the record, the judge was 
 warranted in saying that the profif established the insured's insan- 
 ity, his knowledge and fraudulent concealment of the same. 
 
 "There can be no question that this was sufficient to deprive his 
 iH'iieficiary of the right to recover, unless the company was estopped 
 to assert the claim by reason of the alleged knowledge of its agents, 
 or by a waiver. 
 
 "It is contended that there was evidence tending to show that 
 both the agent who took the application, and the physician who 
 made the examination, knew, at that time, that the insured had been 
 insane, and that his answers were false, and that this was the knowl- 
 edge of the defendant, and is sufficient to estop it from denying the 
 truth of the answer, 
 
 "Were this a case where the insured had made no misrepresenta- 
 tion in his answer, and was excusably ignorant of fraudulent con- 
 duct on the part of the company's agent in inserting an answer dif- 
 ferent from that given, there might be reason for this claim. In this 
 case the most that plaintiff's counsel could possibly contend, is. that 
 by collusion between the applicant and defendant's agent, they
 
 472 FRATERNAL SOCIETY LAW 
 
 made a false answer, and now seek to hold the company, by making: 
 a 'sword instead of a shield' out of the salutary rule, that the 
 knowledge of the agent is notice to the principal. Good faith is 
 always essential to an estoppel." 
 
 In Ins. Co. vs. Gilbert, 27 M. 428, where the insured answered 
 truly, but the agent inserted a false statement, with his knowledge, 
 stating that it was right, and the insured signed honestly believing 
 that it was right; the Court in reversing the judgment, said: 
 
 "The very form and obvious purjiose of the application, with the 
 consideration contained in it, showed that the statements it con- 
 tained were to be understood as made by the applicant and upon 
 his responsibility as the basis of the contract of insurance he ex- 
 pected to obtain. Although a person ignorant of the meaning of 
 special provisions used in Such papers, or in the ])()licy or of the 
 sense attached to them by the insurers, or of the particular rules or 
 manner of doing business, has a right to rel.y on the instructions and 
 assurances of the agent of siich insurers and upon his acts in refet- 
 enee to such matters, in filling out the application ; yet he cannot, 
 therefore, escape the responsibility for the statement of facts which 
 he inserts himself in the application, or permits the agent to insert, 
 as his. upon which he is just as well informed as the agent himself." 
 
 In the case of Reed vs. Ins. Co., 84 M. 532, the Court said that. 
 
 "If the insured had no information of the agent's misrepresenta- 
 tion, the company could not take advantage of the wrong of its 
 agents and avoid the policy, but that it would have been otherwise 
 had the insured conspired with the agent or had the insured, being 
 fully informed of the representation made and the contents of the 
 application, neglected to bring it to the attention of the company." 
 
 In the recent case of Kctchaua vs. Accident Association, 117 Mich. 
 521, ilr. -Tustice Jloore said, with the approval of the full bench, 
 that 
 
 "It is urged that as the agent knew the answer's were not true, his 
 knowledge of the comjiany. and having issued the policy the com- 
 pany was bound. The courts have always been anxious to take care 
 of the rights of the insured, when the applicant has relied upon the 
 agent's iiifor'niiiig the company of what lias bi'cn Irullifully tdld to 
 him about the cliaracter of tile risk, liul thr courts never have said
 
 THE STATE OF MICHIGAN 473 
 
 the compiiiiy is bound 1)y statements contained in an application 
 when not only the agent but the insured knows they are untrue 
 and calculated to deceive and the application is to be forwarded to 
 the company as the basis of its action. To so hold would put these 
 organizations completely at the mercy of dishonest and unscrupu- 
 lous agents." 
 
 In the ease of Maier vs. Asso.. 47 U. S. Ai)p. 829. 24 C. C. A. 243-78 
 Fed. 570, Mr. Justice Harlan used the following vigorous language : 
 
 "It was said on the argument that the company should not be 
 permitted to take advantage of the misconduct or wrong of its own 
 agent, but the law did not prohibit the eonipany from taking such 
 precautions as were reasonable and necessary to protect itself from 
 the frauds and negligence of its agents. If the printed application 
 used by it had not informed the applicant that he was to be respon- 
 sible for the truth of his answers to questions, and if the want of 
 truth in such answers was wholly due to negligence, ignorance or 
 fraud of the soliciting agent, a different question would be pre- 
 sented, but here the assured was distinctly notified by the applica- 
 tion that he was to be held as warranting the truth of his statements 
 'by whomsoever written.'. Such was the contract betAveen the par- 
 ties, and there is no reason in law or public policy why its terms 
 should not be respected and enforced in an action on the written 
 contract. It is the impression with some that the courts may in 
 their discretion relieve parties from the obligations of their contract, 
 whenever it can be seen that they have acted heedlessly or carelessly 
 in making them, but it is too often forgotten that in giving relief 
 under such circumstances to one party, the Court make and enforce 
 a contract which the other party did not make or intend to make. As 
 the assured stipulated that his statements which were the foundation 
 of the application were true, by whomsoever such statements were 
 written, and as the contract of insiu-ance Avas consummated on that 
 basis, the Court cannot in an action upon the contract disregard the 
 express agreement between the parties and hold the company liable 
 if the statements of the assured at least touching matters material 
 to the risk are found to be imtrue. 
 
 In Ins. Co. vs. Fletcher, 117 U. S. 519, :\lr. Justice Field said: 
 
 "A curious result is the outcome of the instruction. If the agents
 
 ^74 FRATERNAL SOCIETY LAW 
 
 committed no fraud, the plaintiff cannot recover, for the answers 
 reported are not true, but if the}' did commit the imputed fraud, 
 he may recover, although upon the answers given, if truly reported, 
 no policy would have been issued. Such anomalous conclusions 
 cannot be maintained." 
 
 There are many decisions elsewhere which refuse to apply the rule 
 of estoppel in eases of this kind. 
 
 3 Cooley's Briefs in Ins. Cases 2569; 
 Welsh vs. London Ins. Corp., 151 Pa. 607; 
 Ins. Co. vs. Fromm, 100 Pa. 347; 
 Ins. Co. vs. Smith, 34 C. C. A. 506; 
 Clemens vs. Sup. Assemb., 131 N. Y. 485; 
 Boyle vs. N. M. Ben., 95 Wis. 312; 
 Pros. Soc. vs. Lewellyn, 7 C. C. A. 579; 
 
 Mudge vs. Supreme Court I. O. F., Supreme Court of Mich., Sept., 
 
 1907. 112 N. W. 1130. 
 
 Society Not Responsible for Injuries to Candidate Inflicted Through 
 Unwarranted Acts of Local Lodge Officials. ' 
 
 An applicant for membership agreed in his application to be gov- 
 erned by the rules of the society, which rules provided that the local 
 lodge is the agent of the applicant, and that the society should not 
 be liable for any default or negligence on the part of the local lodge 
 or of its officers. It was held in such case that the local officers 
 being selected b.v the local lodge to perfonn the initiatory ceremony, 
 and the ritual described by the society containing nothing suggestive 
 that the initiation of candidates should be conducted in such a way 
 as to injure the candidate, the society was not liable to a candidate 
 for injuries inflicted on him by members of a local lodge during 
 initiatory ceremonies. 
 
 Kaminslii vs. Great Camp Knights of the Modern Maccabees, Octo- 
 l>er, 1906, 146 Mich. 16. 
 
 Exemption From General Insurance Laws. 
 
 Fraternal societies were held to he entitled to exemption from the 
 provision of the general insurance laws of the State irrespective of
 
 THE STATE OF MICHIGAN 4.75 
 
 whether the exemption was invalid as class jcirislalion m- not. aiul 
 that the State alone was cntiHiMl Id i-aise thai f|urstiiMi. 
 
 Monger vs. New Era Association, September, 1906, 145 Michigan 683. 
 
 Service of Process — How Made. 
 
 The laws of the >State providing' for service on insurance com- 
 panies in any county in which the plaintiff resides and defendant 
 does business, was held not to apply to fraternal societies. 
 
 Monger vs. New Era Assn., September, 1906, 145 Mich. 683. 
 
 Interpleader — Evidence Under Same. 
 
 Under a bill of interpleader filed to determine the right to the 
 proceeds of certain certificates, testimony was held to be admissible 
 as to the member's statement as to his purpose in substituting his 
 sister in place of his wife as beneficiary upon the issue of the mem- 
 ber's mental capacity, but not for the purpose of proving a gift. 
 
 Great Camp Knights of the Modern Maccabees vs. Deen, and Modern 
 Woodmen of America vs. Deen, April, 1906, 143 Mich. 652. 
 
 Funds After Payment Not Longer Exempt From Creditor's Claims. 
 
 The proceeds of a certificate which had been paid over by the 
 society to the beneficiary and which are on deposit in a bank to 
 the beneficiary's credit, are held not to be exempt from the claims 
 of creditors. 
 
 Recor vs. Commercial and Savings Bank. December, 1905, 142 Mich. 
 479. 
 
 Beneficiary — Step-father Not a Member of Family of Step-daughter. 
 
 A step-father, who was not a memlier of his step-daughter's house- 
 hold at the time of her death, though at a previous time he boarded 
 with her, was held not to be a member of her family within the terms 
 of the Illinois Fraternal Societv .statute.
 
 476 
 
 FRATERl^AL SOCIETY LAW 
 
 Supreme Lodge Order of Mutual Protection vs. Dewey, January, 1906, 
 142 Michigan 666. 
 
 Beneficiary— What Laws Determine. 
 
 The laws of a society provided that the rights of beneficiaries of 
 members should be determined by the laws in force at the death of 
 members. And the laws in force at such death provide that if the 
 beneficiary designated proved to be an unlawful one, the wife or 
 husband of the member should be recognized as the first claimant 
 for the benefit under such circumstances. A step-father who was 
 named in the certificate as the beneficiary was held to be not 
 entitled to the benefit, but that the member's husband was entitled 
 to it even though the society was willing to pay the amount to the 
 step-father. 
 
 Supreme Lodge Order of Mutual Protection vs. Dewey, January, 1906, 
 142 Michigan 666. 
 
 Fund Exempt From Claim for Alimony. 
 
 The proceeds of a benefit certificate were held to be exempt from 
 a claim for alimony and that the Circuit Court was without jurisdic- 
 tion in a bill for divorce and alimony, to en.ioin the payment of the 
 proceeds of the certificate to the beneficiary nanied therein. 
 
 Hunt vs. Branch Circuit Judge, September, 1905, 141 Mich. 423. 
 
 Limitations as to Time to Sue — Negotiations for Settlement. 
 
 A society iiiailc an unqualified denial of liaJiility on a benefit cer- 
 tificjite, but subsequently offered to pay a certain sum "for the sole 
 purpose of avoiding litigation arid the attendant expense thereto."' 
 The attorney for the claimant subsequently made efforts to induce 
 the soeiet}^ to pay more. Held, that such action did not constitute 
 negotiations which would amount to a waiver of a provision of the 
 contract that action thereon must lie brought within three months 
 of the time when action occurs. 
 
 Cooper vs. Phoenix Accident and Sick Benefit Assn., September, 1905, 
 141 Mich. 478.
 
 THE STATE OF MICH WAN 477 
 
 Sick Benefits — Total Disability. 
 
 A sick boiiefit contract provided for benefits to be paid while the 
 member was "necessarily entirely and continuously" confined to the 
 house. It was hold that under this contract there could be no recov- 
 ery for the time during which the member as his physician testified 
 was not entirely confined to the house I)ut went out of the house for 
 exercise under his jjliysieinn's orders. 
 
 Cooper vs. Phoenix Accident and Sick Benefit Assn., September, 1905, 
 141 Michigan 478. 
 
 Suicide While Insane. 
 
 The laws of a society jn-ovided that there should be no liability 
 under its contracts in ease members suicided unless it should be 
 made to ajijiear, to the satisfaction of the Executive Couneil that the 
 member was insane. Information came to tlie Executive Council that 
 a member was insane, and it investigated this information, consid- 
 ered same, and reached the unanimous opinion that the member was 
 not insane. Subsequently he suicided. The Committee on Appeals 
 subsequently considered the case and disallowed the claim, and it 
 was held that the beneficiary was not entitled to recover. 
 
 Post vs. Supreme Court Independent Order of Foresters, December. 
 1906, 146 Michigan, 666. 
 
 Beneficiaries — Next of Kin. 
 
 The laws of a society jirovided for several grades of persons any 
 one or more of whom might be named as beneficiary, the twelfth 
 grade being "Persons next of kin who would be distributees of the 
 estate of such member intestate." It was held that the grand 
 nephews and grand niece might be designated as beneficiary under 
 such grade though there were persons living belonging to preceding 
 grades who would take the member's estate to the exclusion of the 
 beneficiaries should the member die intestate. 
 
 Mathewson vs. Supreme Council Royal Arcanum. December, 1906, 
 146 Mich. 671.
 
 478 FRATERNAL SOCIETY LAW 
 
 Amendment of State Laws, Effect of. 
 
 After the issuance of a benelit certificate, the statute under which 
 the society was organized was amended with respect to the classes 
 of persons who might be designated as beneficiary, but the statute 
 did not expressly require its acceptance by societies already organ- 
 ized. It was held that a designation by a member of a beneficiary 
 from a class added by the amended statute was lawful, and that the 
 soeietj' was to be regarded as having assented to the amended law 
 by the issuance of said certificate, notwithstanding the fact that the 
 society did not amend or change its own by-laws. 
 
 Mathewson vs. Supreme Council Royal Arcanum, December, 1906, 
 146 Mich. 671. 
 
 Amendment of State Law Cuts Off Rights Not Vested — Change of 
 Beneficiary. 
 
 A certificate was issued payable to a member's sister and contained 
 a clause limiting the member's right to change the beneficiary to 
 such persons as the rules and regulations of the society should deter- 
 mine, and further provided that the member should comply with 
 the laws, rules and regulations which might thereafter be adopted. 
 Amended laws were passed excluding .strangers and creditors from 
 eligibility as beneficiaries. Under such circumstances it was held 
 that the member holding the certificate in question could not, after 
 the amended law. substitute a creditor or stranger as beneficiary, 
 though he might have done .so prior to the amendment. 
 
 Brinen vs. Supreme Council Catholic Mutual Benefit Association, 
 May. 1905, 140 Michigan 220. 
 
 Local Lodge Laws. 
 
 The laws of subordinate lodges were held Id lie part of the eon- 
 tract with the iiicmbei-s and the society. 
 
 Kern vs. Arbeiter Vereln, Feb.. 190.5, 139 Mich. 233.
 
 run STATE OF MICHIGAN 479 
 
 Secession of Subordinate Lodge. 
 
 A subordinate lodge cannot by resolution withdraw from the 
 society and assume the payment of the certificates issued to the 
 members of the subordiimte bxliic by tln' society where such action 
 impairs tlie obliuatioiis ol' tlic coiitiMcts of tbc society with its mem- 
 bers. 
 
 Kern vs. Arbeiter Verein, February, 1905, 139 Mich. 233. 
 
 Warranty, Breach of. 
 
 For the facts in a case whei-e it was claimed that there was a 
 breach of warranty arising n\nni representation made in the applica- 
 tion that the applicant had not consulted a physician within seven 
 years and had never had heart disease, and for the instructions of 
 the Court to the .jury upon the question in issue in such a case, see 
 
 Wilson vs. Royal Neighbors of America, March, 1905, 139 Mich. 423. 
 
 Subordinate Lodge Property — Disposition of Same. 
 
 A subordinate lodge instructed one of its members to purchase a 
 piece of real estate in his own name for the benefit of the lodge, 
 which he did, taking a warranty deed. The lodge paid the purchase 
 price and exercised all acts of ownership over the property but did 
 not obtain a deed to itself. Subserpiently the lodge voted to sell the 
 property to this member upon certain terms with which he com- 
 plied; and the member thereafter contracted to sell the property, 
 and did sell it to certain jiersons who were not members of the lodge. 
 It was held that inasmuch as the member had paid to the lodge a 
 fair price for the ])ro]HTty and the purchasers being bona fide, the 
 society on the di.ssolntion of the subordinate lodge could not recover 
 the property under the provisions of its charter, declaring that the 
 property of subordinate lodges should, upon the suspension of their 
 chai'ter or their dissolution, revert to the society. 
 
 Grand Lodge Independent Order of Odd Fellows vs. Barker, April, 
 1905, 139 Michigan 701.
 
 ^gQ FRATERNAL SOCIETY LAW 
 
 Proceedings in Tribunals of Society Not Conclusive. 
 
 The eonclusiveness of the judgment of the supreme tribunal of 
 the society as to liability on a membership certificate may be ques- 
 tioned in equity or in law whenever such action is set up as a 
 defense to an action to recover on a certificate. 
 
 Dick vs. Supreme Body International Congress, December, 1904, 138 
 Michigan 372. 
 
 Privileged Communications Before Lodge Trials. 
 
 The statutes forbidding the disclosure by a physician of informa- 
 tion acquired in attending a patient, was held to apply as well to 
 hearings before the tribunals of the society as to proceedings in 
 courts of the State. 
 
 Dick vs. Supreme Body International Congress, December, 1904, 138 
 Michigan 372. 
 
 Self Destruction — Accidental Poisoning. 
 
 A contract provided for exemption from liability in case the mem- 
 ber died by self-destruction or suicide. The facts disclose that the 
 member took poison, not with the intent to commit suicide but to 
 frighten his wife into giving him money. It was held that such 
 death was not within the terms of the exemption clause. 
 
 Courtemanche vs. Supreme Court Independent Order of Foresters, 
 March, 1904, 136 Mich. 30. 
 
 Presumptions as to Payments. 
 
 The delivery of a certificate which recites that it is issued in con- 
 sideration of certain payments on the delivery thereof, raises the 
 presumption that payments had been made. 
 
 Taylor vs. Supreme Lodge Columbian League, December, 1903, 135 
 Michigan 231.
 
 THE STATE OF MICHIGAN 481 
 
 Delivery of Certificate — Waiving Payments. 
 
 A certificate recited that it was issued in consideration of the pay- 
 ment of the membership fee and assessment of $1.44, all of which 
 were due on delivery thereof. The agent remitted the membership 
 fee, and delivered the certificate without collecting same, and the 
 assessments were not paid. It was held that the question of pay- 
 ment was for the jury to decide. 
 
 Taylor vs. Supreme Lodge Columbian League, December, 1903, 135 
 Michigan 231. 
 
 Waiver of Other Defenses by Asserting One. 
 
 A refusal of the officers of a society to pay a claim solely on the 
 ground that the member had never paid an assessment, was held to 
 constitute a waiver of other defenses known to the officers at the 
 time. 
 
 Taylor vs. Supreme Lodge Columbian League, December, 1903, 135 
 Michigan 231. 
 
 Two Societies Alike Not Permitted to Compete Under Peculiar Facts 
 Shown. 
 
 A society was incorporated in 1891 with jurisdiction limited to 
 the State of Michigan, and another society, similar in organization 
 and name, was incorporated in Michigan in 1892, its jurisdiction 
 being intended to embrace all parts of the United States except the 
 State of Michigan and certain other states where like organizations 
 were already established. The first mentioned society devised and 
 adopted a ritual and certain secret work, badges and paraphernalia 
 which it subsequently, in view of advantages secured to its mem- 
 bers, permitted the second mentioned society to use and the work 
 and methods of the two societies were practically the same, both 
 having insurance features maintained upon the assessment plan. But, 
 by reason of the second mentioned society accumulating a reserve 
 fund, the assessments levied and collected by it were much greater 
 than those collected by the first mentioned society. The second 
 31
 
 482 FRATERNAL SOCIETY LAW 
 
 mentioned society had extended its work over many states at great 
 expense, wlien the first mentioned society, with a view to the per- 
 petuity of its insurance business, determined to extend its opera- 
 tions outside the State of Michigan and into the territory of the 
 second mentioned society; and it amended its articles of incorpora- 
 tion accordingly. The first mentioned society was held to be es- 
 topped from competing with the second in the territory occupied by 
 it by using the same or substantially the same ritual, and that an 
 injunction should be issued accordingly. 
 
 Great Hive Ladies of the Maccabees of Michigan vs. Supreme Hive 
 Ladies of the Maccabees of the World, January, 1904. 135 Michigan 
 392. 
 
 Privileged Communications. 
 
 A statute of Michigan provides that when a suit is prosecuted or 
 defended by the heirs, assignees, devisees, legatees or personal rep- 
 resentatives of tlie deceased member, the opposite party if examined 
 as a witness on his own behalf shall not be allowed to testify to mat- 
 ters which, if true, must have been equally within the knowledge of 
 the deceased, and this knowledge was held to apply to a contest 
 between two beneficiaries under separate designations of a deceased 
 member of a beneficiary society, each of whom claimed to be en- 
 titled to the fund. 
 
 Great Camp Knights of the Maccabees vs. Savage, January, 1904, 
 135 Michigan 459. 
 
 Trial Tribunals in Societies Lawful. 
 
 The laws of a society creating a trilnuial of its members to hear 
 and determine all claims of members against it. declaring that the 
 decisions of such tribunal shall be final are lu^ld to be valid, and to 
 form a part of the contract of membership between the members and 
 the society. 
 
 Derry vs. Great Hive Ladies of the Modern Maccabees, January, 
 1904, 135 Michigan 494.
 
 THE STATE OF MICHIGAN 483 
 
 Acquiescence by Member in Ruling of Society. 
 
 As to facts showing acquieseenco by a mcinlicr in an adverse de- 
 cision against his claim, wliioli decision was iiiade by a ooniniittpe of 
 the society, see 
 
 Derry vs. Great Hive Ladies of tlie Modern Maccabees, .ianuary, 
 1904. 135 Micliigan 494. 
 
 Tribunals of Society Not Bound by Technicalities. 
 
 When' a controversy is submitted to a tribunal of the society, the 
 tribunal may be expected to act more freely and less technically than 
 courts and juries, and the only rule for the admission or exclusion 
 of testimony is that of common fairness, where the parties in such 
 a case had produced before the supreme tribunal under the lailes of 
 practice, their testimony, and a legal and fair hearing had been 
 granted, and an adverse decision was found, its validity could not 
 be affected by the fact that one of the parties was not afforded an 
 opportunity to be present when the tinal determination was made. 
 
 Barker vs. Great Hive Ladies of the Modern Maccabees, Supreme 
 Court of Michigan. January, 1904, 135 Mich. 499. 
 
 Resort to Civil Courts. 
 
 The laws of a society provided for arbitration of death claims, 
 and that the decision of the arbitrating body should be tinal. It was 
 held that no suit in the courts could be maintained until the remedies 
 provided for by the laws had been exhausted. 
 
 Hoag vs. Suyreme Lodge International Congress, July, 1903, 134 
 Mich. 87. 
 
 Forfeiture — Retention of Payments. 
 
 The acceptance of a ])ast tine assessment and its retention until 
 after the eommeuceinent of suit, was held to constitute a, waiver of 
 the right to assert forfeiture.
 
 484 FRATERNAL SOCIETY LAW 
 
 Lord vs. National Protective Society, September, 1903, 134 Michigan 
 357. 
 
 Right of Beneficiary to Contest Change. 
 
 A beiieficiaiy in a certificate was held to have such an interest 
 therein as to enable him to contest the validity of the latter 's action 
 in surrendering the certificate and procuring a new one in favor of 
 a different beneficiary on the ground that the member was mentally 
 incompetent to bring about such a result ; and it was held that if such 
 claim could be established the original certificate would be held to 
 have remained in force. 
 
 Grand Lodge A. 0. U. W. vs. Franlc, May, 1903, 133 Micli. 232. 
 
 Beneficiaries Have No Vested Interests. 
 
 The fact that the beneficiary named in the certificate is in posses- 
 sion thereof, and has paid the assessments and dues thereon, is held 
 not to entitle her to object to the designation of a new beneficiary by 
 the member pursuant to the law authorizing him to change his bene- 
 ficiary at will. 
 
 Grand Lodge A. O. U. W. vs. McGratli, June, 1903, 133 Mich. 626. 
 
 Beneficiary Has Right to Contest Change Where Mental Capacity of 
 Member in Question. 
 
 A beneficiary in a certificate has such an interest therein as to 
 enable lier to contest the mental ca])a('ity oi the member to designate 
 a new beneficiary. 
 
 Grand Lodge A. O. U. W. vs. McGrath, June, 1903, 133 Mich. 626. 
 
 Beneficiary — Widow De Facto. 
 
 The laws of the soeiet.\' jirovided tliat certificates sluMilil be jiaid 
 to the wife, husband, children, dependent mothei". etc.. of the mem- 
 ber. A man and a woman lived toj^cther ns husl)and and wife in 
 good faith under a mistaken liclicl that \\\v wonuin was divorced
 
 THE l?TATE OF MICHIGAN 485 
 
 from her former husband, and sho \v;is designated as the beneficiary 
 of the member with whom she was so living. Held, that under these 
 facts she was entitled to take the benefit as against the mother of the 
 mciiihcr who. with full knowledge of all the facts, had for eighteen 
 years, li'eatctl thciii as husband and wife. 
 
 Supreme Tent Knights ol' the Maccabees of the World vs. McAllister, 
 December, 1902, 132 Mich. 69. 
 
 Beneficiaries — Public Policy. 
 
 It is not against public policy to permit societies to issue certifi- 
 cates to a member payable to a woman living with the member in 
 the honest belief of both that they were husband and wife, although 
 one of them may have been married but not legally divorced. 
 
 Supreme Tent Knights of the Maccabees of the World vs. McAllister, 
 December, 1902, 132 Mich. 69. 
 
 Beneficiary — Change of Same. 
 
 The laws of a society provided that the beneficiary may be changed 
 upon the surrender of the certificate, the beneficiary having pos- 
 session of the certificate refused to surrender it, and at the request 
 of the member the society issued a new certificate jDayable to a 
 different beneficiary. Held, that the beneficiary named in the first 
 certificate could not recover on same. 
 
 Allgemeiner Arbeiter Bund vs. Adamson, December, 1902, 132 Mich- 
 igan 86. 
 
 Assent of Member to Change in Laws. 
 
 The assent of a member of a society to a change in its laws, where- 
 by certain benefits are increased and others diminished was said to 
 be not without consideration and hence need not be in writing or 
 evidenced by any express agreement. 
 
 Pokrefky vs. Detroit Fireman's Fund Assn., June, 1902, 131 Mich. 38.
 
 ^gg FRATERNAL SOCIETY LAW 
 
 Receivers — Liability of. 
 
 A receiver of a fraternal society will be charged with assessments 
 lost tbroiagh his want of diligence in learning of the deaths of debt- 
 ors and presenting claims against their estates. 
 
 In re Angell, September, 1902, 131 Mich. 345. 
 
 Payments Made in Good Faith on Unlawful Contracts. 
 
 Where money has been paid under certificates which have fully 
 matured, such payments will not be set aside in a suit by a receiver 
 of a society asking relief on the ground that the scheme of the society 
 was impracticable and illegal and that all moneys collected from the 
 members shovxld constitute a trust fund to be dishtributed pro rata 
 among themselves. 
 
 Calkins vs. Green, March, 1902, 130 Mich. 57. 
 
 Laws Respecting Change of Beneficiary May Be Waived. 
 
 Restrictions in the laws of a society as to the method of changing 
 beneficiary are matters of contract between the society and members 
 and the change made otherwise by the member, assented to by the 
 society during the member's lifetime, was held to contain no ground 
 for complaint by the beneficiary. 
 
 Supreme Court Order of Patricians vs. Davis, January, 1902, 129 
 -Michigan 318. 
 
 Certificate — Delivery of. 
 
 Delivery of a benefit certificate to an officer of the society in his 
 individual capacity as custodian for the member was held to be de- 
 livery to the member. 
 
 Supreme Court Order of Patricians vs. Davis, January, 1902, 129 
 Michigan 318.
 
 THE STATE OF MICHIGAN 48T 
 
 Forfeiture — Payments Accruing Dxiring Disability. 
 
 A member's certificate cannot be forfeited for the non-payment of 
 an assessment falling due during the period of disability for which 
 disability he is entitled to a benefit amounting in excess of the as- 
 sessment due. 
 
 Albrecht vs. People's Life and Annuity Assn., February, 1902, 129 
 Mich. 444. 
 
 Suit by One Society Versus Another in Voting Right to Use Ritual, 
 Etc. 
 
 For an interesting di.scussion of the character of pleadings and 
 relief sought under same where a bill is filed by one society against 
 another, see the following: 
 
 Great Hive Ladles of the Maccabees for Michigan vs. Supreme Hive 
 Ladies of the Maccabees of the World, January, 1902, 129 Mich. 324. 
 
 Funds of Local Lodge Not Property of Society. 
 
 Where under the laws of the society a sick benefit fund accumu- 
 lated by a subordinate lodge is the property of the subordinate lodge 
 a receiver of the parent body is not entitled thereto as against an- 
 other society to which the fund has been transferred by the local 
 lodge. 
 
 Detroit Savings Bank vs. Haines, July, 1901, 128 Mich. 38. 
 
 Denial of Liability Waives Proofs of Loss. 
 
 Upon the society denying liability the beneficiary is relieved of 
 the necessity of filing proofs of claim. 
 
 Hoffman vs. Michigan Home and Hospital Assn., Oct. 1901, 128 Mich. 
 322. 
 
 Conditions Precedent Waived. 
 A provision of the laws of the society making the initiation of an
 
 ^gg FRATERNAL SOCIETY LAW 
 
 applicant a condition precedent to the issviance of the certificate is 
 ■waived by the issuance of the certificate without having required the 
 performance of such condition. 
 
 -■^Witii 
 
 Wagner vs. Supreme Lodge Knights and Ladies of Honor, November, 
 1901, 128 Mich. 660. 
 
 Tenders Refused Need Not be Repeated. 
 
 When a society has refused to receive assessments on the ground 
 that the person tendering same is not a member, it cannot defeat a 
 claim for benefits because of the failure to tender subsequent pay- 
 ments. 
 
 Wligner vs. Supreme Lodge Knights and Ladies of Honor, November, 
 1901, 128 Mich. 660. 
 
 Agency of Local Lodge. 
 
 "Where the laws authorized a local lodge to receive assessments, 
 the neglect of such local lodge to forward same to the society will 
 not defeat the rights of the member, notwithstanding another by-law 
 declared such local lodge to be the agent of the member and not of 
 the society. 
 
 Wagner vs. Supreme Lodge Knights and Ladies of Honor, Novembe'", 
 1901, 128 Mich. 660. 
 
 Delivery of Certificate to Local Lodge. 
 
 Where a certificate is issued by a society and sent to a subordinate 
 lodge for delivery to a member, the contract is complete, though the 
 certificate is not actuallj' delivered. 
 
 Wagner vs. Supreme Lodge Knights and Ladles of Honor, November, 
 1901, 128 Mich. 660. 
 
 Right of Society to Prescribe Qualifications for Membership. 
 
 Where the statute authorized a society to make and establish rules
 
 THE STATE OF MICHIGAN 489 
 
 and rciiiiliitious for governing the affairs and business of the society 
 atid its members, not inconsistent to the laws of the United States 
 or of tlic particular State of the society's incorporation, and to decide 
 as to the necessary qualifications for membership, a by-law of such 
 a society prohibiting members from belonging to any society not 
 a|i|ir(i\('d by the Roman Catholic Church is valid and a violation 
 tluTcdf is held to jiistify the mrmber's expulsion. 
 
 Mazurkiewicz vs. St. Adelbertus Aid Society, June, 1901, 127 Mich. 
 145. 
 
 Payments Made on Ultra Vires Contracts. 
 
 Where a society issued certificates payable at the expiration of a 
 fixed jieriod in the nature of entlowiueut insurance, which it was not 
 authorized to do by the act under which it was organized, and when 
 such society went into the hand.s of a receiver, one who received 
 money from it for distribution among the holder.s of matured certifi- 
 cates and who distributed same accordingly, without knowledge of 
 the insolvency of the society, was held not liable to the receiver for 
 the money so distributed on the theory that he participated in the di- 
 version of a trust fund. 
 
 Calkins vs. Beekman, July, 1901, 127 Mich. 249. 
 
 ^ Forfeiture — Custom to Receive Late Payments. 
 
 Evidence that a member of a society entertained a belief that the 
 courts wouU not sustain a forfeiture of his certificate for failure to 
 pay an assessment within the time required by the laws of the 
 society has no tendency to show that in delaying such payment he 
 did not rely upon the custom of the society in receiving such pay- 
 ments after the time when they were due. 
 
 Wallace vs. Fraternal Mystic Circle. July, 1901, 127 Mich. 287. 
 
 , Forfeitures — Fact Cases. 
 
 For the facts in a case where it was claimed on the part of the
 
 490 
 
 FRATERNAL SOCIETY LAW 
 
 society that the member had forfeited his certificate by reason of 
 failure to make payments, and where such forfeiture was not upheld 
 by the Court, see 
 
 Wallace vs. Fraternal Mystic Circle, July, 1901, 127 Mich. 287. 
 
 Beneficiary— Trustee May Be Designated. 
 
 A ti-ustee may be designated as beneficiary to act for persons who 
 otherwise would be competent to take if named directly. 
 
 Grand Lodge A. 0. U. W. vs. Fisk, April, 1901, 126 Micli. 356. 
 
 r 
 
 Resort to Civil Courts. 
 
 "Where the beneficiary of a member is denied the remedy by appeal 
 provided for by the society's laws, such beneficiary may maintain 
 i. suit at law notwithstanding the provisions of the by-laws of the 
 Society to the contrary. 
 
 Rose vs. Supreme Court Order of Patricians, May, 1901, 126 Mich. 577. 
 
 Restrictions on Member's Conduct. 
 
 Where the members of a sick benefit society were organized among 
 the members of a particular church, and were required by the laws 
 of the Society not to belong to any other sick benefit society, and 
 were also required to care for their own sick members, it was held 
 not to be unreasonable nor against public policy to so restrict mem- 
 bership, since in the absence of such restriction, a member might 
 join so many societies of a similar nature as to be unable to perform 
 the duties he owed this society. 
 
 Bretzlaff vs. Evangelical Lutheran Sick Benefit Society, October, 1900, 
 125 Mich. 39. 
 
 Beneficiary^Appointment of Trustee. 
 
 A member of the A. 0. U. W. carried a eortificnte which after the 
 death of the beneficiaries named therein, who were his wife and
 
 THE STATE OF MICHIOAN 491 
 
 daughter, desired to nuike C, his son-in-law, his beneficiary. Tliis 
 was prohibited hy the laws of the society. The member thereupon 
 made his niece his beneficiary with a written ;mi'cciiieiit signed by 
 her that upon receipt of the fund she W(uiid pas it over to (".. the 
 son-in-law. The society issued its check to tlic niece witii foil knowl- 
 edge of the trust upon which she had agreed to receive it. Upon 
 receipt of the cheek, the uieee refused to transfer it to C. or to pay 
 him the money. Held, that she was bound to carry out the trust and 
 that the society was the only i)arty in a position to contest the lesnl- 
 ity of the transaction. 
 
 Cowin vs. Hurst, July, 1900, 124 Mich. 545. 
 
 Payments — Receiver May Enforce Collection of Assessments. 
 
 A member of a society is obligated to make all payments required 
 under his certificate and a receiver of an insolvent socii'ty has the 
 right to enforce collection of an assessment levied by him under the 
 authority of law to collect assessments which are made for the pur- 
 pose of meeting the liabilities accruing before his appointment. 
 
 Calkins vs. Angell, Feb., 1900, 123 Mich. 77. 
 
 Conflict in Laws of Society. 
 
 "Where there is a conflict between the articles of association and 
 the by-laws of a society, the articles of association will govern. 
 
 Sheldon vs. National Masonic Accident Assn., December, 1899, 122 
 Mich. 403. 
 
 Proofs of Death, Delays Due to Society. 
 
 A society cannot take advantage of the delay in furnishing proofs 
 of loss occasioned by its own neglect in supplying blanks after re- 
 quest for same. 
 
 Sheldon vs. National Masonic Accident Assn., December, 1899, 122 
 Mich. 403.
 
 492 FRATERNAL SOCIETY LAW 
 
 Resort to Civil Courts. 
 
 A finding by the tribunals of a society that a member was not en- 
 titled to sick benefits cannot be rendered conclusive so as to preclude 
 resort to the courts by a mere reference to the custom of the society 
 where there is nothing in the constitution or laws which so provide. 
 
 Wuerthner vs. Workingmen's Benevolent Society, July. 1899, 121 
 Mich. 90. 
 
 Agency of Local Lodge, Waiver of Laws by. 
 
 Where local lodges are required to collect assessments, the laws 
 of the society giving them full power in respect thereto, including 
 the right to reinstate members without notice to the society, an 
 action for death benefits cannot be defeated where it appears that 
 the lodge had induced its members to believe, through a long con- 
 tinued practice of receiving assessments after due without declaring 
 a forfeiture, that such payments would be received after the same 
 were due. 
 
 Wallace vs. Fraternal Mystic Circle, September, 1899, 121 Mich. 263. 
 
 Constitutional Law, Title to Statute. 
 
 For a discussion of the title to a fraternal beneficiary statute 
 which was claimed to embrace more than one subject, see the fol- 
 lowing : 
 
 McMorran vs. Great Hive Ladies of the Maccabees, June, 1898, 117 
 Mich. 398. 
 
 u Forfeitures, Waivers of. 
 
 One whose certificate has been cancelled for non-payment of an 
 assessment of which he received no valid notice, where notice is 
 required, does not waive the defects in the notice by subsequently 
 offering tn pay llic assessments wlieu at the sinne tinic he insists that 
 be was not in default.
 
 THE tiTATi: Of MICUIOAN 493 
 
 Dowling vs. Knights Templars and Masons' Life Indemnity Co., 
 March, 189S, 116 Mich. 471. 
 
 Resort to Civil Courts. 
 
 The laws of the society, referred to in the certificate and made a 
 part tliereof, provide for arbitration of disjnited claims, and that the 
 award shall be final; but that no award shall be valid unless signed 
 by all the arbitrators, in which case each member shall have a right 
 to a new arbitration, and providing that no suit in law or in equity 
 sliall be commenced or maintained by any member against the 
 society until all remedies provided for in the society have been 
 exhausted, will not be declared inoperative on the ground that they 
 are unreasonable and oppressive. 
 
 Russell vs. North American Benefit Association, May, 1898, 116 Mich. 
 699. 
 
 Society Not a Partnership in Any Sense. 
 
 A benevolent and social organization having in view^ the pro- 
 tection, benefit and welfare of its members' in their employments, 
 is in no sense a partnership. For a discussion of this doctrine and 
 for elaborate notes and authorities, see 
 
 Brown vs. Stoerkel, Supreme Court of Mich., February, 1889, 3 L. 
 R. A. 430.
 
 4-94 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF MINNESOTA. 
 
 CHAPTER 24. 
 
 (The Section numbers employed correspond to those in the 1907 
 Edition of the Insurance Laws of Minnesota as issued by the In- 
 surance Department.) 
 
 Beneficial and Fraternal Associations. 
 
 Section 1U8. Any bcueficiarj- or fraternal association, as defined 
 in this chapter, may make provisions for the payment of benefits 
 in case of sickness or temporary or permanent physical disability, 
 as a result of disease, accident, or age exceeding seventy years, and 
 may also provide for the payment of funeral expenses of a member 
 not exceeding .$75 : in any case all of said benefits to be paid subject 
 to compliance by its members with its constitution and by-laws, 
 out of funds derived from assessments and dues collected from its 
 members. Payments of death benefits shall be made only to the 
 families, heirs, blood relatives, adopted children, fiancee of the mem- 
 ber, or persons dependent upon him, or whenever his certificate of 
 membership may so provide, the executor or administrator of the 
 estate of the member in tmist for such person or persons above 
 mentioned as may be designated in such certificate. Any member 
 wlu) by reason of old age or other disability is dependent for his 
 support in whole or in part upon another, whether such other stands 
 in the above relationship to him or not, may with the consent of and 
 under such regulations as the association may prescribe, designate 
 siicli [lerson ii])(in whom he is so deiieudent as a beneficiary under
 
 THE STATE OF MINNESOTA 495 
 
 his said certificate, and in such case the deatli lienefits shall be paid 
 according to such designation. Every such association may create 
 and maintain a reserve fund for such purpose and shall be held to 
 an institution of public charity, and shall be exempt from payment 
 of taxes for State, county or municipal purposes, except that the real 
 estate of such association shall be taxed as other real estate in the 
 State of Minnesota. (R. L. '05 s. 1703, as amended by '07 c. 382.) 
 
 "Fraternal Beneficiary Association" Defined. 
 
 Section 109. Any corporation, society, order or voluntai'y asso- 
 ciation, without capital stock, organized and carried on solely for 
 the mutual benefit of its members and their beneficiaries, and not for 
 profit, and having a lodge system v^ith ritualistic form of work and 
 representative form of government and which shall make provision 
 for the payment of death or disability benefits, or both, is hereby 
 declared to be a fraternal beneficiary association. ('07 c. 345 s. 1.) 
 
 "Lodge System" Defined. 
 
 Section 110. Any association having a supreme governing or 
 legislative body and subordinate lodges or branches by Avhatever 
 name known into which members shall be elected, initiated and ad- 
 mitted in accordance with its constitution, laws, rules, regulations, 
 and prescribed ritualistic ceremonies, which subordinate lodges or 
 branches shall be required by such association to hold regular or 
 stated meetings at least once in each month, shall be deemed to be 
 operating under the lodge system. ('07 c. 345 s. 2.) 
 
 "Representative Form of Government" Defined. 
 
 Section 111. Any association shall be deemed to have a repre- 
 sentative form of government, when it shall provide in its constitu- 
 tion and laws for a supreme legislative or governing body, com- 
 posed of representatives elected either by the members or by dele- 
 gates elected by the members through a delegate convention sj^stem, 
 together with such other members as may be prescribed by its con- 
 stitution and laws, provided that the elective representatives shall
 
 496 FRATERNAL SOCIETY LAW 
 
 constitute a majority in number and have not less than a majority 
 of the votes, nor less than the votes required to amend its constitu- 
 tion and laws, and provided further, that the meetings of the 
 supreme or governing body and the election of officers, representa- 
 tives or delegates shall be held as often as once in four years. The 
 members, officers, representatives or delegates of a fraternal bene- 
 ficiary society shall not vote by proxy. ( '07 c. 345 s. 3.) 
 
 Scope of Act — Exemption From Insurance Laws. 
 
 Section 112. Except as herein provided, such association shall 
 be governed by this act and shall be exempt from all provisions of 
 the insurance laws of this State not only in governmental relations 
 with the State, but for every other purpose, and no law hereafter 
 passed shall apply to them, unless they be expressly designated 
 therein. ('07 c. 345 s. 4.) 
 
 Kinds of Benefits Which May or Shall be Paid. 
 
 Section 113. Every association transacting business under this 
 act shall provide for the payment of death or disability benefits, or 
 both, and may provide for the payment of benefits in case of tem- 
 porary or permanent physical disability, either as the result of 
 disease, accident or old age, provided, the period of life at which 
 the payment of benefits for disability on account of old age shall 
 commence shall not be under seventy years. ( '07 c. 345 s. 5.) 
 
 Who May be Beneficiaries. 
 
 Section 114. The payment of death benefits shall be confined to 
 the wife, husband, family, relatives by blood, marriage or legal 
 adoption, affianced husband or affianced wife, or to a person or per- 
 sons dependent on the member, subject to the limitation and control 
 of the association as to the designation of beneficiaries within said 
 clas-ses. ('07 c. 345 s. 6.) 
 
 Persons Disqualified for Beneficial Membership. 
 
 Section 115. No association shall admit to beneficial membership
 
 THE STATE OF MI.WEl^OTA 497 
 
 any ])(>rson less tliaii sixteen (16) iior more than sixty (60) years 
 of iiK'e. nor any jierson who has not been examined by a legally 
 (|iKilifie(l jiraetieinK |)hysician and whose examination has not been 
 a[ipfiiv<-(l liy tlic supervisiny' ini'dical autiiority of the association as 
 pKovided by the laws of the association ; jirovided that such examina- 
 tion shall not be required of associations paying only accident or sick 
 benefits, or funeral benefits not exceeding .+300. ('07 c. 345 s. 7.) 
 
 Certificates, What to Contain — Evidence — Amendments to Charter, 
 Etc., Effect. 
 
 Section 116. Every certificate issued by any association shall 
 specify the maximum amount of benefit provided by the contract 
 and shall provide that the certificate, the constitution and laws of the 
 association and the application for membership and medical exam- 
 ination, signed by the applicant, shall constitute the contract between 
 the association and the member and copies of the same certified by 
 the secretary of the association or corresponding officer shall be re- 
 ceived in evidence of the terms and conditions of the contract; and 
 any changes, additions or amendments to said charter or articles 
 of a.s.sociation, constitution or laws duly made or enacted subsequent 
 to the issuance of the benefit certificate shall bind the member and 
 his beneficiaries and shall govern and control the contract in all 
 respects the same as though such changes, additions or amendments 
 had been made prior to and were in force at the time of the applica- 
 tion for membership. Provided, that any association hereafter or- 
 ganized or admitted to do business in this State shall in its certificate 
 specify a fixed mininuim amount of benefit. ('07 c. 345 s. 8.) 
 
 Revenue Fund — Benefits and Expenses, How Paid — Extra Assess- 
 ments. 
 
 Section 117. Any association may create, maintain, invest, dis- 
 burse and apply a reserve, emergency, surplus or other fund in ac- 
 cordance with its constitution and laws for the purposes specified in 
 section 5 (113 of this code), of this act. Any such association so 
 creating, maintaining, investing, disbursing, or applying any such 
 reserve, emergency, or surplus fund, shall not be held to be organized 
 32
 
 498 FRATERNAL SOCIETY LAW 
 
 or carried on for profit witliiu tlie intent of tlie provisions of section 
 1 (109 of this code) of this act. Such funds shall be held, invested 
 and disbursed for the use and benefits of the association, and no 
 member or beneficiary shall have or acquire any individual rights 
 therein, or be entitled to an apportionment or the surrender of any 
 part thereof. The funds from which benefits shall be paid and the 
 funds from which the expenses of the association shall be defrayed, 
 shall be derived from periodical or other payments by the members 
 of the association and accretions of said funds ; and every such asso- 
 ciation shall provide in its constitution or laws that if such regular 
 payments are insufficient to pay all matured death and disability 
 claims in full and to provide for the creation and maintenance of the 
 funds i-equired by its constitution and laws, extra assessments, or 
 other payments, may be levied upon the members to meet such de- 
 ficiency. ( '07 c. 345 s. 9.) 
 
 Real Estate Holdings — Investments. 
 
 Section 118. Any association may invest its funds in aiul hold 
 real estate for lodge and office purposes, and any real estate acquired 
 by foreclosure or received in satisfaction of loans, and may sell and 
 convey the same. Any such association may also invest its funds 
 in government, State, provincial, county or municipal bonds, or 
 bonds of any township, park or school district having taxing powers, 
 provided that such bunds shall be a direct obligation on all the 
 taxable property within such municipality or district and the net in- 
 debtedness of such municipality or district shall not exceed five (5) 
 per centum of the value of all taxable pi'operty therein, according 
 to the last valuation for taxation preceding the issuance of said 
 bonds ; or in first mortgages or first mortgage bonds upon improved 
 real estate for not exceeding fifty (50) per centum of the actual cash 
 value thereof at the time of making the loan ; provided, however, 
 that every foreign association shall be empowered to invest its fnnds 
 in such securities as may be permitted by the laws of the State, 
 province oi- country in which it is organized. ('07 c. 345 s. 10.)
 
 THE STATE OF MINNESOTA 499 
 
 Expenses. 
 
 Section 110. Every association sliall make provision in its con- 
 stitution and laws for jiaynicnt 1)\' incnilicrs of such an association, 
 whieli provi.siou sliall state the purpose of the same and a proportion 
 thereof which may be used for expenses, and no part of the money 
 collected for mortuary or disability purposes and no part of the 
 reserve, emergency or surplus funds of the net accretions of either 
 or any of said funds shall Ije used for cxjicnses. ( '07 e. 345 s. 11.) 
 
 Benefits Exempted From Process — Funds and Property, Except 
 Real Estate, Exempted From Taxation. 
 
 Section 120. The money or otlier benefits, charity, relief or aid, 
 to be paid, provided or rendered by any association authorized to do 
 business under this act, shall neither before nor after being paid, 
 be liable to attachment, garnishment, or other process, and shall not 
 be seized, taken, appropriated or applied by any legal or equitable 
 process or operation of law to pay any debt or liability of a certifi- 
 cate holder or of any beneficiary named in a certificate, or of any 
 person who may have any right thereunder; such associations are 
 hereby declared to be charitable institutions, and the property held 
 and used for lodge purposes, aud the funds of such associations shall 
 be exempt from taxation under the general tax or revenue laws of 
 this State. Except that the real estate of such association shall be 
 taxable. ('07 e. 34.3 s. 12.) 
 
 Methods of Forming Association — Powers and Duties of Commis- 
 sioner Herein — Preliminary Certificate — Certificate of Association 
 — Discontinuance of Business, Eff"ect. 
 
 Section 121. Seven (u- more persons, citizens of the United States, 
 and a majority of whom are citizens of this State, who desire to 
 form a fraternal beneficiary association, as defined by this act, 
 may make and sign — giving their addresses — and acknowledge be- 
 fore some officer competent to take acknowlcdgnu'nt of deeds, arti- 
 cles of association in which shall be stated: 
 
 First — The proposed corporate name of the association, which
 
 500 FRATERNAL SOCIETY LAW 
 
 shall not so closely resemble the name of any association or insurance 
 company already transacting business in this State as to mislead 
 the public or lead to confusion. 
 
 Second — The purpose for which it is formed — which shall not 
 include more liberal powers than are granted by thife act, provided 
 that any lawful social, intellectual, educational, moral or religious 
 advantages may be set forth among the purposes of the association — 
 and the mode in which its corporate powers are to be exercised. 
 
 Third — The names, residences and official titles of all the officers, 
 trustees, directors, or other persons who are to have and exercise 
 the general control and management of the aifairs and funds of the 
 association for the first year or until the ensuing election, at which 
 all such officers shall be elected by the supreme legislative or govern- 
 ing body. 
 
 Such articles of association and duly certified copies of the consti- 
 tution and laws, rules and regulations, and copies of all proposed 
 foi'ms of benefit, certificates, applications therefore and literature 
 to be issued by such association, and ;i bond in the sum of $5,000 
 with sureties approved by the insurance commissioner, conditioned 
 upon the return of the advanced payments, as provided in this 
 section, to applicants, if the organization is not completed within one 
 year, or after such further period, not exceeding one year, as may be 
 authorized by the insurance commissioner, shall be filed with the in- 
 surance commissioner, who may require such further information as 
 he deems necessary, and if the purposes of the association conform to 
 the requirements of this act and all provisions of law have been 
 complied with, the insurance commissioner shall so certify and retain 
 and record the articles of association in a book kept for the purpose 
 and furnish the incorporators a preliminai'y certificate authorizing 
 said association to solicit members as hereiiuifter provided. 
 
 Upon receipt of said certificate from the insurance commissioner 
 said association may solicit members for the purpose of completing 
 its organization and shall collect from each applicant the amount of 
 not less than one death benefit assessment or payment, in accordance 
 with its tables of rates, as provided by its constitution and laws, and 
 shall issue to each such apjilicant a receipt for the amount so col- 
 liM'icd. Hilt no such Mssoeiatiim shall incur an\' linbilitv otliiT than
 
 THE ^TATh: OF I^l-NNEHOTA 501 
 
 for such jiiiv.-iiircd |),i\'iiiciit.s nor issue ;iiiy benefit, certificjile, nor 
 p<iy or allow, or olfer a promise to pay or allow to any person any 
 death or disability benefit until actual bona fide applications for 
 death benefit certificates have been secured upon at least five hun- 
 (li'ed lives for at least $1,000 each and all such applicants for death 
 benefits shall have been regularly examined by legally qualified xjrae- 
 ticiiiu' i)hysicians and certificates of such examinations have been 
 iliily filed and ap])roved by the chief medical examiner of such asso- 
 ciation, nor until there shall be established ten subordinate lodges 
 or branches into which said five hundred applicants have been 
 initiated, nor until there has been submitted to the insurance com- 
 missioner, under oath of the president and secretary or correspond- 
 ing officers of such association, a list of such applicants, giving their 
 names, addresses, date examined, date approved, date initiated, name 
 and number of the subordinate branch of which each applicant is 
 a membei-. amount of benefits to be granted, ra1?e of regular pay- 
 ments or assessments, which shall not l)e lower for death benefits 
 than those required by the national fraternal congress table of mor- 
 tality with interest at 4 per cent per annum ; nor until it sliall be 
 shown to the insurance commissioner by the sworn statement of the 
 treasurer or corresponding officer of such association that at least 
 five hundred applicants have each paid in cash at least one reg- 
 ular monthly payment or assessment as herein provided per $1,000 
 of indemnity to be affected, which payments in the aggregate shall 
 amount to at least $2,500, all of which shall be credited to the 
 mortuary or disability fund on account of such applicants and no 
 part of which may be used for expenses. 
 
 Said advanced payments shall during the period of organization 
 be held in trust for and, if the organization is not completed within 
 one .vear as hereinafter provided, returned to said applicants. 
 
 The insurance commissioner may make such examination and 
 require such further information as he deems advisable, and upon 
 presentation of satisfactorj- evidence that the association has com- 
 plied with all the provisions of the law he shall issue to such 
 association a certificate to that effect. Such certificate shall be 
 prima facie evidence of the existence of such association at the 
 date of such certificate. The insurance commissioner shall cause
 
 502 FRATERNAL SOCIETY LAW 
 
 a record of such certificate to be made and a certified copy of 
 such record may be given in evidence with like effect as the original 
 certificate. 
 
 No preliminarj^ certificate granted under the provisions of this 
 section shall be valid after one year from its date, or after such fur- 
 ther period, not exceeding one year as may be authoi-ized by the 
 insurance commissioner upon cause shown, unless the 500 appli- 
 cants herein required have been secured and the organization has 
 been completed as herein provided, and the articles of association 
 and all proceedings thereunder shall become ni^ll and void in one 
 year from the date of said preliminary certificate, or at the expira- 
 tion of said extended period, unless such association shall have 
 completed its organization and commenced business as herein pro- 
 vided. When any domestic a.ssociation shall have discontinued busi- 
 ness for the period of one year, its charter shall become null and 
 void. ('07 c. 345 s. 13.) 
 
 Existing Associations May Come Under This Act. 
 
 Section 122. Any domestic association now engaged in trans- 
 acting- business in this State, may exercise, after the passage of 
 this act, all of the rights conferred thereby, and in addition thereto 
 may exercise all of the rights, powers and pi-ivileges now exercised 
 or possessed by it under its charter or articles of association not 
 inconsistent with this act or it may be re-incorporated hereunder. 
 But no such association alreadj' organized, shall be required to re- 
 incorporate hereunder, nor shall it be required to adopt the rates 
 precribed herein for new associations, in order to avail itself of 
 the privileges of this act, and any such association may amend 
 its articles of association from time to time in the manner provided 
 therein, or in its constitution or laws, and all such amendments 
 shall be filed with the insurance commissioner and shall become 
 operative upon such filing unless a later time be provided in such 
 amendments, or in its articles of association, constitution or laws. 
 ('07 c. 345 s. 14.)
 
 THE STATE OF MINNESOTA 503 
 
 Membership — How Transferred to Another Association. 
 
 Section 123. No domestic association shall transfer its member- 
 ship or funds to any association not authorized by tlie insurance 
 commissioner to transact business in this State; nor shall any such 
 association transfer it membership or funds to any licensed asso- 
 ciation, unless the said contract to transfer has been approved by 
 a two-thirds vote of the member.s of the supreme bod,y of the asso- 
 ciation whose membership is proposed to be transferred ; and by 
 a two-thirds vote of the trustees or board having charge of the 
 association proposing to take such membership. ('07 c. 34.5 s. 1-5.) 
 
 Foreign Associations Continued — Licenses to be Renewed Annu- 
 ally. 
 
 Section 124. Foreign associations which are now authorized to 
 transact business in this State may continue such business until 
 the first day of March next, succeeding the passage of this act, 
 and the. authority of such associations ma.y thereafter be renewed 
 annually, but in all cases to terminate on the first day of the 
 succeeding March. For -each such license or renewal, the asso- 
 ciation shall pay the insurance commissioner .$10. A duly cer- 
 tified copy of such license shall be prima facie evidence that the 
 licensee is a fraternal beneficiary association within the meaning 
 of this act. ('07 c. 345 s. 16.) 
 
 Foreign Associations — How Admitted to do Business in This State. 
 
 Section 125. No foreign association which is not now authorized 
 to transact business in this State shall transact any business herein 
 without a license from the insurance commissioner. Before receiv- 
 ing such license it shall file with the insurance commissioner a duly 
 certified copy of its charter or articles of association; a copy of 
 its constitution and laws, certified by its secretary or corresponding 
 officer; a power of attorney to the insurance commissioner as here- 
 after provided ; a statement under oath of its president and secre- 
 tary or corresponding officers in the form required by the insur- 
 ance commissioner duly verified by an examination made by the
 
 504 FRATERNAL SOCIETY LAW 
 
 supervising insurance official of its home State of the business for 
 the preceding year; a copy of its contract, which must show that 
 benefits are provided for by assessments upon or other payments 
 by persons holding similar contracts and shall furnish the insur- 
 ance commissioner with such other information as he may deem 
 necessary to a proper exhibit of its business and plan of working 
 and if he finds that it is transacting business in accordance with 
 the provisions of this act; that, its assets are invested in accord- 
 ance with the laws of the State where it is organized; and that 
 it has the membership and qualifications organized under this act, 
 he may license such association to do business in this State until 
 the first day of the succeeding March and such license may be 
 renewed annually, but in all cases to terminate on the first day of 
 the succeeding ilarch. ('07 c. 345 s. 17.) 
 
 Licenses — Refusal or Revocation — Appeal — Hearing — Procedure — 
 Existing Contracts. 
 
 Section 126. When the insurance commissioner refuses to license 
 any association, or revokes its authority to do business in this State, 
 he shall reduce his ruling, order or decision to writing and file the 
 same in his office, and shall furnish a copy thereof, together with a 
 statement of his reasons, to the officers of the association, upon 
 request. Any society affected by any such ruling, order or decision 
 shall have the right to aj^peal to the district court of Ramsey county 
 in this State by filing with said commissioner its notice of such 
 appeal in writing, and in such case, said commissioner shall forth- 
 with and within ten days thereafter, deliver to such association 
 a full and certified transcript of all proceedings had before him 
 in said matter, including all applications, together with all orders, 
 rulings and decisions had thereon and on such transcript being 
 filed in said court, such court shall be fully possessed of said action, 
 and ;i full ti-ial im the merits de novo, shall be had thereon and 
 upon such hearing the findings of fact on which such order is 
 based shall be prima facie evidence of the matters therein settled; 
 provided further, that said appeal shall be filed in such court within 
 forty days after the rendition of the ruling, order or decision ap-
 
 THE STATE OF MINNESOTA 505 
 
 pealed from; and provided furthei', that nothing herein or in this 
 act contained shall be taken or construed as preventing any such 
 association from continuing in good faith all contracts made in 
 this State during the time such association was legally authorized 
 to transact business therein. ('07 c. 345 s. 18.) 
 
 Foreign Associations to Appoint Commissioner Attorney to Accept 
 Service — Service and Its Effect — Fee — Duties of Commissioner. 
 
 Section 127. Every foreign association now transacting business 
 in this State shall within thirty days after the passage of this act 
 and every such association hereafter applying for admission, shall, 
 before being licensed, appoint in writing the insurance commissioner 
 and his successors in office to be its true and lawful attorney, 
 upon whom all legal process in any action or proceeding against it 
 shall be served and in such writing shall agree that any lawful 
 process against it, which is served upon such attorney shall be 
 of the same legal force and validity as if served upon the asso- 
 ciation, and that the authority shall continue in force so long as 
 any liability remains outstanding in this State. 
 
 Copies of such appointment, certified by said insurance commis- 
 sioner, shall be deemed sufficient evidence thereof and shall be 
 admitted in evidence with the same force and effect as the original 
 thereof might be admitted. Service may only be made upon sucli 
 attorney, must be made in duplicate and shall be deemed sufficient 
 service upon such association ; provided, however, that no such 
 service shall be valid or binding against any such association when 
 it is required thereunder to file its answer, pleading or defense in 
 less than thirty days after the date of such service. When legal 
 process against any such association is served upon said insurance 
 commissioner, he shall forthwith forward by registered mail one of 
 the duplicate copies, prepaid and directed to its secretary or corres- 
 ponding officer. The plaintiff in such process so served shall pay 
 to the insurance commissioner for the use of the State at the 
 time of such service a fee of $2, which shall be recovered by him 
 as part of the taxable costs, if he prevails in the suit. ( '07 c. 345 
 s. 19.)
 
 506 FRATERNAL SOCIETY LAW 
 
 Meetings — Where Held — Principal Office. 
 
 Section 128. Any domestic association may provide that the meet- 
 ings of its legislative or governing body may be held in any State, 
 district, province, or territory wherein such association has sub- 
 ordinate branches, and all business transacted at such meetings 
 shall be as valid in all respects as if such meetings were held in 
 this State. But its principal office shall be located in this State. 
 ('07 c. 345 s. 20.) 
 
 Constitution and Laws May Prevent Subordinate Bodies From Waiv- 
 ing Provisions Thereof. 
 
 Section 129. The constitution and laws of the association may 
 provide that no subordinate liody, nor any of the officers or mem- 
 bers of such subordinate body, shall have the power or authority 
 to waive any of the provisions of the laws and constitution of the 
 association, and the same shall be binding on the association and 
 each and every member thereof. ('07 c. 345 s. 21.) 
 
 Copies of Amendments to Constitution, Etc., to be Filed — Evidence. 
 
 Section 130. Every association transacting business under this 
 act shall file with the insurance commissioner a duh^ certified copy 
 of all amendments of or additions to its constitution and laws 
 within ninety days after the enactment of the same. Printed copies 
 of the constitution and laws and of additions or amendments thereto, 
 certified by the secretary- or corresponding officer of the association 
 shall be prima facie evidence of the legal adoption thereof. ( '07 
 c. 345 s. 22.) 
 
 Annual Statement. 
 
 Section ^'■i^. Every association transacting business in this State, 
 shall annually on or before the fifteenth day of February file v/ith 
 the insuraiu-e commissioner in such form as he may require, a 
 statement under oath of its president and secretary, or correspond- 
 ing officers of its condition and standing on the thirty-first day of
 
 THE HTATE OF MINNK,'<OTA 507 
 
 Decciiilx'i- next preceding and of its transactions lur the \c;ir ending 
 on that date, and shall, also, furnish such other information as 
 the insurance commissioner may deem necessary to a proper exhibit 
 of its business and plan of working. The insurance commissioner 
 m;iy at other times require any further statement he may deem 
 necessary to be made relating to sucli associations. ('07 c. 345 s. 
 23.) 
 
 Domestic Associations — Examinations — Procedure to Wind Up — 
 Duties of Commissioner and Attorney General — Order to Show 
 Cause, Etc. 
 
 Section 132. The insurance commissioner, or any person he may 
 appoint, shall have the power of visitation and examination into 
 the affairs of any domestic association. He may employ assistants 
 for the jiurposes of such examination and he, or any person he may 
 appoint, shall have free access to any books, papers and documents 
 that relate to the business of the association and may summon and 
 qualify as witnesses under oath and examine its officers, agents and 
 employes or other persons in relation to the affairs, transactions 
 and condition of the association. 
 
 Whenever after examination the insurance commissioner is sat- 
 isfied that any domestic association has failed to comply with any 
 provisions of this law or is exceeding its powers, or is not carry- 
 ing out its contracts in good faith ; or is transacting business fraud- 
 ulently or is in siieh condition as to render further proceedings 
 hazardoiis to the pul)lic or its certificate holders; or whenever any 
 domestic association, after being in existence one year or more and 
 one year from the passage of this act shall have a membership of 
 less than 300, or votes to discontinue business, the insurance com- 
 missioner may present the facts relating thereto to the attorney 
 general, who shall, if he deem the circumstances warrant, commence 
 an action in quo warranto in a court of competent jurisdiction and 
 such court shall thereupon notify the officers of such association of 
 a hearing, and, unless it shall then appear that some special and 
 good reason exists why such association should not be closed, said 
 association shall be enjoined from carrying on any further business,
 
 508 FRATERNAL SOCIETY LAW 
 
 and some person shall be appointed receiver of such association 
 and shall proceed at once to take possession of the books, papers, 
 moneys, and other assets of the association and shall forthwith, 
 under the direction of the court, proceed to close the affairs of the 
 association and to distribute its funds to those entitled thereto. No 
 such proceedings shall be commenced by the attorney general 
 against any such association until after notice has been duly served 
 on the chief executive officers of the association and a reasonable 
 opportunity given to it on a date to be named in said notice to 
 show cause why such proceedings should not be commenced. ('07 
 c. 345 s. 24.) 
 
 Certain Proceedings to be Instituted by Attorney General Only. 
 
 Section 133. No action or proceedings to discontinue or enjoin, 
 in whole or in part, the business or methods of any such domestic 
 association, or to appoint a receiver therefor, or to dissolve the 
 same, or in any manner affecting its corporate rights, except for 
 failure to pay final .judgment, or to oust any foreign association or 
 enjoin it from transacting business in this State, shall be enter- 
 tained by any court, except on the suit of the attorney general 
 of this State. ( '07 c. 345 s. 25.) 
 
 Foreign Associations — Examinations — Revocation of License — Ap- 
 peal — Procedure. 
 
 Section 134. The insurance commissioner, or any person whom 
 he may appoint, may examine any foreign association transacting 
 or applying for admission to transact business in this State. The 
 insurance commissioner may employ assi-stants for the purj^ose of 
 such examination and lie, or any person he may appoint, shall 
 have free access to all the books, papers and documents that relate 
 to the business of the association and may summon and qualify 
 as witnesses under oath and examine its officers, agents, emploj'es 
 and other persons in relation to the affairs, transactions and con- 
 dition of the association. He may in his discretion accept in lieu 
 of such examination the examination of the insurance department
 
 THE UTA'JE OF MiyyEHOTA 5O9 
 
 of the State, territory, district, province or country where such asso- 
 ciation is organized. 
 
 If any such association or its officers refuse to submit to such 
 examination or to comply with tlie provisions of this section rela- 
 ting thereto, or if upon such examination the insurance commissioner 
 on investigation is satisfied that any foreign association transacting 
 business under this act has exceeded its powers, or has failed to 
 comply with the provisions of the law, or is conducting business 
 fraudulently, or is not carrying out its contracts in good faith, or 
 is in such condition as to render further proceedings hazardous 
 to the |»ublic or its certificate holders, he may by a written order 
 or decision, filed in his office, revoke the license of such association 
 to do business in this State, subject to an appeal by such asso- 
 ciation as provided by and in accordance with the provisions of 
 section 18 (126 of this code) of this act, and upon any such aj)peal 
 all the provisions of said section 18 (126 of this code) shall apply 
 thereto. No 'such license shall be revoked by the insurance com- 
 missioner until after notice has been duly served on the chief 
 executive officers of the association and a reasonable opportunity 
 given to it on a date to be named in said notice to show cause 
 why such license should not be revoked. ('07 e. 345 s. 26.) 
 
 Expenses of Examinations. 
 
 Section 135. The necessary expenses of any examination made 
 by the insurance commissioner, pursuant to the provisions of this 
 act, of any association herein authorized, shall be paid by such 
 association ; Inxt no per diem shall be paid to or on account of any 
 regular salaried member of the insurance department, nor a per 
 diem of more than $10 to any other person, ('07 c, 345 s. 27.) 
 
 Certain Bodies Included and Others Excluded From the Provisions 
 of this Act. 
 
 Section 136. Nothing contained in this act shall be construed 
 to affect or apply to grand or subordinate lodges of Masons, Odd 
 Fellows, Elks or Knights of Pythias — exclusive of the insurance
 
 510 FRATERNAL SOCIETY LAW 
 
 braucli of the supreme lodge Knights of Pythias — or to simihir 
 orders which do not issue insurance certificates, nor to local lodges 
 of an association now doing business in this State, that provide 
 death benefits not exceeding $300 to any one person, or disability 
 benefits not exceeding $300 in any one year to any one person, or 
 both ; nor to any contracts of reinsurance of or between such local 
 lodges of such associations now doing business on such plan in 
 this State, nor to domestic associations which limit their member- 
 ship to the employees of a particular city or town designated 
 firm, business house or corporation ; nor to domestic lodges, orders 
 or associations of a purely religious, charitable and benevolent de- 
 scription, which do not operate with a view to profit and which 
 do not provide for a death benefit of more than $100, or for dis- 
 ability benefits of more than $150 to any one person in any one 
 year, provided always, that any such domestic order or association 
 which has more than 500 members, and provides for death or dis- 
 ability benefits and any such domestic lodge, order or association 
 which issues to any person a certificate providing for the payment 
 of benefits, shall not be exempt by the provisions of this section, 
 but shall comply with all the requirements of this act. The insur- 
 ance commissioner may require from any association such infor- 
 mation as will enable him to determine whether such association 
 is exempt from the provisions of this act. No association which 
 is exempt by the provisions of this section from the requirements 
 of this act, shall give or allow or promise to give or allow to any 
 person, any compensation for procuring new members. ('07 c. 345 
 s. 28.) 
 
 Violations of Act — Penalties. 
 
 Section 137. Any person, otfieer, member or examining physieiiiu. 
 who .shall knowingly or wilfullymake any false or fraudulent state- 
 ment or representation in or with reference to any application 
 for membership or for the purpose of obtaining money from or 
 benefit in any association transacting business under this act, shall 
 be guilty of a misdemeanor and upon conviction thereof, shall be 
 punished by a fine of not more than .$100. or imprisonment in the
 
 THE tiTATE OF AJlSM'mOTA 511 
 
 county jail for not more than ninety days, in the discretion of the 
 court, and any person who shall wilfnlly make a false statement 
 of Miiy material fact or thiiiy in a sworn statement as to the death 
 or disability of a certificate holder in any sneli association, for tiie 
 purpose of procuring payment of a benefit named in the certificate 
 of such holder, and any person who shall wilfidly make any false 
 statement in any verified report or declaration under oath required 
 or authorized by this act, shall be guilty of perjury, and shall be 
 proceeded against and punished as provided by the statutes of this 
 State in relation to the crime of perjury. 
 
 An\- person who shall solicit membershij) for, or in any manner 
 assist in procuring membership in, any association not licensed to 
 do l)usiness in this State; or who shall solicit membership for, 
 or in any manner assist in procuring membership in, any such 
 association not authorized as herein provided, to do business as 
 herein defined in this State, shall be guiltj- of a misdemeanor, and 
 upon conviction thereof, shall be punished by a fine of not more 
 than $100. 
 
 Any association, or any oiificer, agent or employee thereof, neg- 
 lecting or refusing to comply with, or violating any of the pro- 
 visions of this act, the penalty for which neglect, refusal or vio- 
 lation is not specified in this section, shall be fined not exceeding 
 $100 upon conviction thereof. ('07 c. 345 s. 29.) 
 
 Definitions — Deputy Insurance Commissioner to Act — When. 
 
 Section 138. The word "association" as used in this act shall 
 be taken and construed as meaning a fraternal beneficiary cor- 
 poration, society, order or voluntary association as defined in this 
 act. The words "domestic association" shall be taken and con- 
 strued as meaning an association organized or incorporated under 
 the laws of this State. The words "foreign association" shall be 
 taken and construed as meaning an association organized or in- 
 corporated under the laws of another territory, district. State, prov- 
 ince or country. The word "State," as used in this act, shall be 
 taken and construed as meaning "State," "territory," "district," 
 "countrj^" or "province." All provisions of each section of this
 
 512 FRATERNAL SOCIETY LAW 
 
 act except as otherwise provided, shall be taken and construed 
 as applying to both domestic and foreign associations. 
 
 In the event of a vacancy in the office of the insurance commis- 
 sioner or iu the absence or disability of that officer the deputy 
 insurance commissioner shall perfoi-m all the duties required of 
 the insurance commissioner by this act. ( '07 c. 345 s. 30.) 
 
 Valuations of Benefit Certificates. 
 
 Section 139. Nothing contained in this act shall be construed 
 to require any society to make or cause to be made any valuation 
 of its benefit certificates for any pui-pose whatsoever, nor shall 
 the insurance depai'tment have the right to require or demand 
 that such valuation be made or embraced iu the report of any 
 fraternal beueficiar.y society to the insurauce department; nor shall 
 any valuation of the certificates of any association, if made by the 
 insurance department, be published unless upon request of such 
 association. ( '07 e. 345 s. 31.) 
 
 Insolvency. 
 
 Section 140. In case any such company is adjudged insolvent, 
 the balauoe of its reserve fund, if any, after payment of claims and 
 other indebtedness, shall be paid to the commissioner, and by him 
 paid into the State treasury. (R. S. '05 s. 1704.) 
 
 The following two Sections of Chapter 58, Revised Laws, 1905, 
 of Minnesota are pertinent to the subject matter of this chapter. 
 
 Terms Defined. 
 
 Section 2839. The term "private corporation." as used in this 
 chapter, shall include every company, association, or body endowed 
 by law with any corporate power or function whatsoever, except 
 such as are formed solely for public and governmental purposes, 
 which shall be deemed public corporations. And, when not other- 
 wise indicated by the context, the word "corporation" shall mean 
 a private corporation. The term "certificate of incorporation." 
 whenever used iti this chapter in reference to corporations formed
 
 THE HTATE OF MINNESOTA 513 
 
 pricir to the taking effect of the Revised Laws, shall be construed 
 as meaning articles of incorporation. 
 
 Domestic and Foreign Corporations Defined. 
 
 ►Section 2840. The term ''domestic corporation" sliall mean every 
 corporation organized under the laws of this State, and the term 
 "foreign corporation" shall mean every other corporation. 
 
 Chapter 318 Revised Laws of 1907 of Minnesota relates to "Co- 
 operative Life and Casualty Companies" and the last Section of 
 said Chapter reads viz. : 
 
 Fraternal Beneficiary Associations Not Affected. 
 
 Section 107. The provisions of this act shall not apply to fra- 
 ternal beneficiary associations nor shall anything herein be con- 
 strued as governing or in anywise regulating such associations. ( '07 
 c. 318 s. 12.) 
 
 The following Section of the General Insurance Laws in express 
 terms applies to Fraternal Societies: 
 
 Political Contributions Prohibited — Penalties — Evidence — Immu- 
 nity. 
 
 Section 64. No insurance company or association, including fra- 
 ternal beneficiary associations, doing business in this State, shall 
 directly or indirectly pay or use or offer, consent or agree to pay 
 or use any money or property for or in aid of any political party, 
 committee or organization, or for or in aid of any corporation, 
 joint stock or other association organized or maintained for political 
 purposes, or for or in aid of any candidate for political office, or 
 for nomination for such office, or for any political purpose what- 
 soever, or for reimbursement or indemnification of any person for 
 money or property so used. Any ofScer, director, stockholder, at- 
 torney or agent of any corporation or association which violates 
 any of the provisions of this act, who participates in, aids, abets, 
 or advises or consents to any such violation, and any person who 
 solicits or knowingly receives any money or property in violation 
 33
 
 514 FRATERNAL SOCIETY LAW 
 
 of this act, shall be guilty of a gross misdemeanor and any officer 
 aiding or abetting in any contribution made in violation of this 
 act, shall be liable to the company or association for the amoimt 
 so contributed. 
 
 No person shall be excused from attending and testifying, or 
 producing any books, papers or other documents before any court 
 or magistrate, upon any investigation, proceeding or trial, for a 
 Tiolation of any of the provisions of this act, upon the ground or 
 for the reason that the testimony or evidence, documentary or 
 otherwise, required of him may tend to incriminate or degrade 
 him; but no person shall be prosecuted or subjected to any penalty 
 or forfeiture for or on account of any transaction, matter or thing, 
 concerning which he may so testify or produce evidence, docu- 
 mentary or otherwise, and no testimony so given or produced shall 
 be used against him upon any criminal investigation or proceed- 
 ing. ('07 c. 42.) 
 
 Section 48 of the Insurance Laws Edition 1907 requires Life 
 Companies to file in the State Insurance Department annual state- 
 ments, but the last paragraph contains an exemption in favor of 
 Fraternal Societies in the following language : 
 
 "No company or agent thereof shall transact any new business 
 in this State after March 1 in any year unless it shall have pre- 
 viously transmitted such statement to the commissioner; but no 
 fraternal beneficiary association, nor any social corporation paying 
 only "sick benefits" not exceeding two hundred and fifty dollars 
 in any one year, or "funeral benefits," or aiding those dependent 
 on a member not more than three hundred and fifty dollars, nor 
 any subordinate lodge or council which it, or whose members are, 
 assessed for benefits which are payable by a grand body, shall 
 be required to make such statement." (R. L. '05 s. 1618 as amended 
 by '07 c. 11 s. 1; Sec. 2 of Ch. 11 '07 repealed '05 c. 248.) 
 
 Fraternal Societies Cannot Pay Dividends or Endowments. 
 
 A fi-iiternal society executed contracts by which it agreed to pay 
 to members diiriiig their lifetime certain cash lienefits, the Court 
 said:
 
 THE UTATK Ob' MINNESOTA 515 
 
 "An association that agrees to \);\y diviilcnils or niatnrctl licnefits 
 to its livinp: nieniliors who are not nnder disability is to that extent 
 not doinsi- a tViitei'iinl henelil Imsiness and is not entitled 1o the con- 
 sideration shown by our laws to beneticiaries and to i'r-aternai asso- 
 ciations. It does not protect those who in^ed proteclion oi' benefit 
 those who ha\'e h)st the sujjport of father, hnsband or brolliei-. 11 is 
 a speculation or investment, the profits of which, if any there be, 
 accrue to the member himself. If the plaintiff wi.shes to do that kind 
 of business in this State, it must not masquerade as a fraternal bene- 
 ficiary association. ' ' 
 - The Court cites in support of its conclusion, the following cases: 
 
 State vs. Orear. 144 Mo. 157; 4.5 S. W. 1081; 
 
 Calkins vs. Bump. 79 N. W. 491; 120 Mich. 335; 
 
 Association vs. Hunt. 127 111. 257; 20 N. B. 55; 
 
 Rockhold vs. Masonic Society, 129 HI. 440: 21 N. E. 794; 2 L. R. A. 
 
 420; 
 Order of International Fraternal Alliance vs. State, 77 Md. 547; 26 
 
 Atl. 1040; 
 Dishong vs. Iowa Co.. 92 Iowa, lfi3; (iO N. W. 505. 
 
 The case at bar was one arising from the denial of a license by the 
 Insurance Commissioner to a fraternal society organized in New 
 
 York to do business wilhin fhe State of ilimipsota. 
 
 National Protective Legion vs. O'Brien, Insurance Commissioner^ 
 Supreme Court of Minnesota, July, 1907, 112 N. W. 1050. 
 
 Fraternal Societies Cannot Issue Endowment Contracts. 
 
 The fraternal beneficiary act of Minnesota is construed in a well 
 considered case in which it is held that fraternal societies are not 
 
 permitted to sell endowment contracts. 
 
 National Protective Legion vs. O'Brien, Insurance Commissioner, 
 Supreme Court of Minnesota, July, 1907. 112 N. W. 1050. 
 
 Deliberate Suicide by Drugs. 
 
 One who intentionall v fakes his own life hv admiin'stering to him- 

 
 516 FRATERNAL SOCIETY LAW 
 
 self a poisonous drug being of sufficient mental capacity to compre- 
 hend the nature and consequences of the act, commits deliberate 
 suicide. The provision in the contract excepted death through 
 "deliberate suicide." 
 
 Zearfoss vs. Switchmen's Union of N. A., Supreme Court of Minne- 
 sota, July, 1907, 112 N. W. 1044. 
 
 Statements of Members as to Age Competent to Prove True Age. 
 
 Declarations and admissions of the insured, since deceased, respect- 
 ing the date of his birth, are admissible against the beneficiary in an 
 action to recover upon the benefit certificate, where the defense is 
 false representation in the application for membership, and which 
 application is made the basis of the issuance of the certificate. 
 
 Taylor vs. Grand Lodge A. 0. U. W., May 10th, 1907, 101 Minn. 72; 
 111 N. W. 919. 
 
 Statement as to Age — Previous Applications to Other Societies Ad- 
 missible. 
 
 Where the laws of a society make the application the basis for 
 the insurance, a prior application for insurance in another company 
 is admissible in evidence against the beneficiary in an action to 
 recover where the defense is misrepresentation as to the age of the 
 applicant at tlie time of making the apjilication. 
 
 Taylor vs. Grand Lodge A. O. U. W., May 10th, 1907, 101 Minn. 72; 
 111 N. W. 919. 
 
 Conditions Precedent, Applications and Examinations. 
 
 Courts will take judicial notice of the fact that life insurance com- 
 panies require as a condition precedent to the issuance of a benefit 
 certificate a properly executed application and medicMl examination 
 of the Mpjiliciint. which is ;i iinironii iind generally known cnstoiii. 
 
 Taylor vs. Grand Lodge A. 0. U. W.. May 10th, 1907. 101 Minn. 72; 
 111 N. W. 919.
 
 THE STATE OF MINNESOTA 517 
 
 After-enacted Laws — Resort to Civil Courts. 
 
 Whero the member in his application agrees to be boiind l)y the 
 laws of the society, a by-law prohil)itin<i resort to the courts before 
 exhausting the provided remedies williin the society itself, if rea- 
 sonable, are valid and binding nj)oii the iriembers . 
 
 Lindahl vs. Supreme Court I. 0. F., .Ian. 25th. 1907, 100 Minn. 87; 
 110 N. W. 358. 
 
 After-enacted Laws — Unreasonable Requirements as to Resort to 
 Civil Courts. 
 
 Where the by-laws of a society required the members to exhaust 
 the remedies [>rovided within the society, before resorting to the 
 courts to enforce their claims, and where the compliance with these 
 by-laws would postpone the ultimate disposition of the member's 
 claim, which accrued in ]\Iarch, 1905, to the meeting of the supreme 
 order, in 1908, it was held that the by-laws were unreasonable, and 
 need not have been complied with in order to sustain an action in 
 the civil courts. 
 
 Lindahl vs. Supreme Court I. O. F., Jan. 25th, 1907, 100 Minn. 87; 
 110 N. W. 358. 
 
 Suicide — Presumptions. 
 
 The presumption of hnv is against suicide, and the burden is upon 
 the defendant to establish it. 
 
 Lindahl vs. Supreme Court I. 0. F., Jan. 25th, 1907, 100 Minn. 87; 
 110 N. W. 358. 
 
 Suicide — Circumstantial Evidence. 
 
 Where the evidence relied upon by the defendant is circumstantial, 
 the facts presented must be of such a character as to exclude any rea- 
 sonable hypothesis that the death was natural or accidental. 
 
 Lindahl vs. Supreme Court 1. O. F„ Jan. 25th, 1907. 100 Minn. 87; 
 110 N. W. 358.
 
 52g FRATERNAL SOCIETY LAW 
 
 After-enacted Laws— Suicide— Unreasonable Provisions. 
 
 On October 3rd, 1901, the defendant society issued a benefit certifi- 
 cate to a member, who in his application agreed to be bound by the 
 laws of the order "now in force or hereafter enacted." A by-law in 
 force at the time of the application provided that benefits should not 
 be paid upon certificates of members committing suicide, unless the 
 member was under medical treatment for insanity; but. in lieu 
 thereof, the amounts paid by the deceased member should be re- 
 turned to his beneficiary. In July, 1903, the society adopted a new 
 by-law. providing that in the event that the member committed sui- 
 cide, that his beneficiary should receive 5% of the face of the cer- 
 tificate for each year he had continuously been a member of the so- 
 ciety. The member committed suicide on May 21st, 1904, while 
 under medical treatment for insanity. The court held that the 
 change in the bj^-laws was unreasonable, and therefore, void. 
 
 Olson et al. vs. Court of Honor, Feb. 1st, 1907, 100 Minn. 117; 110 
 N. W. 374. 
 
 Physicians Testifying — Waiver of Exemptions. 
 
 A statute providing that a physician, without the consent of his 
 patient cannot be examined in a civil action as to any information 
 acquired in attending the patient, was held to be for the benefit of 
 the patient, which benefit may be waived by a member in his appli- 
 cation for nu-mbership. 
 
 Olson et al. vs. Court of Honor, Feb. 1st, 1907, 100 Minn. 117; 110 
 N. W. 374. 
 
 Resort to Civil Courts. 
 
 Provisions in liic laws of a benefit society requiring members to 
 exhaust their remedy within the society before appealing to the 
 courts, will be strictl.v construed against the defendant atul liberally 
 in favor of claimants. 
 
 Carey vs. Switchmen's Union of N. A., May 4th, 190i;. 9S Minn. 28; 
 107 N. W. 129. 

 
 THE STATE OF MINNESOTA 519 
 
 Resort to Civil Courts — Unreasonable Provisions. 
 
 The defendant member was injured December 29th, 1902. He 
 duly presented his claim for sick benefits to the proper officers of the 
 ' society, and which was disallowed. He failed to comply with the 
 laws of the society by formally appealing to its next convention, 
 which met on May 3rd, 1903, but the pvideiiee showed that the of- 
 ficers of the society reported the claim to the convention, which 
 referred it to the committee on claims and appeals, which reported 
 back, recommending that action on the claim be postponed, and the 
 convention referred the claim back to the Grand Lodge for its 
 action, but which would not meet for two years, and that the plain- 
 tiff understood that his claim was being considered by the conven- 
 tion. The member brought suit October 5th, 1904. Held, that the 
 defense of non-compliance with the by-laws, in that the plaintiff did 
 not appeal to the convention, and thereby exhaust his remedies 
 within the society, was not a good defense. 
 
 Carey vs. Switchmen's Union of N. A., May 4tli, 1906, 98 Minn. 28; 
 107 N. W. 129. 
 
 New Trial — New Evidence Must Be Such as to Probably Change 
 Result. 
 
 Before sustaining a motion for a new trial, on the ground of newly 
 discovered evidence, it is not enough to consider whether the new 
 evidence is material, it must also be important, and of such a char- 
 acter that taken in connection with the evidence already before the 
 Court, will materially effect the result upon another trial. 
 
 Bunker vs. United Order of Foresters, 97 Minn. 361; 107 N. W. 392, 
 Feb. 23, 1906. 
 
 Suicide While Insane. 
 
 The by-laws of the defendant society forfeited all benefits if the 
 "member shall commit suicide or self-destruction." The declaration 
 admitted suicide and averred insanity and mental irresponsibilitj'' ; 
 that the member had not the capacity to exercise reason, or to realize
 
 520 FRATERNAL SOCIETY LAW 
 
 the effect and conseqiu'nce of his act; that he was impelled to commit 
 suicide bj' an irresponsible insane impulse. Held, that if the evi- 
 dence sustained the allegations as to mental condition, and which 
 was a question for the juiy to determine, suicide was not a defense. 
 
 Bunker vs. United Order of Foresters, Feb. 23, 1906, 97 Minn. 361; 
 107 N. W. 392. 
 
 Warranties in the Application. 
 
 Where the court instructed the jury that the statements made by 
 the claimant in his application are warranties, it is competent for 
 the jury, in making tip its verdict to take into consideration admis- 
 sions of the oiScers of the defendant society as to the cause of the 
 death. 
 
 Ranta vs. Supreme Tent Knights of the Maccabees, March 30th, 1906, 
 97 Minn. 454; 107 N. W. 156. 
 
 Errors on Appeal. 
 
 The defendant society can raise only such errors as were excepted 
 to in the trial court autl covered by its assignment of errors vtpon 
 appeal. 
 
 Ranta vs. Supreme Tent Knights of the Maccabees, March 30th, 1906 
 97 Minn. 454; 107 N. W. 156. 
 
 Warranties — Construction of. 
 
 A contract warranting the truth of the applicant's statements is 
 binding upon the parties, and a failure of the truth of warranties 
 avoids the beuefit certificate ; but the warranty must be a warranty 
 of fact, like the age of the applicant, and cannot apply to expert 
 opinion of matters based upon belief and good judgment, such as 
 the condition of his mother's health, which at best can only be an 
 honest judgment, if the evidence shows such statemeuts were made 
 in good faith, it will defeat a defense founded upon breach of war- 
 ranties.
 
 THE STATE OF MINNESOTA 521 
 
 Ranta vs. Supreme Tent Knights of the Maccabees, March 30th, 1906, 
 97 Minn. 454; 107 N. W. 156. 
 
 Warranty as to Age. 
 
 The laws of a society rcsti'ii-ted mi'mlii isliip to persons under 45 
 yeai's of age at the time of admission. In his application the member 
 certified that he was 44, and thMt if it should thereafter appear he 
 had made false statements in any particular, it should render his 
 benefit certificate null and void. The evidence showed that the mem- 
 bei' paid all his dues and assessments regularly from his admission 
 to the date of his death, but that at the time of making his applica- 
 tion he was 45 years of age. Held, that the plaintifi! could not re- 
 cover as the misstatement of the age was a material misrepresenta- 
 tion and increased the risk. 
 
 Taylor vs. Grand Lodge A. O. U. W., December 15th, 1905, 96 Minn. 
 441; 105 N. W. 40S. 
 
 Warranty — Void Contract Ab-initio. 
 
 Where the laws of a society restricted membership to persons 
 under 45 years of age, a benefit certificate issued to an applicant who 
 is 45 years of age, and who fraudulently represents in his application 
 that he is but 44, and who regularly pays his dues and assessments to 
 the time of his death, and where the society has no knowledge of his 
 fraud until proofs of death are received by it. it is held that the 
 applicant never became a member of the defendant society, and that 
 the certificate was null and void ab initio, and that the beneficiary 
 cannot recover. 
 
 Taylor vs. Grand Lodge A. O. U. W., December 15th, 1905, 96 Minn. 
 441; 105 N. W. 40S. 
 
 Void Contract — Payments Made Forfeited. 
 
 Where the laws of a society restricts membership to persons under 
 45 years of age, a benefit certificate is obtained fraudulently repre- 
 senting the member (applicant) within the restriction, and which
 
 522 
 
 FRATERNAL SOCIETY LAW 
 
 fraud is uot discovered by the society until proofs of death are re- 
 ceived, the society is under no legal obligation to return the dues 
 and assessments which had been paid by the deceased member in 
 order to sustain its defense that the contract was null and void. 
 
 Taylor vs. Grand Lodge A. O. U. W., December 15th, 1905, 96 Minn. 
 441; 105 N. W. 408. 
 
 No Waiver of Forfeiture by Negotiations. 
 
 The defendant society is not estopped from claiming that a benefit 
 certificate is null and void by reason of its having requested the 
 beneficiary to select an attorney at law to represent her in negotia- 
 tions for settlement of her claim. 
 
 Taylor vs. Grand Lodge A. 0. U. W., December 15th, 1905, 96 Minn. 
 441; 105 N. W. 408. 
 
 Change of Occupation — Forfeiture. 
 
 A provision contained in the certificate provided that if a member 
 should enter upon or follow any employment or occ\i])ation named 
 in a certain section of the by-laws then in force or as same might 
 thereafter be amended, that the certificate should become ips^o facto 
 void. At the time of the issuance of the certificate the member re- 
 ceiving same was a paper-hanger, and that was his occupation up to 
 within about five months before his death. Subsequently and up to 
 the time of his death he was a railroad freight brakeman and he was 
 killed while following that occupation. The society did not know, 
 until after his death, that he had engaged in the occupation of brake- 
 man. The Court held that the member's death having resulted from 
 one of the excepted causes for which it was stipulated that the society 
 should not bo liable, the beneficiary could not recover. 
 
 Abell vs. Modern "Woodmen, December, 1905, 96 Minn. 494; 105 N. W. 
 65. 
 
 Change of Beneficiary. 
 
 For the facts in the case where during a niciiilici-'s enfeebled con- 

 
 THE STATE OF MINNESOTA 523 
 
 dition by reason of his sickiipss and under the influence of a lirother 
 he chans'<^d his certificate, and the efi'ect of sueli cluinti-e, see the fol- 
 lowing: 
 
 Knauer vs. Grand Lodge A. O. U. W., June, 1905, 95 Minu. 518; 103 
 N. W. 1132. 
 
 Warranties — False Answers Defeat Contract. 
 
 Parties to an insurance contract ma\' by apt words make a fact 
 material whieli would otherwise be inunaterial and may make im- 
 material a fact which would otherwise be material. Where the 
 answers to questions in the application and in statements of 
 medical history are warranties there can be no recovery on the con- 
 tract if these answers are false. 
 
 Rupert vs. Supreme Court United Order of Foresters, February, 
 1905, 94 Minn. 293; 102 N. W. 715. 
 
 Who Are "Orphans." 
 
 As to who are orphans, the Court said in view of the particular 
 contract under consideration : 
 
 "It is apparent that the word 'orphans' was used therein in the 
 sense of children, and not \n the strict legal sense of orphans. A 
 child might cease to be an orphan within the strict meaning of the 
 law on arriving at his majority or by becoming married, but he 
 would never cease to be the child of his mother to whatever age he 
 might live." 
 
 Fischer vs. Malchow, December, 1904, 93 Minn. 396; 101 N. W. 602. 
 
 Suicide — Sane or Insane. 
 
 On the question of suicide the Supreme Conrt of Minnesota an- 
 nounces the law as follows : 
 
 1. Where the contract is silent upon the subject, the insurer is 
 liable in the event of suicide of the insured. 
 
 2. Where the contract provides against liability in general terms,
 
 524: FRATERNAL .SOCIETY LAW 
 
 in the event the member .suicides the insurer is not liable in the event 
 of intentional self-destruction wliile sane, but is liable if the insured 
 was insane. 
 
 3. "Where the contract provides against liability in the case of 
 suicide by either a sane or an insane person, such a provision is 
 binding upon the parties to the contract. 
 
 Robson vs. United Order of Foresters, July, 1904, 93 Minn 24; 100 
 N, W. 381. 
 
 Contract — What Composes Same. 
 
 The contract in a fraternal society is said to be deducible from 
 the application, the certificate, the by-laws and the answers of the 
 applicant to all questions contained in the medical examination in- 
 volving applicant's physical condition. 
 
 Robson vs. United Order of Foresters, July, 1904, 93 Minn. 24; 100 
 N, W. 381. 
 
 Warranties — Waiver — Agent's Knowledge Not Imputed. 
 
 A society prohibited the admission of bar-tenders and others en- 
 gaged in the business of selling intoxicating liquors and made such 
 persons ineligible to membership. An application was taken from a 
 person who was following one of the occupations prohibited, and the 
 application did not show correctly the occupation of the ap|)l leant. 
 It was claimed that the agent who filled out the application failed to 
 record therein the whole truth respecting said occupation, and in- 
 serted therein, in answer to the proper question, the statement tliat 
 the api)licaut was a painter by occupation. It was held that if the 
 applicant knew of the untruthful answers, the contract would be 
 void notwithstanding the fact that the agent may have known the 
 true facts in the case: ami that the test in determining whether 
 questions contained in an application are material is did the knowl- 
 edge or ignorance of the facts sought to be elicited thereby materi- 
 ally influence the action of the insurer, 
 
 Mattson vs. Modern Samaritans, February, 1904, 91 Minn. 434; 98 
 N. W, 330,
 
 THE STATE OF MINNESOTA 525 
 
 Beneficiaries — "Living Issue" Construed. 
 
 A certificate in tlie A. O. U. W. was issued to a member and made 
 payable at his death to liis widow. There was a ])rovisioii in the laws 
 of the society to the effect that if the member left no widow, the cer- 
 tificate should be j)a\'abb' 1o his children, etc., to his bi-othei's or 
 sisters, "or to tlieir living issue according to the right of represen- 
 tation." The Court said in construing the quoted provision above 
 that it w;is inteinhnl to refer t<i descendents of deceased brothers or 
 sisters, and that the jjhrase "their living issue" was used synonV- 
 nionsly with "lineal descendents," and that so construed the by-laws 
 will read that the contract should be paid to the brothers and sisters 
 of the member; or if there be none living then to their living de- 
 scendents according to the right of representation. 
 
 Hemenway vs. Draper, January, 1904, 91 Minn, 236; 97 N. W, 874. 
 
 Prohibited Occupations — Saloon Keepers. 
 
 A provision in the laws of a societ.y was to this effect "No person 
 who engages in the sale of intoxicating drinks can be admitted or 
 retained as a member." It is held that under the provisions of all 
 the laws of the society a member who engaged in the sale of intox- 
 icating liquors did not ipso facto terminate his membership under 
 said laws. 
 
 Steinert vs. United Brotlierliood of Carpenters, Decembei', 1903, 91 
 Minn. 189; 97 N. W. 668. 
 
 Service of Summons. ' 
 
 Service of summons upon a society was held good when served 
 upon an officer residing in the State, neither the president nor any 
 other general officer being a resident of the State. 
 
 Taylor vs. Order of Railway Conductors, May, 1903, 89 Minn. 222; 94 
 
 N. W. 684. 
 
 Amended Laws as to Occupations — Unreasonable. 
 
 A member agreed in his a]iiilication to be boiuid by the laws of the
 
 526 FRATERNAL SOCIETY LAW 
 
 society then in force and those that might thereafter be enacted. 
 Subsequent to his admission a law was enacted against members en- 
 gaging in the occupation of freight bralveman, and provided further 
 that if a member so engaged in that occupation, he sliould forfeit 
 his certificate. No actual notice of the passage of this law was given 
 to the member, but subsequent thereto he became a freight brakeman 
 and was killed while in discharge of his duty. The Court held, fol- 
 lowing Thibert vs. Supreme Lodge, 78 Minn. 448, that the amended 
 by-law was unreasonable and void as to the member. 
 
 Tebo vs. Supreme Council Royal Arcanum, February, 1903, 89 Minn. 
 3; 93 N. W. 513. 
 
 Waivers by Subordinate Lodge. 
 
 With respect to the waiver of laws by a subordinate body, the 
 Court said : 
 
 "It cannot be claimed that the habit of a subordinate council to 
 allow delinquencies to occur, should continue Avithout change to pre- 
 vent an enforcement of the by-laws for all time when due notice to 
 the member in question that such negligent custom should cease 
 had been given. The relation of the subordinate council and its col- 
 lector to the Supreme Council was such that it became the duty of 
 the collecting body to enforce defendant's regulations although it 
 had neglected its duty in the past in a way that might have estab- 
 lished a negligent system, and misled members. It could not have 
 had this effect after proper information conveyed to the insured that 
 the custom would not continue." 
 
 Bost vs. Supreme Council Royal Arcanum. November, 1902. 87 Minn. 
 417; 92 N. W. 337. 
 
 Waivers — Laws Not Waived by Custom. 
 
 The laws of a society required that monthl.v payments should be 
 made by a certain date and that if not so made the nuMuber sluiuld 
 stand suspended from all rights and in'ivilegcs in llic sooiet.x'. A 
 habit and custom had grown up on the part of the collecting officer 
 in his dealings with the members liy which he acce]ited iiayments
 
 THE UTATE OF MINNESOTA 527 
 
 after the time when they were due, but this custom was not known 
 to nor authorized nor sanctioned by the society and was in direct 
 violation of the by-hiws. The Court held that the custom being so 
 unknown was ineffectual as a waiver of the by-laws requiring- jiroinpt 
 payment and that as the member stood suspended at the time of 
 his death, his beneficiary could not recover. 
 
 Graves vs. Modern Woodmen of America, February, 1902, 85 Minn. 
 396; 89 N, W, 6. 
 
 Suicide — Burden of Proof. 
 
 The burden of proving that the member suicided is upon the 
 society. For the facts in a case where the question of suicide was 
 in issue, see the following : 
 
 Sartell vs. Royal Neighbors of America, January, 1902, 85 Minn. 
 369; 88 N. W. 985. 
 
 Beneflciaries — Change of. 
 
 The laws of a society in respect to the change of beneficiaries pro- 
 vided as follows : 
 
 "Any member desiring to make a new direction as to the piiyment 
 of his beneficiary certificate may do so by authorizing such change 
 in writing on the back thereof in the form prescribed, attested by 
 the recorder, seal of lodge attached, and delivery of his certificate 
 and payment of fifty cents to the recorder, whereupon the change 
 shall at once take effect. The recorder shall thereupon make a record 
 thereof and report same to the Grand Recorder, forwarding the 
 fifty cents and the certificate. The Grand Recorder shall thereupon 
 issue a new certificate as directed, bearing the same number and 
 conditions as the old." 
 
 Shortly before the member's death he signed a document changing 
 the beneficiary which was attested by the recorder, and sealed with 
 the lodge seal. The instrument was on a form furnished by the 
 recorder but was not the one usually employed in making changes 
 of beneficiaries. The insti'ument was delivered td the recorder and 
 the fee paid. It was held that the change was substantially in com-
 
 528 FRATERNAL mCIETY LAW 
 
 pliance with the laws, and that it was a valid designation of the new 
 beneficiary. 
 
 Schoenau vs. Grand Lodge A. O. U. W., January, 1902, 85 Minn. 
 349; 88 N. W. 999. 
 
 Beneficiary — No Interest in Contract Before Maturity. 
 
 The certificate of membership together with the constitution and 
 by-laws of the society constitute the contract between the member 
 and the society. This is a contract in which the beneficiary has no 
 part until after the maturity of the certificate, and the provisions 
 of the laws respecting the changing of beneficiaries are held to be 
 made for the protection of the society and to enable the member to 
 express his will and intention and that such provision may be waived 
 or varied by the society in order to accomplish that result. 
 
 Schoenau vs. Grand Lodge A. O. U. W., January, 1902, 85 Minn. 349; 
 88 N. W. 999. 
 
 Beneficiary — Vested Interests. 
 
 The beneficiary named in a certificate issued by a fraternal society 
 has no vested interest therein but a mere expectancy liable to be 
 terminated at any time by the will of the member. 
 
 Schoenau vs. Grand Lodge A. 0. U. W., January, 1902, 85 Minn. 349; 
 88 N. W. 999. 
 
 Forfeiture— Reinstatement. 
 
 The laws of the society provided that membership certificates 
 should become void on the member's failure to pay assessments when 
 due without regard to notices of delinquency and that such member 
 .should stand suspended until reinstated by payment of all delinquent 
 amounts and the furnishing of a health certificate. A member carry- 
 ing a contract under these laws failed to make the payments re- 
 quired, hoAvever, he subsequently made the iiaymeuts, but did not 
 furnish a health cortifi(';it<'. Tl w;is held Ih.i1 1li(> receipt of the jimv-
 
 THE STATE OF MINNESOTA 529 
 
 mollis thus niadp in dpfinilt upon iMiinlil ion liy the sofiety that such 
 payiiicnts would he held subject to the reinstatement of the member, 
 while waitin;^' for the health eerlilieate. did not operate to restore 
 the member to uood slandint;. 
 
 Bowlin vs. Woodmen of the World, Feb. 1901. 82 Jlinn. 411; 81 N. 
 W. 160. 
 
 Right to Establish Classes. 
 
 As to the right of an as.sessment society to establish classes, see 
 discussion contained in the t'ollowiiiii' case: 
 
 Ebert vs. Mutual Reserve Fund Life Association, August, 1900; 81 
 Minn. 116. 
 
 Amendments by Boards of Directors. 
 
 A society was organized in New York for the purpose of conduct- 
 ing a life insurance business upon the co-operative or assessment 
 plan. The ciuestion arose under the policy issued in the society as 
 to the right of the board of directors to change the rates of con- 
 tribution of members and plans of business of the society. The 
 Court said : 
 
 "It is evident that the contract contemplated an unsettled and 
 varient death fund, from which to pay death claims, and that the 
 amount of the assessments would vary according to the number of 
 deaths, the growth of the association in membership and earning 
 capacity of the reserve fund. It is also clear that the law of self- 
 preservation applied, and if at any time in order to meet- maturing 
 claims it should become necessary to levy a larger amount than that 
 stipulated as the maximum rate of the table, the power so to do was 
 inherent in the association and the directors would have authority 
 to pass suitable rules and regulations for that purpose." 
 
 The Court declared that the society at bar was not a fraternal 
 beneficiary society. 
 
 Ebert vs. Mutual Reserve Fund Life Assn.. August. 1900, 81 Minn. 
 116. 
 34
 
 530 FRATERNAL SOCIETY LAW 
 
 Waiver— Custom Does Not Waive Laws. 
 
 The by-laws of a society required payments to be made on or be- 
 fore the 28th day of the month for which they were due. It ap- 
 peared from the evidence that the custom or habit of the collecting 
 officer of the subordinate lodge had been to allow the members to 
 pay assessments after the 28th of the month. There was no evidence 
 that the society had any knowledge of this custom. The collecting 
 officer had no duty other than to receive payment and to make report 
 of the fact of payment and to turn the money over to the society. 
 The Court held that inasmuch as the society had strictly complied 
 with all of its laws, so far as the evidence of the ease showed, and 
 that the only dereliction consisted in the default of the nu'mber and 
 of the collecting officer, knowledge of which default was not brought 
 home to the society, it could not be claimed that the society had 
 waived its laws. The Court said: 
 
 "A compliance with the terms of a contract cannot be termed or 
 converted into a waiver." 
 
 Elder vs. Grand Lodge A. O. U. W., May, 1900, 79. Minn. 468. 
 
 Waiver of Laws — Assignment of Benefits. 
 
 The by-laws of a society provided against the assignment of more 
 than half of the amount of the benefit certificate. In a case arising 
 where the whole of the certificate had been assigned, the Court held 
 upon the facts proven that the society had waived the ju-ovisioii of 
 its by-laws. 
 
 Swedish Christian Mission Society vs. Lawrence. February. 1900, 
 79 Minn. 124. 
 
 Beneficiary — Eligibility of Stranger. 
 
 An unmarried man of the name of ]\Iaguire was a lucinhcr of a 
 society, holding a certificate payal)le to ■'his cousin, 11. 11. Ui-ulici-." 
 Payment of the certificate was refused liy the society, it .ille-iiiL:- as 
 reason llierel'oi- that Cruber was not a cousin of the meiiiher aiul was 
 not eliiiilile to lie iiMiiiod as tlu' lieiu'ficiary. that he was iieitlu-r re-
 
 FRATERNAL SOCIETY LAW o31 
 
 lated to the member nor a member of his family nor dependent upon 
 him. It was conceded that the contention of the society in reference 
 to the relationship of (li-nber to tlie member was correct. The by- 
 laws in force and which were construed l)y the Court jirovided that 
 benefits should be paid. 
 
 "To the person designated in the certificate when designated by 
 name and a person related to the deceased or a member of his fam- 
 ily or dependent upon him.'-' 
 
 The Court held that the by-law did not prohibit Maguire from 
 designating a person not related to him as a beneficiary and that 
 unless Gruber was entitled to the fund it would forfeit to the society; 
 jind, further, that the society had assented to the designation of 
 Gruber by the issuance of the certificate in question, and that, there- 
 fore, Gruber was entitled to the fund. 
 
 Gruber vs. Grand Lodge A. 0. U. W.. February, 1900, 79 Minn. 59. 
 
 After-enacted Laws — Must be Reasonable. 
 
 A nu'niljcr in his application agreed to be bound "with the laws, 
 rules and regulations now governing this order or that may be here- 
 after enacted for its government." At the time when this applica- 
 tion was made and certificate issued thereon to the member, it was 
 the duty, under the laws, of the Supreme Reporter to determine on 
 the 20th day of each month the luuuher of assessments which would 
 be needed to provide for aud pay death claims duly proven or regis- 
 tered for the coming month and to levy the assessments so deter- 
 mined, of which levy he was to give immediate official notice to each 
 subordinate lodge. This levy was in anticipation of deaths and evi- 
 dentl.v the intention was thus to hasten ]iayment of claims. Under 
 the laws in force at the time of the i.ssuance of the certificate in ques- 
 tion, the Court found that the member w-as entitled to notice of as- 
 sessments. Subsequently the laws were amended by which it Avas 
 the duty of the member to make f<tip\ibiti'd payments without the 
 necessit.v of personal notice. With respect to the legality of the 
 amended laws and their applicability to the contract in question, the 
 Court said :
 
 532 FRATERNAL SOCIETY LAW 
 
 "The rights of members in these associations must of course de- 
 pend upon the articles or by-laws to which all members assent when 
 becoming such, and generally speaking, the same body which is au- 
 thorized to make by-laws can change, amend or repeal those already 
 made. To this Thibert agreed when he joined. But the changes, 
 amendments aud repeals are subject to the restrictions and limita- 
 tions of the by-laws themselves as well as those of the charter or 
 articles of association and are also subject to the imi)lied condition 
 of being reasonable." 
 
 The Court held that the amended law as to the member in question 
 was unreasonable. 
 
 Thibert vs. Supreme Lodge Knights of Honor, December, 1899, 78 
 Minn. 448. 
 
 Forfeitures — Estoppel by Course of Dealing. 
 
 With regard to the methods of eondneting the business of the so- 
 cietj- and declaring forfeitures of members for non-payment of their 
 assessments, the Court, after ascertaining the facts in a given case 
 upon which it held against the theory of fin-feiture made the fol- 
 lowing statement : 
 
 ■'But the defendant could not by its acts or course of conduct 
 or by showing rei-cints whicli. to say the least for them, were in- 
 sufficient to put an ordinary man upon his guard, or by a system of 
 book-keeping of which complainant had no knowledge, mislead him 
 in regard to the necessity of prompt payment of his monthly dues or 
 create the belief on liis part that a strict compliance with the letter of 
 his contract was unnecessary, aud then take advantage of its own 
 misconduct." 
 
 Richwine vs. La Crosse Mutual Aid Assn., .June, 1899, 76 Minn. 117. 
 
 Forfeitures — Advance Assessments . 
 
 A member of the National Union made all payments required of 
 him under his memlxTshij) until April, ISOfi. Two assessments were 
 levied I'oi- tli;i1 monlli. Init tln' nn'mluT did nol p;iy iMlhcr one nor
 
 THE HTATE OF MINNESOTA 533 
 
 l-rs|)iiii(l 1(1 ;i jKilicc si'lil liiiii Id llir cliCcct lliat he liiul lifcii siis|iciiiIim! 
 ;iii(l .stating the terms ii|)Oii wliidi In- iniglit he reiiistatetl. Tlie iiieiii- 
 her died in the November followino and suit was brought for the 
 amount of the certifieatc. In passing upon the propriety of issuing 
 notiec of assessments and levying assessments to i)ay aeeruing or 
 I'litiife claims, the Court said: 
 
 ■'An association of tliis character could not establish a bcnelit fund 
 noi- could it pay out within a certain number of days after ])roof, 
 nor could it even transact business pniperly if after death claims 
 have been established provision for payment thereafter must be made 
 upon members. From all of the provisions of the laws under which 
 the association acts it is clear that the secretary is to make all issess- 
 ments, and that in a reasonable manner lie may anticipate and pro- 
 vide for the payment of claims for deaths which have occurred, and 
 the presumption is that the condition of the treasury demanded that 
 two assessments be made on April 10th." 
 
 Bridges vs. National Union, August, 1898, 73 Minn. 486. 
 
 Age — Waiver of Laws — Misrepresentation. 
 
 The articles of incorjioration of a society ju'ovided that persons 
 over 65 years of age should not be admitted to membership. The by- 
 laws adopted by the society provided that persons over 55 years of 
 age should not be admitted to membership. An applicant for mem- 
 bership represented that he was 5:i \ears of age on the date of his 
 application, when in fact he was 57 years of age. He was admitted, 
 and made all payments required of him. Under the particular facts 
 in the ease the Court held that the society had waived the misrepre- 
 sentation because of it having received knowledge of the misstate- 
 ment of the age of the member and that the society had power to 
 waive its by-law. 
 
 Wiberg vs. Minnesota Scandinavian Assn., July. 1898, 73 Minn. 297.
 
 534 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF MISSISSIPPI. 
 
 CHAPTER 25. 
 
 There is uo separate Fraternal Code iu the laws of Mississippi, 
 but certain sections in the general insurance code apply to Fraternal 
 rfoeieties in express terms while others seem to have indirect appli- 
 cation. All sections of the insurance code as revised in 1906 which 
 affect Fraternal Societies in any respect are herein incorporated, 
 with section numbers corresponding to those in the Revised Statutes. 
 
 Department of Insurance Created. 
 
 Section 2550. There is hereby established in this State a separate 
 and distinct department of insurance, which shall be charged with 
 the execution of all laws now in force or which may be enacted 
 hereafter, relative to all insurance, including indemnity or guarantee 
 and other companies, corj)orations, associations or orders placed 
 under this department. 
 
 Insurance Commissioner. 
 
 Section 2451. The chief officer of said department shall be de- 
 nominated the commissioner of insurance, who shall be elected at the 
 general election, as other State officers, and who shall possess the 
 same qualifications as required for the secretary of State. No per- 
 son shall be commissioner of insurance who is in any way con- 
 nected with the management or control of any company, corporation, 
 association or order affected by this chapter, and his term of office
 
 THE STATE OF MISSISSIPPI 535 
 
 sliiill immediately cease if at any time he shall become so interested; 
 otherwise the term of office shall be four years, as that of other State 
 officials. Before entering upon the discharge of his duties the com- 
 missioner shall take the oath of office required of State officers, and 
 give a bond in favor 6f the State in the penalty of ten thousand dol- 
 lars, with some guarantee company or companies authorized to do 
 business in this State, to be approved by the governor, conditioned 
 for the faithful performance of the duties of said office during his 
 term, which bund and oath of office shall be filed with the secretary 
 of State. 
 
 Concerns Subject to Department — Access to Books, Etc. 
 
 Section 2559. All indemnit\- or guarantee companies, all com- 
 panies, corporations, partnerships, associations, individuals and fra- 
 ternal orders, whether domestic or foreign, transacting or to be ad- 
 mitted to transact, the business of insurance in this State, are insur- 
 ance companies within the meaning of this chapter, and shall be 
 subject to the inspection and supervision of the commissioner. 
 Wlienever he shall deem it proper he shall personally, or by deputy, 
 or agent, make a careful examination of them. He shall have author- 
 ity to administer oaths, to subpoena and examine under oath the 
 assured, and the directors, officers, agents or trustees of such com- 
 panies, and to compel the production for his examination of all 
 books and papers pertaining to their business or that of their 
 agents. 
 
 Reports on File — Permanent Record. 
 
 Section 2560. The commissioner shall keep in his office for public 
 inspection all reports received by him; a record of all his proceed- 
 ings, including a concise statement of the resiilt of official examina- 
 tions, an exhibit of the financial conditions and business methods of 
 all companies under his supervision, as disclosed by their statements, 
 or by official examination ; and such other information with regard 
 to them as he may deem it proper to preserve.
 
 536 FRATERNAL SOCIETY LAW 
 
 Failure to Comply, Etc. — Notice to Attorney-General. 
 
 Section 2561. Whenever it shall appear to the commissioner from 
 anj- report submitted or examination made under the provisions ot 
 this chapter or otherwise, that any of said companies or orders has 
 failed to comply with the law, or if it, its officers or agents, refuse to 
 submit to examination or to perform any legal obligations in relation 
 thereto, or that its condition is such as to render its further proceed- 
 ing hazardous to the public or its stockholders or policy-holders, it 
 shall be the duty of the attorney-general or the district attorney 
 under his direction, on notice by the commissioner, to institute such 
 proceedings as are authorized by law and to prosecute the same to 
 final judgment, and the commissioner shall also revoke or suspend 
 all certificates of authorit}^ granted to such concern or its agents to 
 do business in this State, as hereinafter provided. 
 
 Terms Defined. 
 
 Section 2562. When consistent with the context and not obviously 
 used in a difl'erent sense, the term "company" or "insurance com- 
 pany," as used herein, includes all corporations, associations, part- 
 nerships or individuals engaged as principals in the business of in- 
 surance or guaranteeing the obligations of others; the word "domes- 
 tic" designates those companies incorporated or formed in this 
 State and with home offices therein; and the word "foreign" when 
 used without limitation, includes all those formed by authority of 
 any other State or government, and whose home office is not located 
 in this State. 
 
 What is Insurance — Situs of Contract. 
 
 Section 2563. A contract of insurance is an agreement by which 
 one party for a consideration promises to pay money or its equiva- 
 lent or to do some act of value to the assured, upon the destruction, 
 loss oi- injury of something in wliicli the assured or other i)arty has 
 an interest, as an indenuiity therefor; and it shall be vuilawful for 
 »any company to make any contract of insurance upon, or concerning 
 any property or interest or lives in this State, or with any resident
 
 THE STATE OF MISSISSIPPI 537 
 
 thereof; or for any person as insurance agent or insurance broker 
 to make, negotiate, solicit, or in any manner aid in the transaction 
 of sucli insurance unless and except as authorized under the provi- 
 sions of this chapter. All contracts of insurance on property, lives 
 or interests in this State shall be deemed to be made therein. 
 
 Examination Before Granting Authority. 
 
 Section 2564. Before granting a certificate of authority to any 
 insurance comjiany the commissioner shall be satisfied by examina- 
 tion that it is qualified under the laws of the State to transact busi- 
 ness therein, and as to its financial ability and condition. As often 
 as once in two years he shall personally, or b,y deputy or agent, care- 
 fully examine the affairs of each domestic company. (See Sec. 1248.) 
 
 Examination on Request. 
 
 Section 2565. He shall also make an examination of any such 
 company whenever he deems it pimdeut to do so, or upon the request 
 of five or more of the stockholders, policy-holders, creditors, or per- 
 sons pecuniarily interested therein, who shall make affidavit of their 
 belief, with specifications of their reasons therefor, that such com- 
 pany is in an unsound condition. 
 
 Examination of Foreign Concerns — Access to Books, Etc. 
 
 Section 2566. Whenever he deems it prudent for the protection 
 of policy-holders in this State, he shall in like manner visit and 
 examine, or cause to be visited and examined, by some competent 
 person or persons he may appoint for that purpose, any foreign in- 
 surance company applying for admission or already admitted to do 
 business by agencies in this State, and such companies shall pay the 
 proper charges incurred in such examination, including the expense 
 of the commissioner or his deputy and the expenses and compensa- 
 tion of his assistants employed therein. For the purpose aforesaid 
 the commissioner or his deputy or person making examination shall 
 have free access to all the books and papers of the insurance com- 
 pany that relate to its business, and to the books and papers kept
 
 538 FRATERNAL SOCIETY LAW 
 
 by any of its agents, aud may summon and qualify as witnesses 
 under oath and examine the directors, officers, agents and trustees 
 of any such company and any other persons in relation to its affairs, 
 transactions and conditions. 
 
 When Authority Suspended or Revoked. 
 
 Section 2567. If he is of opinion upon examination or other evi- 
 dence that a foreign insurance company is in an unsound condition, 
 or if a life insurance eompanj-, that its actual funds, exclusive of 
 its caiiital, are less than its liabilities, or if a foreign insurance com- 
 pany that it has failed to comply with the law, or if it, its officers, 
 or agents, refuse to submit to examination or to perform any legal 
 obligation in relation thereto, he shall revoke or suspend all certifi- 
 cates of authority granted to it. or its agents, and shall cause notifi- 
 cation thereof to l)e published in one or more newspapers pulilished 
 in this State, and no new business shall thereafter be done by it, or 
 its agents in this State while such default or disability continues, 
 nor until its authority to do business is restored by the commissioner. 
 If, upon examination, he is of opinion that any domestic insurance 
 company is insolvent, or has exceeded its powers, or has failed to 
 comply with any provision of law applicable to it, or that its con- 
 dition is such as to render its further proceeding hazardous to the 
 public or its policy-holders, he shall suspend its license, and if he 
 deem it necessary he shall apply to a judge of the chancery court 
 to issue an injunction restraining it in whole or in part from further 
 proceeding with its business. Such judge may, in his discretion, 
 issue the injunction forthwith or upon notice and hearing thereon, 
 and after a full hearing of the matter may dissolve or modify such 
 injimction, or make it permanent, and may make all orders and 
 decrees needful in the premises, and may appoint agents or receiv- 
 ers to take possession of the property or effects of the company, 
 and to settle its affairs, subject to such rules and orders as the court 
 may, from time to time, i)reseribe, according to the course of pro- 
 ceedings in equity.
 
 THE STATE OF MlHSIHSIl'l'l 539 
 
 Legal Process — Notification — Liability of Commissioner for Failure 
 to Notify. 
 
 Section 25G9. When ley;il iirocess is servetl upon the commissioner 
 as attorney for a foreign cjiuiiiany or order under the provisions of 
 Section 126U6, he shall forthwith notify the ccnnpany or order of such 
 service by letter prepaid and directed to its secretary, or, in the case 
 of a foreign country, to its resident manager, if any, in the United 
 States, and shall, -within two days after such service, forward in the 
 same manner a copj' of the process served on him to said secretary 
 or manager, or to such person as may have l)een previously desig- 
 nated by the company or order by written notice filed in I he office of 
 the commissioner; but the failure of the commissioner to notify the 
 company or order shall not affect the validity of such service, but 
 shall sulj.ject him to liability on his bond for such damages as the 
 comi)any or order shall suffer thereby. As a condition of a valid and 
 effectual service and of the duty of the commissioner in the premises, 
 the plaintiff in such process shall pay to the commissioner at the 
 time of service thereof the sum of two dollars, which the said 
 plaintiff shall recover as taxable costs if he prevails in his suit. The 
 commissioner shall keep a record of all such proceedings, which 
 shall show the day and hour of service. 
 
 Business to be Conducted in Corporate Name. 
 
 Section 2570. Evei"y insurance company, foreign or domestic, 
 shall conduct its business in this State in its own proper and cor- 
 porate name, and the policies and contracts of insurance issued by 
 it shall be headed or entitled only by its proper or corporate name. 
 When any such company publishes its assets, it shall in the same 
 connection and with equal conspicuousness publish its liabilities 
 computed on the basis allowed for its annual statements, and any 
 publication purporting to show its capital, shall exhibit only the 
 amount of such capital as has actually been paid in cash. 
 
 Laws Applicable. 
 
 Section 2571. The general provisions of law relative to the powers,
 
 540 FRATERNAL SOCIETY LAW 
 
 duties and liabilities of corporations shall apply to all incorporated 
 domestic insurance companies, so far as such provisions are perti- 
 nent and not in conflict with other provisions of law relative to such 
 companies, or with their charters. All insurance companies in this 
 State shall be governed by this chapter, anything in their special 
 charters to the contrary notwith-standing. 
 
 Continuation After Charter Expires. 
 
 Section 2572. Domestic insurance companies incorporated by 
 special acts, whose charters are sub.ject to limitation of time, shall, 
 after such limitation expire.s, continue to be bodies corporate, sub- 
 ject to all general laws applicable to such companies. No domestic 
 in.surance company hereafter organized shall issue policies until, 
 upon examination of the commissioner, his deput}^ or examiner, it 
 is found to have complied with the laws of the State, nor until it 
 has obtained from the commissioner a certificate setting forth that 
 fact and authorizing it to issue policies. 
 
 By-Laws — Terms of Directors. 
 
 Section 2573. Any such corapanj- may adopt by-laws for the con- 
 duet of its business not repugnant to law or to its charter, and 
 therein provide for the division of its board of directors into two, 
 three or four classes and the election thereof at its annual meetings 
 in such manner as that the members of one class only shall retire 
 and their successors be chosen each year. Vacancies in any such 
 class may be filled by election by the board for the unexpired term. 
 
 Real Estate Acquired and Held. 
 
 Section 2574. Any such company may acquire and linld real estate 
 for the convenient accommodation of its business at a cost not 
 exceeding twenty-five per centum of its cash assets and not other- 
 wise, but may hold real estate under the conditions of any mortgage 
 owned by it. or by purchase on execution upon judgment for debts 
 due it in the course of its legitimate business; provided, that this 
 shall not apply to any company which has already made investments 
 in real estate in excess of the provisions of this section.
 
 THE STATE OF MISSISSIPPI 541 
 
 No Stipulation as to Jurisdiction. 
 
 Section 2575. No company shall make any condition or stipula- 
 tion in its insurance contract concerning the court or jurisdiction 
 wherein any suit thereon may be brought, nor shall they limit the 
 time within which such suit may be commenced to less than one 
 year after the loss or injury, and any such condition or stipulation 
 shall be void. 
 
 Life Insurance Companies Defined. 
 
 Section '2d'.)S. All corporations, associations, partnerships or indi- 
 viduals doing busiuess in this State under any chartei', contract, 
 agreement or statute, of this or any other State, involving the pay- 
 ment of money or other things of value to families or representatives 
 of policy and certificate holders or members, conditioned upon the 
 continuance or cessation of human life, or involving an insurance, 
 guaranty, contract or pledge for the payment of endowments for 
 annuities, or who shall employ agents to solicit such business, shall 
 be deemed to be life insurance companies and shall in all respects 
 be subject to the laws herein made and provided for the government 
 of life insurance companies, and shall not make any such insurance, 
 guaranty, contract or pledge in this State with any citizen or resi- 
 dent thereof which does not distinctly state the amount of benefits 
 payable, the manner of payment and the consideration therefor. 
 
 Reinsurance Regulated. 
 
 Section 2601. No domestic life insurance company shall reinsure 
 its risks except l)y permission of the insurance commissioner, but 
 may reinsure not exceeding one-half of any individual risk. No life 
 insurance company or fraternal order, organized vuider the laws of 
 or doing business in this State, shall enter into any contract of insur- 
 ance upon lives within this State without having previously made or 
 caused to be made a prescribed medical examination of the insured 
 by a medical practitioner, authorized to practice medicine by the 
 laws of Mississippi ; provided, that this shall not apply to policies 
 not exceeding one hundred dollars on anv one life. Anv insurance
 
 542 FRATERNAL SOCIETY LAW 
 
 company or fraternal order violating this provision, or any officer, 
 agent, or other pei'son soliciting, or effecting, or attempting to effect 
 a contract of insurance contrary thereto, shall be deemed guilty of 
 a misdemeanor, and shall be punished by a tine not exceeding one 
 hundred dollars for each offense. 
 
 Amount Exempt to Beneficiaries. 
 
 Section 2602. The proceeds of a life insurance policy to an amount 
 not exceeding ten thousand dullars upon any one life shall enure 
 to the party or parties named as the beneficiaries thereof free from 
 all liability for the debts of the person whose life was insured, even 
 though such person paid the premiums thereon. 
 
 Amount Exempt to Executor or Administrator. 
 
 Section 2603. The proceeds of a life insurance policy not exceed- 
 ing five thousand dollars, payable to the executor or administrator 
 of the insured enure to the heirs or legatees freed from all liability 
 for the debts of the decedent: but if the life of tlie deceased be in- 
 sured for the benefit of his heirs or legatees at the time of his death 
 otherwise-, and they shall collect the same, the sum collected shall be 
 deducted from the five thousand dollars and the excess of the latter 
 only shall be exempt. 
 
 Penalty for False Statement as to Publication. 
 
 Section 2604. Any solicitor, agent, examining ph.ysician or other 
 person who shall knowingly or wilfully make any false or fraudu- 
 lent statement or representation in or with reference to any publi- 
 cation for insurance, or who shall make any such statement for the 
 purpose of obtaining fee, commission, money or benefit in any cor- 
 poration transacting business under this chapter, shall be guilty of 
 a misdemeanor, and upon conviction, shall be punished by a fine of 
 not less than one hundred dollars, nor more than five hundred dol- 
 lars, or imprisonment in the county jail for not less than thirty days. 
 
 Foreign Companies Admitted — Laws Applicable to. 
 
 Sedion 2605. Foreign iiisniMncc compimies ii))on coiii]ilyiiii:' with
 
 THE STATE OF MLSSISSIl'I'I ^,43 
 
 tlu' cDiRlitioiis lioroiii sv\, forlli iipiiliciiblc to such ciiiiiiuiiiii's, iiiiiv 
 be jidiiiillcd to traiisiict ill tins Sl;ilc by constituted agents resident 
 tlicfciii, any class of insurance authorized by the laws now or here- 
 after in force relative to the tlulies. oblii:at ions, prohiiiit ions ami the 
 penalties of insurance companies, and subject to all laws applicable 
 to the transaction of such business by foiviyii uisui-ance companies 
 and their agents; provided, that no ]n'ovisi(ni of law which by its 
 terms applies specifically to domestic life insurance companies shall 
 thereby become applicable to foreit;ii life insurance companies. 
 
 Deposit of Charter — Statement, Etc. — Fee for Filing. 
 
 Section 26U(J. No foreign insurance, indemnit\' or guarantx' com- 
 pany shall be admitted and authorized to do business in this State 
 imtil: 
 
 First. It shall deposit with the commissioner of insurance a cei'- 
 tified copy of its charter or deed of settlement, and a statement of 
 its financial condition and business, in such form and detail as he 
 may require, signed and sworn to by its president and seci"etary, or 
 other proper officer, and shall jiay for the filing of such statement 
 the sum of twentj^ dollars. 
 
 Second. It shall satisfy the said commissioner that it is full.y 
 and legally organized under the laws of its State or government to 
 do the business it proposes to transact ; that it has, if a stock com- 
 pany, a fully paid up and unimpaired capital, exclusive of stock- 
 holders' obligations of any description, of an amount not less than 
 one hundred thousand dollars; and if a mutual life insurance com- 
 pany that its net cash assets equal to the capital required of like 
 companies on the stock plan ; or that it possesses net cash assets of 
 not less than one hundred thousand dollars, or net cash assets of 
 not less than fifty thousand dollars, with also invested assets of not 
 less than one hundred thousand dollars, and in each case witli ad- 
 ditional contingent assets of not less than three hundred thousand 
 dollars, and that such capital or net assets are well invested and im- 
 mediately available for the payment of losses in this State, and that 
 it insures on any single hazard a sum no larger than one-tenth of its 
 net assets.
 
 544 FRATERNAL SOCIETY LAW 
 
 Third. It shall, by a duly executed instrument filed in his office, 
 constitute and appoint the commissioner of insurance, and his suc- 
 cessor, its true and lawful attorney, upon whom all process in any 
 action or legal proceeding against it may be served, and therein shall 
 agree that any process against it which may be served upon its said 
 attorney shall be of the same force and validity as if served on the 
 company, and the authority thereof shall continue in force irrevo- 
 cable so long as any liability of the company remains outstanding iu 
 this State. The service of such process shall be made by leaving a 
 copy of the same in the hands or office of the said commissioner. 
 Copies of such instrument certified by the said commissioner shall 
 be deemed sufficient evidence thereof, and service upon such attorney 
 shall be deemed sufficient service upon the princi])al. 
 
 Fourth. It shall appoint as its agent or agents in this State some 
 resident or residents thereof other than the said commissioner, such 
 appointment to be made in writing, signed by the president and 
 secretary or manager or general agent, and filed in the office of the 
 commissioner, authorizing the agent to acknowledge service of 
 process for and on behalf of the company, and consenting that serv- 
 ice of process on the agent shall be as valid as if served upon the 
 company, according to the laws of this State, and waiving all claim 
 of error by reason of such service. 
 
 Fifth. It shall obtain from the said commissioner a certificate 
 that it has complied with the laws of the State and is authorized to 
 make contracts of insurance. 
 
 License Revoked, When. 
 
 Section 2612. The authorit.y of a domestic or foreign insurance 
 company may be revoked if it shall violate t)r neglect to comply 
 with any provision of law obligatory on it. and whenever iu the 
 opinion of the commissioner its condition is unsound, or its assets 
 above its liabilities exclusive of capital and inclusive of unearned 
 premiums, estimated as provided in Section 261.S, are less llian the 
 amount of its original capital or required iiniitipnircil I'uiids. 
 
 License for Twelve Months — Fees Prorated. 
 
 Section 21)24. The licenses required shall continue for the next
 
 THE STATE OF MISSISSIPPI 545 
 
 ensuing twelve nioutlis jirtcr .MjiitIi ]s1 oi' (^acli ycnr (but the cora- 
 niissiouer may receive i'rom applicauts after Marcli 1st so much of 
 said license fees as may be due prorata for the I'emaindcr of the 
 year) unless revoked, as provided in this chapter. 
 
 License Fees — Life, Fire, Accident, Marine, Surety, Etc. 
 
 Section 2629. The said ('(iiiiuiissiiuicr sliall collect and pay into 
 the State treasury the following licenses and taxes which shall be 
 in lieu of all other licenses and taxes, State, county or municipal: 
 For each license issued to a life insurance company or association, 
 two hundred and fifty dollars; for each license issued to a fire insur- 
 ance company or association, or to any company or association of 
 companies operating a separate or distinct plant of agencies in the 
 State, two hundred dollars; for each license issued to an accident 
 insurance compan.y or association, two hundred dollars; for each 
 license issued to a marine insurance company or association, two 
 hundred dollars; for each license issued to a surety insurance com- 
 pany or association, one hundred dollars; for each license issued to a 
 plate glass insurance company or association, one hundred dollars; 
 for each license issued to all other insurance companies or associa- 
 tions, one hundred dollars. All life insurance companies shall pay 
 a tax of two per centum upon the gross amount of their initial or 
 first year premium receipts in this State, and one-tenth of one per 
 cent upon renewal premiums on business thereafter written, and all 
 other than life insurance companies shall p^y a tax of two per 
 centum on gross, less return, premiums ; provided, that domestic 
 insurance companies that pay an ad valorem tax to this State shall 
 not be subject to the tax herein imposed upon premiums. 
 
 Fees for Commissioner. 
 
 Section 26.30. The commissioner shall also collect the following 
 fees, to be retained by him as perquisites of the office, until the first 
 day of January, 1907: For certificate of authority to each general 
 or district agent or manager, three dollars (including seal) ; for 
 certificate of authority to each local or canvassing agent (including 
 seal), two dollars: for filint;' and examining statement preliminary 
 35
 
 546t' FRATERNAL SOCIETY LAW 
 
 to admission, twenty dollars; for filing and auditing annual state- 
 ment, ten dollars; for copy of annual statement and certificate 
 thereto, five dollars ; for filing any other paper required by law, one 
 dollar; for each certificate of examination, condition or qualification 
 of company or association, two dollars ; for each seal when required, 
 one dollar; for service of process on him as attorney, two dollars; 
 for each examination of domestic companies, twenty-five dollars and 
 actual expenses incurred; for each examination of foreign com- 
 panies, twenty-five dollars per diem and actual expenses incurred; 
 such examination shall be made onlj- when upon request of the com- 
 missioner of this State upon the iusuranee commissioner of the State 
 of the domicile of a foreign company shall refuse or fail to furnish 
 the information called for; but after January 1, 1907, all fees pro- 
 vided for in this chapter shall be paid by the insurance commissioner 
 into the State treasury. 
 
 Fraternal Orders — Fees. 
 
 Section 2631. For filing charter, etc., of fraternal orders doing an 
 insurance business, preliminary to admission, twenty-five dollars; 
 for filing and auditing annual statement, ten dollars. All other fees 
 and charges due and payable by any company, association, order or 
 individual in his department. 
 
 Publication Fees. 
 
 Section 2632. For publication of annual statement (to be paid to 
 publishers), uiue dollars. The commissioner shall receive for copy 
 of any record or paper in his office, ten cents per hundred words, and 
 one dollar for certifying same, or any fact or data from the records 
 of his office. 
 
 Orders Exempt. 
 
 Section 2637. Nothing in this chapter shall be construed to extend 
 to benevolent associations that levy an as.sessment upon their mem- 
 bers to create a fund only to pay to the family of a deceased member 
 and make no profit therefrom, and that have been incorporated
 
 THE STATE OF MISSISSIPPI 547 
 
 under the laws of this Stnte, and do not solicit business through 
 agents, except such parts of this chapter as apply to "fraternal 
 orders. ' ' 
 
 Fraternal Orders Defined. 
 
 Section 2638. Every incorporated association, order or society 
 doing business in this State on the lodge system, with ritualistic 
 form of work and i-(>preseutative form of government, for the pur- 
 pose (if mnicini;' provision for Ihe pa>-in('nl of ln'ni'fits in ease of 
 death, sickness, temporary or permanent physic.iL disability, either 
 as a result of disease, accident or old age, formed and organized for 
 the sole benefit of its membei's and beneficiaries, and not for profit, 
 be and the same is hereby declared to be a "fraternal order," and 
 such order, society or association paying death benefits may also 
 create, maintain, apply or disburse among its membership a reserve 
 or emergenc.y fund, as may li<' provided in its constitution or by- 
 laws: provided, however, that no profit or gain shall be added to the 
 payment made by a member; and that any incorporated order, asso- 
 ciation or society, not doing business on the lodge system, with 
 rituiilistie form of work, which is so conducted as to make it n fra- 
 ternal beneficiary order, society or association within the true mean- 
 ing of this chapter, aiul shall show it to the satisfaction of the com- 
 missioner, shall be permitted to do Inisiness in this State upon com- 
 pliance with the laws applicable to "fraternal orders." 
 
 Funds Derived from Assessments, Etc. 
 
 Section 2639. The fund from which the pa.vment of benefits, as 
 provided for in the preceding section, shall be made, and the fund 
 from which the expenses of said association shall be defrayed, shall 
 be derived from assessments or due collected from its members. 
 Such societies or associations shall be governed by the provisions of 
 this chapter governing "fraternal orders." 
 
 Report to Commissioner — Publication. 
 
 Section 2640. Such societies or associations doing Imsiness in this
 
 548 FRATERXAL SOCIETY LAW 
 
 State shall, on or before the tirst day of March of each year, make 
 and file with the commissioner of insurance and banking a report 
 of its affairs and operations during the year ending on the 31st day 
 of December immediately preceding, together with a copy of its con- 
 stitution and laws then in force. Such report shall be on blanks pro- 
 vided by the commissioner, and shall be verified under oath by the 
 duly authorized officer or officers of such societ.v or association, and 
 shall contain such information as the commissioner may. in his judg- 
 ment, deem necessary for the welfare of the people of this State, and 
 shall be published, or the substance thereof, in the annual report of 
 the commissioner under a separate head and entitled "Fraternal 
 Orders ; ' ' and for the filing of said report said society or associatiou 
 sluill pay a fee of ten dollars and costs of publication. 
 
 Where Meetings Held. 
 
 Section 2641. Any such societies incorporated and organized 
 under the laAvs of this State may provide for the meeting of its 
 supreme legislative or governing body in any other State, province 
 or territory wherein said society shall have subordinate lodges, and 
 all business that has been heretofore or may hereafter be transacted 
 at such meetings shall be as valid in all respects as if such meeting 
 were held within the State; provided, however, that the principal 
 business office of such society shall always be kept Avithin this State 
 and never removed therefrom. 
 
 Domestic and Foreign Orders, How Admitted. 
 
 Section 2642. Any such fraternal order as is defined py this act. 
 chartered and organized in this State, or organized and doing busi- 
 ness under the laws of another State, district, province or territory, 
 may be admitted to transact business in this State u]ion the same 
 conditions as are prescribed in Section 2606. sub-section one. two. 
 three, five; provided, that the fees therefor shall Ix' twenty-five 
 dollars, and such order shall not be required to have the capital 
 specified in said section.
 
 THE STATE OF MtflSISSIPPI 549 
 
 Penalty for Failure to File Statement and Making False Returns. 
 
 S('ctii)ii 26-1(3. Any coinpiiiiy thai ni'ulccts I1) iiKikc and (ili- its 
 aiiiiiial .statement witliin the linii' pi-dxiili'd in tliis diaiitci-. shall pay 
 to th(> State of Mississippi one liundred dollai's I'or each (la \- 's neg- 
 lect, and npon notiee b\- the eomniissioner to that effeet, its authority 
 to do new business shall cease while such default continues. For 
 wilfully making a false annual or other statement, it is required by 
 law to make, any insurance company, association or order, aiul the 
 person making oath to, or subscribing the same, shall severally be 
 guilty of a misdemeanor, and. upon conviction, bo punished by a fine 
 of not less than five hundred nor more than one thousand dollars. 
 Any person making oath to such false statement shall be guilty of the 
 crime of perjury. 
 
 Life Companies — Application of Insured to be Filed With Policy of 
 Insurance. 
 
 Section 2675. All life insurance companies doing business in the 
 State of Mississippi shall deliver to the insured with the policy, cer- 
 tificate or contract of insurance in any form a copy of the insured's 
 application, and in default thereof said life insurance company shall 
 not be permitted in any court of this State to deny that any of the 
 statements in said application are true. 
 
 Misstatement of Age Not to Invalidate Policy. 
 
 Section 2676. That any misstatement of age, in any policy, cer- 
 tificate or contract of life insurance in any form, shall not invalidate 
 said policy, certificate or contract of life insurance, but in such a case 
 when a loss occurs the beneficiaries shall recover on said policy, cer- 
 tificate or contract of insurance such an amount of insurance as the 
 premiums paid would have purchased for the insured at his actual 
 age, reckoning according to the rate tables of said insurance com- 
 pany.
 
 550 FRATERNAL SOCIETY LAW 
 
 Liberal Construction in Favor of Contract. 
 
 The laws of a society are to be liberally constnu'd in favor of the 
 insured, so as to prevent a forfeiture. 
 
 Morgan vs. Independent Order Sons and Daughters of Jacob, October, 
 1907, Supreme Court of Mississippi, 44 So. 791. 
 
 Cannot Contract Against Estoppel. 
 
 Fraternal societies are subject to the same rules (if law that govern 
 other life insurance companies, except so far as such rules may be 
 lawfully modified by the objects and purposes of the organization, 
 and no company or society can exempt itself in advance by contract 
 or law from an estoppel to assert a forfeiture of a policy when there 
 has been a breach of conditions on the part of the member, and 
 the society's conduct has been such as to induce the belief that the 
 forfeiture was waived. 
 
 Morgan vs. Independent Order Sons and Daughters of Jacob. October 
 1907, Supreme Court of Mississippi, 44 So. 791. 
 
 Conditions Precedent — Medical Examiner's Approval. 
 
 An application for membership was made, but the supreme medi- 
 cal examiner did not pass upon the application until after the mem- 
 ber's death, and then it was disapproved. The laws of the society 
 provided that the approval of the medical examiner should be a 
 condition precedent to liability. Held that no contract had been 
 made. 
 
 Brotherhood of Locomotive Firemen vs. Hand, June. 1907. Supreme 
 Court of Mississippi, 44 So. 161. 
 
 Resort to Civil Courts. 
 
 Where the laws of a society provide for appeals within the society 
 for the purpose of correcting all erroneous or complained of de- 
 cisions, a member is bound to exhaust his remedies so jirovided be- 
 fore applying In the courts for relief.
 
 THE STATE OF MISSISSIPPI 551 
 
 Ward vs. David and Jonathan Lodge, March, 1907, Supreme Court 
 of Mississippi, 43 So. 302. 
 
 After-Enacted Laws Binding. 
 
 An after-enacted by-law i)rovided for a compulsory insurance de- 
 partment, the payment of $1.00 per month by all members, and pro- 
 viding that meml)ers who did not pay this sum should not be per- 
 mitted to meet with the lodge. This by-law was held to apply to 
 members in the society as well as those that might come in sub- 
 sequently. 
 
 Ward vs. David and Jonathan Lodge, March, 1907, Supreme Court 
 of Mississippi, 43 So. 302. 
 
 Coerced Marriage — ' ' Widow. ' ' 
 
 A society agreed, by its contract, to pay to the member's "widow 
 or other heirs," and it was held that where a member had been 
 coerced into a marriage, and never thereafter visited or cohabited 
 with his pretended wife, that she was not the widow within the terms 
 of the contract. 
 
 Grand Lodge vs. Smith, Oct.. 1906, Supreme Court of Mississippi, 
 42 So. 89. 
 
 Beneficiary — Disposition by Will. 
 
 A certificate issued was payable to a member's "widow or other 
 heirs," a section of the laws of the society provided that benefits 
 should go to the "widow, heirs or other legal representatives." The 
 member attempted by a will to dispose of the benefit. It was held 
 that he could not do so, but that the widow was entitled to the fund. 
 
 Tutt vs. Jackson, Nov.. 1905, 87 Miss. 207; 39 So. 420. 
 
 State Statutes Control Certain Societies. 
 
 The statutes of a State imposing restrictions upon insurance com- 
 panies, requiring them to obtain permits from the insurance depart-
 
 552 FRATERNAL SOCIETY LAW 
 
 ment before being permitted to do business in the State, was held 
 to apjily to a society which issued contracts in consideration of 
 weekly dues, whereby it agreed to pay its members a stipulated sum 
 during illness and certain other sums to a designated beneficiary to 
 be expended in burying the member, such a society was held to be 
 an insurance company. 
 
 Fikes vs. The State, Nov., 1905, S7 Miss. 251; 39 So, 7S3. 
 
 Contract — Minds of Parties Must Meet. 
 
 Propositions and counter propositions do not make a contract ; be- 
 fore either party is bound, the proposition of one of them must be 
 accepted by the other exactly as proposed. There must be a meeting 
 of the minds on the same thing, and this rule applies in the making 
 of insurance contracts as much as in any other contract. 
 
 New York Life Insurance Co. vs. Mcintosh, April, 1905, 86 Miss. 236. 
 
 After-enacted Laws — Members Receive Benefits of. 
 
 Where a member has agreed to be bound by the constitution, and 
 such by-laws as are in force or may hereafter be enacted, he is 
 held to be entitled to all the advantages and changes in its laws, as 
 well as being bound to submit to the burdens thereby imposed. 
 
 Sovereign Camp Woodmen ot the World vs. Woodruff. March, 1902, 
 80 Miss. 546. 
 
 Laws Are Considered Written Into Contract. 
 
 All laws of a society in force at the date of the member's certifi- 
 cate, are to be considered as Avritten into the certificate, and all 
 amendments thereafter made which govern and control the member's 
 rights, or fix the societj^'s liability on the contract issued. 
 
 Sovereign Camp Woodmen of the World vs. Woodruff, March, 1902, 
 80 Miss. 546.
 
 THE STATE OF MISSISSIPPI 553 
 
 After-enacted Laws — Members Receive Benefits of and Are Bound 
 By. 
 
 A member in his application agreed in accordance with the re- 
 quirements of the laws that if he had not been vaccinated, he would 
 waive all claims under his certificate in favor of his beneficiary 
 shim Id he (lie from smallpox. Subsequently the laws of the society 
 were so changed as to require members who had not been vaccin- 
 ated to agree that until they were successfully vaccinated, they 
 would waive all claims under their certificates in favor of their bene- 
 ficiaries in case they died from smallpox. The member in question 
 was successfully vaccinated, but subsequently died of smallpox, and 
 it was held thei-e was no defense to the claim of the beneficiary that 
 could be asserted under the laws in force prior to the amendment 
 and that the member and his beneficiary were entitled to the benefits 
 conferred by the amendment. 
 
 Sovereign Camp Woodmen of the World vs. Woodruff, March, 1902, 
 80 Miss. 546, 
 
 Lodge Property Subject to Taxation — "Charity." 
 
 A subordinate lodge of the Independent Order of Odd Fellows, 
 owned certain property and claimed that the property was exempt 
 from taxation under the Code which in language exempts all prop- 
 erty, real or personal, belonging to any charitable society, used ex- 
 clusively for the purposes of such society and not for profit. Part of 
 the property was rented but it was claimed that the income was 
 used for charity by the lodge. A large part of the funds of the 
 lodge were used for sick and burial benefits to members of the 
 society, and the Court said to this extent the funds were not used 
 for charity and that the property was sub.iect to taxation. 
 
 Ridgley Lodge vs. Redus, Oct., 1900, 78 Miss. 352. 
 
 Limitations of Law Presumed to be Known. 
 
 Strangers as well as members of a society are charged with a
 
 4 FRATERNAL SOCIETY LAW 
 
 knowledge of a provision in a public law to the effect that benefits 
 can only be paid to particular classes of persons. 
 
 ■ Rose vs. Wilkins, Oct., 1900, 78 Miss. 401. 
 
 Right of Stranger to Recover in Equity for Money Paid Under Cer- 
 tificate. 
 
 A stranger who makes payments on a certificate for a member to 
 keep the same in force, may after the death of the member recover 
 the amount so paid with legal interest, from the funds due on the 
 certificate by a proceeding in equity against the beneficiary and the 
 
 society. 
 
 Rose vs. Wilkins, Oct., 1900, 78 Miss. 401. 
 
 Beneficiaries Limited to Class Named in Laws. 
 
 The charter of a society authorized it to make contracts to pay 
 benefits to members of the family of or to some person dependent 
 upon the member. It was held that a stranger could not obtain any 
 interest in a certificate issued by such society, though it might be 
 assigned to him by the member. 
 
 Rose vs. Wilkins, Oct., 1900, 78 Miss. 401. 
 
 ' ' Waiver ' ' — Definition of. 
 
 A waiver is the intentional relinquishment of a known right, and 
 it implies an election to forego some advantage upon which the 
 party at his option might have insisted. 
 
 Supreme Lodge Knights of Pythias vs. Quinn, Oct., 1900, 78 Miss. 525. 
 
 Precedent Conditions to Reinstatement of Forfeited Member. 
 
 A member did not pay for April, May and June. Payments under 
 the laws Avere required to be made not later than the 10th of each 
 month, failing which the member's certificate was forfeited. On the 
 20th of June the member being then sick, and shortly thereafter
 
 THE STATE OF MI8SIBSIPPI 555 
 
 dying, forwarded his payment for the throe months, asking for 
 re-instatement. The society accepted the iiKuicy ;iiid wroti' him, 
 saying that he had been reinstated if he was in good liealth. He 
 was not in good health. Upon suit lieing brought upon the refusal 
 of the society to pay the amount of the certificate, the Court said 
 "in the letter accompanying the remittance of his dues, there is not 
 a syllable relating to his health. Under this state of the case there 
 could be no reinstatement of Quinn to membership in the societ.y 
 by the mere payment of his past dues, without knowledge of his 
 physical condition, and the claim of his beneficiary to his rein- 
 statement is groundless." 
 
 Supreme Lodge Knights of Pythias vs. Quinn, Oct., 1900. 78 Miss. 525. 
 
 Power to Legislate Cannot be Delegated. 
 
 The power to legislate given by a societj* to the supreme lodge, 
 the supreme governing body, cannot be delegated to a board of 
 directors which is a mere administrative agency. 
 
 Supreme Lodge Knights of Pythias vs. Stein, March, 1897. 75 Miss. 
 107. 
 
 Laws of Society of More Force Than Mere Certificate. 
 
 The rights of members are not fixed so much by the terms of the 
 certificate as b.y the laws of the society. 
 
 Supreme Lodge Knights of Pythias vs. Stein, March. 1897, 75 Miss. 
 107. 
 
 Benefit Fund Not Subject to Creditors Claims. 
 
 In a contest between a bank and a beneficiary under a certificate 
 issued in the Knights of P.ythias, as to which was entitled to the 
 fund that had been paid into court liy the society, the Court said, 
 "it is obvious that if the member holding the endowment certificate 
 coidd validly transfer it to his creditor, as a security for his debt, 
 the policies of such societies like this or regular insurance com-
 
 556 FRATERNAL SOCIETY LAW 
 
 panies, would become to some extent the subject of trade and specu- 
 lation in contravention of the express policy of the law creating 
 them, and in total subversion of the avowed objects of these asso- 
 ciations." 
 
 Carson vs. Vicksburg Bank. March, 1897. 75 Miss. 167. 
 
 Beneficiaries — Laws for Changing. 
 
 The laws of a society prescribing rules for the changing of bene- 
 ficiaries was held to be for the benefit and protection of the society, 
 that the mode of changing the beneficiaries prescribed bj' the rules, 
 as between rival claimants, is not exclusive ; but that the society 
 may waive some of them, but such waiver is not to be regarded as 
 conferring rights on rival claimants, as they cannot be heard to 
 object to the society's action in waiving its laws in this respect. 
 
 Hall vs. Allen, March, 1897, 75 Miss. 175. 
 
 Charter Higher Than Constitution, Latter a Mere By-law and May 
 Be Changed By Resolution, 
 
 A constitution adopted by a society has no restrictive force over 
 its charter, and is in effect a mere by-law tliat may be repealed or 
 modified in a resolution subsequently adopted bj* the corporation, 
 notwithstanding such resolution was not the prescribed mode for 
 enacting or repealing the hiws, or amending the constitution of the 
 society. 
 
 Domes vs. Supreme Lodge Knights of Pythias, Dec. 1897, 75 Miss. 
 466. 
 
 After-enacted Laws — Binding Though Not Adopted in Regular Mode. 
 
 The board of directors of a society passed a siiicide law and 
 rcjiorted their action to the supreme lodge, which by resolution 
 adopted the report of the board of directors. It was held that this 
 action on the part of the supreme lodge put into force the suicide 
 by-law, and that it became a part of all the outstanding, contracts
 
 THE STATE OF MISSISSIPPI ii57 
 
 made between the society and the members, and that members were 
 bound by said sviicide by-law just as though it had been enacted by 
 the supreme h)dge in the first instance. 
 
 Domes vs. Supreme Lodge Knights of Pythias. Dec. 1S97. 75 Miss. 
 466. 
 
 After-enacted Suicide By-law Valid. 
 
 On the question of after-enaetod laws, the Court said. "The 
 insured contracted in his application and certificate to be bound by 
 all laws then in force and thereafter to be enacted l)y the supreme 
 lodge, and nearly two years elapsed after the law went into force 
 before the insured's death. * * * * "We know of no reason why it 
 is not valid in such cases, if changes made are not in violation of the 
 contract but are in harmony with it." 
 
 Domes vs. Supreme Lodge Knights of Pythias, Dec, 1897, 75 Miss. 
 466.
 
 558 FRATERNAL SOCIETY LAW 
 
 THE 
 
 ■ STATE OF MISSOURI. 
 
 CHAPTER 26. 
 
 (The Section numbers employed correspond to those in the R. S. 
 of Missouri.) 
 
 Who May Be Incorporated. 
 
 Section 1394. Any number of persons, not less than three, who 
 shall have associated themselves by articles of agreement, in writ- 
 ing, as a societ}', company, association or organization formed for 
 benevolent, religious, scientific, fraternal-beneficial, or educational 
 purposes, may be consolidated and united into a corporation. Such 
 articles of agreement may be organic regulations, or a constitution, 
 or other form of association, and any corporate name, not alread.v 
 assumed by another corpoi-ation, may be chosen as the title of 
 the corporation : Provided, always, that the purpose and scope 
 of the association be clearly and fully set forth. (R. S. 1889, 
 Sec. 2821— t.) 
 
 How Incorporated. 
 
 Section 1395. The persons holding the offices respectively of 
 president, secretary and treasurer of the association, or other chief 
 officers, by whatever name they may be known, shall submit to 
 the circuit court having jurisdiction in the city or county where 
 such association is located, the articles of agreement, with the 
 
 I
 
 THE HTATE OF MISSOURI 569 
 
 petitiou praymg ior a pro I'orma decree thereou. il the court 
 shall be of the opinion that such articles of agreement and the 
 purposes of the association come properly within the pui-view of 
 this article, and are not inconsistent with the constitution or laws 
 of tlie United States, or of this State, the court shall enter of record 
 an order to that effect, a certified copy of which order shall, by the 
 clerk, be indoi-sed upon or attached to said articles. But no such 
 order shall be made until such petition shall have remained on file 
 in the clerk's office of said court for at least three days after said 
 petition shall have been presented to the court; and whenever the 
 judge to whom such petitiou shall have been presented shall en- 
 tertain any doubt as to the lawfulness or public usefuluess of the 
 proposed corporation, it shall be his duty to appoint some compe- 
 tent attorney, as a friend of the court, whose duty it shall be to 
 examine said i)etitii)ii and show cause, if any there be, on some 
 day to be fixed by the court, why the prayer of said petition should 
 not be granted, and said attorney shall not be confined in his ex- 
 amination to said petition and articles of association, but may in- 
 troduce such testimony as may be available and proper in order 
 to fully disclose the true purposes of the association ; and upon 
 the hearing thereof, tlie court shall make such further order "grant- 
 ing or dismissing said petition as to it may seem best, and upon 
 the granting of such petition, the petitioners shall cause the articles 
 of agreement, with the certificate aforesaid, to be recorded in the 
 office of the recorder of deeds of the county in which the association 
 is located, and then filed in the office of the secretary of state. 
 The secretary of state shall issue to the petitioners a certified copy 
 of such articles of agreement, with the several certificates thereon 
 as filed in his office, which certified copy shall be the charter of 
 incorporation; and thereupon the petitioners, their associates and 
 successors, shall be created and be a body corporate and politic, 
 by the corporate name designated in such charter, and such 
 charter, together with this article, shall be received in all courts 
 and places as legal evidence of the incorporation of such association. 
 (R. S. 1889, See. 2822.)
 
 560 FRATERNAL SOCIETY LAW 
 
 May Have Benefit of Foregoing Section — How. 
 
 Section 1396. Any such society, order or association heretofore 
 or hereafter incorporated under the provisions of the laws of this 
 State, may avail itself of the benefits of the foregoing section (1408) 
 by amending its constitution or articles of association or reincorpor- 
 ating thereunder, or by an amended constitution or amended articles 
 of association in the manner prescribed by this act. (R. S. 1889, Sec. 
 2824, amended Laws 1897, p. 1.32.) 
 
 What Associations May Incorporate. 
 
 Section 1397. iiny association formed for benevolent purposes, 
 including any purely charitable society, hospital, asylum, house of 
 refuge, reformatory and eleemosynary institution, fraternal-bene- 
 ficial associations, or any association whose object is to promote 
 temperance or other virtue conducive to the well being of the com- 
 munity, and generally, any association formed to provide for some 
 good in the order of benevolence, that is useful to the public, may 
 become a body corporate and politic under this article ; any asso- 
 ciation, congregation, society or church organization formed for 
 religious purposes, and any association formed to provide or main- 
 tain a cemetery ; any school, college, institute, academy or other 
 association formed for educational or scientific purposes, including 
 therein any association formed specially to promote literature, his- 
 tory, science, information or skill among the learned professions, 
 intellectual culture in any branch or department, or the establish- 
 ing of a museum, library, art gallery, or the erection of a public 
 monument, and in seiii-i-al, any association, society, company or or- 
 ganization which tends to the ])ublie advantage in relation to any 
 or several of the objects above enumerated, and whatever is in- 
 cident to siu-h objects, may be created a body corporate and politic 
 by complying with sections 1394 and 1395. (R. S. 1889, See. 2825.) 
 
 May Amend Charter — How. 
 
 Section 1398. Any corporation formed under this artieb', or 
 any existing corporation formed for benevolent, religious, scientific
 
 THE H'l'ATE OF MhSSOUKl 561 
 
 or educatioual purposes, may amend its cliarter in any inattcr gcr- 
 iiiaiie to such charter, by submitting the proposed aiiniidiiient to 
 the circuit court, and in olliei- resjiects proceeding as required in 
 section 1395, for the origiiud articles of agreement. And upon the 
 issuing of a certified copy of such amendment by tlie secretary of 
 state such amendment sliail become and be p^ni of the charter of 
 such corporation, with like effect and validity as though originally 
 incorporated in such charter. An.y such corporation may, without 
 losing its personal identity, change its corporate name as an amend- 
 ment to its charter. (R. S. 1889. Sec. 2826— u.) 
 
 Dues — How Collected. 
 
 Section 1399. The dues of members of corporations created under 
 this article, as determined by their charters or by-biws. and any 
 donations of subscri])tions lo which they may voluntarily obligate 
 themselves, may be collected as any other debt; but over and 
 above such dues or such subscriptions in no case shall any member 
 be individually liable. (R. S. 1889, Sec. 2827.) 
 
 May Be Formed to Execute Trusts. 
 
 Section 1400. Corporations may be formed, under the provisions 
 of this article, to execute any trust the purpose whereof is within 
 the purview of this article, and may receive and take, by deed 
 or devise, in their corporate capacity, any property, real and per- 
 sonal, for the uses and purposes of such trust, and execute the 
 trust so created. (R. S. 1889, Sec. 2828.) 
 
 What Associations Not to Incorporate Under This Article — Com- 
 pany Formed to Erect Building for Use of Society — May. 
 
 Section 1401. No association, society or company formed for 
 manufactixring, agricultural or business purposes of any kind, or 
 for pecuniary profit in any form, nor any corporation having a 
 capital stock divided into shares, shall be incorporated amder this 
 nrticle: Provided, that any company formed to erect a building 
 for the exclusive use of a society within the purview of this article.
 
 5t;'2 FRATERNAL SOCIETY LAW 
 
 without pecuniary consideration from such society may become a 
 body corporate under this ai'ticle, notwithstanding it has a capital 
 stock in shares, and may receive subscriptions to such stock, to 
 be paid iu real estate, in money, property or services rendered to 
 such company. (R. S. 1889. Sec. 2829.) 
 
 Shall Keep a Record. 
 
 Section 1402. Every corporation formed under this article shall 
 keep a fair record of all its proceedings, which record shall be 
 open, at all reasonable hours, to the inspection of all its members. 
 (R. S. 1889, Sec. 2830.) 
 
 Shall Make By-laws, Etc. 
 
 Section 1403. Every corporation created under this article shall 
 make by-laws for its government and support and the management 
 of its property, and therein provide, unless such provision is al- 
 ready made in its charter for the admission of new members and 
 how they shall be admitted, and prescribe their qualifications. Pro- 
 visions may also be made in such by-laws for the removal of officers 
 for cause, and for the expulsion of members guilty of any offense 
 which aft'ects the interests or good government of the corporation, 
 or is indictable by the laws of the laud : Provided, always, that 
 such by-laws shall be conformable to the charter of such corpor- 
 ation, and shall not impair or limit any provisions thereof or en- 
 large its scope, and shall not be contrary to the provisions of the 
 constitution or laws of this State. (R. S. 1889, Sec. 2831.) 
 
 This Section May Be Incorporated in Charter — When — Purpose and 
 Effect. 
 
 Section 1404. Any association or society formed for educational 
 purposes as classified in section 1397, and as hereinafter limited, 
 located in any city or town, may elect to provide iu its ai-ticles 
 of agreement, by incorporating this section in such articles, and 
 in other respects conforming them thereto, that such corjioration 
 shall be. ill all that relates to its property and all such it may
 
 THE STATE OF MiHSOUIil 6G3 
 
 acquire, a quasi trustee for thu public, aud as such may receive 
 and take by deed or devise in its corporate capacity, any property, 
 real aud personal, in trust for the uses and purposes for which 
 such corporation was formed, aud execute any trust so created: 
 Px-ovided, that this section shall apply only, and it is hereby ex- 
 pressly limited, to such association or society as may be formed 
 for the purpose of promotiug historical studies or natural science, 
 of establishing a museum, library or au art gallery, such educa- 
 tional aud scientific purposes beiug chiefly for the advantage of the 
 public where such corporation is located ; and provided furthermore 
 that no corporation in whose charter is incorporated this section 
 shall be permitted to amend such charter or to take advantage 
 or avail itself of any chauge in the general law, iu such way as 
 to att'eet this section, and such charter shall be taken as a perpetual 
 contract between such corporation and the public. It shall not 
 be lawful for such corporation to create or eiuitract any debt or 
 ]i('('Uiiiary oliligatioii in the nature of a debt; jind any attempt 
 to create or contract any such debt oi- oliligation shall be ipso facto, 
 void. Nor shall any such corporation mortgage, or deed in trust. 
 any of its property, or sell any such property, except by way 
 of exchange for property of equal value, or for reinvestment. If 
 any such corporation dissolve, its property shall be vested in the 
 city or town iu which such corporatiou is located, to be taken and 
 held for the benefit of the people of such city or town, to the same 
 purpose, uses and trusts as such property was held by such cor- 
 I)oration. Membership iu such corporation shall be open to the 
 public, under such reasonable rules and regulations as the corpo- 
 ration may prescribe in its by-laws. Every such corporation shall 
 create and maintain an endowment fund, to remain perpetually 
 intact, that means may thereby be provided for the stabilitj' and 
 support of the corporation; and to this end all moneys voluntarily 
 contributed as life membership, aud by persons not residents of 
 the locality where such corporation is located, who desire to be 
 registered as members, and one-fourth of the current subscriptions 
 from memberships, shall be set apart, until the moneys derived 
 from these sources, together with such as lawfully come into such 
 endowment fund from other soiu'ces, shall amount in the aggregate
 
 564 FRATERNAL SOCIETY LAW 
 
 to at least two hundred thousand dollars. Such endowment fund 
 may be invested in bonds of the United States, or of this State, 
 or of the city or county in which the corporation is located, or 
 in loans secured by mortgage on improved real estate situated in 
 this State, but shall not be invested in securities or stock of any 
 private trading or manufacturing corporation, or of an.y railroad 
 company, or on any j^ersonal security, and the principal thereof 
 shall not be encroached upon or expended by such corporation for 
 anj^ purpose. The museum, gallery and cabinets of such corpo- 
 ration shall be open to the public of this State, inider such reasonable 
 regulations as may from time to time be prescribed and the eon- 
 tents of such museum, gallery or cabinets, or au.y portion thereof, 
 shall not be loaned or taken out for exhibition or other purposes, 
 on any pretext whatever. Any existing corporation formed for 
 pui-poses within the purview of this section, and whose charter 
 is in harmony therewith, shall be empowered to adopt the same as 
 an amendment to such charter, under the ju'ovisions of section 
 1398. (R. S. 1889, Sec. 2832.) 
 
 May Acquire Property — How — Application of Income. 
 
 Section 1405. It shall be lawful for any corporation which may 
 be organized under this article, or any existing corporation the 
 purposes w-hereof are included in those mentioned in section 1397 
 hereof, to acquire, by subscription, purchase, devise or gift, shares 
 of stock in any stock company, which shall hereafter be incorpo- 
 rated under and jiursuant to the laws of this State, for the sole pur- 
 pose of erecting or purchasing a hall or building for the use and 
 benefit of any one or more of such corporations as mentioned in 
 section 1397, and to bold such stock as personal property, and to 
 enjoy the rights and privileges appertaining to such ownership: 
 Provided, that the stock corporation erecting or purchasing such 
 hall or building for the purpose aforesaid shall not permit the same 
 to be occupied or used by any person or corporation for any pur- 
 pose not included among those specified in section 1397, except .so 
 much of said building as may be necessarily rented for business 
 purposes, in order to secure a sufficient revenue to provide for the
 
 THt: HTATE OF MItiiiOURl 565 
 
 expenses of the care and maintenance of said property, and Uiv 
 ainiual dividends not to exceed live i)er cent upon the capital .sUn'k 
 tlii'reof, and every such stock corporation as hereinbefore men- 
 tioned, shall in the articles oP association thereof, expressly declare 
 its sole i)urposes to be such as above provided for; and provided 
 further, that any corporation, the i)uri)Oses whereof are included in 
 section 1397 hereof, may acquire and hold in its own name such 
 real estate and buildings as may be necessary for assembly, library, 
 laboratory and other rooms requisite for its purposes, and may 
 receive income from such other rooms as may be requisite to the 
 completeness of such buildinii's; but such income slmll he .-iiipliiMl 
 to the purpose of such corporation iis defined in sedion 1:5117. ( H. 
 S. 1889, Sec. 2833.) 
 
 Miscellaneous Associations — How Formed. 
 
 Section 1406. Any association furiiied lor the purpose of estab- 
 lishing a gymnasium, or club house, or for promoting boating, field 
 sjjorts, or other rational amusements, or for any other purpose not 
 excluded by section 1401, lawful in itself and not otherwise specially 
 provided for, may also by complying with sections 1394 and 1395, 
 become a body corporate and politic, and under this article shall 
 possess the rights and privileges and be subject to the limitations 
 and requirements herein provided, so far as the same are applicable 
 thereto. (R. S. 1889, Sec. 2834.*) 
 
 May Be Proceeded Against by Quo Warranto — When. 
 
 Section 1407. The circuit court of the cit.v or county in which 
 any corporation organized under this article shall be located shall, 
 upon proceedings by information in the nature of a quo warranto, 
 instituted against such corporation or the officers thereof, by the 
 attorney-general or circint attorney, at the relation of any person 
 desiring to prosecute the same, inquire into any alleged unlawful 
 acts of or misuser or non-user of its franchise by such corporation, 
 
 *Insofar as this section undertakes to allow corporations to be created for 
 other tlian benevolent, religious, scientific or educational purposes, it Is 
 void. 99 Mo. 552.
 
 566 FRATERNAL SOCIETY LAW 
 
 in like manner as is or may be provided by law for proceedings in 
 case of the alleged usurpation of or intrusion into any public office 
 by any person. If in any such proceedings, judgment of forfeiture 
 or dissolution be rendered against such corporation, it shall be law- 
 ful for the court to provide by such judgment for the vesting of 
 the property of such corporation, upon such dissolution or for- 
 feiture, in a receiver or receivers, to be appointed by the court, 
 and in his or their successors in office. Such receiver or receivers, 
 upon giving sufficient security, to be approved by the court, for 
 the faithful i)erformance of his or their duties, shall succeed to 
 the title of such corporation iu and to all its property and estate, 
 and shall hold the same in trust for the creditors thereof, and 
 other persons who may be entitled thereto, and shall receive, collect, 
 sue for, recover, hold, manage and dispose of the same under and 
 pui'suant to the orders of such court, to be made from time to time 
 in that behalf, according to right and justice. An.y surplus remain- 
 ing after paying the debts of such corporation shall, except as 
 hereinafter provided, be distributed among the persons who were 
 members of such corporation at the time of such dissolution or 
 forfeiture, or their legal representatives respectively, in equal 
 shares, unless for good cause shown the court shnll otherwise order: 
 Provided, that if upon the dissolution or forfeiture of the franchises 
 of any corporation formed under this article, it shall appear that 
 any property vested in said corporation was held by it upon trust 
 for any charitable purpose or subject to the provisions of section 
 1404, such property or surplus shall not be distributed as above 
 provided, but shall, by decree of such court, to be made without 
 delay, after the debts of such corporation, if any, shall have been 
 fully paid out of said property, be vested in one or more trustees 
 for the charitable iiurpose for which such corporation held the 
 same, or in the case of corporations which have complied with the 
 provisions of section 1404, shall be disposed of in the manner in 
 said section provided for upon the dissolution of any such corpor- 
 ation. And it shall be the diaty of the attorney-general, or circuit 
 or prosecuting attorney of the proper circuit or county, whenever 
 any creditable persoii shall, in writing, make eomplnint to him 
 upon affidavit of information and belief, that any corporation
 
 THE STATE OF MISSOURI -jtt? 
 
 formed iiiulci' this article has, in any material matter, wilfully 
 misused, or, for two years last past, has neglected to use its fran- 
 chises, or has otherwise become liable to forfeit its charter, to in- 
 (juire diligently into the grounds of such complaint, and upon rea- 
 sonable cause shown therefor, to institute proceedings by infor- 
 mation in the nature of a quo warranto, looking to a dissolution 
 of such corporation and a forfeiture of its corporate rights. (R. S. 
 1889, Sec. 2835.*) 
 
 Property Rights of Dissolved Corporations to be Vested in New — 
 How. 
 
 Section 1407a. Whenever the members of any corporation hereto- 
 fore or hereafter incorporated under the laws of this 8tate for any 
 benevolent purpose, or whenever the persons who were or shall be 
 at the time of the dissolution of any such corporation, members 
 thereof (or in case of the death of any of them) the survivors, 
 shall, themselves, or with other associates, become incorporated 
 under the provisions of this article for the same benevolent purpose, 
 under the same or anj' other corporate name, it shall be lawful and 
 it shall be the duty of the person who may be the president of 
 such former corporation, or who was or may be its president at the 
 time of its dissolution, to execute and acknowledge in the name 
 and on behalf of such former corporation, a eonvej'ance of all the 
 property, real and personal, and assets of every description of said 
 former corporation, conveying the same to the new corporation 
 so incorporated; and such conveyance shall have the effect to vest in 
 such new corporation all the right, itle and interest in such prop- 
 erty, real and personal, and assets of every description, which were 
 at any time possessed by said former corporation. (Approved Ajiril 
 12. 1905.) 
 
 Fraternal Beneficiary Association, What is — Government of — Bene- 
 fit Fund — Benefits, to be Paid to Whom. 
 
 Section 1408. A fraternal beneficiary association is hereby de- 
 
 *How private charitable corporations should he proceeded against for mis- 
 appropriation of funds. 100 Mo. 4.51.
 
 568 FRATERNAL SOCIETY LAW 
 
 elared to be a corporation, society or voluntary association, formed 
 or organized and carried on for the sole benefit of its members and 
 their beneficiaries, and not for profit. Each association shall have 
 a lodge system, with ritualistic form of work and representative 
 form of government, and shall make provisions for the payment of 
 benefits in case of death, and may make provision for the payment 
 of benefits in case of sickness, temporary or permanent physical 
 disability either as the result of disease, accident or old age, pro- 
 vided the period in life at which payment of physical disability 
 benefits on account of old age commences, shall not be under seventy 
 (70) years, subject to their compliance with its constitution and 
 laws. The fund from which the payment of such benefits shall be 
 made, and the fund from wliieli the expenses of such association 
 shall be defrayed shall be derived from assessments or dues collected 
 from its members. Payments of death benefits shall be to the fami- 
 lies, heirs, blood relatives, affianced husband or affianced wife of, 
 or to persons dependent upon the member. Such associations shall 
 be governed by this act and shall be exempt from the provisions of 
 the insurance laws of this State, and shall not pay a corporation or 
 other tax, and no law hereafter passed shall apply to them unless 
 they be expressly designated therein. And such fratei-nal beneficial 
 association may create, maintain, disburse and apply a reserve or 
 emergency fund in accordance with its constitution or by-laws. 
 (Laws 1897, p. 132.) 
 
 Associations Already Formed to Comply. 
 
 Section 1409. All such associations coming within the descrip- 
 tion as set forth in section l-tOS of this article, organized under 
 the laws of this or any other State, province or territory, and now 
 doing business in this State, may continue such business: Provided, 
 that they hereafter comply with the provisions of this act regulating 
 annual reports and the designation of the superintendent of the in- 
 surance department as the person upon whom process may be served, 
 as hereinafter pnivided. (Laws 1897. p. 132.) 
 
 Foreign Associations. 
 
 Section 1410. Anv such association coming within the descrip-
 
 TUB STATE OF MISSOURI 569 
 
 tiou as set forth iu section 1408 of this article, organized under the 
 laws of any other State, province or territory and not now doing 
 bnsini'ss in tin's State, shall be admitted to do business within this 
 Stale wlirii it slinll li;i\c filed with the superintendent of the insurance 
 dejiartnient a duly certified copy of its charter and articles of asso- 
 ciation, and a copy of its constitution or laws, certified to by its 
 secretary or corresponding ofificer, together with an appointment 
 of file superintendent of the insurance department of this State 
 as a jjcrson upon whoin process shall be served as herein provided ; 
 and provided, that such association shall be shown to be authorized 
 to do business in the State, province or territory in which it is in- 
 corporated or organized, in case the laws of such State, province or 
 territory shall provide for such authorization ; and in case the laws 
 of such State, province or territory do not provide for any formal 
 authorization to do business on the part of any such association, then 
 such association shall be shown to be conducting its business within 
 the provisions of this act, for which purpose the superintendent of 
 the insurance department of this State may personally, or by some 
 person to be designated by him, examine into the condition, affairs, 
 character and business methods, accounts, books and investments of 
 such association at its home office, which examination shall be at the 
 expense of such association, and shall be made wdthin thirty days 
 after demand therefor, and the expense of such examination shall 
 be limited to $50. (Laws 1897, p. 132.) 
 
 Fraternal Beneficiary Associations to Make Reports — Contents. 
 
 Section 1411. Every such association doing business in this 
 State shall, on or before the first day of ]\Iarch of each year, make 
 and file with the superintendent of the insurance department of this 
 State a report of its affairs and operations during the .vear ending 
 on the 31st day of December immediately preceding, which annual 
 report shall be in lieu of all other reports required by any other 
 law^ Such reports shall be upon blank forms to be provided by 
 the superintendent of the insurance department, or may be printed 
 in jiamphlet form, and shall be verified under oath liy the duly au- 
 thoi-ized officers of such association, and shall be published, or the 
 substance thereof, in the annual report of the superintendent of the
 
 570 FRATERNAL SOCIETY LAW 
 
 insurance department under a separate part entitled "Fraternal 
 beneficiary associations," and shall contain answers to the follow- 
 ing questions: 
 
 1. Number of certificates issued during the year, or members 
 admitted. 
 
 2. Amount of indemnity affected thereby. 
 
 3. Number of losses or benefit liabilities incurred. 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representa- 
 tives or heirs. 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 8. Number and kind of claims compromised or resisted, and brief 
 statement of reasons. 
 
 9. Does association charge annual or other periodical dues or 
 admission fees? 
 
 10. How much on each one thousand dollars, annually or per 
 capita, as the case may be. 
 
 11. Total amount received, from what source, aud the disposition 
 thereof. 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does association guarantee in its certificates fixed amounts 
 to be paid, regardless of amount realized from assessments, dues, 
 admission fees and donations? 
 
 14. If so, state amount guaranteed, and the security of such 
 guarantee. 
 
 15. Has the association a reserve or emergency fund? 
 
 16. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested. 
 
 17. Has the association more than one class? 
 
 18. If so, how man.v, and the amount of indemnity in each? 
 
 19. Number of members in each class. 
 
 20. If voluntary, so state and give date of organization. 
 
 21. If organized under the laws of this State, under what law 
 and at Avhat time; giving chapter and .vear and date of the ])assage 
 of the act.
 
 THE HTATE OF MIUHOVHl 571 
 
 l!2. li' organized tiiidci- llic liivvs nt' any otlu'r Slate, province or 
 territory, state such fact and the date of organization, giving chapter 
 and year and date of passage of the act. 
 
 23. Number of certificates of beneficiary nienibersliip lapsed dur- 
 ing tlie year. 
 
 24. Number in force at beginning and end of .year; if more than 
 one class, number in each class. 
 
 25. Names and addresses of its president, secretai'v and treay 
 lire!', or corresponding officers. 
 
 Tile superintendent of the insurance department is authorized and 
 empowered to address any additional inquiries to any such associa- 
 tion in relation to the matters embraced in such i-eport. and such 
 officers of such association as the superintendent of the insurance 
 department may require, shall promptly reply in writing, \uuler 
 oath, to all such inquiries. (Laws 1897. p. 132.) 
 
 Service of Process on Fraternal Beneficiary Associations. 
 
 Section 1412. Each such a.ssociation now doing or hereafter ad- 
 mitted to do business within this State and not having its principal 
 office in this State, and not having organized under the laws of this 
 State, shall appoint, in writing, the superintendent of the insurance 
 department and his successors in office to ]>e its true and lawful 
 attorney, and upon whom all lawful process in any action or pro- 
 ceeding against it may be served, and in siudi writing shall agree 
 that any lawful process against it which is served on said attorney 
 shall be of the same legal force and validity as if served upon the 
 association, and that the authorit.v shall continue in foi'ce so long as 
 any liability remain outstanding in this State. Copies of such cer- 
 tificate, certified by said superintendent of the insurance depart- 
 ment, shall be deemed sufficient evidence thereof, and shall be ad- 
 mitted in evidence with the same force and effect as the original 
 thereof might be admitted. Service upon such attorney shall be 
 deemed sufficient service ujion such association. When legal process 
 against any such association is served upon said superintendent of 
 the insurance department, he shall immediately notify the associa- 
 tion of such service by letter, prepaid and directed to its secretary 
 or corresponding officer, and shall, within two days after such serv-
 
 572 FRATERNAL SOCIETY LAW 
 
 ice, forward in the same manner a copy of the process served on 
 him to such officer. The phiintiff in such process so served shall 
 pay the superintendent of the insurance department at the time of 
 such service a fee of $3.00, which shall be recovered by him as a 
 part of the taxable costs, if he prevails in the suit. The superin- 
 tendent of the insurance department shall keep a record of all 
 process served upon him. which record shall show the day and hour 
 when such service was made and by whom made. (Laws 1897, p. 
 "132.) 
 
 Section 1413. Id. In case of a vacancy in the office of the super- 
 intendent of the insurance department, or in case of the absence, 
 inability, or suspension of such superintendent, the service upon a 
 ieputy, appointed under the provisions of section 5796 of the Re- 
 rised Statutes of Missouri of 1889, or the e.xercise of such deputy 
 of the powers and duties of such superintendent, shall be valid 
 md sufficient for the purposes of this act. (Laws 1897, p. 132.) 
 
 Permit to do Business, How Obtained. 
 
 Section 1414. The superintendent of the insurance department 
 of this State shall, upon the application of any association having: 
 the right to do business within this State, as prr.vided by this act, 
 ^ssue to such association a permit, in writing, authorizing such asso- 
 ciation to do business within this State, for which certificate and 
 ill Tjroeeedings in connection therewith such association shall pay 
 to said superintendent of the insurance department the fee of $"1.00. 
 (Laws 1897, p. 132.) 
 
 How Incorporated. 
 
 Section 1415. Fraternal beneficial associations .shall be incorpo- 
 rated in manner as now is or may he hereafter pro\ided by law. 
 (Laws 1897, p. 132.) 
 
 Associations Shall Not Employ Agents, When 
 
 Section 1416. S\ich association shall not employ jiaid agents in 
 soliciting or procuring members except in the organization or build-
 
 THE (STATE OF MISSOURI 573 
 
 ing up of subordinate bodies or grauting- members inducements to 
 procure new members. (Laws 1897, p. 132.; 
 
 Contract of Beneficiary to Pay Dues, EfTect of. 
 
 Section 1417. No contract between a membtr and his beneliciary, 
 that the beneliciary, or any person for him, sha]l pay such member's 
 assessments "and dues, or eithei' of tliem, shall give the beneficiary 
 a vested right in the benefit certificate, or in tl.o benefit or deprive 
 the member of the right to change the name of the beneficiary, or 
 revoke the certificate, if any, issuetl by the ass Delation : Provided, 
 that such change or revocation be done by writteti or printed notice 
 to the association in the manner and form provided for by its by- 
 laws. (Laws 1897, p. 132.) 
 
 Benefits Not Liable to Attachment, Execution or Other Process, Etc. 
 
 Section 1418. The money or other benefit, charity, relief or aid 
 already paid or to be paid, provided or rendered b/ any association 
 authorized to do business under this act shall not be liable to attach- 
 ment or execution by trustee, garnishee or other process, and shall 
 not be seized, taken, appropriated or applied by an> legal or equit- 
 able process, or by the operation of law, to pay any debt or liability 
 of a certificate holder or of any beneficiary named in a certificate, 
 or any person who may have any right thereunder. (Laws 1897, 
 p. 132.) 
 
 May Provide for Meeting of Legislative Body in Any Other State — 
 Votes of Subordinate Bodies in Other States. 
 
 Section 1419. Any such association organized under the laws of 
 this State may provide for the meeting of its legislative or govern- 
 ing body in any other State, province or territoi'y wherein such 
 associations shall have subordinate liodies, and all business trans- 
 acted at sueli meetings shall be valid in all respects, as if such meet- 
 ings were held within this State, and where the laws of any such 
 association provide for the election of its officers by votes to be 
 cast in its subordinate bodies, the votes so cast in its subordinate
 
 674 FRATERNAL SOCIETY LAW 
 
 bodies in any other State, province or territory shall he valitl as if 
 cast within this State. (Laws 1897, p. 132.) 
 
 Penalty for False and Fraudulent Statement. 
 
 Section 1420. Any person, officer, member or examining physi- 
 cian who shall knowingly or wilfully make any false or fraudulent 
 statement or representation in or with reference to any application 
 for membership, or for the purpose of obtaining any money or bene- 
 fit in any association transacting business under this act, shall be 
 guilty of a misdemeanor, and upon conviction, shall be punished 
 by a fine of not less than $100 nor more than $500, or by imprison- 
 ment in the county jail for not less than thirty days nor more 
 than one year, or both, in the discretion of the court; and any 
 person who shall wilfully make any false statement of any material 
 fact or thing in a swoi'u statement as to the death or disability 
 of a certificate holder in any such association for the purpose of 
 procuring payment of a benefit named in the certificate of such 
 holder, and any person who shall willfully make any false state- 
 ment in any verified report or declaration, under oath required or 
 authorized by this act, .shall be guilty of perjury, and shall be pro- 
 ceeded against and punished as provided by the statutes of this 
 State in relation to the crime of perjury. (Laws 1897, p. 132.) 
 
 Penalty for Refusing or Neglecting to Make Report — Duty of Super- 
 intendent of Insurance — Injunction, Etc. 
 
 Section 1421. Any such association refusing or neglecting to 
 make the report as provided in this act, or to appoint the superintend- 
 ent of the insurance department as its true and lawful attorney for 
 the purpose of this act, shall be excluded from doing business witliin 
 this State. Said superintendent of the insurance department must, 
 within sixty days after failure to make such report, or in any case 
 any such association shall exceed its powers, or shall conduct its 
 business fraudulently, or shall fail to comply with any of the pro- 
 visions of this act, give notice, in writing, to the attorney-general, 
 who shall immediately commence an action against any such asso- 
 ciation to enjoin the same from cai'ryinu' on any business. And
 
 THE STATE OF MISSOURI 575 
 
 no injunction against any sueli assoeialion shall be gr-anti'(| hy any 
 court, except on application by the alorney-general at the re(|iiest of 
 the .superintendent of the insurance department. Xo association 
 so eii.joined shall have authority to contimu' busiiU'ss until such 
 report shall be made, or overt act oi' violations rdinphiined of shall 
 have been corrected, nor until the (M)sts of such action be paid by 
 it: Provided, the court shall tind that such association was in 
 default as charged. Whereupon the superintendent of the insur- 
 aiu'c department shall reinstate sueli assoeiation, ;ind not until 
 then shall such association be allowed to again tlo business in this 
 State. Any officer, agent or person acting for any association or 
 subordinate body thereof within this State, while such association 
 shall lie so enjoined or prohibited from doing business pursuant 
 to this act, shall be deemed guilty of a misdemeanor, and on eon- 
 viction thereof, shall be punished by a tine not less than -$2.5 nor 
 more than $200, or by imprisonment in the county jail for not less 
 than thirty days nor more than one year, or by both such fine and 
 imprisonment, in the discretion of the court. (Laws 1897, ji. 132.) 
 
 Failing to Comply With Article — Agent Guilty of Misdemeanor. 
 
 Section 1422. Any person who shall act within this State as an 
 officer, agent or otherwise for any association which shall have 
 failed, neglected or refused to comply with, or sliall have violated 
 any of the provisions of this act, or shall have failed or neglected 
 to procure from the superintendent of the insurance department 
 a proper certificate of authority to transact business as provided 
 for by this act, shall be subject to the penalty provided in the last 
 preceding section for the misdemeanor therein specified. (Laws 
 1897, p. 132.) 
 
 Article Not Applying to Masons — Odd Fellows or Similar Orders. 
 
 Section 1423. This act shall not apply to or affect grand or sub- 
 ordinate lodges of Masons, Odd Fellows, or similar orders paying 
 only sick, disability or funeral benefits or any association not work- 
 ing on the lodge system, which limits its certificate holders or mem- 
 ber.ship to n particular class or to the em]iloyes nf n particular
 
 576 FRATERNAL SOCIETY LAW 
 
 town or city, designated firm, business house or corporation : Pro- 
 vided, that associations of commercial travelers and those employing 
 commercial travelers incorporated as fraternal benefit associations 
 or societies shall in all respects be subjected to the provisions of 
 this act. (Amended, Laws 1901.) 
 
 Be it enacted l)y the General Assembly of the State of Missouri, 
 as follows: 
 
 Section 1. If any foreign or non-resident insurance company, 
 corporation, association or concei'n of any kind, ineludhig fraternal 
 or beneficial associations or corporations and surety companies or 
 corporations, organized and incorporated under the laws of any 
 other State, territory or country, and doing business in this State 
 under the laws of this State regulating and authorizing the licens- 
 ing of any such company, corporation, association or concern by 
 the superintendent of the insurance department of this State, shall, 
 without the written consent, given and obtained after the filing 
 of such suit or proceeding in the State court, of the other party 
 to any suit or proceeding brought bj^ or against it in any court of 
 this State, whether suit or proceeding be pending in the State at 
 the time of, or be broiight after the taking effect of this act. remove 
 said suit or proceeding to any federal eoi;rt. or shall institute 
 any suit or proceeding against any citizen of this State in any 
 federal court, it shall be the duty of the superintendent of the 
 insurance department to forthwith revoke all authority to such com- 
 pany, corporation, association or concern, and its agents, to do 
 business in this State, and such company, eorjioratiou. association 
 or concern shall not again be authorized or permitted to do busi- 
 ness in this State at any time within five years from the date of 
 such revocation. And the superintendent shall publish such revo- 
 cation in at least six newspapers of large anil general circulation 
 in the State. Provided, however, that the revocation of such au- 
 thority shall not in any manner effect the duties and liabilities of 
 any such company, corporation, association or concern under any 
 policy or contract of insurance issued by it ]irior to and in force 
 at the lime of the revocation of such aiillmrily. 
 
 .Vpprnvcd :\[arcli 19. 1907.
 
 THE STATE OF MISSOURI 577 
 
 Suicide Provision in Contract Valid. 
 
 A section of the general insurance laws providing that suicide 
 shall not be a dofeiise to a life insurance contrMct, unless the member 
 contemplated suicide when he made application therefor, was held 
 not to be applicable to a fraternal society in a suit upon a certificate 
 issued under the fratenini licneficiary law of Missouri which was 
 adopted in 1897. 
 
 Tice vs. Supreme Lodge Knights of Pythias, May. 1907, Supreme 
 Court of Missouri. 102 S. W. 1013. 
 
 All Members Not Required to be Benefit Members. 
 
 It is not uecessai-y that all of the memliers of a fraternal society 
 shall carry insurance certificates, a part only may carry such cer- 
 tificates. Such of the members as do may be segregated into a class 
 by themselves separate from the other members of the society. 
 
 Westerman vs. Supreme Lodge Knights of Pythias. June. 1906. 196 
 Mo. 670. 
 
 Fraternal Society Defined. 
 
 It is only essential to constitute* a society a fraternal beneficiary 
 association within the meaning of the statute that it shall be or- 
 ganized for the benefit of its members, not for gain or profit, shall 
 have a representative formed on government, ritualistic form of 
 work, and make provision for the payment of benefits in the case 
 of the death of its member. 
 
 Westerman vs. Supreme Lodge Kniglits of Pythias, June. 1906, 196 
 Mo. 670. 
 
 Fraternal Society Contracts Subject to be Forfeited. 
 
 The certificates issued in a society do not fall within the provision 
 of the non-forfeiture insurance statutes of this State. That statute 
 is limited in its application to regular or old line life insurance 
 companies. 
 37
 
 578 FRATERNAL SOCIETY LAW 
 
 Westerman vs. Supreme Lodge Knights of Pythias, June, 1906, 196 
 Mo. 670. 
 
 Long Established Custom Aid in Construction of Statutes. 
 
 The ruling of the insurance department of the State and the legal 
 profession, and the acquiescence of the people generally of the State 
 for more than a quarter of a century after the enactment of the 
 non-forfeiture statute, that the same is not applicable to contracts 
 made in fraternal societies, standing alone by themselves and do not 
 furnish satisfactory grounds for so holding; but for other reasons 
 which can be assigned to the effect that it is not so applicable ; such 
 rulings furnish aid and support to the soundness of the reasons. 
 
 Westerman vs. Supreme Lodge Knights of Pythias. June. 1906, 196 
 Mo. 670. 
 
 Obligations and Benefits Flexible and Subject to Change. 
 
 The payments due from members and the benefits to be paid by the 
 society are neither unalterably fixed nor definitely fixed and un- 
 changeable when the society in its agreements has provided that 
 they are subject at all times to be changed, in accordance with tfie 
 reserve power in the society to amend its laws. 
 
 Westerman vs. Supreme Lodge Knights of Pytliias. June. 1906. 196 
 Mo. 670. 
 
 Fraternal Society Contracts Not Under State Non-Forfeiture 
 Statutes. 
 
 Whether or not any of the provisions of the general insurance laws 
 of the State are applicable to contracts made by fraternal societies, 
 depends in part upon the form of tlie contract and its terms and in 
 part ujion thi> provisions of the laAV involved. Certain provisions of 
 the general insurance laws may be broad enough to embrace such 
 contracts, but a benefit certificate which complies with the pro- 
 vision of the laws governing fraternal societies, is not subject to the 
 non-forfeiture provisions of the freiici'al insurance laws.
 
 THE STATE OF MISt<OURI 579 
 
 Westerman vs. Suprenie Lodgo Knights o£ Pythias, June. li)ii»;. 196 
 Mo. 670. 
 
 Beneficiaries Have no Vested Interests. 
 
 The beiicliciaries of iiicmbiTs of a fraternal society have im Nc^sted 
 interest in the eontracts, and hence the act of 1897, e-Kenijiting fra- 
 ternal societies from the general insurance laws, nuiy he made to 
 apply to the contracts then in force without impairing the obliga- 
 tions of the contract, or being retrospective in so far as the bene- 
 tieiaries are concerned. 
 
 Westerman vs. Supreme Lodge Knights of Pythias, .June, IDni;. 196 
 Mo. 670. 
 
 Contract Forfeited Under Amended Law — No Damages Recoverable 
 for Failure to Obtain Insurance. 
 
 When a life instirance company has declared a member's contract 
 forfeited for non-payment of an increased rate or premium from that 
 charged at the time the contract was made, the member is not en- 
 titled to recover damages due to his inability to obtain further life 
 insurance ou account of his advanced age, such damages being too 
 remote and speculative to constitute the foundation foi- a legal 
 cause of action. 
 
 Ijams vs. Provident Savings Life Assurance Society, Deeemljer. 1904, 
 185 Mo. 466. , 
 
 Definition of "Level Rate" Contract. 
 
 As to what is meant by a level rate contract of insurance, see 
 
 Ijams vs. Provident Savings Life Assurance Society, December. 1904, 
 185 Mo. 466. 
 
 Forfeiture, Self-executing Provisions. 
 
 When tlie laws of a society provide that failure to pay dues for a 
 month after which they are due shall operate to suspend the mem- 
 ber, his failure to make such payment ipso facto suspends him, and
 
 580 FRATERNAL SOCIETY LAW 
 
 no action is required on the part of the officials of the society. This 
 is true although the member may be delirious and unconscious at 
 the time the assessment became due. 
 
 Smith vs. Sovereign Camp Woodmen of tlie World. Dec, 1903. 179 
 Mo. 119. 
 
 Forfeiture of Member Delirious When Assessment Due. 
 
 For the facts in a case where the forfeiture of a member while 
 sick was alleged and also the fact concerning his reinstatement, see 
 
 Smith vs. Sovereign Camp Woodmen of the World, Dec, 1903, 179 
 Mo. 119. 
 
 « 
 
 Fraternal Societies Exempt From General Insurance Laws. 
 
 The fraternal act of 1879 was expressly limited to societies organ- 
 ized or to be organized under the provisions thereof, and had no 
 application to societies organized under the. laws of other states. 
 The act of 1889, exempting fraternal societies from the general in- 
 surance laws was held to expressly be confined to fraternal societies 
 organized under the laws of Missouri; that from 1881 to 1889 for- 
 eign societies were exempted, but from 1889 to 1897 they were uot 
 so exempted. 
 
 Kern vs. Supreme Council Legion of Honor, March, 1902. 167 Mo. 
 471, 
 
 The Kern case was cited and explained in We-stermaii vs. Su- 
 preme Lodge Knights of Pythias, 196 Islo. CuO. 
 
 Fraternal Society Laws May Restrict Liberty of Members. 
 
 Under the laws of the State members of any religious denomina- 
 tion may form a fraternal society and mny enact laws prescribing 
 that only members of a certain faith shall belong to such society 
 and may expel members for a failure to observe the duty pre- 
 scribed by the cluircb of such iMitli. By-laws with i-cspeet to such 
 matters dn not viohite the pi'dvisioiis of tlir l)ill of rights.
 
 THE STATE OF M/SHOllIil 581 
 
 Franta vs. Bohemian Roman Catholic Union, June. 1901, ]fi4 Mo. 304. 
 
 Distinctions Between Old Line and Assessment Insurance. 
 
 As to the distinctions between ;i ])iirely assessment insurance so- 
 ciety and an old line company, but luit discussing fraternal society 
 questions, see 
 
 Aloe vs. Fidelity Mutual Life Association, Feb., 1900, 164 Mo. 675. 
 
 Fraternal and Assessment Societies Exempt From General Insurance 
 Statutes. 
 
 Under the act of 1889 jjrovidint;- that suicide should not be a 
 defense unless the member contemplated suicide at the time of 
 joining the society, was held not to apply to assessment societies nor 
 to fraternal societies. 
 
 Toomey vs. Supreme Lodge Knights of Pythias, Dec, 1S98, 147 Mo. 
 129. 
 
 Contract — Nature of Determines Character of Society. 
 
 The classification of an insurance company is not determined by 
 its name, but by its contract; and where the premiums are fixed 
 and the benefits are likewise fixed, the contract is that of an old line 
 insurance society under the statutes enacted in 1889. 
 
 Toomey vs. Supreme Lodge Knights of Pythias, Dec, 1898. 147 Mo. 
 129. 
 
 Assessments, Definite and Fixed. 
 
 For an opinion discussing life iusurauce upon the assessment plan, 
 fixed premiums, immaterial misrepresentations, etc., see 
 
 Jacobs vs. Omaha Life Association, Dec, 1898. 146 Mo. 523.
 
 582 FRATERNAL iiOVlETY LAW 
 
 Assessment, Receipt of Acknowledged in Contract Not Subject to 
 be Questioned. 
 
 Where a contract recites the payment of premium the society will 
 not he permitted to deny the receipt of such premium, and the con- 
 tract will be held to be in force for the length of time covered by 
 the receipt, whether the premiums were paid or not. 
 
 Dobyns vs. Tte Bay State Beneficiary Association, May. 1898. 144 
 Mo. 95. 
 
 Assessment Plan of Insurance, What is. 
 
 The Inirden of proof is on the society to show that it is on the 
 assessment jtlan when such fact is put in issue by the pleadings. 
 What is an assessment society is discussed by the conrt in this case. 
 
 Jacobs vs. Omaha ^^ife Association, Dec, 1897, 142 Mo. 49. 
 
 Contract, When Regarded as Made in Missoviri. 
 
 For the facts in a case upon a benefit certificate where evidence 
 was considered and held sufficient to sustain a verdict that the in- 
 sured was a resident of the State of Missouri so, as to render the 
 statute.s of that State apjilicable to the construction of the contract 
 in spite of the fact that the member's application gave his residence 
 as Kansas, see 
 
 Kroge vs. Modern Brotlierhood of America. Kansas City Court ot 
 Appeals, Dec, 1907, 105 S. W. 685. 
 
 Society Making Certificates Payable to "Legal Representatives," 
 Not a Fraternal Society. 
 
 A foreign fraternal society authorized to issue certificates payable 
 to the legal representatives of the member is held not to be a fra- 
 ternal beneficiary society under the laws of this State. 
 
 Kroge vs. Modern Brotherhood of America, Kansas City Court ot 
 Appeals. Dec, 1907. 105 S. W. 685.
 
 THE UTATE OE MISSOURI 583 
 
 Certificate, Presumption as to Amount of One Assessment. 
 
 In an action on a certificate for $1,000, in the absence of proof 
 of what would have been the proceeds of an nssossmoiit it will be 
 presumed that an assessment would have paid in full the amount 
 named in the certificate. 
 
 Kroge vs. Modern Brotherhood of Ameriia. Kansas City Court of 
 Appeals, Dec, 1907, 105 S. W. 685. 
 
 Proofs of Death Waived by Denial of Liability. 
 
 An insurer waives proof of loss by denying liability on a contract. 
 
 Hays vs. General Assembly, American Benev. Assn., St. Louis Court 
 of Appeals, Oct., 1907, 104 S. W. 1141. 
 
 Foreign Society, Requisites of Pleading and Proof. 
 
 A foreign society wh.en sued on a certificate issued by it, in order 
 to I'eceive the benefit of the laws and rules of construction pertain- 
 ing to death benefit certificates issued by fraternal societies, must 
 plead and prove not only that it possesses the essential qualifications 
 of such a society, as prescribed by the statutes of this State, but 
 also that it has been admitted to do business in this State in the 
 manner provided by law. 
 
 Gruwell vs. National Council, Knights and Ladies of Security, Kan- 
 sas City Court of Appeals, Oct.. 1907, 104 S. W. 884. 
 
 Forfeiture for Non-payment Must be Based on Agreement. 
 
 Stipulations in the contract of insurance providing that non-pay- 
 ment of premiums shall, ipso facto, work a forfeiture without notice 
 to the delinquent, are enforcible, but in the absence of any stipula- 
 tion for forfeiture on the ground of non-payment, the contract re- 
 mains in force during the lifetime of the insured, however de- 
 linquent he may become wnth respect to agreed payments. 
 
 Gruwell vs. National Council. Knights and Ladies of Security, Kan- 
 sas City Court of Appeals, Oct., 1907, 104 S. W. 884.
 
 584 FRATERNAL SOCIETY LAW 
 
 Evidence, Privilege of Physicians Waived. 
 
 Where the applicant in his application expressly waived for him- 
 self and his beneficiaries benefits of all laws disqualifying any physi- 
 cian from testifying concerning any information obtained in a pi'o- 
 fessional capacit.y, neither the member nor his beneficiary can object 
 to the testimony of a physician whom the member had consulted 
 professionally. 
 
 Modern Woodmen of America vs. Angle, St. Louis Court of Appeals, 
 June, 1907, 104 S. W. 297. 
 
 Conditions Precedent, Truthfulness of Statements. 
 
 An application for a certificate required the applicant to answer 
 whether within seven years he had consulted a physician as to 
 personal ailment, and if so to give dates, ailment, duration of attack, 
 physicians' names and addresses, and to state whether the recovery 
 was complete. The application further provided that the answers 
 should be treated as warranties, and the certificate issued made the 
 application a part thereof and provided that the same should be 
 void if the answers were not true. Held, that the truthfulness of 
 the answers to such questions was a condition precedent to the en- 
 forcement of the contract, so that, the member having omitted to 
 disclose that he had consulted a certain physician for hemorrhages 
 sixty days before the date of the application, the certificate was 
 void. 
 
 Modern Woodmen of America vs. Angle, St. Louis Court of Appeals, 
 June, 1907, 104 S. W. 297. 
 
 Member Bound by Statements in Application. 
 
 "With respect to the binding force of the application and the 
 information contained therein the Court announced the following to 
 be the rule : 
 
 "Now, it is well established in the bnv of insurance that when the 
 agent has written down untrue answers to such questions, even 
 though it be done without the knowledge of the insured, and the
 
 I 
 
 THE STATE OF MISSOURI 586 
 
 insured is furnished a copy of the application containing such un- 
 true answers annexed to the policy, he is afterwards estopped from 
 denying knowledge thereof. The doctrine of course proceeds on the 
 theory that it is the duty of the insured to use reasonable diligence 
 ill discovering the contents of the contract, and it is said upon dis- 
 covering the same it becomes his duty to notify the company of such 
 fraud perpetrated upon both himself and the insurer. At any rate, 
 if he hold the policy, referring in apt terms to the warranties con- 
 tained in the application annexed, for a reasonable length of time, 
 he is conclusively j)resumed to know the contents of the contract and 
 the untruthful answers pin inly written in the application, and is 
 thereby estopped to tissert that he had no knowledge on the sub- 
 ject." 
 
 Modern Woodmen of America vs. Angle. St. Louis Court of Appeals, 
 June, 1907, 104 S, W. 297. 
 
 Foreign Society, Suicide Provisions Valid. 
 
 An application for insurance in a fraternal society which had not 
 been authorized to do business in this State provided that if the 
 applicant dies by suicide no indemnity should be paid : that he should 
 be governed by the by-laws then in force or thereafter enacted limit- 
 ing the rights of his beneficiary ; and Avhere the by-laws at the time 
 of his application and until the time of his death provided that 
 suicide .should void the contract, and after the certificate was issued 
 the society complied with the law authorizing it to do business in 
 this State, it was held that when the insured committed suicide there 
 was good defense to an action on the contract. 
 
 Schmidt vs. tJnited Order of Foresters, April, 1907, 124 Mo. App. 165. 
 
 Suicide Provisions Valid. 
 
 Where the application for insurance and the by-laws of the society 
 showed it to be a fraternal society, it was entitled to immunity from 
 the provisions of Section 7896 relating to suicide, conferred upon 
 fraternal societies by Section 7913. 
 
 Schmidt vs. tJnited Order of Foresters, April, 1907. 124 Mo. App. 165.
 
 586 FRATERNAL SOGIETT LAW 
 
 After-enacted Laws Valid. 
 
 The rule that a fraternal society cannot by a by-law enacted sub- 
 sequent to the issuance of the certificate, take away part of the bene- 
 fit provided for in the certificate, does not apply in a case where the 
 society was not admitted to do business in the State at the time of 
 the issuance of the certificate as a fraternal society, but subsequently 
 qualified, and where it was shown that the intention of the member 
 was that he should be bound by such laws. 
 
 Schmidt vs. United Order of P^oresters, April, 1907, 124 Mo. App. 165. 
 
 After-enacted Laws Valid When Within Terms of AgTeement. 
 
 A member of a fraternal society is boinid by such reasonable regu- 
 lations and by-laws of the society, adopted after he becomes a mem- 
 ber, as are clearly contemplated by his agreement. 
 
 Lewine vs. Supreme Lodge, Knights of Pythias, Feb., 1907, 122 Mo. 
 App. 547. 
 
 After-enacted Suicide Law Not Binding, When. 
 
 Benefit certificates are essentially contracts of insin-aiice and are 
 controlled by the laws governing the construction and interpretation 
 of contracts generally, and cannot be altered or modified by the 
 society issuing same without the express assent of the members ; but 
 the holder of a certificate may by express contract bind himself by 
 such future by-laws as may modif.y his contract of insuratice. Where, 
 in the application for membership, the member had agreed that 
 "this contract shall be controlled by all the laws, rules and regula- 
 tions of the order now in force or that may hereafter be enacted," 
 it was held not to empower the society to enact a by-law reducing the 
 amount to be paid in case the member committed suicide. 
 
 Lewine vs. Supreme Lodge, K. of P., Feb., 1907, 122 Mo. App, 547. 
 
 After-enacted Laws, How Far Binding. 
 
 A member of a fraternal society mav ae:ree in advance to be con-
 
 THE STATE OF MISSOURI 5j^7 
 
 trolled and governed by the ];ivvs then in forcr nr that may thei-cafti-r 
 be ennctcd by the society, but in this Statr i1 is held that siu'h an 
 ajirccnicnl applies (inly to Ihc (liitics of \]\o iiiciiiIkm- nial<in^' tin- 
 agreement, and docs not authorize the society . witlmul liis assent, 
 to change or modify his contract of insurance. 
 
 Zimmerman vs. Supreme Tent. Knipilits of the Maccabees, Feb., 1907, 
 122 Mo. App. 591. 
 
 St. Louis Court of Appeals Opinions Conflicting. 
 
 (It would sei-ni that the .St. Lonis ('ourt of Ajipeals. whieh handed 
 down oi)inions in the Lewine and tlie Zininiernian cases, supra, l>iith 
 on the same day (February o, 1907), is not altogether harmonious 
 on the doctrine of the validity and binding fdi'ce of after-enacted 
 by-laws. In the Lewine case the court expressly holds that an after- 
 enacted by-law may affect the amount of the benefit that a bene- 
 ficiary is to receive under his certificate, provided that apt language 
 has been employed in the agreement showing the assent of the 
 member to the condition that his benefit may be reduced; while in 
 the Zimmerman case the court seems to lay down the proposition, 
 broadly, that no agreement of the kind will be valid. — Editor.) 
 
 After-enacted Suicide Law Held Invalid as to Contracts in Force. 
 
 All application for membership in a fraternal society provided 
 that the member should be bound by the laws then in force or those 
 that might thereafter be adopted. A by-law then in force provided 
 that if a member committed suicide within five years after his ad- 
 mission, his beneficiary would be entitled only to the amount paid 
 in, and subsequently a by-law was enacted removing the limit of 
 time so that the beneficiary would receive only the amount paid in 
 if at any time the member suicided. A member committed suicide 
 after the expiration of five years from the date of his certificate, 
 and it was held that he was not bound by the change in the by-laws, 
 because its etiPect was to impair his contract, and that his beneficiary 
 could recover the full amoinit provided in his certificate. 
 
 Zimmerman vs. Supreme Tent, Knights of the Maccabees. Feb . 1907, 
 122 Mo. App. .591.
 
 588 FRATERNAL SOCIETY LAW 
 
 Forfeiture Requisites in Pleading. 
 
 An answer to an action on a certificate pleaded that the by-laws 
 required certain payments and that the member had not made the 
 same. Held, that the pleading was insnfificient, since it should set 
 out the laws of the State of its incorporation and its own laws 
 showing the requirement for such payment. 
 
 Johnson vs. Sovereign Camp, Woodmen of the World, June, 1906, 119 
 Mo, App. 98. 
 
 Assignment of Fund When Valid. 
 
 The beneticiai'y in a certificate entered into an agreement with 
 the deceased member's heirs whereby she agreed to divide the 
 amount sjiecified to be paid under the certificate when the same was 
 received. It was held there was no present transfer, and that the 
 heirs' rights were not to attach until some future time, and that 
 the contract was merely executory, since to make an assignment, 
 even in equity, the assignor must not retain any control over or 
 power to collect the fund. 
 
 Banholzer vs. Grand Lodge, A. O. U. W., June, 1906, 119 Mo. App, 177, 
 
 Beneficiaries, Classes Determined by Lawrs of Missouri. 
 
 No oue can become a beneficiary under a fraternal certificate who 
 does not belong to some one of the classes of persons named as such 
 in the statute. Wliere a society is organized in one State and per- 
 mitted to do business as a foreign corporation in another State, the 
 statute of the latter will determine who can be beneficiaries in cases 
 originating therein. 
 
 Dennis vs. Modern Brotherhood of America, June, 1906, 119 Mo. App. 
 210. 
 
 Forfeiture, Reinstatement, Requisites of. 
 
 The by-laws of a society reqiiired a lapsed member seeking rein- 
 statement to furnish a certificate of good health from the camp
 
 I 
 
 THE /STATE OF MWSOUlil 689 
 
 physician ou a pru.surilied I'onn, after medical examination. A lapsed 
 iiieiiilxT spent three hours in otiier business with the cam]) physician, 
 ami siihsc((iiriil ly on the same day wrote a eei'liliealr whirh tile 
 piiysiciau gave without examination. It was h(>ld that the camp 
 physician was the agent of the member, whose duty it was to have 
 liiiiiself I'xamiued in order to secure the certificate, and* that he 
 couhl nut be reinstati-cl until lie had submitted a trntiii'nl ci'ilificate, 
 since tlu' by-law was intended to protect thi? society from collusion 
 between tlie member and the camp physician. 
 
 Warner vs. Modern Woodmen of America. June, ll)i»i;, 119 Mo. App. 
 222. 
 
 Beneficiaries, Rule as to Changes of. 
 
 Where the constitution of a society provided tliat if a member 
 should fail to designate his beneficiary on the books of the society, 
 the death fund shoidd be paid to his heirs at law. the failure to 
 designate a beneficiar3' according to the nn'tinid provided in the 
 constitution, when such method was merely contractual and not en- 
 forced by the society, did not, ipso facto, operate as a designation 
 of the heirs at law within the meaning of the constitution so as 
 to require a compliance with the provisions of the constitution rela- 
 ting to a change of beneficiary in order to divest them of any right 
 so acquired. 
 
 St. Louis Police Relief Assn., vs. Tierney. Jan.. 1906, 116 Mo. App. 447. 
 
 Beneficiary, Designation Required. 
 
 Where a member designated his wife as his beneficiary, and then 
 severed his connection with the society and afterwards became a 
 member a second time, the former designation had no force or effect 
 unless both the member and the society adopted it as the proper 
 designation under the second conti-act. 
 
 St. Louis Police Relief Assn., vs. Tierney. Jan.. 1906. 116 Mo. App. 447.
 
 590 FRATERNAL SOCIETY LAW 
 
 Beneficiaries, Changes of Made at Will by Member. 
 
 Section 1417 of the Revised Statutes of 1899, providing that no 
 contract between a member and his beneficiary shall give the bene- 
 ficiary a vested right in his certificate, has no retrospective opera- 
 tion. The beneficiary named has no vested interest when the law 
 governing fraternal societies neither expressly authorizes nor pro- 
 hibits a change of name of the beneficiary. A member may change 
 his beneficiary at will providing it is done according to the rules 
 and regulations of the society relating to such change. 
 
 Grand Lodge A. O. U. W. vs. O'Malley, Oct.. 1905. 114 Mo. App. 191. 
 
 Beneficiary, Equitable Vested Interest. 
 
 Where a beneficiary with her own means pays the assessments for 
 several years and keeps the certificate alive until the beneficiary is 
 changed, she is entitled to the amount expended Avitli interest out 
 of the fund arising from the certificate on the death of the member. 
 
 Grand Lodge A. O. U. W. vs. O'Malley. Oct.. 1905. 114 Mo. App. 191. 
 
 Beneficiary, Change of, Rule as to. 
 
 Where a member of a society does all in his power to conform to 
 the rules thereof in changing his beneficiary, the society may Avaive 
 a strict comjiliance with such regulations as are solely for its own 
 protection: so that a substantial compliance with its r\ilcs will be 
 sufficient. (This opinion conflicts with the decision of the Kansas 
 City Court of Appeals in Grand Lodge v. Ross, 89 Mo. App. 621.) 
 
 Grand Lodge A. O. U. W. vs. O'Malley. Oct.. 1905. 114 Mo. App. 191. 
 
 Beneficiaries, Classes in Missouri and Illinois Same. 
 
 A society organized under the Illinois act of 1883. becomes, under 
 the amendment of 1893, a fraternal society with beneficiaries corre- 
 sponding to the jMi.ssouri stafntc. aiul should be considered as a fra- 
 ternal society, since the anniuUd law is its charter and determines 
 its cliaracter.
 
 / 
 
 THE STATU OF MISSOURI 591 
 
 Pauley vs. Modern Woodmen of America, May, 1905, 113 Mo. App. 473 
 
 Occupation, Member Entering Against Prohibition. 
 
 A provision in a certificate to the effect that if the member en- 
 gages ill the sale of liquor.s tlie certificate should be foi'feited. is in 
 the nature of a warranty of his future course of conduct, and his 
 
 violation thereof precludes a r ivei-y on the certificate, without 
 
 regard to the action of the society. 
 
 Pauley vs. Modern Woodm'en of America. May, 1905. 113 Mo. App. 473. 
 
 Suspension When Wrongful, Tender of Dues Must be Made. 
 
 A member who has been wrongfully suspended and whose tender 
 of assessment has been refused is not thereby excused from further 
 obligation to perform, or offer to perform, his duties as a member. 
 
 Lavin vs. Grand Lodge A. O. U. W.. April, 1905, 112 Mo. App. 1. 
 
 Suspension, Acquiescence by Member in. 
 
 Where a society refused to accejit the payment by a member of 
 one month's assessment when twice tendered, advancing as a reason 
 that the amount tendered was insufficient, and wrongfully suspended 
 the member for non-payment, and he made no protest against his 
 suspension uor took any steps to procure a reinstatement, though the 
 society had ample provision for such procedure, and he made no 
 further tenders for ten months, and died, he was properly treated 
 as having abandoned his membership, and his beneficiary could not 
 recover in an action on the certificate. 
 
 Lavin vs. Grand Lodge A. O. U. W., April, 1905, 112 Mo. App. 1. 
 
 Forfeiture, Agency of Local Officer, Waiver of Laws. 
 
 A member was injured on September 21 and died on the 26th. 
 His August assessments were still tuipaid. For ten years he had 
 not been prompt in paying his assessments, yet they were all paid 
 within the three months' limitation provided in the by-laws for his
 
 592 FRATERNAL SOCIETY LAW ^ 
 
 reinstatement, which by-laws suspended the certificate during the 
 non-payment of his assessments. After receiving the injury he 
 tendered his payments and they were refused. Held, that the de- 
 linquent ipso facto became suspended upon default, but under the 
 settled law of the State the society may waive compliance with its 
 laws, and that stipulations attempting to relieve the society from 
 such waivers are nugatory, and that the conduct of the parties justi- 
 fied a belief that the insurance continued in force notwithstanding 
 the member's delinquency. 
 
 Cline vs. Sovereign Camp, Woodmen of the World, April, 1905. Ill 
 Mo. App. 601. 
 
 Conflict in Laws, Those of Missouri Govern. 
 
 Where in construing a fraternal contract issued by a society or- 
 ganized under the laws of a foreign State, it is found that the laws 
 of that State and of Missouri are different, those of the latter State 
 control. 
 
 Herzberg vs. Modern Brotherhood of America. March, 1905, 110 Mo. 
 App. 328. 
 
 Contract Determines True Character of Society. 
 
 The contract issued by a society determines whether it operates 
 under the fraternal beneficiary law or under the general insurance 
 law; and the fact that it calls itself a fraternal society, or that it 
 has a permit to do business as such, cannot affect the question. 
 
 Herzberg vs. Modern Brotherhood of America, March, 1905, 110 Mo. 
 App. 328. 
 
 Misrepresentation, Rule as to Pleading. 
 
 In order that a misrepresentation of the assured shall forfeit a 
 contract, it must bo averred and shown that the subject matter of 
 the misrepresentation caused the death, and the insurer must de- 
 posit in coiirl ilie premiums paid by the assured.
 
 THE STATE OF MISSOURI 593 
 
 Herzberg vs. Modevn Brotherhootl of America, March. ISO.'). 110 Mo. 
 App. 328. 
 
 Construction of Contract Must Favor Member. 
 
 Where tliere is a coiitiiel l)etweeu the ])rovisions of a certificate, 
 or room for construction and interpretation, putting the obligation 
 of a warranty upon the assured should be avoided. 
 
 Offineer vs. Brotherhooil of American Yeomen. Nov., 1904, 109 Mo. 
 App. 72. 
 
 Beneficiary, Death Before Member, Rule as to. 
 
 Where the beneficiary named in the certificate dies before the 
 insured, and no other beneficiary is named, the proceeds of the 
 certilicate should be paid as the laws of the society direct in case no 
 beneficiary is designated. 
 
 Supreme Council, Royal Arcanum vs. Bevis, May. 1904, 106 Mo. App. 
 429. 
 
 Evidence, When Are Claimants Incompetent Witnesses. 
 
 Where the heirs of a deceased beneficiary, who was the wife of a 
 member, claimed the proceeds of the certificate under an alleged 
 agreement between the member and the beneficiary that the latter 
 should receive the money in payment of a loan made by her to him, 
 such heirs are not competent Avitnesses to prove the contract in an 
 action between the society and the administrator to determine the 
 disposition of the fund. 
 
 Supreme Council. Royal Arcanum vs. Bevis. May, 1904, 106 Mo. App. 
 429. 
 
 Forfeiture — Status at Death Determines Contract. 
 
 A certificate in a society provided that "any member failing to 
 pay his per capita tax when due. and his assessments within thirty 
 days, forfeits his benefit." Held, that failure to pay the tax and 
 .38
 
 694: FRATERNAL SOCIETY LAW 
 
 the assessment within the time limited must concur before forfeiture 
 can be declared, and that an announced intention of a member to 
 drop his insurance does not in itself change his legal status as a 
 member, and it is this legal status at his death that fixes the liability 
 of the society. 
 
 Hyatt vs. Legal Protective Assn., May, 1904, lOG Mo. App. 610. 
 
 After-enacted Laws How Far Binding. 
 
 Where a member in his application agreed to conform to the con- 
 stitution and rules of the order then in force or which might be 
 adopted thereafter, he is bound only by such changes of rules and 
 regulations as relate to his duties as a member of the society, and 
 not by changes which interfere with the essential provisions of his 
 contract of insurance, unless such modifications are made with his 
 express consent. 
 
 Sisson vs. Supreme Court of Honor, Jan., 1904. 104 Mo. App. 54. 
 
 Foreign and Domestic Societies Treated Alike. 
 
 Under the fraternal beneficiary statutes, foreign and domestic 
 societies are placed upon the same footing and are exempt from the 
 provisions of the general insurance laws, provided they comply with 
 the provisions of the said statutes. 
 
 Hudnall vs. Jlodern Woodmen of America, November. 1903, 103 Mo. 
 App. 356. 
 
 By-laws, Waivers of as to Payments Allowed. 
 
 Prompt payment of assessments may be waived by the society or 
 its agent, or by the course of dealing with the insured, notwith- 
 standing the contract provides that no alteration or disi-hai'yc of the 
 contract, waiver of forfeiture, or granting of ]ierniits of credits shall 
 b(> valid unless in wi'iting and signed by the ofHeers of the society. 
 
 Andre vs. Modern Woodmen of America. Novemljer. l!Mi3. 102 Mo. 
 App. 377. 
 
 I
 
 rut: tiTATE Of MISSOURI 595 
 
 Agency, True Rule as to and Extent of. 
 
 The law dctermioes whose agent one is from the source of his ap- 
 pointment ami the nature of his duties, and it is held tliat the clerk 
 of a local camp is the agent of the head eamp, thmigli the by-laws 
 stipulate he shall not be. 
 
 Andre vs. Modern Woodmen of America, November. 1903, 102 Mo. 
 App. 377. 
 
 / Suspension, Rule as to Waiver by Custom. 
 
 The failure of a mi'iiibei' fur more than three moiillis (o pay either 
 his regular monthly dues or special assessments would, under the 
 constitution of the society, suspend his membership; but such sus- 
 pension would br waived where it appeared that the society had 
 not been in the habit of enforcing the same. 
 
 Courtney vs. St. Louis 'Police Relief Assn., March. 1903, 101 Mo. App. 
 261. 
 
 After-enacted Laws Valid and Effect Contracts Existing. 
 
 A eei'tificate provided that on the death of the member the society 
 would pay to his beneficiary the amount of one assessment, not ex- 
 ceeding two thousand dollars, if the insured had complied with the 
 charter, constitution, by-laws. etc. It also provided that the express 
 condition upon which it was issued was that the beneficiary's rights 
 should be determined by the charter, constitution, laws, rules and 
 regulations of the society in force at the time the same was 
 pa.yable. After the issuance of the certificate a by-law was 
 adopted providing that a sum equal to one-fourth of a certificate 
 must be paid by members by assessments, failing which the deficit 
 would be deducted from the face value of the certificate. It was 
 held that the certificate issued contemplated the modification of the 
 rights of the parties by subsequent by-laws, and that the change 
 made was within the power of the society, though the member's eon- 
 sent was not obtained. 
 
 Richmond vs. Supreme Lodge, Order of Mutual Protection. January, 
 1903, 100 Mo. App. 8.
 
 596 FHATERNAL SOCIETY LAW 
 
 After-enacted Suicide Laws When Invalid. 
 
 Where a society has so interpreted its ooiitr;)pts as to render itself 
 liable thereunder though the member committed suicide while sane, 
 which contracts provide that the society should not be liable if the 
 member committed suicide within two years after the issuance of the 
 certificate, and the society by thereafter passing by-laws providing 
 that if the member committed suicide his beneficiary should be en- 
 titled to only one-half of the face of the contract, it could not be 
 contended that the certificate was invalidated bj' suicide on the 
 ground of public policy. 
 
 Morton vs. Supreme Council. Royal League. March, 1903, 100 Mo. 
 App. 76. 
 
 Common Law Presumed to be Same in Each State. 
 
 In an action on a certificate made in Illinois and subject to its laws, 
 and such laws relating to the defense urged were not pleaded, it 
 was held that the defendant's liability must be determined accord- 
 ing to the common law, and it is presumed that the common law 
 of another State is the same as in Missouri. 
 
 Morton vs. Supreme Council. Royal League. March, 1903, 100 Mo. 
 App. 76. 
 
 After-enacted Laws, When Not Binding. 
 
 A certificate bound the member to comply with all the laws and 
 usages of the society then in force or which might thereafter be 
 adopted by the society. At the time of the issuance of the certificate 
 one of the by-laws provided that if any member committed suicide 
 within two years, the society should be liable onlj' for one-half of the 
 face of the certificate. Thereafter the by-law was amended so as 
 to provide that if a member should suicide at any time his bene- 
 fieiai'v should receive only one-half oi*the certificate. Held, that 
 the i)rovisions of the certificate requiring compliance with future 
 regulations related only to such regulations as affected the mem- 
 ber's duties as a member, and that such member was not there- 
 i'<irr liMiind li\' Ihe b\-liiw as ainriidcd.
 
 THE HTATE OF MISSOURI 597 
 
 Morton vs. Supreme Council, Rolay League, March, 1903, 100 Mo. 
 App. 76. 
 
 After-enacted Laws, to What Extent Valid. 
 
 Where, by the terms of the ;ipi)lieatii)n, the upplieaiit agreed to 
 accept the certificate of membership when issued subject to all the 
 laws of the society then in force and that might be thereafter en- 
 acted, the Court held that the proper interpretation of the contract 
 and Uie true intent of the recital in the application were to render 
 obligatory upon the member only such after adopted laws which 
 were enacted for the conduct of the society, the duties of the mem- 
 bers, as such, and not such as seek to impair and a fleet the exist- 
 ing contracts of insurance. 
 
 Campbell vs. American Benefit Club Fraternity, March, 1903, 100 Mo. 
 App. 249. 
 
 Interpretation, Rules as to Conflicting in Diff"erent States. 
 
 While the rights of parties under a sister State are usuall.y meas- 
 ured by the laws of such State, even when the enforcement of the 
 contract may be sought in this State, yet an Appellate Court of this 
 State cannot adopt and yield to a mere interpretation of a contract 
 not confined in its performance to that State but susceptilile of ex- 
 ecution elsewhere in direct conflict with the laws of this State. 
 
 Campbell vs. American Benefit Club Fraternity, March, 1903, 100 Mo. 
 App. 249. 
 
 Initiation, Essential Condition to Liability. 
 
 Until one has been initiated into a local lodge of a fraternal so- 
 ciety, the society cannot rightfully issue a benefit certificate to him. 
 The statutes of the State require fraternal societies to have a lodge 
 system, and they intend that no person shall become a member of 
 such a society until be has been initiated into one of its lodges. 
 
 Hiatt vs. The Fraternal Home. Fteb., 1903. 99 Mo. App. 105.
 
 598 FRATERNAL SOCIETY LAW 
 
 Laws, Knowledge of Presumed. Waivers of Local Officers Not Fa- 
 vored. 
 
 Members of fraternal societies are presumed to know the by-laws 
 and regulations of the societies in regard to payment of dues and 
 assessments and to conform to them, and local secretaries have no 
 power to waive prompt paj-meut of such obligations or to' set aside 
 any other essential features of the contract although by cour.se of 
 business the chief officers of a society may tolei'ate waivers made by 
 local officials and may bind the society by such course of dealing in 
 violation of the provisions of the laws of the society. 
 
 Boyce vs. The Royal Circle. March, 1903, 99 Mo. App. 349. 
 
 Fraternal Society, Definition of in Missouri. 
 
 The question whether a society is a fraternal beneficiary society 
 as defined in the statute is to be determined alone by its charter and 
 the laws under which it operates ; and while a society may meet the 
 definition required of it in another State, such fact can give it no 
 rights pertaining to such societies in this State, unless it meet the 
 description required by the J\Iissouri statute. 
 
 Baltzell vs. Modern Woodmen ol; America, Feb., 1903, 98 Mo. App. 153. 
 
 Health Certificates, Waivers of. 
 
 The deceased, after default in his dues, made payment of such 
 arrears to the local Scribe, who promised to send him a blank health 
 sli]i to be filled out and to be returned by him to the Local Scribe, 
 which the deceased failed to do. This practice appeared in other 
 cases without objection from the society, and it was held to be a 
 waiver of the requirement that such health certificate should be fur- 
 nished at the time of pajing arrearages. 
 
 Cauveren vs. Ancient Order of Pyramids, Feb., 1903, 98 Mo. App. 433. 
 
 Evidence, Declarations of Member Admissible. 
 
 In his application foi' membership the insured stated he had never
 
 THE STATE OF MISSOURI 599 
 
 been intoxicated or had a hemorrhage. Held, on a trial wheif the 
 beneficiary sought to collect under the eertiiicate, that the member's 
 subsequent declarations to the contrary were admissible, since the 
 deceased was the opposite party to the contract, and the ease is dis- 
 tinguishable from ordinary life insurance. 
 
 Callies vs. Modern Woodmen of America, March, 1903, 98 Mo. App. 521. 
 
 Proofs of Death, Furnishing Blanks Does Not Waive Defenses. 
 
 That the society furnished blank proofs of loss to the beneficiary, 
 who went to the trouble and expense of making them, will not con- 
 stitute in itself a waiver where there was no knowledge that there 
 had been a misrepresentation as to the warranties in the appli- 
 cation. 
 
 Callies vs. Modern Woodmen of America, March, 1903, 98 Mo. App. 521. 
 
 Warranty, Misrepresentation as to Family History. 
 
 Where an applicant is required to give full answers to questions 
 as to family history, complete and literally true, and he fails to state 
 in his answer relating to his brotliers that' one was dead, the answer 
 is not fair and candid, and is a fraudulent concealment and tanta- 
 mount to a fraudulent misrepresentation. 
 
 Callies vs. Modern Woodmen of America, March, 1903, 98 Mo. App. 521. 
 
 Duel, Definition of. 
 
 The word "duel" in a benefit certificate has its ordinary sig- 
 nificance, and is a combat with deadly weapons between two per- 
 sons, with some pre-arrangement and understanding, and perhaps 
 with some formality. 
 
 Davis vs. Modern Woodmen of America, April, 1903, 98 Mo. App. 713. 
 Death in Violation of Law. 
 
 For the facts in a case showing death in violation of the criminal 
 law. See,
 
 600 FRATERNAL SOCIETY LAW 
 
 Davis vs. Modern Woodmen of America, April, 1903, 98 Mo. App. 
 713. 
 
 Absence for Seven Years, Death When Presumed. 
 
 The presumption of death arising from unexplained absence for 
 seven years does not necessarily imply that the person dies at the 
 end of that period. Circumstances may show the probability of his 
 death at an earlier date. The presumption of death from long ab- 
 sence is not an imperative rule of law where the circumstances of 
 the disappearance permit of any different inference. 
 
 Winters vs. Supreme Lodge, Knights of Pytliias, Aug., 1902, 96 Mo. 
 App. 1. 
 
 Proofs of Death, Waived by Refusal to Furnish and Denial of Lia- 
 bility. 
 
 A refusal to furnish blanks on which to make proofs of death is 
 held a waiver of such proofs, as is also an absolute denial of lia- 
 bility. 
 
 Winters vs. Supreme Lodge, Knights of Pytliias, Aug., 1902, 96 Mo. 
 App. 1. 
 
 Beneficiary — Has No Vested Interest. 
 
 A benefit certificate confers no vested interest in the beneficiary 
 named, nor has he any property in the certificate, since he is subject 
 to be displaced by the member naming another beneficiary at any 
 time during the life of the member. 
 
 Supreme Council, Royal Arcanum vs. Kacer, Aug., 1902. 96 Mo. App. 
 93. 
 
 Suspension — Rule as to Notice to Member of Charges. 
 
 A b.v-law provided that a nou-paying member .should be suspended 
 from his subordinate lodge by the acting presiding officer, and that 
 any subordinate lodge allowing surh delinquent to I'emain unsus-
 
 THE tiTATE OF MISSOURI 601 
 
 pended should pay liis assessment out of its general fund. The 
 subordinate lodge suspended the deceased because he had been 
 carried long enough b.y it, and made a record tliereof. At the same 
 time the Acting President, by oral declaration, declared him sus- 
 pended for non-payment of two certain assessments. Held, that the 
 action of the subordinate body did not suspend the member because 
 it had no jjovver to do so for the cause assigned, and that the action 
 of the acting presiding officer was insufficient to effect the sus- 
 pension for the reason that a member is entitled to notice and a 
 chance to defend himself when charges are preferred against him. 
 
 Seehorn vs. Supreme Council, Cath. Knights of America. June, 1902, 
 95 Mo. App. 233. 
 
 Suspension — Course of Dealing Affects. 
 
 A member of a society has a right to look to the conduct of the 
 business in the collection of assessments, particularly so as that con- 
 duct affects him, and if such conduct induces him to fall into the 
 habit of delay in his payments, the society cannot .suspend him with- 
 out warning. 
 
 Seehorn vs. Supreme Council, Cath. Knights of America. June, 1902. 
 95 Mo. App. 233. 
 
 Conflict between Certificate and Laws. 
 
 Where the certificate conflicts with the by-laws, the by-laws should 
 prevail over the certificate. 
 
 Howard vs. The Bankers' Union of the AVorld, May, 1902. 94 Mo. App. 
 442. 
 
 Good Health— Defined. 
 
 In a certificate the term "good health" means freedom from con- 
 stitutional or hereditary diseases, or other maladies, the tendency 
 of which is to permanently impair vitality and shorten life. 
 
 Howard vs. The Bankers' Union of the World, May, 1902, 94 Mo. App. 
 442.
 
 602 FRATERNAL SOCIETY LAW 
 
 Agency — As to Local Officials. 
 
 Notwithstanding the by-laws make the local secretaries agents 
 of members paying them, the real character of such secretaries will 
 be determined by the courts. 
 
 Howard vs. The Bankers' Union of the World, May, 1902, 94 Mo. App. 
 442. 
 
 Fraternal Societies Not Restricted to Assessment Business. 
 
 The in-ovisions of the Revised Statutes of 1899 relating to frater- 
 nal societies make it apparent that the legislature intended that 
 such societies should not be restricted to the assessment plan for the 
 purpose of raising funds to pay death losses, but that they might 
 raise funds by requiring the members to pay periodical dues, to be 
 fixed with reference to the age of the member and the amount of his 
 certificate, and that it is competent for the society to raise the mor- 
 tuary fund by dues or b.v assessment, or by both methods. 
 
 Morton vs. The Royal Tribe of Joseph, March, 1902, 93 Mo. App. 78. 
 
 Fraternal Societies — How Differing from Old Line. 
 
 For an interesting discussion as to the distinguishing character- 
 istics lietween fraternal insurance and old line insurance, see, 
 
 Morton vs. The Royal Tribe of Joseph, March, 1902, 93 Mo. App. 
 78. 
 
 Foreign Society — Rules as to When Not Authorized to do Business in 
 State. 
 
 A society organized in another State and doing business in this 
 State without complying with the laws thereof sub.jecting its officers 
 to the pains and penalties of the statute, must be held strictly ac- 
 countable and must pay beneficiaries of members full amount of 
 certificates issued to members, though the latter may suicide, not- 
 withstanding there may be provisions in the certificate to the con
 
 THE STATE OF MISSOURI 603 
 
 trary, since such contracts come undor the i^'ovisiinis of Section 
 780fi. Revised Statutes of 1899. 
 
 Brassfleld vs. Tlie Knights of the Maccabees, Jan., 1902, 92 Mo. App 
 102. 
 
 Beneficiary- — Rules as to Change. 
 
 Where the rules of a society prescribe foi-ms for eliauging bene- 
 ficiaries, such forms slionld be followed to the exclusion of all other 
 methods, and an attempt to change the beneficiary by some other 
 method is generally not sufficient or enforcible either at law or in 
 equity. 
 
 Grand Lodge A. 0. U. W. vs. Ross, June, 1901, 89 Mo. App. 621. 
 
 Expulsion for Misconduct Justified. 
 
 A member who feigns illness and thereb.v fraudulently obtains 
 sick benefits from his subordinate lodge, subjects himself by such 
 conduct to expulsion, in accordance with correct principles of law 
 and justice. 
 
 Slater vs. Supreme Lodge, Knights and Ladies of Honor, March, 1901, 
 88 Mo. App. 177. 
 
 "Paralysis" Definition of. 
 
 Paralysis, in medical nomenclature, is usually restricted to the 
 loss or impairment of volitntary muscular power, and is regarded 
 rather as a symptom than as a disease per se, and generally is 
 connected with a marked lesion of some portion of the nervous sys- 
 tem. 
 
 Yarbrough vs. National Benev. Society, April, 191)1. 8S Mo. App. 465. 
 
 Beneficiary — Married Adult Son Not a Dependent. 
 
 A son who has come to maturity and left the father's family 
 permanently, becomes an independent entity and is no longer a
 
 e04 FRATERNAL SOCIETY LAW 
 
 member of the father's family, and the father cannot be the bene- 
 ficiary of a certificate taken by his son. 
 
 Brower vs. Supreme Lodge, National Reserve Assn., March, 1901, 
 87 Mo. App. ei4. 
 
 "Heirs at Law" — Definition of — Widow is Heir. 
 
 Under the Missouri statute, the word "heirs," as applied to per- 
 sonalty, should be held to mean those who are entitled to it under 
 the statute of distribution in ease of intestacy, and this would in- 
 clude the widow, which makes her an heir at law in a limited sense 
 and entitles her. together with the daughter of the deceased member, 
 to take the benefit of his certificate payable to the member's heirs 
 at law. 
 
 Pleimann vs. Hartung, April, 1900, 84 Mo. App. 283. 
 
 "Death from Opiates" — Accidents not Excepted. 
 
 A certificate provided for a deduction in case of death caused 
 by the use of opiates, etc. The insured died from an overdose of 
 morphine taken to allay physical pain. Held, that this did not 
 exempt the society if the .jury found that the morphine was taken 
 to lessen pain, and it was proper to so instruct the juiy; for if it 
 was taken to relieve pain, the overdose is presumed to be uninten- 
 tional. 
 
 Renn vs. Supreme Lodge. Knights of Pythias, March, 1900, 83 Mo. 
 App. 442. 
 
 Forfeiture — Rights of Wronged Member. 
 
 Where a societ.y abandons its contract by wrongfuU.v refusing rein- 
 statement, and declares the contract forfeited, the member can 
 treat the contract as at an end and recover back his pa.vments with 
 interest; and he may do this notwithstanding the fact that man- 
 damus may be a proper remedj' for reinstatement of a lapsed mem- 
 ber. 
 
 Dickey vs. Covenant Mut. Life Assn.. .Tan.. 1900, 82 Mo. App. 372.
 
 rilK HTATE OF MISSOURI- 605 
 
 Fraternal Societies Limited in Power by Statute. 
 
 Benefit societies are creations of the statute, iiicaj)able of exer- 
 cising any power not therein expressed or clearly implied, and an 
 attempt to do so is ultra vires. 
 
 Ferbrache vs. Grand Lodge A. 0. U. W., Oct., 1899, 81 Mo. App. 268. 
 
 ' ' Family ' ' — Definition of. 
 
 The word "family" may be of narrow or broad meaning, as the 
 intention of the parties using it or as the intention of the law using 
 it may be made to appear, and where a son and his wife lived with 
 his father, being dependent upon him for their support during the 
 son's final illness, and subsefinently died without changing the re- 
 lation between himself and his father, the father and son belonged to 
 the same "family." 
 
 Ferbrache vs. Grand Lodge, A. O. U. W., Oct., 1899, 81 Mo. App. 268. 
 
 Dependency — Statutory Meaning. 
 
 A member surrendered his certificate, which was payable to his 
 wife, and had a new one issued payable to another party, who is 
 designated as being dependent upon him. For the facts in the case, 
 discussing the statutory meaning of "dependency," see 
 
 Grand Lodge A. 0. U. W. vs. Hanses, Nov.. 1899, 81 Mo. App. 545. 
 
 Beneficiary — Common Law Wife May Be. 
 
 After emigrating to America, the member was admitted to a 
 fraternal society and contracted a common-law marriage in this 
 country, having left behind him a lawful wife in Europe, who pre- 
 deceased him. He obtained a certificate payable to the common- 
 law wife, and it was held that she was competent to take the benefit 
 and entitled to it. 
 
 Busch vs. Supreme Tent, Knights of the Maccabees, Nov., 1899, 81 
 Mo. App. 562.
 
 606 FRATERNAL SOCIETY LAW 
 
 Corporations Chartered in Two States — Rights of. 
 
 A corporation may acquire franchises in different states at dif- 
 ferent times, and. the latter one will not. ipso facto, dissolve the 
 former, and both corporations may do biisiness in each State at the 
 same time. 
 
 Martinez vs. Supreme Lodge, Knights of Honor, Nov., 1S99, 81 Mo. 
 App. 590. 
 
 Beneficiary — No Vested Interest — Statute in Force at Maturity of 
 Contract Determines Rights Under Same. 
 
 While the member lived, the benefit certificate was an expectancy, 
 and no vested rights could accrue under it, but by his death the 
 benefit secured by the certificate became vested in the person desig- 
 nated in the certificate, if within the class ]iointed out by the stat- 
 ute competent to receive payment, and the statue in force at the 
 time wlien the certificate matured is to govern. 
 
 Supreme Council, Legion of Honor vs. NeicUet, Nov., 1899, 81 Mo. 
 App. 598. 
 
 Beneficiary — Right of Member to Designate New One. 
 
 A member has right to surrender his certificate and obtain a new 
 one designating therein a new beneficiary, and this may be done 
 as often and when the member cliooses, provided he complies with 
 the provisions of the laws of the society. 
 
 Supreme Lodge, Knights ami Ladies of Honor vs. Schworm, April, 
 1899, 80 Mo. App. 64. 
 
 Death from Absence — When Presumed. 
 
 The legal presumption of death permitted at common law upon 
 the lapse of seven years is also allowable before the expiration of 
 that period, if there is evidence tending to prove that death occurred 
 at an earlier date, or showing a greater probability of death than 
 life at the prior date.
 
 THE s'J'A'JH or .ly/NNOOA'/ 007 
 
 Carpenter vs. Supreme Council, J^cgion of Honor. April. 1899, 79 
 Mo. App. 597. 
 
 Courts Should Not Interfere With Societies. 
 
 Societifis being depondent ii|)()ii .•isscssiiiciils should Ix' jx'rmittcd 
 to adopt and enforce reasonable rules, mid llir courts onsht not to 
 interferes witli their adiuinisti'a.tiou execpl i'or the most iirc:ent 
 reasons. 
 
 State vs. Grand Lodge A. O. U. W., Feb., 1899. 78 Mo. App. 546. 
 
 Supreme and Subordinate Lodge Relations. 
 
 For a discussion of the relationship existiiiu' between grand and 
 subordinate lodges. See, 
 
 Puhr vs. Grand Lodge, German Order of Harugari, Nov.. 1898, 
 77 Mo. App. 47. 
 
 Expulsion, Strict Proceedings as to. 
 
 A member has a property interest in his membership in a society 
 ■when it carries insurance protection tlierein, and the laws of the 
 society and the procedure with reference to expulsion must be fol- 
 lowed before his membership can be terminated. 
 
 Slater vs. Supreme Lodge, Knights and Ladies of Honor, November, 
 1898, 76 Mo. App. 387. 
 
 Beneficiary — Rights of Creditor. 
 
 For the facts in a case where a creditor contested with the bene- 
 ficiary the rights of the latter to a fund due nnder a certificate, see 
 
 Sternberg vs. Levy, Nov., 1898, 76 Mo. App. 590. 
 
 Beneficiary — No Vested Rights until Maturity of Contract. 
 
 The interest of a beneficiary is a mere expectancy before the deatli 
 of the member, after which event it becomes vested. 
 
 Grand Lodge A. 0. U. W. vs. Reneau. :\Iay, isns, T.t Mo, App, 402
 
 608 FRATERNAL SOCIETY LAW 
 
 Beneficiaries, Change of — When Rules May be Waived. 
 
 Anterior to the death of a member, the society far whose benefit 
 the rules governing changes of beneficiaries are made may waive 
 compliance with any such rules on the part of their members and 
 thus validate attempts made to change beneficiaries which would 
 be inefliectual under strict rules of the order. 
 
 Grand Lodge A. 0. U. W. vs. Reneau, May, 1898, 75 Mo. App. 402. 
 
 After-enacted Laws — When Valid. 
 
 A certificate was issued subject to the existing laws of the society 
 and to changes to be made thereafter. Subsequent by-laws limited 
 the assessments to the member.ship in the division where the de- 
 ceased resided and changed the boundaries of such division, and 
 thereafter the beneficiary was not entitled to any assessment over 
 the membership in the original territory. The change of by-laws in 
 this case is held not to have removed the provision for sepai-ate 
 assessments on separate jurisdictions. 
 
 Brower vs. Supreme Lodge, National Reserve Assn., April, 1898, 
 74 Mo. App. 490. 
 
 After-enacted Laws — Valid if Provided for. 
 
 After-enacted by-laws which are within contemplation of the 
 minds of the parties at the time of the making of the contract, 
 are valid and may reduce the amount of the beneficiaries' claim. 
 
 Toomey vs. Supreme Lodge, K. of P., April, 1898, 74 Mo. App. 507. 
 
 "Family," Definition of— Status at Maturity of Contract Fixes 
 Rights of Persons. 
 
 A certificate was taken out payable to the mother of the member 
 with whom he resided at the time. Subsequently he married and 
 established a home of his own separate from tlie mother, \\ Iki was not 
 dependent upon him. The by-law.s provided for benefits to be jiaid 
 to the members of the family of the member. Held, that the word
 
 THE t^TATK OF MISSOURI 609 
 
 "family" did not iucludi: the iiiotlier, and that she Ix'came incapac- 
 itated to receive the benefit; that the status of the lieneficiary must 
 
 be siii'h at tile time of the death oi' a ineiriher as to hriiiu' her witldn 
 the purview of tiie l>yda\vs of a society. 
 
 Lister vs. Lister, Jan., 1898, 7o Mo. App. 99. 
 
 Suspension — Waiver of Rules as to by Member. 
 
 A member liolding a certificate may waive tlie formalities pre- 
 scribed by the society for his suspension or expulsion as against 
 the rights of his beneficiary. 
 
 Miller vs. U. S. Grand Lodge. Britli-Abraham, Dec, 1897, 72 Mo. App. 
 499. 
 
 Suicide — When Duty of Court to Direct Verdict. 
 
 Ill a suit on a certificate where the defense is suicide, under a 
 law of the society that should a member, sane or insane, commit 
 suicide within three years after becoming a member, his claim would 
 be null and void — held, that the defense was an affirmative one and 
 conclusively proven, and that the court erred in not directing a ver- 
 dict for the society. 
 
 Kornfeld vs. Supreme Lodge. Order of Mnitual Protection. December. 
 1897. 72 Mo. App. 604. 
 39
 
 610 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF MONTANA. 
 
 CHAPTER 27. 
 
 The State of Montana has not enacted any laws for the regnlation 
 of Fraternal Societies and such societies are therefore free from 
 legislative restrictions so far as Montana is concerned. The Supreme 
 Court of that State has been called upon but once to pass upon 
 questions peculiar to Fraternal Societies, but the clearness with 
 which the court in that case exhibited its knowledge of fraternal 
 law is most gratifying. 
 
 Beneficiaries — Changes of. 
 
 A member of a fraternal society has the right to change his bene- 
 ficiary Avhenever and as often as he pleases. ])rovided he eoni])lies 
 with the laws of the society governing such matters. 
 
 Knights of the Maccabees vs. Sackett. July. 1906, 34 Mont. 357. 
 
 Beneficiaries — Waiver of Laws Respecting Changes of. 
 
 A waiver of a contract pi'ovision r('(|uiriiiu- coiiqilinnce with the 
 by-laws of a fraternal societ.v governing changiii.c of liencticiaries 
 must have occurred during the lifetime of the member, and a 
 former beneficiary cannot take advantage of the non-full com- 
 pliance with the laws by the member, which laws have been waived 
 by the societ.v. 
 
 Kni.i^hts of tlic Maccatiees vs. Sackett. .Inly. lilOt;. 34 Mont. 357.
 
 THE HTATE OF MONTANA 611 
 
 Beneficiaries — Lav/s Must be Followed in Making Changes. 
 
 It is ;i geiKTMl I'Lilc that a tncmbcr must ])i'()(X't'(l in aiu'or'dancu 
 with the i-i'uu hit inns contained in the r-ertifieate and laws and a 
 material dexiatimi IVmii liie ecnirse liierein jiidieate(l will in\'alidate 
 tlic Iransfer. 
 
 Knights of the Maccabees vs. Sackett, Juiy, 1900, 34 Mont. ?.51. 
 
 Beneficiary — Change of Must be Complete Before Member's Death. 
 
 The fact that a written request for tlie chanji'e of beneficiary in a 
 certificate had been placed in the mail for delivery, and was actually 
 received within six hours after the death of a member, where the 
 laws re(|uired .such request to be delivered to a certain official 
 before any change could take place, could not affect the interests of 
 the beneficiary named in the certificate who is entitled to the amount 
 which became due u])on the death of the member, and the doctrine 
 that e(|uity will do what ought to be done was held not to ap])ly to 
 such case so as to require the society to recoo^nize the chang'e in the 
 laws attempted to be made. 
 
 Knights of tht Maccabees vs. Sackett. Jr.ly, IflOfi. .34 Mont. 3.")7. 
 
 Interpleader — Rights of Beneficiary not Affected By. 
 
 By paying into court the money due on a contract the society 
 waived failure of the member to comjily strictly with the laws of the 
 order governing the change of beneficiary, but such waiver cimld 
 not im])air the rights of the b(>neficiary which became vested ii])c)n 
 the death of the member. 
 
 Knights of the Maccabees vs. Sackett. July. i;i(i<i. 34 Mont. 3.57.
 
 612 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF NEBRASKA. 
 
 CHAPTER 28. 
 
 (The Section numbers employed correspond with tliose in the 
 Compiled Statutes for 1905'.) 
 
 Fraternal Beneficiary Associations. 
 
 Section 401:^. A fraternal beneficiary association is hereby de- 
 clared to be a corporation, society or voluntary association, formed 
 or organized and carried on for the sole benefit of its members and 
 their beneficiaries, and not for profit. Each such society shall have a 
 lodge system, with i-itunlistic form of work and representative form 
 •of government. 
 
 Objects — Saving Clause. 
 
 Section 4(ll)J. Such societies shall make provision for the payment 
 of benefits in case of death, and may make provision for the pay- 
 ment of benefits in case of sickness, temporary or permanent physi- 
 cal disaliility, either as a result of disease, accident or old age; 
 Provided, The period in life at which payment of physical disability 
 benefits on account of age commences shall not be under seventy 
 years. Provided, The payment of such benefits in all eases shall be 
 subject to eompiiance, by the member, with the contract, constitu- 
 tion, rules, and laws of the society; Provided, fnrther. That this act 
 shall not be construed to include fraternal orders which only provide 
 for sick and funeral benefits, nor any fraternal beneficiary society. 
 order or association now organized under the laws of this State until
 
 THE STATE OF NEBRASKA tjl3 
 
 January 1st. 1898; iioi- shall the contract between 1lie hnkler oi' any 
 certificate, or the beneticiai'ies of such certificates and the society, 
 ordei', or association issuing the same, contained in certificate issued 
 by any such society, order or association organized under the laws of 
 this State, prior to January 1st. 18!)8, he in any way affected by this 
 act. 
 
 Funds, How Created. 
 
 Section 4014. The funds from wliich the pa.yment of such benefits 
 shall be made, and the fund from which the expenses of such society 
 shall be defrayed, shall be derived from beneficiai-y calls, assess- 
 ments, oi- dues collected from its members. 
 
 Beneficiaries — Age of Members. 
 
 Section 4(115. No fraternal society created or organized under the 
 jii-ovisions of this act shall issue beneficiary certificate of member- 
 ship to any person under the age of eighteen years, nor over the age 
 of fifty-five years. Payment of death benefits shall only be made to 
 the families, heirs, blood relations, affianced liusband or affianced 
 wife of, or to persons (b^peiideiit upon the iiicmlier. 
 
 Effect of Statutes. 
 
 Section 4016. Such societies shall be governed by this act and 
 shall be exempt from the provisions of the statutes of this State re- 
 lating to life insurance companies except as hereinafter provided, 
 and no law hereafter passed shall ajiiily to them unless they be 
 ex]iressly designated therein. 
 
 Suits — Venue. 
 
 Section 4017. Such society may lie sued in any county in which 
 is kept their principal place of business or in which the beneficiary 
 contract was made or in which the death of the member occurred, 
 or in the county of the residence of such deceased member; but 
 actions to recover old age. side or accident benefits nuiy, at the 
 option of the beneficiary, be brought in the count.v of his residence.
 
 614 FRATERNAL SOCIETY LAW 
 
 Exemption from Execution, Attachment, Etc. 
 
 Section -K)18. The money or other benefit, charity, relief or aid to 
 he [)aid. provided or renth^red b\' any society authorized to do busi- 
 ness under this act, shall not be liable to attachment by trustee, 
 garnishee or other process, aud shall not be seized, taken, appropri- 
 ated or applied hy au\' leual or equitable process, or by operation of 
 law. to pay an.y debt or liability of a eei'tificate holder or of any 
 beneficiary named in a certificate, or of an.v person who may have 
 any right thereunder. 
 
 Existing Societies. 
 
 Section 4(119. All such societies org-anized under the laws of this 
 or any other State, territory or province, and now doing' business in 
 this State, may continue such business provided they hereafter com- 
 ply with the provisions of this act. 
 
 Foreign Associations. 
 
 Section 4020. Any such society organized under the laws of any 
 other State, and not now doing business in this State, shall be per- 
 mitted to do business within this State when it shall file with the 
 auditor of public accounts a duly certified coj)y of its charter and 
 articles of association, and a copy of its eon.stitution and laws certi- 
 fied to by its secretary or corresponding officer, together with an 
 appointment of the auditor of public accounts of this State as a per- 
 son upon whom process may be served as hereinafter providetl: and 
 Provided, That such society shall be shown by proper certificate to 
 be authorized to do business in the State, territory or province in 
 wliicli it is iiicori)orat.ed or organized. The auditor of public ac- 
 counts may personally, or by some person to be designated h\ him, 
 examine into the condition, affairs, character and business nu'thotls. 
 accounts and books and investments of such society at its home 
 office, which examiiuition sliail be at the expense of such society, and 
 shall be made within thirty (la\s aftei' deiiiMiid Iheretor. and the 
 expense of sudi examination shall be limited to .-|;.">.l)(» per day and 
 the necessary expenses of travel anil hotel bill. If the auditor of
 
 THE STATE OF NEBRASKA 615 
 
 puhlit' iici'ounts. ai'tcr siicli o.\;iiiiin;it ion, is of tlic opinion tli:i1 no 
 pciMiiit should he tirantcd to sncli society lie may refuse to iss\ie the 
 same. 
 
 Reports to and by Auditor — Certificate. 
 
 Section 4021. Every siicli society doiny liusiiiess in this State sh;ill, 
 on or before tlie first day of March of each year, malte and tile with 
 the auditoi- of ]iublic accounts, a report for the year ending on the 
 :ilst da.\- of December immediately precetiing. All reports shall be 
 upon blank forms to be provided by said auditor, or may be pi'inted 
 in paniphh't form, and shall be verified under oath by tlie autlioi'ized 
 officers of such society, and shall l)e published, or the substance 
 thereof, in the annual report of the auditor of public accounts under 
 the separate title, "Fraternal Beneficiary Associations," and shall 
 contain answers to the followinji- (pu'stions: 1. Number of certifi- 
 cates issued durinu- the 3'ear, or members admitted. 2. Amount of 
 indemnity effected thereby. 3. Niunber of losses or benefit liabilities 
 incurred. 4. Number of losses or benefit liabilities paid. 5. The 
 amount received from each assessment for the year. 6. Total amoiuit 
 paid members, beneficiaries, legal representatives or heii's. 7. Num- 
 ber and kind of claims for which assessments have been made. 8. 
 Niunbci' and kind of claims compromised or resisted, and brief state- 
 ment of reasons. 9. Does association charge annual or periodical 
 (lues oi- admission fees. 10. How much on each one thousand dollars 
 annually, or per captia [capita] as the ease may be. 11. Total 
 anuuuit received, from what source, and the tlisposition thereof. 12. 
 Total amount of salaries, fees, per diem, mileage and expenses paid 
 to officers, showing aiuount paid to each. 13. Does the society guar- 
 antee, in its certificates, fixed amounts to be paid regardless of 
 amount realized from assessments, dues, admission fees and dona- 
 tions? 14. If so, state amount guaranteed, and the security of the 
 guaranty. 15. Has the association a reserve or emergency fund? 
 Ifl. If so, how is it created, and for what ]iuri>ose. the amount thereof, 
 and how invested. 17. Has'the association more than one class? 18. 
 If so, how many, and amount of indemnity in each. 19. Number of 
 members in each class. 20. If incorporated, so state, ang [and] 
 give tlate of organization. 21. If organized under the laws of this
 
 6iy FRATERNAL SOCIETY LAW 
 
 State, under what law, and at what time, giving chapter and year 
 and date of passage of act. 22. If organized luider the laws of any 
 other State, territory or province, state such fact and the date of 
 organization, giving chapter and .year aiul dnte of jiassage of act. 
 23. Number of certificates of beneficiary membership lapsed during 
 the year. 24. Number in force at beginning and end of year; if 
 more than one class, number in each class. 25. Names and addresses 
 of its president, secretary and treasurer or corresponding officers. 
 At the time of filing said annual report each society shall pay to 
 said auditor a fee of ten dollars. The auditor of jjublic accounts is 
 authorized and empowered to make any additional inquiries of any 
 such society relative to the business contemplated by this act, and 
 such officer of such society as the auditor may require, shall promptly 
 reply in writing, under oath, to all such inquiries. If, iipon exami- 
 nation, the auditor is satisfied that such society is transacting its 
 business according to law and in no sense fraudulently, he shall issue 
 his certificate authorizing it to transact business for the following 
 year. 
 
 Foreign Societies — Service of Process — Auditor's Duties. 
 
 Section 4022. Any such society permitted to do business within 
 this State, and not having its principal office within this State, and 
 not organized under the laws of this State, shall appoint, in writing, 
 the auditor of public accounts of this State to be attorney in fact, 
 on whom all process in any action or proceeding against it shall be 
 served, and in such writing shall agree that any process against it 
 which is served on said attorney in fact shall be of the same validity 
 as if served upon the association, and that the authority shall con- 
 tinue in force so long as any liabilit.y remains outstanding in this 
 State. Copies of such certificate, certified to b,v the auditor of pub- 
 lic accounts, shall be deemed sufficient evidence thereof, and shall be 
 admitted in evidence with the same force and efi'ect as the original. 
 Service uijou such attorney shall be deemed sufficient service ui)on 
 such association. When legal process -against any sncli society is 
 served upon the auditor of piiblic accounts, he shall imniediately 
 notify the society of such service by letter, postage prepaid, directed 
 and mailed to its secretary or corresponding officer, and shall within
 
 THE STATr<: OF NEBRASKA 617 
 
 two days after such service forward in the same manner a copy of 
 the process served on him as such officer. The auditor of public 
 accounts shall keep a record of all processes served upon him, which 
 shall show the day anil hour when such service was made. 
 
 Certificate to do Business. 
 
 Section i0'2:i. The auditor of public accounts shall, upon the appli- 
 cation of any such association, issue to it a permit in writing, author- 
 iziiii;- it to do business within this State, for which certificate, and all 
 proceedings connected therewith such societj' shall pay to said audi- 
 tor of public accounts the fee of twenty dollars. 
 
 Agents Soliciting Membership. 
 
 Section 4024. Such society shall not employ paid agents in 
 soliciting or procuring members, except in the organization or build- 
 ing up of subordinate bodies or granting members inducements to 
 procure new members. 
 
 Beneficiary — Change. 
 
 Section 4025. No contract between a member and his beneficiary 
 that the beueficiary or any person for him shall pay such member's 
 assessments and dues, or either of them, shall deprive the member 
 of the right to change the name of the beneficiary. 
 
 Meetings Outside State. 
 
 Section 4026. Any such society organized under the laws of this 
 State may provide for the meeting of its legislative or governing 
 body in another State, territory or province wherein such association 
 shall have subordinate bodies, and all business transacted at such 
 meeting shall be valid, in all respects, as if such meetings were held 
 within this State ; and where the laws of any such society provide 
 for the election of its officers by votes to be cast in its subordinate 
 bodies the votes so cast in its subordinate bodies in any other State, 
 territory or province shall l)e valid, as if cast within this State.
 
 618 FRATERNAL SOCIETY LAW 
 
 Failvtre to Make Report — Maladministration. 
 
 Section 4027. Any such association refusing or neglecting to make 
 the report as provided in tliis act shall be excluded from doing busi- 
 ness within this State. The auditor of public accounts must, within 
 sixty days after the failure to make such report, or in case anj' such 
 society shall exceed its powers, or shall conduct its business fraudu- 
 lently, or shall fail to comply with any of the provisions of this act, 
 give notice in writing to the attorney general, who shall immediately 
 commence an action against such society to enjoin the same from 
 carrying on any business. No society so enjoined shall have author- 
 ity to continue in business until such report shall be made, or overt 
 act or violation complained of shall have been corrected, nor \intil 
 the costs of such action be paid by it; Provided, That the court shall 
 find that such society was in default, as charged, whereupon the 
 auditor of jjublic accounts shall reinstate such a.ssociation. and not 
 imtil then shall such association be allowed to again do business in 
 this State. Any officer, agent, or person acting for any such asso- 
 ciation or subordinate body thereof within this State, while such 
 association shall be so enjoined or prohibited from doing l)usiness 
 |)ursuant to this act, shall be deemed guilty of a misdemeanor, and, 
 on conviction thereof, shall be punished by a fine of not less than 
 twenty-five dollars, nor more than two hundred dollars, or by im- 
 prisonment in the county jail not less than thirty days nor more 
 than one year, or both fine and imprisonment, in the discretion of 
 the court. 
 
 Same — Business Ceases. 
 
 Section 4028. Any person who shall act within this State as offi- 
 cer, agent or otherwise, for any such association which shall have 
 failed, neglected or refused to comply with, or whicli shall have 
 violated any of the provisions of this act, or shall have failed or neg- 
 lected to procure from the auditor of public accounts, pi'0[)er certifi- 
 cate of authority to transact business as provided by this act. shall he 
 subject 1o llii' penalty [irovided in the nexl jirecediiig seelion fur the 
 niisdeuu'anor tliei'cin s|;(_M'iliiMl.
 
 THE XTATK OF NhJBRAtiKA (519 
 
 Fraudulent Conduct. 
 
 Section 4029. Any officer, agent, or member of such society, who 
 shall obtain any money or property belonging- thereto, by any false 
 or fraudulent representation, shall be fined not more than five hun- 
 dred dollars and costs, and stand committed until such fine and 
 costs are paid, or may be imjirisoned in the county jail not more 
 than six months. 
 
 Medical Examination. 
 
 Section 4030. Every ajiplicant for lienefieial memliership in uny 
 siu'li society doing business in this State, shall first be examined by 
 ;i ])hysician duly authorized to practice medicine within this State. 
 
 Societies — Organization — Requirements — Incorporation — Cer- 
 tificate. 
 
 Section 4031. Any ten or more persons, residents of this State, 
 and over twenty-one years of age, may associate themselves together 
 for the purpose of forming a corporation luider this act, for which 
 purpose they shall make, sign and acknowledge, before any officer 
 authorized to take acknowledgments of deeds in this State, a certifi- 
 eate of association, in which shall l>e stated the name or title of the 
 proposed society; the object for which it was formed; the plan of 
 doing business, clearly and fully defined; the names of the board of 
 officers or managers for the first year, and the manner of selecting 
 their successors; the limits as to ages of apjilicants for membership, 
 ami 1liat medical examinations are required, and that b.ona fide ap- 
 plications for membership have been secured from not less than two 
 hundred and fifty persons, who have each made ai)plicati(ui for 
 membership in such proposed society, and have been duly examined 
 and recommendeil by a I'cputalile physician, and have each deposited 
 with the parties asking such charter the sum of one advance assess- 
 ment on each one thousand dollars of insurance or part thereof, pro- 
 vided for in the [ilan of organization of such society, as an advance 
 assessnuMit for moi'tnary purposes, together with the certificate of 
 sdiiic solvent bank or banks thai all of such moi'fuarx- funds are
 
 620 FRATERNAL SOCIETY LAW 
 
 dei^osited tliereiu to be turned over to tlie treasurer of a subordinate 
 lodge or branch composed of snch applicants, after the incorporation 
 of such society, which certificate of association shall be filed with 
 the ai^ditor of pul)lic accounts, accompanied bj' a fee of twenty 
 dollars : Provided that such new organization shall not be permitted 
 to issue a certificate to exceed the sum of one thousand dollars until 
 it shall have at least two thousand beneficial members. If the audi- 
 tor of public accounts shall find, after careful examination, that the 
 objects of organization and plan of doing business are fuU.v and 
 definitely set forth, and are clearly within the provisions of this 
 act. and that the name or title is not the same, or does not so nearly 
 resemble a title in use as to have a tendency to mislead the public, 
 he shall approve the same, and forthwith issue a certificate of 
 organization to such society. Thereupon such society ma.v proceed 
 to transact business according to the ])lan of its organization. 
 
 Exempt from General Law — Deposit of Securities — Care of Funds. 
 
 Section 4032. All societies, orders and associations contemplated 
 in this act, shall be exempt from the provisions of chapter 16 of the 
 Compiled Statutes of 1885, but any such society or association may 
 deposit any of its notes, bonds or securities held b.v it, specifying 
 at the time of such deposit, to what funds such bonds, notes or 
 other securities belonging, with the State auditor, who shall accept 
 the same and receipt therefor the same as in the case of deposits 
 made by Mutual Benefit Associations and Life Insurance- Companies, 
 and such deposits shall be sub.ject to the same provisions of law 
 as deposits made by such Mutual Benefit Associations and Life In- 
 surance Companies, and the State auditor and his bondsmen shall lie 
 liable on his official bond for the safe keeping and management of 
 such securities in like manner as for deposits madt' by ^lutual 
 Benefit Associations and Life Insurance Companies. Provided. Thnt 
 sucii secret societies and associations shall comply with all the other 
 provisions of this act. The moneys collected by anv such society 
 fnuii it members, accordinu' to the plan or method provid("'d in its 
 const it n1 ion and by-l,-i\vs for the |)a>nieiit of dealli oi- disability 
 claims arisiiiu' luider the terms of its lieiicficiary certificates shall
 
 THE STATE OF NEBRASKA 621 
 
 111' kepi sciiarali' :iiii| apiirt i'roiii Ihc other riiiids (if such society, 
 iuid shall lie used only in iiaymcut nl' such claims, and no part, 
 tiici'cot' sliall be used by such s<iciety in payiiiciit of exjicnses ol' any 
 kind or cliaracler. 
 
 Constitution — By-laws Filed. 
 
 Section 4033. Every such society shall file with the auditor of 
 ])nblic accounts a copy of its constitution and by-laws, duly certi- 
 fied to by the secretary or corresponding- officer, and before any 
 amendment, change, or alteration thereof shall take effect or be in 
 force a copy of such amendment, change, or alteration, duly certified 
 to by its secretary or corresponding officer, shall be filed with the 
 auditor of public accounts. 
 
 Reinsurance. 
 
 Section -1034. It shall be lawful for any frafernal beneficiary so- 
 ciety or association organized inider the laws of this State, and 
 authorized to transact business in this State, which shall have and 
 maintain fraternal relations with a like society of a similar name 
 organized under the laws of another State, and which such othei'. 
 society shall claim to be superior to such society organized under 
 the laws of this State, to contract to and with such society organized 
 under the laws of such other State according to its constitution and 
 laws, to guaranty the payment of death benefits of such society or- 
 ganized under the laws of this State, either in whole or in part, and 
 in consideration of such guaranty to pay to such society organ- 
 ized undei- the laws of such other Stat" such, sum or sums at such 
 time or times as may be mvitually agreed upon, and for the purpose 
 of providing funds wherewith to make such jiayments such society 
 organized under the laws of this State may collect from its members 
 such a.ssessments or dues as may be provided by its constitution or 
 by-laws. Provided, That such society organized under the laws of 
 such other State shall, on or before the 31st day of March of each 
 year, make, execute and deliver to the auditor of public accounts of 
 this State a jiower of attorney de.signating such auditor of public 
 accounts and his successors in office, as a person ujion whom service
 
 622 FRATERNAL HOVIETY LAW 
 
 of process may be had in any case arising' out of such contract lic- 
 tween such societies. 
 
 Consolidation — Reinsurance. 
 
 Section 4(l34a. When any fraternal beneficiary association sliall 
 propose to consolidate or enter into any reinsurance contract with 
 any other association or organization, it shall present its proposed 
 I)lau of consolidation or reinsurance, together with a statement of 
 the condition of its affairs to the Auditor of State f(n- his approval. 
 Should he approve of the plan, the same shall be submitted by any 
 .association proposing to reinsure its risk or transfer its business, 
 to its local lodges or organizations or to a regular or special meeting 
 of its supreme lodge or governing body to be voted upon, such notice 
 being given as the Auditor of State may direct. If, in the .iudgnient 
 of the Auditor of State it is deemed advisable he may require the 
 plan to be in like nuiiiner subniitt('(l to the association proposing to 
 accept or reinsure the risks of any other association. In case two or 
 more associations propose to consolidate, the proposed plan of con- 
 solidation shall be submitted, as above provided, to all of the associa- 
 tions interested in such considilations. In any of the above cases, a 
 two-thirds vote of all the members of each association present and 
 voting shall be necessary to an approval of any plan of consolidation 
 or reinsurance, and in no case shall proxies be voted. On presenting 
 to the Auditor of State satisfactory proof that tlie foregoing |iro- 
 visions have been eoinplied with and that the recpiired niunlu'r of 
 votes have been cast in fjivor of the ])roposed plan, he shall issue to 
 the association an order to the effect that the plan has been ap- 
 proved, and the same shall he in force aiul effect from and after the 
 date of such order, and '' '' direct such dis- 
 
 tril)ution of the assets of any such association or associations as shall 
 lie just and equitable. 
 
 Same — Expenses . 
 
 Section 4()34lj. Ail expenses or costs incident to proceedings 
 luider the provisions of tliis act shall be paid by the ;issociatioiis 
 iidei'csted.
 
 THE UTATE OF NEBRJiSKA 023 
 
 Violation of Act. 
 
 S('('tii)il 40;^4c. Any ofliciT, (lircclcir or iii;in;it;ri' (if Miiy Ji.ssoc'ia- 
 tioii violating or consentiiit;' to \\\f \ioln1ion ol' any ol' I he provision 
 of tills act shall be puuishetl 1).\ a linr of not h'ss Ihan one lliousaiid 
 dollars, or by imprisonment in tlu' county jail not less than one year 
 or by both such fine and imprisonment in the discretion of the court. 
 
 The following provisions of the Statutes of Nebi-aska are also 
 deemed to be proper for incorporation here : 
 
 Actions Against Corporations. 
 
 Section 6625. An action other than one of those nientionetl in the 
 first three section of this title, against a corporation created by the 
 laws of this State, may be brought in the county in which it is 
 situated, or has its principal office or place of business; but if such 
 corporation be an insurance company, the action nuiy be brought in 
 the county where the cause of action, or some part thereof, arose, or 
 in the county where any contract or portion of a contract entered 
 into by such insurance company has been violated, or is to be per- 
 formed. 
 
 Non-residents. 
 
 Section 6629. An action other than one of tliose mentioned in 
 the first three sections of this title, against a non-resident of this 
 State or a foreign corporation, may be brought in any county in 
 which there may be property of, or debts owing to, said defendant, 
 01- where said defendant may be found: but if said defendant be a 
 foreign insurance compan\-, the action may be brought in any county 
 where the cause, or some part thereof, arose. 
 
 Same— Insurance Companies. 
 
 Section 6646. Wlien the defendant is an incorporated insurance 
 company, and the action is brought in a county, in which there 
 is an agency thereof, the service may be u])on the chief officer of 
 such agency.
 
 624 FRATERNAL SOCIETY LAW 
 
 Frauds on Life Insurance Companies. 
 
 Section 7803. If any person or persons shall obtain, cause to be 
 obtained, or attempt to obtain from any life or accident insurance 
 company any sum of money, on any policy of life or accident insur- 
 ance issued by any company in this State, by falsely or fraudulently 
 representing the person or persons insured as dead, or shall cause 
 any person or persons to be insured under an assumed name, and 
 shall falsely represent the fictitious person or persons so insured 
 as dead, and shall thereby obtain, cause to be obtained, or attempt 
 to obtain from such company tlie amonnt of such insurance and 
 shall falsely obtain, cause to be obtained, or attempt to obtain from 
 any .such life or accident insurance company any sum of mcmey 
 upon any life or accident policy of such company by means of 
 false and fraudulent written representation or affidavits, falsely 
 representing that the person whose life was insured was dead, or 
 that the person insured against accident was injured, every person 
 so offending, if the sum so obtained, attempted or caused to be ob- 
 tained shall be equal to or exceed the sum of thirty-five dollars, 
 shall be punished by ihiprisonment in the penitentiary not exceeding 
 fifteen years; and if the sum so obtained, attempted or caused to be 
 obtained shall be less than thirty -five dollars, shall be fined in any 
 sum not more than five hundred dollars, or be imprisoned in the 
 jail of the proper county not exceeding six months, or both, at the 
 discretion of the court. 
 
 MUTUAL BENEFIT ASSOCIATIONS. LIFE INSURANCE AND 
 LIFE INSURANCE COMPANIES. 
 
 Mutual Assessment, Etc., Companies. 
 
 Section 3989. Every corporation or association organized under 
 the laws of this State upon the mutual assessment, stipulated pre- 
 mium, co-operative or natural premium plan, for the purpose of in- 
 suring the lives of individuals, or of furnishing benefits to the 
 widows, heirs, orphans, or legatees, of deceased members, or of pay- 
 ing accident indemnity, shall, before commencing business, comjily 
 with the provision.s of this act.
 
 THE STATE OF SEBRAHKA 625 
 
 Articles of Incorporation. 
 
 Section ;^!)!)(). Tin- articles nl' iiicurporal inn of siii'li (irv.aiiizalioiis 
 shall show tlie plan i)l' business, and shall lie snlniiilliMl lo the auilitor 
 of state, and attorney general, and if such articles iire founti to 
 comply with the provisions of this act they shall approve the same. 
 When said articles are thus approved, they shall be recorded in the 
 ot'liei' of the recorder (.)f deeds, in the county where such organiza- 
 tidii is located and of the secretary of state antl a notice iiublished 
 as |)i'o\ided for under the general incorporation law of the State 
 ol' Nebraska. Nothing in this section shall be construed to re(|uire 
 the incorporation of such companies already duly iiic<irporatec| and 
 o|)(>rating under tlie laws of Xebraska. 
 
 Name. 
 
 Section 3;)!)1. No corporation or association organized under this 
 act, shall take any luiiue in use by any other organization or so 
 closely resemlding such name as to mislead the public as to its 
 identity. 
 
 Applications for Insurance — Certificate for Incorporation. 
 
 Section 3992. Each association organized under this act, shall, 
 before issuing any policy or certificate of membership, if said asso- 
 ciation has not membership .sufficient to pay the full amount of the 
 certificate or policy on an assessment it shall cause the application 
 foi- insurance to have printed in red ink in a conspicuous manner 
 along the margin of said application the words "It is understood 
 and agreed that the amount to be paid, when the certificate or policy 
 issued upon this apjilication becomes a claim, shall be dependent 
 ii]ion the amount collected from an assessment made to meet such 
 claim," and the.v must have actual applications upon at least two 
 hundred and fifty individual lives for at least one thousand dollars 
 each, and shall file, with the auditor of state, satisfactory proof that 
 the ])resident, secretary, and treasm-er, of said corporation or asso- 
 ciation have each given a good and sufficient bond, for the faithful 
 discharge of their duties as such officers: sworn copies of which 
 40
 
 626 ' FRATERNAL SOCIETY LAW 
 
 bonds shall be tiled with the auditor of state, also a list of said 
 applications giving the name, age, and residence of each ajiplicant 
 and the amount of insurance applied for 1)y each, togethei' with the 
 annual dues and the proposed assessments thereon, which statement 
 shall be verified under oath by the president and secretary of the 
 association. 
 
 Agents — Auditor 's Certificate. 
 
 Section 3993. No person shall act within this State as agent or 
 otherwise in receiving or procuring applications for insurance for 
 any assessment association (except for the purpose of taking appli- 
 cations for organization), luiless the corporation or association for 
 which he is acting, has received a certificate from the auditor of state 
 as provided in this act, authorizing said corporation or association to 
 transact business in this State, nor as general or traveling agent 
 or traveling solicitor, until he shall have received from said auditor 
 a certiiicate in substance the same as that provided for in section 
 14 of this act, and certifying that said corporation or association 
 has complied with the provisions of this act, and that said general 
 traveling agent or traveling solicitor is authorized to act as such. 
 
 Objects of Assessments. 
 
 Section 3994. The by4aws of any such corporation or association 
 and its notices of assessment, shall state the ob.ject or objects for 
 which the money to be collected is intended, and no part of the pro- 
 ceeds of such assessment shall be ap|)!icd to any other purpose than 
 is stated in said notices and by-laws, and the excess beyond payment 
 of the benefit jirovided for in such assessm(>nt shall be set aside and 
 apjiiird only to such ]inr])os('s as said by-laws and notices specify. 
 
 Members — Beneficiaries. 
 
 Section 3995. No corporation or association organized or ojiera- 
 ting under this act shall issue any certificate of mend)ershii) or policy 
 to any person uruler the age of fifteen years, nor over the age of 
 sixtv-five vears. nor unless the liciicliciary uiidi'i' said certificate
 
 THE HTATE OF /\7v7J/iM,S'A'/l 627 
 
 shall lir till' liiishaiiil, wii'r, rcl.-il i\i', li'Lial i-r|irrsi'ii( al i\c, heir oi" 
 legatee of sucli insured iihmiiIiim-, iku- shall any such certificate be 
 assianed, and any certilii'ale issued nr assiyument made in violation 
 oi' til is section shall be void. Any member of any corporation, asso- 
 ciatiim or society operating' under liiis act, shall have the right at 
 any time, with the consent of such corporation, association or so- 
 ciety, to make a change in his beneficiary without requiring the 
 consent of such beneficiary. 
 
 Statements — Examinations. 
 
 Section 3996. The business year of each Nebraska corporation or 
 association organized or operating under this act, shall close on the 
 thirty-first d,ay of December each year, and such corporation or as- 
 sociation shall, within sixty days thereafter, prepare under oath of 
 its president and secretary, and file in the office of the auditor of 
 state a detailed satement of its a.ssets, liabilities, receipts, from each 
 assessment, and all other sources, expenditures, salaries of officers, 
 iiuiiilicr (if contributing members, death losses ]>aid and amount 
 paid (Ui each death loss, death losses reported but not paid, and 
 answer such other interrogatories as the auditor (who shall furnish 
 blanks for that purpose) may require, in order to ascertain its true 
 financial emidition, and shall pay upmi filing each annual statement, 
 the sum of ten dollars. The auditor shall publish said annual state- 
 ment in detail in his annual rejiort, and for the purpose of verifying 
 such statement the auditor may make or cause to be made, an 
 examination of the affairs of any Nebraska association doing busi- 
 ness under this act at the expense of the association, which expense 
 shall not exceed the necessary hotel and traveling expenses of the 
 auditor or clerk. If the auditor appoints some person iu>t employed 
 in his office to make the examination, he .shall in addition to actual 
 expenses be allowed not to exceed five dollars per day for the time 
 actually employed. If the said auditor shall deem it necessary for 
 the security of the funds of the assoeiati(ui. he may re(iuire the 
 official bonds of the officers to be increased to an amount not to 
 exceed double the sum for which they are accountable, and he may 
 require supplemental reports fr(un any such association at such time 
 and in such f(U'm as he nnn- direct.
 
 628 FRATERNAL SOCIETY LAW 
 
 Investment of Funds. 
 
 Section 89!J7. Any Nebraska corporation or association accumu- 
 lating any moneys to be held in trust for the purpose of the fulfill- 
 ment of its policy or certificate, contracts, or otherwise, shall invest 
 such accumulations in bonds or treasury notes or warrants of the 
 United States, or this or other states, or in interest bearing bonds 
 of any municipal corjioration in Nebraska, or in notes secured by 
 mortgage on unencumbered real estate in the State of Nebraska, 
 or Nebraska district irrigation bonds, not to exceed fortj" per cent 
 of the appraised value thereof exclusive of improvements and shall 
 deposit such securities with the auditor of state, who shall furnish 
 such corporation or association with a certificate, umier his seal of 
 office, of such deposit, showing the purpose of such deposit aud to 
 what fund the same is to be applied when paid out and also showing 
 the aggregate liabilities of such corporation or association at the 
 date of issuance of such certificate; Provided, however, That such 
 corporation or association may invest in real estate in Nebraska such 
 a portion of said accumulation as is necessary for its accommodation 
 in the transaction of its business and to lie owned by said corpora- 
 tion or association, and in the erection of any huihling for such pur- 
 pose may add thereto rooms for rental. 
 
 Same — Change. 
 
 Section 3998. Such association may have the right at any time 
 to change its securities on deposit by substituting fiu- those with- 
 drawn a like amount in other securities of the character provided 
 for in this act. 
 
 Same — Withdrav/al. 
 
 Section 3999. The auditoi- shall permit corporations or associa- 
 tions having a deposit with him of such securities to withdi-aw the 
 same u])on filing with him by the x'l'esiclent and secretary of such 
 eorpoi-atious and associations, satisfactory proof that they are to be 
 used for the purpose for which they wer>^ originally deposited in 
 his office. 
 
 I
 
 THE t<TATE OF N EUR ASK A 629 
 
 Same- — Collection. 
 
 Seel inn 4(l(Hl. 'J'hc aiiililiir sluill jnu'iiiit coi'poi'ations or associa- 
 )ii)iis li,-iviiJii' (in deposit with liiiii such stocks and l)onds, notes, or 
 oilier securities, to eollect and retain the iideresl aceruini;' on sueli 
 (K'liosits, delivei'ing- to them res|>eeti\'ely the evidence of interest as 
 the same l)ecoim's due. l)ul on (lei'anlt of an\' corporation or asso- 
 ciation to m(d<t' or enforce such collection, he may collect such in- 
 terest and add the same to the secui'ities in his possession belonirinji- 
 to such corporation oi' association, less the expense of such collection. 
 
 Failure to Make Statements — Malfeasance. 
 
 Section 4(101. Whenever an\' Nebraska association or corporation 
 sliall fail to make its animal statement to the auditor on or before 
 the first day of JIai'ch. or is conducting- its luisiness fraudnlently 
 or not in compliance with this act or is not carryin<;- out its contract 
 with its members in g-ood faith, then it shall be the duty of the 
 auditor to promptly communicate the fact to the attorney general, 
 who shall at once c(nnmenee action before the district in- circuit 
 court of the county in which said organization is located or any 
 judge thereof, citing the officers to appear before said court or judge, 
 anil if u]ion a hearing of said cause, it is fountl to be (for) the best 
 interests of the holders of the certificates of membership in said cor- 
 poration, said court or judge shall have the power to remove any 
 officer or officers of said corporation and appoint others iii their place 
 until the next annual election. If it is fouiul to the best interests 
 of said holders of certificates that the affairs of said corporation be 
 woinid up said court or judge shall so direct and for that purpose 
 may appoint a receiver, who shall regard all ])roiier claims for death 
 benefits as preferred claims. Said receiver may also upon the ap- 
 proval of the court or judge transfer the members of said association 
 who consent thereto to some solvent Nebraska assessment or natural 
 premium association or divide the surplus accumulated in proportion 
 to the share due eaeli certificate in force at the time. 
 
 Certificate of Incorporation. 
 
 Section 4002. On compliance with this act by any corporation or
 
 630 FRATERNAL SOCIETY LAW 
 
 association the iiuditor shall issue a c-ertiheate setting forth, First — 
 The corporate name of the association. Second — Its principal 
 place of business. Third — The number of certificates or policies in 
 force at the date of its last report. Fourth — The sum of money 
 which an ordinary assessment for payment of a single certificate or 
 policy would produce in each class. Fifth — The amount paid on its 
 last death loss as evidenced by proof on file in his office anil the date 
 of such payment. Sixth — The amount of securities de|j(jsited in his 
 office, and for what purpose deposited. Seventh — That it has fully 
 complied with the provisions of this act, and is authorized to trans- 
 act business for a period of one year from April 1st of the year of 
 its issue, which certificate shall lie published by said association 
 for four weeks in a newspaper of general circulation published at 
 the jirincipal jtlace of business of said association. 
 
 Fraud of Agent, Physician, Etc. 
 
 Section 4<l(l.3. Any agent, physician, or other person, who shall 
 knowingly and by means of concealment, or false or fraudulent 
 statements, assist in securing from any such organization, or assess- 
 ment association, a policy or certificate of membership on the life 
 of any person, shall be deemed guilty of a misdemeanor, and upon 
 conviction thereof shall be sentenced to pay a fine not. exceeding 
 one thous;ni(l ilolbii's. or undergo an imjirisonment of not more than 
 one year in the county .iail, oi- both, in the discretion of the court. 
 
 Natural or Stipulated Premium Plan Companies. 
 
 Section 40(14. Any (■(U'poiMtioii or association doing business in 
 this State which provides in the main for the ])aynu^nt of death 
 losses or accident indemnity by ;iiiy assessment upon its members, 
 or upon the natural premium plan, or upon the stipulated premium 
 ]ilan. shall, for the purpose of this act, be deemed a mutual benefit 
 association. No corporation or association operating upon the assess- 
 ment plan, oi' upon any plan other than the mitural premium plan, 
 or stipulated premium plan, as hereinafter provided in this act, 
 promising benefits upon any other (>vent than that of the death, or 
 disability dI' llic mcmbei- resulting from accident, shall be permitted
 
 THE STATE OF NEBltASKA 631 
 
 to (|(i liiisinrss ill this Stnl<', ami it shall lie iinlawriil for any siifh 
 assoriatidii or coriKiral ion now dv luTt^after org'aiii/i'd or authorized 
 iiiidiT tliis act, to |ii-ovi(l(' lor or promise cash suri-eiulcr values, 
 exti'iuled oi' paid up insiiraiice, eiidowiiients, or any rorni of itivest- 
 iiiciit iiisiiraiii'i'. This act shall not relieve any eorjiorat ion or jissess- 
 meiit association now doing business in this State I'l-oin tin' I'liltill- 
 iiieut of any contract heretofore entered into with its inciiilicrs 
 iiiitler its policies or certifi(;ates of membersliip. nor shall any 
 iiiciiiher he rclicvi'il thci-ehy from his or her part of said contract. 
 
 Same — Surplus — Rate of Premium. 
 
 Section 400"). Any sueh natural preminm, or stipulated premium 
 life association may provide for the equitable distribution of any 
 surplus accumulated in the course of its business, which may be paid 
 in cash or ajiplied in the payment or reduction of future premiums, 
 for extended and paid up insurance, and for an equitable cash sur- 
 render value of its policies; Provided the conditions thereof shall 
 be set forth in the certificate of membership or policies of such 
 association and such cash surrender value shall in the main 
 be accumulated during the term of such certificates or policies. It 
 shall not be lawful for any association organized or transacting busi- 
 ness under this act to i.ssue policies upon the natural premium or the 
 stipulated premium plan at a lower rate than the net premium com- 
 puted on the basis of the terms of the policy and the American table 
 of mortality and four and one-half jier cent interest. 
 
 Fees. 
 
 Section 4006. The State shall receive from each insurance cor- 
 poration or association of other States or foreign countries doing 
 business in this State for each certificate is.sued to its agents, as pro- 
 vided in this act. the sum of two dollars, and from each corporation 
 or association organized under the laws of this State the sum of fifty 
 cents, said fees to be paid into the State treasury. Any insurance 
 corporation or association of any other State or foreign country com- 
 ]i]ying with the requirements of this act, before being authorized 
 by the auditor of public accounts, or commissiiuier of insurance to
 
 632 FRATERNAL SOCIETY LAW 
 
 transact business in this State, shall pay into the State treasury 
 for its certificate of authority to do business in this State the sum 
 of twenty-five dollars, and shall pay aimiially into the State treasury 
 upon the dates when its annual statement is submitted the further 
 sum of twenty dollars, and each corporation or association organized 
 iinder this act in this State shall pay into the State treasury for in- 
 corporation fees the sum of twenty-five dollars, provided, however, 
 that the right to enter this State upon the terms herein named, shall 
 not be granted to any insurance corporation of any other State 
 or foreign country unless the same right upon equally favorable 
 terms is extended by the State or foreign country in which said 
 corporation is organized to similar companies, corporations or asso- 
 ciations organized in this State. 
 
 Extent of Act. 
 
 Section 4007. Nothing in this act shall be construed to apply to 
 any secret fraternal society nor any association organized solely for 
 benevolent pur])oses and composed, wholly of members of any one 
 oecu])ation, guild, profession, or reli.a'ious, denomination, provided 
 that any such society or organization named above in this section, 
 shall, by complying with the provisions of this act, be entitled to 
 all the privileges and be amenable to the obligations of this act. 
 
 Foreign Companies — Fraternal Beneficiary Societies. 
 
 Section 4008. When any foreign insurance association or com- 
 pany not organized in this State having assets of not less than fifty 
 thousand ($50,000) dollars, shall comply with the requirements of 
 the laws of this State and shall satisfy the auditor of public accounts 
 that it is in a solvent condition and alile to meet its obligations at 
 maturity, he shall issue such company a certificate .stating that such 
 coini)any ,has comjilied with the laws of this State. Provided, that 
 I)urely mutual foreign accident associations or corporations shall not 
 lie nM)uii'e(l to have the assets required by this Section as a condition 
 jjrccedent to its being licensed to do business under this Act. Pro- 
 vided further, that this Act shall not apply to any Fraternal Bene- 
 ficiar\' Socii'tv or Association.
 
 THE STATE OF NEBRASKA 633 
 
 Acts Repealed. 
 
 Section rtOUy. All acts, or parts of acts, coiiliict inu willi this act 
 arc hereby repealed. 
 
 Foreign Companies — Compliance with Foreign Laws. 
 
 Section 4010. Whenever the existing or future laws of any other 
 State of the United States, or the rules and regulations of the insur- 
 ance department of any such State, shall require of life insurance 
 companies organized under tlie laws of this State any deposit of 
 securities in such State for the spc\irity of the policy holders, or any 
 payment of taxes, fines, penalties, certificates of authority, licenses, 
 fees, or require any other duties, examinations, or acts than are by 
 the laws of this State required of such couipanies organized under 
 the laws of such other State, then the auditor of public accounts 
 shall immediately require from every insurance company of any 
 and every character whatever of such other State transacting or 
 seeking to transact business in this State, the like payment of all 
 licenses, fees, taxes, fines or penalties, and the like making of all 
 deposits of securities and statements, and the like doing of all 
 acts which by the laws or rules of the insurance department of such 
 other State, are in excess of the licenses, fees, taxes, deposits, state- 
 ments, fines, penalties, acts, examinations or duties required by the 
 laws of this State of the companies of such other States. 
 
 Security for Policy Holders. 
 
 Section 4011. No company organized under the laws of this State 
 for the purpose of transacting the business of life insurance with 
 a capital stock, shall continue or commence business mitil such 
 company has transferred to and deposited with the auditor of 
 public accounts for the security of its policy holders the sum of 
 one hundred thousand dollars in the kinds of securities afe provided 
 by the laws of this State; but in no case shall such securities be 
 received at a rate above their par value nor above their current 
 luai-ket value.
 
 634 FRATERNAL SOCIETY LAW 
 
 Statutes of Foreign State— Presumptions. 
 
 The statutes of a foreign State will be prfsiimed to he the same 
 with respect to fraternal societies as those nf tliis State. 
 
 Fisher vs. Donovan, Jany., 1899, 57 Nebr. 361. 
 
 Beneficiary — Creditor Cannot Be. 
 
 Upon the death of a member the property in a certificate vests 
 absolutely in the beneficiary and creditors have no right nor any 
 interest in the same. 
 
 Fisher vs. Donovan. Jany., 1899, 57 Nebr. 361. 
 
 Forfeiture — Waiver of. 
 
 A secret intention to insist upon a forfeiture cannot prevail 
 against deliberate acts with knowledge of the facts upon which 
 the forfeiture might be asserted, and which in law amount to a 
 waiver of such forfeiture. 
 
 Modern Woodmen of America vs. Lane. June, 1901. 62 Nebr. 89. 
 
 Benefit Fund — Creditors Can Acquire No Rights In. 
 
 A member of a fraternal society has no such interest or iiroitcrty 
 in the proceeds of a certificate issued to him therein, that he can 
 impress such proceeds with a trust in favor of his creditors. 
 
 Fisher vs. Donovan, Jany., 1899, 57 Nebr. 361. 
 
 Beneficiary — Change of — No Vested Interests. 
 
 A member holding a certificate may, at his o])tion. change the 
 beneficiaiy therein, so long as he complies with the laws of his 
 society and kcrps within its limitations and those of the statute 
 under which it is organized. A certificate is a mere expectancy 
 and the beneficiai'v lias no vested interest therein. 
 
 Fisher vs. Donovan, Jany., 1899, 57 Nebr. 361.
 
 rilF, KTATK OF XKIih'AHKA «35 
 
 Evidence — Proofs of Death Admissible. 
 
 I'roofs di' death filed by n beneficiai-y arc adiiiissililc in cNidriice 
 sid),ji'et to explanation or correction, and iiniy tie uscmI as admis- 
 sions auainst Intercast. 1'lie \veit;lit to be given to sncli admissions 
 is a question for the jury, and to be determined u])on eonsideration 
 of all the facts and circninstances showing or lendinii- to show a 
 knowledge on the jiai-t <>\' the beneficiary of tlicii- eonti-iils <>>■ otlicr- 
 wise. 
 
 Modern Woodmen of America vs. Kozali, Dec. I'JUl, tVi Nebr. 146. 
 
 Reinstatement — Waiver of Requirements. 
 
 The I'ules of a society jirovided that the non-payments of assess- 
 ments should operate as a susjiension. and that a mend)er under 
 sns])ension. in order to be reinstated, should make proof of good 
 health. They also provided that only members in good standing 
 might change their beneficiai'ies. such change to be made by sur- 
 rendering the certificate, paying a fee. and obtaining a new certifi- 
 cate. Held, that the cancellation of a prior certificate, retention of 
 the fee for issuing a new one with change of beneficiary, and the 
 issuance of the new one accordingly, amounted to a waiver of such 
 requirements for reinstatement though the member was not in good 
 health at the time. 
 
 Modern Woodmen of America vs. Lane. June, 1901. 62 Nebr. 89. 
 
 The Loss of Certificate Does Not Prevent Suit on Same. 
 
 The manual possession of a benefit certificate in case it is in force 
 and binding, is not necessary in order to maintain an action 
 upon it. 
 
 National Aid Ass'n vs. Bratcher. July, 1902. 65 Nebr. 378. 
 
 Members Separated Into Classes. 
 
 As t<:i the right of a soeiet\' to classify its mendiers according to
 
 636 FRATERNAL SOCIETY LAW 
 
 the risk or hazard that tliey impose niioii the soeiety i)y reason of 
 their respeetive <nialifieatioiis. see 
 
 Doody vs. National Masonic Accident Ass'n. November, 1902. 66 
 Nebr. 493. 
 
 Warranties — Materiality Determined by Contract. 
 
 Parties to a contract may determine what questions and answers 
 are material to the risk, and where that is done, inquiry cannot be 
 made into the materiality of answers, but whether answers by the 
 applicant are true or false, is a question of fact to be determined 
 by the jury. 
 
 Royal Neighbors of America vs. AVallace. December, 1902, 6fi Nebr. 
 543. 
 
 Precedent Conditions to Liability. 
 
 Where an application declares on its face that payment of the 
 first assessment and membership fee is a condition precedent to 
 membership and to the issuance of the certificate, and the by-laws 
 contain the same provision, the applicant does not become a member 
 and the certificate issued is not in force until payments are acl^Tally 
 made. 
 
 National Aid Ass'n vs. Bratcher, July, 1902, 65 Nebr. 378. 
 
 Local Officials Without Power to Waive Laws. 
 
 Officers of subordinate lodg'es have no authority by reason merely 
 of such office to waive any of the provisions of the rules and regu- 
 lations of the society which enter into and form a part of the con- 
 tract of membership. Where one of the laws of a societ.y provided 
 that a suspended member can be reinstated only while in good 
 health, the receipt of the member's dnes 1)y a snliordinate officer 
 while the member is iu a dyinL;- condilion is not a waiver of the 
 rr(|niri'ments of good health. 
 
 Royal Highlanders vs. Soovill, Novcmbe'r. 1902, dfi Nebr. 213. 
 
 i
 
 THE HTATE OF NEBRASKA (j37 
 
 Waiver of Laws Not to be Presumed From Mere Acceptance of Pay- 
 ment. 
 
 Tlic i-i'ri'i|it (if iiK 111 cy })\ 1 lie liii;inci;il (il'liciT ol' ;i si ilidrdinate lodge 
 is iKil liy itself a waiver of (ilhcr ennditinns tof thi' reinstatement of 
 the suspended member. 
 
 Adams vs. Grand Lodge A. O. U. W.. November. 1902. C6 Nebr. 389. 
 
 Agency of Local Lodge Respecting Payment of Benefits. 
 
 Wiiei'e iKi .■lutluirity (iver the puyiiieiit of death benefits exists in 
 a subordinate lodge the netjotiations and dealings between the bene- 
 ficiary and the lodge ofHeials after tlie menilH'f's death can establish 
 no liability against the soeiety. 
 
 Adams vs. Grand Lodge A. 0. U. W.. November, 1902. 66 Nebr. 389. 
 
 Agency — Duty of Local Officials. 
 
 If is file duty of an agent to make known to his jn-incipal all facts, 
 concerning the services in which he is engaged that come to his 
 knowledge in the course of his employnii-nf, and he is jiresumed to 
 have complied with this duty in a subsequent action between the 
 member and a third i^erson. This is lield to be a rule founded in 
 .justice and existing to protect the luiblie. 
 
 Modern Woodmen of America vs. Coleman, April, 1903, 68 Nebr. 660. 
 
 Rights of Members as to Funds. 
 
 A member of a society has no sueh inter'est or iiroperfy in the 
 ■ proceeds of a certificate as will enable him to appi'oiiriate sueh pro- 
 ceeds in the favor of his estate and its creditoi's. 
 
 Warner vs. Modern Woodmen of America. .January, 1903. 67 Nebr. 
 233. 
 
 Beneficiaries Limited by Statute. 
 
 Where the laws of a society and the statutes of the State prescribe
 
 638 FRATERN-AL SOCIETY LAW 
 
 the class of persous that may be beueticiaries of the members, and 
 where a member dies leaviiiii' no one belonging to such classes, his 
 administrator cannot recover against the society- on such certificate, 
 and the fund cont('iii]ilate(l by the certificate will revert to the 
 soeiet.y. 
 
 Warner vs. Modern Woodmen of America, January. 1903, 67 Nebr. 
 233. 
 
 Denial of Liability Removes Ear to Suit. 
 
 Where a society denies all liability on its contract, basing its 
 refusal to pay on the ground that the loss insured against has not 
 occurred, suit may be brought u]hi}i tln' contract without Avaiting 
 for the expiration of the i)erio(l limiting the ti"ie within which tlie 
 Mction may b(> brought. 
 
 Modern Brotherhood of America vs. Cummings, March. 1903. fiS Nebr. 
 256. 
 
 Fraternal Society is a Mutual Life Insurance Society. 
 
 A society which issueil certificates to its meuiliers. payable from 
 a fund maintained by assessments upon certificate holders is in 
 effect a mutual life insurance company, and is governed by tlii» 
 general law applicable to such companies. 
 
 Modern Woodmen of America vs. Coleman, .April. 1903. (i8 Nebr. 660. 
 This is a rehearing of the same ease reported in 64 Nebr. 162. 
 
 Forfeiture — Waiver of. 
 
 A forfeitui'c incurred by a incniln'r is waived, if the society, with 
 a knowledge of the facts, subseipiently collects assessments on 
 account of the conti-aet. and retains them without objection until 
 after the death of tlic nn'nibcr. 
 
 Modern Woodmen of America vs. Coleman, A|)ril. 1903, 68 Nebr. 660.
 
 I 
 
 THE STATE OF NEIih'ASKA (J39 
 
 Beneficiary — Changes of. 
 
 .Menihci's luivc tin- I'ii^lil iimliT tlii' sljitutc. ;i1 ;jiiy time, with the 
 consent nl' (lie sdeii-ly, In sniislitnle one Iieneliei;ii'y i"oi' anolhef. 
 
 Woodmen Accident Ass'n vs, Hamillon. .lanuary. tOlM, 70 Nebr. 24 
 and 30. 
 
 Waivers Not to be Presumed. 
 
 The permanent waiver of the conditions in a contract of insurance 
 siumld not he inferred from occasional indulgences shown the 
 member. 
 
 Parker vs. Knights Templars and Masons' Life Indemnity, Novem- 
 ber. 1903, 70 Nebr. 2BS, 
 
 Beneficiary — Change of. 
 
 An application for ehanue of Ix'iiefieiary which does not reach the 
 head office until aftei- the death of the member, and is then refused 
 because of not being in accordance with the laws a.s to a part of the 
 fund, such refusal has no effect as to the fund in refei-ence to which 
 it is in proper form. 
 
 Counsman vs. Modern Woodmen of America. September, 1903. 69 
 Nebr. 710. 
 
 Restrictions as to Age. 
 
 Societies are not allowe(_l to take members who are above the age 
 limit, or without medical examination, nor can this be chine indi- 
 reetl.v by the purchase of the business and records of another similar 
 society and consolidating such society with its own. 
 
 State vs. Banker's Union, April. 1904. 71 Nebr. 622. 
 
 Solvent Society — Definition of. 
 
 The assets of a fraternal societ.y do not consist alone in cash and 
 tangible securities and propert.v. If its plan of business is feasible
 
 640 FRATERNAL SOCIETY LAW 
 
 aud just, it may rely upon thu g-ood faitli and solvency of its mem- 
 bers. It cannot be said to be insolvent, when it is reasonably prob- 
 able that its authorized assessments will provide it sufficient funds 
 to meet its just liabilities, and a receiver cannot be appointed for a 
 society which is not insolvent under the above definition, but which 
 has simply neglected to comply with some of the jjrovisions of the 
 law with reference to transacting business. 
 
 State vs. Banker's Union. April. 1904, 71 Nebr. 622. 
 
 Suicide — Facts in Case. 
 
 For the facts in a case where suicide was set up as a defense to 
 the claim for the amount of the certifieate, see 
 
 Sov. Camp W. 0. W. vs. Hruby, Oct., 1903, 70 Nebr. 5. 
 
 Suicide — Approximate Cause of Death. 
 
 The fact as to the approximate cause of death, when suicide is 
 interposed as a defense, is a question for the jury. 
 
 Hardinger vs. Modern Brotherhood, December, 1904, 72 Nebr. 860 
 and 869. 
 
 Suicide — Duty of the Court to Instruct, When. 
 
 Where the defense of suicide is interposed, and where the facts 
 aud circumstances surrounding the death of the member pointed 
 clearly and unmistakably to the conclusion that the member took his 
 own life, and which exclude all reasonable probability of death by 
 murder or by accident, the presumption that a sane person will not 
 take his own life is overcome and such facts establishes at least 
 prima facie the defense of suicide, and it is the duty of the trial 
 court upon such a showing to direct the jury to return a verdict 
 for the defendant. 
 
 Hardinger vs. Modern Brotherhood. December. 1904. 72 Nebr. 860 
 and 869.
 
 THE STATE OF NEBRASKA 641 
 
 Jurisdiction for Suit on Certificate. 
 
 An action upon a certificate is transitory and not local in its 
 nature, and may be brought in whatever State the society issuing 
 the certificate can be found, without regard to where tlie contract 
 was made, or the member residing. 
 
 Perrine vs. Knights Templars and Masons' Life Indemnity Co., 
 March, 1904, 71 Nebr. 267. 
 
 When Society Does Not Comply With State Law, Duty of State 
 Officials. 
 
 When a society refuses and neglects to report to the auditor as 
 required by law, or shall exceed its powers, or conduct its business 
 fraudulently, or fails to comply with any of the provisions of the 
 statute, it is the duty of the auditor to notify the attorney general 
 in writing, and it is the duty of the attorney general to commence 
 an action immediately against such society, to enjoin it from 
 carrying on any business in the State. 
 
 State' vs. Banlvers' Union, April, 1904, 71 Nebr. 622. 
 
 Representative Form of Government Required. 
 
 A fraternal societ,y must have a representative form of govern- 
 ment. This requires that the directors or other officers who have 
 general charge or control of the property and business of the society 
 and the management of its affairs, shall be chosen by its members. 
 
 State vs. Bankers' Union, April. 1904, 71 Nebr. 622. 
 
 Corporate Power Limited. 
 
 When the exercise of corporate power has been regulated by 
 statute, the corporation cannot by its laws or resolutions change 
 the mode of the operation or exercise of this power. 
 
 Lange vs. Royal Highlanders. December, 1905, Supreme Court of 
 Nebraska, 106 N.W. 224. 
 41
 
 642 FRATERNAL SOCIETY LAW 
 
 Societies Must Have Representative Government. 
 
 A society must have a representative form of government, and as 
 to what that representative form of government is, see 
 
 Lange vs. Royal Highlanders, December, 190.5, Supreme Court of 
 Nebraska, 106 N. W. 224. 
 
 Societies ' Property Right in Corporate Name. 
 
 Under the State laws a license cannot be issued to a society whose 
 name or title so resembles a title alreadj' in use in the State as to 
 have a tendency to mislead the public. 
 
 Knights of the Maccabees of the World vs. Searle, December, ISC'). 
 Supreme Court of Nebraska, 106 N. W. 448. 
 
 Societies ' Name Must Not Mislead the Public. 
 
 If the name or title of a societ.y contains a descriptive word, by 
 which the society is generally known to the public, to incorporate 
 that as the characteristic word in the name of a proposed new cor- 
 poration, is held to have a tendency to mislead the public. 
 
 Knights of the Maccabees of the World vs. Searle, December, 1905, 
 Supreme Court of Nebraska. 106 N. W. 448. 
 
 Member Estopped by Overt Acts. 
 
 One cannot attack the validity of a delegate meeting 'of the society 
 where he pai"ticipated in the meeting and was a candidate for one 
 of the offices to be filled. 
 
 Burdirk vs. Sons and Daughters of Protection. .January. 1906, Su- 
 preme Court of Nebraska. 106 N. W. 466. 
 
 Insurance Department's Discretion. 
 
 The auditor of the State is elotlicd with discretion in determining 
 whether the society has complied with the law and is entitled to 
 license to do business.
 
 / 
 
 THE STATE OF NEBRASKA 643 
 
 State ex lel Bankers' Union vs. Searle, October, 1905, Supreme Court 
 
 of Nebraska, 105 N. W. 2S4. 
 
 Mortuary Fund Sacred to Mortuary Purposes. 
 
 T\u' luortiKii-y iiind oi' a society must l)i' kept scjijiriitr and apart 
 from (ither funds of the society. Tlie aiiditur should call the 
 attention of the society to irregularities ])racii<'c>d in regard to the 
 preservation of the mortuary fund, and allow the society to comply 
 with Ihe requirements of the law in that regard, and upon such 
 coinj)liance should not refuse to license on aticonnt of former irregu- 
 larities. 
 
 State ex rel Bankers' Union vs. Searle, October, 1905, Supreme Court 
 of Nebraska, 105 N. W. 284. 
 
 Agency of Local Officials. 
 
 Where members are required to pay an officer of a local lodge, 
 whose duty it is to remit to the society all such payments, the local 
 officer will be treated and regarded as the agent of the society. 
 
 Soehner vs. Grand Lodge Sons of Herman, September, 1905, Supreme 
 Court of Nebraska, 104 N. W. 871. 
 
 I 
 
 Forfeiture — Waiver of and Estoppel. 
 
 If with knowledge of the facts b,y reason whereof the society is 
 entitled to claim a forfeiture, it continues to treat the contract as in 
 force, or does no act inconsistent with an intention to insist upon 
 forfeiture, the forfeiture will be deemed waived. 
 
 Soehner vs. Grand ]_,odge Sons of Herman, September, 1905, Supreme 
 Court of Nebraska, 104 N. W. 871. 
 
 Warranty and Misrepresentations — Good Faith of Member. 
 
 Questions and answers in an application are to be construed most 
 strongly against the society, and whether such questions and 
 answers are so framed that the member mav have honestly mis-
 
 644 FRATERNAL SOCIETY LAW 
 
 taken their trne iiiijiort, and given Miiswers thei'etn which are. in 
 fact, untrue, but true as he may have reasonably understood the 
 questions, is for the ,iury to say in the light of the entire transac- 
 tion, whether the member acted honestly and in good faith, and 
 without intention to mislead or conceal any material fact. 
 
 Modern Woodmen of America vs. Wilsou. April, 1906, Supreme 
 Court of Nebraska, 107 N. W. 568. 
 
 Warranty — Immaterial Questions and Answers. 
 
 Where questions in a medical examination called for the name 
 of the ailments for which the applicant has been treated, and the 
 names of the physicians who treated him, the member is not 
 required to give the name of every ailment, however, trifling, or of 
 every physician he has consulted, but may confine his answer to 
 such ailments as are of a serious nature. For the facts in a case 
 where this doctrine was annonnced, see 
 
 Modern Woodmen of America vs. Wilson. April, 1906. Supreme 
 Court of Nebraska, 107 N. W. 568. 
 
 Initiation a Condition Precedent. 
 
 Where the laws required as a condition precedent to liability, that 
 applicants shall be initiated, and shall make an advance payment 
 of one assessment, the fact that an application has been accepted and 
 the membership fee paid, will not entitle an applicant's beneficiary 
 to recover on the certificate in the event of the apjilicant's death 
 before he has been initiated. 
 
 Royal Mystic Legion of America vs. Richardson. May, 1906, Supreme 
 Court of Nebraska, 107 N. W. 795. 
 
 Assessments Required Monthly if Called. 
 
 Where the laws provide that monilicrs shall iiay one assessment 
 each month, unless certain designated officers determine its payment 
 
 I
 
 THE STATE OF NEBRASKA 645 
 
 unnecessary, tlic payiiicnl, ol' siieh iisscssmciit, when cnllnd for, can- 
 not be resisted on tlir uronnd lliat it was unlawrnllv made. 
 
 Sovereign Camp Woodmen of the World vs. Ogden, May, 190G, Su- 
 preme Court of Nebraska, 1(»7 N. W. 860. 
 
 Suicide — After-enacted Laws. 
 
 At'ttT-enac-tiHl by-laws which arc reasonable in tiicir nature, and 
 hiwl'nlly enacted will be upheld, :ind an at'ter-enacted suicide law, 
 excepting' the rislc of suicide, wbctber tlie member be sane or insane, 
 is not an unreasonable by-law. 
 
 Lange vs. Royal Hi.s;hlanders. December, 1905. Supreme Court of 
 Nebraska, lOi; N. W. 224. 
 
 After-enacted Laws — Collateral Attack. 
 
 An attiick upon the validity of a by-law, on the ground that the 
 society was without jiowit to enact the same, does not amount to a 
 collateral attack on the society's right to do Imsiness. 
 
 Lange vs. Royal Highlanders. Feb., 1907, Supreme Court of Nebraska, 
 110 N. W. 1110. 
 
 Forfeiture — Waiver of. 
 
 A waiver of a condition in a contract will not be implied from an 
 act M-hicli is not inconsistent with an intention to insist upon per- 
 foi-mance of the contract. 
 
 DriscoU vs. Modern Brotherhood of America. Oct. 1906. Supreme 
 Court of Nebraska, 109 N. W. 158. 
 
 Conditions Precedent — Unauthorized Delivery of Certificate. 
 
 Where the laws of a soeiet.y require the initiation of a member 
 as a condition precedent to the delivery to him of a certificate, the 
 unauthorized delivery of such certificate by a subordinate lodge 
 officer before initiation, will not operate as a waiver of the condition.
 
 646 FRATERNAL SOCIETY LAW 
 
 Driscoll vs. Modern Brotherhood of America. Oi-t. 190G, Supreme 
 Court of Nebraska. 109 N. W. 158. 
 
 Agency — No Right to Waive Laws. 
 
 The collecting officer of a subordii:ate lodge by virtue of his au- 
 thorit}- to receive payment from members of their asse.ssments, 
 has no authorit.y to receive payments from non -members, and in 
 case he does so without the knowledge or consent of the society, of 
 any of his acts in that behalf, to repudiate such act. the society is 
 not estopped to deny that the persons thus makino; payment are 
 members. An agent cannot bind by his own uuaiitbin'i/.ed acts. 
 
 Driscoll vs. Modern Brotherhood of America, Oct., 1905. Supreme 
 Court of Nebraska, 109 N. W. 158. 
 
 After-enacted Laws — Increase of Member's Payments. 
 
 The payments required from members may be increased if it is 
 found that such increase is necessary to meet the requirements of 
 the society honestly administered. 
 
 Shepperd vs. Bankers' Union, June, 1906, Supreme Court of Nebraska, 
 108 N. W. 188. 
 
 After-enacted Laws Valid. 
 
 The laws of a soeiet.x' jjrovided that on the death of a member the 
 amount due luider his certificate should be ascertained by deduct- 
 ing from its face value, the monthly assessments from the date of 
 the death to the expiration of his life expectanc.v with 4% interest 
 thereon. Subsequent 1o the issuance of the certificate the laws 
 were changed, increasing the monthly assessments to be collected 
 from members, and provided, that such increased assessments should 
 be collected only from members thereafter .ioining, and that as to 
 members continuiiig to pay at the old rate to tlu- time of their 
 death, the increase over the old rate to be deducted from their cer- 
 tificates. Held, that the society had the right to deduct from the 
 certificate the difference between the old rate and tlie new rate, pro- 
 vided, by the new la\v, ei)ni|iu1ed IVniii tlu' time when the new rate 
 
 I
 
 THE STATE OF NEBRASKA 647 
 
 went into effect to the death of the momber. but not for the balance 
 of his life expectancy. 
 
 Sheppard vs. Bankers' Union, June, 1906, Supreme Court of Nebraska, 
 
 108 N. W. 188. 
 
 Evidence — Books of Subordinate Lodges. 
 
 In a suit in which a subordinate lodge is a ])arty, the books and 
 records of the lodge, when properly identified, are receivable in 
 evidence against the members of said lodge and their privies. 
 
 Union Pacific Lodge A. O. U. W. vs. Bankers' Surety Co., Oct., 1907, 
 Supreme Court of Nebraska, 113, N. W. 263. 
 
 Surety on Bonds— Estopped From Denying Incapacity of Principal. 
 
 Where a surety compan.y issues a contract indemnifying a fra- 
 ternal society from loss by larceny or embezzlement by its officers, 
 the contract not being illegal, the surety company will be estopped 
 from denying the legal capacity of the society in an action brought 
 to recover for loss sustained under the surety contract. 
 
 Union Pacific Lodge A. O. U. W. vs. Bankers' Surety Co., Oct., 1907, 
 Supreme Court of Nebraska, 113, N. W. 263. 
 
 Agency — Local Officials. 
 
 A subordinate lodge and collecting officer thereof whose duty it 
 is to receive and forward to the society the dues from members, are 
 held to be the agents of the society. 
 
 Pringle vs. Modern Woodmen of America, July, 1907, Supreme Court 
 of Nebraska, 113 N. W. 231. 
 
 Agency — Waiver of Laws. 
 
 The collection of dues and assessments from a member who has 
 been convicted of a felony, by the collector of a subordinate lodge, 
 with full knowledge of the fact of such conviction, which dues and 
 assessments are forwarded to and retained by such society, in a
 
 648 FRATERNAL SOCIETY LAW 
 
 suit after the death of the member, was held to be a waiver of the 
 forfeiture of the member's certificate on the ground of such con- 
 viction. 
 
 Pringle vs. Modern Woodmen of Amerif-a, July, 1907, Supreme Court 
 of Nebraska, 113 N. W. 231. 
 
 Beneficiaries — Change of — No Vested Interests. 
 
 "Where members have the right to designate and change their 
 beneficiaries at pleasure, beneficiaries are not parties to the con- 
 tract and have no vested rights therein during the life of the 
 member. 
 
 Ogden vs. Sovereign Camp Woodmen of the World. April. 1907, 
 Supreme Court of Nebraska, 111 N. W. 797. 
 
 Evidence — Admissions of Members. 
 
 In a suit upon a contract, where the issue is as to the good stand- 
 ing of the member at the time of his death, his statements which 
 tend to show his understanding of his status in the society, are 
 admissible in evidence in favor of the society. 
 
 Ogden vs. Sovereign Camp Woodmen of the World, April, 1907, 
 Supreme Court of Nebraska. Ill N. W. 797. 
 
 Forfeiture — Collector 's Neglect. 
 
 "When it is the custom of a collecting officer to receive by mail 
 remittances from members at a certain postoffiee. and the official 
 stationery of such officer designated that postoffiee as his address, 
 and remittances of an assessment properly addressed to such officer, 
 which reaches the designated postoffiee on the day when it was due, 
 is held a payment of the assessment where there was no provision 
 in the contract to the contrary, notwithstanding the fact tnat the 
 money was not delivered until later to the officer, who unknown 
 to the member, had changed his place of receiving mail. 
 
 Vanrura vs. Zapadni. April, 1907. Supreme Court of Nebraska, 111 
 N. W. 845.
 
 THE STATE OF NEBRASKA 649 
 
 Resort to Civil Courts — Unreasonable Restrictions Against. 
 
 A law of a society, which requires an appeal from the action of 
 its oificers, vested with authority to allow or reject death claims, 
 to the supreme body whose action thereon is declared to be final, was 
 held unreasonable and void as against public policy, and on tEis 
 point the court said, "to pursue a remedy provided by the laws 
 of the defendant would require probabh' three and possibly four 
 years to present the claim finally to its supreme court, and for the 
 purpose of the appeal perhaps to follow that body into a foreign 
 land, a course that practically amounts to a denial of justice. The 
 provisions are not only unreasonable in substance but more so on 
 account of the length of time and expense involved in following 
 them to a legitimate end. The collection of indemnity provided by 
 life insurance should be a speedy and simple process, and it is a 
 praiseworthy fact that most life insurance societies are constantly 
 simplifying forms of proof and convenience of collection, an ex- 
 ample that might well be followed by all." 
 
 Markham vs. Supreme Court Independent Order of Odd Fellows, 
 January, 1907, Supreme Court of Nebraska, 110 N. W. 638. 
 
 Self-Executing Forfeiture Laws. 
 
 A by-law of a society which provides for the suspension of a mem- 
 ber for non-payment of monthly dues without further notice than 
 that imported by the by-law, is reasonable in its nature and will be 
 upheld. 
 
 Nelson vs. Modern Brotherhood of America, Feb., 1907, Supreme 
 Court of Nebraska, 110 N. W. 1008. 
 
 After-enacted Laws — Representative Government. 
 
 Where a society has not complied with the statute and adopted a 
 representative form of government, its governing body is without 
 power to adopt a law changing the terms and obligations of its con- 
 tracts issued to one of its members. 
 
 Lange vs. Royal Highlanders, Feb., 1907, Supreme Court of Nebraska, 
 110 N. W. 1110.
 
 650 FRATERNAL SOCIETY LAW 
 
 Suicide — No Intent When Applying for Certificate. 
 
 Suicide will not defeat a recovery on a certificate when not pro- 
 cured by the member with the intention of committing suicide unless 
 the contract so provides in express terms. 
 
 Lange vs. Royal Highlanders, Feb., 1907. Supreme Court of Nebraska, 
 110 N. W. 1110. 
 
 Taxation of Funds of Fraternal Societies. 
 
 Some few j'ears ago the State Board of Assessments and Taxation 
 of Nebraska, observing the millions of dollars accumulated and con- 
 stantly increasing in amount held by fratei-ual societies in that State, 
 conceived the idea they could best serve the people of that State by 
 subjecting these funds to schedule and taxation as well as the prop- 
 erty and funds of corporations organized for profit. In conseqiience 
 of which they ordered the local assessors of each county to assess 
 the reserve or emergency funds of all societies found in their re- 
 spective counties. The tax, if imposed, would have cost the societies 
 a large sum of money per year for taxes. One society alone, it is 
 estimated, would have had to paj^ $100,000 annually. 
 
 A test case was made in that of the attempt to tax the Royal 
 •Highlanders, a society with headquarters at Aurora. This attempt 
 was resisted upon several grounds, two of which are of interest. 
 First, that the funds were exempt from taxation under the constitu- 
 tion of Nebraska, for the reason that they were used and devoted 
 to charitable purposes within the meaning of the constitution ; and, 
 second, that the Society was entitled to set off the amount of its 
 outstanding benefit certificates, matured and unmatured, against its 
 fidelity or mortuary fund. 
 
 Tlie constitution of Nebraska confers the power upon the legis- 
 lature by general law to exempt from taxation all property used 
 exclusively for charitable purposes, and the legislature has exercised 
 this power by general law exempting such property. 
 
 The trial court held against the Society on all points and the ease 
 was appealed to the Supreme Court where, in the opinion handed 
 down, the first contention above mentioned was not sustained, and 
 on this ]wint the Court used the following lanixuage:
 
 THli) STATE OF NEBRASKA G51 
 
 "A Fraternal Beneficiary Association, conducted for the mutual 
 benefit of its members and for the purpose of providing a fund by 
 the payment of stated dues and fees from sudi mcndjers for the 
 payment of a special amount upon the death of each member to a 
 beneficiary named by him, is not a charitable association, and its 
 funds are not used exclusively for charitable purposes, so as to ex- 
 empt them from taxation by the laws of this State." 
 
 It was further held that the question must be determined, not b.y 
 wliat the association i)rofesses to be. but by what it really is, and 
 the nature of the business it conducts; that tlie general trend of 
 judicial opinion of tliis country is that corporations, like appellant, 
 are, in effect, mutual insurance companies. The Coiu't then follows 
 willi a statement of the organization and purjioses of appellant, 
 which are the same as those usually declared by frHtcrnal societies, 
 and further says in the opinion, that, 
 
 "All of these purposes are confined to its members and ai-e de- 
 jiendent upon the payment by them of the assessments required by 
 the by-laws. Beneficiary members get what is p;iid for and nothing 
 UKirc. If they cease to pay, they cease to receive. Members con- 
 tinued to pay for the benefit of another, not because of any chari- 
 table or benevolent impulse, but because they expect upon their 
 death that those whom they are interested in or bound by law or ties 
 of affection, to provide for, will receive the amount which it is agreed 
 in the beneficiary certificate will be paid by the association to such 
 beneficiary. This is not charity nor benevolence. Pa.vment to the 
 beiu'ficiary does not depend upon his or her financial condition. A 
 wealthy child or widow of the assured member would be entitled 
 to claim the amount named in his certificate, equally with one poor 
 or needy. This benefit is ])aid because of so inuch mimcy and so 
 many assessments paid by the assured member. This benevolence or 
 charity is purely of a commercial character. It does not seek out 
 the needy, but invites only the able bodied and healthy. It is a 
 business arrangement and the beneficiary receives payment because 
 of a contract obligation on the part of the association to make such 
 payment. ' ' 
 
 The Court sustained the second contention, iianu^ly that the Society 
 was entitled to set off the amount of its outstanding benefit certlfi- 
 
 •^; 
 
 I
 
 652 FRATERNAL SOCIETY LAW 
 
 cates, matured and unmatured, against its fidelity fir iiKirtiiai-y fund. 
 The revenue statute of Nebraska, which is much lilvc that of many 
 states provides that "'the taxpayer may deduct from his gross 
 credits the amount of his bona fide debts in order to determine the 
 true value of his credits for assessment." The State insisted that 
 the mortuary fund of the Society was money loaned and invested, 
 and therefore must be taxed. Answering this contention, the Court 
 said: 
 
 "Money loaned or invested Avithin the ordinary meaning of the 
 term is money or ca'pital laid out, with a view of obtaining a profit 
 or income therefrom. The fact that the fund in question has as- 
 sumed the form of bonds, mortgages or other securities, does not of 
 itself fix its nature or determine its use. It is the use to which it is 
 put, that determines its character; that this fund is not loaned or 
 invested for profit within the ordinary meaning of the term, seems 
 clear. The fidelity or mortuary fund of the association is set apart 
 by its by-laws and the laws of this State, as a trust fund for the 
 payment of its beneficiary certificates. This fund must be kept and 
 conserved for that particular purpose, and no other," the Court 
 cites Equitable Life Insurance Company vs. Board of Equalization, 
 74th Iowa, 178, 37 N. W. 141. in which it was said that the statute 
 recognizes the existence of a debt from the company to the policy 
 holders and provides for securing its payments through the reserve 
 fimd, and the aggregate amount of such indebtedness should be 
 deducted from the reserve fund, and the balance, if any, be sub.iect 
 to taxes; also ]\Iicliiiian IMutual Life Insurance Company vs. Com- 
 mon Council of the city of Detroit. 95 N. W. 1131, involving the 
 question of the right of a Mutual Life Insurance Company, organized 
 for profit under a revenue statute, practically like that of Nebraska, 
 to set off its reserve fund credits against its mortuary debts, in which 
 it was held that it has the right to deduct the amount of its policies 
 from its premium reserve, and concludes : 
 
 "That the reserve fund of the company represents its indebtedness 
 to its policy holders, and should be exempt from taxation." 
 
 It was contended by the State that the case of the Michigan 
 Mutual Life Insurance Company vs. Common Council of the city of 
 Detroit, supra, and E(|uitablo Life [nsurance Couipaiiy vs. Board of
 
 THE STATE OF NEBRASKA 653 
 
 Equalization, supra, and Gold Insurance Co. vs. fjott, 54 Ala. 499, 
 furnished no authority for the determination of the question in the 
 case at bar, and that the doctrine of those cases applied only to old 
 line life insurance companies, the jjolicies of which have a ]>rpsent 
 surrender value. In respect to these questions, the Court said: 
 
 "It is difficult to understaiul why old line iiisurauec cduipanies, 
 which are organized for the purjiose of j^ain anil profit, should be 
 accorded the privilege of the set olf, and tiiat I'ight denied to bene- 
 ficiary associations, which are organized solely for the ])urpose of 
 conserving the interest of their members, and are prohibited by law 
 from being conducted for the purpose of gain. * * * We are of the 
 opinion that the certificates create a bona fide debt, payable out of 
 the particular credit or fund, known as the fidelity or mortuary 
 fund of the association, and may, for tin- purpose of taxation, be 
 set oft' against the securities in such fu7id."' 
 
 The Court held that all of the funds and property of the associa- 
 tion that have not been segregated and become a part of the mortu- 
 ary fund are taxable, meaning that the expense or'general fund, fur- 
 niture, fixtures and supplies and all property except that designated 
 as mortuary fund was taxable but that the reserve or mortuary- fund, 
 in whatever form, was exempt from taxation. 
 
 In re taxation of the Royal Highlanders. .June 20, 1906, 108 N. W. 
 183. Upon the question presented iu the foregoing citation, see 
 also State ex rel. vs. Drexel, 107 N. W. 110; Modern Fraternal 
 Order vs. Board of Review, 223 111. 54. 
 
 Forfeiture — Notice of Assessments. 
 
 Although a by-law of a society requires the clerk of a local lodge 
 to notify the members of their liability for assessments, his failure 
 so to do will not prevent a forfeiture for non-payment, if another 
 by-law expressly provides that such failure shall have that effect. 
 
 Chappie vs. Sovereign Camp Woodmen of the World, February, 1902. 
 64 Nebr. 55. 
 
 Forfeiture— Waivers of Laws Not Favored. 
 
 When the by-laws of a society expressly declare that the fact of
 
 654 FRATERNAL SOCIETY LAW 
 
 delinquency iu jiayment of assessments shall work a forfeiture of 
 membership, i\nd that thereafter the delinquent member shall not 
 be entitled to receive the pass word, or to participate in any of the 
 business or social proceedings of his camp, except that he may be 
 admitted to a meeting to pay his arrearages, when he must retire, 
 if he does not pay same, such forfeiture is not waived by the mere 
 fact that the member was present at all of the meetings and par- 
 ticipated in the proceedings of his local camp up to the time of his 
 death, which occurred snon after he became delinquent. 
 
 Chappie vs. Sovereign Camp Woodmen of the World, February, 1902, 
 64 Nebr. 55. 
 
 By-Laws, Agency — Waivers by Local Officials. 
 
 It is a settled law of this State that if a society receives dues and 
 mortuary assessments from n member who has forfeited his certifi- 
 cate, after notice of such forfeiture by its officers or those intrusted 
 with the duty of making assessments, it shall be held to have waived 
 such forfeiture, without regard to any restrictions or limitations 
 incorporated iu its certificates or bj^-laws with respect to the power 
 or authority of such persons to make such waivers. 
 
 Modern Woodmen of America vs. Colman, March, 1902, 64 Nebr. 
 162. 
 
 Forfeiture — Self-executing Provisions. 
 
 By-laws of a societ\' providing for the payment of assessments 
 made during the month on a certain day, and for suspension without 
 notice of members in default, are self-executing, and the suspended 
 member is not entitled to notice. 
 
 Field vs. National Council Knights and Ladies of Security. March, 
 1902, 64 Nebr. 226. 
 
 Agency — Local Official Cannot Waive Laws. 
 
 The iinancial secretaiy of a local council lias no implied authority
 
 THE STATE OF NEBRASKA 655 
 
 to waive any oT llir provisidiis oh' the by-laws gov<'fning the payment 
 of assessments. 
 
 Field vs. National Council Knights and Ladies of Security. March, 
 1902, G4 Nebr. 226. 
 
 Contract — What Composes. 
 
 The laws of the State, articles of incorporation, by-laws of the 
 society, application for membership, and certificate of membership 
 constitute the contract between the society and its members. 
 
 Farmers Mutual Insurance Co. vs. Kinney, May, 1902, 64 Nebr. 808. 
 
 After-enacted Laws Binding. 
 
 Where members have agreed in their applications to be governed 
 by all by-laws and rules "now in force or hereafter adopted," they 
 will be bound by all subsequently enacted by-laws the same as by 
 those in force at the time the certificate was issued. 
 
 Farmers Mutual Insurance Co. vs. Kinney, May, 1902, 64 Nebr. 808. 
 
 Forfeiture Under After-enacted Laws Valid. 
 
 A by-law which provides that the society shall not be liable for 
 any loss that may occur while the member is in default in the pay- 
 ment of legal assessments, which by-law was adopted subsequent 
 to the issuance of the certificate, is a reasonable by-law, and became 
 a part of the member's contract. 
 
 Farmers Mutual Insurance Co. vs. Kinney, May. ly02. 64 Nebr. 808. 
 
 Evidence, Coroner's Report Not Admissible. 
 
 A coroner's report, wherein he states what appeared to him to be 
 the cause of death of the member was held not admissible in evi- 
 dence; but in this case no coroner's jury had been called, because 
 the coroner apparently deemed it unnecessary. He was a physician 
 and surgeon, and was called as a witness for the defendant, and was
 
 656 FRATERNAL SOCIETY LAW 
 
 present at the trial and testified to the facts that he observed rela- 
 ting to the cause of death. 
 
 Kinney vs. Brotherhood of American Yeomen, December, 1905, Su- 
 preme Court of North Dakota, 106 N. W. 44. 
 
 Evidence — When Physician's Opinion Admissible. 
 
 The opinion of a physician as to the cause of death of a member is 
 not admissible, unless the facts upon which the opinion is based are 
 in evidence. 
 
 Kinney vs. Brotherhood of American Yeomen, December, 1905, Su- 
 preme Court of North Daltota, 106 N. W. 44.
 
 THE STATE OF NEVADA 657 
 
 THE 
 
 STATE OF NEVADA. 
 
 CHAPTER 29. 
 
 The State of Nevada has never enacted a fraternal society code. 
 Section 956 of the Compiled Laws of Nevada in a chapter upon In- 
 surance Corporations reads a.s follows : ' ' The provisions of this act 
 shall not apply to secret or fraternal societies, lodges, or councils 
 wliieh conduct their business and secure membership on the lodge 
 system exclusively, having ritualistic work and ceremonies in their 
 societies, lodges, or councils, nor to any mutual or benefit association 
 organized or formed and composed only of members of any such 
 society, lodge, or council exclusively." The legislature at its 20th 
 session j)assed an act relating to the regulation of the insurance busi- 
 ness in the State which act became a law March 29tli, 1901, wherein 
 insurance concerns were required to obtain annually a license to do 
 business in the State and to pay certain fees, and provided for pen- 
 alties for failure or neglect to comply with the provisions of the 
 act, but the act contained the following proviso: "Provided, how- 
 ever, that nothing contained in this act shall be construed to apply 
 to any fraternal secret society organized in this State, or working or 
 being subordinate to a supreme lodge of a secret society organized 
 imder the laws of another State, or to prevent the same from issuing 
 benefits to its members." 
 
 The legislature by act approved by the governor on March 29, 
 1907, passed an act in relation to interpleader ; a portion of the same 
 being germane to the business of fraternal societies is as follows: 
 "Whenever conflicting claims are or may be binding upon a person 
 for or relating to personal property or thr jierformance of an obliga- 
 42
 
 658 FRATERNAL SOCIETY LAW 
 
 tion or any poi'tion thereof, such person may bring an action against 
 the eoutiicting claimants and comijel them to interplead and litigate 
 their several claims among themselves. The order ni' substitution 
 may be made, and applicant or plaintiff be discharged from liability 
 to all or any of the conflicting claimants although their titles or 
 claims have not a common origin, or are not identical, but are ad- 
 verse to and independent of one another." 
 
 Section 1 Chapter CLXVIII Statutes of Nevada, 1907. 
 
 Contracts — Construction of Doubtful Language. 
 
 If on the face of a contract of insurance there is in the language 
 used, or its ei¥ect, any room for construction or doubt, the benefit of 
 the doubt must be given to the assured, and in the construction of 
 contracts of insurance such meaning should be given to the language 
 employed as plain people usually attach to it. 
 
 Gerhauser vs. North British & Mer. Co., Octoher, 1871, 7 Nev. 174. 
 
 Representations, Materiality for Jury. 
 
 The question whether the representations made by the applicant 
 for insurance are materially untrue, or ttntrue in some particular 
 material to the risk, is a question of fact for the jury. 
 
 Gerhauser vs. North British & Mer. Co., October, 1871, 7 Nev. 174. 
 
 Warranty — Materiality May be Fixed by Contract. 
 
 Parties to a contract of insurance ma.v decide for themselves what 
 facts or representations shall be deemed material and stipulate as to 
 their materiality, and when they have so agreed, the agreement 
 precludes all inquiry upon the subject. 
 
 Gerhauser vs. North British & Mer. Co., October, 1871, 7 Nev. 174. 
 
 Warranty and Misrepresentation — No Extension by Construction. 
 
 As a warrant.v will not be created or extenilcd by constiMiction or 
 
 i^
 
 THE ^TATL' OF XEVADA (;5<) 
 
 implication, so the iuteiition of the iiaiiics U> ;iii insiii-niici' contract 
 to conclude by convention the question of the in;ili'ri;il ity of a rep- 
 resentation should be clearly manifested, and in ease of doubt, the 
 doubt is to be resolved in favor of the insured. Though as an or- 
 dinary rule written contracts cannot be controlled by or extended 
 by cotemporaneous statements nul <Mnlirae<'d in the writing, in a 
 case of a contract of insurance a recovery may be prevented by proof 
 of verbal misrepresentations, which were indueive, and were ma- 
 terial to the risk, but the burden of i)roof is on the defendant to 
 show the raisrepresen-tation. and that it was material. 
 
 Gerhauser vs. North Britisli & Mer. Co.. Octol)er. 1871. 7 Nev. 174.
 
 660 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF ^EW HAMPSHIRE. 
 
 CHAPTER 30. 
 
 (Chapter 86 of Statutes aud Sections as therein uuinbered.) 
 
 Section 1. A fraternal beneficiary association is hereby declared 
 to be a corporation, societ^y or voluntary association formed or or- 
 ganized and carried on for the sole benefit of its members and 
 beneficiaries, and not for profit. Each association shall have a 
 lodge system, with ritualistic form o| work and representative 
 form of government, and may make provisions for the payment 
 of benefits to members and their beneficiaries in ease of death, sick- 
 ness, temporary or permanent physical disability, either as the re- 
 sult of disease, accident or old age. The fund from which the 
 payment of such benefit shall be made, and the fund from which the 
 expenses of such association shall be defrayed, shall be derived from 
 assessments or dues collected from its members. Payment of death 
 benefits shall be to the families, heirs, blood relatives, affianced hus- 
 band or affianced wife, or to persons dependent on the member. 
 Such associations shall be governed by this act, and shall be sub- 
 ject to the provisions of the insurance laws of this State consistent 
 with the provisions of this act, and no law hereafter passed shall 
 apply to them unless they be expressly designated therein. 
 
 Section 2. All such associations coming within the description 
 as set forth in section 1 of this act, organized under the laws of 
 this or any other State, province or territory, and now doing busi- 
 ness in this State, may continiie such business if the commissioner 
 of insurance is satisfied that such associations are reliable and worthv
 
 THE HTATI'J OF NEW HAMPSHIRE 661 
 
 of public patronage; provided, that iln^-y licrcul'tei- comply willi tliu 
 jn'ovisions of this act regulating the annual reports, and tlie desig- 
 
 ii.'ilioii ol' 111 iiiinissioiii'i' of insiiniiu-r ;is llir |)crson upon wiioiii 
 
 pi-occss may be served, as liei'einai'ter ])l'ovi(li'(l. 
 
 Section iJ. Any such association coming witiiin tin- descriiition 
 as set forth in section 1 of this act, organized luidi-r the laws of 
 any oilier .State, province or territory, and not now doing business 
 ill this State, shall be admitted to do business within the State, 
 if the commissioner of insurance is satisfied that such association 
 is reliabli' ;md worthy of piiblii' patronage, and when it shall have 
 fili'd with the commissioner of insurance a duly certified copy of 
 its charter and articles of association, and a copy of its consti- 
 tution or laws, certified to by its secretary or corresponding officer, 
 together with an appointment of the commissioner of insurance of 
 this State as a person upon whom process may be served as here- 
 inafter provided, and provided that such association shall be shown 
 by certificate to be authorized to do business in the State, province 
 or tei'i'itory in which it is incorporated or organized, in case the 
 laws of such State, province or territory shall provide for such au- 
 thorizatiim ; and in case the laws of such State, province or terri- 
 toi-y ilo not jn-ovide for any formal authorization to do Inisiness 
 on the part of any such association, then such association shall 
 be shown to be conducting its business in accordance with the pro- 
 visions of this act, for which purpose the commissioner of insurance 
 of this State may personally, or by some person to be designated by 
 him. examine into the condition, affairs, character, and business 
 methods, aceoimts, books, and investments of such association at 
 its home office, which examination shall be at the expense of such 
 association, and shall be made within thirt>- days after demand there- 
 for, and the expense of such examination shall be limited to $5 
 per diem and expenses. 
 
 Section 4. Every such association doing business in this State 
 shall, on or before the first day of March of each year, make and 
 file with the commissioner of insurance of this State, a report of its 
 affairs and operations during the year ending on the thirty-first 
 day of December immediately preceding, which annual report shall 
 be in lieu of all other reports required by any other law. Such
 
 662 FRATERNAL SOCIETY LAW 
 
 reports shall be upon blank forms to be provided by the commis- 
 sioner of insurance, or may be printed in pamphlet form, and shall 
 be verified under oath by the duly authorized officers of such asso- 
 ciation, and shall be published, or the substance thereof, in the 
 annual report of the commissioner of insurance under a separate 
 part entitled "Fraternal beneficiary associations," and shall contain 
 answers to the following questions: 
 
 1. Number of certificates issued during the year, or members ad- 
 mitted. 
 
 2. Amount of indemuitj' afi'ected thereby. 
 
 3. Number of losses or benefit liabilities incurred. 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representatives 
 or heirs. 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 8. Number and kind of claims compromised or resisted, and brief 
 statement of reasons. 
 
 9. Does association charge annual or other pei'iodical dues or 
 admission fees? 
 
 10. How much on each one thousand dollars annually or per 
 capita, as the case may be? 
 
 11. Total amount received, from what source, and the disposition 
 thereof. 
 
 12. Total amount of salaries paid to officei's. 
 
 13. Does association guarantee, in its certificates, fixed amounts 
 to be paid regardless of amount realized from assessments, dues, 
 admission fees, and donations? 
 
 14. If so, state amount guaranteed, and the security of .such guar- 
 anty. 
 
 15. Has the association a reserve fund? 
 
 16. If so. how is it created, and for what purpose, the amount 
 thereof, and how invested? 
 
 17. Plas the association more than one class? 
 
 18. If so, how many, and the amount of indemnity in each? 
 
 19. Xunilier of momlx'rs in each class?
 
 THE STATE OF NEW HAM PS II I HE 663 
 
 20. ir vohuitary, so state, and give date uf or^ani/ation. 
 
 21. If organized under the laws of this State, under what law 
 and at what time, giving chapter and .vear and date of passage 
 of the act? 
 
 22. If organized under the laws of anj^ other State, province or 
 territory, state such fact and the date of organization, giving chap- 
 ter and year and date of passage of the act. 
 
 23. Number of certificates of beneficiary membership lapsed 
 during the year. 
 
 24. Namber in force at beginning and cud of yeai'; if move than 
 one class, number in each class. 
 
 25. Names and addresses of its president, secretary, and treas- 
 urer, or corresponding officers. 
 
 The commissioner of insurance is authorized and empowered to 
 address any additional incpiiries to any such association in relation 
 to its doings or condition, or any other matter connected with its 
 transactions relative to the business contemplated by this act; and 
 such officers of such association as the commissioner of insurance 
 may require shall promptly reply in writing, under oath, to all such 
 inquiries. 
 
 Section 5. Each such association now doing or hereafter admitted 
 to do business within this State, and not having its principal office 
 within this State, and not being organized under the laws of this 
 State, shall appoint in writing the commissioner of insurance or his 
 successor in office to be its true and hnvful attorney, upon whom all 
 lawful process in any action or proceeding against it may be served 
 and in such writing shall agree that any lawful process against it 
 which is served on said attornej^ shall be of the same legal force 
 and validity as if served upon the association, and that the author- 
 ity shall continue in force so long as any liability remains out- 
 standing in this State. Copies of such certificate, certified by said 
 commissioner of insurance, shall be deemed sufficient evidence 
 thereof, and shall be admitted in evidence with the same force and 
 efi:'ect as the original thereof might be admitted. Service upon 
 such attorney shall be deemed sufficient service upon such associ- 
 ation. When legal process against any such association is served 
 upon said commissioner of insurance, he shall immediately notify
 
 6(ji FRATERNAL SOCIETY LAW 
 
 the association of such service by letter, prepaid and directed to 
 its seeretar.y or corresponding officer, and shall within two days 
 after such service forward in the same manner a copy of the process 
 served on him to such officer. The plaintiff in such process so 
 served shall paj' to the commissioner of insurance at the time of such 
 service a fee of three dollars, which shall be recovered by him as 
 part of the taxable costs if he prevails in the suit. The commis- 
 sioner of insurance shall keep a record of all processes served upon 
 him. which record shall show the day and hour when such service 
 was made. 
 
 Section 6. The commissioner of insurance of this State shall, upon 
 the application of any association having the right to do business 
 within this State as provided by this act. issue to such association 
 a permit in writing authorizing such association to do business within 
 this State, for which certificate and all proceedings in connection 
 therewith such association shall pay to said commissioner a fee 
 of five dollars. 
 
 Section 7. Existing associations may re-incorporate themselves, at 
 their option, under this act. and any new association may organize 
 under its provisions, but no certificate of incorporation shall issue 
 until the association has submitted to the insurance commissioner 
 their constitution, by-laws, and a statement of their proposed meth- 
 ods, and they have been by him approved. 
 
 Section 8. Such association shall not employ paid agents in so- 
 liciting or procuring members, except in the organizing or building 
 up of subordinate bodies or granting members inducements to jiro- 
 cure new members. 
 
 Section 9. No contract with any other association shall be valid 
 when there is a contract, agreement or under.standing between the 
 meml)er and the beneficiary that the beneficiary or any person for 
 him shall pay such member's assessments and dues, or either of them. 
 
 Section 10. The money or other beneiit. charity, relief or aid 
 to be paid, provided or rendered by an association authorized to do 
 business under this act shall not be liable to attachment by trus- 
 tee, garnislii'c or other i)rocess. and shall not be seized, taken, ap- 
 ])i-(i|iriated or applied by any leyal or equitable pi'ocess or bj- oper- 
 alion of law. to pny any di'lil or li;ibilily of a certificate-holder, or of
 
 THE STATE OF NEW HAMPSHIRE 6G5 
 
 iijiy beneficiary named in a certificate, or of any person who maj' 
 have any right thereunder. 
 
 Section 11. Any such association organized under the laws of 
 this State may provide for the meetings of its legislative or gov- 
 erning body in any other State, province or territory wherein such 
 association shall have; subordinate bodies, and all business transacted 
 at such meetings shall be valid in all respects as if such meetings 
 were held within this State; and where the laws of any such asso- 
 ciation provide for the election of its officers by votes to be cast in 
 its subordinate bodies, the votes so east in its subordinate bodies 
 in any other State, province or territory shall be valid, as if cast 
 within this State. 
 
 Section 12. Any person, officer, member or examining physician, 
 who shall knowingly or willfully make any false or fraudulent state- 
 ment or representation in or with reference to any application for 
 membership, or for the purpose of obtaining anj^ money or benefit 
 in any association transacting business under this act, shall be 
 guilty of misdemeanor, and upon conviction shall be punished by 
 a fine of not less than sf^lOO nor more than $500, or imprisonment 
 in the county jail for not less than thirty days nor more than 
 one year, or both, in the discretion of the court ; and any pers(Ui 
 who shall willfully uuike a false statement of any material fact or 
 thing in a sworn statement as to the death or disability of a cer- 
 tificate-holder in any such association for the purpose of procuring 
 payment of a benefit named in the certificate of such holder, and 
 any person who shall willfully make any false statement in any 
 verified report or declaration under oath required or authorized 
 by this act, shall be guilty of perjury, and shall be proceeded against 
 and punished as provided by the statutes of this State in relation 
 to the crime of' perjury. 
 
 Section 13. Any such association refusing or neglecting to make 
 the report as provided in this aet shall be excluded from doing busi- 
 ness within this State. Said commissioner must, within sixty days 
 after failure to make such report, or in case any such association 
 shall exceed its powers or shall conduct its business fraudulently, or 
 shall fail to comply with any of the provisions of this act. give notice 
 in writing to the attorney-general, who shall immediately commence
 
 666 FRATERNAL SOCIETY LAW 
 
 ao action against such association to enjoin the same from carrying 
 on any business; and no injunction against any such association shall 
 be granted by any court, except on application by the attorney- 
 general at the request of the commissioner of insurance. No asso- 
 ciation so enjoined shall have authority to continue business until 
 such report shall be made or overt act or violations complained of 
 shall have been corrected, nor until the costs of such action be paid 
 by it, provided the court shall find that such association was in de- 
 fault as charged, whereupon the commissioner of insurance shall 
 reinstate such association ; and not until then shall such association 
 be allowed to again do business in this State. Any officer, agent 
 or person acting for any association or subordinate body thereof 
 within this State while such association shall be so enjoined or 
 prohibited from doing business pursuant to this act, shall be deemed 
 guilty of a misdemeanor, and on conviction thereof shall be pun- 
 ished by a fine not less than $25 nor more than $200, or by imprison- 
 ment in the county jail not less than thirty days nor more than 
 one year, or by both such fine and imprisonment, in the discretion 
 of the coui't. 
 
 Section 1-1. Any person who shall act within this State as an 
 officer, agent or otherwise, for any association which shall have 
 failed, neglected or refused to comply with or shall have violated 
 any of the provisions of this act, or shall have failed or neglected 
 to prociu'e from the commissioner of insurance proper certificate of 
 authority to transact business as provided for by this act, shall 
 be subject to the penalty provided in the la-st preceding section for 
 the misdemeanor therein specified. 
 
 Section 15. All acts and parts of acts inconsistent with the ]U'0- 
 visions of this act are hereby repealed; but nothing herein con- 
 tained shall apply to or in anyway intei-fere with ilasonic. Odd 
 Fellow, Knights of Pythias, Red Men or other similar orders, or 
 any association working in the lodge system which limits its cer- 
 tificate-holders to a particular class, or to the employees of any 
 firm, or municipal or other corporation, or to corporations or asso- 
 ciations insuring only members of some particular order, sect, pro- 
 fession or trade. 
 
 The following general i)rovisions of the Insurance Statutes of 
 New Hampshire are proper to be included here :
 
 THE STATE OF NEW HAMPSHIRE (J(i7 
 
 An Act Relating- to the Provisions of Life Insurance Policies. 
 
 lie it eiiaL'tcd \>y llif Sciuitc and House of Representatives in Gen- 
 eral Coui't convened: 
 
 Sectiiiii 1. Kvery |i(ilicy o[' insurance issued oi- delivered within 
 this State on or after tiie first day of January, nineteen linndred 
 aiul eig'ht, by any life insurance corporation doiny Inisiness within 
 the State shall contain the entire contract Ijetween the parties. 
 
 Section 2. All acts ami parts of acts inconsistent with the pro- 
 visions of this act are hereby repealed. 
 
 Section 3. This act shall take effect and be in force from and after 
 its passage. 
 
 .\pproved April 'A. 1907. 
 
 An Act Regulating- Life Insurance Companies and prohibiting the 
 diversion of funds for political purposes. 
 
 Be it enacted by the Senate and House of Representatives in Gen- 
 eral Court convened : 
 
 Section 1. No insurance company or association including fra- 
 ternal beneficiary associations, doing business in this State shall, 
 directly or indirectly, pay or use or offer, consent or agree to pay 
 01' use any money or jiroperty for or in aid of any political party, 
 committee or organization, or for or in aid of any corporation, joint 
 stock or other association organized or maintained for political pur- 
 poses or for or in aid of any candidate for political office, or for 
 nomination for such office, or for any political purpose whatsoever, 
 or for the reimbursement or indemnification of any person for money 
 or property so used. Any officer, director, stockholder, attorney or 
 agent of any corporation or association which violates any of the 
 provisions of this act, who participates in. aids, abets, or advises or 
 consents to any .such violation, and any i^erson who solicits or know- 
 ingly receives any^ money or property in violation of this act, shall be 
 guilty of a misdemeanor and be punished by imprisonment for not 
 more than one year ai^d a fine of not more than one thousand 
 dollars, and anv officer aiding or abetting in anv contribution made
 
 668 FRATERNAL SOCIETY LAW 
 
 in violation of this act, shall be liable to the company or association 
 for the amount so contributed. 
 
 No person shall be excused from attending and testifying, or 
 producing any books, papers or other doeiiments before any court 
 or magistrate, upon any investigation, proceeding or trial, for a 
 violation of any of the provisions of this act, upon the ground or 
 for the reason that the testimony or evidence, documentary or other- 
 wise, required of him may tend to incriminate or degrade him; 
 but no person shall be prosecuted or subjected to any penalt}' or 
 forfeiture for or on account of any transaction, matter or thing 
 concerning which he may so testify or produce evidence, docu- 
 mentary or otherwise, and no testimony so given or produced shall 
 be used against him upon any criminal investigation or proceeding. 
 
 Section 2. All acts and parts of acts inconsistent with the pro- 
 visions of this act are hereby repealed. 
 
 Section 3. This act shall take effect and be in force from and 
 after its passage. 
 
 Approved April -3. 1907. 
 
 An Act placing- Certain Corporations, Associations, Societies, and 
 Orders under the Jurisdiction of the Insurance Commissioner. 
 
 (From Laws of 1891.) 
 
 Section 1. Every corporation, association, society or order, or- 
 ganized under the laws of this State, which issues a certificate to 
 or makes a promise or agreement with its members whereby any 
 sum of money or other benefit is to become due or payable upon 
 the decease of a member, or whereby such money or other benefit 
 is to become due or payable as an endowment or lifetime benefit, 
 or an investment involving tontine or survivorship principles for the 
 benefit of persisting members, shall annually, on or before the first 
 day of March in each year, make and transmit to the insurance 
 commissioner a statement under oath of its president and secre- 
 tary, or officers corresponding thereto, by whatever name they may 
 be called, showing its financial standing, the amount and sources 
 of its income, and the amount and manner of its disbursement for
 
 THE tiTATE OF NEW HAMPHIIIKE (j(i9 
 
 tlic year rudiug on tlic |ii-ccriliiiL;' lliiiiy-tirst day nl' Dcci'inlici-, and 
 shall make sneli I'lirt lici' stati'inents ol' its iiU'inlji'i'sliip and linancial 
 transactions, plans, and incthods of Inisiness done or i)ro]>osed to be 
 done, as said commissioner shall deem necessary to a proper exhibit 
 of its business and standing', in accordance with blanks to be fur- 
 nished by the coniniissionrr for this purjjose; and every such cor- 
 poration, association, society or order heretofore oi'yani/.ed in this 
 State shall file with said commissioner a full statement as above 
 nMiuifcd within thirty days after the passage of this act, and any 
 such coi'poratidn. association, society or order hereafter- organized in 
 this State shall, before doing any business, tile with the commis- 
 sioner a. eertitied copy of its charter and by-laws and a full state- 
 iiieiit, under oath of its president and secretary, showing the finan- 
 cial standing of the corporation, association, society or order, and 
 explaining fully tlie plans, contracts, and methods proposed to be 
 used in the prosecution of its business. Upon receiving such state- 
 ments, if the connnissicuier is satisfied that the corporation, asso- 
 ciation, society or order is relialde and worthy of i)uhlic patronage, 
 he shall grant a license authorizing them to do business. sub.ject 
 to law. until the first day of April thereafter: and annually there- 
 after on the first day of April such license may be renewed, so tong- 
 as the corporation, association, society or order complies with the 
 i-e(|uirements aforesaid. The acting officers of such corporations, 
 associations, societies or orders shall be liable to indietnu^nt and 
 subject to a fine not exceeding five hundred dollars and not less 
 than fifty dollars for violation of the provisions of this act. This 
 act shall not be construed to apply to any benevolent association 
 which pays funei-al and sick benefits only. 
 
 Section 2. It shall be the duty of the insurance connnissioner. 
 whenever he shall have reason to believe that any such corporation, 
 association, society or order, organized under the laws of this State 
 or otherwise, is unsound, or conducting its affairs contrary to 
 public ])olicy. or ui)on the petition of five or more jiolicy. certificate, 
 contract or bond holders of any such corporation, association, society 
 or order, setting forth that they believe such corporation, association, 
 society or order unsomid. or that there is waste or mismanagement 
 in the affairs of such eorp(U-ation, association, society or order, or
 
 670 FRATERNAL SOCIETY LAW 
 
 that their business is conducted in a manner contrary to public 
 policy, with reason for such belief, to make personal examination 
 of the atfairs of such eorj^oratiou, association, society or order, at 
 the expense of the corporation, association, society or order, and 
 for such purpose he shall have access to all the records, books, and 
 papers of that corporation, association, society or order, and may 
 examine, under oath, an.v officer or agent thereof. If upon exami- 
 nation the commissioner shall be of the opinion that the affairs 
 and business methods of the corporation, association, society or 
 order are in such condition as to render it unsafe or unworthy of 
 public confidence, he shall consult the attorney-general, and, with 
 his approval, shall file a petition against such corporation, asso- 
 ciation, society or order, in the office of the supreme court of the 
 county in which such corporation, association, society or order has 
 its principal place of business, for closing the aft'airs of the cor- 
 poration, association, soeietj^ or order; and any judge of said court 
 may issue a temporary injunction to restrain such corporation, asso- 
 ciation, societj' or order from doing business, which shall be dis- 
 solved or made permanent by said court upon the hearing and 
 determination of said petition; and the court may make such fur- 
 ther orders and decrees as the circumstances of the ease and the 
 protection of the imblic may render proper. 
 
 Section 3. It shall not be lawful for any such corporation, asso- 
 ciation, society or order, organized under the laws of this State or 
 any other State, to issue such certificates, contracts, bonds or prom- 
 ises in this State unless such corporation, association, society or 
 order shall first obtain license of the insurance commissioner au- 
 thorizing them so to do. Before receiving such license such cor- 
 poration, association, society or order shall file witli the insurance 
 commissioner a certified copy of its charter and by-laws, and a full 
 statement, under oath of its president and secretary, showing the 
 financial standing of the corporation, association, society or order, 
 and explaining fully the plans, contracts, and methods used or 
 proposed to be used in the ])roseeution of their business, in accord- 
 ance with blanks furnislied bj' him. Upon receiving such copies 
 and statements, if the insurance commissioner is satisfied with the 
 same, and that the plans, contracts, and methods are worthy of
 
 THE STATK OF NEW HAMPSHIRE (j71 
 
 ])ulj|i(' palriiuiiyi', iiiid Ili,-i1 sueJi (/orpdi'ation. associiit inn, society 
 or oi'dcr is relial)l(' and entitled to jiublic confidence, and such 
 cor]Kn'ation, association, society or order has filed with the insur- 
 ance commissioner a written stipulation, duly authenticated by 
 the company, agreeing that any legal process affecting the cor- 
 jjoralion, association, society or order served on the insurance 
 eonnnissioner for the time being shall have the same effect as 
 if served personally on the corporation, association, society or 
 order within the State, he shall grant such license authorizing 
 such corporation, association, society or order to do business 
 under the plans, contracts, and methods by them described, sub- 
 ject to the laws of this State, until the first day of April there- 
 after, and annually thereafter on the first day of April such license 
 may be renewed so long as the corporation, association, society 
 or order shall comply with the requirements aforesaid. For each 
 license as above, the corporation, association, society or order .shall 
 pay to the insurance commissioner, five dollars when applied for, 
 and if such license be granted, five dollars more, and five dollars 
 for each annual renewal thereof. Such license may be revoked at 
 any time by the insurance commissioner for the causes and in the 
 manner jjreseribed by law. 
 
 Section 4. No person shall act as an agent of any such corpo- 
 ration, association, society or order, until he shall have filed with the 
 insurance commissioner a certificate from the corporation, asso- 
 ciation, society or order, or its authorized general agent, author- 
 izing him to act as such agent, and obtained license thereon from 
 him so to do for each cor]ioration. association, society or order for 
 which he proposes to act. I'pon filing the aforesaid certificate, the 
 commissioner shall issue a license to such person to act as agent 
 for such corporation, association, society or order in this State, 
 provided the corporation, association, society or order for which 
 he proposes to solicit ap])lications for certificates, contracts or in- 
 vestments, shall be authorized to do such business in this State, which 
 license shall continue until the first day of April thereafter, unless 
 for cause revoked in the meantime ; and upon filing a certificate 
 as aforesaid, such license may be renewed on said first day of April, 
 and annually thereafter, and for such license and for each subse-
 
 672 FRATERNAL SOCIETY LAW 
 
 queut renewal, the person receiving the same shall pay to the com- 
 missioner the sum of one dollar. No officer or member of any such 
 corporation, association, society or order shall be required to secure 
 license under the provisions of this section unless he is regularly 
 employed and devotes his time to soliciting membership for such 
 corporation, association, society or order, receiving compensation 
 therefor. 
 
 Section 5. If any person, except as provided in section four of 
 this act, shall solicit or receive any application for an endowment, 
 investment, bond, lifetime benefit or death benefit, or receive money 
 or value therefor, for any such corporation, association, society 
 or order, without such license from the commissioner, or after the 
 license granted to him or the corporation, association, society or 
 order for which he acts as agent has been revoked, he shall be pun- 
 ished for each offense by fine not exceeding one hundred dollars, 
 one half to the use of the prosecutor; but any certificate or in- 
 vestment issued on an application thus procured shall bind the 
 corporation, association, society or order, if otherwise valid. If 
 any agent shall refuse to show his license when reqviested so to 
 do by any person, he shall be punished in the manner as pi'ovided 
 for persons acting without a license. 
 
 Section 6. Whenever the insurance commissioner shall liave rea- 
 son to believe that any such corporation, association, society or order, 
 whether organized in this State or otherwise, or any officer or agent 
 of such corporation, association, society or order, or any other 
 person shall have violated fuiy law of this State relating to such 
 corporations, associations, societies or orders, their officers or agents, 
 or the business by them conducted, or the laws relating to lotteries, 
 gambling or wagers, or failed to comply with any requisition of 
 the laws of this State relating to such corporations, associations, 
 societies or orders, their oiScers or agents, or the business by them 
 conducted, or the laws relating to lotteries, gambling or wagers, he 
 shall forthwith report the fact, with any information he may have 
 relating thereto, to the attornej'-general of the State, who shall, 
 if in his judgment it is advisable so to do, prosecute every such 
 corporation, association, society or order, their officers or agents, 
 or other person thereof; and any such corporation, association, so-
 
 THE STATE OF NEW HAMPSHIRE (J73 
 
 ciety or oi'dei', their officer, agenl uv oilier i)ers()ii, upun couvietiou, 
 shall be liable for each offense to a fine not exceeding- two thousand 
 dollars and eosts of prosc-ciition, and not less than live hundred 
 dollars. 
 
 Section 7. The fees of the eonimissioncr, when not otherwise pro- 
 vided in this act, shall be the same for the examination of such 
 corporations, associations, societies or orders as jtrovided by law 
 for the examination of insurance companies. 
 
 Assessments Recoverable Against Forfeited Member. 
 
 A by-law of a society provided for the forfeiture of member.ship 
 upon the member failing to pay three death assessments. Held, that 
 the member was liable for assessments levied after his suspension 
 and withdrawal for the payment of a loss occurring during the con"- 
 tinuance of his membership, and that recovery might be made against 
 the member for such assessments. The Court said: "As a member 
 of the association the defendant was at the same time both insurer 
 and insured. As to the latter it was optional with him to forfeit 
 his insurance and membership rights as he pleased, but as to the 
 former he had no option as to the relinquishment of that condition 
 as it was of a very different class of obligation pertaining and at- 
 taching to that relation. " 
 
 Provident Mutual Relief Association vs. Pelissier. June, 1S99, 69 
 N. H. 60C. 
 
 Benefits — Duty of Local Lodge Upon Receiving Same From Society. 
 
 A subordinate lodge upon receiving the amount of a benefit due 
 to a member of such lodge which is paid it by the Society, cannot 
 refuse to pay the benefit over to the beneficiary, because of the de- 
 ceased member's non-compliance Avith some of the laws or rules of 
 the subordinate lodge, such member not having- been suspended or 
 expelled. 
 
 Taylor vs. Pettee, December. 1899. 70 N. H. 38. 
 43
 
 674 FRATBICXAL SOCIETY LAW 
 
 Resort to Civil Courts. 
 
 In the absence of a by-law to the contrary a beneficiary entitled 
 to a benefit dxie iipon the death of a member may maintain an action 
 therefor without first submitting the claim to the society or anj' com- 
 mittee thereof. 
 
 Mullen vs. Court Queen City Order Foresters, June, 1900, 70 N. H. 
 327. 
 
 Member Under Charges Not Entitled to Benefits. 
 
 A member is not entitled to benefits while charges are pending 
 against him. Where the laws so provide and until such charges 
 are disposed of, recovery of benefits cannot be had against the 
 society. 
 
 Mullen vs. Court Queen City Order Foresters, June, 1900, 70 N. K. 
 327. 
 
 Benefits— What is Total Disability. 
 
 Where a certificate stipulates for payment of an indenmity in the 
 event of and during the total disability of a member, which requires 
 his absolute disability and continuous confinement to his house, the 
 necessity for confinement is held to be merely an evidentiary fact of 
 the determination of the existence of disability, and that the member 
 was entitled to recover benefits while totally incapacitated for labor 
 by illness, although he was out of doors during a portion of the time. 
 
 Scales vs. Masonic Protective Association, December. 1900, 70 N. H. 
 490. 
 
 Evidence — Dormant by Laws. 
 
 Where a by-law is relied upon to defeat a claim for benefits on the 
 ground that a member was forfeited by reason of refusal to make 
 payment of assessment in accordance with the terms of a by-law, it 
 is competent to receive evidence to show that the by-law has been
 
 THE STATE OF NEW HAMPSHIRE (;75 
 
 habitually disregnrded, and thereby waived so that it is no longer 
 part of the contract sued upon. 
 
 Salvail vs. Catholir Order of Foresters, December, 1900, 70 N. H. 635. 
 
 By-laws Binding — No Vested Rights. 
 
 By-laws are binding upon those who consent to their adoption, 
 or acquiesce in their enforcement, although they are irregularly en- 
 acted, and may impair the so-called vested rights of members. 
 
 Allen vs. Merrimac County Odd Fellows Association, April, 1904, 72 
 N. H. 525. 
 
 Fraternal Societies Exempt From General Insurance Laws. 
 
 A fraternal beneficiary law enacted in 1895 is held to exempt fra- 
 ternal societies from the general insurance laws of the State. 
 
 Brotherhood Accident Company vs. Linehan Insurance Commis- 
 sioner, June, 1901, 71 N. H. 7. 
 
 Liability of Members for Prosecuting Members for Offenses Against 
 the Society. 
 
 A case action was brought by a member for libel, malicious prose- 
 cution ami conspiracy to unlawfully exjiel tTu' plaintiff from a lodge 
 of Odd Fellows. The Court held that in order to sustain an action 
 of this character, it would be necessary for the plaintiff to show 
 that the defense instituted the prosecution against him without hav- 
 ing probable cause to believe he Avas guilty of the offense charged, 
 and that in such a case it is unimportant how bitter and hostile the 
 defendants' personal feelings again.st the plaintiff were nor how 
 persistent they were in endeavoring to cause his expulsion. 
 
 Moon vs. Flack, Supreme Court of N. H., February, 1907, 65 Atl. 829. 
 
 Members Acting in Judicial Capacity Not Liable in Damages for 
 Acts Done. 
 
 The officers of a lodge of Odd Fellows, in the prosecution and ti'ial
 
 676 FRATERNAL SOCIETY LAW 
 
 of a member charged with offences against the laws of the Society 
 were held to be acting in a judicial capacity and as such are not 
 responsible in damages for their acts in that prosecution. To hold 
 otherwise would be to violate the fundamental principle relating to 
 the administration of justice and the due and orderly system for 
 settlement of private contentions. 
 
 Moon vs. Flack, Supreme Court of N. H.. February. 1907. 65 Atl. 829. 
 
 I
 
 THE STAT I', OF NEW JERSEY 677 
 
 THE 
 
 STATE OF NEW JERSEY. 
 
 CHAPTER 31. 
 
 The Fraternal Societies in New Jersey are governed by Chap. 
 128 Laws of 1893, which was ap])roved March 11, 1893. Section one 
 of said chapter was amended by act approved May 13, 1907, and the 
 said chapter 128 or so amended is as follows : 
 
 1. A fraternal beneficiary association is hereby declared to be a 
 corporation, society or voluntary association, organized and carried 
 on for the sole benefit of its members and their beneficiaries, and not 
 for profit, having a lodge s.ystem with a ritualistic form of work and 
 a representative form of government, and making provision for the 
 payment of benefits in case of sickness, disability or death of its 
 members, subject to their compliance with its constitution and laws, 
 the fund from which the payment of such benefits shall be made and 
 the fund ivom which the expenses of such association shall be de- 
 frayed being derived from assessments or d\ies collected from its 
 members, and the payment of death benefits beins' made to the fam- 
 ilies, heirs, blood relatives, affianced husband or affianced wife of, 
 or to persons dependent upon, the members. Such associations .shall 
 be governed by this act and shall be exempt from the provisions of 
 insurance laws of this State, and no law hereafter passed shall apply 
 to them unless they be expressly designated therein. Nothing in this 
 act shall appl.y to any fraternal beneficiary society, order or asso- 
 ciation heretofore licensed or authorized to do business in this State, 
 and such society, order or association may continue to transact busi- 
 ness in this State as heretofore. 
 
 2. That all such associations coming within the description as set
 
 678 FRATERNAL HOCIETY LAW 
 
 iortli in section one of this act, organized under the laws of this or 
 any other State, province or Territory, and now doing business in 
 this State, may continue such business: Provided, That they here- 
 after comply with the provisions of this act regulating annual re- 
 ports and the designation of the commissioner of banking and insur- 
 ance as the person upon whom process may be served as hereinafter 
 provided. 
 
 3. That any such association coming within the description as 
 set forth in section one of this act, organized under the laws of any 
 other State, province or Territory, and not now doing business in this 
 State, shall be admitted to do business within this State when it shall 
 have filed with the commissioner of banking and insurance a duly 
 certified copj- of its charter and articles of association, and a copy of 
 its constitution or laws, certified to by its secretary or corresponding 
 officer, together with an appointment of the commissioner of bank- 
 ing and insurance of this State as a person upon whom process may 
 be served as hereinafter provided : And provided, That such asso- 
 ciation shall be shown by certificate to be authorized to do business 
 in the State, province or Territory in which it is incorporated or 
 organized in ease the laws of such State, province or Territory shall 
 provide for such authorization; and in ease the laws of such State, 
 l^rovince or Territory do not provide for any formal authorization to 
 do business on the part of any such association, then such association 
 shall be shown to be conducting its business in accordance with the 
 provisions of this act, for which purpose the commissioner of bank- 
 ing and insurance of this State may personally, or by some person 
 designated by him, examine into the condition, affairs, character and 
 business methods, accounts, books and investments of such associa- 
 tion at its home office, which examination shall be at the expense of 
 such association, and shall be made within thirty days after demand 
 therefor, and the expense of such examination shall be limited to the 
 sum of fifty dollars. 
 
 4. That every such association doing business in this State shall, 
 on or before the first day of March of each year, make and file with 
 the commissioner of banking and insurance of this State a report 
 of its affairs and niici-ilions during 1 he \v;\v ending on the thirty-first 
 (hiy of December immediately jirecedinu. wliicli annual reimrt shall
 
 THE STATE OF NEW JERSEY 679 
 
 be in lieu of all other reports required by any other law ; such reports 
 shall be upon blank forms to be provided by the commissioner of 
 banking and insurance, or may be printed in pamphlet form, and 
 shall be verified under oath by the duly authorized officer of such 
 association, and shall be i)ublished, or the substance thereof, in the 
 annual report of the commissioner of hanking and insurance under 
 a separate part entitled "Fraternal Beneficiary Associations." and 
 shall contain answers to the following questions: 
 
 I. Number of certificates issued during the year, or members ad- 
 mitted. 
 
 II. Amount of indemnity effected thereby. 
 
 III. Number of losses or benefit liabilities incurred. 
 
 IV. Number of losses or benefit liabilities paid. 
 
 V. The amount received from each assessment for the year. 
 
 VI. Total amount paid members, beneficiaries, legal representa- 
 tives or heirs. 
 
 VI. Number and kinds of claims for which assessments have been 
 made. 
 
 VIII. Niimber and kind of claims compromised or resisted, and 
 brief statement of reasons. 
 
 IX. Does association charge annual or other periodical dues or 
 admission fees? 
 
 X. How much on each one thousand dollars annually or per 
 capita, as the case may be? 
 
 XI. Total amount received, from Avhat soiirce, and the disposition 
 thereof. 
 
 XII. Total amount of salaries paid to officers. 
 
 XIII. Does association guarantee in its certificates fixed amounts to 
 be paid regardless of amount realized from assessment dues, admis- 
 sion fees and donations? 
 
 XrV. If so, state the amount guaranteed, and the security of sucH 
 guaranty. 
 
 XV. Has the association a reserve fund? 
 
 XVI. If so, how is it created and for what purpose, the amount 
 thereof and how invested? 
 
 XVII. Has the association more than one class? 
 
 XVIII. If so, how manv. and the amount of indemnity in each?
 
 680 FRATERNAL SOCIETY LAW 
 
 XIX. Number of members in each class. 
 
 XX. If voluntary, so state, and give date of organization. 
 
 XXI. If organized under the laws of this State, under what law 
 and at what time, giving chapter and year and date of passage of 
 the act. 
 
 XXII. If organized under the laws of any other State, province 
 or Territory, state .such fact and the date of organization, giving 
 chapter and year and date of passage of the act. 
 
 XXIII. Number of certificates of beneficiary membership lapsed 
 during the year. 
 
 XXIV. Number in force at beginning and end of year; if more 
 than one class, number in each class. 
 
 XXV. Name and address of its president, secretary and treas- 
 urer, or eorrespondnng officers. 
 
 The commissioner of banking and insurance is empowered to ad- 
 dress any additional inquiries to any such association in relation 
 to its doings or condition, or any other matter connected with its 
 ti'ansaction relative to the business contemplated by this act, and 
 such officers of such association as the commissioner of banking and 
 insurance may require shall promptly reply in writing, under oath, 
 to all such inquiries. 
 
 5. That each such association now doing or hereafter aduaitted 
 to do business within this State and not having its principal office 
 within this State, and not being organized under the laws of this 
 State, shall appoint, in writing, the commissioner of banking and 
 insurance or his siiccessor in office to be its true and lawful attorney, 
 upon whom all lawful process in any action or proceeding against it 
 may be served, and in such writing shall agree that any lawful pro- 
 cess against it which is served on said attorney shall be of the same 
 legal force and validity as if served upon the association, and that 
 the authority shall continue in force so long as any liability remains 
 outstanding in this State; copies of such certificate, certified by said 
 commissioner of banking and insurance, shall be deemed sufficient 
 evidence thereof, and shall be admitted in evidence with the same 
 force and efl'eet as the original thereof might be admitted : service 
 upon such attorney shall be deemed sufficient service ui)on such asso- 
 ciation ; when legal process against any such association is served
 
 THE STATE OF NEW JERSEY 681 
 
 upon said commissioner of bankiijg and insurance, he shall imme- 
 di;itply notify the association of such service by letter, prepaid and 
 directed to its secretary oi- oorrcsiionding officer, and shall within 
 two d;iys after such service forward in the same maimer a copy of 
 the process served on him to such officer; the plaintiff in such process 
 so served shall pay to the commissioner of banking and insurance, at 
 the time of such service, a fee of three dollars, which shall be recov- 
 ered by him as part of the taxable costs if he prevails in the suit; the 
 coiuniissiouer of banking and insurance shall keep a record of all 
 processes served upon him, which record shall show the day and 
 hour when such service was made. 
 
 6. That the commissioner of banking and insurance shall, upon 
 application of any association having the right to do business within 
 this State as provided by this act, issue to such association a permit 
 in writing, authorizing such association to do business within this 
 State, for which certificate and all proceedings in connection there- 
 with such association shall pay to said commissioner the fee of five 
 dollars. 
 
 7. (Section providing for incorporation, repealed July -t, 1899. by 
 chapter 76, laws of 1899.) 
 
 8. That such associations shall -not employ paid agents in solicit- 
 ing or procuring members, except in the organizing or building up 
 of subordinate bodies or granting members inducements to procure 
 new members. 
 
 9. That no contract with any such association shall be valid when 
 there is a contract, agreement or understanding between the mem- 
 ber and the beneficiary or any person for him shall pay such mem- 
 ber's assessments and dues, or either of them. 
 
 10. That the money or other benefit, charity, relief or aid to be 
 paid, provided or rendered by any association authorized to do busi- 
 ness under this act shall not be liable to attachment by trustee, 
 garnishee, or other process, and shall not be seized, taken, appro- 
 priated or applied b,v any legal or equitable process, or by operation 
 of law, to pay any debt or liability of a certificate holder or of any 
 beneficiary named in a certificate, or of any person who may have 
 any right thereunder. 
 
 11. That anv such association orsranized under the laws of this
 
 6g2 FRATERNAL SOCIETY LAW 
 
 State may provide for the meetings of its legislative or governing 
 body in any other State, province or Territory wherein such asso- 
 ciation shall have subordinate bodies ; and all business transacted at 
 such meetings shall be valid in all respects as if such meetings were 
 held in' this State; and where the laws of any such association pro- 
 vide for the election of its officers by vote to be cast in its subordinate 
 bodies, the vote so cast in its subordinate bodies, in any other State, 
 province or Territory, shall be valid as if cast within this State. 
 
 12. That any person, officer, member or examining physician, who 
 shall knowingly or wilfully make any false or fraudulent statement 
 or representation, in or with reference to any application for mem- 
 bership, or for the purpose of obtaining any money or benefit in 
 any association transacting business under this act, shall be guilty 
 of a misdemeanor, and upon conviction shall be punished by a fine 
 of not less than one hundred dollars nor more than five hundred dol- 
 lax's, or imprisonment in the county jail for not less than thirty days 
 nor more than one year, or both, in the discretion of the court : and 
 any person who shall willfully make a false statement of any ma- 
 terial fact or thing in a sworn statement as to the death or disa- 
 bility of a certificate holder in any such association, for the purpose 
 of procuring payment of a benefit named in a certificate of such 
 holder, and any person who shall wilfully make any false state- 
 ment in any verified report or declaration under oath required or 
 authorized by this act, shall be guilty of perjury and shall be pro- 
 ceeded against and punished as provided by the statutes of this 
 State in relation to the crime of perjury. 
 
 13. That whenever said commissioner of banking and insurance 
 shall become satisfied that any such association doing business 
 within this State is exceeding its power, or conducting its business 
 fraudulently, he may personally, or by some person to be designated 
 by him, examine into the condition, affairs, character and business 
 methods, accounts, books and investments of such association at its 
 home office, which examination shall be at the expense of such asso- 
 ciation, antl sueli expense shall be limited to the sum of fifty dollars. 
 
 14. That any such association refusing or neglecting to make 
 the report as provided in this act shall be excluded from doing busi- 
 ness within this State; said commissioner of banking and insurance
 
 b 
 
 THE STATE OF NEW JERSEY 683 
 
 must within sixty days after failure to make such report, or in cmsc 
 any such association shall exceed its powers or shall conduct its 
 business fraudulently, or shall fail to comply with any of the pro- 
 visions of this act, or shall refuse to submit its accounts, books, 
 papers and vouchers for examination by said commissioner or person 
 designated by him, shall give notice in writing to the Attorney- 
 General, who shall immediately commence an action against such 
 association to enjoin the same from carrying on any business; and 
 no injunction against any such association shall be granted by any 
 court, except on application by the Attorney-General, at the request 
 of the commissioner of banking and insurance; no association so 
 enjoined shall have authority to continue business until such reports 
 shall be made, or overt acts or violations complained of shall have 
 been corrected, nor until the cost of such action be paid by it: 
 Provided, The coui-t sliall find that such association was in dcfnult 
 as charged, whereupon the commissioner of banking and insurance 
 shall re-instate such association, and not until then shall such asso- 
 ciation be allowed to again do business in this State; any officer, 
 agent or person acting for any association or subordinate body 
 thereof, within this State, while such association shall be so enjoined 
 or ijrohibited from doing business pursuant to this act, shall be 
 deemed guilty of a misdemeanor, and on conviction thereof shall be 
 punished by a fine not less than twenty-five nor more than two hun- 
 dred dollars, or by imprisonment in the county jail not less than 
 thirty days' nor more than one year, or by both such fine and im- 
 prisonment, in the discretion of the coui't. 
 
 15. That any person who shall act within this St^te as an officer, 
 agent or otherwise, for any association which shall have failed, 
 neglected or refused to comply with, or shall have violated any of 
 the ju-ovisions of this act, or shall have failed or neglected to procure 
 from the commissioner of banking and insurance proper certificates 
 of avithority to transact business, as ])rovided for by this act, shall 
 be subject to the penalty provided in the last i)receding section for 
 the misdemeanor therein specified. 
 
 16. That this act shall not apply to any corporation, society or 
 association, carrying on the business of life, health, casualty or acci- 
 dent insurance for profit or gain, but it shall apply to fraternal bene-
 
 684 FRATERNAL SOCIETY LAW 
 
 ficiary associations only, as defined in section one of this act; this act 
 shall not affect or apply to any grand or subordinate lodges of the 
 Ancient Order of Free and Accepted Masons, Independent Order of 
 Odd Fellows, Improved Order of Red Men, Junior Order of American 
 Mechanics, as they now exist, nor of the Knights of Pythias (ex- 
 clusive of the endowment rank), nor to similar orders, nor to any 
 association not working on the lodge system or which limits its cer- 
 tificate holders to a particular class or to the employees of a particu- 
 lar town or city, designated firm, business house or corporation. 
 
 17. That every association to which this act shall be applicable 
 .shall pay the following fees to the commissioner of banking and 
 insurance for defraying the expenses of this act. viz.: 
 
 For filing the declaration or a certified copy of charter required by 
 this act, ten dollars. 
 
 For filing the annual report therein provided, five dollars. 
 
 For every copy of any paper filed or recorded in his office, eight 
 cents per folio. 
 
 For affixing his official seal on such copy and certifjnng same, one 
 dollar. 
 
 18. That all acts and parts of acts inconsistent with the provisions 
 of this act are hereby repealed, and that this act shall take effect 
 innuediatel}'. 
 
 Can a Member Set Off His Claim of Losses Against Society's Claim 
 for Assessments? 
 
 The receiver of a mutual assessment insurance company brought 
 an action to recover assessments upon a policy of insurance. The 
 defendants sought to set off a sum due to it for losses covered by 
 the policy. The question presented was whether there was a right 
 of set-off. The Court, in discussing this question, said: 
 
 "Under such a contract, the relation of the defendant to the asso- 
 ciation is two-fold. It is assured thereby, and hence a possible 
 creditor. It is a member of the association, and hence a quasi 
 partiicf ill the enterprise. The pres(>nt suit is to enforce the liability 
 of the defendants in the character of member. The set-off is claimed 
 in its character of creditor. The injustice of allowing one member
 
 THE STATE OF NEW JERSEY 685 
 
 ol' a. iiiiitiKil iiisiiniiii'c cdiiii):!!! y on .'in asscssiin'iil plan l.o escapi' 
 lial)ility to contribute to the coiiiiiioii fund, and tliei'cljy obtain an 
 advantage ovef liis fellow members, all of whom embarked on the 
 same enterprise, presumably on equal terms; and to allow one 
 creditor of an insolvent company to be preferred over other creditors, 
 merely because of his liability to contribute to the loss of all. is mani- 
 fest. The authorities seem quite unanimous in disallowing his sef-off 
 in such a case. ' ' 
 
 Stone vs. New Jersey Co., Supreme Court of N. J., June, 1907, 66 
 Atl. 1072. 
 
 Members Must Exhaust Remedies in Society Before Resorting to 
 Civil Courts. 
 
 An application for mandamus was filed seeking to secure the rein- 
 statement of a suspended court, which court had been summarily 
 suspended by the chief executive official of the order. Subsequent 
 to the suspension a hearing was given to the suspended court before 
 the executive council of the Society, which body sustained and con- 
 tinned the suspension. It was charged that the suspension was 
 irregularly made aiul the hearing before the executive council irregu- 
 larly and luifairly conducted and that the proceedings were void. 
 The Society denied this and claimed that the suspended court must 
 first exhaust its remedies by an appeal to the superior bodies of the 
 Society where such an appeal may be had. The Court said : 
 
 "The case shows that under the rules of the organization there is 
 a right to appeal to the subordinate high court which will meet in 
 September next, and from the decision of the latter there may be 
 an appeal to the supreme high court. It should be stated that this 
 is not a case involving property rights or money demands, but in- 
 volves a question of discipline only. While the case shows that the 
 high court has a sick and funeral benefit department, the subordin- 
 ate courts cannot participate in it unless they are connected with 
 that department by becoming contributors to that fund. The court 
 Manhattan was not connected with that department, but had its 
 own benetieial department as allowed by the rules. In such a situa- 
 tion, the law is settled that ordinarily the appeal must first be taken
 
 686 FRATERNAL SOCIETY LAW 
 
 within the orgauizatioii, before recourse can be had to the civil 
 courts (Zelift' vs. Knights, 53 N. J. Law 536 : 22 Atl. 63.) The rehitor 
 contends that this principle should not be applied to this application 
 on the ground that the irregularity of the hearing was so marked 
 that no testimony or minutes were taken, and hence there was no 
 record upon which to ajjpeal. But the case shows that the relator 
 and his witnesses were examined in the pi-esence of the council and 
 that there were some minutes Icept of the proceedings, and it cannot 
 be said that the action of the council was void for want of juris- 
 diction. It is presumed that the appellate body within the organ- 
 ization will do justice between the parties." 
 
 Grant vs. Ancient Order of Foresters. Supreme Court N. J., June, 
 1907. 66 Alt. 902. 
 
 Resort to Civil Courts — Void Lodge Trial. 
 
 A member that had been expelled from the Society sought by man- 
 damus to be reinstated. A by-law of the Society provided that the 
 trustees should strike from the roll and expel from the benefits of the 
 Society all persons unlawfully or improperly upon the roll, or who 
 should refuse to comply with any lawful requirements regarding 
 same. The member was required to furnish information as to his age. 
 and was notified that unless he furnished such information by a date 
 certain his refusal would be communicated to the trustees. The 
 member failed to furnish the information, and his name was stricken 
 from the list of members. The Court said: 
 
 "We think that the jn-oceeding, as set forth, was not a lawful 
 mode of expelling a member for the cause stated. The relator's 
 right to participate in the fund in. question was a property- right. 
 Hence his expulsion involved more than a mere matter of discipline. 
 It was a quasi judicial proceeding. The relator became a member 
 of the order and of the benefit fund in 1897. and at that time com- 
 plied with all the requirements tlu'u in force whifli included a pre- 
 cise statement 'of the date and yeai' of his bii-th. * * * AVhen the 
 relator was notified that upon his failnr(> to answer the question that 
 was put to him, the trustees would take such action as Article 16 
 warranted, he was justified in supposing that such action would be
 
 THE STATE OF NEW JERSEY 687 
 
 ill the form of trial in which he would have the ticncfit of a specifica- 
 tion of the precise offence with which he was charged, and notice of 
 the time and place when such eharsre would be i)r()vi'd against liim, 
 and an opportunity to be heard in liis defense. In a ipiasi judicial 
 proceeding- affecting his property riglits. the relator was entitled 
 to this protection." 
 
 Byrne vs. The Supreme Circle Brotherhood of the Union, Supreme 
 Court of N. J., February, 1907, 65 Atl. 839. 
 
 Lodge Trials— Member Charged Entitled to Make Defense. 
 
 A members had been expelled from the society and he brought 
 mandamus proceedings to secure his restoration. It was charged 
 by the member that his expulsion was illegal because among other 
 reasons he was not given an opportunity to be heard in his defense. 
 The Court said : 
 
 "We think that his contention must prevail. The member of a 
 benevolent association, against whom proceedings are pending which 
 have his expulsion for their object, may make such defense as he 
 may have to the charges upon which the proceedings are based, and 
 if he is expelled without having an opportunity to present his de- 
 fense, he is deprived of a substantial right which the ordinary prin- 
 ciples of justice require that he be iicrinitted to enjoy." 
 
 Venezia vs. Italian Mutual Benevolent Society, Supreme Court of 
 N. J., Marcli, 1907, 65 Atl. 89S. 
 
 Members Rights Under Medical Examination. 
 
 A certificate provided that the secretary of the medical board of 
 the society should have the power to reconsider any medical exam- 
 ination within six months after passing the same, and if there be 
 sufficient cause which existed at the time of the examination to have 
 rejected the applicant, said secretary might reject the applicant, 
 and whereupon the member should cease to be a beneficiary mem- 
 ber of the society and the certificate issued should become null and 
 void. It was held in a suit upon the certificate that the society in 
 order to sustain a defense that a medical examination was reconsid-
 
 688 FRATERNAL SOCIETY LAW 
 
 ered, and the applicant rejected, must prove that such rejection was 
 for a sufHeient cause which existed at the time of the original exam- 
 ination. 
 
 Gilroy vs. Supreme Court I. 0. F., November. 1907. Court of Errors 
 and Appeals, N. J., 67 Atl. 1037. 
 
 Judgments of Tribunals, Finalty of Same. 
 
 As to a provision in the laws of a society which have the effect 
 of making the judgment of the supreme tribunal of the society con- 
 clusive, the court in construing this provision said, "The clause 
 making the action or decision of the Supreme Court of the order 
 final and conclusive occurs in the provision for appeals, which 
 provides that the right of appeal shall be vested in every court, and 
 that an appeal shall lie against the action or decision of any ofiSeer 
 or of any court, except the action or decision of the Supi'eme Court, 
 and that is made final and conclusive in all cases. We think the 
 words 'final and conclusive' were enacted to mark the distinction 
 between the efi'ect of the decision of the Supreme Court of the order 
 and that of its other courts, and not to exclude the jurisdiction of 
 the legal tribimal. The Supreme Court of the order is the only 
 corporation whose contractual liability is in question, and we ought 
 not to adopt a construction which would make it the final judge of 
 its own cause." 
 
 Gilroy vs. Supreme Court I. 0. F.. November, 1907. Court of Errors 
 and Appeals, N. J.. 67 Atl. 1037. 
 
 Warranties and Representations, Rule With Respect. 
 
 The member represented in his application in response to ques- 
 tions propounded, that his father died of pneumonia, when in fact 
 he died of phthisis. A provision in the laws was to the eifect that 
 if the applicant makes any false statement or gives any untrue 
 answers, or conceals i>r neglects to disclose any material fact relat- 
 ing to payments or to anything contained in his medical examina- 
 tion, he, ipso facto forfeits all payments and all benefits that he 
 or his benefieiarv would otherwise be entitled to receive. The court
 
 THE STATE OF NEW JERSEY 689 
 
 s;ii(l : "The question is presented therefore, whether the ai:swer 
 must be absolutely triu> in oi-der to ])revent the forfeiture, or whether 
 it suffices that the assured honestly believed it to be true. Whether 
 the statements are to be regarded as warrantees or as representations 
 is not important. If representations, they were as to a fact material 
 to the risk, the obligation of the assured to answer truthfully was as 
 great as if his answers were warranted to be true. The rule adopted 
 by this court is that with re.speet to questions as to matters that the 
 insurer must know are not within the personal knowledge of the 
 applicant, with respect to those that call, not for definite statements 
 of facts, but for statements of belief or opinion ; the letter of the 
 contract is to be controlled by its spirit and [lurposes: and the 
 answers will he deemed warranted only of the Ixma fide belief and 
 opinion of the applicant." 
 
 Gilroy vs. Supreme Court I. O. F., November. 1907, Court of Errors 
 and Appeals, N. J., 67 Atl. 1037. 
 
 Members Have Voice in Changing Purposes of Society. 
 
 The objects of a soeiet_y cannot be changed without the vote of 
 the con.stituent members. 
 
 State Council .Junior Order of United American Mechanics vs. 
 National Council Junior Order of United American Mechanics 
 of America et al., August, 1906, Court of Cliancery of N. J., 64 
 Atl. 561. 
 
 Purposes of Society, Change of. 
 
 The constitution of a national and state society provided that the 
 objects of the society was to establish a sick and funeral fund, and 
 that such objects should not be changed except by the vote of the 
 constituent members of the society. The National Society attempted 
 to enforce an amendment providing for the creation of a "insiar- 
 ance branch and a sick funeral fund" \vithout .submitting such 
 amendment to the members of the society. Tt was held that such 
 amendment constituted a material change which justified the with- 
 draAval of the state council from affiliation. 
 4-1 
 
 «
 
 690 FRATERNAL SOCIETY LAW 
 
 State Council Junior Order of United American Mechanics vs. 
 National Council Junior Order of United American Mechanics 
 of America et al., August, 1906, Court of Chancery of N. J., 64 
 Atl. 561. 
 
 Right of Subordinate to Secede from Society. 
 
 The state council of a society was incorporated in New Jersey 
 prior to the organization and incorporation of the national council 
 composed of delegates chosen from the various state councils, the 
 affiliation between the state and national council was voluntary, and 
 it was held that upon the termination of such affiliation liy the 
 withdrawal of the state council from the national council, that the 
 former was entitled to the corporate name and had the right to 
 restrain the national council from operating within the state under 
 such name for the purpose of destroying the state council and its 
 various subordinate bodies. 
 
 state Council Junior Order of United American Mechanics vs. 
 National Council Junior Order of United American Mechanics 
 of America et al., August, 1906, Court of Chancery of N. J., 64 
 Atl. 561. 
 
 Warranty, Breach in Part and Waiver. 
 
 When a statement in an application for insurance was warranted 
 to be true, and it is proven that it is false in part, the applicant 
 failing to answer the whole inquiry, there is a breach of warranty 
 which avoids the contract but the insurer waives an answer to that 
 part of the inquiry oiily which is left unanswered. 
 
 Hanrahan vs. Metropolitan Life Insurance Co., March, 1906, Court 
 of Errors and Appeals N. J., 63 Atl. 280. 
 
 After-enacted Liquor Law Valid. 
 
 A provision was contained in a benefit certificate which provided 
 for the member's compliance "with all the laws, regulations, and re- 
 quirements which are or may be hereafter enacted by said order 
 is the express condition upon which I am to be entitled to participate 
 in the beneficiary fund and have and enjox- all the iAhov benefits
 
 THE STATE OF NEW JEHHEY 691 
 
 and privileges of such order." Subsequent to tlic issuance of this 
 certificate a by-law was adopted providing that "any member of 
 the order who shall, after August 1st, 1898, enter the business of 
 selling by retail intoxicating liquors as a beverage shall be expelled 
 from the order" and made provision for suspension from rights in 
 the beneficiary fund and rendered the certificate null and void, it 
 was held that such after-enacted by-law was valid and binding upon 
 one who was holding a certificate at the time of its enactment. 
 
 The State ex rel Strang vs. Camden Lodge A. O. U. W., February, 
 1906, 73 N. J. L. 500. 
 
 Forfeiture — Burden of Showing at all Times. 
 
 The burden of showing that a member has not made payment of 
 an assessment, although notice of such assessment had been mailed 
 to the member while living at his last known postoffice address, as 
 required by the by-laws, was upon the defendant. 
 
 Van Etten vs. Grand Lodge A. O. U. W., February, 1905, 72 N. J. L. 
 61. 
 
 After-enacted Suicide Law. 
 
 A member in his application expressly agreed to conform in all 
 respects to the laws, rules, and usages of the order, then in force 
 or which might be thereafter adopted. Subsequent to the issuance 
 of the certificate the society adopted a law which read: "No bene- 
 fit shall be paid to a beneficiary or beneficiaries of any member com- 
 mitting suicide while sane or insane," and subsequent to the pas- 
 sage of such by-law the member in question suicided and the fact of 
 the membership, the agreement, passage of the suicide law, and that 
 the member committed suicide, was set out in a plea filed in a suit 
 brought to recover upon the certificate in question. A demurrer 
 was filed to the plea and in passing upon the pleadings the court 
 said: 
 
 "The plea demurred to sets forth no facts which constitute a bar 
 to this action ; it does not aver any violation by the insured of any 
 law, rule or regulation of the association enacted by it for its gov-
 
 692 FRATERXAL SOCIETY LAW 
 
 ernment or for the goverument of its fund; but, by waj- of argu- 
 ment, asserts that he, by entering into the stipulation which it re- 
 cites agreed that the association might, at will, so change the eon- 
 tract of insurance as to relieve it. to a material extent from the 
 liability created thereby. We think such a construction of the stip- 
 ulation is not warranted by its language. To say that it coiifi-rs 
 upon the association the power to so alter the contract of insurance 
 by an after-adopted by-law is to destroy the right of the beneficiary 
 to be paid the amount called for by the certificate, iu case the in- 
 sured shall die by his own hand, is equivalent to saying that it 
 authorized the association to limit its liability to such an extent as 
 it chose : for instance, by providing that no benetit shall lie paid in 
 case the death of the insured shall result from an accident occurring 
 through his own negligence or from a disease which is epidemic in ifs 
 character, or from any other cause or -causes which it may designate. 
 An agreement by a person applj'^ing for membership in one of these 
 fraternal organizations and for insurance therein, that he will com- 
 ply with such rules and regulations as the association may thereafter 
 enact for its own government, or the government of its death fund, 
 cannot be construed into a stipulation conferring any such power as 
 has been suggested without disregarding the plain meaning of the 
 words of the agreement." 
 
 Sautter vs. Supreme Conclave Improved Order of Heptasophs. .lune, 
 1906, 72 N. J. L. 325. 
 
 Cause of Action Accrues Upon Repudiation of Contract. 
 
 Where a contract embodies mutual and inter-dependent conditions 
 and obligations, and one part either disables himself from perform- 
 ing or jjrevents the other fi'om performing, or repudiates in ad- 
 vance his obligations under the contract, and refuses to be longer 
 bound thereby, communicating such repudiation to the other i)arty, 
 the latter party is not only excused from further performance on 
 his part, but may, at his option, treat the contract as terminated for 
 all purposes of performance, and maintain an action at once for 
 the damages occasioned by such repudiation, without waiting the 
 time fixed by the contract for performance by the defendant.
 
 THE STATE OF AWIV JERSEY 693 
 
 O'Neill vs. Supreme Council Anieri('an Legion o[ Jlonor, Feby., 1904, 
 70 N. J. L. 410. 
 
 Upon Repudiation of Contract Member Has Cause of Action for 
 Damages. 
 
 A luoiiiber of a fraternal society holding a benefit certi(ic:i1c li:is 
 such an interest in the enforcement of the certificate as entith's liiin 
 to innintain an Mction to recover damages for its re[ni(liation. 
 
 O'Neill vs. Supreme Council American Legion of Honor, Feby.. 1904. 
 70 N. J. L. 410. 
 
 Precedent Conditions Dissolved by Repudiation. 
 
 When a certificate is repudiated during the life of a member, 
 he need not continue payment of assessments or otherwise preserve 
 his good standing in the organization in order to entitle him to sue 
 for damages. Repudiation absolves the injured juu-ty from further 
 perfornifUice of conditions precedent. 
 
 O'Nfill vs. Supreme Council American Legion of Honor. Feby., 1904, 
 70 N. J. L. 410. 
 
 After-enacted Laws — Must be Reasonable. 
 
 Where a certificate is conditioned upon a compliance of the mem- 
 ber with all laws of the society in force at the date of its issuance, 
 or tluit m;iy be thereafter enacted, such condition must be construed 
 as referring only to reasonable hy-laws and amendments, adopted 
 in furtherance of the contract, and not to sucli as would overthrow 
 it or materiallv alter its terms. 
 
 O'Neill vs. Supreme Council American Legion of Honor, Feby., 1904, 
 70 N. J. L. 410. 
 
 Time Limit to Sue Waived by Repudiation, 
 
 An action brought for damages for the repudiation of a contract 
 is not subject to the time limitation contaiued therein.
 
 694 FRATERNAL SOCIETY LAW 
 
 O'Neill vs. Supreme Council American Legion of Honor, Feby., 1904, 
 70 N. J. L. 410. 
 
 Beneficiary, Heirs of Beneficiary. 
 
 The charter of a society provided that its olijeet was to establish 
 a benefit fund for the families or dependents of members as they 
 might direct, and a by-law of the society declared that on the death 
 of one or more beneficiaries prior to the death of the member, if any 
 change should not have been made, the share or shares to which such 
 beneficiaries would have been entitled, shall be paid to the bene- 
 ficiary's legal representative to be distributed to his or her heirs 
 at law. In passing upon such a contract the court held that where 
 the member died after the death of his wife who was named as his 
 beneficiary without having appointed a new beneficiary, the heirs 
 of the wife at the time of the member's death were entitled to 
 the fund. 
 
 Anderson vs. the Supreme Council Catholic Benevolent Legion, April, 
 1905, 69 N. J. E. 176. 
 
 Ante Nuptial Parol Contract void. 
 
 An ante nuptial parol agreement by a husband to make the wife 
 his beneficiary in his certificate is void under the provisions of the 
 statute of frauds that an agreement made in consideration of mar- 
 riage must be reduced to writing and signed. 
 
 Penn R. R. Co. vs. Warren. .June, 1905. 69 N. J. E. 706. 
 
 Beneficiary, Incompetent not Helped by Society's Interpleader. 
 
 AVhere a member intended and attempted to substitute a bene- 
 ficiary who did not comply with the provisions of the laws, the sub- 
 stituted beneficiary was not entitled to the fund, although the society 
 had paid it into court. 
 
 Penn R. R. Co. vs. Warren, June, 1905, 69 N. J. E. 706.
 
 THE STATE OF NEW JERSEY 695 
 
 Unlawfully Expelled Member Entitled to Mandamus. 
 
 A member of a society who has been expelled from membership 
 by a tribunal not authorized by the constitution and laws of the 
 society and from whose decision no appeal is provided, is entitled to 
 the writ of mandamus to secure a reinstatement in the society. 
 
 Jennings vs. Supreme Lodge Order of Shepherds. November, 1901, 
 67 N. J. L. 126. 
 
 Unlawful Expulsion, Rights of Member. 
 
 The constitution of a society prescribed the penalty of expulsion 
 against members who should impugn the honor or name of the 
 society, either in word or deed, or who should talk against the so- 
 ciety thus staining the good name and honor of the same. Two 
 members were appointed upon a committee to defend certain suits 
 against the society in the civil courts. The suits were lost by the 
 society. A motion was then made to expel the two members on 
 account of the loss of the two suits, and in the case of one of the 
 two, on account of his disorderly manner in pressing a motion for 
 sick benefits for his brother, and his refusal to cease talking when 
 oi'dered to do so, held that the charges gave no jurisdiction for the 
 expulsion, and that the members so expelled should be reinstated. 
 
 Radice vs. Italian American Society. November. 1901. 67 N. J. L. 196. 
 
 Evidence — Proper Way to Prove Laws. 
 
 The laws of a fraternal societj'^ cannot be proven by the testi- 
 mony of a member with a printed book produced by him containing 
 the supposed laws in force at the particular date. The court said 
 "it is too plain for argument, that, in order to vary the existing 
 contract, strict proof of the enactment of the law claimed to have 
 such effect, is requisite. Proof by members of the order that copies 
 of what purported to be the laws e.xtant had been promulgated could 
 not legally stand in lieu of direct proof of such enactment." 
 
 Herman vs. The Supreme Lodge Knights of Pythias, February, 
 1901, 66 N. J. L. 77.
 
 696 FRATERNAL SOCIETY LAW 
 
 Agency — Laws Not to be Waived. 
 
 Where the laws of a society limit the appointment of its officers 
 in the scope of their powers and duties, and forbid the alteration or 
 amendment of such laws, except by the governing body in the mode 
 therein provided, and where the members have agreed as a part of 
 their contract of membership to strictly compl.v with the laws, tlie 
 officers thereof have no power to waive the provisions of such laws 
 as relate to the substance of the contract between the individual 
 members and their associates in their corjiorate capacity. 
 
 Kocher vs. Supreme Council Catholic Benevolent Legion, March, 
 1901, 65 N. J. L. 649. 
 
 Agency — Laws Cannot be Waived Except Upon Express Authority 
 — Member Has Notice of Laws. 
 
 In a suit by the beneficiary of a member to recover the amount 
 of the certificate, proof of parol declarations of the secretary of the 
 society made to the plaintiff that waived the payment of assess- 
 ments for death benefits required by the laws until such time as 
 she could find out whether her husband was dead or alive, was not 
 competent. The court said ''in the present case the plaintiff is not 
 in the attitude of one dealing with a corporation in good faith and 
 without notice, as beneficiary she had no vested interest even in tlie 
 benefit certificate. A by-law authorized the holder of it to change 
 the beneficiary at any time. She was recognized perhaps, as an 
 agent of her husband in paying the assessment and she could 
 occupy a no more favorable position than he in dealing with the 
 corporation ; and he having been a charter member and former 
 president of the subordinate council, must be held to have been aa- 
 quainted with the provision of the constitution .-iiul by-laws of the 
 society. Besides, it is a general principle that jiersons entering 
 mutual companies are presumed to know the terms of the charter 
 and by-laws umlcr which tlicy are organized. Nor can the offices 
 of such associations dispense with the terms and conditions of such 
 charter and by-laws, vinless they are expressly authorized to do so." 
 
 Radice vs. Italian American Society, November, 1901, 67 N. J. L. 196.
 
 THE STATE OF NEW JERSEY 697 
 
 By-laws — What Not Self-operative. 
 
 Foi" the facts in a case where it was held that a by-law providmg 
 for forfeitures in the event of member's failure to make payments, 
 was not self-operative ; see 
 
 American Council vs. National Council, February, 1899, 63 N. J. L. 52. 
 
 Suicide — Insufficient Evidence. 
 
 For the facts in a case where it was alleged that a member 
 suicided, but the court held that the evidence was insufficient to 
 show such fact, there being no evidence except the declaration by 
 a physician contained in an affidavit procured inwn him by the 
 s(K'iet\, th;it the member had suicided; see 
 
 Supreme Lodge Knights of Honor vs. Jaggers. June. 1898, 62 N. 
 J. L. 96. 
 
 Right of Defense Under Laws of Society. 
 
 A by-law which provides for the expulsion of a member without 
 affording au opportunity of defense against the charges upon which 
 the expulsion is based, was held not to be altogether null and void, 
 but only so to the extent that it deprives such member of a hearing 
 from whicli he might possibly derive a benefit, and where it con- 
 clusively appears that no such result has followed its enforcement, 
 the existence of such by-law will not be held to invalidate the pro- 
 ceedings taken. 
 
 Berkhout vs. Supreme Council Roj-al Arcanum. April, 1899, 62 N. 
 J, L. 103. 
 
 Courts Have Right of Review Where Contracts Involved. 
 
 As to the claim of exclusive right of a societ.v under particular 
 laws to determine who is entitled to receive the benefit due upon a 
 member's certificate wnthout any suit ngainst the society, cannot be 
 maintained; see 
 
 Societa Di Mutuo vs. Paulina Cenni, March, 1899, 62 N. J. L. 652.
 
 698 FRATERKAL SOCIETY LAW 
 
 THE 
 
 TERRITORY OF NEW MEXICO. 
 
 CHAPTER 32. 
 
 The following provisions of the New Mexico Code of 1905 so far 
 as applicable concern fraternal societies: 
 
 Section 2114. It shall be the duty of the president and of the 
 vice-president and secretary of each company organized under this 
 act or incorporated under any laws of this territory, or doing busi- 
 ness in this territory, annually, on the first day of January of each 
 year, or within thirty days thereafter, to prepare under oath and 
 deposit in the office of the territorial auditor, a full, true and com- 
 plete statement of the condition of such company on the first day 
 of the month preceding that in which such statement is filed, which 
 last statement shall exhibit the following items and facts in the fol- 
 lowing form, viz. : 
 
 First. The amount of the capital stock of the company. 
 
 Second. The names of the officers. 
 
 Third. The name of the company and where located. 
 
 Fourth. The amount of capital stock paid-up. 
 
 Fifth. The property or assets held by the company, specifying 
 the value, as near as may be, of the real estate owned by such com- 
 pany; the amount of ca.sh on hand and deposited in banks to the 
 credit of the company, and in what bank the same is deposited; 
 the amount of moneys, stocks or bonds deposited in anj' foreign 
 country, State or territory of the United States for the special 
 benefit of the assured therein; the amount of cash in the 
 hands of agents and in eoiu'se of transmission ; the amount of
 
 THE TERRITOHY O/' .V/vlT MEXICO (j99 
 
 lojiiis scciiri'd liy lirsl iiuirtR'age ou i'r;il csliitc. willi llii; ivitc (if iii- 
 tcri'sl 1 lici-cdii, specifying the location of such real estate and its 
 assessed valuation; the amount of all other bonds and loans, and 
 how secured, with the rate of interest thereon ; the amount due 
 the company on which judgment has been ohtaiiu-d; the amount 
 of stock of this territory, of the United States, or of any incorpo- 
 rated city of this territory, and of any othoi" stock owned hy tlie 
 company, specifying the amounts, number of shares and par and 
 market value of each kind of stock; the amount of stock held hy 
 each company as collateral security for loans, with amount loaned 
 on eacli kind of stock, its par and market value; the amount (if 
 assessment on stock and premium notes paid and unpaid; the 
 amount of interest actually due and unpaid ; all other securities and 
 their value; the amount for which premium notes have been given 
 on which policies have been issued. 
 
 Sixth. The liabilities of such com|iaiiy. sjiecifyiug the losses ad- 
 justed and due; losses adjusted and not due; losses unadjusted; 
 losses in suspense and the cause thereof; losses resisted and in litiga- 
 tion; dividends, either in script or cash, specifying the amount of 
 each declared, but not due: dividends declared ami due; the amount 
 required to reinsure all outstanding risks on the basis of fifty per 
 cent, of the premiums on all unexpired risks under one year, and 
 pro rata on all risks having more than one year to run; the amount 
 due banks and other creditors; the amount of money borrowed 
 and the security therefor; all other claims against the company. 
 
 Seventh. The income of the company during the previous year, 
 specifying the amounts received for premiums exclusive of premium 
 notes; the amount of premium notes received; the amount received 
 for interest; the amount received for assessment, calls on stock 
 or notes or premium notes; the amounts received from all other 
 sources. 
 
 Eighth. The expenditures during the preceding year, specifying 
 the amount of losses paid during said term, stating how much of 
 the same accrued prior, and how much subsequent to the date of 
 the preceding statement, and the amount at which losses were esti- 
 mated in such preceding statement; the amount paid for dividends,
 
 700 FRATERNAL SOCIETY LAW 
 
 the amount paid fur cunimissions, salaries, expenses and other 
 charges of agents, clerks and other employes; the amount paid for 
 salaries, fees and other charges of office and directors; the amount 
 paid for local, territorial, national, internal revenue and other taxes 
 and duties; the amount jiaid for all other expenses, expenditures, 
 including printing, stationery, rents, furniture, etc. 
 
 Ninth. The largest amount insured in any one risk. 
 
 Tenth. The amount of risks during the year then ending. 
 
 Eleventh. The amount of risks in force having less than one 
 year to run. 
 
 Twelfth. The amount of risks in force having more than one and 
 not over three years to run. 
 
 Thirteenth. The Mniount of risks having more than three years 
 to run. 
 
 Fourteenth. The following question must be answered, viz.: 
 Are dividends declared on premiums received from risks not ter- 
 minated? 
 
 The territorial auditor shall withhold the certificate of authority 
 from any such company neglecting or failing to comph* with the 
 provisions of this section. (For "Auditor" read "Superintendent." 
 Sees. 28 and 18, Laws 1905.) 
 
 Section 25. The provisions of this act shall not be construed so 
 as to prevent any fraternal, religious or benevolent society from 
 issuing indemnity to an>-one against loss by death or accident of 
 and of its members, and such society shall imt be held amenable 
 under or governed by any of the provisions of any article in this 
 act pertaining to accident or life insurance, except as to rendering 
 an annual statement of the condition of said association or society. 
 The fee for filing the annual statement as herein nrovided shall 
 be five ($5) dollars. But all life and accident associations here- 
 after organized under the laws of this territory to operate on the 
 mutual assessment plan shall comply with all the ])rovisions of 
 this act so far as applicable, and shall be under the full supervision 
 of the .superintendent of insurance. All such companies now exist- 
 ing shall comply with this law, within ninety (00) days after its 
 approval, and thereafter shall be sub.ieet to exaniiii.itioii : shall take
 
 THE TERRITORY OF NEW MEXICO 701 
 
 out certificates of autluirity and in all ways (Mintcniplati'il licrciti 
 aud be under the direction of tlie Insurance De|)artnu'n1. 
 
 The following' next section though somewhat eonllictiui:: with 
 Section 211 -4 is probably cumulative: 
 
 Section 18. Every insurance company doing business in this ter- 
 ritory shall on or before the 1st day of March in each year, render 
 to the superintendent of insurance a report, signed and sworn to 
 by its chief officer, of its condition on the preceding 31st day of 
 Uuceiuber. which shall include a detailed statement of .assets and 
 liabilities, the amount and character of its business transacted and 
 moneys received and expended during the year, and such other 
 information as the superintendent of insurance may deem neces- 
 sary, and shall annually and at such other times as the superin- 
 tendent may require, make such report as may be prescribed by 
 hiui of all re-insurance or cessions of risks or liabilities contracted 
 for or al¥ected by it in any manner whatsoever upon property 
 located in this territoi-y, such return to be verified by the oath of 
 its president and secretary, of a company, society, association or 
 partnership of one of the United, States, and if of a foreign country 
 by the oath of its manager in the United States. The refusal of 
 any such company, society, association or partnership to make such 
 return shall be presumptive evidence that it is guilty of violating the 
 provisions of this act, prohibiting re-insurance of risks of a company 
 not authorized to do business in this territory. 
 
 Section 16. No company shall transact in this territory any insur- 
 ance business unless it shall procure from the superintendent of 
 insurance a certificate stating that the requirements of the laws 
 of this territory have been complied with, and authorizing it to 
 do business. Said certificate shall expire on the last day of Feb- 
 ruary in each year, and must be renewed annually. Every such 
 company shall be required to procure, annually, for the use of its 
 agents and solicitors, copies of such certificate of authority, and 
 any person soliciting business for any company authorized to trans- 
 act business in this territory without first procuring a certificate 
 from the superintendent of insurance, shall be guilty of a misde- 
 meanor, aud, upon conviction thereof, shall be piuiished by a fine of 
 one hundred dollars for each and every offense.
 
 702 FRATER2'fAL SOCIETY LAW 
 
 No insurance company or association organized by any other 
 authority than the Territory of New Mexico shall, directly or in- 
 directly, issue policies, take risks or transact business in the terri- 
 tory until it shall have first ajjpointed, in writing, the superin- 
 tendent of insurance, to be the true and lawful attorney of such 
 company or association in and for this territory, upon whom all 
 lawful processes in any action or proceeding against the comjiany 
 may be served with the same effect as if the company existed in 
 this territorj'. Said power of attorney shall sti|tulat;' ;ind agree, 
 upon the part of the compauj'. that any lawful process against 
 the company wliich served on said altoriu-y shall be of the saiue 
 legal force and validity as if served upon the company, and that 
 the authority shall continue in force so long as any liability re- 
 mains outstanding against the company in this territory. A cer- 
 tificate of such appointment, duly certified and authenticated, shall 
 be filed in the office of the superintendent of insurance, and copies 
 certified b.v him shall be deemed sufficient evidence ; service ujton 
 such attorney shall be deemed sufficient service u]ion the principal. 
 
 "Whenever lawful process against any insurance company shall 
 be served upon the superintendent nf insurance, he shall forth- 
 with forward a copy of the process served on him. b.y mail, post- 
 paid, and directed to the secretarv of the eompan.v. or. in ease 
 of companies of foreign eountrir's. to the i-esident manager in this 
 countrj^; and shall also forward a co]iy thereof to the general agent 
 of the said company in this territory. For each copy of process 
 the superintendent of insurance shall collect the' sum of two ($2) 
 dollars, which shall be paid by the plaintiff at the time of such 
 service, the same to be recovered by hini as ]>art of the taxable 
 cost, if he prevails in the suit. 
 
 Section 17. No insurance company, not incorporated or organized 
 under the law of this territory, shall transact any insurance busi- 
 ness in this territory unless it shall first file in the office of the 
 superintendent of insurance a duly certified copy of its charter, 
 or articles of incorporation, or deed of settlement, together wilh 
 a statement, under oath, of the president and secretary, or other 
 chief officer of said company, showing the condition of affairs of 
 such company on the 31st day of December next preceding the
 
 THE TERRITORY OF XEW MEXICO 703 
 
 date of such oath. The statement shall be in the same form and 
 shall set forth the same i)articulars as the annual statement re- 
 quired by this act, and shall, also, before permission is given to 
 transact business and before the renewal of its certificate of au- 
 thority, file a certificate signed by its prcsi(l<'n( or chief officer to the 
 effect that all the provisions of this act are accepted by it as 
 a part of the conditions of its ris'ht and authority to transact 
 business in this territory: Provided, That insurance companies 
 complying with the provisions of this section shall not be required 
 to comply with Section 1, of Chapter 65 of the Acts of the Thirty- 
 fifth Legislative Assembly of the Territory of New Mexico, en- 
 titled "An Act to regulate the admission of foreign corporations 
 and providing a penalty for corporations I'.iiliiig to eoiiipl\- with 
 the law," ;ii .proved March 14, 1903. 
 
 Assignment Valid — Not Wagering Contract. 
 
 A life insurance contract providing for the payment of a certain 
 sum, which is assigned absolutely by the insured to his creditor for 
 the cancellation of a debt less than one-half the amount of the in- 
 surance contract, was held not a wagering policy or a speculative 
 risk, where at the time of the death of the insured the assignee had 
 paid on the insurance contract to keep it in force, including the 
 amount originally paid to the member and also other payments made, 
 a sum amounting to nearly the face of the contract. 
 
 Givens vs. Veeder, October. 1S97, 9 N. M. 256. 
 
 Who Is Real Party in Interest in Suit on Contract. 
 
 Where a deceased administrator had in his lifetime as such admin- 
 istrator collected a life insurance contract made payable to the ex- 
 ecutor, administrator, or assigns of the deceased member, the bene- 
 ficiary of the contract is the real party in interest and a suit may be 
 brought on the same against the sureties upon the administrator's 
 bond to recover proceeds collected upon the certificate. 
 
 Conway vs. Parker. April, 1902, n N. M. 419.
 
 704 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF NEW YORK. 
 
 CHAPTER 33. 
 
 (The Section numbers employed correspond to those in "The 
 Insurance Laws of New ^'nrk, !!)()(). "') 
 
 Section 230. Incorporation. 
 
 Nine or more persons may become an incorporated fraternal bene- 
 ficiary society, order or association for the relief by insurance, upon 
 the mutual or assessment plan, of members of beneficiaries, in case 
 of sickness, disability or death, by filing in the office of the superin- 
 tendent of insurance a declaration executed and acknowledged liy 
 each of them, stating their intention to form a fraternal beneficiary 
 society, order or association for the purposes above named, the 
 name of the proposed society, order or association, the mode in 
 which its corporate powers are to be executed, the name and official 
 title of the officers, trustees, directors, representative or other per- 
 son, by whatsoever name or title designated, who are to have and 
 exercise the general control and management of its affairs and 
 funds, who shall be elected after the fii'st year by representatives 
 chosen by subordinate lodges, councils or bodies who shall be mem- 
 bers of such society, order or association. There shall be endorsed 
 upon such declaration or annexed thereto, and forming a part 
 thereof, the swoi'u statenu^nt of at least three of the subscribers 
 thereto, that two hundred persons eligible under the proposed laws 
 of such society, order or association to nuunbership therein have in 
 good faith made application in writing for membership.
 
 THE STATE OF NEW YORK 705 
 
 If all the requirements of law have been complied with, the super- 
 intendent shall thereupon file such declaration and cause it to be 
 recorded with the certificate of the attorney-general in a book to 
 be kept for that purpose, and shall deliver to such society, order or 
 association a certified copy of the papers so recorded in his otfice, 
 together with a license or certificate of the superintendent to such 
 society, order or association, as proposed in the declaration. 
 No such society, order or association shall transact the business 
 of insurance in this State until at least two hundred persons have 
 subscribed in writing to be beneficiary members therein in the 
 aggregate amount of at least four hundred thousand dollars, and 
 have each ])aid in one full assessment in cash amounting to at least 
 one per centum thereof, nor until the superintendent of insurance 
 shall have further certified that it has comjilied with the provisions 
 of this chapter and is authorized to transact business in this State. 
 
 Section 231. Reincorporation of Existing Fraternities. 
 
 Any mutual benefit fraternity, as defined by this article, and in- 
 corporated under the laws of this State, may reincorporate under 
 the (irovisions of this chapter by filing with the superintendent a 
 declaration adopted by the governing bod.y of such corporation and 
 executed and duly acknowledged by the president, secretary, treas- 
 urer and trustees, with the seal thereof, which shall contain the 
 name of the corporation, the mode in which the corporate powers 
 granted by this article are to be exercised, the name and official 
 title of the officers, trustees, directors, representatives or other per- 
 sons by whatsoever name or title designated, who are to have and 
 exercise the general control and management of its affairs and of 
 its funds, and the mode of their selection, and the place where its 
 office within the State is located. Such declaration shall have in- 
 dorsed thereon or annexed thereto as a part thereof, the sworn state- 
 ment of three of such officers that at least two hundred persons are 
 bona fide members of such society, order or association, and that the 
 total beneficiary amount is not less than four hundred thousand 
 dollars, and that one full assessment has been paid in. 
 
 The superintendent shall file such declaration and .statement, and 
 |l refer same to the attorney-general for his certificate of conformity 
 4.^
 
 706 FRATERNAL SOCIETY LAW 
 
 and appi'oval, and upon the return thereof the superintendent shall 
 record the same with the cei'tificate of the attorney-general in his 
 office, and deliver to such corporation, association or society a cer- 
 tified copy of the papers so recorded, together with his license to 
 carry on the work of a fraternal beneficiary society, order or asso- 
 ciation as proposed in such declaration. Upon filing the same in 
 the office of the clerk of the county wherein the principal ofSce for 
 the transaction of its bvisiness is located, it shall thereupon be duly 
 incorporated under the provisions of this article. No existing fra- 
 ternal beneficiary society, order or association shall be required to 
 reincorporate under the provisions of this article. 
 
 Section 232. Foreign Societies. 
 
 No fraternal beneficiary societj% order or association organized 
 under the laws of any other State or territory of the United States, 
 or of the District of Columbia or foreign countries, or any volun- 
 tary fraternal beneficiary society, order or association hnving its prin- 
 cipal place of business outside of the State of New York and not now 
 doing business in this State, shall transact business herein until 
 it has filed with the superintendent of insurance a certificate under 
 oath of its principal officers that at least two hundred persons Have 
 subscribed in writing to be beneficiary members therein with a total 
 beneficiary amount not less than four hundred thousand dollars, and 
 that they have paid in one full assessment in cash amounting to at 
 least one per cent thereof, nor until such society, order or associa- 
 tion has received from the superintendent a certificate of aiithority 
 to transact business in this State in duplicate, one of which shall 
 be filed in the office of the superintendent. 
 
 The superintendent shall revoke such certificate at any time that 
 it shall appear from the annual report of such order, society or asso- 
 ciation to the insurance department, or from an.v other satisfactory 
 evidence, that the membership of such society, order or associa- 
 tion has diminished below two hundred, representing an insurance 
 of four hundred thousand dollars, and no such society, order or 
 association shall thereafter continue to do business in this State. 
 
 In addition to the foregoing requirements and provisions, and 
 before the issuance of a certificate of authority, to transact business,
 
 THE STATE OF NEW YORK 707 
 
 as lierein pi'ovi(_loil, Id jiiiy soeioty, order or association, licrein de- 
 scribed, organized undrr I he laws of any foreign country, it shall 
 be the duty of the superintendent of insurance, either personally or 
 by some person or persons appointed by him, to visit and examine 
 tliuroughly and fully as he may deem necessary, and as he may 
 determine, into the condition, business methods, character and in- 
 vestment of funds and the affairs generally of any such society, 
 order or association making application to him for license, and such 
 supcriutendent is authorized to make such examination as often as 
 he maj- deem necessary; and the expense of every such examination 
 shall be paid by the society, order or association examined to such 
 an amount as the superintendent shall determine; but when such 
 examination shall be made by the sujierintentlcnt ])ersonally. or 
 by one or more of the regular clerks in his department, no charge 
 shall be made for such examination, except for the necessary travel- 
 ing and other expenses. And whenever it shall apjiear, to the said 
 superintendent, from an examination made as aforesaid, and from 
 the statement, report or certificate filed or submitted by any such 
 society, order or association as herein provided, that it is coilducting 
 its affairs in a safe and authorized manner and has in all respects 
 complied with the r(>quirements of this section, he shall issue to 
 such society, order ov association, a certificate under his hand and 
 seal, permitting it to transact business in this State for the term of 
 one year from the date thereof. 
 
 But whenever it shall appear to the said superintendent, from any 
 examination made, or from any report submitted or certificate 
 filed, or from any reliable information otherwise obtained, that such 
 licensee, in addition to any other violation in this section provided, 
 is conducting its business in an unsafe and unauthorized manner, 
 he shall, by an order under his hand and seal of office, addressed to 
 such licensee, or its proper officers, direct said licensee to discontinue 
 such unsafe or unlawful i)ractice. and to conform to the require- 
 ments of its charter and of law. and to ])rovide for the safety and 
 si^MU'ity of its transactions, and for the failure to make any report 
 herein required, or to comply with such order, or whenever it shall 
 appear to said superintendent that it is unsafe or inexpedien«t for 
 any such licensee to continue the transaction of business in this
 
 708 FRATERNAL SOCIETY LAW 
 
 ytate, he shall forthwith revoke the liceuse of such licensee ; aud 
 service of any such order of revocation ma.v be made personally 
 upon any of the officers of such licensee within this State, or by 
 mail, addressed to such licensee or its officers, at its principal place 
 of business in the country wherein it is organized, or such service 
 may be made by ])ublieation thereof for six successive days in the 
 State paper, published in the city of Albany, and after the comple- 
 tion of such service, no such licensee shall thereafter continue to do 
 business in this State. 
 
 The examination herein provided for, however, shall not be neces- 
 sary in any case where such society, order or association is under 
 the supervision and examination of the insurance department of the 
 country of its organization or incorporation, and in case the super- 
 intendent of this State shall be satisfied from the report of said 
 home department, that such society, order or association is conduct- 
 ing its business in a safe and lawful manner. 
 
 Section 233. Mutual Benefit Fraternities. 
 
 All beneficiary societies, orders or associations, whether voluntary 
 or incorporated under the laws of this State or any other State or 
 territory of the United States or of the District of Columbia, doing 
 any kind of business in this State authorized by this article, and the 
 members of wliicli are proposed, elected and initiated in subordinate 
 lodges or councils or other bodies, by whatever other name known, 
 aecoi'ding to the constitution, laws, rules, regulations, rites and 
 ceremonies of such societies, orders or associations, respectively, now 
 existing in this State, or which may be hereafter instituted, organ- 
 ized or authorized to do business, in this State, are declared to be 
 mutual benefit fraternities and exempt from the provisions of the 
 other insurance laws of the State, and shall be sub.iect only to the 
 provisions of this article, and such provisions of article one of this 
 chapter as ma.v be specially applicable thereto. 
 
 Section 234. Constitution and By-laws. 
 
 The incorjiorators, trustees, directin's. iiicmln-rs or representa- 
 tives, as the case may be, of iiii>' fi';itiTii:iI bi'neficinry socii>ty. order
 
 THE STATE OF NEW YOllK 709 
 
 or nssociation, organized iimler this nrlirlc di' luulcr any act re, r il 'il 
 l)y this chapter, or under any special act, shall have the power to 
 make such constitution and by-laws, not inconsistent with law. as 
 ni.iy be deemed necessary for the government of its officers and the 
 conduct of its affairs, and to alter and amend the same when ueees- 
 saiy. When so made, altered and amended, they shall be the law 
 governing- such society, order or association, and its officers, sub- 
 ordinate lodges, councils or bodies and the members in their rela- 
 tions to such society, order or association in all their acts; and they 
 and their successors may have a common seal, and may change and 
 alter the same. Every such society, order or ass()ciati(m transact- 
 ing business under this act or within this State, shall file with the 
 superintendent of insurance a duly certified copy of its constitution 
 and laws and of all amendments of or additions thereto, within 
 ninety days after the enactment of the same. Such certified copies 
 or duly certified transcripts therefrom shall be competent evidence 
 in any court of this State. Printed copies of such constitution and 
 laws and all additions or amendments thereto, certified by the secre- 
 tary or similar officer of the association, shall be also prima facie 
 evidence thereof in any court, provided they shall have been first so 
 filed. 
 
 Section 235. Agreements for Benefits. 
 
 Any such fraternal beneficiary society, order or association, may 
 make such promise or agreement with its members for the payment 
 of benefits to a member or others dependent upon him. or a bene- 
 ficiary designated by him in case of sickness, disability or death. It 
 shall not issue any certificate or make any promise or agreement 
 exju-ess or implied, for the payment of any greater sum of money 
 than one assessment npan all its members will realize at the time 
 of issuing such certificate or the making of such promise or agree- 
 ment. No fraternal beneficiary society, order or association shall 
 hereafter make any promise or agreement with its members for the 
 payment of money upon the expiration of a fixed period in ease a 
 death loss has not been incurred before the expiration of such 
 period, except, that any society, order or association, incorporated 
 under the provisions of this article, which, on the first day of
 
 710 FRATERNAL SOCIETY LAW 
 
 March, nineteen hundred and three, had in force agreements with 
 its members for the payment of money upon the expiration of a 
 fixed period not less than five years in case a death loss has not been 
 incurred before the expiration of such period, in accordance with 
 its constitution, laws, rules and regulations, may continue to make 
 such agreements with its members. 
 
 Section 236. Revenues. 
 
 Any such fraternal society, order or association, may derive such 
 money or such benefit, charitj% relief or aid fund from voluntary 
 donations, or from admission fees, dues and assessments, collected 
 or to be collected from members thereof, in manner and form as 
 may be provided by its constitution, laAvs, rules and regulations. It 
 shall not, nor shall any officer thereof, use any money collected or 
 received for the payiiient of beneficiary claims for any other pur- 
 pose. 
 
 Section 237. Annual Report. 
 
 Every such fraternal society, order or association as defined by 
 this article, and doing business within this State, shall, ou or before 
 -the first day of March of each year, make and file with the super- 
 intendent of insurance of this State a report of its affairs and opera- 
 tions during the year ending on the thirty-first day of December 
 immediately preceding, which annual report shall be in lieu of all 
 other i-eports required by any other law. Such report shall be upon 
 blank forms to be provided by the superintendent, and shall be veri- 
 fied under oath by the duly authorized officers of such society, oi'der 
 or association, and shall be published, or the substance thereof, in 
 his annual report by the superintendent, under a separate part en- 
 titled "fraternal beneficiary societies, orders or associations," and 
 shall contain answers to the following questions : 
 
 1. Nvimber of certificates issued during the year, or members 
 admitted. 
 
 2. Amount of indemnity effected thereby. 
 
 3. Number of losses or benefit liabilities incurred.. 
 
 4. Number of losses or benefit liabilities paid.
 
 THE STATE OF NEW YORK 711 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representatives 
 or heirs. 
 
 7. Nmnber and kind nf (claims I'or which assessments have been 
 made. 
 
 8. Number and kinds of claims compromised or resisted, and brief 
 statement of reasons. 
 
 9. Does society chargi> annual or other periodical dues or admis- 
 sion fees? 
 
 10. How much on each one thousand dollars annually or per 
 eajiita, as the case may be ? 
 
 11. Total amount received, from what source, and the disposition 
 thereof. 
 
 12. State total amount of salaries paid to officers. 
 
 13. Does society guarantee, in its certificates, fixed amounts to be 
 paid, regardless of amount realized from assessments, dues and ad- 
 mission fees and donations? 
 
 14. If so, state amount guaranteed, and the security of svich 
 guaranty. 
 
 15. Has the society a reserve fund? 
 
 16. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested ? 
 
 17. Has the society more than one class? 
 
 18. If so, how many, and the amount of indemnity in each? 
 
 19. Number of members in each class. 
 
 20. If voluntary so state, and give date of organization. 
 
 21. If organized under the laws of this State, state under what 
 law and at what time, giving chapter and year and date of passage 
 of the act. 
 
 22. If organized under the laws of any other State, territory 
 or District of Columbia, state such fact and the date or organization, 
 giving chapter and year and date of passage of the act. 
 
 23. Number of certificates of membership lapsed during the year. 
 
 24. Number in force at beginning and end of year; if more than 
 one class, number in each class. 
 
 The superintendent of insurance is authorized and empowered to 
 address any additional inquiries to any of the societies, orders or
 
 712 FRATERNAL SOCIETY LAW 
 
 associations referred to in this article iu relation to its doings or 
 condition or any other matters connected with its transactions rela- 
 tive to the business contemplated by this article, and such ofSeers 
 of the society, order or association as the superintendent may re- 
 quire, shall properly reph' in writing, under oath, to all such in- 
 quiries. 
 
 All such societies, orders or associations, together with their 
 books, papers and vouchers, shall be subject to visitation and in- 
 spection hy the superintendent of insurance, or such person or per- 
 sons as he may at any time designate. Any such society, order or 
 association refusing or neglecting to make such report may, upon 
 the suit of the superintendent, be enjoined by the supreme court 
 from carrying on any business until such report shall be made, and 
 until the costs of such action shall be paid. Such superintendent 
 must within thirty days after failure to make such report, or in 
 case au.y such society, order or association shall exceed its powers 
 or shall conduct its business fraudulently, or fail to comply with any 
 of the provisions of this article, give notice in writing to the at- 
 torney-general who must immediately commence an action against 
 the delinquent society. The annual report of the superinteudent 
 of insurance shall be in lieu of all other reports required by any 
 other law. Any supreme grand or subordinate officer, trustee, or 
 agent of any such mutual fraternal beneticiary society, order or 
 association, subject to any of the provisions of this chapter, who 
 shall neglect or refuse to comply with such provisions or who shall 
 make in any report or statement, any intentionally false or fraudu- 
 lent statement; or shall refuse to permit the superintendent of in- 
 surance or any examiner duly authorized by him for that purpose, 
 to make an examination of its condition and business, books, papers 
 and vouchers, and any person who shall act within this State as 
 supreme grand or subordinate officer, trustee, agent, solicitor or 
 collector for any such fraternal beneficiary society, order or asso- 
 ciation, which shall have failed, neglected or refused to comply with 
 or violate any of the provisions of this chapter, or shall have failed 
 or neglected to procure from the superintendent, the certificate of 
 authority to transact business in this State required by law, shall 
 forfeit to the people of the State the sum of one hundred dollai's for
 
 THE STATE OF NEW YORK 713 
 
 every such offense. If an exaiiiinatiou of the condition and business 
 of any such fraternal beneficiary society, order or association trans- 
 acliiig business in this State shall be prevented by such refusal, the 
 superintendent of insurance shall revoke the certificate of authoi-ity 
 issued to such fraternal beneficiai-y society, order or association; 
 and it shall thereafter be unlawful for it to do business in this State 
 until it shall have issued to it a new certificate of authority author- 
 izing it to continue business in this State. 
 
 Section 238. Rights of Members — Exemptions — Notice of Assess- 
 ment. 
 
 Membership in any such society, order or association shall give to 
 the member the right at any time, upon the consent of such society, 
 order or association, in the manner and form prescribed by its by- 
 hiws, to make a change in its payee or payees, beneficiary or bene- 
 ficiaries, without requiring the consent of such payees or bene- 
 ficiaries. All money or other benefit, charity, relief, or aid. to be 
 paid, provided or rendered, or which has heretofore been paid, or 
 which shall hereafter be paid, provided or rendered, by any such 
 society, order or association, whether voluntary or incorporated 
 under this article or any other law, shall be exempt from execu- 
 tion, and shall not be liable to be seized, taken or appropriated by 
 any legal or equitable process, to pay any debt or liability of a mem- 
 ber, beneficiary, or beneficiaries of a member. All notices of assess- 
 ment made upon its lodges, councils, branches or members, or any 
 of them bj^ any such society, order or association, shall truly state 
 the cause and purpose of the assessment, and what portion or amount 
 thereof, if any, is to be used for the payment of other than bene- 
 ficiary claims. An affidavit made by any officer of such society, 
 order or association that such notice was mailed, stating the date of 
 mailing, shall be presumptive evidence thereof. 
 
 Section 239. Application of Article. 
 
 All fraternal beneficiary societies, orders or associations, as defined 
 by section two hundred and thirty-three of this chapter, shall be 
 subject to all the provisions of this article, except sections two huu- 
 
 I
 
 714 FRATERNAL SOCIETY LAW 
 
 dred and thirty to two hundred and thirty-two, both inclusive, to- 
 gether with their members and beneficiaries, and entitled to all the 
 rights, privileges and benefits of this article. 
 
 This article shall not apply to any corporation, society or asso- 
 ciation carrying on the business of life, health, casualty or accident 
 insurance for profit or gain, but it shall only apply to fraternal 
 beneficiary societies, orders or associations as defined in this article. 
 This article shall not effect any subordinate lodge or branch of any 
 such fraternal beneficiary society, order or association, except as 
 provided in section two hundred and thirty-four, nor apply to the 
 grand or suboi'dinate lodges of the Independent Order of Odd Fel- 
 lows as they now exist, or any grand or subordinate lodge or other 
 body of Free and Accepted Masons, nor to the grand or any sub- 
 ordinate lodge of the Knights of Pythias, exclusive of the Endow- 
 ment Rank. 
 
 Section 240. Reinsurance. 
 
 No domestic association shall reinsure with or transfer its mem- 
 bership or funds to any association not authorized by the superin- 
 tendent of insurance to transact business in this State. Nor shall 
 any svich association reinsure with or transfer its membership or 
 funds to any licensed association, unless the said contract of trans- 
 fer or reinsurance is submitted to and approved by a two-thirds vote 
 of the members of each association present at meetings called to 
 consider the same, of which meetings written or printed notice shall 
 be mailed to each certificate holder at least thirty days before the 
 date fixed for said meeting; nor unless the said contract of transfer 
 or reinsurance is first submitted to and approved by the superin- 
 tendent of insurance. 
 
 Benefits Exempt From Creditors' Claims. 
 
 When a fund due under a certificate has been paid over to the 
 beneficiary, the exemption of the statute in favor of such fund and 
 preventing it from being taken for debt, no longer attaches to the 
 fund, and it may then be seized under lawful process by a creditor 
 of the beneficiary. 
 
 Bull vs. Case, Feb., 1901, 1G5 N. Y. 578.
 
 THE STATE OF NEW YORK 716 
 
 Proofs of Death, Suit to be Brought in Limited Time. 
 
 Where a contract of insurance provides that liability of the so- 
 ciety shall not mature until 90 days from the date of receipt of 
 satisfactory proofs of death, and that an action to enforce pay- 
 ment must be commenced within six mouths from the date of the 
 maturity of the claim, which time does not commence until the re- 
 jection of the claim upon the proofs presented by the beneficiary, 
 it is not a defense to an action commenced within six months after 
 sucli rejection that the claim was rejected before presentation of 
 the proofs, and that the action was commenced within six months 
 thereafter. Affirming 115 Appellate Division 855. 
 
 Munn vs. Masonic Life Association, November, 1907, 1S9 New York 
 486. 
 
 Beneficiary, When Interest Vested and Cannot be Defeated by Desig- 
 nation of New Beneficiary. 
 
 Where a certificate is taken out for the benefit of a person named 
 therein and delivered to her under an agreement made between her 
 and the member, whereby she was to take care of the member dur- 
 ing his lifetime, which agreement has been fully performed, the in- 
 sured cannot destroy the rights of such bciicticiary without her c-on- 
 sent by cancelling her designatimi as benetieiary, and procuring a 
 new certificate to be issued to another beneficiary, notwithstanding 
 tile liy-laws of the society provide that a change of beneficiary may 
 be made at any time and as often as required by the member, with- 
 out the consent of any existing beneficiary, sueh provision relates 
 to a case in which the designation has been made volnut'ririly. but 
 has no application to a case where the beneficiary has acquired 
 rights under the certificate for a valuable consideration. Keverring 
 111 Appellate Division 87. 
 
 Stronge vs. Supreme Lodge Knights of Pytliias, October, 1907, 189 
 New York 346. 
 
 Beneficiary, Sister-in-law May be Named as. 
 
 A contention that a beneficiarv as a sister-in-law of the insured
 
 716 FRATERNAL SOCIETY LAW 
 
 ■vvas not a proper person to be designated as beneficiar3% is unten- 
 able as a defense where the certificate upon its face disclosed her 
 relationship, and the society having issued the certificate to her 
 has received the payments required of the member thereunder. 
 
 Stronge vs. Supreme Lodge Knights of Pythias, October, 1907, 189 
 New York 346. 
 
 Initiation, Injuries During Charged to Society Where Local Body 
 Working Under Ritual Prescribed by Society. 
 
 The Supreme Tent of the Knights of the jMaecabees of the World 
 having superintending control over all subordinate tents, and having 
 enacted by-laws requiring the officers of such tents to carry out the 
 directions of the ritual established for the lodge work by it. is 
 liable for personal in.iuries sustained by a member during his initia- 
 tion into the subordinate tent in consequence of the acts of the 
 officers thereof who were by such ritual required to do the very 
 acts which produced the injury, and under such circumstances the 
 officers and members conducting the initiation ceremonies act as 
 the lawfully constituted agents of the Supreme Tent within the 
 scope of the authorit.v vested in them. Reversing 114 Appellate 
 Division 906. 
 
 Thompson vs. Supreme Tent Knights of Maccabees of the World, 
 October. 1907. 189 New York 294. 
 
 After-enacted Laws, How far Binding on Contracts Outstanding. 
 
 While a society may so amend its by-laws as to make reasonable 
 changes in the mi'tbo Is nf administration, the manner of conduct- 
 ing its business, and the like, no change can be made which will 
 deprive the member of a substantial right either expressly or im- 
 pliedly given him by the contract. It is beyond the power of the 
 legislature, as well as the societv to avoid the obligation of a con- 
 tract. Confirming 109 Appellate Division 919. 
 
 Ayers vs. Grand Lodge A. 0. U. W.. April. 1907. 1S8 New York 280.
 
 THE STATU OF NEW YORK 717 
 
 After-enacted Occupation Laws Not Valid. 
 
 Payment of a cei-tifieate upon which duos had been paid by the 
 member and accepted by the society to the time of his death cannot 
 be avoided upon the ground that the member at tlie time of his 
 death was, and for a few months prior thereto, had been engaged in 
 the hotel business in violation of a by-law adopted by the society, 
 without notice to the member, more than a year after his certificate 
 was issued, prohibiting any certificate holder from selling liquors 
 at retail, and declaring the certificate of anyone engaged in such 
 business void for violation thereof, where in the certificate, in ques- 
 tion, the application therefor, nor the by-laws under which it was 
 issued there was no restriction as to the business in which the mem- 
 ber might engage. Confirming 109 Appellate Division 919. 
 
 Ayers vs. Grand Lodge A. 0. U. W., April, 1907, 188 New York 280. 
 
 Member Has Vested Right to Follow Any Occupation Not Prohibited. 
 
 The fact that in the application upon which the certificate was 
 issued the member agreed to comply with all laws, regulations, and 
 requirements of the society, which were then or which might there- 
 after be enacted, — there being no reservation in the laws of the 
 right to amend them so as to restrict an occupation or business of 
 the member, without the consent of the member,-— and which made 
 it without this consent beyond the power of the society to make 
 amendments so as to avoid contracts upon any ground or to re- 
 duce the amount of the benefits, the fact that the member had the 
 right to engage in any lawful business was a vested right and the 
 member could not be deprived of it without his voluntary consent. 
 Confirming 109 Appellate Division 919. 
 
 Ayers vs. Grand Lodge A. 0. U. W., April, 1907, 188 New York 280;. 
 
 After-enacted Laws — When Not Valid. 
 
 A member in his application agreed "to conform in all respects 
 to the laws, rules, and usages of the order now in force, or which 
 may hereafter be adopted." The certificate issued obligated the
 
 718 FRATERNAL SOCIETY LAW 
 
 society to pay the death benefit, upon satisfactory proof of death 
 "in consideration of the full compliance with all the by-laws now 
 existing or hereafter adopted." At the time the certificate w.as 
 issued, there was no provision in the laws limiting the time in which 
 an action might be maintained against the society upon the cer- 
 tificate; but subsequently, and before the death of the member, 
 the by-laws were amended so as to provide a short statute of limita- 
 tions of one year for such an action. Held, that such amended by- 
 law did not apply to the certificate in question, and judgment against 
 the society was affirmed May, 1905, in Butler vs. Supreme Council 
 American Legion of Honor, 105 N. Y. Appellate Division 164, and 
 on appeal to the Court of Appeals, the judgment of the Appellate 
 Division was affirmed without an opinion being written. 
 
 Butler vs. Supreme Council American Legion of Honor, October, 
 1906. 1S6 N. Y. 514. 
 
 Suicide, After-enacted Laws Not Valid as to. 
 
 At the time when a member was admitted to the society and re- 
 ceived a certificate, the by-laws provided that no benefit should be 
 paid when death was the result of suicide within one year after the 
 admission of the member, whether the suicide was sane or insane. 
 
 Subsequently the by-laws were amended so as to provide that no 
 benefits should be paid when death resulted from suicide within five 
 years after the member's admission, whether the member was sane 
 or insane, and provided further that in case of siteh suicide all as- 
 sessments paid in would be repaid to the beneficiary, which anuniut 
 should be the full amount that could be claimed; and subsequently 
 the by-laws were again amended so as to provide that no benefits 
 should be paid if death was the result of suicide, whether the mem- 
 ber was sane or insane, providing that in case of suicide, twice the 
 amount of all assessments paid should be repaid to the beneficiary, 
 w-hich amount should not exceed the face of the certificate, and 
 should be the full :i.;iiHi;:t tlial (•(iiihl Iw claimed. It was held th;it 
 a beneficiary under the certificate in question was entitled to recover 
 the face thereof, although said certificate was in conflict with the 
 amendments, and that the memlier could not be said to have eon-
 
 THE tSTATE OF NEW YORK 719 
 
 sented to the amendments because the representative of the subordi- 
 nate lodge to which he belonged was in attendance on the Supreme 
 Tent when the amendment was made. Affirming opinion of Appel- 
 late Division, July, 1904, 96 N. Y. App. Div. 491. 
 
 Fargo vs. Supreme Tent Knights of the Maccabees of the World, 
 June, 1906, 185 N. Y. 578. 
 
 Misstatements in Application, Evidence Under. 
 
 In an action upon a certificate the principal issues litigated were 
 (1) as to whether the answers to questions in the application relat- 
 ing to the member's use of intoxicating liquors were made by him, 
 or were written without his knowledge or consent by the medical 
 examiner; (2) if made by the member, whether they were true, there 
 being evidence that he was an habitual user of intoxicating liquors, 
 and had been convicted of public intoxication, and confined in prison 
 therefor. The refusal of the trial court to permit the plaintiff, who 
 had sworn that the answers were made without the knowledge or 
 consent of the member, and that she had never seen him intoxi- 
 cated, to testify on cross-examination, as to whether she had seen 
 him drink, constituted a reversible error. The facts in the case are 
 interesting by reason of the same alone, and not because of any prin- 
 ciple of law discussed. Reversing 98 App. Div. 634. 
 
 Rossenbach vs. Supreme Court Independent Order of Foresters, Feb- 
 ruary, 1906, 184 N. Y. 92. 
 
 Suspension, Mandate Will Not Restore Member Under. 
 
 The Court has no power to issue a mandatory injunction to secure 
 the reinstatement of a suspended member of a voltmtary associa- 
 tion, and in the proceeding to punish as for civil contempt the vio- 
 lation of such injunction, the lack of authority to grant it is a com- 
 plete defense. Reversing 108 App. Div. 357. 
 
 Bachman vs. Harrington, April, 1906, 184 N. Y. 458. 
 
 After-enacted Laws — When Not Valid. 
 
 At the time when a member joined the society there were three
 
 720 FRATERNAL SOCIETY LAW 
 
 classes of membership, and upon the death of a member of the class 
 to which Evans belonged, he became liable for an assessment for $1, 
 and in case of his death, his beneficiary became entitled to have the 
 latter assessment against all the members of Evans' class, and to 
 receive the same to not exceed the amount specified in the certifi- 
 cate. Subsequent to Evans's admission, the by-laws were amended 
 so that all three classes were consolidated into one class, and the 
 assessment thereafter to be paid upon the death of a member was 
 graded according to the age of the member paying the same, and 
 by subsequent payments the rates of the Evans contract were in- 
 creased so that he was required to pay $2.40 per month. The only 
 question in the case was as to whether the amendments of the laws 
 affected Evans's certificate, who had agreed in his application to 
 be bound by all the rules and laws in force at the date of his ad- 
 mission and those subsequently enacted. The Court held that the 
 after-enacted laws did not affect Evans's certificate. Reversing 94 
 App. Div. 541. 
 
 Evans vs. Southern Tier Masonic Relief Ass'n. October, 1905. 182 
 N. Y. 453. 
 
 Beneficiary, Laws Restricting Class Waived. 
 
 A certificate issued by a society, designating as beneficiaiy one 
 who was neither a relative nor a dependent upon the member was 
 held to be due and payable to the beneficiary therein named upon 
 the death of the member, notwithstanding the provisions of the by- 
 laws of the society restricting the designation of beneficiaries to 
 relatives or dependents only, where it appears that an act of the 
 legislature under which the society was incorporated authorized 
 other persons to be named as beneficiaries of the society, and where 
 the society, with the knowledge that the beneficiary was not within 
 the classes embraced in the by-law, accepted the member thereunder 
 and received his dues. Affirming 90 App. Div. 613. 
 
 Coiilson vs. Flynn, February, 1905, 181 N. Y. 62. 
 
 Beneficiary, When Ultra Vires Act in Naming One is Waived. 
 The plea of ultra vires cannot lie r.-iised by a socioty where in an
 
 TUB STATE OF NEW YORK 721 
 
 action brought against it by the brothers and sisters of a member 
 to recover On a certificate issued to him, payable to a beneficiary, 
 not related to nor tlependent upon him, but who had interpleaded 
 in the case, the society having paid the money into court and not 
 defending. Held, that the plaintiffs cannot raise the question of 
 ultra vires, in as much as they had no certificate at all and no con- 
 tract themselves for any claim whatever. Affirming 90 App. Div. 
 613. 
 
 Coulson vs. Flynn. February, 1905, ISl N. Y. 62. 
 
 Contract With Foreign Society May be New York Contract. 
 
 A society organized under the Federal Statutes as a District of 
 Columbia corporation, with its general offices in Chicago, issued to 
 a resident of the city of New York a certificate, upon which was 
 printed "I hereby accept this certificate of membership, subject to 
 all the conditions therein contained," which was signed by the 
 applicant, and dated in New York City, was held to be a New York 
 contract, and to be enforced according to the laws of that state. Af- 
 firming 82 App. Div. 359. 
 
 Meyer vs. Supreme Lodge Knights of Pythias, March, 1904, 178 N. Y. 
 63. 
 
 Physician, Knowledge of Privileged, Waivers of Statutory Privilege 
 Void Unless Made in Court. 
 
 The provisions of Sections 834 and 836 of the Code of Civil Pro- 
 cedure prohibiting the disclosure by a physician of professional in- 
 formation, unless they have been expressly waived upon the trial 
 by the personal representatives of the deceased, apply to a benefit 
 certificate, although it contains a waiver of them made by the appli- 
 cant over his signature. Affirming 82 App. Div. 359. 
 
 Meyer vs. Supreme Lodge Knights of Pythias, March. 1904, ITS N. Y. 
 63. 
 
 Physician and Patient, When Relation Exists. 
 
 When one who is sick unto death is in fact treated by a physician 
 
 46
 
 722 FRATERNAL SOCIETY LAW 
 
 as a patient, even against his will, he becomes the patient of that 
 physician by operation of law; and the same is true of one who is 
 unconscious and unable to speak for himself. Therefore, any in- 
 formation which is necessary to enable such physician to act as 
 such, is acquired "in attending a patient in a professional capacity" 
 within the meaning of Section 83i of the Code of Civil Procedure, 
 and is protected from disclosure, and waivers made by the member 
 in his application cannot be enforced at the trial of a suit brought 
 upon the certificate, over the objection of the plaintiff. Affirming 
 82 App. Div. 359. 
 
 Meyer vs. Supreme Lodge Knights of Pythias. March, 1904. 178 N. Y. 
 63. 
 
 Compromise, Award and Satisfaction. 
 
 Where there was an honest dispute between the beneficiaries 
 named in a certificate and the officers of the society as to the amount 
 due under the certificate, the beneficiaries claiming the amount 
 named in the certificate was due, and the society insisting that this 
 amount was reduced to a certain sum by an amendment to the by- 
 laws of the society adopted subsequent to the issuing of the cer- 
 tificate, and refusing to pay that sum until the beneficiaries should 
 sign a certificate acknowledging the payment of the full amount due 
 thereunder and surrendering it for cancellation, the signing and 
 delivery of such certificate and the acceptance by them of the 
 amount tendered by the society is conclusive and sufficient evi- 
 dence of their intention to discharge and cancel the certificate, and 
 there was a settlement ^vith full knowledge of the situation and 
 constitutes an accord and satisfaction in law. Reversing 82 App. 
 Div. 617. 
 
 Simons vs. Supreme Council American Legion of Honor, April, 1904, 
 178 N. Y. 263. 
 
 Misrepresentation in Application Avoids Contract. 
 
 An applicant was asked in his application the following question: 
 "Have you ever been rejected by any life insurance company or
 
 THE STATE OF NEW YUltlC 72;5 
 
 association?" He answered the question "no," but had been previ- 
 ously rejected by another tent of the same society, to which he was 
 making- aiiplieation, wliich reject idii was known to him. Held that 
 the answer is untrue and fraudulent and avoids the certificate issued 
 to such applicant, where he had stipulated in his application therefor 
 that any untrue or fraudulent answers should vitiate the certificate 
 and forfeit all payments made thereon. Reversing 78 App. Div. 18. 
 
 Alden vs. Supreme Tent Knights of the Maccabees of the World, 
 June, 1904, 178 N. Y. 535. 
 
 After-enacted Laws When Valid. 
 
 A subsequently enacted by-law was held not to affect a certificate 
 in force at the time of its enactment, in as much as it changed ma- 
 terially the contract between the society and the member holding 
 the certificate with respect to the benefits that he would receive by 
 reason of accident, notwithstanding there was an agreement in the 
 application by which the member was to be bound by the laws in 
 force and those subsequently enacted. The Court said: "If the 
 certificate had provided that the payments therein specified should 
 be subject to such modification as to amount, terms, and conditions of 
 payment and contingencies in which the same were payable as the 
 endowment laws of the order from time to time might provide, the 
 amendments would be applicable to exi,sting members. But I think 
 that nothing less explicit than this appearing in the certificate itself 
 should be effectual for such a purpose. Fairness to persons joining 
 the order require such plain dealing." The case reported in 74 
 App. Div. 527 was affirmed. 
 
 Beach vs. Supreme Tent Knights of the Maccabees of the World, 
 January, 1904, 177 N. Y. 100. 
 
 Agency, Provisions Against Power to Bind Society Void. 
 
 The provision of a society's laws charging the members with the 
 defaults of ofSce'rs in failing to pay over moneys received from 
 members is held to be unreasonable and void, and to have no effect 
 upon the status of members otherwise in good standing. Affirming 
 66 App. Div. 259.
 
 724 FRATERNAL SOCIETY LAW 
 
 Brown vs. Supreme Court Ind. 0. of Foresters, October, 1903, 176 
 N. Y. 132. 
 
 Beneficiary^ — Change When Effective. 
 
 A member who has received a certificate entitling him to par- 
 ticipate in its beneficiary fund, in which certificate his wife is desig- 
 nated as beneficiary, is not deprived of his right subsequently to 
 procure a certificate to be issued to another beneficiary by the fact 
 that his wife who had obtained possession of the certificate, wrong- 
 fully withholds it, when he complies with the laws for making a 
 change of beneficiary, except that of surrendering the original cer- 
 tificate. Equity will aid the subsequent beneficiary and regard that 
 as done which ought to have been done. Affirming 66 App. Div. 623. 
 
 Lahey vs. Lahey, March, 1903, 174 N. Y. 146. 
 
 After-enacted Law Cutting Down Benefit Void. 
 
 A by-law passed subsequent to the issuance of a certificate wherein 
 it was agreed to pay to the member's beneficiary a sum not exceed- 
 ing $5,000, reducing the amount of said benefit to be paid to $2,000, 
 was held to be unreasonable and void so far as said certificate was 
 concerned, and that the subsequent refusal of the society to receive 
 dues and assessments upon the certificate upon the basis of $5,000 
 and to recognize such contract as binding upon it, did not constitute 
 such breach of contract as to entitle the member to maintain an 
 action for the recovery of damages therefor, by reason of the fact 
 that the amended by-law was wholly ineffectual to deprive the mem- 
 ber of any rights. Reversing 69 App, Div. 616. 
 
 Langan vs. Supreme Council Am. Legion of Honor, April. 1903, 
 174 N. Y. 266, 
 
 After-enacted Laws When Valid, Effect of Same, 
 
 Under an express agreement by a member to comply with "All 
 the laws, rules, regulations and requirements now in force or that 
 may be hereafter enacted," by-laws thereafter regularly adopted 
 become retrospective as well as prospective in their operation, ex-
 
 I 
 
 THE STATE OF Af/i'M' YORK 725 
 
 ci'j)t as to rights wliicli liiive become fixed or vested hy the terms 
 of the original contract. Opinion fin Apii. Div. 448 modified. 
 
 Shlpman vs. Protected Home Circle, April, 1903, 174 N. Y. 398. 
 
 After-enacted Suicide Law Invalid. 
 
 Where the contract is silent upon the subject of scif-dcst ruction by 
 a member while insane, death from that cause is clearly within its 
 terms, and having acquired a fixed and vested right to insurance 
 covering that risk, no subsequent amendment of the b.y-laws can 
 aft'ect that right without the express consent of the insured. Opinion 
 66 App. Div. 448 modified. 
 
 Shipman vs. Protected Home Circle, April, 1903, 174 N. Y. 398. 
 
 Payment to Trustee No Release Against Real Claimant. 
 
 The pa.vment by a supreme lodge of the amount of a benefit due 
 under a certificate, which payment is made to a trustee, does not 
 release the society from liability to pay the fund to the proper 
 beneficiaries in an action against it brought by the member's ad- 
 ministratrix for the real beneficiaries' benefit. 
 
 Pteifer vs. Supreme Lodge Bohemian Society, February, 1903, 173 
 N. Y. 418. 
 
 Heirs — What is Meant by Use of Term. 
 
 The word "heirs" as used in the b.v-laws of a society in descri- 
 bing beneficiaries is not to be regarded as used in a strictl.v technical 
 sense as representing persons entitled to inherit real estate, but 
 rather as indicating the next of kin of the deceased member. 
 
 Pfeifer vs. Supreme Lodge Bohemian Society, February, 1903, 173 
 N. Y. 418. 
 
 After-enacted Suicide Law Invalid, 
 
 A society which has issued a certificate under which it promises
 
 726 FRATERNAL SOCIETY LAW 
 
 indemnity against unintentional self-destruction after one year of 
 membership, cannot, by subsequent amendment of its by-laws pro- 
 viding in effect that self-destruction while insane within 5 years 
 from the date of the contract should render it void, deprive the 
 beneficiary of his rights under the contract as originally made, since 
 such amendment is held to be vmreasonable. The Court said : "The 
 division line between proper and improper amendments and the au- 
 thorities bearing thereon were sufficiently considered in this case 
 (Parish vs. N. Y. Produce Exchange, 169 N. Y. 34). In this one 
 it suffices in conclusion to say that this defendant cannot, by amend- 
 ment to its rules, deprive persons already insured or their bene- 
 ficiaries of their rights under contracts of insurance in the event 
 that death shall ensue from specified causes necessarily insured 
 against by the original contract. This contract insured "Weber 
 against unintentional self-destruction after one year and defendant 
 had not the power to take away the right thus secured without 
 his consent." Affirming 61 App. Div. 613. 
 
 Weber vs. Supreme Tent Knights of the Maccabees of the World, 
 November, 1902, 172 N. Y. 490. 
 
 Beneficiary — Change of When Valid. 
 
 A member has the absolute power to change the beneficiary desig- 
 nated in his certificate by complying with the by-law which is con- 
 elusive on the sulijeet, and which provides that a new certificate 
 shall be issued upon the condition that the member asking for it 
 shall pay the sum of 25 cents, held, that another beneficiary can bo 
 named only by strict compliance with the law. 
 
 Fink vs. Fink, June, 1902. 171 N. Y. 616. 
 
 Beneficiary — Changes of Provisions for in Law Exclusive. 
 
 A specific bequest of a death benefit due under a certificate by 
 the member in his will does not effect a change of beneficiary named 
 in the certificate where the l;iws do not so provide, and the method 
 prescribed by tlirm for iiinkiiig changes is hold to be exclusive. 
 
 Fink vs. Fink, June, 1902. 171 N, Y. 61 r,.
 
 THE STATE OF NEW YORK 727 
 
 Agency of Medical Examiner Exclusively of Society Regardless of 
 Contract Provisions. 
 
 While, as a general rule, parties have the right to make such con- 
 tracts as they see fit, this right is restricted by legislation, public 
 policy, and the nature of things. Thej' cannot stipulate that facts 
 which the law declares establish a certain relation not only do not 
 establish that relation but establish directlj' the opposite ; and the 
 medical examiner of a company is agent of a company in making the 
 examination, taking down the answers, and reporting them to the 
 company, and is not the agent of the applicant, although the latter 
 agrees with the company that for that purpose he shall be deemed 
 to be his agent. The knowledge of the examiner thus acquired, his 
 interpretation of the answers given, and his errors in recording 
 them are the knowledge, interpretation and errors of the company 
 itself, which is estopped from taking advantage of what it thus 
 knows and what it thus does when it issues a contract and accepts 
 the payments of premiums thereunder. 
 
 Sternaman vs. Metropolitan Life Ins. Co., Feb., 1902, 170 N. Y. 13, 
 reversing 49 App. Div. 473. 
 
 Interpleader, Settled What Questions. 
 
 One who assists in procuring an order of interpleader and consents 
 that upon payment into court of the fund in controversy he is to be 
 substituted as defendant, cannot raise the question whether the 
 original defendant could have maintained an action of strict inter- 
 pleader. 
 
 Hirsch vs. Mayer. Jan., 1901, 165 N. Y. 236., affirming 31 App. Div. 
 627. 
 
 Funds, When Not Exempt Prom Seizure for Debt. 
 
 The provision of the insurance statutes relating to fraternal so- 
 cieties providing that "all money, or other benefit, charity, relief, 
 or aid to be paid, provided or rendered by any such society, order 
 or association, whether voluntary or incorporated, under this article 
 or any other law, shall not be liable to be seized, taken or appro-
 
 728 FRATERNAL SOCIETY LAM' 
 
 priated by any legal or equitable process to pay any debt or lia- 
 bility of a member, beneficiary or beneficiaries of a member," does 
 not apply in the case of money which has been actually paid over and 
 received by the beneticiarj*. and therefore a security representing 
 a part of such money is liable to an attachment for a debt of the 
 beneficiary. 
 
 Bull vs. Case. Feb.. 1901. 165 N. Y. 578. affirming 41 App. Div. 391. 
 
 Death Presumed by Absence, Compromise of Claim Valid Though 
 Member be Living. 
 
 A contract by which the beneficiary under a certificate upon the 
 life of a member who has not been heard from in nine years and is 
 supposed by both parties to be dead, agrees with the society to settle 
 and discontinue an action on the certificate and accept an absolute 
 payment of a portion of the certificate, which is to be paid promptly 
 and not returned in any event, and that the balance shall be placed 
 in the hands of a trustee to be held for a certain period and re- 
 turned to the society if it produces reasonable proof within that 
 time that the member is living, but otherwise to be paid to the bene- 
 ficiaries, entitles the latter to recover the amount of the agreed 
 cash payment, although before it is paid over the member is proved 
 to be living, the contract being not enforcible as to such payment on 
 the ground that there was a mutual mistake as to the material fact 
 of the supposed death of the member, since the only thing which 
 the settlement dealt with was the possibility that he should prove 
 to be living, and the discontinuance of the certificate, the extension 
 of the time of payment of a part of the claim, and the compromise 
 of a doubtful claim constitute a sufficient consideration for the 
 contract. 
 
 Sears vs. Grand Lodge A. 0. U. W.. .Tune. 1900. 163 N. Y. 374. re- 
 versing 24 App. Div. 410. 
 
 Ambiguous Contracts How to be Construed. 
 
 "Where the language of a contract is so ambiguous as to render it 
 susceptible of two interpretations, it should be construed most
 
 THE STATE Oh' NEW YORK 729 
 
 strongly agaiust the soeiety, since the latter has prepared the con- 
 tract and is responsible for the language employed. 
 
 Janneck vs. Metropolitan Life Ins. Co., May, 1900. 162 N. Y. 574. 
 affirming 13 App. Div. 514. 
 
 Superintendent of Insurance, Duties of Ministerial Respecting Issu- 
 ance of License. 
 
 The duties of the Superintendent of Insurance in the matter of 
 filing articles of reincoi'poration of a fraternal society, referring them 
 to the Attorne.y General, recordiiii;' his certificate of conformity and 
 approval, and delivering same to the corporation together with the 
 license to do business as provided for by the insurance statutes of the 
 State, are purely ministerial, which he may be compelled to per- 
 form b}^ mandamus. 
 
 The People vs. Payn, Supt. of Insurance. .Ian., 1900, 161 N. Y. 229, 
 affirming 43 App. Div. 621. 
 
 Reincorporation, Right of. 
 
 A fraternal society duly incorporated under the laws of this State 
 has an absolute legal right to reincorporate under its present name, 
 by virtue of certain sections of the General Corporation Law, which 
 expressly gives this privilege to corporations formed by reincorpora- 
 tion, reorganization, or consolidation, or upon the sale of the prop- 
 erty or franchise of the corporation. 
 
 The People vs. Payn. S\uit. ct Insurance, Jan., 1900, 161 N. Y. 229, 
 affirming 43 App. Div. 621. 
 
 Officers, Removal of at Will. 
 
 A voluntary unincorporated society without articles, constitution 
 or rules, may make changes, including removal without notice of its 
 president or other officers at will at any meeting duly held, but it 
 cannot expel a member without notice. 
 
 Ostrom vs. Greene, Jan., 1900, 161 N. Y. 353, affirming 30 App. Div. 
 621.
 
 730 FRATERNAL SOCIETY LAW 
 
 OflBcers, Official Actions Presumed to be Correct and Lawful. 
 
 Where the charter of a mutual society provides that, when ascer- 
 tained, each polic.v holder shall be credited with an equitable share 
 of the surplus, and that the earnings and receipts over and above 
 the dividends, losses and expenses shall be accumulated, the question 
 of how much of the surplus is to be distributed and how much shall 
 be accumulated for the securitj' of the company and its members, 
 is to be decided by the officers and managers in the exercise of 
 their discretion, having in view the present and future contingencies 
 of the business ; and in the absence of any allegation of wrongdoing 
 or mistake by them, their determination must be treated as proper, 
 and their apportionment of the surplus is prima facie to be regarded 
 as equitable. 
 
 Greeff vs. Equitable Life Assurance Society, Oct., 1S99, 160 N. Y. 19. 
 reversing 40 App. Div. ISO. 
 
 Estoppel and Waiver, Definition of. 
 
 In the absence of an express Avaiver, at least some of the ele- 
 ments of an estoppel must exist, the insured must have been mislead 
 by some act of the insurer, or it must, after a knowledge of the 
 breach, have done something which could only be done by virtue of 
 the contract, or have required something of the insured which be 
 was boimd to do only by virtue of such contract; and an estoppel or 
 waiver claimed must be established by a preponderance of the evi- 
 dence by the person claiming 'same, and neither an estoppel nor a 
 waiver of a breach of the condition after forfeiture by reason there- 
 of can be inferred from mere silence or inaction. 
 
 Gibson vs. The Liverpool & London & Globe Ins. Co., June. 1899, 
 159 N. Y. 418, affirming 10 App. Div. 225. 
 
 Assignment of Contract Valid When. 
 
 It is the doctrine of this State that a contract of insurance taken 
 out by the insured himself, or by another having an insurable in- 
 terest on his life, in good faith and not for the mere purpose of as-
 
 THE STATE OF NEW YORK 731 
 
 signment, iiuiy he lawfully assigned to one having no insurable iti- 
 toi'pst ill the life of the insiTred, and that when the assignment is 
 absolute and general the assignee will be entitled to the entire pro- 
 ceeds of the contract. 
 
 Steinbach vs. Diepenbrock, Jan., 1899, 158 N. Y. 24, affirming 1 App. 
 Div. 417. 
 
 Contract, Rights Under — Measured by What. 
 
 The riyht.s of the parties to a death claim upon tlie funds of an in- 
 solvent fraternal society in the hands of a receiver api^ointed in an 
 action brought by the Attorney General for the dissolution of the 
 society are to be regarded as fixed as of the date of the commence- 
 ment of the Attorney General's action, and these rights are measured 
 by the contract created by the constitution, by-laws, and certificate 
 of membership, provided the same were authorized by law. 
 
 The People vs. Grand Lodge Empire Order of Mutual Aid. Oct., 
 1898, 156 N. Y. 533, affirming S8 Hun. 621. 
 
 Assessments Being Common Burdens of All, Preferences in Funds 
 Not Favored. 
 
 When the whole scheme provided by the laws of a society is that 
 a fund should be created by assessments, which after it came into 
 the possession of the society was to be appropriated generally to the 
 payment of death losses, and not that any particular loss should be 
 entitled to payment from the money which arose from any par- 
 ticular assessment, no death claim is entitled to a preference or lien 
 upon funds in the hands of the receiver of the society hy reason of 
 any particular assessment, even though the notice for which the 
 assessment was made contained information of the death of the 
 claimant's member. 
 
 The People vs. Grand Lodge, Empire Order of Mutual Aid, Oct., 1898, 
 156 N. Y. 533, affirming 88 Hun. 621. 
 
 Suit for Accounting by Member Will Not Lie. 
 
 A member or certificate holder of an insurance corporation has
 
 732 FRATERNAL SOCIETY LAW 
 
 not as such the legal capacity under the laws of the State of New 
 York to bring action for an accounting and for an interference with 
 the prosecution of the business of the corporation, and the action 
 must be brought, if at all. by the Attorney General. 
 
 Swan vs. Mutual Reserve Fund Life Assn., Jan., 1898, 155 N. Y. 9, 
 affirming 20 App. Div. 255. 
 
 Laws of Other States Presumed to be Same as Those of New York. 
 
 Where in action upon a contract of life insurance made by a cor- 
 poration of another State, the contract is to be construed under the 
 laws of that State, it may properly be assumed that those laws were 
 or are the same as our own, in the absence of evidence tending to 
 show a difference. 
 
 Stewart vs. Union Mutual Life Ins. Co., March, 1898, 155 N. Y. 257, 
 reversing 76 Hun. 267.
 
 THE STATE OF NORTH CAROLINA 733 
 
 THE 
 
 STATE OF NORTH CAROIJNA. 
 
 CHAPTER 34. 
 
 (The Section numbers employed correspond to those in "The Re- 
 visal of 1905 of North Carolina" and of amendments thereto." 
 
 What Laws Applicable to. 
 
 Section 4794. Nothing in the general insurance laws, except 
 such laws as apply to fraternal orders, shall be construed to extend 
 to benevolent associations, incorporated under the laws of this State 
 that only levy an assessment on the members to create a fund to 
 pay the family of a deceased member and make no profit therefrom, 
 and do not solicit business through agents. 
 
 1899, c. 54, s. 87 ; 1901, c. 706, s. 2. 
 
 Fraternal Orders Defined. 
 
 Section 4795. Every incorporated association, order or society 
 doing business in this State on the lodge system, with ritualistic form- 
 of work and representative form of government, for the purpose 
 of making provision for tlie payment of benefits in case of death, 
 sickness, temporary or permanent physical disability, either as the 
 result of disease, accident or old age, formed and organized for 
 the sole benefit of its members and their beneficiaries, and not 
 for profit, is hereby declared to be a "fraternal beneficiary order, 
 society or association ;" "Provided, that societies and orders which 
 do not make insurance contracts or collect dues or assessments
 
 734 FRATERNAL SOCIETY LAW 
 
 therefor, but simply p;iy Ijiirial or other benefits out of the treasury 
 of their orders, and use their funds for the purpose of building 
 homes or asylums for the purpose of earing for and educating 
 orphan children and aged and infirm people in this State, shall 
 not be considered as 'fraternal orders' under this act;" and such 
 order, society or association paying death benefits may also create, 
 maintain, appty or disburse among its membership a reserve or 
 emergency fund as may lie provided in its constitution or by-laws; 
 but no profit or gain shall be added to the payments made by a 
 member. Any incorporated order, association or society not doing 
 business on the lodge system, with ritualistic form of work, which 
 is so conducted as to make it a fraternal beneficiary order, society 
 or association within the true meaning of this chapter, and shall 
 show such facts to the satisfaction of the commissioner, shall be 
 permitted to do business in this State upon compliance with the 
 laws applicable to "fraternal orders." 
 
 1899, c. 54, s. 88; 1901, c. 706, s. 3. and amended Mch. 11, 1907. 
 
 Funds Must be Derived From Assessments and Dues. 
 
 Section 4796. The fund from which the payment of benefits, 
 as provided for in the next preceding section shall be made and 
 the fund from which the expenses of such association, order or 
 society shall be defrayed shall be derived from assessments or dues 
 collected from its members. Such societies or associations shall be 
 governed by the laws of the State governing fraternal orders, and 
 shall be exempt from the provisions of all general insurance laws of 
 this State, and no law hereafter passed shall apply to such societies 
 unless fraternal orders be designated therein. 
 
 1899, e. 54, s. 89 ; 1901. c. 706, s. 2. 
 
 Supreme Governing Body May Meet Out of the State; Principal 
 Business Office Must be Here. 
 
 Section 4797. Any such society incorporated and organized under 
 the laws of this State may pi-ovide for the meeting of its supreme 
 legislative or governing body in any other State, province or terri- 
 torv wherein such societv shall have subordinate lodges, and all
 
 THE STATE OF ^'ORTIl CAROLINA 735 
 
 business that has been lierctofore or may hereafter be transacted 
 at such nuM'tiiigs shall be as valid in all respects as if such meetings 
 were held within this State ; but the principal business office of 
 such society shall always be kept within this State and never re- 
 moved therefrom. 
 1899, c. 54, s. 91. 
 
 Conditions Precedent to Doing Business Here. 
 
 Section 4798. Any such fraternal beneficiary order, society or 
 association as is detioed by this chapter chartered and organized 
 in this State, or orgnnized and doing business under the laws of 
 another State, district, province or territory, upon satisfying the 
 insurance commissioner that its business is jjroper and legitimate 
 and so conducted, may be admitted to transact business in this 
 State upon the same conditions as are prescribed by this chapter 
 for admitting and authorizing foreign insurance companies to do 
 business in this State, except that such fraternal orders shall not be 
 required to have the capital required of such insurance companies. 
 
 1899, c. 54, s. 92 ; 1901, c. 706, s. 2 ; 1903, c. 438, s. 9. 
 
 The next four Sections (4790 to 4793 inc.) are here incorporated 
 because of the possibility of their application to Fraternal Societies, 
 though it has been generally supposed that they do not apply. 
 
 Copies of Charter and By-laws Must be Filed. 
 
 Section 4790. Every corporation, company, society, organization 
 or association of this or any other State or country, transacting 
 business under this department upon the co-operative or assessment 
 plan, shall file with the insurance commissioner, before commencing 
 or continuing to do business in this State, a copy of its charter 
 or articles of association, as well as the by-laws, rules or regulations 
 referred to in its policies or certificates and made a part of such 
 contract. No by-laws or regulations, unless so filed with the in- 
 surance commissioner, shall operate to avoid or affect any policy 
 or certificate issued by such company or association. 
 
 1899, c. 54, s. 86.
 
 736 FRATERNAL SOCIETY LAW 
 
 All Contracts Must be in Accord With Charter and By-laws. 
 
 Section 4791. Every policy or certificate or renewal receipt issued 
 to a resident of this .State by any corporation, association or order 
 transacting therein the business of insurance upon the assessment 
 plan, shall be in accord with the provisions of the charter and by- 
 laws of such corporation, association or order, as filed with the in- 
 surance commissioner. And it shall be unlawful for any such do- 
 mestic or foreign insurance company or fraternal order to transact 
 or ofl'er to transact any business not authorized by the provisions 
 of its charter and the terms of its by-laws, or, through an agent 
 or otherwise, to ofi'er or issue any policy, renewal, certificate or 
 other contract whose terms are not in clear accord with the powers, 
 terms and stipulations of its charter and by-laws. 
 
 1899, c. 54, s. 84; 1903, c. 438, s. 9. 
 
 Advance Assessments — When Required. 
 
 Section 4792. Every domestic insurance company, association or 
 order, doing business on the assessment plan shall collect and keep 
 at all times in its treasury one regular loss assessment, sufficient 
 to pay one regular average loss. 
 
 1899 c. 54, s. 84; 1903, c. 438, s. 9. 
 
 Revocation of Licenses. 
 
 Section 4793. If any such corporation or association or order 
 shall at any time fail or refuse to comply with the provisions of 
 the two next preceding sections, or section four thousand seven 
 hundred and thirteen, the insurance commissioner shall forthwith 
 suspend or revoke all authority to siich corporation, association or 
 order, and of all its agents or officers to do business in this State, 
 and shall publish such revocation in some newspaper published in 
 this State. 
 
 1899, c. 54, s. 85. 
 
 An Act Regulating Insurance Companies and prohibiting the diver- 
 sion of funds for political purposes. 
 
 The General Assemblv of North Carolina do enact:
 
 THE STATE UE NORTH CAKOLINA 737 
 
 Section 1. That no iusurauce company or association, including 
 fraternal beneficiary associations, doing business in this State, shall, 
 directly or indirectly, pay or use, or offer, consent or agree to pay 
 or use any money or property for or in aid of any political party, 
 committee or organization, or for or in aid of any corporation, 
 joint-stock or other association organized or maintained for political 
 purposes, or for or in aid of any candidate for political ofSce, 
 or for nomination for such office, or for any political purpose what- 
 soever, or for the reimbursement or indemnification of any person 
 for money or property so used. Any officer, director, stockholder, 
 attorney or agent of any corporation or association which violates 
 any of the provisions of this act, who participates in, aids, abets 
 or advises, or consents to any such violation, and any person who 
 solicits or knowingly receives any money or property in violation 
 of this act, shall be guilty of a misdemeanor, and be punished by 
 imprisonment for not more than one j^ear and a fine of not more than 
 one thousand dollars; and any officer aiding or abetting in any 
 contribiTtion made in violation of this act shall be liable to the com- 
 pany or association for the amount so contributed. And the Insur- 
 ance Commissioner may revoke the license of any company violating 
 this act. No person shall be excused from attending and testifying, 
 or producing any books, papers or other documents before any 
 court or magistrate, upon any investigation, proceeding or trial 
 for a violation of any of the provisions of this act, upon the ground 
 or for the reason that the testimony or evidence, documentary or 
 otherwise, required of him may tend to incriminate or degrade him ; 
 but no person shall be prosecuted or subjected to any penalty or for- 
 feiture for or on account of any transaction, matter or thing concern- 
 ing which he may so testify or produce evidence, documentary or 
 otherwise, and no testimony so given or produced shall be used 
 against him upon any criminal investigation or proceedin?. 
 
 Section 2. Any person violating the provisions of this act shall 
 be guilty of a misdemeanor, and upon conviction shall be fined not 
 more than one hundred dollars or imprisoned not more than thirty 
 days, or both, at the discretion of the Court. 
 
 Section 3. That this act shall be in force from and after its 
 ratification. 
 47
 
 738 FRATERNAL SOCIETY LAW 
 
 In the General Assembly read three times, and ratified this the 
 5th day of February, A. D. 1907. 
 
 The following provisions are also deemed proper to be incorpo- 
 rated here : 
 
 State Law Governs Insurance Contracts — When. 
 
 Section 4806. All contracts of insurance on property, lives or 
 interests in this State shall be deemed to be made therein; and 
 all contracts of insurance, the application for which is taken within 
 this State, shall be deemed to have been made within this State 
 and shall be subject to the laws thereof. 
 
 1899, c. 54, s. 2 ; 1901, c. 705, s. 1. 
 
 Statements and Descriptions in Application. 
 
 Section 4808. AU statements or descriptions in any application 
 for a policy of insurance, or in the policy itself, shall be deemed 
 and held representations and not warranties; nor shall any repre- 
 sentation, unless material or fraudulent, prevent a recovery on the 
 policy. 
 
 1901, c. 705, s. 2. 
 
 Stipulations as to Jurisdiction and Limitation of Actions. 
 
 Section 4809. No company or order, domestic or foreign, au- 
 thorized to do business in this State, under this chapter, shall make 
 any condition or stipulation in its insurance contracts concerning 
 the court or jurisdiction wherein any suit or action thereon may 
 be brought, nor shall it limit tlie time within which such suit 
 or action may be commenced to less than one year after the cause 
 of action accrues or to less than six months from any time at which 
 a plaintiff shall take a nonsuit to an action begun within the legal 
 time. All conditions and stipulations forbidden by this section shall 
 be void. 
 
 1899, c. 54, .ss. 23, 106; 1901, c. 391, s. 8. 
 
 Mortuary Tables Evidence. 
 
 Section 1626. Whenever it shall be neeessarv to establish tlie
 
 THE STATE OF NORTH CAROLINA 
 
 739 
 
 expectancy of continued life of any person from any period of 
 such person's life, whether lie he living- ;it the time or not, the 
 t;ible here to appended slnill hi; received in all courts and by all 
 persons having power to determine litigation as evidence, with 
 other evidence as to the health, constitution and habits of such 
 l)erson, of such expectancy represented by the figures in the columns 
 headed by the words "completed age" and "expectation" respec- 
 tively : 
 
 Completed Age. 
 
 10 
 
 11 
 
 12 
 
 l:i 
 
 U 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 22 
 
 23 ........ 
 
 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 :]0 
 
 31 
 
 32 
 
 33 
 
 34 
 
 35 
 
 36 
 
 37 
 
 38 
 
 39 
 
 40 
 
 41 
 
 42 
 
 43 
 
 44 
 
 Expect; 
 
 ition. 
 
 43.7 
 48.3 
 47.4 
 46.« 
 4r).2 
 45.5 
 44.9 
 44.2 
 43.5 
 42.9 
 42.2 
 41.5 
 40.9 
 40.2 
 39.5 
 38.8 
 38.1 
 37.4 
 36.7 
 36.0 
 35.3 
 34.6 
 33.!) 
 33.2 
 32.5 
 31. S 
 31.1 
 30.4 
 29.6 
 28.9 
 28.2 
 27.5 
 26.7 
 26.0 
 25.3 
 
 Completed A;i 
 
 45 
 
 46 
 
 47 
 
 48 
 
 49 
 
 50 
 
 51 
 
 52 
 
 53 
 
 54 
 
 55 
 
 56 
 
 57 
 
 58 
 
 59 
 
 60 
 
 61 
 
 62 
 
 63 
 
 64 
 
 65 
 
 66 
 
 67 
 
 68 
 
 69 
 
 70 
 
 71 
 
 72 
 
 73 
 
 74 
 
 75 
 
 76 
 
 77 
 
 78 
 
 79 
 
 Expectation. 
 
 24.5 
 
 23.8 
 
 23.1 
 
 22.4 
 
 21.6 
 
 20.9 
 
 20.2 
 
 19.5 
 
 18.8 
 
 18.1 
 
 17.4 
 
 16.7 
 
 16.1 
 
 15.4 
 
 14.7 
 
 14.1 
 
 13.5 
 
 12.9 
 
 12.3 
 
 11.7 
 
 11.1 
 
 10.5 
 
 10.0 
 
 9.5 
 
 9.0 
 
 8.5 
 
 8.0 
 
 .... 7.6 
 
 .... 7.1 
 
 .... 6.7 
 
 .... 6.3 
 
 .... 5.9 
 
 .... 5.5 
 
 .... 5.1 
 
 .... 4.8
 
 740 
 
 FRATERNAL SOCIETY LAW 
 
 Completed Age. Expectation. 
 
 80 4.4 
 
 81 4.1 
 
 82 3.7 
 
 83 3.4 
 
 84 3.1 
 
 85 2.8 
 
 86 2.5 
 
 87 2.2 
 
 Code, s. 1352; 1883, e. 225. 
 
 Completed Age. Expectation. 
 
 88 l.>) 
 
 89 1.7 
 
 90 1.4 
 
 91 1.2 
 
 92 1.0 
 
 93 8 
 
 94 6 
 
 95 5 
 
 Present Worth of Annuities. 
 
 Section 1627. Whenever it shall be necessary to establish the 
 present worth or cash value of an annuity to a person, payable 
 annually during life, such present worth or cash value may be 
 ascertained by the use of the following table in connection with 
 the mortuary tables established by law, the first column represent- 
 ing the number of years the annuity is to run and the second column 
 representing the present cash value of an annuit.v of one dollar for 
 such number of years, respectively : 
 
 No. of years Cash value of 
 
 annuity is the annuity 
 
 to run. of $1. 
 
 1 $0,943 
 
 2 1.833 
 
 3 2.673 
 
 4 3.465 
 
 5 4.212 
 
 6 4.917 
 
 7 5.5S2 
 
 8 6.209 
 
 9 6.801 
 
 10 7.360 
 
 11 7.886 
 
 12 8.383 
 
 13 8.852 
 
 14 9.295 
 
 15 9.712 
 
 16 10.106 
 
 17 10.477 
 
 18 10.827 
 
 19 11.158 
 
 20 11.469 
 
 21 11.761 
 
 No. of years Cash value of 
 
 annuity is the annuity 
 
 to run. ofjl. 
 
 22 12.042 
 
 23 12.304 
 
 24 12.550 
 
 25 12.783 
 
 26 $13,003 
 
 27 13.211 
 
 28 13.406 
 
 29 ..; 13.591 
 
 30 13.765 
 
 31 13.929 
 
 32 14.081 
 
 33 14.230 
 
 34 14.368 
 
 35 14.498 
 
 36 14.621 
 
 37 14.737 
 
 38 14.846 
 
 39 14.949 
 
 40 15.046 
 
 41 15.135 
 
 42 15.219
 
 THE STATE OF l^OHTH CAROLINA 
 
 741 
 
 No. of years 
 
 Cash value of 
 
 No. of years 
 
 Cash value of 
 
 animiiy is 
 
 the annuity 
 
 annuity Is 
 
 •he annuity 
 
 to run. 
 
 of$l. 
 
 to run. 
 
 of *l. 
 
 43 15.299 
 
 44 15.374 
 
 45 15.445 
 
 46 15.514 
 
 47 15.579 
 
 48 15.041 
 
 49 15.699 
 
 50 15.754 
 
 The present cash value of the annuity for a fraction of a year 
 may be ascertained as follows : J\Iultiply the difference between the 
 cash value of the annuities for the preceding and succeeding full 
 years by the fraction of the year in decimals and add the sum to 
 the present cash value for the preceding full year. When a person 
 is entitled to the use of a sum of money for life, or for a given 
 time, the interest thereon for one year may be considered as an 
 annuity and the present cash value be ascertained as herein pro- 
 vided. 
 
 1905, c. 347. 
 
 Agents, Etc., Making False Statements. 
 
 Section 3487. If any solicitor, agent, examining physician or 
 other jierson shall knowingly or wilfully make any false or fradu- 
 lent statement or representation in or with reference to any pi;b- 
 lication for insurance, or shall make a,ny such statement for the 
 purpose of obtaining fee, commission, money or benefit in any 
 e(ir])oration transacting business in this State, he shall be guilty of 
 a misdemeanor, and upon conviction shall be punished by a fine 
 of not less than one hundred dollars nor more than five hundred 
 dollars, or imprisonment in the county jail for not less than thirty 
 days nor more than one year, or both, at the discretion of the 
 eonrt ; and if any person shall wilfully make a false statement of 
 any material fact or thing in a sworn statement as to the death 
 or disabilit.v of a policy or certificate holder in any such corpo- 
 ration for the purpose of procuring payment of a benefit named 
 in the certificate of such holder, he shall be guilty of perjury. 
 
 1899, c. 54, s. 60. 
 
 Company Making False Statement. 
 Section 3493. If any insurance company in its annual or other
 
 742 FRATERNAL SOCIETY LAW 
 
 statemeut required b\' law shall wilfully misstate the facts, the 
 insurance company and the person making oath to or subscribing 
 the same shall severally be punished by a fine of not less than five 
 hundred nor more than one thousand dollars. Any person making 
 oath to such false statement shall be guilty of the crime of perjury. 
 (1899, c. 5-1, s. 97.) 
 
 Failure to Exhibit Books on Demand. 
 
 Section 'di'J-i. If any person having in his possession or control 
 any books, accounts or pax)ers of any person licensed under the in- 
 surance law shall, on demand, refuse to exhibit the same to the in- 
 surance commissioner, or shall knowingly or wilfully make any 
 false statement in regard to the same, such person shall be deemed 
 guilty of a misdemeanor, and, upon conviction thereof shall be fined 
 or imprisoned, or both, at the discretion of the court. (1899, c. 54, 
 s. 76.) 
 
 Medical Examination, When Required. 
 
 Section 4779. No life insurance company organized under the 
 laws of or doing business in this State shall enter into any contract 
 of insurance upon lives within this State without having previously 
 made or caused to be made a prescribed medical examination of the 
 insured by a registered medical practitioner. This section shall 
 not apply to the issuing of policies, or other contracts of insurance, 
 for less than one hundred dollars. 
 
 Husband May Insure His Life for Benefit of Wife and Children. 
 
 Section 4771. The husband may insure his own life for the sole 
 use and benefit of his wife and children, and in case of the death 
 of the husband, the amount thus insured shall be paid over to the 
 wife and children, or to the guardian, if under age. for her, or their 
 own use, free from all the claims of the repi-esentatives of her hus- 
 band, or any of his ci-editors. (Const., Art X, s. 7.)
 
 THE STATE OF NORTH CAROLINA 743 
 
 Beneficiary Takes Precedence of Creditors, Etc., of Insured — May 
 Sue in His Own Name — If a Married Woman, Holds to Her Sepa- 
 rate Use and That of Her Children. 
 
 Section 4772. When a policy of insurance is effected by any 
 person on his own life, or on another life in favor of some person 
 other than himself having an insurable interest therein, the lawful 
 beneficiary thereof, other than himself or his legal representatives, 
 shall be entitled to its proceeds against the creditors and repre- 
 sentatives of the person effecting the same. The person to whom 
 a policy of life insurance is made payable may maintain an action 
 thereon in his own name. Every policy of life insurance made 
 payable to or for the benefit of a married woman, or after its issue 
 assigned, transferred, or in an.y way made payable to a married 
 woman, or to any person in trust for her or for her benefit, whether 
 procured by herself, her husband or by any other person, and 
 whether the assignment or transfer is made by her husband or by 
 any other person, shall inure to her separate use and benefit and to 
 that of her children, if she should die in his lifetime. (Const., Art. 
 X, s. 7; 1899, c. 54, s. 59.) 
 
 Life Insurance Company Defined — Requisites to Contracts. 
 
 Section 4773. All corporations, associations, partnerships or in- 
 dividuals doing business in this State, under any chai'ter, compact, 
 agreement or statute of this or any other State, involving the pay- 
 ment of money or other thing of value to families or representatives 
 of policy and certificate holders or members, conditioned upon the 
 continuance or cessation of human life, or involving an insurance, 
 guaranty, contract or pledge for the payment of endowments or an- 
 nuities, or who shall employ agents to solicit bx^siuess, shall be 
 deemed to be life insurance companies, shall in all resp ects be sub- 
 ject to the laws herein made and provided for the government of 
 life insurance companies, and shall not make any such insur- 
 ance, guaranty, contract or pledge in this State with any citizen 
 or resident thei-eof, which does not distinctly state the amount of 
 benefits payable, the manner of payment and the consideration there- 
 for.
 
 744 FRATERNAL SOCIETY LAW 
 
 Foreign Assessment Companies or Orders. 
 
 Section 4713. Each foreign insurance company, association, or 
 order, doing business in this State on the assessment plan, shall 
 keep at all times deposited in its head office in this State, or in some 
 responsible banking or trust company, one regular assessment suf- 
 ficient to pay the average loss or losses occurring among its members 
 in this State during the time allowed by it for the collection of 
 assessments and payment of losses. It shall notify the insurance 
 commissioner of such place of dej^osit and furnish him at all times 
 such information as he m&y require in regard thereto. 
 
 May Require Books, Papers, Etc., to be Exhibited. 
 
 Section 4697. It shall be the duty of any person having in his 
 possession or control any books, accounts or papers of any company, 
 order or person licensed under this chapter, to exhibit the same 
 to the insurance commissioner on demand. (1899, c. 54, s. 76.) 
 
 Annual Statements, Under Oath, to be Filed With the Commissioner 
 — Blanks to be Furnished. 
 
 Section 4698. Every insurance company, association or order — 
 domestic, thi-ough its officers, and foreign, through its general agent 
 — shall file in the office of -the insurance commissioner, on or before 
 the first day of March in each year, in such form and in such detail 
 as the insurance commissioner shall prescribe, a statement showing 
 the business standing and financial condition of such company, 
 association or order on the preceding thirty-first day of December, 
 signed and sworn to by the chief managing agent or officer thereof, 
 before the insurance commissioner or some officer authorized by law 
 to administer oaths. The insurance commissioner shall in December 
 of each year, furnish to each of the insurance companies authorized 
 to do business in the State two or more blanks adapted for their 
 annual statements. 
 
 Duties of Commissioner. 
 
 Section 4689. The insurance commissioner shall see that all laws
 
 THE HTATE OF NORTH CAROLINA 745 
 
 relating to the companies, associations and orders under the insur- 
 ance department are faithfully executed. ITe shall furnish to each 
 of the companies incorporated by this State and to the attorneys 
 or general agents of companies and associations incorporated by 
 other States and foreign governments, doing business in this State, 
 printed forms for all statements required by law. He shall, on or 
 before the tenth day of each month, and oftener should the sum 
 to the credit of the State exceed twenty thousand dollars, pay over 
 all taxes, licenses and fees which he may have received during the 
 previous month to the state treasurer. He shall perform all duties 
 now imposed upon him by law in regard to the examination, super- 
 vision and conduct of companies and associations and orders. He 
 may administer the oaths in the discharge of his official duty. Upon 
 a proper api)lieation by any citizen of this State he shall 'give a 
 statement or synopsis of the provisions of any insurance contract 
 offered or issued to such citizen. (1899. c. 54, s. 8 ; 1905, c. 430. s. 3.) 
 
 Authority Extends to all Insurance Companies. 
 
 Section 4691. Every insurance company, association or order, as 
 well as every bond, investment, divident, guarantee, registry, title 
 guarantee, debenture, or such other like company (not strictly an 
 insurance company, as defined in the general insurance laws), shall 
 be licensed and supervised by the insurance commissioner, and shall 
 pay all licenses, taxes and fees as prescribed in the insurance laws 
 of the State for the class of company, association or orders to which 
 it may belong. No provision in any statute, public or pi'ivate, shall 
 have the effect of relieving any company, association or order from 
 any such supervision as is prescribed for the class of companies, 
 associations or orders of like character, or of releasing it from the 
 payment of such licenses, taxes and fees as are prescribed for com- 
 panies, associations and orders of the same class; and all such 
 special provisions or exemptions are hereb.v repealed. It shall be 
 unlawful for the insurance commissioner to grant or issue a license 
 to any company, association or order, or agent for them, claiming 
 such exemption from supervision by his department and release 
 for the payment of license, fees and taxes. (1903. c. 594, ss. 1, 2, 3.)
 
 746 FRATERNAL SOCIETY LAW 
 
 Conditions Precedent to Liability. 
 
 The following condition contained in the policy, that "no insur- 
 ance shall be in force until the delivery of the policy to and the 
 pa.yment of the first premium by the party whose life is insured, 
 while in good health," is valid and does not contravene public policy, 
 and is important to both parties as fixing a day certain when the 
 agreement becomes absolute. 
 
 Ray vs. Security Trust and Life Ins. Co., March, 1900, 126 N. C. 160, 
 
 Payment of Premiums by Checks Through Mails. 
 
 The regularity of the United States mail as a public agency is such 
 that it is not negligence to rely upon it as a method of transmission 
 of premiums, especially as it had been used in the course of dealings 
 between the parties previously, and there was no express revocation 
 of the method in vogue of the member sending and the society re- 
 ceiving checks in payment of premiums through the mail. 
 
 Hollowell vs. Life Ins. Co. of Virginia, April, 1900, 126 N. C. 398. 
 
 Suit, When Plaintiff's Case is Made. 
 
 A prima facie case is made for the plaintiff when the certificate is 
 introduced, the death of the member proved, and demand for pay- 
 ment shown. 
 
 Doggett vs. United Order of the Golden Cross, May, 1900, 126 N. 0. 
 477. 
 
 Proofs of Death Waived by Denial of Liability. 
 
 The denial of liability waives the necessity for making and filing 
 proofs of loss. 
 
 Doggett vs. United Order of the Golden Cross, May, 1900, 126 N. C. 
 477.
 
 THE STATE OF NOh'TH CAROLINA 747 
 
 After-enacted Laws Will Not be Permitted to Destroy Contract. 
 
 A mutual life insurance comjiany, by whatever name called, al'li'f 
 entering into a contract of insurance with one of its members -and 
 receiving large sums thereunder cannot, without the member's con- 
 sent, so alter the contract as to practically desti"oy its value. 
 
 Strauss vs. Mutual Reserve Fund .Life Assn., June, 1900, 126 N. C. 
 971. 
 
 Damages, Measure of for Breach of Contract by Society. 
 
 Where the member refuses to comply with the altered terms of 
 his contract, and to pay the increased assessments imposed thereby, 
 and the society ceased and refused to longer recognize him as a 
 member on account of his said refusal, the society becomes liable to 
 him in damages if its action in raising the rates is excessive and 
 invalid, and the damages are to be measured by the amount of the 
 premiums and dues i)aid by the member under the contract, with 
 interest thereon from the date of each payment. 
 
 Strauss vs. Mutual Reserve Fund Life Assn., .June. 1900, 126 N. C. 
 971. 
 
 Beneficiary, Person Not Named as Such Has No Right to Certificate. 
 
 A person having a certificate in his possession but not being named 
 therein as beneficiary, has no interest in same, it not having been 
 assigned to the person. 
 
 Smith vs. Supreme Council. Royal Arranum. Nov., 1900, 127 N. C. 
 138. 
 
 Occupation, Change of When. 
 
 Where a railroad tlagmau represented in his application liis occu- 
 pation to be "freight flagman, not coupling or switching," and he 
 was killed while placing a slack pin between two cars, this single 
 act of the member did not vitiate the contract or change his oceu-
 
 748 FRATERNAL SOCIETY LAW 
 
 pation to one more hazardous, the classification of the society being 
 solely of occupations and not of risks or hazards. 
 
 Hoffman vs. Standard Life and Accident Co., Dec, 1900, 127 N. C. 337. 
 
 State Insurance Commissioner, Power of Attorney to. 
 
 The power of attorney in favor of the State Insurance Commis- 
 sioner authorizing service of process upon him, is valid and is irre- 
 vocable. 
 
 Biggs vs. Mutual Reserve ITund Life Assn., March, 1901, 128 N. C. 5. 
 
 Agency of Local Official. 
 
 The financial secretary of a local lodge is the agent of the Su- 
 preme Lodge, and his failure to transmit money received for assess- 
 ments does not operate to forfeit the certificate. 
 
 Bragaw vs. Supreme Lodge. Knights and Ladies of Honor. May. 1900. 
 128 N. C. 354. 
 
 After-enacted Laws, When Valid. 
 
 "A provision that one should become a member subject to the 
 power of a corporation to change its by-laws, cannot be construed 
 into liberty to change at its will the contract of insurance it has 
 made with each insured. The company and the assured occupy two 
 entirely different relations. In one it is a company and the other 
 party one of its members. In that relation the by-laws or constitu- 
 tion can be amended at will of the majority, if done in the legal 
 and prescribed mode. The other relation is that of insurer and 
 insured, and this contract relation cannot bo altered save by tlir- con- 
 sent of both parties." 
 
 Bragaw vs. Supreme Lodge. Knights and Ladies of Honor, May. 1900, 
 128 N. C. 354. 
 
 After-enacted Laws, When Not Valid. 
 
 A mere general assent by a nicmbci- of a mutual benefit society
 
 THE STATE OF NORTH CAROLINA 749 
 
 to the amendment of its laws and constitution does not authorize 
 such a change as will destroy his vested rights. 
 
 Strauss vs. Mutual Reserve Fund Life Assn., June, 1901. 128 N. C. 
 
 465; 
 Simmons vs. Mutual Reserve Fund Life Assn., June, 1901, 128 N. C. 
 
 469. 
 
 Foreign Society, How Domesticated. 
 
 A fraternal society incorporated under an act of congress as a 
 District of Columbia corporation becomes a domestic corporation by 
 complying with the acts of 1899, chapter 62, of N(u-tli Carolina. 
 
 Layden vs. Endowment Rank, Knights of Pytliias, June, 1901, 128 
 N. C. 546. 
 
 Service of Process on Insurance Commissioner. 
 
 A power of attorney in favor of the State Insurance Commissioner 
 is irrevocable so long as the company has liabilities in the State re- 
 maining luisatisfied, and service of process on the commissioner is 
 valid although the company has not domesticated under the laws of 
 the State. 
 
 Moore vs. Mutual Reserve Fund Life Assn., Sept., 1901, 129 N. C. 31. 
 
 Agency of Local Officials. 
 
 The officers of a subordinate lodge in the performance of their 
 duties under the by-laws enacted by the Supreme Lodge are to be 
 held to be the agents of the Supreme Lodge. 
 
 Cheek vs. Supreme Lodge, Knights of Honor, Nov., 1901, 129 N. C. 
 179. 
 
 Physician, Privileged Communications May be Made Competent by 
 Waiver of Statute. 
 
 An applicant for membership in a society may waive the right on 
 behalf of his beneficiaries to object to the evidence of a physician
 
 750 FRATERNAL SOCIETY LAW 
 
 acquired while attending him, and the physician may be compelk*<! to 
 testify. 
 
 "At common law there is no privilege extending to the relation 
 between patient and physician ; while as between attorney and client, 
 the attorney entrusted with the secrets of the cause by the client 
 shall not be compelled to give evidence of such conversation on mat- 
 ters 01 privacy as come to his knowledge by virtue of such trust and 
 confidence, but with the client's consent it may be waived and he 
 ma.y be compelled to testify. The privilege between patient and 
 physician created by our statute is less stringent and more lax than 
 that of the common law between attorney and client. As between 
 the latter, the attorney's mouth is sealed for all time except by eon- 
 sent, and he cannot be compelled by court to testify, while under 
 our statute it is provided that the judge, in furtherance of the ad- 
 ministration of justice, may compel the physician to disclose the 
 information acquired by him from his patient." 
 
 Fuller vs. Knights of Pythias. Dec, 1901, 129 N. C. 318. 
 
 Forfeiture, Self-executing Provisions. 
 
 The non-payment of dues or assessments, if it is stipulated in the 
 policy, will of itself work a forfeiture. 
 
 Riddifk vs. The Farmers' Life Assn., March. 1903, 132 N. C. US. 
 
 Cancellation, Damages for. Measure of. 
 
 Where an insurance contract is wrongfully cancelled, the amount 
 of the recovery by the assured is the premiums paid with interest 
 thereon from the dates of payments. 
 
 Gwaltney vs. Provident Savings Life Assurance Society, June, 1903. 
 132 N. C. 925. 
 
 Breach of Contract, Measure of Damages for. 
 
 The liolilcM' (if a ccrtilifatr which has iiccii illc^'ally reduced by the
 
 THE UTATE OF NOKTU CAICOLINA 751 
 
 society is entitled to sue for the payments made with interest thereon 
 from the dates when they were paid. 
 
 Makely vs. American Legion of Honor, Nov., 1903, 133 N. C. 367. 
 
 After-enacted Laws, When Not Valid. 
 
 A mutual life insurance society cannot by changing its by-laws 
 lessen the value of the contract by reducing the amount of in- 
 demnity. 
 
 Makely vs. American Legion of Honor, Nov., 1903, 133 N. C. 367. 
 
 After-enacted Laws, Valid When. 
 
 A mutual society cannot change its constitution subsequent to 
 the contract with its members and to their detriment except by 
 mutual consent. 
 
 Johnson vs. Reformers, May, 1904, 135 N. C. 385. 
 
 Insurance Commissioner, Power of Attorney to. 
 
 The power of attorney executed to the State Insurance Commis- 
 sioner appointing him attorney upou whom process can be served, 
 is irrevocable and remains in force as long as any liability against 
 the company exists in the State. 
 
 Mut. Reserve Fund Life Assn. vs. Scott, Oct., 1904, 136 N. C. 157. 
 
 Contract, Date When Same Takes Effect. 
 
 An insurance contract takes eifect from the date of the certificate, 
 unless it is stated that it shall take effect only upon certain con- 
 ditions being met. If it is delivered it takes effect as of the day 
 of its date. 
 
 Rayburn vs. Casualty Co.. May, 1905, 138 N. C. 379. 
 
 Foreign Societies Cannot Avail Under Statute of Limitations. 
 
 Under Section 162 of the Code, the statute of limitations does not
 
 752 FRATERNAL SOCIETY LAW 
 
 run in favor of a non-resident whether it is an individual or a 
 corporation. 
 
 Green vs. Hartford Life Ins. Co., Oct., 1905, 139 N. C. 309. 
 
 Assessments, Members Cannot Defeat Same for Losses Occurred Dur- 
 ing Membership. 
 
 Where the members of a mutual insurance company have enjoyed 
 the protection which the membership affords, they cannot, after a 
 loss has been sustained, withdraw and refuse to pay their portion 
 of the loss. 
 
 Perry vs. Farmers' Mut. Fire Ass'n, Oct., 1905, 139 N. C. 374. 
 
 Agency of Local Official, When Knowledge Imputed. 
 
 Where a local agent has actual knowledge of the falsity of a state- 
 . ment made by the applicant in his api^lieation for insurance, and 
 forwards the application upon which the certificate is issued, the 
 knowledge of the agent is held to be the knowledge of the company, 
 and the false statement Avill not void the contract in the absence 
 of any evidence of actual fraud on the part of the applicant and 
 agent. 
 
 Fishblate vs. Fidelity Co., March, 1906, 140 N. C. 589. 
 
 Representations, Materiality of. 
 
 Every fact untruly asserted or wrongfully suppressed must be 
 regarded as material if the knowledge or ignorance of it would 
 naturally infliience the judgment of the society in making the con- 
 tract or in estimating the degree and character of the risk, or fixing 
 the rate of the member's contribution. 
 
 Fishblate. vs. Fidelity Co., March, 1906, 140 N. C. 589. 
 
 Foreign Society, Receiver Will Not be Appointed. 
 
 A receiver for a foreign insurarice company will not be appointed
 
 THE STATE OF NOR'J'JI CAROLINA 753 
 
 where the company has no assets or property within the State other 
 than assessments to become due from niembi rs ol' ihe company liv- 
 ing within the State. 
 
 Blackwell vs. Mut. Reserve Fund Life Assn., April, 1906, 141 N. C. 
 117. 
 
 Foreign Society Contracts Governed by Laws of This State. 
 
 A provision in a contract of insurance that "this contract shall 
 be governed by, subject to, and construed only, according to the 
 laws of the State of New York, the place of this contract being ex- 
 pressly agreed to be the home office of said association in the city of 
 New York," is void so far as the courts of this State are concerned. 
 
 Blackwell vs. Mut. Reserve Fund Life Assn., April, 1906, 141 N. C. 
 117. 
 
 Proofs of Death, Denial of Contract Waives Same. 
 
 The denial of the existence of any contract of insurance, or of 
 any liabilitj^, is a waiver of proofs of loss. 
 
 Lanier vs. Ins. Co., Sept., 1906, 142 N. C. 14. 
 
 Reinstatement, Acts of Officer in Connection Not Ministerial. 
 
 A provision in a contract reading that "delinquent members may 
 be reinstated, if approved by the Medical Director and President 
 by giving reasonable assurances that they are in continued good 
 health." is valid, and the approval required is not a mere ministerial 
 act but involves the exercise of judgment and discretion. 
 
 Lane vs. Fid. Mut. Life Ins. Co., Sept.. 1906, 142 N. C. 55. 
 
 Assessments, Mailing Notices Valid. 
 
 A by-law providing that notices may be given members of assess- 
 
 48
 
 754 FRATERNAL SOCIETY LAW 
 
 ments by mailing, properly addressed, is valid and binding upon 
 the members. 
 
 Duffy vs. Fid. Mut. Life Ins. Co., Sept., 1906, 142 N. C. 103. 
 
 Suicide, Sane or Insane Provision Valid. 
 
 A provision in a contract that if the insured within one year from 
 the issue of the contract shall die by his own act or hand, whether 
 sane or insane, the society shall not be liable for any greater sum 
 than the amount paid in assessments, is valid and refers to suicide, 
 b\it does not include killing by accident. 
 
 Thaxton vs. Ins. Co., Nov., 1906, 143 N. C. 33. 
 
 Reinstatement May be Secured Only in Strict Conformity to Laws. 
 
 Where a bj'-law provided that "any member failing to pay his as- 
 sessment within thirty days after notice mailed to him, shall be 
 dropped from the association and shall be required to pay a new 
 membership fee in order to renew his insurance," and the member, 
 having failed to pay an assessment of which he had notice, was 
 dropped, the society had the right to refuse to reinstate him after 
 the lapse of three months after he had forfeited his contract, and 
 when his health had become hopelessly impaired. 
 
 Hay vs. People's Mut. Benev. Assn, Dec, 1906, 143 N. C. 256. 
 
 Assessments, Prompt Payment of Not Waived by Occasional Favors. 
 
 The fact that a society on some occasions accepts payments of 
 members' assessments after they should have been paid, does not 
 constitute a waiver of the terms of the contract nor amount to an 
 agreement that assessments need not be paid promptly, especiall.v 
 where there Avas unreasonable delay and the health of the member 
 had become hopelessly impaired. 
 
 Hay vs. People's Mut. Benev. Assn., Dec. 1906. 143 N. C. 256.
 
 THIi UTATB OF NORTH CAROLINA 755 
 
 Agency, What Acts Are Not Imputed to Society. 
 
 Where the ayeiit had im pdwci- tn issue |iolicies and was not the 
 fieneral agent of the company liiit a soliciting agent of restricted 
 powers, his mistake concerning the policy to be issued, which was 
 contrary to the rules and regulations of the company, and which 
 it did not authorize, cannot be imputed to the company. 
 
 Floars vs. Aetna Life Ins. Co., April, 1907, 144 N. C. 232. 
 
 Members Charged With Knowledge of Contract Provisions. 
 
 Where persons receive contracts of insurance and make payments 
 luuler them, and do not read the contracts for some years, but sub- 
 sequently read a portion of the contracts and continue to make pay- 
 ments for several years longer, they are not to be heard to complain 
 of the provisions of the contract. 
 
 Cathcart vs. Life Ins. Co. of Virginia. May, 1907, 144 N. C. 623. 
 See also 
 
 Slkes vs. Life Ins. Co. of Virginia, May, 1907, 144 N. C. 626. 
 
 Contracts, Forms of, Judicial Notice Respecting. 
 
 The Court will take judicial notice that jiolicies of insurance are 
 gotten up on printed forms designed to meet the average and gen- 
 eral demand in contracts of this nature, and frequently changes are 
 made to meet special conditions ; and in the absence of special cir- 
 cumstances tending to cast suspicion thereon, entries by marginal 
 notes and pasters on the policy raise no presumption of alteration, 
 but the nature of the enti'y and its placing are simply circumstances 
 on the general question for the .jury as to a completed contract. 
 
 Waters vs. Security Life and Annuity Co.. May. 1907. 144 N. C. 663. 
 
 Foreign Corporations Have Rights Only by Grace. 
 
 The legislature has the power to prescribe the terms on which
 
 756 FRATERNAL SOCIETY LAW 
 
 foreign corporations may enter the State and may pass statutes for 
 the protection of its own citizens doing business with such corpora- 
 tions, as against the objection that such statutes discriminate against 
 non-residents. 
 
 Williams vs. Mut. Reserve Fund Life Assn., Supreme Court of N. 
 C, Oct., 1907, 58 S. E. 802. 
 
 Assig-nment, Form Not Essential. 
 
 No particular form of words is essential to effect an assignment or 
 surrender of a policy of insurance. 
 
 Ormond vs. Connecticut Mut. Life Ins. Co., Supreme Court of N. C, 
 Oct. 1907, 58 S. E. 997. 
 
 Jurisdiction, Service of Summons on Commissioner. 
 
 In an action against a foreign fraternal society doing business 
 within the State, service of summons on the insurance commissioner 
 confers jurisdiction on the society. 
 
 Brenizer vs. Supreme Council, Royal Arcanum, Supreme Ct. N. C, 
 May, 1906, 53 S. E. 835. 
 
 Trust Funds, Mortuary Funds are. 
 
 The constitution of a society provided that one of its objects was 
 to establish a widows' and orphans' benefit fund from which an 
 amount not to exceed $3,000.00 was to be paid to the wife, etc., of 
 deceased members; that the fund from which payments should be 
 made was to be derived from assessments collected from members, 
 and that the expenses of the society should be defrayed from per 
 capita tax dues and expense assessments. Provision was also made 
 for creating from assessments an emergency fund in excess of cur- 
 rent death losses. It was held that assessments payable into the 
 benefit fund which -was in the hands of the local collector, and which 
 he was bound to pay into the society, were trust funds for the 
 beneficiaries of deceased uioiubers and were not s\ibjoet to attach- 
 ment by a creditor of the society.
 
 THK .STATE OF NORTH CAROLINA 757 
 
 Brenizer vs. Supreme Council, Roya! Arcanum, Supreme Ct. N. C., 
 May, 190G, 53 S. E. 835. 
 
 Foreign Society, Rights of. 
 
 The courts of a State have no power to control the Supreme 
 Council of a foreign fraternal societ.y by mandamus or injunction. 
 
 Brenizer vs. Supreme Council, Royal Arcanum, Supreme Ct. N. C., 
 May, 1906, 53 S. E. 835.
 
 758 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF NORTH DAKOTA. 
 
 CHAPTER 35. 
 
 Article 5. Chapter 17 of the Civil Code of North Dakota relates 
 to fraternal societies and is as follows: 
 
 Fraternal Beneficiary Societies. 
 
 Section 4570. A fraternal beneficiary association is hereby de- 
 clared to be a corporation, society or voluntary association, formed, 
 or organized and carried on, for the sole benefit of its members and 
 their beneficiaries, and not for profit. Each association shall have a 
 lodge .system, with ritualistic form of work and representative form 
 of government, and shall make provision for the payment of benefits 
 in case of death, and may make provision for the payment of bene- 
 fits in case of sickness, temporary or permanent physical disability, 
 either as the result of disease, accident or old age, provided the 
 period in life at which payment of physical disability benefits on ac- 
 count of old age commences, shall not be under seventy years, sub- 
 ject to their compliance with its constitution and laws. The fund 
 from which the payment of such benefits shall be made, and the fund 
 from which the expenses of such association shall be defrayed, shall 
 be derived from asses.sments or dues collected from its members. 
 Payment of death benefits shall be to the families, heirs, blood rela- 
 tives, aifianced husband or affianced wife of or to persons dependent 
 upon the member. Such a.ssociation shall be governed by this article 
 and shall be exempt from the provisions of insurance laws of this 
 State, and no law hereafter passed shall apply to them unless they
 
 THE STATE OF NORTH DAKOTA 76!> 
 
 be expressly designated therein. Any such fraternal beneficial asso- 
 ciation may create, maintain, disburse and apply a reserve or emer- 
 gency fund in accordance with its constitution or by-laws. [1901, ch. 
 90, § 1.] 
 
 How to Proceed. 
 
 Section 4571. All such associations coming within the descrii)tion, 
 as set forth in Section 4570, organized under the laws of this or any 
 other State, province or territory, and now doing business in this 
 State, may continue such business; provided, that they hereafter 
 comply with the provisions of this article regulating annual reports 
 and the designation of the commissioner of insurance as the person 
 upon whom process may be served as hereinafter provided. [ 1901, 
 ch. 90, § 2.] 
 
 How to do Business in This State. 
 
 Section 4572. Any such association coming within the description, 
 as set forth in Section 4570, organized under the laws of any other 
 State, province or territory, and not now doing business in this 
 State, shall be admitted to do bushiess within this State when it 
 shall have filed with the commissioner of insurance, a duly certified 
 copy of its charter and articles of association, and a copy of its con- 
 stitution or laws, certified to by its secretary or corresponding officer, 
 together with the appointment of the commissioner of insurance of 
 this State as a person vipon whdui process may be served as herein- 
 after provided; and, provided, that such association shall be shown 
 to be authorized to do business in the State, province or territory 
 in which it is incorporated or organized, in case the laws of such 
 State, province or territory shall provide for such authorization; and 
 in case the laws of such State, province or territory do not provide 
 for any formal authorization to do business on the part of such asso- 
 ciation, then such association shall be shown to be conducting its 
 business in accordance with the provisions of this article, for which 
 purpose the commissioner of insurance of this State may personally, 
 or by some person to be designated by him, exnmine into the condi- 
 tion, affairs, character and business methods, accounts, books and in-
 
 760 FRATERNAL SOCIETY LAW 
 
 vestments of such association at its home office, which examination 
 shall be at the expense of such association, and shall be made within 
 thirty days after the demand thereof, and the expense of such exam- 
 ination shall be limited to one hundred dollars. [1901. ch. 90, § 3.] 
 
 Must File Certificate of Authorization. 
 
 Section 4573. ^^ly association doing business under this article 
 shall be permitted to do business upon filing annually with the com- 
 missioner of insurance of this State, the certificate of authorization 
 of the insurance department of the State, province or territory in 
 which it is incorporated or organized; provided, however, in case of 
 failure to file said certificate by any such association, or in case the 
 commissioner of insurance shall deem it necessary, he shall have 
 power to examine, eitlier personally or by some person designated 
 by him, into the condition, afi:'airs, character, business methods, ac- 
 counts, books and investments of such association, at its- home office, 
 which examination shall be at the expense of the association; the 
 amount thereof shall not exceed one hundred dollars in associations 
 with no reserve or emergencj' fund, and two hundred dollars for 
 associations with a reserve or emergencj^ fund. [1901. ch. 90. § 4.] 
 
 Must Make Annual Report. 
 
 Section 4574. Everj^ such association doing business in this State 
 shall, on or before the first day of March of each year, make and file 
 with the commissioner of insurance of this State, a report of its 
 affairs and operations during the year ending on the thirty-first day 
 of December, immediately preceding, which annual report shall be in 
 lieu of all other reports required by any other law. Such reports 
 shall be uj^on blank forms, to be provided by the commissioner of 
 insurance, or may be printed in pamphlet form, and shall be verified 
 under oath by the dul.v autliorized officers of such association, and 
 shall contain answers to the following questions : 
 
 1. Number of certificates issued during the year, or members ad- 
 mitted. 
 
 2. Amount of indemnity effected thereby. 
 
 3. Number of losses or benefit liabilities incurred.
 
 THE STATE OF NORTH DAKOTA 761 
 
 4. Numbei- oi losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representatives 
 or heirs. 
 
 7. Number and l<in(l nf chiinis Uiv whieh assessments have been 
 made. 
 
 8. Number and kind of claims compromised or resisted, and state- 
 ment of reasons. 
 
 9. Does association charge annual or other periodical dues or ad- 
 mission fees ? 
 
 10. How nuich on each one thousand dollars, annually or per 
 capita, as the case may be. 
 
 11. Total amount received, from what source, and the disposition 
 thereof. 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does the association guarantee, in its certificate, fixed amounts 
 to be paid, regardless of amount realized from assessments, dues, 
 admission fees and donations? 
 
 14. If so, state amount guaranteed, and the security of such guar- 
 anty. 
 
 15. Has the association a reserve fund? 
 
 16. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested? 
 
 17. Has the association more than one class? 
 
 18. If so, how many, and the amount of indemnity in each? 
 
 19. Number of members in each class. 
 
 20. If voluntary, so state, and give date of organization. 
 
 21. If organized under the laws of this State, under what law, 
 and at what time; giving chapter and year and date of the passage 
 of the act. 
 
 22. If organized under the laws of any other State, province or 
 territory, state such fact, and the date of organization, giving chapter 
 and year and date of passage of the act. 
 
 23. Number of certificates of beneficiary membership lapsed dur- 
 ing the year. 
 
 24. Number in force at beginning and end of year; if more than 
 one class, number in each class.
 
 762 FRATERNAL SOCIETY LAW 
 
 25. Names and addresses of its president, secretary and treasurer, 
 or corresponding officers. 
 
 The commissioner of insurance is authorized and empowered to 
 address any additional inquiries to any such association, in relation 
 to its doings or condition, or any other matter connected with its 
 transaction, relative to the business contemplated by this article ; and 
 such officers of such association, as the commissioner of insurance 
 maj' require, shall promptly reply in writing, under oath, to all such 
 inquiries. [1901, ch. 90, § 5.] 
 
 When Principal Office is Not in the State. 
 
 Section 4575. Each such association now doing, or hereafter ad- 
 mitted to do, business within this State, and not having its principal 
 office within this State, and not being organized under the laws of 
 this State, shall appoint, in writing, the commissioner of insurance, 
 and his successors in office, to be its true and lawful attorney, upon 
 whom all lawful process in any action or proceeding against it must 
 be served, and in such writing shall agree that any lawful process 
 against it, which is served on said attorney, shall be of the same legal 
 force and validity as if served upon the association, and that the 
 authority shall continue in force so long as any liability remains out- 
 standing in this State. Copies of such certificate, certified by said 
 commissioner of insurance, shall be deemed sufficient evidence there- 
 of, and shall be admitted in evidence with the same force and eft'ect 
 as the original thereof might be admitted. Service upon such at- 
 torney shall be deemed sufficient service upon such association. 
 "When legal process against any such association is served upon said 
 commissioner of insurance, he shall immediately notify the associa- 
 tion of such service by letter, prepaid and directed to its secretary 
 or corresponding officer, and shall withiu two days after such ser- 
 vice forward in the same manner a copy of the process served on 
 him to such officer. The plaintiff in such process so served shall pay 
 to the commissioner of insurance, at the time of such service, a fee of 
 three dollars, wliicli shall he recovered by him as a part of the tax- 
 able co.sts, if he prevails in the suit. The comniissionor of insurance 
 shall keep a roenrd of all processes served upon him, which record
 
 THE STATE OF NORTH DAKOTA 763 
 
 shall show tlie d;iy and lionr when such serviei' was made. [1901, 
 ch. 90, § C] 
 
 Insurance Commissioner Issues Permit. 
 
 Sectiou 4576. The commissioner of insurance of this State shall, 
 upon application of any association having the right to do business 
 within this State, as provided by this article, issue to such associa- 
 tion annually a permit in writing authorizing such association to do 
 business within this State, for which permit and all proceedings in 
 connection therewith, such association shall pay to said commissioner 
 the fee of fifteen dollars. [1901, ch. 90, § T.] 
 
 File Articles of Incorporation. 
 
 Section -1.377. Every fraternuj or l)eii('liei;ti'y society or associa- 
 tion which undertakes to furnish indemnity to its members or their 
 families, which is not incorporated under the laws of another State, 
 shall before doing business in this State, incorporate under the pro- 
 visions of article 3 of this chapter, and in addition shall file with the 
 coiuniissiouer of insurance a duly certified copy of its articles of in- 
 corporation, and a copy of its constitution and laws, duly certified 
 by its secretary of corresponding officer, and shall in all respects 
 comply with, and be subject to, the provisions of this article so far 
 as tile saiiii' are applicable. Such commissioner of insurance shall, 
 before issuing a permit to such corporation to do business, examine 
 into its character and ascertain that it in all things has complied 
 with the requirements of this article. [1901, ch. 90, § 8.] 
 
 Paid Agents, when Employed. 
 
 Section 4578. Such association shall not employ paid agents in 
 soliciting or procuring members, except in the organization or build- 
 ing up of subordinate bodies, or granting members inducements to 
 procure new members. [1901, ch. 90. >; 9.] 
 
 Contract Not Valid. 
 
 Section 4579. No contract with anv such association shall be
 
 764 FRATERNAL SOCIETY LAW 
 
 valid when there is a contract, agreement or understanding between 
 the member and the beneficiary that the beneficiary, or any person 
 for him, shall pay such memljer's assessments or dues, or either of 
 them. [1891, ch. 90, § 10.] 
 
 Benefit Not Liable to Attachment. 
 
 Section 4580. The money or other benefit, charity, relief or aid 
 to be paid, provided or rendered by any association authorized to 
 do business under this article, shall not be liable to attachment by 
 trustee, garnishee or other process, and shall not be seized, taken, 
 appropriated or applied by any legal or equitable process, or by 
 operation of law, to pay any debt or liability of a certificate holder, 
 or of any beneficiary named in a certificate, or any person who may 
 have any right thereunder. [1901, ch. 90, § 11.] 
 
 Must Show Mortuary Assessment Rate. 
 
 Section 4581. No association, not admitted to transact business 
 within this State prior to the taking effect of this article, shall be 
 incorporated, or given a permit, or certificate of authority to transact 
 business within this State, as provided for by this article, unless it 
 shall first be shown that the mortuary assessment rates, provided 
 for in whatever plan or business it has adopted, are not lower than is 
 indicated as necessary b.v the following mortality table : 
 
 FRATERNAL CONGRESS MORTALITY TABLE. 
 
 No. Dying. Probabilit.v of Dying. 
 
 500 .005000 
 
 501 .005035 
 
 502 .005071 
 
 503 .005107 
 505 .005153 
 507 .005201 
 510 .005259 
 513 .005318 
 517 .005388 
 
 Lge. 
 
 No. Living. 
 
 20 
 
 100,000 
 
 21 
 
 99,500 
 
 22 
 
 98.999 
 
 23 
 
 98,497 
 
 24 
 
 97,994 
 
 25 
 
 97,489 
 
 26 
 
 96,982 
 
 27 
 
 96,472 
 
 28 
 
 95.959
 
 THK ti'VATE OF NORTH DAKOTA 765 
 
 No. Dying'. Probability of Dying. 
 
 .522 .005469 
 
 527 .005552 
 
 533 .005647 
 
 540 .005753 
 
 548 .005872 
 
 557 .006004 
 
 567 .006149 
 
 578 .006307 
 
 591 .006490 
 
 606 .006698 
 
 622 .006921 
 
 640 .007171 
 
 660 .007448 
 
 683 .007766 
 
 708 .008113 
 
 734 .008480 
 
 761 .008867 
 
 790 .009287 
 
 822 .009754 
 
 857 .0102693 
 
 894 .0108238 
 
 935 .0114440 
 
 980 .0121337 
 
 1,029 .0128970 
 
 1,083 .0137511 
 
 1,140 .0146767 
 
 1.202 .0157054 
 
 1,270 .0168587 
 
 1,342 .0181200 
 
 1,418 .0194994 
 
 1,501 .0210513 
 
 1,588 .0227504 
 
 1,681 .0246434 
 
 Age. 
 
 No. Living. 
 
 29 
 
 95,442 
 
 30 
 
 94.92(1 
 
 31 
 
 94,393 
 
 32 
 
 93,8(10 
 
 33 
 
 93,320 
 
 34 
 
 92,772 
 
 35 
 
 92,215 
 
 36 
 
 91,648 
 
 37 
 
 91,070 
 
 38 
 
 90,479 
 
 39 
 
 89,873 
 
 40 
 
 89,251 
 
 41 
 
 88,611 
 
 42 
 
 87,951 
 
 43 
 
 87.268 
 
 44 
 
 86,560 
 
 45 
 
 85,826 
 
 46 
 
 85,065 
 
 47 
 
 84,275 
 
 48 
 
 83,453 
 
 49 
 
 82,596 
 
 50 
 
 81,702 
 
 51 
 
 80,767 
 
 52 
 
 79.786 
 
 53 
 
 78,757 
 
 54 
 
 77,674 
 
 55 
 
 76,534 
 
 56 
 
 75,332 
 
 57 
 
 74,062 
 
 58 
 
 72,720 
 
 59 
 
 71,302 
 
 60 
 
 69,801 
 
 61 
 
 68,213 
 
 62 
 
 66,532 
 
 63 
 
 64,754 
 
 64 
 
 62,874 
 
 1,778 .0267240 
 1,880 .0290330 
 1,985 .0315741
 
 r66 
 
 FRATERNAL SOCIETY LAW 
 
 Age. 
 
 No. Living. 
 
 65 
 
 60,889 
 
 66 
 
 58,795 
 
 67 
 
 56.589 
 
 68 
 
 54,271 
 
 69 
 
 51.841 
 
 70 
 
 49,302 
 
 71 
 
 46,657 
 
 72 
 
 43.913 
 
 73 
 
 41,081 
 
 74 
 
 38,172 
 
 75 
 
 35,203 
 
 76 
 
 32.194 
 
 77 
 
 29,168 
 
 78 
 
 26,152 
 
 79 
 
 23,175 
 
 80 
 
 20,270 
 
 81 
 
 17.471 
 
 82 
 
 14.812 
 
 83 
 
 12.327 
 
 84 
 
 10,047 
 
 85 
 
 7,997 
 
 86 
 
 6,197 
 
 87 
 
 4,658 
 
 88 
 
 3,381 
 
 89 
 
 2.358 
 
 90 
 
 1,570 
 
 91 
 
 991 
 
 92 
 
 587 
 
 93 
 
 323 
 
 94 
 
 162 
 
 95 
 
 73 
 
 96 
 
 29 
 
 97 
 
 10 
 
 98 
 
 3 
 
 [1901, eh. 90, 
 
 §12.] 
 
 No. Dying. Probability of Dying. 
 
 2,094 
 
 2,206 
 
 2,318 
 
 2.430 
 
 2.539 
 
 2.645 
 
 2,744 
 
 2.832 
 
 2,909 
 
 2.969 
 
 3,009 
 
 3,026 
 
 3,016 
 
 2,977 
 
 2,905 
 
 2,799 
 
 2,659 
 
 2,485 
 
 2,280 
 
 2.050 
 
 1,800 
 
 1,539 
 
 1,277 
 
 1,023 
 
 788 
 
 579 
 
 404 
 
 264 
 
 161 
 
 89 
 
 44 
 
 19 
 
 7 
 
 3 
 
 .0343904 
 .0375206 
 .0409620 
 .0447753 
 .0489767 
 .0536489 
 .0588122 
 .0644912 
 .0708113 
 .0777795 
 .0854757 
 .(1939027 
 .1034010 
 .1138345 
 .1253506 
 .1385163 
 .1521951 
 .1677694 
 .1849599 
 .1855707 
 .2250844 
 .2483460 
 .2741520 
 .3025732 
 .3341815 
 .3687898 
 .4076690 
 .4497445 
 .4984*520 
 .5493827 
 .6027397 
 .6551724 
 .7000000 
 1.0000000
 
 THE STATE OE NOiriH DAKOTA 767 
 
 How Governed. 
 
 Srction 4")82. Any such association, organized under the laws of 
 this State, may provide for the meetings of its legislative or govern- 
 ing body in any other State, province or territory, wherein sneh asso- 
 ■lation shall have suhnrdiiiate bodies, and all liiisiiirss transaeti'(l at 
 siieli meetings shall be valid in all respects, as if such meetings were 
 held within this State, and where the laws of any such association 
 provide for the election of its officers by votes to be case in its 
 subiii-dinate bodies, the votes so east in its subordinate bodies in any 
 other State, province or territory, shall lie valid as if cast within 
 this State. [1901, ch. 90, § 13.] 
 
 Fraudulent Statements — Penalty. 
 
 Section 4583. Any person, officer, member or examining physician, 
 who shall knowingly or willfvilly, make any false or fraudulent state- 
 ment or representation, in or with reference to any application for 
 membership, or for the purpose of obtaining any money or benefit 
 in any association transacting business under this article, shall be 
 giiii-t,\' of a misdemeanor, and upon conviction shall be punished by 
 a line of not less than one hundred dollars, nor more than five hun- 
 dred dollars, or imprisonment in the county jail for not less than 
 thirty days, nor more than one year, or both, in the discretion of the 
 court; and any person who shall willfully make a false statement of 
 any material fact or thing in a sworn statement as to the death or 
 disability of a certificate holder in any such association, for the pur- 
 pose of procuring payment of a benefit named in the certificate of 
 such holder, and any person who shall willfully make any false state- 
 ment in any verified report or declaration, under oath, required or 
 authorized by this article, shall be guilty of perjury, and shall be 
 proceeded agaiu.st and punished as provided by the statutes of this 
 State in relation to the crime of perjury. [1901. ch. 90, § 14.] 
 
 Refusing to Make Statement — Penalty. 
 
 Section 4584. Any such association refusing or neglecting to make 
 the rejiort, as provided in this article, shall be excluded from doing
 
 768 FRATERNAL SOCIETY LAW 
 
 business witliiu this State. The commissioner of insurance must, 
 within sixty days after failure to make such report, or in case any 
 such association shall exceed its powers, or shall conduct its business 
 fraudulently, or shall fail to comply with any of the provisions of 
 this article, give notice in writing to the attorney general, who shall 
 immediately commence an action against any such association to en- 
 join the same from carrying on any business. No injunction against 
 any such association shall be granted by an.y court, except on appli- 
 cation by the attorney general, at the request of the commissioner of 
 insurance, whether the State, or a member, or other party, seeks 
 relief. No association so enjoined shall have authority to continue 
 business until such report shall be made, or overt act or violations 
 complained of shall have been corrected, nor until the costs of such 
 action be paid by it, provided the court shall find that such associa- 
 tion was in default as charged, whereupon the commissioner of in- 
 surance shall reinstate such association, and not until then shall 
 such association be allowed to again do business in this State. Any 
 officer, agent or person acting for any association or subordinate 
 body thereof within this State, while such association shall be so 
 enjoined or prohibited from doing business pursuant to this article, 
 shall be deemed guilty of a misdemeanor, and on conviction thereof, 
 shall be punished by a fine not less than twenty-five dollars nor 
 more than two hundred dollars, or by imprisonment in the county 
 jail for not less than thirty days nor more than one year, or by both 
 such fine and imprisonment, in the discretion of the court. [1901, 
 ch. 90, § 15.] 
 
 Penalty for Failure to Comply. 
 
 Section 45S5. Any person who shall act within this State, as an 
 officer, agent, or otherwise, for any association, which shall have 
 failed, neglected or refused to comply with, or shall have violated 
 any of the provisions of this article, or shall have failed or neglected 
 to procure from the commissioner of insurance a proper certificate 
 of authority to transact business, as provided for by this article, shall 
 be subject to the penalty provided in the Inst preceding section for 
 the misdemeanor therein specified. [1901. cb, 90, § 16.]
 
 THE UTATE OF NORTH DAKOTA 769 
 
 Assessments Paid in Advance, Application of Same. 
 
 Where a member has obligated himself to pay the assessments that 
 may be levied, not exceeding a specified sum, and in ;iiitieip;ition of 
 assessments which are not levied within the time for which they are 
 expected to be used, he makes the payment ; of the amount so paid, 
 he has the right to request the sum to be applied on assessments 
 accruing for a subsequent period of time. 
 
 Montgomery vs. Harker. October, 1900, 9 N. D. 527; 84 N. W. 369. 
 
 Non-Contract — Duty to Tender Back Payments Made. 
 
 A contract of insurance contained the following provision "this 
 policy shall not take effect unless the first premium is actually paid 
 while the assured is in good health." The contract was made on 
 September 4th upon an application dated August 23rd, and the con- 
 tract was delivered, at the request of the applicant, to a third party, 
 on September 15th. At the request of the member, said third party 
 paid the premium of the member, on September 28th, and the mem- 
 ber died, after a sickness claimed to have been existing before Sep- 
 tiuber 15th. The premium paid on September 15th was received 
 at the main office of the society on October 12th and delivered about 
 October 15th. The society had no notice of the change in the mem- 
 ber's health. It was held that the society had no right to interpose 
 the defence of non-liability without tendering back payment of the 
 premium that was made. 
 
 Thompson vs. Travelers' Insurance Co., 11 N. D. 274; 91 N. W. 75. 
 
 Promoters Acts Not Binding on Society. 
 
 The pi'omoters of an insurance society are authorized and required 
 to take a certain number of applications before the society is 
 deemed organized, but such promoters have no authority to bind the 
 corporation by any contract before it is organized, and authorized 
 to do business,, and a contract of in.surance signed by the assumed 
 president and secretary of a corporation and delivered to the appli- 
 cant for membership before the corporation has come into existence 
 49
 
 770 FRATERNAL SOCIETY LAW 
 
 and before the officers could be elected or the corporation enter 
 into binding contracts, is not enforceable against the company after 
 it has been organized and authorized to do business. 
 
 Montgomery vs. Whitbeck, August, 1903, 12 N. D. 385; 96 N. W. 327. 
 
 Void Contracts Under Statute No Estoppel in Pais. 
 
 The doctrine of estoppel in pais does not extend so far as to 
 enable a person or corporation to do in effect what is forbidden by 
 law or what they otherwise are unable to do, and therefore a party 
 to a contract with a mutual society made in violation of the letter 
 and spirit of the statute under which a corporation is organized and 
 authorized to do business is not estopped to show its illegality for 
 the purpose of preventing a recovery upon it. 
 
 Montgomery vs. Whitbeck, August, 1903, 12 N. D. 385; 96 N. W. 327. 
 
 What Composes the Contract. 
 
 Every applicant for membership must take notice of the law of the 
 State under which the society is organized, and the statute of the 
 State and articles of incorporation and by-laws, and application for 
 a certiiicate, become parts of the contract and binding upon the 
 member. 
 
 Montgomery vs. Whitbeck, August, 1903, 12 N. D. 385; 96 N. W. 327. 
 
 Estoppel — When is Doctrine Applicable. 
 
 In order that the acceptance or retention of a premium may estop 
 an insurer from relying upon the breach of condition in the con- 
 tract, it must appear that the society had knowledge of the facts 
 constituting the breach. 
 
 Thompson vs. Travelers' Insurance Co., November, 1904, 13 N. D. 
 444; 101 N. W. 900. 
 
 Applicant, Duty of Respecting Change of Health. 
 
 Where, pending negotiation for a contract of insurance. ;i ma-
 
 THE STATE OF NORTH DAKOTA 77] 
 
 teriMl c-luiiiK'e in the condition of the applicant's health occurs, such 
 as would infiu('n(U' tlu; jndnnicnt of the insiiror in accepting the 
 applicant as a risk, the appliciint is under obligation to make dis- 
 closure of the fact. 
 
 Thompson vs. Travelers' Insurance Co., November, 1904, 13 N. D. 
 444; 101 N. W. 900. 
 
 Actual Condition and Not Apparent Health Governs. 
 
 ' Where a life insurance contract contained tliis condition: "This 
 ])olic.y shall not take effect unless the first preuiinni is actually pjiid 
 while the assured is iu good health" it was held in the absence of 
 an estoppel, that the liability of the insurer depends upon the actual, 
 and not merely the apparent good health of the member when the 
 first assessment was paid. 
 
 Thompson vs. Travelers' Insurance Co.. November. 1904, 13 N. D. 
 444; 101 N. W. 900. 
 
 Proofs of Death — Value as Evidence. 
 
 The proofs of death and a verdict of a coroner's jury showed that 
 the insured died from alcoholic poisoning, and they were admitted 
 in evidence without ob,ieetion. Held, that they had no probative 
 force because they expressed a mere opinion, based on the same 
 evidentiary facts as were before the trial jury, and the report of 
 death was shown not to have been prepared by or iu behalf of the 
 beneficiary, and hence was not to be treated as an act or admission 
 against interest. 
 
 Puis vs. Grand Lodge A. O. U. W., December, 1904, 13 N. D. 559; 
 102 N. W. 165. 
 
 Testimony of Non-Experts as to Habits of Member. 
 
 Testimony of persons who liy their association with the member 
 had an opportunity tn observe his habits, that they had seldom or 
 never seen him driiil'; nr a])pear to be under the influence of liquor.
 
 772 FRATERNAL SOCIETY LAW . 
 
 was competent to show that he was not an habitual or immoderate 
 drinker. 
 
 Puis vs. Grand Lodge A. O. U. W., December, 1904, 13 N. D. 559; 
 102 N. W. 165. 
 
 Evidence — Declarations of Member Admissable. 
 
 Voluntary and spontaneous declarations of the deceased to those 
 in attendance upon him as to the cause of his illness due to poison 
 from which he then suffered and soon died, are admissible in evi- 
 dence as ijart of the res gestae where the circumstances are such as 
 to preclude the idea of premeditation or any motive for falsifying. 
 
 Puis vs. Grand Lodge A. O. U. W., December, 1904, 13 N. D. 559; 
 102 N. W. 165. 
 
 Suicide — When Directed Verdict Proper. 
 
 Where the circumstances surrounding the death of a person all 
 point to death by suicide, and there are no facts from which a differ- 
 ent conclusion might reasonably be reached or inferred, a directed 
 verdict that death was caused by suicide will be sustained. 
 
 ' Clemens vs. Royal Neighbors of America, February. 1905, 14 N. D. 
 
 116; 103 N. W. 402. 
 
 Evidence as to Suicide — Note in Member's Hand Writing. 
 
 Where a note is found in a room where a person is found dead, and 
 death was caused by violence, and such note is in the hand writing 
 of the deceased, and gives direction as to burial and other matters, 
 such note is competent evidence on the question whether the death 
 was suicide or not. 
 
 Clemens vs. Royal Neighbors ot America, February. 1905, 14 N. D. 
 116; 103 N. \V. 402. 
 
 Suicide — Self-Destruction Defined. 
 
 The following language was contained in a certificate "if the
 
 THE STATE OF NORTH DAKOTA 773 
 
 member holding this certificate shall <lic by any means or not \vhi<-li 
 if used or done by such member while iti the possession of all natural 
 faculties unimpaired, would be self destruction," then the certificate 
 should be void. It was held that the language is equivalent to pro- 
 viding that death by self destruction, whether sane or insane, voids 
 the contract. 
 
 Clemens vs. Roya! Neighbors of America, February, 1905, 14 N. D. 
 116; 103 N. W. 402.
 
 74 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF OHIO. 
 
 CHAPTER 36. 
 
 The General Assembl.y of Ohio in 19(1-1: enacted an entire new code 
 for fraternal societies. The code became law and is as follows : 
 
 Fraternal Beneficiary Associations Defined. 
 
 Section 1. Any corporation, society, order or voluntary association 
 without capital stock, organized and carried on solely for the mutual 
 benefit of its members and their beneficiaries, and not for profit, and 
 having a lodge system with ritualistic form of work and representa- 
 tive form of government and which shall make provision for the 
 payment of death benefits, is hereby declared to be a Fraternal Bene- 
 ficiary Association. 
 
 Lodge System Defined. 
 
 tSection '2. Any association having a supreme governing or legis- 
 lative bod.v and subordinate lodges or branches liy whatever name 
 known into which members shall be elected and initiated or admitted 
 in accordance with its constitution, laws, rules, regulations, and 
 prescribed rituali.stic ceremonies, which subordinate lodges or 
 branches shall be required to hold regular or stated meetings at 
 least once in eacli month, shall lie deemed to lie o|)crating under the 
 lodge system. 
 
 Representative Form of Government Defined. 
 
 Section .3. Any association shall be deemed to liave a representa-
 
 THE STATE OF OHIO 775 
 
 tive form of government, when it shall provide in its constitution and 
 hiws for a supreme legishitive or governing body, composed of repre- 
 sentatives elected either by the members or by delegates elected 
 directly or indirectly by the members, together with such other mem- 
 bers as may be prescribed by its constitution and laws, provided that 
 the elective representatives shall constitute a majority in number 
 and have not less than a majority of the votes, nor less than the votes 
 required to amend its constitution and laws, and provided further 
 that the meetings of the supreme or governing body and the election 
 of officers shall be held as often as once in four years. 
 
 Exemptions. 
 
 Section 4. Except as herein provided, such association shall be 
 governed by this act and shall be exempt from all provisions of the 
 insurance laws of this State not only in governmental relations with 
 the State, but for every other purpose, and no law hereafter passed 
 shall apply to them, unless they be expressly designated therein. 
 
 Benefits. 
 
 Section 5. Every association transacting business under this act 
 shall provide for the payment of death benefits and may provide for 
 the payment of benefits in case of temporary or permanent physical 
 disability, either as the result of disease, accident or old age, pro- 
 vided, the period of life, at which the payment of benefits for disabil- 
 ity on account of old age shall commence shall not be under seventy 
 years. 
 
 Beneficiaries. 
 
 Section 6. The payment of death benefits shall be confined to the 
 family, heirs, relatives by blood, marriage or legal adoption, affianced 
 husband or affianced wife, or to a person or persons dependent on 
 the member. 
 
 What Persons Admitted. 
 
 Section 7. No association shall admit to beneficial membership
 
 776 FRATERNAL SOCIETY LAW 
 
 any person less than sixteen (16) nor more than sixty (60) years of 
 age, nor any person who has not been examined by a competent phy 
 sieian and whose examination has not been supervised and approved 
 as provided by the laws of the association. 
 
 Certificate. 
 
 Section 8. Every certificate issued by any association shall specify 
 the maximum amount of benefits provided thereby, and the condi- 
 tions governing the payment thereof, and shall provide that the cer- 
 tificate, the charter or articles of association, the constitution and 
 laws of the association and the application for membership and med- 
 ical examination, signed by the applicant, shall constitute the con- 
 tract between the association and the member and copies of the same 
 certified by the secretary of the association or corresponding officer 
 shall be received in evidence of the terms and conditions of the con- 
 tract; and any changes, additions or amendments to said charter or 
 articles of association, constitution or laws duly made or enacted 
 subsequent to the issuance of the benefit certificate shall bind the 
 member and his beneficiaries and shall govern and control the eon- 
 tract in all respects the same as though such changes, additions or 
 amendments had been made prior to and were in force at the time 
 of the application for membership. 
 
 Funds. 
 
 Section 9. Any association may create, maintain, disburse and 
 apply a reserve, emergenc.y or surplus fund in accordance with its 
 constitution and laws not inconsistent with the provisions of this act. 
 Unless otherwise provided in the contract, any such funds shall be 
 held, invested and disbursed for the use and benefit of the associa- 
 tion, and no member or beneficiary shall have or acquire any in- 
 dividual rights therein, or be entitled to an apportionment or the 
 surrender of anj- part thereof. The funds from which benefits shall 
 be paid and the funds from which the expenses of the association 
 shall be defrayed, shall be derived from periodical or other payments 
 by the members of the association and accretions of said funds; and 
 every contract hereafter made between such association and its
 
 THE STATE OF OHIO 777 
 
 members shall provide that if svich regular payments are insufficient 
 to i)ay all matured death and disability claims in full and to provide 
 for tlie creation and maintenance of the funds required by its consti- 
 tution and laws, extra assessments may be levied upon the members 
 to meet such deficiency. 
 
 Investment of Funds. 
 
 Section 10. In investing its funds, a domestic association transact- 
 ing business under this act shall be governed by paragraphs one, two 
 and three of Section 3598 and Sections 3599 and 3600 of the Revised 
 
 Statutes. 
 
 Distribution of Funds. 
 
 Section 11. Every provision for payment Ity members of such an 
 association, in whatever form made, shall distinctly state the pur- 
 pose of the same and the proportion thereof which may be used for 
 expenses, and no part of the money collected for mortuary or dis- 
 ability purposes and no part of the reserve, emergency or surplus 
 funds (ir the net accretions of either or any of said funds shall be 
 used for expenses. 
 
 Organization. 
 
 Section 1'2. Seven or more persons, citizens of the United States, 
 and a majority of whom are citizens of this State, who desire to form 
 a Fraternal Beneficiary Association, as defined by this act, ma.v make 
 and sign (giving their addresses) and acknowledge before some 
 officer competent to take acknowledgment of deeds, articles of asso- 
 ciation in which shall be stated : 
 
 1st. The proposed corporate name of the association, which shall 
 not so closely resemble the name of any association or insurance 
 company already transacting business in this State as to mislead the 
 public or lead to confusion. 
 
 2nd. The purpose for which it is formed, — which shall not include 
 more liberal powers than are granted b.y this act, provided that any 
 lawful social, intellectual, educational, moral or religious advantages
 
 778 FRATERNAL SOCIETY LAW 
 
 may be set foi-th among the purposes of the association, — and the 
 mode in which its corporate powers are to be exercised. 
 
 3rd. The names, residences and official titles of all the officers, 
 trustees, directors or other persons who are to have and exercise the 
 general control and management of the affairs and funds of the asso- 
 ciation for the first year or until the ensuing election at which all 
 such officers shall be elected by the supreme legislative or govern- 
 ing body. 
 
 Such articles of association and duly certified copies of the consti- 
 tution and laws, rules and regulations, and copies of all proposed 
 forms of benefit certificates, applications therefor and literature to 
 be issued by such association, and a bond in the sum of five thousand 
 dollars with sureties approved by the Superintendent of Insurance, 
 conditioned upon the return of the advance payments, as provided 
 in this section, to applicants, if the organization is not completed 
 within one j-ear, shall be filed with the Superintendent of Insurance, 
 who may require such further information as he deems necessary, 
 and if the purposes of the association conform to the requirements of 
 this act and all jsrovisions of law have been complied with, the Su- 
 perintendent of Insurance shall so certify and retain and record the 
 articles of association in a book kept for that purpose and furnish 
 the incorporators a preliminary certificate ai;thorizing said associa- 
 tion to solicit members as hereinafter provided. 
 
 Upon receipt of said certificate from the Superintendent of Insur- 
 ance said association may solicit members for the purpose of com- 
 pleting its organization and shall collect from each applicant the 
 amount of not less than one death benefit assessment or payment, in 
 accordance with its tables of rates as provided by its constitution 
 and laws, and shall issue to each such applicant a receipt for the 
 amount so collected. But no such association shall incur any liabil- 
 ity other than for such advanced payments, nor issue any benefit 
 certificate nor pa.y or allow, or offer or promise to pay or allow to 
 any person any death or disability benefit until actual bona fide 
 applications for death benefit certificates have been secured upon 
 at least five hundred lives for at least one thousand dollars each and 
 all such applicants for death benefits shall have been regularly ex- 
 amined by legallj' qualified practicing physicians and certificates of
 
 THE STATE OF OHIO 779 
 
 siieh eximiiiKitioiis liave been duly lilcil and ajipi'oved liy the eliief 
 medical examiiief ol" sueli association, nor until there shall be estab- 
 lished ten subordinate lodges or branches into whicli said five hun- 
 dred applicants have been initiated, nor until there has been sub- 
 mitted to the Superintendent of Insurance, under oath of the presi- 
 dent and secretary or corresponding officers of such association a 
 list of such applicants, giving their names, addresses, date examined, 
 date approved, date initiated, name and number of the subordinate 
 branch of vi'hich each applicant is a member, amount of benefits to 
 be granted, rate of regular payments or assessments, which shall 
 not be lower f(n' death benefits than those required l)y the National 
 Fraternal Congress table of mortality, with interest at four per cent. 
 per annum ; nor until it shall be shown to the Superintendent of In- 
 surance by the sworn statement of the treasurer or corresponding 
 officer of such association that at least five hundr(>d applicants have 
 each paid in cash at least one regular monthly payment or assess- 
 ment as herein provided per one thousand dollars^f indemnity to be 
 effected, which payments in the aggregate shall amoiint to at least 
 twenty-five hundred dollars, all of which shall be credited to the 
 mortuary or disability fund on account of such applicants and no 
 part of which may be used for expenses. 
 
 Said advanced payments shall during the period of organization be 
 held in trust for and, if the organization is not completed within one 
 year as hereinafter provided, returned to said applicants. 
 
 The Superintendent of Insurance may make such examination and 
 require such further information as he deems advi.salile and upon 
 presenttition of satisfaetiH-y evidence that the association has com- 
 plied with all the provisions of law he shall issue to sneh association 
 a certificate to that effect. Such certificate shall be prima facie evi- 
 dence of the existence of .such association at the date of such certifi- 
 cate. The Superintendent of Insurance shall cause a record of such 
 certificate to be made and a eertitied copy of such record may be 
 given in evidence with like effect as the original certificate. 
 
 No preliminary cei'tificate granted under the provisions of this 
 section shall be valid after one year from its date, or after such 
 fiu'ther period, not exceeding one year, as may be authorized by the 
 Superintendent of Insurance, upon cause shown, unless the five h\ui-
 
 780 FRATERNAL SOCIETY LAW 
 
 dred ;ii>plicaiits herein required liavc been seeured ;md tlie (trganiza- 
 tioii has been completed as lierein providrd, and the articles of asso- 
 ciation and all proceedings thereunder shall become null and void in 
 one j'ear from the date of said preliminary certificate, or at the ex- 
 piration of said extended period, unless such association shall have 
 completed its organization and commeilced business as herein jtro 
 vided. When any domestic association shall have discontinued busi- 
 ness for the period of one year, its charter shall become null and void. 
 
 Powers Retained — Reincorporation — Amendments. 
 
 Section 13. Any association now engaged in transacting business 
 in this State, may exercise, after the passage of this act, all of the 
 rights conferred thereby, and all of the rights, powers and privileges 
 now exercised or possessed by it under its charter or articles of asso- 
 ciation not inconsistent with this act. or it may be re-incorporated 
 hereunder. But no association already organized, shall be required 
 to re-incorporate hereunder, nor shall it be required to adopt the 
 rates prescribed herein for new associations, in order to avail itself 
 of the privileges of this act, and any such association may amend its 
 articles of association from time to time in the manner provided 
 therein, or in its constitution or laws, and all such amendments shall 
 be filed with the Superintendent of Insurance and shall become op- 
 erative upon such filing unless a later tibe be provided in such 
 amendments, or in its articles of association, constitution or laws. 
 
 Transfer of Membership. 
 
 Section 14. No domestic association shall transfer its membership 
 or funds to any association not aiithorized by the Superintendent of 
 Insurance to transact business in this State ; nor shall any such asso- 
 ciation tranfer its membership or fiiiids to any licensed association, 
 unless the said contract of transfer has been ajiproved by a two- 
 thirds vote of the meinbers of the supreme body of the association 
 whose membershi]) is proposed to be transferred: and by a two-thirds 
 vote of the trustees or board having charge of the association pro- 
 ])osing to take such membership.
 
 THE STATE OF OHIO 781 
 
 Eemedies. 
 
 Seetiou 1"). No member of any assoeiatidii oi'<iaiii/,e(l or operating 
 uuder the provisions of this act, or his beneficiary, or his lefial i'e|)i-e- 
 sentatives, or any other person in any way interested in any of his 
 benefits, or any person deriving legal rights from liiin, shall com- 
 mence any action or other legal proceedings in any of the courts of 
 this State, on account of his contract of insurance, against the 
 siii)reine or governing body of such association, until after he shall 
 have exhausted all the remedies |)rovi(letl in llie constitution and 
 laws of Huch association b.v appeals and otherwise, that can be deter- 
 mined within one .vear after the filing of proof of death or disability. 
 
 Annual License. 
 
 Section 16. Associations which are now authorized to transact 
 business in this State may continue such business until the first da.v of 
 April next succeeding the passage of this act, and the a\ithority of 
 sucli associati(Uis mav thereafter be renewed annuall.v. but in all 
 cases to terminate on the first da,\- of the snececding Ai)ril. For each 
 such license or renewal, the association shall ])a.'.' the su]ierintendent 
 of insurance twent.v-five dollars. A duly certified copy of such 
 license shall be prima facie evidence that the license is a Fraternal 
 Beneficiary Association within the meaning of this act. 
 
 Admission of Foreign Associations. 
 
 .Section 17. No foreign association now transacting business, 
 organized prior to the pa,ssage of this act, which is uot now author- 
 ized to transact business in this State, shall transact any business 
 therein without a license from the Superintendent of Insurance. Any 
 such association shall be entitled to a license to transact business 
 within this State upon filing with the Superintendent a duly certified 
 cop.v of its charter or articles of association ; a copy of its constitution 
 or laws, certified by its secretary or corresponding officer; a power 
 of attorne.v to the Su]ierintendent as hereinafter provided; a state- 
 ment, under oath, of its president and secretary or corresponding 
 officer, iu the form required by the Superintendent, dul.v verified by
 
 782 FRATERNAL SOCIETY LAW 
 
 an examination made by the supervising insurance official of its 
 home State of its business for the preceding year; a certificate from 
 the proper official in its home State, province or country, that the 
 association is legally organized ; a copy of its contract, which nuist 
 show that benefits are provided for by assessments upon, or other 
 payments by, persons holding similar contracts and upon furnishing 
 the Superintendent such other information as he may deem neces- 
 sar.y to a proper exhibit of its business and plan of working, and 
 upon showing that its assets are invested in accordance with the 
 laws of the State, territory, district, provijice or country where it 
 is organized, he shall issue a license to such association to do business 
 in this State until the first day of the succeeding' April, and such 
 license shall, upon compliance with the provisions of this act, be 
 renewed annually, but in all cases to terminate on the first day of 
 the succeeding April. Nothing contained in this act shall in any 
 manner be so construed as to require any such foreign association, 
 not now authorized to transact business in this State to conform its 
 rates of assessment, to those presci'ibed bj- the National Fraternal 
 Congress mortality table as a condition precedent to the securing 
 of such license or an.y renewal thereof. Any foreign association 
 hereafter organized, desiring admission to this State, shall in addi- 
 tion to the foregoing requirements of this section, show that it col- 
 lects from all of its members for death benefits, assessments not lower 
 than those retjuired b.y the National Fraternal Congress mortality 
 table, with interest at four per cent., and shall have \ho further quali- 
 fications required of domestic associations organized under this act 
 and have its assets invested as required by the laws of the State, ter- 
 ritory, district, country or province where it is organized. For each 
 such license or renewal, the association shall pay the Superintendent 
 twenty-five dollars. When the Superintendent refuses to license any 
 •association, or revokes its authority to do business in this State, he 
 shall reduce his ruling, order or decision to writing and file the same 
 in his office, and shall furnish a copy thereof, together with a state- 
 ment of his reasons, to the officers of the association, iqion request, 
 and the action of the Superintendent shall be reviewable by jiroper 
 proceedings in any court of comiietent jurisdiction within this State; 
 provided, however, thai nutliing contained in this or the preceding
 
 THE STATE OF OHIO 783 
 
 section shall be taken or construed as preventing any such associa- 
 tion from continuing in good faith all contracts made in this State 
 during the time such association was legally authorized to transact 
 business therein. 
 
 Power of Attorney and Service of Process. 
 
 Section 18. Every foreign association now transacting business in 
 til is State shall within thirty days after the passage of this act and 
 every such association hereafter applying for admission, shall before 
 being licensed, appoint in writing the Superintendent of Insurance 
 and his successors in office to be its true and lawful attorney upon 
 whom all legal process in an.y action or proceeding against it siiall 
 be served and in such writing shall agree that any lawful process 
 against it, which is served upon such attorney shall be of the same 
 legal force and validity as if served upon the association, and that 
 the authority shall continue in force so long as any liability remains 
 outstanding in this State. 
 
 Copies of such appointment, certified by said superintendent of 
 insurance, shall be deemed sufficient evidence thereof and shall be 
 admitted in evidence with the same force and effect as the original 
 thereof might be admitted. Service may only be made upon such 
 attorney, must be made in duplicate and shall be deemed sufficient 
 service upon such association, provided, however, that no such 
 service shall be valid or binding against any such association when it 
 is rci|uired thereunder to file its answer, pleading or defense in less 
 than thirty days after the date of such service. When legal process 
 against any such association is served upon said Superintendent of 
 Insurance, he shall forthwith forward by registered mail one of the 
 duplicate copies, prepaid and directed to its secretary or correspond- 
 ing officer. The plaintiff in such process so served shall pay to the 
 Superintendent of Insurance for the use of the State at the time of 
 such service a fee of two dollars, which shall be recovered by him as 
 part of the taxable costs, if he prevails in the suit. 
 
 Place of Meeting — Location of Office. 
 
 Section 19. Any domestic association may provide that the meet-
 
 784 FRATERNAL SOCIETY LAW 
 
 ings of its legislative or governing body may be held in any State, 
 district, province or territory wherein such association has sub- 
 ordinate branches, and all business transacted at such meetings shall 
 be as valid in all respects as if such meetings were held in this 
 State. But its principal office shall be located in this State. 
 
 No Personal Liability. 
 
 Section 20. Officers and members of the supreme, grand, or any 
 subordinate body of any such incorporated association shall not be 
 individuallj- liable for the payment of any disability or death benefit, 
 provided for in the laws and contracts of such association, but the 
 same shall be payable only out of the funds of such association and 
 in the manner provided by its laws. 
 
 Waiver of the Provisions of the Laws. 
 
 Section 21. The constitution and laws of the association may pro- 
 vide that no subordinate body, nor any of its officers or members 
 shall have the power or authority to waive any of the provisions of 
 the laws and constitution of the association, and the same shall be 
 binding on the association and each and every member thereof. 
 
 Separate Jurisdiction Provisions. 
 
 Section 22. All grand lodges by whatever name known, whether 
 incorporated or not, holding charters from a supreme governing 
 body, which are conducting business in this State upon the passage 
 of this act as a Fraternal Beneficiary Association upon what is 
 known as the separate jurisdiction plan, shall be treated as a federa- 
 tion of grand lodges and not as single State organizations, and all 
 reports required by the provisions of this act shall be made and 
 furnished l)y the officers of such supreme governing body and shall 
 embrace and contain the transactions, liabilities and assets of the 
 entire order. 
 
 Constitution and Laws — Amendments. 
 
 Section 23. Every association transacting business under this act
 
 THE STATE OF OHIO 735 
 
 sli.-ill lilc with the Suix'rintendent ol' Iiisuimikv ;i duly cert ilicil copy 
 of mII aiiiendinciit.s of. oi' nchlitions to, its coiistit lit ion jiiid l;i\vs within 
 ninety days after the enaetnieiit of the same. Printed eojiies of tlie 
 constitution and hiws and of additions or amendments thereto, certi- 
 fied by the secretary or corresponding olficer of the association shall 
 1)0 prima facie evidence of the legal a(lo]itioii thereof. 
 
 Annual Reports. 
 
 Section 24:. Ever.y association, transacting business in this Slate, 
 shall annually on or before the first day of March file with the Super- 
 intendent of Insurance in such f(U-in as he may rc(|iiire. a statement 
 untler oath of its president and secretarx', or corresponding otfieers 
 of its conditicni and standing on the thirty-tirst day of December 
 next preceding and of its transactions for the year ending on that 
 date, and shall, also, furnish such other information as the Superin- 
 tendent may deem necessary to a ])roper exhibit of its business and 
 plan of working. The Superintendent may at other times require 
 any fin-ther stateinent he may deem necessary to be made relating 
 to such associations. 
 
 Examination of Domestic Associations. 
 
 Section 25. The Superintendent of Insurance, or any person he 
 may appoint, shall have the power of visitation and examination 
 into the atfairs of any dcnnestic association. lie ma.\' employ assist- 
 ants for the purposes of such examination ami he. oi' any person he 
 may appoint, shall have free access to all the books, papers and 
 documents that relate to the business of the association and may 
 summon and (|ualify as witnesses umler oath and examine its officers, 
 agents and employees or other persons in relation to the affairs, 
 transactions and condition of the association. The expenses of snch 
 examination shall be paid by the State Treasurer on the warrant of 
 the State Auditor on the certificate of the Superintendent of Insur- 
 ance from the proper appropriation. 
 
 Whenever after examination the Superintendent is satisfied that 
 any domestic association has failed to comply with any provision of 
 50
 
 786 FRATERNAL SOCIETY LAW 
 
 this law or is exceeding- its powers; or is not carrying out its con- 
 tracts in good faith; or is transacting business fraudulently; or 
 whenever any domestic association, after the existence of one year 
 or more shall have a membership of less than three hundred, or 
 votes to discontinue business, the Superintendent of Insurance may 
 present the facts relating thereto to the Attorney General, who shall, 
 if he deem the circumstances warrant, commence an action in quo 
 warranto in a court of competent jurisdiction and such court shall 
 thereupon notify the officers of such association of a hearing, and, 
 unless it shall then appear that some special and good reason exists 
 why such association should not be closed, said association shall be 
 enjoined from carrying on any further business, and some person 
 shall be appointed receiver of such association and shall proceed at 
 once to take possession of the books, papers, moneys, and other 
 assets of the association and shall forthwith, under the direction of 
 the court, proceed to close the affairs of the association and to dis- 
 tribute its funds to those entitled thereto. No such proceeding shall 
 be commenced by the Attorney General against any such association 
 until after notice has been duly served on the chief execiitive officers 
 of the association and a reasonable opportunity given to it on a 
 date to be named in said notice to show cause why such proceedings 
 should not be commenced. 
 
 Application for Receiver, Etc. 
 
 Section 26. Xo application for injunction or other proceedings for 
 the dissolution of. or the appointment of a receiver for. any such 
 dome.stic association or branch thereof shall be entei'tained by any 
 covirt in this State unless the same is made by the Attorney General. 
 
 Examination of Foreign Associations. 
 
 Section 27. The Superintendent of Insurance, or any person whom 
 he may appoint, may examine an.y foreign association transacting 
 or applying for admission to transact business in this State. The 
 Superintendent may employ assistants for the {)urpose of such exam- 
 ination and he, or any person he may ajjpoint. shall have free access 
 to all the books, papers and docunu'uts that relate to the business of
 
 THE HTATE OF OHIO 787 
 
 till' jissdciat ion ami may suiniiioii and (inalil'y as witnesses under 
 oath and examine its oi'licers, aj^'ents, employes and othei' persons in 
 relation to the affairs, transactions and eondilion of the association. 
 He may in his discrelion accept in lien oT such examinatimi the 
 examination of the Insurance D<'i)artment of the .State, territory, 
 distriet, province or country where such association is organized. 
 All examinations made under the provisions of this section shall be 
 made without expense to the association examined. 
 
 If any such association or its officers refuse to submit to such ex- 
 amination or to comply with the provisions of this section relating 
 thereto, the aiithority of such association to transact business in this 
 State shall be revoked until satisfactory evidence is furnished the 
 Superintendent relating to the condition and affairs of the associa- 
 tion and during such revocation the association shall not transact 
 any business in this State. 
 
 Revocation of License. 
 
 Section "iS. When the Snperiideiident on investigation is satisfied 
 that any foreign association transacting business under this act has 
 exceeded its powers, or has failed to comjily with any j^rovision of 
 this law, or is conducting business fi'andulentl>', or is not carrying 
 out its contracts in good faith, he shall notify the president and 
 secretary, or other officers correspiuuling thereto, of his findings, and 
 state in writing the grounds of his dissatisfaction and after reason- 
 able notice require said association on a date named to show cause 
 why its license should not be revoked. If on the date named in said 
 notice such objections have not been removed to the satisfaction of 
 the Superintendent, or the association does not present good and 
 sufficient reasons why its authority to transact business in this State 
 should not at that time be revoked, he may revoke the authorit\- 
 of the association, to continue business in this State. All decisions 
 and findings of the Superintendent made under the provisions of this 
 section may be reviewed liy proper jiroceedings in any court of 
 com|)etent .iurisdiction as ])rovided in section seventeen of this act.
 
 788 FRATERNAL SOCIETY LAW 
 
 Exemption of Certain Associations. 
 
 Section 29. Nothing contained in this act shall be construed to 
 afltect or apply to grand or subordinate lodges of Masons, Odd Fel- 
 lows or Knights of Pythias (exclusive of the insurance branch i>f 
 the Supreme Lodge Knights of Pythias) or to similar orders which 
 di) not issue insurance certificates, nor to local lodges of an associa- 
 tion now doing business in this State, that provide death benefits 
 not exceeding three hundred dollars to any one person, or disability 
 benetits not exceeding three hundred dollars in any one year to any 
 one jjerson, or Ixitli. nor to any contracts of I'l-insurance of or be- 
 tween such local lodges of such association now doing business on 
 such plan in this State, nor to domestic a.ssociatioi»< which limit 
 their membership to the employes of a particular city or town, desig- ■ 
 nated firm, business house or corporation ; nor to domestic lodges, 
 orders, or associations of a purely religious, charitable and benevo- 
 lent description, which do not operate with a view to profit and 
 which do not jn-ovide for a death benefit of more than one hiuidred 
 dollars, or for disability benefits of more than one hundred and fifty 
 dollars to any one person in any one year, provided always that any 
 such domestic order or association which has more than five hiuidred 
 members, and provides for death oi' tlisability benefits and any such 
 domestic lodge, order or a.ssociation which issues to any person a cer- 
 tificate providing for the payment of benefits, shall not be exempt 
 by the provisions of this section, but shall comply with all the re- 
 quirements of this act. The Superintendent of Insurance may re- 
 quire from any association such information as will enable him to 
 determine whether such association is exempt from the provisions of 
 this act. No association which is exempt by the provision of this 
 section from the requirements of this act shall give or allow or prom- 
 ise to give oi' allow to any person any comiiensation for procuring 
 new members. 
 
 Penalties. 
 
 Section 30. Any person, officer, member or examining physician, 
 who shall knowingly or willfully make any false or fraudulent state- 
 ment or representation in oi- with I'ei'erence to any ajjplication for
 
 THE STATE OF OHIO 789 
 
 membership, or for the jiurposi^ of nbtMiniiiu- money I'nnn or heiiefit 
 ill any association transactini;' husiin'ss umler this act. shall be <juilty 
 of a inisdenieanor and upon eonvicitioii thereof, shall be piinisluHl by 
 a fine of not less than one hundred dollars nor more than five hun- 
 dred dollars, or imprisonment in the county jail for not less than 
 thirty days nor more than one year, or both, in the discretion of the 
 court, and any person who shall wilfully make a false statement of 
 any material fact or thing in a sworn statement as to the death or 
 disability of a certificate holder in any such association, for the piir- 
 I>ose of procuring iiayment of a benefit named in the certificate of 
 such holder, and any person who shall wilfully make any false state- 
 ment in any -verified report or declaration under oath required or 
 authorized by this act, shall be p-uilty of perjury, and shall be pro- 
 ceeded against and punished as provided by the statutes of this 
 State in relation to the crime of perjury. 
 
 Any person who shall solicit membership for, or in any manner 
 assist in jirocuring membership in, any association not licensed to do 
 business in this State; or who shall solicit membership for, or in any 
 manner assist in procuring membership in, any svich association not 
 authorized as herein provided, to do business as herein defined in this 
 State, shall be guilty of a misdemeanor and upon conviction thereof 
 shall be punished by a fine of not less than fifty nor more than two 
 liundred dollars. 
 
 Any association, or any officer, agent or employee thereof, neglect- 
 ing or refusing to comply with, or violating any of the provisions of 
 this act, the penalty for which neglect, refusal or violation is not 
 specified in this section, shall be fined not exceeding two himdred 
 dollars upon conviction thereof. 
 
 Construction. 
 
 Section 31. The word "association" as used in this act shall be 
 taken and construed as meaning a fraternal beneficiary corporation, 
 society, order or voluntary association as defined in Section 1. The 
 words "domestic association" shall be taken and construed as mean- 
 ing an association organized or incorporated under the laws of this 
 State. The words "foreign association" shall be taken and con-
 
 790 FRATERNAL SOCIETY LAW 
 
 strued as meaning an association organized or incorporated under 
 the laws of another territory, district, State, province or country. 
 All provisions of each section of this act except as otherwise pro- 
 vided shall be taken and construed as applying to both domestic and 
 foreign associations. 
 
 In the event of a vacancy in the ofSce of the Superintendent of 
 Insurance or in the absence or disability of that officer the Deputy 
 Superintendent of Insurance shall perform all the duties required 
 of the Superintendent by this act. 
 
 Section 32. The act of the General Assembly of the State of Ohio 
 entitled "An act regulating Fraternal Beneficiary societies, orders 
 and associations," passed April 27, 1896 (Sections 3631-11, 3631-12, 
 3631-13, 3631-14, 3631-15, 3631-16, 3631-17, 3631-18, 3631-19, 3631-20, • 
 3631-21, 3631-22 and 3631-23, Revised Statutes) and the act of the 
 General Assembly of the State of Ohio entitled "An act to amend 
 Section 3631-13 of the Revised Statutes of Ohio," passed May 12, 
 1902, be and the same are hereby repealed. 
 
 By-law of Limitations Valid. 
 
 The parties to a contract of insurance may by apt terms lawfully 
 limit the time within which suit may be brought thereon, provided 
 the period of limitation fixed be not unreasonable. 
 
 Appel vs. Cooper Ins. Co., Supreme Court of Ohio, Feb., 1907, 80 
 N. K. 955. 
 
 Limitation By-law for Bringing Suit Valid. 
 
 A clause in a contract that "no .suit or action on this policy for 
 the recovery of any claim shall be sustainable in any court of law 
 or equity until after full compliance by the insured with all the fore- 
 going requirements, nor unless commenced within six months next 
 after the fire," is unambiguous, and a suit on the policy commenced 
 more than six months after the fire will not be enforced. 
 
 Appel vs. Cooper Ins. Co., Supreme Court of Ohio, Feb., 1907, 80 
 N. E. 955.
 
 THE STATE OF OHIO 791 
 
 Conditions Precedent to Liability. 
 
 A provision in a contract that the certificate "shall not take effect 
 until after the first premium shall have been pair! to and accepted 
 by the company or authorzed agent," is valid, and the payment of 
 such premium, unless waived, is necessary to put the contract in 
 force. 
 
 State Life Ins. Co. vs. Harvey, March, 1905, 72 Ohio, St. 174. 
 
 Suicide By-law Reasonable. 
 
 A by-law adopted by a society which provides that a certificate 
 issued to a member shall be void and all benefits thereunder for- 
 feited in case the insured shall die by suicide, felonious or other- 
 wise, sane or insane, is consistent with the purposes of the society 
 and with its corporate charter, and imposes a reasonable condition 
 upon which the parties to the contract may agree. 
 
 Tisch vs. Protected Home Circle, March, 1905, 72 Ohio St. 233. 
 
 After-enacted Suicide Law Valid. 
 
 An after-enacted suicide by-law is valid and violates no vested 
 rights of beneficiaries under certificates theretofore issued. 
 
 Tisch vs. Protected Home Circle, March, 1905, 72 Ohio St. 233. 
 
 Foreign Society's Right to State License. 
 
 Where a society is organized in another State, province or terri- 
 tory, under laws which provide for such societj-'s operating within 
 the description of a fraternal beneficiary society, as set forth in the 
 Ohio statutes, is shown by certificate to be authorized to do business 
 in that State or country, and is not now doing business within this 
 State, such society has a right to be admitted to do business within 
 this State when it shall have filed Avith the Superintendent of Insur- 
 ance a duly certified copy of its charter and articles of incorporation 
 and copy of its constitution and laws, properly certified, and an 
 appointment of the superintendent of insurance as the person upon
 
 792 FRATERNAL SOCIETY LAW 
 
 whom process may be served — under such circumstances it is man- 
 datory, under the Ohio statute, upon the Superintendent of Insur- 
 ance to issue to the society a certificate authorizing it to do business 
 within the State of Ohio. 
 
 The State ex rel. Great Camp, Knights of Modern Maccabees vs. 
 Vorys, Supt. of Ins., Oct., 1903, 69 Ohio St. 56. 
 
 General Insurance Laws Inapplicable. 
 
 The insurance laws of the State are not applicable to fraternal 
 beneficiary societies, "so that fraternal beneficiary associations have 
 a law unto themselves, and neither the insurance laws nor the con- 
 struction thereof are applicable to them unless expressly made so." 
 
 The State ex rel. Great Camp, Knights of Modern Maccabees va. 
 Vorys, Supt. of Ins., Oct., 1903, 69 Ohio St. 56. 
 
 Members Signing of Laws not Essential. 
 
 In order to defeat a suit upon a contract to recover assessments 
 made by the society on the contract, the assured cannot deny his lia- 
 bility for the sole reason that he did not sign the constitution and 
 laws which provided for the levying of assessments. 
 
 Richards, Receiver, etc. vs. Louis Lipp Co., Jan., 1904, 69 Ohio St. 359. 
 
 Conditions Precedent to Liability. 
 
 Where a contract of insurance has a condition to the effect that 
 the company assumes no obligation unless the insured is at the 
 date of the policy alive and in sound health, and there is an issue 
 as to whether at that time the insured was in sound health, the com- 
 pany is entitled upon the trial to have the jury instructed uncon- 
 ditionally to find for tlie company in case the.v find that the insured 
 was not in sound healtli at the date of the policy. 
 
 Metropolitan Life Ins. Co. vs. Howie, June, 1903, 68 Ohio St. 614.
 
 THE STATE OF OHIO 793 
 
 Evidence — Confidential Relations Between Physician and Patient. 
 
 It is not coiiiiietent to prove by a physician the communications 
 made to him by liis i)atient in that relation, but such physician may 
 testify as to facts which are within his knowledge independent of 
 such communications, and he may testify to the condition and 
 state of health of his patient as well as the treatment prescribed 
 by him. 
 
 Metropolitan Life Ins. Co. vs. Howie, June, 1903, 68 Ohio St. 614. 
 
 Exemption from Debt — Statute Unconstitutional. 
 
 The following provision of the Ohio law was declared nnconstitu- 
 tional : 
 
 "The money or other benefit, charity, relief or aid to be paid, 
 provided or rendered by any association authorized to do business 
 under this act shall not be liable to attachment by any trustee, gar- 
 nishee or other process, and shiill not be seized, taken, appropriated 
 or applied by any legal or equitable process, or by process of law, 
 to pay any debt or liability of a certificate holder or of any bene- 
 ficiary named in the certificate, or any person Avho may have any 
 rights thereunder." 
 
 The question arose in a suit involving a Royal Arcanum certificate. 
 The court said : 
 
 "No such exemption is provided with respect to any ordinary 
 life policy, nor with respect to a certificate of an association doing 
 business on a weekly payment or industrial plan, although it must 
 be manifest that the characteristics nnd condition of the people who 
 will be benefited by one contract in no essential differ from those 
 who will be benefited by the other, and the same is true when com- 
 parison is made with other benevolent associations authorized by 
 our statutes. It follows that the provision for exemiition is an 
 attempt to make arbitrary elassificiition by selecting a few of a 
 class and conferring upon them privileges and benefits not conferred 
 upon others coming within the same class, and is therefore invalid. 
 The vice lying at the bottom of the whole scheme is that the exemp- 
 tion is made to depend not upon the condition or characteristics of
 
 794 FRATERNAL SOCIETY LAW 
 
 the recipient of the benefit, but upon the source from which the 
 benefit is to be derived. It discriminates unequally in favor of one 
 set of beneficiaries as compared with persons receiving money from 
 other sources, thus favoring some beneficiaries as compared with 
 other like beneficiaries, and at the same time and by the same 
 provision denying that relief to some creditors which by other en- 
 actments is accorded to others of like kind. * * * it follows 
 inevitabley that the section under review not only discriminates 
 unreasonably between individuals of the same class, but that it also 
 unreasonably discriminates between corporations of the same class. 
 It afl^ords to these fraternal orders the privilege of offering to the 
 public an insurance contract the proceeds of which, no matter what 
 the amount, are wholly exempt from the debts of the member or 
 beneficiary, while no such privilege is accorded to any other organ- 
 ization having authority to make an insurance contract." 
 
 Williams vs. Donough, Feb., 1902, 65 Ohio St. 499. 
 
 Beneficiary, Dependents. 
 
 A society authorized to issue certificates to be paid to members 
 of the family or dependents of the member, is not authorized to 
 issue a certificate providing for payment to one not dependent 
 upon the deceased member, and a petition in an action against a 
 society brought to recover upon a certificate in which the plaintiff 
 is described simply as a brother of the deceased member, and con- 
 taining no allegation showing that such brother was in any way 
 dependent upon the member, is bad on demurrer and will not sup- 
 port a judgment. 
 
 Supreme Council, Cath. Benev. Legion vs. McGinness, Jan.. 1899, 
 59 Ohio St. 531. 
 
 Beneficiary, Dependents Right of. 
 
 Where a society has issued a certificate to a member payable upon 
 his decease to his wife, and afterwards, acting upon a mistaken 
 belief induee<l by the representations of the member that the cer-
 
 THE HTATE OF OHIO 795 
 
 tificate has been lust, issues ami ddiN'crs jiimlluT In lln' nicniiicr for 
 a liki' aiiKiiiiit. payalilr hvo-tliirds to tlu' wilV and oiit'-third to a 
 brother of tlie ineiiiber, but not (le|)en(lent, such second certificate 
 Avill l)e heki invalid and the first one given full force and effect. 
 
 Supreme Council, Cath. Benev. Legion vs, McGinness, ,Ian., 1899, 
 59 Ohio St. 531. 
 
 Beneficiary, Change of. 
 
 Where a certificate has been issued to a member payable to his 
 wife in accordance with his application, the member cannot ehang-e 
 the beneficiary except in the mode pointed out by the by-laws; and 
 wfiere the by-laws provided that a ehanore of beneficiary can be 
 made only by surrender and issue of a new certificate, such change 
 cannot be made by will. 
 
 Charch vs. Charcli, Jan., 1S9S, 57 Ohio St. 561.
 
 796 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF OKLAHOMA 
 
 CHAPTER 37. 
 
 (Act of the Legislative Assembly of the Territory of Oklahoma, 
 approved Jlarch 8, 1901.) 
 
 Section 3236. § 69. A fraternal beneficiary association is hereby 
 declared to be a corporation, society or voluntary association, formed 
 or organized and carried on for the sole benefit of its members and 
 their beneficiaries, and not for profit. Each association shall have a 
 lodge system, with ritnalistic form of work and representative form 
 of government, and shall make provision for the payment of benefits 
 in case of death, and may make provisions for the payment of bene- 
 fits in case of sickness temporary or permanent physical disability, 
 either as a result of disease, accident or old age, provided the period 
 of life at which the payment of physical disability benefits on account 
 of old age commenced shall not be under seventy (70) years. All sub- 
 ject to the compliance of its members with its constitution and by- 
 laws. The fund from which the expenses of such an association shall 
 be defrayed, shall be derived from assessments or dues collected from 
 its members. Payment of death benefits shall be to the families, heirs, 
 blood relatives, affianced husband or affianced wife of, or to persons 
 dependent upon the member. Such association shall be governed by 
 this act and shall be exempt from the provisions of the insurance 
 laws of this Territory, except as provided in this act, and no law 
 hereafter j)assed shall ai)ply t" them iinless they be expressly desig- 
 nated therein. Any sucii fraternal beneficiary association may 
 create, maintain, disburse and ap])ly a reserve or emergency fund 
 in accordance with its conslitution or liy-laws. The term "fraternal
 
 77//-' STATK OF OKLAHOMA 797 
 
 hciiciiciary association" wlicrcvri' used in 1liis iict, or in any other 
 law of this Tcrritoi'v iicreal'tiM- enacted, shall be const imumI to mean 
 any association sucli as is detined in this section. 
 
 Section '■V2'M. S '"'"• All such associations coniini;' within the de- 
 scription as set fortli in section 'M'M't, organized ninier the laws of 
 this Territoiy, or the laws of any other State, jjruvince or territory, 
 and now doing business within this Territory-, may continue such 
 business provided they hereafter comply with the provisions of this 
 act regulating annual reports to the Superintendent of Insurance 
 and the designation of the Superintendent of Insurance as the person 
 upon whom process may be served as hereinafter provided. 
 
 Section 3238. § 71. Any such fraternal beneficiary association, 
 within the meaning and description as set forth in section 3236. or- 
 ganized under the laws of any other State, Territory or ])rovince, 
 and not now doing hnsiness within this Territory when it shall be 
 .shown to the satisfaction of the Superintendent of Insurance of this 
 Tei'ritory that its charter or articles of a.ssociation. antl its by-laws 
 provide for the conduct of its business in accordance with the pro- 
 visions of this act; that has at the tinu' it apjilies for admission to 
 (Id business within this Territory a sufficient number of members so 
 that one assessment upon such members, the amount of which assess- 
 ment or other stated payment shall not exceed the amount previously 
 provided by the laws of the order, shall be sufficient to ]ni>- in full 
 the largest death loss the association might be called upon, under 
 its laws, to pay, and that it has paid in full all just benefit claims 
 of whatever nature incurred by it within the two yeai's last past. 
 Provided, That before any such fraternal beneficiary association 
 shall be authorized to do business in this Territory it shall file with 
 the Superintendent of Insurance thereof a duly certified copy of its 
 constitution or by-laws, or both, if it has both, certified to under oath 
 by its secretary or similar officer and its chief executive officer, 
 together with the appointment of the Superintendent of Insurance of 
 this Territory as a person upon whom all legal process may be served 
 as hereinafter provided; and it must also be shown that the said 
 association is dul.v authorized to do business in the State, Territor\' 
 or province in which it is incorporated or organized, in case the laws 
 of such State, Territory or province provide for such authorif.ation ;
 
 798 FRATERNAL, SOCIETY LAW 
 
 but in ease the laws of such State, Territory or province do not pro- 
 vide for any such formal authorization for such association to do 
 business, then such association shall be shown to be conducting its 
 business in accordance with the provisions of this act ; and to satisfy 
 himelf that such is the fact, the Superintendent of Insurance of this 
 Territory may personally, or by some person desig'uatcd l)y him, ex- 
 amine into the condition, affairs, character and business methods, 
 accounts, liooks and investments of such association at its home office, 
 which examination shall be at the expen.se of such association ; but 
 such expense shall not exceed ten dollars ($10.00) per diem in addi- 
 tion to the reasonable traveling expenses of the person making such 
 examination ; Provided, That the Superintendent of Insurance may 
 accept the examination made by the insurance department of the 
 State, Territory or province in which the home office of said asso- 
 ciation is located, in his sound discretion. Every condition of this 
 section shall be considered a condition precedent for such an asso- 
 ciation doing business in this Territory. 
 
 Section 3239. § 72. Every such association doing business with- 
 in this Territory shall, on or before the first day of February of each 
 year, make and file with the Superintendent of Insurance of this 
 Territory a report and statement of its affairs, business and opera- 
 tions, during the year ending on the 31st day of December im- 
 mediately preceding, together with a certified co]\v of its laws, rules 
 and regulations; Provided, That no such association organized under 
 the laws of this Territory prior to the passage of this act shall be 
 required to make such report until it is two years old. If such 
 association is found, upon examination of its report and laws, to be 
 doing business in accordance with the provisions of this act, the 
 Superintendent of Insurance shall issue it a license to do business 
 within this Territory for one year, for which license he shall charge 
 and receive the sum of five dollars ($5.00). Such annual reports, 
 which shall be in lieu of all other reports required by the Superin- 
 tendent of Insurance, shall be made on blank forms furnished by said 
 Superintendent of Insurance, or may be in pamphlet form, and shall 
 be verified under oath b^'' the duly authorized officers of such asso- 
 ciation. The substance of this report shall be publi.shed in the an- 
 nvial report of the Territorial Superintendent of Insurance, in a part
 
 THE STATE OF OKLAHOMA 799 
 
 to lie entitled "Prjitcriuil Beneficiary Associations." and shall cou- 
 taiii answers to the followiiiii' questions, and any other iiil'onnation 
 the Siiper-iiitendent of Insurance may require: 
 
 Fii'st : Xuinliei' 111' (certificates issued during' the year nr nuiu'ier 
 of mendjers admitted. 
 
 Second : Amount of indemnity effected thereby. 
 
 Third: Number of losses or benefit liabilities incurred. 
 
 Fiiurth: Number of losses or benefit liabilities paid. 
 
 l^'il'tli: The amount received from each assessment during the 
 year. 
 
 Sixth : Total amount paid members, beneficiaries, legal represen- 
 tatives or heirs. 
 
 Seventh: Number and kind of claims for -which assessments have 
 been made. 
 
 Eighth : Number and kind of claims compromised or resisted, and 
 a brief statement of reasons therefor. 
 
 Ninth : Does the association charge annual or other periodical 
 dues or admission fees ? 
 
 Tenth : How much on each one thoiTsand dollars annually or per 
 capita, as the case may be? 
 
 Eleventh : Total amount received, from what source, and the 
 disposition thereof. 
 
 Twelfth : Total amount of salaries paid to officers. 
 
 Thirteenth : Does the association guarantee in its certificate, 
 fixed amounts to be jiaid. regardless of the amounts realized from 
 assessments, dues, admission fees and donations? 
 
 Fourteenth: If so, state amount guaranteed, and the security for 
 such guaranty. 
 
 Fifteenth: Has the association a reserve fund? 
 
 Sixteenth : If so, how is it created, what is its purpose, its 
 amount, and how is it invested? 
 
 Seventeenth: Has the association more than one class? 
 
 Eighteenth : If so, how many and the amount of the indemnity 
 in each? 
 
 Nineteenth : Number of members in each class ? 
 
 Twentieth: If it is a voluntary assoeiation. so state and give dafp 
 of its organization.
 
 800 FRATERNAL SOCIETY LAW 
 
 Twenty-first : If organized under the laws of this Territory under 
 what law and at what time, giving year and date of the approval of 
 the act. 
 
 Twenty-second : If organized under the laws of any other State, 
 Territory or province, state such facts and the date of organization, 
 with complete reference and designation of the law or laws under 
 which organized. 
 
 Twenty-third : Number of certificates of beneficiary membership 
 lapsed during the year. 
 
 Twenty -fourth : Number in force at the beginning and end of the 
 year; if more than one class, the number in each class. 
 
 Twenty-fifth : Names and address of its president, secretary and 
 treasurer, or of its corresponding officers. 
 
 The Superintendent of Insurance is authorized and empowered 
 to address an.y additional inquiries to any such association in relation 
 to its bi;siness or condition, or any other nwtter connected with its 
 transactions relative to the business contemplated by this act, and 
 such officers of such associations as the Superintendent of Insurance 
 may require shall promptly reply in writing, under oath, to all such 
 inquiries. 
 
 Section 32-10. § 73. Every such association now doing or here- 
 after admitted to do business within this Territory, and not having 
 its principal office within this Territory, and not being organized 
 under the laws of this Territorv, shall appoint in writing the Super- 
 intendent of Insurance and his successor in office to be its true and 
 lawful attorney, upon whom all legal process in any action or proceed- 
 ing against it must be served, and in such writing shall agree that 
 any lawful process against it which is served on said Superintendent 
 of Insurance shall be of the same legal force and validity as if served 
 upon said association, and that the authority shall remain in force 
 so long as any liability against said association shall remain out- 
 standing with this Territory. Copies of such certificate, certified by 
 said Sui>erintendent of Insurance, shall be deemed sufficient evidence 
 thereof, and shall be admitted in evidence with the same force and 
 effect as the original thereof might be admitted. Service u]ion said 
 Superintendent of Insurance shall be deemed sufficient service upon 
 such association ; Provided. That such process shall not be returnable
 
 THE STATE OF OKLAHOMA 801 
 
 until thirty days after such service. When h'gal process against 
 any such association is served upon the Superintendent of Insurance, 
 he shall immediately notify the association of such service by regis- 
 tered letter, i)repaid, and directed to its secretary or its correspond- 
 ing ofScer, and shall within two days after sucii service forward in the 
 same manner a copy of the process served upon him to such officer. 
 The plaintiff in the action upon which such process was issued shall 
 pay to the Superintendent of Insurance at the time of such service a 
 fee of three dollars ($3.00), which shall be recovered by saitl plain- 
 tiff as a part of his taxable costs, if he prevail in his said action. The 
 Superintenclent of Insurance shall keep a record of all processes 
 served upon him, which record shall show the day and hour when 
 such service was made, and when the notice hereinbefore provided 
 for was given to the officers of such association. In all suits in this 
 Territory against any such association organized under the laws of 
 this Territory, and having its principal officer in this Territory, ser- 
 vice shall be had upon the chief executive officer or the secretary, or 
 corresponding officer of such association. 
 
 Section 3241. § 74. The Superintendent of Insurance, upon the 
 application of auA' fraternal beneficiary association having the right 
 to do business in this Territory, as provided for in this act, shall 
 issue, to such association a permit in writing authorizing such asso- 
 ciation to do business within this Territory for one year from the 
 date thereof, for which permit or certificate and all proceedings in 
 connection therewith such association shall pay to the said Superin- 
 tendent of Insurance a fee of five dollars ($;i.OO.) 
 
 Section 3242. § 75. The Superintendent of Insurance, at the re- 
 quest of any such fraternal beneficiary association doing business 
 under the provisions of this act in this Territory, shall make an ex- 
 amination of the books and accounts of such association, and shall 
 furnish a certificate of the results of such examination, showing all 
 such association's assets and how invested, the condition of its busi- 
 ness, its methods and such other particulars as may be deemed 
 necessary to show the character and condition of the financial affairs 
 of such association; and such association, shall at all times be sub- 
 ject to such examination without any request being made by them. 
 The necessary expense of the examination shall be paid by said asso- 
 51
 
 802 FRATERNAL SOCIETY LAW 
 
 elation, but it shall not exceed ten dollars ($10.00) per day and the 
 necessary traveling expenses of the person making the examination. 
 Section 3243. § 76. Any number of persons, being citizens of 
 the United States, not less than seven, five of whom shall also be 
 citizens and residents of the Territory of Oklahoma, hereafter, de- 
 sii'ing to form a fraternal beneficiary association, may associate 
 themselves together and eifect such organization in the manner 
 provided in this section, and not otherwise. Articles of association 
 shall be prepared in triplicate in the manner hereinafter provided, 
 and submitted to the Superintendent of Insurance for his approval ; 
 and they shall not be approved by said Superintendent of Insur- 
 ance if it shall appear that the name selected is the same or so 
 near the same as that of any other association or corporation then 
 doing business within this Territory as to cause confusion in the 
 minds of the people, or to interfere with the rights of such exist- 
 ing association or corporation, or that the objects of the association 
 are not in accordance with the provisions of this Act. or of any 
 other law or laws of this Territory applicable to such associations 
 or that the said articles of association do not conform to the pro- 
 visions of this Act in every particular; but in case none of these 
 ob.jections are found to exist, the said Superintendent of Insurance 
 shall indorse on the back of each copy of said articles of association 
 the fact that he has approved them, together with the date of such 
 action, all of which shall be signed by him with his official title ; Pro- 
 vided, however. That before the said Superintendent shall approve 
 any such articles of association it shall be shown to him by the sworn 
 statement of one or more of the proposed incorporators that at least 
 three hundred persons have signed, in good faith, applications for 
 beneficiary membership in such proposed association, and paid to 
 the proper one of such proposed incorporators the amount of one 
 death or mortuary collection, by whatever name it may be called, 
 and that such money is deposited with some bank or trust company, 
 and is held for the special purpose named. For this examination 
 and approval of the articles of association herein mentioned, the 
 Superintendent of Insurance shall charge and receive a fee of five 
 dollars ($5.00). One copy of such articles of association, approved 
 as hereinbefore provided, shall be filed with the Secretary of this
 
 THE STATE OF OKLAHOMA 803 
 
 Territory, whereupon the said Secretary shall issue his certificate 
 of incorporation, and porniaiicutly attach the same by the seal of 
 the Territory to aiiotlier copy of the said articles of association, 
 approved as hereinbefore provided, which coi)y shall be delivered 
 to the inc()ri)orators of such association. The third approved copy 
 of such articles of incorporation shall be filed with the Superintend- 
 ent of Insurance. The articles of association hereinbefore mentioned 
 shall be substantially in the following form : 
 
 First : The preamble shall name the incorporators and give the 
 residence of each and the fact of their citizenship as herein required, 
 and express their desire to incorporate a fraternal beneficiary asso- 
 ciation in accordance with and under the [irovisions of this Act, 
 (designating this Act so as to positivel.y identify it). 
 
 Second: Article I shall give the name of the association. 
 
 Third : Article II shall state the location of the principal office 
 of the association. 
 
 Fourth : Article III shall state the objects of the association and 
 the plans by which these objects are to be carried out, including 
 the extreme limit of age of persons to whom benefit certificates 
 may be issued, which limit of age shall not exceed fifty-five (55) 
 years, and it shall also state the fact that all beneficiary members 
 will be required to pass a medical examination such as is usually re- 
 quired by fraternal beneficiary associations. 
 
 Fifth: Article IV shall state the names of the persons selected 
 to manage the business or prudential affairs of the association for 
 the first term, for which such persons are to be elected, and the 
 manner of electing their successors, the title of all officers and the 
 name of such officers, with their residences, if they have been se- 
 lected. 
 
 Sixth: Article V shall contain a description of the corporate seal 
 adopted by such association, together with an impress of the same. 
 These articles of association shall be signed and acknowledged by 
 each of the incorporators. 
 
 Section 3244. § 77. Any such fraternal beneficiary association 
 that is now doing business in this Territory as a corporation de jure 
 or a corporation de facto, by virtue of any law of this Territory 
 authorizing the incorporation of such associations, may re-incor-
 
 804 FRATERNAL SOCIETY LAW 
 
 porate under the provisions of this Act and receive from the 
 Secretary of the Territory a cei-tificate of re-incorporation. Any 
 such association desiring to re-incorporate under this Act, shall, by 
 its supreme governing body or committee having power to change 
 its laws, adopt a resolution embodying new articles of association 
 prepared to conform to Section 3243, which resolution must be 
 copied in triplicate, signed by the executive officer of the body 
 adopting it, or by the chief executive ofificer of the association; 
 and its correctness and the fact that it was adopted in accordance 
 with the provisions of this section must be' certified to under oath 
 by the secretarj- or similar officer of such association. The afore- 
 said triplicate copies of such resolution shall then be submitted to 
 the Superintendent of Insurance for his approval," the same as if 
 they were original articles of association, as provided in section 
 3243, and one copy shall be filed with said Superintendent of In- 
 surance and one copy with the Secretary of the Territory in the 
 manner provided in Section 3243. for the iiK'or])(iration of new asso- 
 ciations; and when this is done, the Secretary shall issue, in the 
 manner provided in Section 3243. his certificate of re-incorporation; 
 and thereafter such association shall be deemed to be re-incorporated 
 under the provisions of this Act. 
 
 Section 3245. § 78. Evei-y such fraternal beneficiary association, 
 from the time it files a copy of its articles of association for record 
 in the office of the Superintendeiat of Insurance and files a copy of 
 said articles of association with the Secretary of the Territory, and 
 receives its certificate of incorporation, as provided either in section 
 3243 and section 3244, shall be deemed and held to be a corporation 
 or body politic in perpetuity and shall have and possess all rights, 
 powers and privileges given to corjiorations liy common law; it 
 may sue and be sued in any court of competent jurisdiction ; it may 
 borrow money and secure the payment of the same by notes and 
 mortgages, bonds or deeds of trust upon its personal or real prop- 
 erty ; it may rent, lease, purchase, hold, sell, and convey such real 
 estate and personal property as may be necessary and proper for 
 the ]mrpose of erecting buildings for the use of the association, and 
 for other jiroixT ol).iects of sueli association, or which may be taken 
 for ih'bts (liu> to tli(> association: and i1 iiia\' in general do all tliiiisrs
 
 ( 
 
 THE STATE OF OKLAHOMA 805 
 
 not. prohibited by law that arc necessary and proper for Ihe ceoiiom- 
 ical and proper conduct of its l)usiness. 
 
 Section 3"246. § 79. Sueli association shall not employ paid agents 
 in soliciting' or ])roeiiriiii>' nicnibei's, except in the organization or 
 building up of subordiiuite bodies or granting members induce- 
 ments to procure new members. 
 
 Section 3247. § 80. No contract between a member and his bene- 
 ficiary that the beneficiary or other person for him shall pay such 
 member's assessments and dues or cither of them, shall give the 
 beneficiary or other person a vested right in the benefit certificate 
 or in the benefit or deprive the member of the right to change the 
 name of the beneficiary or revoke the certificate, if any, issued by 
 such association; Provided, That such change or revocation shall be 
 made by written or printed notice to the association in the manner 
 and form provided for by its by-laws. 
 
 Section 3248. § 81. The money or other benefit, charity, relief 
 or aid to be paid, provided or rendered by any association authorized 
 to do business under this Act, shall not be liable to attachment, 
 by trustee, garnishee or other process, and shall not be seized, taken, 
 appropriated or applied by any legal or equitable process, or by 
 operation of law, to ])ay any debt or liability of the certificate holder, 
 or of any beneficiary named in any certificate, or any person who 
 may have any right thereunder. 
 
 Section 3249. § 82. No association not admitted to transact busi- 
 ness within this Territory prior to the passage of this Act shall be 
 incoriiorated or given a permit or certificate of authority to trans- 
 act business within this Territory, as provided for by this Act, 
 unless it shall first show that the mortuary assessment rates, pro- 
 vided for in whatever plan of business it has adopted, are not lower 
 than is indicated as necessary by the following mortality table : 
 
 FRATERNAL C0NC4RESS MORTALITY TABLE. 
 
 Age. 
 
 No. Living. 
 
 No. 
 
 Dying. 
 
 Probability o 
 
 20 
 
 100,000 
 
 
 500 
 
 .005000 
 
 21 
 
 99.500 
 
 
 501 
 
 .005035 
 
 22 
 
 98,999 
 
 
 502 
 
 .005071 
 
 23 
 
 98,497 
 
 
 503 
 
 .005107
 
 806 
 
 FRATERNAL SOCIETY LAW 
 
 Age; 
 
 No. Liviug. 
 
 No. D.viiig. 
 
 Probability of Dying 
 
 24 
 
 97.994 
 
 505 
 
 .005153 
 
 25 
 
 97,489 
 
 507 
 
 .005201 
 
 26 
 
 96,982 
 
 510 
 
 .005259 
 
 27 
 
 96,472 
 
 513 
 
 .005318 
 
 28 
 
 95,959 
 
 517 
 
 .005388 
 
 29 
 
 95,442 
 
 522 
 
 .005469 
 
 30 
 
 94,920 
 
 527 
 
 .005647 
 
 31 
 
 94.393 
 
 533 
 
 .005647 
 
 32 
 
 93,860 
 
 540 
 
 .005753 
 
 33 
 
 93,320 
 
 548 
 
 .005872 
 
 3i 
 
 92.772 
 
 557 
 
 .006004 
 
 35 
 
 92,215 
 
 567 
 
 .006149 
 
 36 
 
 91.648 
 
 578 
 
 .006307 
 
 37 
 
 91,070 
 
 591 
 
 .006490 
 
 38 
 
 90.479 
 
 606 
 
 .006698 
 
 39 
 
 89,873 
 
 622 
 
 .006921 
 
 40 
 
 89,251 
 
 640 
 
 .007171 
 
 41 
 
 88.611 
 
 660 
 
 .007448 
 
 42 
 
 87.951 
 
 683 
 
 .007766 
 
 43 
 
 87.268 
 
 708 
 
 .008113 
 
 44 
 
 86.560 
 
 734 
 
 .008480 
 
 45 
 
 85.826 
 
 761 
 
 ,008867 
 
 46 
 
 85.065 
 
 790 
 
 .009287 
 
 47 
 
 84.275 
 
 822 
 
 .009754 
 
 48 
 
 83,453 
 
 857 
 
 .010269 
 
 49 
 
 82.596 
 
 894 
 
 .0108238 
 
 50 
 
 81,702 
 
 935 
 
 .0114440 
 
 51 
 
 80.767 
 
 980 
 
 .0121337 
 
 52 
 
 79,786 
 
 029 
 
 .0128970 
 
 53 
 
 78,757 
 
 1,083 
 
 .0137511 
 
 54 
 
 77.674 
 
 1,140 
 
 .0146767 
 
 55 
 
 76.534 
 
 1,202 
 
 .0157054 
 
 56 
 
 75.332 
 
 1,27(1 
 
 .0168587 
 
 57 
 
 74,062 ' 
 
 1,342 
 
 .0181200 
 
 58 
 
 72,720 
 
 1,418 
 
 .0194994 
 
 59 
 
 71,302 
 
 1,501 
 
 .0210513
 
 THE STATE OF OKLAHOMA 807 
 
 Age. 
 
 No. Living. 
 
 No. Dying'. I 
 
 'robability oi 
 
 60 
 
 , 69,801 
 
 1,588 
 
 .0227504 
 
 61 
 
 68,213 
 
 1,681 
 
 .0246434 
 
 62 
 
 66,532 
 
 1,778 
 
 .0267240 
 
 63 
 
 64,754 
 
 1,880 
 
 .0290330 
 
 64 
 
 62,874 
 
 1,985 
 
 .0315711 
 
 65 
 
 60,889 
 
 2,094 
 
 .0343904 
 
 66 
 
 58,795 
 
 2,206 
 
 .0375206 
 
 67 
 
 56,589 
 
 2,318 
 
 .0409620 
 
 68 
 
 54,271 
 
 2,430 
 
 .0447753 
 
 69 
 
 51,841 
 
 2,539 
 
 .0489767 
 
 70 
 
 49,302 
 
 2,645 
 
 .0536489 
 
 71 
 
 46.657 
 
 2,744 
 
 .0588122 
 
 72 
 
 43,913 
 
 2,832 
 
 .0644912 
 
 73 
 
 41,081 
 
 2,909 
 
 .0708113 
 
 74 
 
 38,172 
 
 2,969 
 
 .0777795 
 
 75 
 
 35,203 
 
 3,009 
 
 .0854757 
 
 76 
 
 32,194 
 
 3,026 
 
 .0939927 
 
 77 
 
 29,168 
 
 3,016 
 
 .1034010 
 
 78 
 
 26,152 
 
 2,977 
 
 .1138345 
 
 79 
 
 23,175 
 
 2,905 
 
 .1253506 
 
 80 
 
 20,270 
 
 2,799 
 
 .1385163 
 
 81 
 
 17,471 
 
 2,659 
 
 .1521951 
 
 82 
 
 14.812 
 
 2,485 
 
 .1677694 
 
 83 
 
 12,327 
 
 2,280 
 
 .1849599 
 
 84 
 
 10.047 
 
 2,050 
 
 .1855707 
 
 85 
 
 7,997 
 
 1,800 
 
 .2250844 
 
 86 
 
 . 6,197 
 
 1.539 
 
 .2483460 
 
 87 
 
 4,658 
 
 1,277 
 
 .2741520 
 
 88 
 
 ■ 3,381 
 
 1,023 
 
 .3025732 
 
 89 
 
 2,358 
 
 788 
 
 33.41815 
 
 90 
 
 1,570 
 
 579 
 
 .3687898 
 
 91 
 
 991 
 
 404 
 
 .4076690 
 
 92 
 
 587 
 
 264 
 
 .4497445 
 
 93 
 
 323 
 
 161 
 
 ;4984520 
 
 94 
 
 162 
 
 89 
 
 .5493827 
 
 95 
 
 73 
 
 44 
 
 .6027397
 
 Ao-e. 
 
 No. 
 
 Living 
 
 96 
 
 
 29 
 
 97 
 
 
 10 
 
 98 
 
 
 ■ 33 
 
 808 FRATERNAL SOCIETY LAW 
 
 No. Dying. Probability of Dying. 
 19 .6551724 
 
 7 .7000000 
 
 3 .10000000 
 
 Section 3250. § S3. Any such fraternal beneficiary association 
 organized under the laws of this Territoi-y may provide for the 
 meeting of its legislative or governing, body in any other State, 
 Territory or Province, wherein such association shall have subordi- 
 nate lodges or bodies, and all business or corporate acts transacted at 
 such meetings shall he valid in all respects as if such meetings were 
 held in this Territory ; and where the laws of any such association 
 provide for the election of its officers by votes cast in its subordinate 
 bodies, the votes so east by its subordinate bodies in any other State, 
 Territory or Province shall be as valid as if cast in this Tei'ritory. 
 
 Section 3251. § 84. Any person, officer, member or examining 
 physician who shall knowingly or wilfully make any false or fraudu- 
 lent statement or representation in or with reference to any applica- 
 tion for membership or for the purpose of obtaining any money or 
 benefit in any association transacting business under this Act, shall 
 be guilty of a misdemeanor, and upon conviction shall be punished 
 by a fine of not less than one hundred dollars ($100.00), nor more 
 than five hundred dollars ($500.00), or imprisonment in the county 
 jail for not less than thirty days nor more than one year, or both 
 such holder, and any person who shall wilfully make any false 
 person who shall wilfully make any false statement of any material 
 fact or thing in a sworn statement as to the death or disability 
 of a certificate holder or member in any association for the pur- 
 pose of procuring payment of a benefit named in the certificate of 
 such holder, and any person who shall wilfully make any false 
 statement in any verified report or declaration under oath, required 
 or authorized by this Act, shall be guilty of perjury, and shall be 
 proceeded against and punished as provided by the Statutes of 
 this Territory in relation to the crime of perjury. 
 
 Section 3252. § 85. Any such association, whether organized 
 under the laws of this Territory or of any other State, Territory 
 or Province, refusing or neglecting to make the report as provided
 
 THE STATE OF OKLAHOMA 809 
 
 ill this Act shall bu excluded from doing business within this Terri- 
 tory. The Superintendent of Insurance, witliin sinxty days after 
 any such association's failure to make such report, or in case any 
 8uch association shall exceed its powers, or shall conduct its business 
 fraudulently, or shall fail to comply with any of the provisions 
 of this Act, must give notice in writing to the Attorney General, 
 who shall immediately commence an action against any such asso- 
 ciation to enjoin it from carrying on any business within this Terri- 
 tory. No injunction against any such association shall be granted 
 by any court to enjoin it from transacting business in this Terri- 
 tory, except on application of the Attorney General thereof, at the 
 request of the Superintendent of Insurance, whether the Territory 
 or a member of other party seeks relief. No association so enjoined 
 shall have power or authority to continue in business until such 
 report shall be made, or overt acts or violation of the law com- 
 plained of shall be corrected, nor until the costs of such action be 
 paid by it, provided the court shall find that such association was 
 in default as charged ; whereupon the Superintendent of Insurance 
 shall re-instate such association, and not until that is done by him 
 shall such association be again allowed to do business within this 
 Territory. Any officer, agent or person acting for such association, 
 or subordinate body thereof, within this Territory, while such asso- 
 ciation shall be so enjoined or prohibited from doing business pur- 
 suant to this Act, shall be deemed guilty of a misdemeanor, and, 
 on conviction thereof, shall be punished by a fine of not less than 
 twenty-five dollars ($25.00), nor more than two hundred dollars 
 ($200.00), or by imprisonment in the county jail for not less than 
 thirty days, nor more than one year, or by both such fine and 
 imprisonment in the discretion of the court. 
 
 Section 3253. § 86. Any person who shall act within this Terri- 
 tory, as an oflScer, agent, or otherwise, for any association, which 
 shall have failed, neglected, or refused to comply with or shall 
 have violated any of the provisions of this Act, or shall have failed 
 or neglected to procure from the Superintendent of Insurance a 
 proper certificate of authority to transact business within this Terri- 
 tory, as ju'ovided for by this Act, shall be subject to the penalties
 
 81 FRATERNAL SOCIETY LAW 
 
 provided iu the last preceding section for the misdemeanor therein 
 defined and specified. 
 
 Section 3254. § 87. "When any other State, Territory, or Prov- 
 ince shall impose any obligation upon any fraternal beneficiary as- 
 sociation organized under the laws of tthis Territory, or upon its 
 agents or representatives, or other persons transacting business for 
 it in such other State, Territory or Province, the like obligations 
 are hereby imposed on similar fraternal beneficiary associations or- 
 ganized under the laws of such other State, Territory or Province, 
 and their agents or representatives doing business in this Territory. 
 
 Section 3255. § 88. This Act shall not apply to any corporation, 
 society or association carrying on the business of life, health, casualty 
 or accident insurance for profit or gain, but it shall apply only 
 to fraternal beneficiary associations as defined in Section 3236. 
 This Act shall not efl'ect or apply to any grand or subordinate lodge 
 of the Ancient Order of Free and Accepted Masons, Independent 
 Order of Odd Fellows, Improved Order of Red Men, or Knights of 
 Pythias as they now exist, nor to similar orders, or secret societies, 
 nor to any association not Avorking on the lodge system, or which 
 limits its certificate holders to a particular class, or to the employees 
 of a particular town, or citj', designated firm, business house or 
 corporation. 
 
 Knowledge of Laws Presumed. 
 
 A member is presumed to know the laws of the society, and he is 
 bound thereby. 
 
 Home Forum Benefit Order vs. Jones, June, 1S97, 5 Okla, 598. 
 
 Agency of Subordinate Lodges. 
 
 Subordinate lodges may have a very limited or a very wide 
 authority. If they have blank certificates which they can issue to 
 whom they please, they can bind their superiors to almost anything 
 they do in the line of issuing them. Generally, however, the sub- 
 ordinate lodges are like agents of life insurance companies in that 
 they can only solicit applications which are referred to the supreme 
 body to be accepted or decliiu'd as its officers may elect. The sub-
 
 TEE STATIC OF OKLAHOMA gH 
 
 ordinate lodges are tied down by instructions which they ennnot 
 violate even if they were so inclined. 
 
 Home Forurn Benefit Order vs. Jones, June, 1S97, 5 Okia, 598. 
 
 Contracts Not Made by Reason of Delays. 
 
 The delay of a subordinate lodge in forwarding applications for 
 membership and for benefit certificate does not create a contract 
 in the face of the provisions of the laws of the society that the offi- 
 cers of the Supreme Lodge alone have power to pass \\\Hm applica- 
 tions and to issue certificates. 
 
 Home Forum Benefit Order vs. Jones, June, 1897, 5 Okla, 598. 
 
 Evidence, Parol Not Allowed to Vary Contract. 
 
 Where the terms of a written contract are clear, plain and explicit, 
 and free from all ambisnity. i)arol testimony is not admissible to 
 change or vary its terms. 
 
 Liverpool, London & Globe Ins. Co. vs. Rkliardson, Feb., 1902, 11 
 Okla. 579. 
 
 Knowledge of Terms of Contract Presumed. 
 
 An applicant for insurance who accepts a policy, the provisions 
 of which are plain, clear, and free from ambiguity, is chargeable 
 with knowledge of its terms and legal effect. It is his duty to read 
 and know the contents of the contract before he accepts it, and 
 where he fails or neglects to do so, he is estopped from denying 
 knowledge of its terms and conditions, unless he alleges and proves 
 that he was induced not to read the policy by some trick or fraud 
 of the other party. 
 
 Liverpool, London & Globe Ins. Co. vs. Richardson, Feb., 1902, 11 
 Okla. 579. 
 
 Warranty of Literal Truth of Application Reasonable. 
 
 Where an ajiplication for insurance is made for the purpose of
 
 812 FRATERNAL SOCIETY LAW 
 
 informiug a company of the facts with reference to the risks pro- 
 posed, and to furnish it information upon which it is to act in ac- 
 cepting or refusing the risk, and wherein the applicant warrants his 
 answers to be true, a stipulation in the application and policy that 
 if any of the statements made in the application by the applicant is 
 untrue, the policy shall be void, is a reasonable stipulation. 
 
 Deming Investment Co. vs. Shawnee Ins. Co., Sept., 1905, 16 Okla. 1. 
 
 Agency, Principal Not Bound by Unauthorized Acts, 
 
 Where a waiver of the stipulation and conditions contained in a 
 policy relied upon is the act and conduct of an agent of the insur- 
 ance company, it must be shown that the agent had express au- 
 thority from the company to make the waiver, or that the company 
 subsequently, with knowledge of the facts, ratified the unauthorized 
 action of the agent ; and an agent whose powers are strictly defined 
 and limited by the express term.s of the contract of insurance cannot 
 act so as to bind his company beyond the scope of his authority. 
 
 Deming Investment Co. vs. Shawnee Ins. Co., Sept., 1905, 16 Okla. 1, 
 
 Warranty, Immateriality of Representations. 
 
 Where by the express terms of an application and by the terms of 
 the contract the application is made part of the contract, and the 
 representations contained in the application made by the applicant 
 are warranted to be true, and it is stipulated that the policy shall 
 be void if any of such representations are not true, the question of 
 the materiality of such rein-esentations becomes unimportant; for 
 under such stipulations in a suit to recover under the contract the 
 insurance company is relieved from showing, and the insured is 
 estopped from denying, that they were material to the contract. 
 
 Deming Investment Co. vs. Shawnee Ins. Co.. Sept., 1905. 16 Okla. 1,
 
 THE STATE OF OREGON 813 
 
 THE 
 
 STATE OF OREGON. 
 
 CHAPTER 38. 
 
 There is no code for the regulation of fraternal societies in the 
 State of Oregon and by Sections 3723, 3724, 3748 and 3749 of the 
 statutes of the State they are exempted from the operation of the 
 general insurance laws of the State. The sections in question are 
 as follows: 
 
 Licenses to Companies and Terms of. 
 
 § 3723. This act shall take effect on the first day of July, 1887, 
 and all licenses issued by the commissioner shall expire on the thirty- 
 first day of December of each year, and shall be issued pro rata for 
 any period less than one year. Within thirty days after the first day 
 of July, 1887, and within thirty days after the first day of January, 
 1888, and annually thereafter, each company doing or proposing to 
 do an insurance business in this State shall apply to the commis- 
 sioner for a license, and if he shall be satisfied that such company 
 is qualified to do business under the provisions of this act, he shall 
 issue the same, on the receipt in gold coin of the amount required 
 herein, and the admission of an insurance company to do business 
 in this State shall not be denied by the commissioner when it makes 
 and tenders a full compliance with the provisions of this act. fL. 
 1887, p. 123, § 17; H. C. § 3579.] 
 
 License Fees, Fines, and Taxes, and their Disposal. 
 
 § 3724. The commissioner shall collect for filiiis' each power of at-
 
 814 FRATERNAL SOCIETY LAW 
 
 torney, os issuing his certificate as required by law, $5 ; for an annual 
 license of each lire insurance company to transact business through- 
 out this State, $50; for any annual license to each life insurance com- 
 pany, co-operative insurance association, or mutual benefit society to 
 transact business throughout this State, $100 ; for an annual license 
 to each life and accident or an accident insurance company to trans- 
 act business throughout this State, $100 : Provided, That all orders or 
 secret societies, such as Masons, Odd Fellows, Druids, Knights of 
 Pythias, Ancient Order of United Workmen, Grangers, Firemen, 
 and other benevolent, fraternal, co-operative societies associated or 
 incorporated for the sole purpose of mutual protection and relief of 
 its members only, and for the payment of stipulated sums of money 
 to the families of deceased members, or for property of its mem- 
 bers only, destroyed by fire, and not for profit, are hereby declared 
 not to be fire or life insurance companies in the sense and meaning 
 of the insurance laws of this State, and they are exempt from the 
 provisions of all insurance laws of this State. For examining the 
 financial condition of any company or association organized in this 
 State, the just and legitimate expense of such examination shall be 
 paid by the said company, and the commissioner shall revoke in- 
 refuse his certificate of authority to any company neglecting or 
 refusing to pay such expense or to furnish any information to said 
 ■commissioner authorized by this act. All fines and penalties re- 
 ceived and taxes jiaid on premiums under the provisions of this act 
 shall be paid into the State school funds, and sixty per cent of ;ill 
 licenses collected by the commissioner shall be paid into the general 
 fund of the State, and the commissioner shall be entitled to receive 
 the fees and forty per cent of the licenses prescribed by law, as 
 compensation for his services. Every foreign fire, fire and marine, 
 life, life and accident, plate glass and steam boiler insurance com- 
 pany now doing business in this State, or that nuiy hereafter do 
 business in this State, shall, witliin sixty (GO) days after the passage 
 of this act, and on or before renewal or issuing of a license, appoint 
 a resident general agent on whom legal service, if any necessary, 
 may be made, and to whom all other agents of the company in the 
 State shall make rej)ort, not less frequently than once a week, of 
 business transacted ; und said officer shall, on oi- before the first
 
 THh: UTATE OF OREGON 815 
 
 day of March of each year, furnish the Insurance Commissioner of 
 this State a sworn statement of the total business transacted by such 
 company \tithin the State of Oregon during the year ending De- 
 cember 31st prior thereto. Such statement shall show the total gross 
 premiums received during the year, from which shall be deducted 
 returned premiums and losses jiaid in the State, and every such 
 fire, fire and marine, life, life and accident, plate glass and steam 
 boiler insurance com])any shall, within thirt.y days from the date of 
 such annual statement, pay to the Insurance Commissioner a fee of 
 $5 for filing such statement. The Insurance Commissioner shall file 
 such verified statement and schedule in his office, and shall certify 
 the amount of such gross premiums received, less premiums re- 
 turned and losses paid in the State, to the State Treasurer. Within 
 ten days thereafter such foreign insurance company shall pay or 
 cause to be paid into the State treasury a tax of two per cent upon 
 all such gross receipts, less premiums returned and amount of losses 
 paid, which payment, when so made, shall be in lieu of all taxes 
 upon the personal property of such company and the shares of .stock 
 therein. Any insurance company failing or refusing to render such 
 statement and to pay the required two per cent tax thereon for 
 more than thirty days after the time so specified, shall be liable to 
 a fine of $100 for each additional day such statement and payment 
 is delayed, and to have its license revoked; and the said taxes may 
 be collected by distraint and fine recovered by an action to be in- 
 stituted by the prosecuting attorney, in the name of the State, in 
 the county where the principal office of such insurance company is 
 located; and such company may be enjoined from doing business in 
 this State until payment of such taxes and fine, should any be im- 
 posed, is fully made, and notice thereof be given to the Insurance 
 Commissioner. Upon payment of such taxes and fines or other 
 moneys to the State Treasurer, and the giving of notice to the In- 
 surance Commissioner as prescribed, and on full compliance in all 
 other respects with the laws of Oregon, such company may be per- 
 mitted by the Insurance Commissioner to resume business: Pro- 
 vided, That all real ]iroperty, if any, of such company shall be listed, 
 assessed, and taxed the same as real property of like character of
 
 816 FRATERXAL SOCIETY LAW 
 
 individuals. [L. 1887, p. 123, § 18 ; L. 1889, p. 66, § 3; H. C. § 3580; 
 L. 1895, p. 83, § 1.] 
 
 Lodge Systems with Ritualistic Work not Within Law. 
 
 § 3748. Nothing in this act shall be construed to apply to organ- 
 izations operating or working under the lodge system and having 
 ritualistic Avork in their lodges. [L. 1899, p. 80, § 10.] 
 
 An Act to License and Regulate Life and Casualty Insurance Com- 
 panies and Societies. 
 
 (Filed in the office of the Secretary of State February 21, 1891.) 
 Fraternal Societies May Grant Relief. 
 
 § 3749. Those certain fraternal orders or societies, commonly 
 designated as Masons, Odd Fellows, Druids, Knights of Pythias, 
 Ancient Order of United Workmen, Patrons of Husbandry, Knights 
 of Labor, and a certain association organized in the State of Oregon 
 in the year 1883, designated as the "Washington Co-operative 
 Life Insurance Association," and also all fraternal orders or 
 societies that are associated or incorporated for the primary 
 purpose of mutual protection and relief of members other 
 than such protection and relief as may be afforded by in- 
 surance, and having ritualistic work and ceremonies under the 
 provision of a grand or supreme body, may grant relief to sick 
 members and pay money to the families of deceased members without 
 complying with the laws of this State respecting insurance corpora- 
 tions or associations ; provided, however, that the Insurance Com- 
 missioner of this State shall have power to decide whether any 
 society, order, or association other than the several orders and asso- 
 ciations above specifically named is a fraternal society associated 
 for the primary purpose of the protection or relief of members, other 
 than such protection or relief as is afforded by insurance, and his 
 decision as to the right of any such society, order, or association 
 to claim the benefit of the above exemption shall be final. [L. 1891, 
 p. 167, §1; L. 1893. p. 98, §1-1
 
 THE STATE OF OREGON 817 
 
 Proofs of Death, False Statements. 
 
 An intentionally false statement by the insured touching a ma- 
 terial fact or matter or legitimate inquiry under the contract, as for 
 example a false statement as to the articles claimed to have been 
 lost and their value, made for the purpose of defrauding and deceiv- 
 ing the company, renders the policy void, although the company 
 has not been actually deceived or misled to its detriment. 
 
 Fowler vs. Phoenix Ins. Co., Jan., 1899, 35 Ore. 559; 57 Pac. 421. 
 Beneficiary — Change of. 
 
 A member desiring to change the beneficiary named in the cer- 
 tificate must substantially comply with the rules of the society regu- 
 lating that subject, or the change will not become effective. Thus, 
 where the laws required a member who wished to change beneficiary 
 to file a written petition with his local lodge stating certain facts 
 relating to the matter and directing that the secretary .should send 
 the certificate and petition to the Grand Secretary, an alteration by 
 the local secretary of the name of the beneficiary is ineffectual for 
 any purpose and cannot be regarded as a change of beneficiary. 
 
 Independent Foresters vs. Keliher, Dec, 1899, 36 Ore. 501; 59 Pac. 
 324-1109; 60 Pac. 56S. 
 
 Beneficiary — Changes of Must be in Conformity With Law. 
 
 The failure of a Grand Secretary to suppl.y local secretaries with 
 blanks for the changing of beneficiaries, or the fact that the local 
 lodge failed to meet on a regular day when an application for change 
 of beneficiary might have been considered, does not constitute a 
 waiver of the requirement of the society as to making changes of 
 beneficiaries. 
 
 Independent Foresters vs. Keliher, Dec, 1899, 36 Ore, 501; 59 Pac. 
 324-1109; 60 Pac 563. 
 
 Foreign Society — Service of Process Upon Local Agent of. 
 
 Under the statutes of the State providing for service of process, the 
 52
 
 818 FRATERNAL SOCIETY LAW 
 
 service of process on a nou-resident fraternal benefit society may be 
 made hy delivering the process to one who as secretary of the local 
 lodge of the society is required to receive assessments from members 
 and remit them to the head office, and to keep and report the record 
 of the standing local members, to notify the head office of the death 
 of members, and to return the complete proofs of death — such a 
 person being held to be an agent of the society for the purposes of 
 service of process upon the society. 
 
 Hildebrand vs. United Artisans, Jan., 1905, 46 Ore. 134; 79 Pac. 347. 
 
 Venue of Suit Against Society. 
 
 Under a statute providing that a corporation may be sued in the 
 county where the cause of action arose, an insurance society may be 
 sued on its contract in the county whereof its beneficiary was an 
 inhabitant at the time of the member's death. 
 
 Hildebrand vs. United Artisans, Jan., 1905, 46 Ore. 134; 79 Pac. 347. 
 
 Proofs of Death — to be Furnished Before Suit. 
 
 Xou-compliance with the provisions of a contract requiring the 
 beneficiary to furnish proofs witliin one year after the death of the 
 insured, to which no penalty is subjoined for non-observance, does 
 not forfeit the policy, but requires the funiishing of proof prior to 
 
 the bringing of an action. 
 
 Stincluomb vs. N. Y. life Ins. Co., April. 1905, 46 Ore. 316; 80 Pac. 
 213. 
 
 Suspension, Payment of Arrearages and Death of Member While 
 Under. 
 
 An assessment on a certificate was remitted while the member was 
 suspended and received at the head office after his death, the head 
 officer not being aware of the member's illness or death, held, that 
 the societv cannot be said to have waived the suspension by keeping 
 the assessment for a few weeks.
 
 THE STATU OF OREGON 819 
 
 Miller vs. Head Camp, Woodmen of the World, .June, 1904, 45 Ore. 
 192; 77 Pac. 83. 
 
 Beneficiary — Rights Under Interpleader Suit. 
 
 The lack of actual substitution as beneficiary in a certificate pur- 
 suant to the laws of the society does not affect an agreement by 
 which a jjerson not named therein is to receive the insurance and 
 so deprive him of his equity to claim the same as against the bene- 
 ficiaries named therein, where the society does not insist on it, and 
 pays the fund into court to be awarded to the contestant entitled 
 thereto. 
 
 Brett vs. Warnick, March, 1904, 44 Ore. 511; 75 Pac. 1061. 
 
 Assignment of Equitable Interest by Member. 
 
 A member of a society hiiviiit;- the consent of the beneficiary named 
 in the certificate, who lias a vested interest therein by having made 
 payments necessary to its continuance, may contract witli a third 
 jjerson so as to transfer thereby an interest in tlie proceeds of such 
 certificate, unless the contract is contrary to public policy or other- 
 wise unlawful. 
 
 Brett vs. Warnick, March. 1904. 44 Ore. 511; 75 Pac. lOfil. 
 
 Beneficiary — Change of Must be in Strict Conformity with the Laws. 
 
 A member cannot change the beneficiary in his certificate except 
 by complying with the laws of the society. Thus where a member 
 had a certificate pa.valile to liis mother, and the laws provided that 
 the member could change the beneficiary at any time in a prescribed 
 manner and on payment of a certain fee. but that no change should 
 be effective until the old certificate slionld have lieen delivered to 
 the society and a new certificate issued during the lifetime of the 
 member, until which time the old certificate should remain in force, 
 the member took all tlie prescribed steps to substitute his wife as 
 beneficiary except the payment of the fee. Tlie change was not 
 accomplished and the insurance belonged to the original beneficiary. 
 
 Strlngham vs. Dillon. Aug., 1902, 42 Ore. (53; G9 Pac. 1020.
 
 820 FRATERNAL SOCIETY LAW 
 
 Evidence — Coroner 's Verdict not Receivable in. 
 
 The record of a coroner's inquest is not competent evidence be- 
 tween private parties as to the cause of the death of the deceased, 
 for under the constitution and laws of Oregon a coroner is not a 
 judicial officer, nor has his record any judicial impress. 
 
 Cox vs. Royal Tribe, Jan., 1903, 42 Ore. 365; 71 Pac. 73. 
 
 Proofs of Death Furnished by Agent of Society. 
 
 Proofs of death furnished by an agent of the society are not com- 
 petent evidence as to the cause of death in an action by the bene- 
 ficiary against the society, unless sanctioned by the beneficiary. 
 
 Cox vs. Royal Tribe. Jan., 1903. 42 Ore. 365; 71 Pac. 73. 
 
 Suicide — Presumptions Against. 
 
 Where the dead body of the member was found in the water, but 
 no one saw her go in, and it did not appear from the other evidence 
 whether she went in of her own accord or otherwise, the court was 
 warranted, in an action over her benefit certificate, in charging that 
 thei'e was a presumption of natural death as against the claim of 
 suicide. 
 
 Cox vs. Royal Tribe, Jan.. 1903. 42 Ore. 365; 71 Pac. 73. 
 
 Forfeiture — When Lodge Required to Make Payments to Prevent. 
 
 For the facts in a case where it was claimed that the member had 
 forfeited the certificate by non-payment of assessments, and where 
 it was the duty of the lodge to which the member belonged to pay 
 the member's assessments under certain contingencies. See: 
 
 Montour vs. Grand Lodge, Oct.. 1900, 38 Ore. 47: 62 Pac. 524. 
 
 Suspension — Failure to Appeal Bound by Action of. 
 
 Under a coiistitulional jirovision of a society providing that a
 
 THE STATE OF OREGON 821 
 
 member who has bee;i suspended or expelled must apply for re- 
 instatement within a given time, and be accepted by his lodge, and 
 providing that in case of rejection he must appeal to the Grand 
 Lodge, a suspended member whose application for reinstatement 
 was rejected, and who did not appeal, is estopped from contesting 
 the validity of his rejection in court. 
 
 Montour vs. Grand Lodge, Oct.. 1900. 38 Ore. 47; 62 Pac. 524.
 
 822 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF PEJMNSYLVANIA. 
 
 CHAPTER 39. 
 
 The following six Acts of the Legislature of Pennsylvania com- 
 prise the statute law of that commonwealth affecting Fraternal 
 Societies. 
 
 An Act regulating the organization and incorporation of Secret 
 Fraternal Beneficial Societies, Orders, or Associations and pro- 
 tecting the rights of members therein. 
 
 Whereas, Fraternal beneficial societies, orders or associations have 
 for many years been in existence in this Commonwealth ; 
 
 And whereas, The said societies, when properly managed, are 
 beneficial to the laboring and business classes, but by reason of 
 there being no statutory i)rovisious regulating tlie conduct of their 
 affairs the citizens of this Commonwealth are unprotected from 
 fraudulent schemes and plans and from the mismanagement of 
 officers and promoters of such societies, orders and associations, now 
 therefore : 
 
 Section 1. Be it enacted by the Senate and House of Represen- 
 tatives of the Commonwealth o± Pennsylvania in General Assembly 
 met, and it is hereby enacted by the authority of the same, That 
 from and after the passage of this act, any fifteen or more persons, 
 nine of whom shall be citizens and residents of this Commonwealth, 
 having associated themselves as a secret fraternal beneficial so- 
 ciety, order or association, may be incorporated under the provisions 
 of tliis act and when so incorporated the said corporation shall 
 have the following powers:
 
 THE iSTATE OF PENNSYLVANIA 823 
 
 First. I'o have succcssiou by its corporate iianiL' perpetually, 
 subject to the power of the General Assembly under the Consti- 
 tution of this Commonwealth. 
 
 Second. To maintain and defend .judicial proceedini;s. 
 
 Third. To make and use a common seal and alter the same at 
 pleasure. 
 
 Fourth. To be capable of taking, receiving, purchasing, hold- 
 ing and transferring real and personal property for the purpose 
 of its incorporation and for no other purpose. 
 
 Fifth. To elect, appoint and remove the officers and agents for 
 the management of its business and carrying out its objects and 
 to allow them a suitable compensation. 
 
 Sixth. To make a constitution and general laws for the manage- 
 ment of its affairs, not inconsistent with the Constitution and laws 
 of this State, and to alter and amend the same when necessary. 
 When so made, altered or amended, the said constitution and general 
 laws shall be the law governing such society, order or association 
 and its officers, subordinate lodges, councils or bodies and the mem- 
 bers in their relations to such societies, orders or associations in all 
 their acts. 
 
 Seventh. To provide in the constitution and general laws for 
 the payment to its members of sick, disability or death claims in 
 such amounts as may be authorized and directed by said constitution 
 and general laws. And also to provide for the payment, in not 
 less than five years, to members whose beneficiary or distribution 
 period may then expire, of such sum not exceeding the maximum 
 amount named in the beneficiary certificates as the constitution and 
 general laws in force at the expiration of said period may authorize 
 and direct. 
 
 Eighth. To collect from its members by admission fees, dues 
 and assessments the funds necessary to carry on its operations and 
 provide for the payment of its benefits, which assessments shall 
 be made in manner and form as ])rovided by its constitution and 
 general laws. 
 
 Ninth. To caiTy on its operations through supreme and subor- 
 dinate bodies or lodges and to iss\ie beneficiary or relief certificates 
 in accordance with its constitution and general laws.
 
 824 FRATERNAL SOCIETY LAW 
 
 Tenth. To enter into any obligation necessary for the trans- 
 action of its affairs. 
 
 Section 2. The charter of such intended corporation must be 
 subscribed by five or more persons citizens of this Commonwealth 
 and shall set forth: 
 
 First. The name of the corporation. 
 
 Second. The purpose for which it is formed. 
 
 Third. The place where its principal office is to be located. 
 
 Fourth. The names and residences of the subscribers. 
 
 Fifth. The number and names of its officers with the term or 
 terms of years for which they have been chosen, and also the names 
 of not less than six directors, managers or members of an executive 
 committee, who, together with the president of the society, order or 
 association, shall form a board of directors, managers or executive 
 committee, with the term or terms of years for which each is to 
 serve. 
 
 Section 3. Notice of the intention to apply for any such charter 
 shall be inserted in two newspapers of general circulation printed 
 in the proper county for three weeks, setting forth briefly the char- 
 acter and object of the corporation to be formed and the intention 
 to make application therefor. 
 
 Section 4. The said certificates of incorporation shall be acknowl- 
 edged by at least five of those who subscribed to them, before any 
 officer authorized to take the acknowledgments of deeds in the 
 Commonwealth of Pennsylvania, to be their act and deed, and the 
 same, being duly certified under the hand and official seal of the 
 said officer shall be presented to a law .judge of the county in which 
 the principal office of the corporation is located, accompanied by 
 proof of the publication of the notice of such application, who 
 is hereby authorized to peruse and examine said instrument and 
 if the same shall be found to be in the proper form and within the 
 purposes named in this act he shall endorse thereon these facts, and 
 shall order and decree thereon that the charter is aiiproved and 
 that upon the recording of the said charter and order the sub- 
 scribers thereto and their associates shall be a corporation for the 
 purposes and upon the terms therein stated, and said order and 
 charter shall be recorded in the office for tlio recording of deeds
 
 THE STATE OF PENNSYLVANIA 825 
 
 in and for the county aforesaid and from thenceforth the persons 
 named therein and subscribing the same and their associates and 
 successors shall be a corporation by the name therein given. No 
 such corporation, however, shall engage in business until at least 
 twenty-five persons have subscribed in writing to be beneficiary 
 members therein in the aggregiite amount of at least five thousand 
 dollars, and have each paid in one full assessment in cash amount- 
 ing in the aggregate to at least one per centum of the amount in 
 which they are beneficiary, nor until a certificate signed and sworn 
 to by three of the highest officei-s of the corporation has been filed 
 witli tJie Insurance Commissioner stating that the requirements of 
 this section have been complied with. 
 
 Section 5. Every such fraternal society, order or association in- 
 corporated under or accepting the provisions of this act shall, on 
 or before the first day of March of each year, make and file with 
 the Insurance Commissioner a report of its affairs and operations 
 during the year ending on the thirty-fii'st day of December imme- 
 diatel}^ preceding; such report shall be iipon blank forms to be pro- 
 vided by the Insurance Commissioner and shall be verified, under 
 oath, by the dulj- authorized officers of such societ.y, order or asso- 
 ciation and shall be in lieu of all other reports required by any 
 other law; the said report shall contain answers to the following 
 questions : 
 
 First. Number of members admitted during the year and num- 
 ber of beneficiary certificates issued. 
 
 Second. Amovmt of benefits named in said certificates. 
 
 Third. Number of benefit liabilities incurred during the year. 
 
 Fourth, Number of benefit liabilities paid during the year. 
 
 Fifth. The amount received from each assessment during the year 
 and the number of assessments levied. 
 
 Sixth. Total amount paid members, beneficiaries, legal repre- 
 sentatives or heirs. 
 
 Seventh. Number aiul kinds of claims compromised or resisted 
 and brief statement of reasons. 
 
 Eighth. Does the corporation charge annual or other periodical 
 dues or admission fees. 
 
 Ninth. Total amount of salaries paid to officers.
 
 826 FRATERNAL SOCIETY LAW 
 
 Tenth. Has the society a reserve fund. 
 
 Eleventh. If so, Ijow is it created and for what purpose, the 
 amount thereof, and how invested. 
 
 Twelfth. If the custody and investment of said reserve fund is 
 entrusted to any trust companies or corporations in the Common- 
 wealth of Pennsylvania, state the name of said corporation or cor- 
 porations, the capital stock of the same, the amount of capital stock 
 paid in, the surplus, if any. and the place of business of said corpo- 
 ration or corporations. 
 
 Thirteenth. If the custody and investment of said reserve fund 
 is entrusted to any of the officers of the said secret fraternal bene- 
 ficial society, give the names and residences of the said officers, 
 the names and residences of their si;reties, the amount of their bonds 
 and the place or person with whom the said bonds are deposited. 
 
 Fourteenth. State the amount of said reserve fund. 
 
 Fifteenth. Number of certificates of membership lapsed during 
 the year. 
 
 Sixteenth. Number in force at beginning and end of year. 
 
 Seventeenth. Date of organization and incorporation and county 
 where incorporated. 
 
 All such societies, orders or associations, together with their books, 
 papers and vouchers, shall be subject to visitation and inspection by 
 the insurance conmiissiouer or such person or persons as he ma.v 
 at any time designate. Any such society, order or association re- 
 fusing or neglecting to make such report to the insurance commis- 
 sioner may, upon the suit of the commonwealth, be enjoined by the 
 court of common pleas of Dauphin county from carrying on any 
 business until such report shall be made. 
 
 Section 6. Every officer of any corporation accepting the pro- 
 visions of or doing business under this act shall give bond with suf- 
 ficient surety for the faithful performance of his duties, and for the 
 safe custody of the moneys and securities and other property 
 which may be in his possession and control, M'hich bond shall 
 be for such amount as the board of directors, managers, exec- 
 utive committee or supreme governing body may require: Pro- 
 vided however, That when the reserve funds of any corporation 
 organized hereunder or accepting the provisions hereof are deposited
 
 THE HTATE OF PENNSYLVANIA 827 
 
 for iiivcsluiciit with ;jiiy trust. ('()in]);iiiirs or liiuiiicial corporations 
 chartered Id.v the Coiiinionwcjiltli of Peiiiisylvauia, the officers of said 
 corporation so depositing its reserve funds need not be bonded for 
 any of the moneys or seenrities in the custody or possession of said 
 trust eonipanies oi" fiiuineial coriMii-atious. The insuivince commis- 
 sioner shall have the power and authority at all times to examine 
 said bonds at the place of business of the corporation, and there to 
 inquire of and receive answers from the officers of the corporations 
 as to their knowledge of the financial standing of the surety or sure- 
 ties on any of said bonds. 
 
 Section 7. Any beneficial society, order or association heretofore 
 incorporated under any act of the general assembly of the common- 
 wealth of Pennsylvania for licneficial (U' protective purposes to its 
 members from funds collected therein, and which has been carrying 
 on the operations of a secret fraternal society, order or association, 
 and any unincorporated society, order or association which has been 
 carrying on said operations, shall have and enjoy the rights and 
 privileges conferred by this act, upon filing with the insurance com- 
 missioner a certificate or declaration, signed by its supreme officers 
 accepting the provisions of this act and agreeing to abide by all 
 the requirements herein made: Provided, however. That nothing 
 in this act shall apply to any incorporated or unincorporated fra- 
 ternal i)enefieial society not accepting thi? provisions hereof, or Ix' 
 so construed as to compel any such society to accept its provisions or 
 become incorporated thereunder. 
 
 Approved— -The 6th day of April, A. D. 1893, (P. L. 10.) 
 
 An Act defining Fraternal Beneficial and Relief Societies and their 
 status, authorizing them to create subordinate lodges and to pay 
 benefits upon the sickness, disability or death of their members 
 from funds collected by dues and assessments therein providing 
 for their registration in the office of the Insurance Commissioner, 
 and requiring that they shall make annual reports to him, and 
 exempting them from taxation and from the supervision of the 
 Insurance Commissioner. 
 
 Section 1. Be it enacted by the Senate and House of Representa- 
 tives of the Commonwealth of Ponnsvlvania in eeneral Assemblv met. 
 
 I
 
 828 FRATERNAL SOCIETY LAW 
 
 and it is hereby enacted by the authority of the same, That it shall 
 be lawful for any cox'poratiou, society or vohintarj' association, now 
 or hereafter formed or organized and carried on for the sole benefit 
 of its membei's and their beneficiaries and not for profit, to have and 
 create subordinate lodges with ritualistic form of work and a repre- 
 sentative form of government, and to issue certificates of member- 
 ship, make provision for the payment of benefits in case of sickness, 
 disability or death of its members, subject to their compliance with 
 its constitution and laws in which the fund from which the payment 
 of such benefits shall be made, and the expenses of such association 
 shall be defrayed and shall be derived from assessments or dues 
 collected from its members, and in which the payment of death bene- 
 fits shall be to families, heirs, blood relatives, affianced husband or 
 affianced wife of or to persons dependent upon the members. 
 
 Such corporation, society or voluntary association now existing, 
 or hereafter formed or organized, shall be, and is hereby declared to 
 be a fraternal beneficial society, and shall be goveraed by this act, 
 and shall be exempt from the provisions of insurance laws of this 
 State, and no law hereafter passed shall be applied to them unless 
 they be expressly designated therein. All funds of such fraternal 
 beneficial societies shall be exempt from the State tax on money at 
 interest. 
 
 Section 2. "Within sixty days after the passage of this act all 
 supreme or grand or other bodies which may be known to constitute 
 the head of any fraternal beneficial society doing business within 
 this Commonwealth, as provided in the first section of this act, shall 
 file through its proper officers or representatives with the insurance 
 Commissioner a copy of their constitution and general laws, and 
 annually any alterations, changes or amendments, whose duty it 
 shall be to register them, without charge, in the Insurance Depart- 
 ment as fraternal beneficial societies and when so registered, they 
 shall be exempt from any and all fees and taxes imposed by exist- 
 ing laws upon insurance companies reporting to said department. 
 
 Section 3. The executive officers of each such supreme or grand 
 lodge of any fraternal beneficial society doing business in this Com- 
 monwealth shall, on or before the first day of March, of each year, 
 make a report under oath, on a blank to be provided by the Insur-
 
 THE STATE OF PENNSYLVANIA 829 
 
 ance Commissioner, which report shall be printed as a part of his 
 annual report of the operations of said society in this Commonwealth 
 for the preceding fiscal year eiidinu- Dcccnihcr thirty-first, in forms 
 as follows: 
 
 I. 
 
 Name of the society or association, with its principal office or place 
 of business. 
 
 II. 
 
 Income. 
 
 First. Annual Dues. 
 
 Second. Assessments. 
 
 Third. All other sources. 
 
 Fourth. Total income during the year. 
 
 III. 
 
 Expenditures. 
 
 First. Losses and claims paid. 
 
 Second. Salary and other compensation of officers. 
 
 Third. Rent. 
 
 Fourth. Office expenses. 
 
 Fifth. All other expenditures. 
 
 IV. 
 
 Assets. 
 
 First. Real estate. 
 Second. Loans on mortgages. 
 Third. Bonds and stock owned absolutely. 
 Fourth. Cash in office or bank. 
 
 Fifth. Due from members on assessments called on pending col- 
 lection. 
 
 Sixth. All other assets. (Stating character.)
 
 830 FRATERNAL SOCIETY LAW 
 
 Liabilities. 
 
 First. Losses and claims unpaid. 
 
 Second. Salaries due and uuiiaid. 
 
 Tliird. Borrowed money. 
 
 Fourth. All other liabilities. (Stating character.) 
 
 VL 
 
 Exhiliit lit' iiienibershij). 
 
 First. Tiital membership in S'ood standing- December tliirty-first, 
 one thousand hundred and . Number. 
 
 Second. Total number of members received by initiation or re- 
 admission during the year. Number. 
 
 Third. Total Number. 
 
 Fourth. Deduct members retiring b.y withdrawal or suspension 
 during the year. Number. 
 
 Fifth. Deduct members who have died during the year. Number. 
 
 Sixth. Total members in good standing December thirty-first, 
 one thousand hundred and . Number. 
 
 Section 4. Any fraternal beneficial society failing to register as 
 required by the second section of this act or to make the report re- 
 quired by the third section of this act, shall br [irohibited from doing 
 business in this State, and the officers of societies violating these re- 
 quirements shall be deemed guilty of a misdemeanor and upon con- 
 viction shall be fined not exceeding one hundred dollars for each 
 oflfense : Provided always. That nothing in this act shall be so con- 
 strued as to give the Insurance Commissioner any supervision or 
 authority in any matter or thing whatsoever pertaining to the busi- 
 ness of any fraternal society as prescribed in the first section of this 
 act, other than is expressly provided for in the second and third 
 sections hereof: And provided furthei-. That all beneficial and relief 
 associations formed by cliurehes. societies, classes, firms or corpora- 
 tions with or witlioiil ritualistic form of w(U'lc. the privileges and 
 membership in which are confined to the members of such churches, 
 societies or classes and to members and employes of such firms or
 
 THE STATE OF PENSSYLVASIA 831 
 
 cur|ior,i1i()ns, shall be exempt from the pi-ovisioiis of this act: And 
 prdvidcd I'lirther, That this act shall not apply In niiy secret fraternal 
 beucticial society, order or association which has for one of its ob- 
 jects, the payment of a sum not exceeding a certain aiiiomit at the 
 expiration of a fixed period. 
 
 A|)pi'ovcd— The (ith day of April, A. D. 1893. (P. L. 7.) 
 
 An Act defining to whom the benefit certificates issued by Fraternal 
 Societies paying benefits upon the death of their members by 
 mutual assessments shall be paid, where the person or member 
 dies without leaving a person designated to receive the same. 
 
 Section 1. lie it enacted by the Senate and House of Representa- 
 tives of the Commonwealth of Pennsylvania in General Assembly met, 
 and it is hereby enacted by the authority of the same, That from and 
 after the passage of this act any benefit certificate or certificates now 
 or hereafter issued by any corporation, society or voluntary asso- 
 ciation now or hereafter formed or organied and carried on for 
 the sole benefit of its members and their beneficiaries and not for 
 profit, when any person or persons shall have been designated by 
 the members as his beneficiary or beneficiaries shall die prior to the 
 death of the member without any new designation, and no provision 
 is made by the laws of the society as to w'hom shall take the share 
 designated to go to such deceased beneficiary or beneficiaries, in all 
 such cases the amount or share designated to be paid to such de- 
 ceased beneficiary or beneficiaries shall be payable to the widow and 
 children of such deceased member, if any, share and share alike, and 
 in case none such be living, then to such other relatives of such 
 deceased members, and in such proportions as they are entitled to re- 
 ceive under a distribution of the personal estate liy the laws of the 
 domicile of such member. 
 
 Approved— The 24th day of May, A. D. 1893. (P. L. 126.) 
 
 An Act to provide for the person upon whom service shall be had 
 by legal process in the case of Fraternal Beneficial and Relief So- 
 cieties whose status is defined by the act of Assembly, entitled 
 An Act defining Fraternal Beneficial and Relief Societies and their 
 status, authorizing them to create subordinate lodges and to pay
 
 832 FRATERNAL SOCIETY LAW 
 
 benefits, upon the sickness, disability or death of their members, 
 from funds collected by dues and assessments therein, providing 
 for their registration in the office of the Insurance Commissioner, 
 and requiring that they shall make annual reports to him, and ex- 
 empting them from taxation and from the supervision of the In- 
 surance Conmiissioner, " approved the sixth day of April, Anno 
 Domini one thousand eight hundred and ninety-three. 
 
 Section 1. Be it enacted, etc., That any fraternal beneficial or 
 relief society, as defined under the provisions of the first section of 
 the act of assembly, entitled "An act defining fraternal beneficial- 
 and relief societies and their status, authorizing them to create sub- 
 ordinate lodges and to pay benefits, upon the sickness, disability or 
 death of their members, from funds collected by dues and assess- 
 ments therein, providing for their registration in the office of the in- 
 surance commissioner, and requiring that they shall make annual re- 
 ports to him, and exempting them from taxation and from the 
 supervi.sion of the insurance commissioner," approved the sixth day 
 of April Anno Domini one thousand eight hundred and ninety-three, 
 now doing or hereafter admitted to do l)usiness within this State, 
 and not having its principal office within this State, and not being 
 organized under the laws of this State shall appoint, in writing, the 
 commissioner of insurance or his successor in office to be its true and 
 lawful attorney upon whom all lawful process in any action or pro- 
 ceeding against it may be served, and in such writing shall agree 
 that any lawful process against it which is served on said attorney 
 shall be of the same legal force and validity as if served upon the 
 association, and that the authority shall continue in force so long 
 as any liability remains outstanding in this State; copies of such 
 certificate certified by said commissioner of insurance shall be 
 deemed sufficient evidence thereof and shall be admitted in evidence 
 with the same force and eft'ect as the roiginal thereof might be admit- 
 ted. Service upon such attorney shall be deemed sufficient service 
 upon such association. When legal process against any such asso- 
 ciation is served upon said commissioner of insurance he shall 
 immediiitply notify the association of such service, by letter prepaid 
 and directed to its supreme secretiirv or corresponding officer, and 
 shall williiii (wo <la\s afler such service. f(irwar<l in the same manner
 
 THE STATE OB' PENNSYLVANIA 833 
 
 a copy of the process served on liim to sucli officer: Provided liow- 
 ever, That such process shall be served at least thirty days prior 
 to the return day of the same. The plaintiff in such process so 
 served shall pay to the commissioner of insurance at the time of such 
 service a fee of three dollars, which shall be recovered by him as 
 part of the taxable costs if he prevails in the suit. The commissioner 
 of insurance shall keep a record of all processes served upon him, 
 vyhich record shall show the day and hour when such service was 
 made. 
 
 Section 2. All societies mentioned in the first section of this act 
 now doing business within this State shall comply with the pro- 
 visions of this act within thirty days from the passage of the same, 
 and all such societies hereafter applying for authority to do business 
 in this State shall comply with its provisions as a condition pre- 
 cedent to doing business in the state. 
 
 Approved— The 25th day of June, A. D. 1895. (P. L. 280.) 
 
 An Act to punish frauds upon Life Insurance Companies by agents, 
 physicians and others. 
 
 Section 1. Be it enacted, etc.. That any agent of a mutual, stock 
 or co-operative life insurance company or association, physician or 
 other pei'son whatsoever who shall knowingly make, or be concerned, 
 or interested in making, any misrepresentation or false statement, 
 for the purpose of securing from any mutual, stock or co-operative 
 life insurance eompan.y or association a policy of insurance or cer- 
 tificate of membership upon his own life, or the life of any other 
 person, shall be guilty of a misdemeanor, and upon conviction thereof 
 be fined not exceeding one thousand dollars, or undergo imprison- 
 ment not exceeding one year, or both, in the discretion of the court. 
 
 Approved— The 10th day of June, A. D. 1881. (P. L. 109.) 
 
 An Act to enable minors, above the age of eighteen years, to contract 
 for membership in Fraternal Beneficial Societies. 
 
 Section 1. Be it enacted, etc., That from and after the passage 
 of this act It shall be lawful for minors, who have attained the age 
 of eighteen years, to make all needful contracts to become members 
 53
 
 834 FRATERNAL SOCIETY LAW 
 
 of fraternal and beneficial societies lawfully organized and doing 
 business under the laws of this commonwealth. 
 
 Approved— The 24th day of June, A. D. 1897. (P. L. 204.) 
 
 Warranty, Immateriality of Answers Under. 
 
 In an action upon an insurance contract where the iindisputed 
 evidence is that the insured in his application had falsely stated 
 that he never had any illness and had not consulted a physician, it 
 is error for the court to submit the question of the materiality of the 
 answers in the application to the jury. 
 
 Lutz vs. Metropolitan Life Ins. Co., July, 1S98, 186 Pa. St. 527; 
 March vs. Met. Life Ins. Co., July, 1898, 186 Pa. St. 629; 
 Keatley vs. Travelers Ins. Co., July, 1898, 187 Pa. St. 197. 
 
 Suicide, Sane or Insane Clause, Valid. 
 
 No recover^' can be had on a contract of life insurance where the 
 insured has killed himself while insane, if it is a condition of the 
 contract that it shall be void in case the person whose life is insured 
 shall die by suicide, sane or insane. 
 
 Sargeant vs. National Life Ins. Co., Jan., 1899, 189 Pa. St. 341. 
 
 Evidence — Agent Competent Witness. 
 
 An agent of a life insurance company who took the application 
 is not an incompetent witness because the insured is dead. An 
 agent who makes a contract is not a party to the same ; it is the 
 principal for whom the agent acted who is the surviving party to 
 the contract. 
 
 Sargeant vs. National Life Ins. Co., Jan., 1899, 189 Pa. St. 341. 
 
 Warranty, in Cases of Breach Directed Verdict Proper. 
 
 In an action upon a contract of insurance where the uncontra- 
 dicted evidence for the insurance company established the fact that 
 the insured had falsely stated in his application that he had not
 
 THE STATE OF PENNSYLVANIA 835 
 
 Ix'cii rejected by ;iiiy iMiiiipjiiiy. aiul tliiit lir liad had no serious ill- 
 ness, while in fact he had a fatal disease of which he died in about 
 foiu' HU)iiths thereafter, it is i)roper for the trial judge to direct a 
 verdict in favor of the company. 
 
 Meyer-Bruns vs. Penn. Miit. Life Ins. Co., Jany., 1899, 189 Pa. St. 579. 
 
 Warranty, Parol Statements Not Allovvrable to Vary. 
 
 In an action upon ii contract where the application showed that 
 the insured had falsely stated that he had not been rejected by 
 another company, evidence that at the time the insured was being 
 examined he stated to the medical examiner that he had been re- 
 jected by another company and that the examiner had told him 
 that the other company was a beneficial and not an old line comjjany 
 and that his rejection would not att'ect his conti'act, was not com- 
 petent to rebut the .statement in the application. 
 
 Meyer-Bruns vs. Penn. Mut. Life Ins. Co., Jany., 1899, 189 Pa. St. 579. 
 
 Contract, Liability Begins When — Worthless Check not Payment 
 of Premium. 
 
 Where a contract of insurance provides that the policy shall not 
 be binding until the first premium shall have been paid, and it ap- 
 pears in an action upon the policy that the company had received 
 nothing from the insured except a worthless check, the policy 
 should not be admitted in evidence and a judgment of nonsuit 
 against the plaintiff' is properly entered. 
 
 Brady vs. Northwestern Masonic Aiii Assn.. April. 1899, 190 Pa. St. 
 595. 
 
 Warranty, Evidence Under. 
 
 In an action upon a contract of insurance where the defense is 
 that the insured in his application made false answers as to his 
 health, and four witnesses for the defendant are contradicted by 
 sixteen witnesses for the plaintiff, the case is for the jury; and if
 
 836 FRATERNAL SOCIETY LAW 
 
 the evidence be fairly and clearly submitted to them, a verdict and 
 judgment for plaintiff will be sustained. 
 
 Wall vs. Royal Society of Good Fellows, Oct.. 1S99, 192 Pa. St. 577. 
 
 Warranty — Breach of — Verdict for Society, 
 
 In an action upon a life insurance contract where it appears that 
 the insured stated in his application that he never had any serious 
 illness, when the undisputed evidence showed that a few months 
 before the date of the application he had been seriously ill with 
 typhoid fever, the defendant is entitled to binding instructions. 
 
 Meyers vs. Woodmen of the World, Nov., 1S99, 193 Pa. St. 470. 
 
 Identity, Evidence of. 
 
 In an action against a life insurance company where the only 
 question at issue is the identity of a dead body with that of the 
 insured, the case is for the jury where both parents of the insure<l 
 declare an absolute identity of the dead body with the person of 
 their son, the coroner identifies it from photographic pictures well 
 authenticated, and the absence of teeth correspond with the vacant 
 spaces in the jaw,s of the deceased. 
 
 Potter vs. Union Central Lite Ins. Co., April, 1900, 195 111. 557. 
 
 Warranty, Breach of. Avoids Contract. 
 
 "Where an applicant warrants that his answers shall be true, fail 
 and fair, and in answer to a question states that he had not since 
 childhood had the disease or disorder of spitting or raising of blood, 
 while the uncontradicted evidence was that he had spit blood, was 
 frightened and had consulted a physician about it, the answer being 
 if not untrue not full and fair, and being material to the risk, it 
 voided the policy. 
 
 Smith vs. Northwestern Mut. Life Ins. Co., May, 1900, 196 Pa. St. 314.
 
 THE STATE OF PENNSYLVANIA 837 
 
 Receiver for Insolvent Society. 
 
 A bill in equity by a certificate holder of a mutual life insurance 
 companj' for a receiver which does not aver insolvency and is not 
 instituted for the purpose of closing up the affairs of the society is 
 not fatally defective because the insurance commissioner is not 
 joined as a party defendant. 
 
 Treat vs. Penn. Mut. Life Ins. Co., May, 1901, 199 Pa. St. 326. 
 
 Beneficiary, Naming of by Will. 
 
 Where a member states in his application that the insurance shall 
 he paid to the devisees under his will, or in case of their death, to 
 his heirs at law, and the society certifies that it agrees to pay to 
 his devisees, or if no will specifically bequeathing the benefits which 
 shall be payable on account of this certificate shall appear and be 
 brought to the knowledge of the society within 60 days after the 
 death of the member, then to the heirs at law of the member, and 
 the member by his will gives, devises and bequeathes all his property 
 to his wife, the wife is entitled to the insurance money. 
 
 House vs. Northwestern Life Assurance Co., July, 1901, 200 Pa. St. 
 173. 
 
 Suicide, Sane or Insane Clause Valid. 
 
 No recovery can be had upon a contract where the member has 
 killed himself, if the contract contains the following provision : 
 
 "If the member holding this certificate shall die within three years 
 after becoming a member of this society, as a result of any means 
 or act which, had such means or act been used or done by him 
 while in possession of all his natural faculties unimpaired, would 
 be deemed self-destruction, then this certificate shall be null and 
 void and of no eff^ect. " 
 
 Keefer vs. Modern Woodmen of America, May, 1902, 203 Pa. St. 
 129-131.
 
 838 FRATERNAL SOCIETY LAW 
 
 Tribunals of Society, Decisions of Binding. 
 
 WluTy the coijstitution of a society provides that the loss of a 
 hand, foot, or eye shall be deemed a total disability, but that whether 
 any other injury shall be deemed a total disability shall be deter- 
 mined by a tribunal established by the constitution, the decision 
 of such tribunal is binding upon the members. 
 
 Sanderson vs. Brotherhood of Railroad Traintaen, Nov., 1902, 204 Pa. 
 St. 182. 
 
 Warranty, Duty of Court to Instruct in Case of Breach of. 
 
 Where an applicant warrants the truth of the statements made 
 in his aj^plication, and sets forth therein that he never had any 
 spitting of blood or any serious illness, and the evidence offered 
 by the company tends to show that the insured had consumption 
 during the year prior to the date of the policy, and died of that 
 disease thereafter, it is the duty of the trial court to instruct the 
 jury that the statements contained in the application were material 
 to the risk, and that if they were found to be false or untrue, they 
 would avoid the policy. 
 
 Murphy vs. Prudential Ins. Co., May, 1903, 205 Pa. St. 444. 
 
 Beneficiary — ' ' Nearest Friend. ' ' 
 
 A member of an imincorporated society named his wife as beue- 
 ficiaiy, and she so remained for eighteen years, when she died. 
 At the time when the certifieate was issued a member had the right 
 to change a beneficiary and designate another. After the death of 
 his wife the member substituted the name of a pei'.son described as 
 his nearest friend as beneficiary. Tlie change was in accordance 
 with the laws of the order and was approved by its officers, but 
 on the death of the member his sister claimed the proceeds of the 
 certificate as his only surviving heir at law. Held, that she was not 
 entitled to th(> fund and that it was payable to the person named m 
 the certificate. 
 
 Schoale.s vs. Order of Si)arta. May. 1903. 206 Pa. St. 11.
 
 THE STATE OF PENNSYLVANIA 839 
 
 Beneficiaries — Not Affected by Subsequent Changes in Law. 
 
 The act of April 6, 1893, limiting the payment of death benefits 
 by fraternal societies to "families, heirs, blood relatives, affianced 
 husband or affianced wife, or to persons dependent upon the mem- 
 ber" is prospective in its application and not retrospective, and 
 does not affect the rights of holders of certificates issued prior to 
 that time. 
 
 Schoales vs. Order of Sparta, May, 1903, 206 Pa. St. 11. 
 
 Beneficiary — No Vested Interest. 
 
 There is no vested interest in the beneficiary under a fraternal 
 society contract, but only an expectancy which cannot become a 
 vested or absolute right until the death of the member. 
 
 Brown vs. A. O. U. W., Jany., 1904, 208 Pa. St. 101. 
 
 Beneficiary — Right of Divorced Wife. 
 
 Where the laws of a society provided that a member might 
 designate as his beneficiary a member of his family, one related to 
 him by blood, or one dependent upon him, and did not require the 
 beneficiary to belong to one of the specified classes at the death 
 of the member, and the member designated his wife as beneficiary, 
 and gave her the certificate, which she retained until his death 
 twenty-four years thereafter, such beneficiary will be entitled to 
 the benefit although the member was divorced from her eight years 
 before his death, and subsequently remarried but continued to sup- 
 port his first wife and her children until his death, and never made 
 any change in the certificate. 
 
 Brown vs. A. O. U. W., Jany., 1904, 208 Pa. St. 101. 
 
 Trust Fund — Society Holds Members' Payments as Such. 
 
 A fraternal society sustains a relation towards its members other 
 than that of a mere life insurance company. The fund which it
 
 840 FRATERNAL SOCIETY LAW 
 
 controls is a trust fund, made up of eontributious of the members. 
 
 Blair vs. Supreme Council American Legion of Honor, March, 1904, 
 208 Pa. St, 262. ' 
 
 Beneficiaries — Brother as Trustee for Wife. 
 
 Where the charter of a society declared one of the objects of the 
 corporation to be the payment to the "widows, orphans, dependents, 
 or other beneficiary" whom the member has designated as the ob- 
 jects of the fund, and tlie constitution states one of the objects of 
 the society to be the payment to the member or his wife, or his 
 afHanced wife, or his children, or his blood relations, or persons 
 dependent upon the member whom he may have designated, it was 
 held that a brother may be designated as beneficiary, but that if it 
 appears that the brother was inserted without his knowledge as 
 trustee for the member's wife, who was at the time a minor, the 
 trust will be enforced, and at the wife's majority the fund will be 
 paid to her. 
 
 Donithen vs. Independent Order of Foresters, May, 1904, 209 Pa. 
 St. 170. 
 
 Beneficiary, Rights of Creditors. 
 
 As to the right of a member to have the amount of his benefit paid 
 over to a creditor. See 
 
 Fodell vs. Miller, Dec, 1S99, 193 Pa. St. 570. 
 
 Contract, When Liability Begins Under. 
 
 A fraternal society having two classes of member.?, social and 
 beneficiary, cannot be made liable for death benefits for one who 
 qualified as a social member but paid dues as a beneficiary member 
 wnth the understanding that if he did not pass the provided medical 
 examination a ])()r1i()ii <if his beneficiary dues were to be apj^lied to 
 his social dues and the balance returned to him, but who never 
 underwent an examination to determine if he was eligible to bene- 
 ficiary membership.
 
 THE STATE OF PENNSYLVANIA 841 
 
 Asselto vs. Supreme Tent Knights of the Maccabees, May 1899, 192 
 Pa. St. 5. 
 
 Insolvent — Rights of Members in Cases of Society Being. 
 
 A member of an insolvent society who, with ample notice of the 
 ' proceedings, stands by and permits a decree of dissolution of the 
 society to be entered by which the officers are directed to transfer 
 the assets to another company in consideration of the latter rein- 
 suring the members of the society, cannot after the delay of a year 
 and the distribution of the assets in accordance with the decree, be 
 heard to complain. 
 
 In re Mut. Benefit Co. ot Penna., March, 1899, 190 Pa. St. 355. 
 
 Forfeiture — Reinstatement Optional with Society. 
 
 A by-law of a society which provides that the executive com- 
 mittee shall have power to reinstate a delinquent member at any 
 time within a year on satisfactory evidence of good health, and upon 
 payment of all delinquent premiums, does not give a delinquent 
 member a legal or equitable right to reinstatement against the will 
 of the executive committee. Though the apijlicatiou for reinstate- 
 ment be made in time and the member be ready and willing to fully 
 comply with all the terms and conditions of the by-law, the com- 
 mittee is not bound to grant the application. 
 
 Harrington vs. Keystone Mut. Benefit Assn., Feb., 1S99, 190 Pa. St. 
 77. 
 
 Beneficiary, Right of Member to Change, Absolute. 
 
 The right of a member in good standing to change the bene- 
 ficiary named in his certificate by the substitution of another of 
 the class entitled, is absolute. Neither the assent of the beneficiary 
 nor the surrender of the certificate was necessary'. This right was 
 reserved in the application and in his certificate and has been recog- 
 nized by the order as fundamental, and it has been fully sustained 
 by the decisions of this court. 
 
 Hamilton vs. Royal Arcanum, Jan., 1899, 1S9 Pa. St. 273.
 
 842 FRATERNAL SOCIETY LAW 
 
 Expulsion, When Right may be Exercised. 
 
 Coui'ts may by mandamus compel the restoration of a member 
 expelled from a society, and where the charter contains no power of 
 expulsion, a member can be expelled only when he has been guilty of 
 some infamous offense or has done some act tending to the destruc- 
 tion of the society. 
 
 Weiss vs. Musical Mut. Protective Union, Jan., 1899, 189 Pa. St. 446. 
 
 Suicide — Sane or Insane Clause Valid. 
 
 A by-law providing that no benefit shall be paid on account of 
 the death of a member from suicide within five years after admis- 
 sion, whether the member taking his own life was sane or insane 
 at the time, is valid and legal. 
 
 Chambers vs. Supreme Tent, Knights of the Maccabees, July, 1901, 
 200 Pa. St. 244. 
 
 After-enacted Suicide Laws Valid. 
 
 Where at the time a per.sou became a member of a society the 
 by-laws provided that benefit should not be paid on account of the 
 death of a member from suicide within one year after admission, and 
 subsequently the by-laws were changed so as to extend the limit to 
 five years, and thereafter the member committed suicide, the 
 amended by-law was binding upon the member. 
 
 Chambers vs. Supreme Tent, Knights of the Maccabees, July, 1901, 
 200 Pa. St. 244. 
 
 Corporation — Right to Hold Meeting Outside of State of Charter. 
 
 The rule that a cor^joration must perform its corporate acts within 
 the state of sovereignty that gave it life does not apply to the action 
 of a benefit society incorporated in Pennsylvania and having sub- 
 ordinate councils and members throughout the United States, in 
 levying a per capita tax on its members at a corporate meeting 
 held outside of the limits of Pennslyvania. such an act being within
 
 THE STATE OF PENNSYLVANIA 843 
 
 the corporate powers and necessary to jtrovide revenue upon which 
 the existence of the corporation depended. 
 
 Derry Council vs. State Council, Oct., 1900, 197 Pa. St. 413. 
 
 Beneficiary After Interest Vests is a Society Creditor. 
 
 A beneficiary named in a contract between a member and a society 
 becomes after the death of the member a creditor of the society. 
 
 Soils vs. Blank, May, 1901, 199 Pa. St. GOn. 
 
 Warranty as to Age Must be Literally Kept. 
 
 Where an applicant for membei-ship stipulates for the absolute 
 truth of the statements made in his application, and makes a state- 
 ment as to his age which is in fact false, the benefit certificate is . 
 thereby rendered void aiul it is immaterial whether the statement 
 was intentionally and wilfully false. 
 
 Dinan vs. Supreme Council, Cath. Mut. Benefit Assn., Jan., 1902, 201 
 Pa. St, 363. 
 
 Creditors, Rights of Local Versus Foreign. 
 
 The Pennsylvania holders of matured death certificates of an in- 
 solvent society are entitled to payment out of a fund belonging to 
 the societ.y in Pennsylvania, and in the hands of an ancillary receiver 
 in the State, before the fund or any part of it is handed over to a 
 receiver of the society ap])ointed in the State of its domicile. Such 
 holders are business creditors of the association and not merely rep- 
 resentatives of deceased members. 
 
 Fi-owert vs. Blank, April, 1903, 205 Pa. St. 299. 
 
 Warranty as to Age — Evidence for Jury. 
 
 In an action against a society to recover a death benefit, where 
 the defense is that the member was over fifty years of age when 
 he was initiated, which was beyond the age limit permitted by the
 
 844 FRATERNAL SOCIETY LAW 
 
 constitution of the socii'ty, and the evidence on the subject is con- 
 flicting- and largely tui"us upon the credibility of the witnesses, the 
 case must be submitted to the jury for determination. 
 
 Dinan vs. Supreme Council, Cath. Mut. Benefit Assn., Dec. 1904, 210 
 Pa. St. 456. 
 
 Copies of Application to be Attached to Contract. 
 
 It is the duty of an insurance company to attach a copy of the 
 application and by-laws to a policy of insurance, and unless it is 
 attached they are not a part of the contract of insurance and are 
 not evidence on tlie jiart of the company in an action by the benefi- 
 ciary on the contract, nor in an action by the company to enforce 
 against the insured the payments of assessments levied in pursuance 
 of their provisions. 
 
 Custer vs. Fidelity Mut, Aid Assn., March, 1905. 211 Pa. St. 257. 
 
 Warranty as to Age, Evidence Under. 
 
 In an action against a society to recover a death benefit where 
 the defense is that the member was over fifty years of age when he 
 was initiated, which was beyond the age limit permitted by the con- 
 stitution, and there is oft'ered in evidence a statement by the de- 
 ceased, under oath, made in naturalization proceedings, showing 
 that the deceased at the time of his initiation was over fifty-six 
 years of age, and this evidence is unimpeaehed, a verdict should be 
 directed in favor of the society, 
 
 Dinan vs. Supreme Council, Cath. Mutual Benefit Assn., Jan., 1906, 
 213 Pa. St. 4S9. 
 
 Beneficiary — "Heirs at Law." 
 
 Where a foreign .society was chartered for the nnitual ]irotection 
 and relief of the members, and for payment of stipulated stims of 
 money to the family or heirs of deceased members of siich society, 
 and the certificate is issued payable to the member's legal repre-
 
 THE STATE OF PENNSYLVANIA 845 
 
 sentatives, it is held that the death benefits are payable upon the 
 member's death to his heirs at law, although he may, by will, have 
 given such benefits to certain designated relatives. 
 
 Harton's Estate, Jan., 1906, 213 Pa. St, 499. 
 
 Material Fact, What is? 
 
 A fact is material to the risk when, if known to the insurer, it 
 would luive caused him to refuse the risk, or would have been a 
 reason for his demanding a higher premium. 
 
 McCaffrey vs. Knights & Ladies of Columbia, Jan., 1906, 213 Pa. St. 
 609. 
 
 Statute of Limitations, When it Begins to Run. 
 
 The statute of limitations begins to run in favor of a member 
 against liis liability to pay an assessment to a receiver of a society 
 from the date of the decree of court authorizing the assessment, and 
 not from the date of tlie declared insolvency of the society. 
 
 Schofield vs. Turner, Jan., 1906. 213 Pa. St. 548. 
 
 Warranty — Knowledge of Agent as to False Statements Under, Not 
 Admissible. 
 
 In an action where" the defense was misrepresentation, it was 
 claimed that the agent had inserted false answers in the application. 
 Upon this point the Court said: 
 
 "Her application was in writing, was signed by her, and it was 
 the basis upon which the contract of insurance was issued. This 
 suit was brought upon the policy, and upon the application as part 
 thereof, without any averment in the declaration that any fraud 
 or mistake was committed in making out the application. If the 
 evidence offered tended to prove anything it would be fraud or 
 misconduct on the part of the agent in inducing applicant to sign 
 a statement contrary to the truth, but there is no such averment in 
 the declaration. The application for the policy, by its plain terms.
 
 846 FRATERXAL SOCIETY LAW 
 
 brought to the assured distinct notice of a limitation upon the power 
 and authorit.y of the agent in that it contained an explicit agree- 
 ment that no statement or declaration made to any agent, examiner, 
 or any other person, and not contained in the application, should be 
 considered as having been made to or brought to the notice of the 
 company, or as charging it with any liability by reason thereof 
 * * * Good faith required of her correct answers to the questions 
 and reasonable diligence to see that the answers were correctly 
 written. If it be assumed that the answers were falsified as alleged, 
 that fact would at once appear when the policy was delivered to her, 
 by the copy of the application attached to it. Inspection would 
 have shown that a fraud had been committed both upon her and 
 the company, and it would have been her plain duty to make the 
 facts known to the company. She had it within her power to pre- 
 vent the fraud, as knowledge of it was within her reach. Neither 
 she nor her beneficiary can be permitted to take the fruits of the 
 misrepresentation. ' ' 
 
 Rinker vs. Aetna Life Ins. Co., April, 1906, 214 Pa. St, COS. 
 
 Beneficiaries — Children by Difi'erent Wives. 
 
 A widower with six children married a widow with one child and 
 had by her two children. After his marriage he made a contract 
 of insurance payable to his wife in trust for herself and their chil 
 dren. Held, That the children by the first wife were entitled to 
 share in the proceeds of the contract. 
 
 Lehman vs. Lehman, May, 1906, 215 Pa. St. 344. 
 
 Forfeiture — Self-executing Provisions for Valid. 
 
 Where the by-laws provide that each member shall pay the 
 amount according to age, as per table, and that any member failing 
 to pay same before the last meeting night of each month will stand 
 suspended from the society and all benetits therefrom, payment by 
 cash mailed on the last day of the month, but not received by the 
 society until the following day, is not a payment within the meaning 
 of the by-law, and failure to make the payment within the time
 
 THE STATE OF PENNSYLVANIA 847 
 
 prescribed, works suspension of th^' nuMiiber without any action on 
 the part of the society. 
 
 Beeman vs. Supreme Lodge, Shield of Honor, June, 1906, 215 Pa. St. 
 627. 
 
 Eesort to Courts, Member Must Exhaust Remedies in Society Before 
 He Has a Right to. 
 
 Where the laws of a society provide that in case of a dispute 
 about suspension or expulsion, no suit shall be brou^dit against the 
 society until the remedies and means of redress provided by the 
 society shall be exhausted, a beneficiary cannot maintain a suit 
 against a society where it appears that neither the member nor the 
 beneficiary sought in an.y way to avail himself of the remedies and 
 means of redress itrovided by the society. Such laws are binding 
 upon the society and its members. 
 
 Beeman vs. Supreme Lodge, Shield of Honor, June, 1906, 215 Pa. St. 
 627. 
 
 Warranty, Breach of, Evidence Under. 
 
 In an action upon a certificate where the defendant sets up false 
 representations by the member as to his health, and there is evi- 
 dence tending to show that the applicant was afflicted with a linger- 
 ing and progressive disease at the time when the application was 
 made, it is proper to admit in connection therewith evidence of the 
 continuance of the same disease afterw;ards until death, and also 
 proper to admit in evidence declarations made by the applicant prior 
 to the date of the certificate as to suffering from a disease which he 
 denied ever having had when making application for membership. 
 
 Nophsker vs. Supreme Council. Royal Arcanum, June, 1906, 215 Pa. 
 St. 631. 
 
 Suicide, Proofs of Death Prima Facie Evidence of. 
 
 In an action on a contract where the company sets up as a de- 
 fense that the deceased committed suicide within two years from
 
 848 FRATERNAL SOCIETY LAW 
 
 the date of the contract in violation of its terms, proofs of death are 
 admissable as prima facie evidence of suicide where such proofs 
 show that the cause of death was suicide, but they are not con- 
 clusive upon that question. 
 
 Felix vs. Fidelity Mut. Life Ins. Co., June, 1906, 216 Pa. St. 95. 
 
 Suicide — Facts Sufficient to Establish. 
 
 In an action on a contract the society set up suicide as a defense. 
 The coroner was called and testified that he found the deceased 
 sitting in his ofSce chair with the top of his head blown off, his arms 
 down, and a shotgun resting between his legs, with a loop of twine 
 through the trigger-guard around his right foot. This testimony 
 was not contradicted and it was held sufficient to justify a verdict 
 of suicide. 
 
 Felix vs. Fidelity Mut. Life Ins. Co., June, 1906, 216 Pa. St. 95. 
 
 Beneficiary — Daughter Versus Brother of Member. 
 
 Where a society has paid the fund into court and a contest has 
 arisen between a minor daughter of the deceased member and a 
 brother of the member, judgment for the daughter will be sustained 
 where it appears that the mother of the daughter was originally 
 named the beneficiary; that she was given the certificate by her hus- 
 band with the assurance that he would never change it, and that 
 the wife, relying upon this assurance, paid out of her separate 
 estate the assessments and charges upon the certificate until the 
 time when, without her knowledge or consent, her husband sur- 
 rendered it to the societ.v for a new certificate in which his brother 
 was substituted as a beneficiary. 
 
 King vs. Supreme Council, Catli. Mut. Benefit Assn., Jan., 1907, 
 216 Pa. St. 553. 
 
 Custom — What is. 
 
 In order to establish the validity of a custom or usage, it must
 
 THE STATE OF PENNSYLVANIA Si9 
 
 have existed so long as to become generiiUy known, and it must be 
 clearly and distinctly proved. 
 
 Lockney vs. Police Beneficiary Assn., April, 1907, 217 Pa. St. 568. 
 54
 
 850 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF RHODE ISLAND. 
 
 CHAPTER 40. 
 
 The Insurance Commissioner for the State of Rhode Island has 
 issued a pamphlet containing a synopsis of the insurance laws of 
 the State, etc., and from it Ave quote the following: 
 
 "Fraternal Beneficiary Associations. 
 
 "Fraternal beneficiary associations operating upon the lodge sys- 
 tem and not employing paid agents are exempt from State super- 
 vision. The only legal requirement affecting this class of companies 
 is that they file with the Secretary of State a power of attorney 
 authorizing some person who is a resident of the State to accept all 
 service of process in legal proceedings." 
 
 The court decisions affecting Fraternal Societies are the following 
 eases : 
 
 Agency — Authority of Collector. 
 
 The presumptive authority of a collector is much slighter than 
 that of one who receives applications for insurance and delivers 
 contracts. 
 
 Bryan vs. National Life Ins. Assn., Jan. 1899, 21 R. I. 149. 
 
 Agency — Waiver and Estoppel. 
 
 A contract having lapsed on the 15th of the month by reason of 
 non-payment of an assessment due on that day. a collector after-
 
 THE .STATE OF RHODE ISLAND 851 
 
 wards called at the liouse of tin- insni-c(l and, not reooiving the pay- 
 ment, ]>i-oiiiised to call again. Held, that this did not amount to a 
 waiver or an estoppel. 
 
 Bryan vs. National Life Ins. Assn., .Tan. 1899, 21 R. I. 149. 
 
 Assessments, Members Presumed to Know Rights Under. 
 
 The form of insurance under the plan of beneficial associations, 
 based upon assessments as distinguished from fixed premiums, is 
 now so common that the court is bound to take notice of the char- 
 acter and efi'eet of such plan and to presume that members of such 
 associations know that their cei-tifieates are not absolute ])romises, 
 but conditional upon the amounts received from assessments. 
 
 Newton vs. Northern Mut. Relief Assn., Nov, 1899, 21 R, I. 476, 
 
 Agent, When Not Personally Liable. 
 
 An action will not lie against an agent of a society in favor of a 
 member for wrongfully refusing to comply with the by-laws relative 
 to obtaining sick benefits by such member. The remedy of the mem- 
 ber is against the societv. 
 
 Gleavy vs. Walker, April, 1900, 22 R. I. 70. 
 
 Beneficiary — Insurable Interest. 
 
 The question of insurable interest can only be raised b.v the in- 
 surer, and where the latter pays the fund into court under a bill of 
 interpleader, the question is removed. 
 
 John Hancock Mut. Life Ins. Co. vs. Lav.-cier, Feb. 1901, 22 R. L 416. 
 
 Contract, Medical Examination Not Part of. 
 
 The answers of a medical examiner made to questions propounded 
 to him and answered by him in connection with an application for 
 a contract of insurance, which medical examination is not signed
 
 852 FRATERNAL SOCIETY LAW 
 
 by the applicant, are not to be considered a part of the application 
 nor of the contract made with the applicant. 
 
 Leonard vs. New England Mut. Life Ins. Co., March, 1901. 22 R. I. 519. 
 
 Incontestable Clause, Extent of. 
 
 The insurer is bound by a provision in the contract which reads: 
 "This policy shall l)e incontestable after two years from the date 
 of its i.ssue, provided the prennums are paid as agreed," and is pre- 
 cluded from setting- up a defense based upon false and fraudulent 
 answers made by the insured in his application. 
 
 Murray vs. State Mut. Life Ass'n Co., Marcli, 1901, 22 R. I. 524. 
 
 Agency of Medical Examiner That of Society. 
 
 Where the rules of the company required the medical examiner 
 to put the questions and fill out the answers in his own handwriting, 
 he was in this respect the agent of the company, and if he received 
 correct answers and took the signature of the applicant before the 
 answers were recorded, this must be regarded as the action of the 
 company, and not within the rule that the writer of the application 
 is the agent of the insured. 
 
 Leonard vs. State Mut. Life Assurance Co., March, 1902, 24 R. I. 7. 
 
 Agency of Medical Examiner Limited. 
 
 A medical examiner required to iill out a medical certificate is not 
 the agent of the company for anything more than the certificate. 
 Notice to him of anything not called for by the certificate is not 
 notice to the company. He is without authority to waive answers 
 or to give advice binding on the company. 
 
 Leonard vs. State Mut. Lite Assurance Co., March, 1902, 24 R. t. 7. 
 
 Warranty — Falsity of the Answers and Not Fraud the Test. 
 
 Under the rule making the answers of an insured warranties, the
 
 TBE STATE OF RHODE ISLAND 853 
 
 falsity of the answers and not the fraud of tho insurod is tlie test. 
 Leonard vs. State Miit. Life Assurance Co., March, 1902, 24 R. I, 7. 
 
 Contract — When Agreement for is Merged Into. 
 
 A deceased member of a local society, with other members, became 
 a member of a national society, and in his application for benefits 
 in the latter he released all his mortuary benefits in the former. 
 This was in pursuance of an agreement by which the local society 
 was to pay the entry fees of such of its members as joined the 
 national society. While the transfer was only partly consummated, 
 ami before any certificate was issued on the application of the de- 
 ceased, he died, and the national society, claiming that the deceased 
 was not entitled to mortuary benefits in both societies, proposed to 
 pay the widow the sum v.-hich would have accrued to the member's 
 representative if he had fully completed his membership, if she 
 would assign to the national society her claim for benefits in the 
 local society, which she did. The widow later claimed benefits in 
 both societies, and on interpleader it was held that the terms of the 
 application substituted one right for the other, and that the local 
 society was entitled to the fund. 
 
 L'Union St. Jean Baptiste vs. Salomie Couture. July, 1902, 24 R. L 
 304. 
 
 Members Responsible for Acts of Society. 
 
 The individual members of voluntary societies are liable for all 
 acts of the society which are done within the scope of its authority, 
 although they may be absent from the meeting at the time when 
 such action is taken. 
 
 McDermott v. St. Wilhelmina Benev. Society, Dec, 1902, 24 R. I. 527. 
 
 Expulsion, Member Entitled to Notice of Charges Before. 
 
 While a member of a society is entitled to notice of charges and 
 opportunity for defense, which includes a specification of the
 
 854 FRATERNAL SOCIETY LAW 
 
 charges against which he is to defend, yet when he has actual notice 
 of the particular charge, he has all that he can claim, even though 
 it may not be formally stated. 
 
 Pepin vs. Societe St. Jean Baptiste, Dec, 1902, 24 R. I. 550, 
 
 Assessments Are Not Recoverable Against Members. 
 
 The assessments in a fraternal society are not to be regarded as 
 debts recoverable at law. 
 
 L'Union St. Jean Baptiste vs. Ostiguy, Nov., 1903, 25 R, I, 47S. 
 
 Beneficiaries — Where Failure of. 
 
 The by-laws of a society provided that upon the death of a mem- 
 ber the amount insured should be paid one-half to the widow or 
 husband and one-half to the children, or, if there be no children, 
 the whole to the widow or husband, or, if no widow or husband, 
 then to the next of kin. The deceased member left neither widow 
 nor children, nor, so far as known, any next of kin. It was held that 
 the fund did not go to the executrix as part of the member's estate. 
 
 Gould vs. United Traction Employes' Aid Assn., April, 1904, 26 R. I. 
 142. 
 
 Expulsion — An Incident to the Usual Powers of Societies. 
 
 The power of expulsion iu a fraternal society is included in what 
 may be denominated its police power, and the corporation may right- 
 fully establish by-laws providing for the expulsion of members who 
 transgress their reasonable pruvisioiis. ^Members who were expelled 
 for .the publicatioji of an article in a new.spaper, which article is 
 defamatorj- and holds the society, and its officers up to ridicule, 
 were guilty of such conduct as to warrant their expulsion. 
 
 Del Ponte vs. Societa Italiana, Jan., 1905, 27 R. I. 1, 
 
 Resort to Civil Court, Right of in Members. 
 
 A tribunal which has questionable authority to settle disputes,
 
 TBE STATE OF RHODE ISLAND 855 
 
 or which has only a limited authority, and which assumes to itself 
 power to discipline members without any express prdvisions in the 
 law therefor, cannot be held to have exclusive jurisdiction, and the 
 action of such tribunal need not be appealed from in the absence of 
 express provison for such appeal, and aggrieved members may with- 
 out proceeding further resort to the civil courts for remedy. 
 
 Moeller vs. Machine Printers' Beneficial Assn., Feb., 190.5, 27 R. I. 22. 
 
 Representations, Materality of, Act Respecting Not Retroactive. 
 
 The provisions of the public law of 1902 providing that no mis- 
 statement made in procuring a contract of life insurance shall be 
 deemed material or render the cimtract void unless the matter thus 
 represented shall actually have contributed to the contingency or 
 event on which the contract is to become due and payable ; and 
 whether the matter so represented contributed to said contingency 
 or event in any case is a question for the jury, has no application to 
 contracts existing at the time of the passage of said act. 
 
 Leonard vs. State Mut. Life Assurance Co., April, 1905, 27 R. I. 121. 
 
 Limitations, Statute of in Societies Valid. 
 
 The provisions in a contract providing that no suit shall be main- 
 tained unless brought within two years after the maturity' of the 
 claim, is held valid. 
 
 Wilkinson vs. John Hancock Mut. Life Ins. Co., May, 1905, 27 R. I. 
 146. 
 
 Estoppel — Definition of. 
 
 Waiver is not in the proper sense a species of estoppel, unless the 
 conduct of one party has induced the other to take such a position 
 that he will be injured if the first party is permitted to repudiate his 
 acts. 
 
 Dary vs. Providence Police Assn., Nov., 1905, 27 R. I. 377.
 
 856 FRATERNAL SOCIETY LAW 
 
 Interest, When Proper to Allow. 
 
 Interest is allowable though not stipulated for, as an invariable 
 legal incident to a principal debt from the date of default, when- 
 ever the debtor knows precisely what he is to pay and when he is 
 to pay it; but a beneficial association ought not to be treated as a 
 delinquent debtor before demand made upon it, followed by its 
 refusal or neglect. While demand was unnecessai-y in the circum- 
 stances of the case for the purpose of keeping the claim alive, it was 
 necessary for the purpose of creating the relation of debtor and 
 creditor. 
 
 Dary vs. Providence Police Assn., Nov., 1905, 27 R. I. 377. 
 
 Resort to Civil Courts Permissible. 
 
 A by-law of a fraternal benefit society which requires every con- 
 testation between the society and members to be referred to and 
 decided by a committee of five persons, whose decision shall be final, 
 is invalid and no defense to an action brought by a member against 
 the society. 
 
 Pepin vs. Societe St. Jean Baptiste, June, 1901. 23 R. I. SI. 
 
 Courts, When Authorized to Interfere With Internal Affairs of 
 Societies. 
 
 Courts will not interfere with the by-laws of a society which re- 
 late simply to matters of internal administration or discipline, nor 
 which amount to a condition precedent to a right of action, but 
 by-laws whicli deprive a person of his remedy at law, or impose con- 
 ditions repugnant to the recognized rules of law in other eases of 
 contracts, are invalid. The court said : 
 
 "At first sight this may seem to interfere with the obligatidu of a 
 contract, but it is not so. All the elements of a contract affecting 
 liability remain, the agreement to arbitrate relating only to remedy. 
 It is to be presumed that a just decision will be reached in either 
 case, and hence neither party suffers injury. A resort to the courts 
 may lie very necessary to a claimant, because he cannot compel the
 
 THE HTATE OF RHODE ISLAND 857 
 
 attendance of witnesses before a voluntary tribunal, or the matter 
 may be of so great interest to the members as to preclude impartial 
 arbitrators. The society, on the other hand, may at any time, if it 
 does not wish to arbitrate, compel a claimant to resort to the courts 
 by refusing to arbitrate or to pay; hence the obligation is not mutual 
 except ill theory." 
 
 Pepin vs. Societe St. Jean Baptiste, June, 19011 23 R. I. 81. 
 
 By-laws, Reasonable Construction to Carry Out Meaning Proper. 
 
 A by-law of a fraternal beneficiary society foi-bidding a sick mem- 
 ber to go out of the house after certain hours, the intent of the by- 
 law being to guard against fraud in feigning sickness, has no appli- 
 cation where, on the occasions of the alleged violation, the member 
 attended meetings of the defendant lodge. 
 
 Gleavy vs. Court Love and Truth, June, 1901. 23 R. I. 85. 
 
 Liability for Benefits, When Begins. 
 
 "Where a by-la^ provides that sick pay shall not commence until 
 the secretary has received a certificate signed by the physician of 
 the society stating the member's illness, after the physician is noti- 
 fied of such illness, the matter of putting the member on the sick 
 list is the act of the society and not of the member. 
 
 Gleavy vs. Court Love and Truth, June, 1901, 23 R. L 85. 
 
 Receivership — No Assessments for Subsequent Losses. 
 
 The losses of an insurance company sustained after the appoint- 
 ment of a receiver are not to be provided for by assessment on the 
 remaining contracts, such an appointment of a receiver being a dis- 
 solution of the company, and its contracts are to be treated as ter- 
 minated by operation of law. 
 
 Insurance Commissioner vs. Commercial Mutual Ins. Co., March, 
 H 1897, 20 R. I. 7. 
 
 I 
 
 i
 
 858 FRATERNAL SOCIETY LAW 
 
 Waivers, True Rule as to. 
 
 The general rule that the acceptance by an insurance company 
 of the premium after full knowledge of the violation of the condi- 
 tions of the policy is a waiver of any forfeiture because of such 
 violation, applies to all causes of forfeiture. 
 
 Milkman vs. United Mut. Ins. Co., March, 1897, 20 R. I. 10. 
 
 Beneficiary — Change of^ — Negligence of Society No Bar. 
 
 The assured in a contract of insurance had reserved the right to 
 change the beneficiary with the consent of the society, and had exer- 
 cised this right and forwarded the proper paper to the society's 
 ofSce. The member died before the society had consented or refused 
 to consent to the change; the delay being due to the negligence of 
 the societj'. Held, that the new beneficiary named in the application 
 for change of beneficiary was entitled to the fund. 
 
 John Hancock Mut. Life Ins. Co. vs. White, April, 1898, 20 R. I. 457.
 
 THE STATE OF SOUTH CAROLINA 859 
 
 h 
 
 THE 
 
 STATE OF SOUTH CAROLINA. 
 
 CHAPTER 41. 
 
 The State of South Carolina has no statute law applicable to Fra- 
 ternal Societies. Such decisions of the Supreme Court of this State 
 as affect questions of Fraternal Society Law are digested as follows: 
 
 Beneficiary — Insurable Interest. 
 
 An assignment of an insurance contract valid in its inception 
 remains so, and the person may insure his own life for the benefit of 
 one who has no insurable interest in his life, if the transaction is not 
 a cover to evade the law against wagering contracts. 
 
 Crosswell vs. Conn. Indemnity Assn., April, 1S97, 51 S. C. 103. 
 Assessments — Forfeiture for Failure to Pay. 
 
 A mutual insurance company whose by-laws are made part of 
 the contract, and A^hich provides that a contract is void on failure 
 to pay an as.sessment within thirty days after notice, is not liable on 
 such contract after the assessments become past due, and remain 
 unpaid. 
 
 Joye vs. South Carolina Mut. Ins. Co., Nov., 189S. 54 S. C. 371. 
 Denial of Liability — When Not Waived by Compromise of Claim. 
 
 The adjustment and compromise of a loss is not a waiver of the 
 right to deny liability where the settlement papers state that such 
 ad.iustment shall not be considered such waiver. 
 
 Joye vs. South Carolina Mut. Ins. Co.. Nov . 1S9S. 54 S. C 371.
 
 860 FRATERNAL SOCIETY LAW 
 
 Ownership in Property and Funds After Forfeiture of Charter. 
 
 If an incorporated society permits its charter to expire but keeps 
 up its organization and work, the individual members become the 
 owners of its property and funds. 
 
 Stemmermann vs. Lilienthal. Nov., 1898, 54 S. C. 440. 
 
 Voluntary Societies — Who May Sue. 
 
 The right of action for obligations due a voluntary association is 
 in the members, or the officers as the agents of the members, and 
 several members of such an association may bring an action against 
 a defaulting trea-surer and his sureties for the benefit of all. 
 
 Stemmermann vs. Lilienthal, Nov.. 1898, 54 S. C. 440. 
 
 Denial of Liability Waives Proofs of Loss. 
 
 A denial of liability under a contract waives the right to proofs 
 of loss as required by the contract. 
 
 Wilson vs. Commercial Union Assurance Company, Nov., 1897, 51 
 S. C. 540. 
 
 Waiver, Doctrine of, Applicable to Societies. 
 
 The doctrine of waiver as applied to old line insurance companies 
 also applies to mutual insurance companies, antl failure of the com- 
 pany to request further proof of loss, and contesting claim of loss on 
 its merits, is a waiver of the right to object to the form of the proofs 
 of loss. 
 
 McBryde vs. South Carolina Mut. Ins. Co., April, 1899, 55 S. 0. 589. 
 
 Fraternal Societies Governed by General Rules of Waiver. 
 
 Mutual insurance companies and fraternal benefit societies are 
 governed by the same rules of law as to waiver as old line insurance 
 companies.
 
 THE STATE OF SOUTH CAROLINA 861 
 
 Sparkman vs. Supreme Council Am. Legion of Honor, Nov., 1899, 
 57 S. C. 16. 
 
 Agency Not Shown by Declarations of Agent. 
 
 Agency cannot be shown by the declarations of the agent. The 
 society may, before the delivery of its contract, waive a condition 
 precedeiit which is solely for its benefit. 
 
 Going vs. Mut. Benefit Life Ins. Co., April, 1900, 58 S. C. 201. 
 
 Forfeitures, Must be Pleaded Specially. 
 
 Where a comjilaint alleges that all conditions of the contract have 
 been performed, and the answer is merely a denial of the allegations 
 of the complaint, the society will not be permitted to prove condi- 
 tions of forfeiture, and if same are to be relied upon they must be 
 specifically alleged. 
 
 Pickett, Receiver vs. Fidelity & Casualty Co., Nov., 1900, 60 S. C. 477. 
 
 Misrepresentation — What Must be Regarded as Fraudulent. 
 
 Statements made by an applicant to an examining physician, or 
 matters concealed by the ajsplicant for the evident purpose of in- 
 ducing the society to accept him. must be regarded as a fraud 
 practiced upon the society. 
 
 Drakeford vs. Supreme Conclave, Knights of Damon. April. 1901, 
 61 S. C. 338. 
 
 Intemperate Habits, What is, a Question of Law. 
 
 Whether the occasional use of intoxicating liquors or an occasional 
 case of excess in such use, renders a person of intemperate habits, 
 is a question of law ; but it is for the jury to determine whether the 
 use or excess is occasional or habitual in a particular case. 
 
 Drakeford vs. Supreme Conclave, Knights of Damon, April, 1901, 
 61 S. C. 338.
 
 862 FRATERNAL SOCIETY LAW 
 
 Compromise — Will Not be Set Aside Before Tender Back of Pay- 
 ment Made. 
 
 Where the insured accepts from the company a sum less than the 
 amount called for in the contract in satisfaction of his loss, he can- 
 not afterwards sue the company for the balance under the contract 
 without repaying or oifering to the company the amount so paid, 
 although he may allege the amount was so accepted by reason of the 
 fraud and false representation of the defendant's agent. 
 
 Riggs vs. Home Mut. Protection Assn.. April, 1901, 61 S. C. 448. 
 
 Suicide Clause Valid. 
 
 A clause in a certificate excepting from the risk assumed a mem- 
 ber's death by his own hand or act, whether sane or insane, is not 
 void as against public policy, or for want of mutuality. 
 
 Latimer vs. Sovereign Camp, Woodmen of the World, April, 1901, 
 62 S. C. 145. 
 
 Suicide, Sane or Insane, Clause Valid — Mental Condition Imma- 
 terial. 
 
 Under a suicide clause excepting death by suicide, whether the 
 member be sane or insane, no recovery can be had if the member 
 suicided ; and whether he was in such mental condition as to form an 
 intention to take his own life or understand the effect or result of 
 his act or not. is immaterial. 
 
 Latimer vs. Sovereign Camp. Woodmen ot the World. April, 1901, 
 62 S. C. 14.5. 
 
 Warranties — Limitations Respecting. 
 
 Statements in an application reading, "I adopt as my own, war- 
 ranting them to be true and complete, statements of all material 
 facts within my knOAvledge," are held as simply warranties as to 
 the truth of facts within the applicant's knowledge. 
 
 Thompson vs. The Family Protective Union, April, 190.^, 66 S. C. 459.
 
 THE STATE OF SOUTH CAROLINA 863 
 
 Name of Society, Changing of, Does Not Aifect Right of Members. 
 
 The changing oi' tlic name of a corporation does not cIimiikc its 
 liabilities or rights, and members of the society before the change 
 in name are members afterwards. 
 
 South Carolina Mut. Ins. Co. vs. Price, April, 1903, 67 S. C. 207. 
 
 Agency of Local Lodges in Initiating Members — Society Liable for 
 Damages From. 
 
 The local camps of the Woodmen of the World are agents of the 
 Sovereign Camp, and the Sovereign Camp is liable for injuries in- 
 flicted on a member by a local camp in initiating him by means of a 
 mechanical goat, although such contrivance was not authorized by 
 the Sovereign Camp. 
 
 Mitchell vs. Leech, April, 1904, 69 S. C. 413. 
 
 Beneficiary — ' ' Wife and Heirs. ' ' 
 
 An insurance contract payable to "my wife and heirs of my 
 
 body," goes to the widow and children as individuals and not to the 
 personal representative of the deceased member. 
 
 Bramlett vs. Mathis, Nov., 1904, 71 S. C. 123. 
 
 Waiver — When Facts are for the Jury. 
 
 The receipt of a policy by the local agent who held it at the re- 
 quest of the insured, the non-payment of the premium not being the 
 cause for the retention, as the premium had been proffered, the ten- 
 der of premium after illness, and again after death, are facts from 
 which the jury might infer waiver of the condition in the applica- 
 tion which reads that "this contract shall not take effect until the 
 first premium has been paid during my good health." 
 
 Dargan vs. Equitable Life Assurance Society, Nov, 1904, 71 S, C, 356. 
 
 I 
 
 t
 
 864 FRATERNAL SOCIETY LAW 
 
 Contract When Begins and Waiver of Provisions by Agent. 
 
 The provision that there shall be no contract of insurance until 
 the application is accepted by the home office, is valid and binding, 
 and it is incompetent to admit declarations of an agent that the 
 insurance was to begin from the date of the receipt of the premium. 
 
 McGrath vs. Piedmont Mut. Ins. Co., April, 1906, 74 S. C. 69. 
 
 Jurisdiction — Where Suit May be Brought. 
 
 A domestic insurance corporation cannot be sued in a county in 
 which it has issued a contract, unless it has an agent in such county. 
 The jurisdiction of the court is a siibject matter, and the right to 
 change of venue is not waived by answer to the merits. 
 
 Nixon and Danforth vs. Piedmont Mut. Ins. Co., April, 1906. "4 S. 0. 
 438. 
 
 Evidence — Parol Agreement Not Admissible to Defeat Term of Con- 
 tract. 
 
 Oral evidence as to the agreement between the parties before the 
 execution of the contract is inadmissible; and where the kind of 
 contract is not delivered that was agreed to be delivered, the only 
 damage sustained by the applicant for failure to deliver the con- 
 tract desired, is the value of the advance payment made by him. 
 
 Prince vs. State Mut. Life Ins. Co., Supreme Ct. of S. C. June, 1907, 
 57 S. E. 766. 
 
 Beneficiary — Rights of Wife. 
 
 A certificate provided for the payment of $3,000.00 on the death 
 of the member to the beneficiary named therein, who under the 
 by-laws was required to be "wife, children, adopted children, par- 
 ents, etc," with the proviso that if the member outlived the bene- 
 ficiary named and died without leaving another beneficiary, the 
 certificate should be paid to the member's next living relations in 
 the order named. A member named his wife as beneficiary, and
 
 THE STATE OF SOUTH GAROLiyA 865 
 
 she died, and he married again leaving a second wife without having 
 changed his beneficiary in the certificate. Held, that the second 
 wife took the benefit. 
 
 Speegle vs. Sovereign Camp, Woodmen of the World, Supreme Ct. 
 of S. C, Aug., 1907, 5S S. E. 435. 
 
 Forfeiture — Reinstatement of Member. 
 
 A provision in a certificate to the effect that a member's being in 
 arrears for four weeks shall render the certificate void, but that 
 the same may be reinstated by the member's paying the regular 
 initiation fee and presenting the certificate, was held to be valid, 
 and that a member in arrears t'diii- weeks for dues, forfeited his 
 certificate, but that such forfeiture may be waived by the society's 
 accepting dues thereafter. 
 
 Singleton vs. Progressive Benefit Assn., Supreme Ct. S. C, August, 
 1907, 58 S. E. 609. 
 
 Resort to Civil Court — When Right to. 
 
 Where a society denies liability on a contract which provides 
 that no suit shall be brought thereon until the assessment has 
 been made, and the society refuses to make an assessment, the mem- 
 ber may sue at law for breach of contract and recover the amount 
 he would have been entitled to if the company had made an assess- 
 ment. 
 
 Batson vs. Soutli Carolina Mut. Ins. Co.. Supreme Ct. S. C, Oct., 
 1907, 58 S. E. 936. 
 
 Rules of Law Applicable to Societies. 
 
 Mutual benefit associations are generally governed by the same 
 
 rules of law as old line insurance companies. 
 
 Morrison vs. Mut. Benev. Assn., Supreme Ct. S. C, Oct., 1907, 59 
 S. E. 27. 
 55
 
 866 FRATERNAL SOCIETY LAW 
 
 Forfeiture — Applies to all Members. 
 
 The laws of a mutual, benefit society requiring the payment of dues 
 provided that if a member has not belonged to the society for twelve 
 mouths he is only required to pay pro rata, and that any member 
 failing to pay the annual dues within a given time shall be dropped 
 from membership. It was held that the provision for forfeiture 
 applied as well to members joining during the year as to those be- 
 longing at the beginning of the year. 
 
 Morrison vs. Miit. Benev. Assn., Supreme Ct., S. C, Oct., 1907, 59 
 S. E. 27.
 
 THE ^TATE OF SOUTH DAKOTA 867 
 
 thf: 
 STATE OF SOUTH DAKOTA. 
 
 CHAPTER 42. 
 
 The State of South Dakota has never enacted a special code for 
 Fraternal Societies but they come under Article 18. Cluijjter 1 of the 
 Civil Code and certain other i)rovisioiis of the ^eueral insurance 
 laws of the State seem to apply to them. The folldwinu sections of 
 said article 18 are pertinent: 
 
 Section 706. Every corporation or association organized under 
 the laws of this State upon the mutual assessment, co-operative or 
 natural premium plan for the purpose of insuring the lives of in- 
 dividuals or furnishing benefits to the widows, heirs, orphans or le,ga- 
 tees of deceased members, or furni.shing accident indemnity, shall, 
 before commencing business, comply with the provisions of this 
 article. 
 
 Section 707. The articles of incorporation of such organization 
 shall show the plan of business, and shall be submitted to the com- 
 missioner of insurance and attorney general, and if such articles are 
 found to comply with the provisions of this article they shall approve 
 the same. When said articles are thus approved the.v shall be re- 
 . corded in the office of the commissioner of insurance of the State of 
 South Dakota, and a notice published as provided for under the gen- 
 eral laws for the organization of fire insurance companies. 
 
 Section 708. No corporation or association organized under this 
 act shall take any name in use by any other organization, or so 
 closely resembling such name as to mislead the public as to its 
 identity.
 
 868 FRATERNAL SOCIETY LAW 
 
 Section 709. Each assdeiation organized under this act sliall, be- 
 fore issuing any policy or certificate of membership, if said associa- 
 tion has not the membership sufficient to pay the full amount of the 
 certificate or policy on an assessment, cause the application for insur- 
 ance to have printed in red ink in a conspicuous manner aloiif;- the 
 margin of said application the words "it is luiderstood and agreed 
 that the amount to be paid when the certificate or policy ^issued upon 
 this application becomes a claim shall be dependent upon the amount 
 collected from an assessment made to meet such claim," and they 
 must have actual applications on at least two hundred and fifty in- 
 dividual lives for at least one thousand dollars each; and the presi- 
 dent, secretary and treasurer of such corporation or association shall 
 file with the commissioner of insurance a joint bond with good and 
 sufficient securities in the sum of ten thousaTid dollars to be approved 
 by the said commissioner of insurance, for the faithful discharge 
 of their duties as such officers: thei'e shall be filed with the commis- 
 sioner of insurance a list of said applications, giving the name, age 
 and residence of each applicant, and the amount of insurance applied 
 for by each, together with the annual dues and the proposed assess- 
 ments thereon, which statement shall be verified under oath by the 
 president and secretary of the association. 
 
 Section 710. No person shall act, within this State, as agent or 
 otherwise, in receiving or- procuring applications for insurance for 
 any assessment association, except for the purpose of taking applica- 
 tions for organization, unless the corporation or association for which 
 he is acting has received a certificate from the commissioner of insur- 
 ance as provided for in this article authorizing said corporation or 
 association to transact business in this State ; nor as general agent 
 or traveling solicitor until he shall have received from said commis- 
 sioner of insurance a certificate in substance the same as provided 
 for in this article; and that said general traveling agent or traveling 
 solicitor is authorized to act as such. 
 
 Section 711. The by-laws of any such corporation or association 
 and its notice of assessment, shall state the object or objects for 
 which the money to be collected is intended, and no part of the pro- 
 ceeds of such assessment shall be i)pi)lied to any other p\irpose tlian 
 is stated in said notices and by-laws, and the excess beyond payment
 
 THE STATE OF HOUTll DAKOTA 809 
 
 of the benefits provided for in siich assessment shall be set aside and 
 applied only to such purposes as said by-laws and notices specify. 
 
 Section 712. No corporation or association organized or operated 
 undci' this article shall issue any certificate of membership or policy 
 to any person under the age of fifteen years or over the age of sixty 
 years, nor unless the beneficiary under said Certificate shall be hus- 
 band, wife, relative, legal representative, heir or legatee of such in- 
 sured member, nor shall any such certificate be assigned; and any 
 certificate issued or assignment made in violation of this section shall 
 be void. Any member of any corporation, association or society op- 
 erating under this article shall have the right at any time, with the 
 consent of such corporation, association or society, to make a change 
 in his beneficiary, without the consent of such benefieiai'v. 
 
 Section 713. The business year of each South Dakota corporation, 
 association or society, organized or operating under this article, shall 
 close on the thirty-first day of December each year, and such i-ov- 
 poration or association shall, within sixty days thereafter prepare 
 under oath of its president and secretary, and file in the office of the 
 commissioner of insurance a detailed statement of its assets, liabili- 
 ties, receipts from each assessment and all other sources, expendi- 
 ture, salaries of officers, number of contributing members, death 
 losses paid and amount paid on each loss, death losses reported and 
 not paid, and answer such other interrogatories as the commissioner 
 of insurance, who shall furnish blanks for that purpose, may require, 
 in order to asee"+'^in its tnie financial condition, and shall pay upon 
 filing each annual statement the sum of ten dollars. The coiumis- 
 sioner of insurance shall publish said annual statement in his annual 
 report, and for the purpose of verifying such statement the com- 
 missioner of insurance may make or cause to be made an examina- 
 tion of any company, corporation or association doing business 
 under this article, at the expense of tlie association, or corporation, 
 which expense shall not exceed six dollars per day and the neces- 
 sary hotel and traveling expenses of the commissioner of insurance, 
 or person he may appoint for that purpose. If the commissioner of 
 insurance shall deem it necessary for the security of the funds of the 
 association, he may require the official bonds of the officers to be 
 increased to an amount not to exceed double the sum for which they
 
 870 FRATERNAL SOCIETY LAW 
 
 are accountable, and he may require supplemental reports from any 
 such association at such time and in such form as he may direct. 
 
 Section 714. Any corporation or association accumulating any 
 trust fund or moneys to be held in trust for the purpose of the ful- 
 fillment of its policy, or certificate, contract, or otherwise, shall in- 
 vest such accumulations in bonds or treasury notes of the United 
 States, or of this or other States, or in interest-bearing bonds of 
 any municipal corporation in South Dakota, or in notes secured by 
 mortgage on unincumbered real estate in the State of South Dakota, 
 not to exceed fifty per cent, of the appraised value thereof ; exclusive 
 of imjirovements, and shall deposit such securities with the commis- 
 sioner of insurance who shall furnish such corporation or association 
 with a certificate under his seal of office, of siich deposit showing 
 the purpose of such deposit, and to what fund the same is to be ap- 
 plied when paid out, and also showing the aggregate liabilities of 
 such corporation or association at the date of the issuance of such 
 certificate ; Provided, however, that such corporation or association 
 may invest in real estate in Swuth Dakota such a portion of such ac- 
 cumulation as is necessary for its accommodation in the transaction 
 of its business, to be owned by said corporation or association, and 
 in the erection of any building for such purpose may add thereto 
 rooms for rental. 
 
 Section 715. Such corporation or association may have the right 
 at any time to change its securities on deposit by substituting for 
 those withdrawn a like amount in other securities of the character 
 provided for in this article. 
 
 Section 716. The commissioner of insurance shall permit corpora- 
 tions or associations having a deposit with him for such securities 
 to withdraw the same upon filing with him, by the presideut and 
 secretary of such corporations and associations, satisfactory proofs 
 that they iirc to lie used for the juirposi- for whicli they were origi- 
 nally deposited in his office. 
 
 Section 717. The commissioner of insurance shall permit corpora- 
 tions or associations having on deposit with him such stocks and 
 bonds, notes or other securities, to collect and ret;iiii the interest 
 accruing on such de])osits, delivering to them respectively the evi- 
 dence of interest as the same becotncs due, but on default of any
 
 THE STATE OF SOUTH DAKOTA 871 
 
 corporation or association to make or enforce such collection, he 
 may collect such interest and add the same to the security in his 
 possession helonging- to snoh corporntion or association, less the 
 expense of such collection. 
 
 Section 718. Any foreign corporation or association organized 
 under the law of any other State to carry on the business of insuring 
 the lives of individuals or of furnishing benefits to the widows, or- 
 phans, heirs or legatees of deceased members, or in paying accident 
 indemnity, or surrender value of certificates of insurance upon the 
 mutual plan, may be licensed by the commissioner of insurance to do 
 business in this State by complying with the following conditions, 
 to-wit: Said eorjioi-ation shall file with the commissioner of insur- 
 ance a copy of its charter or articles of incorporation duly certified 
 by the proper oi^eers of the State, wherein organized, together with 
 a copy of its by-laws, application and policy or certificate of mem- 
 bership. It shall also file with the commissioner of insurance afore- 
 said a sworn statement signed and verified by its president and sec- 
 retary, which statement shall contain the name and location of the 
 said corporation or association, its principal place of business, the 
 name of its president, secretary and other principal officers, the 
 number of certificates or policies in force, the aggregate amount 
 insured thereby, the amount paid to the beneficiaries in the event of 
 death or accident, the amount collected from each member on each 
 assessment, and the purposes for which assessments are made and 
 the authority under which they are made ; the amount paid on last 
 death loss, and the date thereof; the amount of cash or other assets 
 owned by the company and association, and how invested and any 
 information that the commissioner of insurance may require. All 
 said papers and statements thus filed shall show that death or sur- 
 render value of certificate of insurance or accident indemnity is in 
 the main provided for by assessments upon or contributions by the 
 surviving members of such corporation or association, and shall 
 show to the said commissioner of insurance that said corporation or 
 association is legally organized and honestly managed, and that an 
 ordinary assessment upon its members, or other regular contribution 
 to its mortuary fund, is sufficient to pay its maximum certificate to 
 the full limit named therein. Such foreign corporation or associa-
 
 872 FRATERNAL SOCIETY LAW 
 
 tion shall also designate to the commissioner of insurance an 
 attorney or agent residing in this State on whom service of process 
 or original notice may be made ; and in event of a failure to appoint 
 or designate such attorney, such service may be made upon the com- 
 missioner of insurance, who shall at once notify said company by 
 mailing a copy of such notice to the secretary of said corporation 
 or association, directed to his last known postoffice address. An 
 action commenced in this State by service iipon such attorney or 
 commissioner of insurance may be commenced in the county of the 
 plaintiff's residence, regardless of the residence of said commissioner 
 of insurance or attorney, and every corporation or association com- 
 ing nito this State shall file with the commissioner of insurance a 
 contract or agreement that it will not transfer an.y action commenced 
 against it in any court of this State to the United States courts, 
 which contract shall contain the provision that if such transfer is 
 made to the United States courts, the certificate of authority issued 
 by said commissioner of insurance to do business shall be eancelled 
 or revoked. And it shall be the duty of said commissioner of insur- 
 ance to promptly revoke the certificate of such corporation or asso- 
 ciation as soon as such transfer is made ; and such corporation or 
 association shall not again be allowed to do business within the 
 State. Upon complying with the provisions of this section, and upon 
 the payment of twenty-five dollars and the filing with the commis- 
 sioner of insurance a good and sufficient bond, as required from sim- 
 ilar companies organized under the laws of this State, the commis- 
 sioner of insurance shall issue to such foreign corporation or associa- 
 tion so complying, a certificate of authority to do business in this 
 State. Whenever the commissioner of insurance of this State shall 
 have reason to doubt the solvency of any such foreign corporation or 
 association, and the failure to jiay the full limit named in its certifi- 
 cate or policy shall be such evidence that it is not solvent and to re- 
 quire the commissioner of insurance to investigate, he must for this 
 or other good cause, at the expense of such corporation or associa- 
 tion, cause an examination of its books and papers to be made, and 
 if in his judgment such examination establishes the fact that such 
 corporation or association is not financially sound and is not paying 
 its policies to the full limit named therein, or is conducting its busi-
 
 THE STATE OF SOUTH DAKOTA 873 
 
 ness fraudulently, or if it should fail to make the statement required 
 by this article, he may revoke the authority of such corporation or 
 association and iii-ol)il)it it from doing business iti this Stato until it 
 can comply with the provisions of this article. If the commissioner 
 of insurance appoints some one to make the examination as provided 
 for in this section, he shall be entitled to receive six dollars per day 
 for his services, in addition to his actual traveling and hotel ex- 
 penses, to be paid by the association examined. 
 
 Provided, the same right is extended by the State in which said 
 cori)oration or as.sociation is organized, to similar corporations or 
 associations organized in this State. After any such foreign corpora- 
 tion or association shall have been licensed to do business in this 
 State, it shall make before the first day of March each year, to the 
 commissioner of insurance, on blank furnished by him. the same 
 detailed statement as is provided in this chapter, and shall also pay 
 to the commissioner of insurance, on filing such statement, a fee of 
 ten dollars. 
 
 Section 719. Any foreign corporation or association doing busi- 
 ness in this State that shall refuse to neglect to comply -with the 
 provisions of this article shall be deemed and be held to be doing 
 business unlawfully, and any officer or agent of such corporation or 
 association who shall do business in this State, or assist in, or 
 knowingly permit the same in violation of the provisions of this 
 article shall be deemed guilty of a misdemeanor and upon conviction 
 thereof shall be fined not more than five hundred dollai-s or be im- 
 prisoned in the county jail not more than six months, or both, in the 
 discretion of the court. It shall be the duty of the State's attorney 
 acting under the authority of the commissioner of insurance to prose- 
 cute any violation of this section when sufficient evidence is pre- 
 sented to him to warrant prosecution of any person charged with its 
 violation. 
 
 Section 720. Any solicitor or agent taking or soliciting applica- 
 tions for insurance within this State, for any corporation or asso- 
 ciation doing biisiness on the mutual assessment or natural premium 
 plan, without the certificate herein provided for. or shall take appli- 
 cations when the assessments will not pay the certificate or policj'' 
 in full, without having the application form comply with the re-
 
 874 FRATERNAL SOCIETY LAW 
 
 quirements of this article, shall be deemed guilty of a misdemeanor 
 and upon conviction thereof shall be fined in a sum not to exceed 
 one hundred dollars for each offense together with the cost of prose- 
 cution, including attorney's fee, and shall stand committed to the 
 county jail until the fine and costs are paid. And the State's at- 
 torney in each county shall prosecute parties charged with a viola- 
 tion of this section. 
 
 Provided, that for the purposes of this article any fraternal or 
 benevolent society, having organized a grand lodge in this State, 
 shall be deemed a domestic corporation and shall only be required 
 to pay such fees as are required of other corporations of like char- 
 acter. 
 
 Provided, further, that each subordinate lodge shall be deemed 
 an agent to solicit membership, and the certificate of authority pro- 
 vided for in this article, shall be issued in the name of each sub- 
 ordinate lodge, and shall be authority for each member of said lodge 
 to solicit membership. 
 
 Section 721. When any South Dakota eorjioration or association 
 shall fail to make its annual report to the commissioner of insurance 
 on or before the first day of ]\Iarch, or is conducting its business 
 fraudulently or not in compliance with the provisions of this article, 
 or is not carrying out its contracts with its members in good faith, 
 then it shall be the duty of the commissioner of insurance to 
 promptly communicate the fact to the attorney general, who shall 
 promptly commence action before the circuit court in the county in 
 which said organization is located, or any judge thereof, citing the 
 officers to appear before said court or judge; and if. upon hearing of 
 said cause, it is found to be for the best interests of the holders of 
 certificates of membership in said corporation, said court or judge 
 shall have the power to remove any officer or officers of said corpora- 
 tion and appoint others in their place until the next annual election. 
 If it is found to the best interests of said holders of certificates that 
 the affairs of said corporation be wound up. said court or judge shall 
 so direct, and for that purpose may appoint a receiver, who shall 
 regard all proper claims for death benefits as preferred claims. 
 Said receiver may also, upon approval of the court or judge, trans- 
 fer the members of said association who consent thereto to som<>
 
 THE STATU OF SOUTH DAKOTA 875 
 
 solvent South Dakota assessment or naliiiMl assdcialioii. or divide 
 ,the surplus accumulated in proportion to llio share due each cer- 
 tificate in force at the time. 
 
 Section 722. The commissioner of insuranct^ sluill receive from 
 each foreign corporation or association doing business in this State, 
 for each certificate issued to agents or solicitors, the sum of two dol- 
 lars; and from each corporation or association organized under the 
 laws of this State the sum of fifty cents. 
 
 Section 723. On compliance with this article by the corporation 
 or association, the commissioner of insurance shall issue a certificate 
 setting forth. 
 
 First. The corporate name of the association. 
 
 Second. Its principal place of business. 
 
 Third. The number of certificates or policies in force at the date 
 of its last report. 
 
 Fourth. The sum of money which an ordinary assessment f(n' 
 payment of a single certificate or policy would produce in each class. 
 
 Fifth. The amount paid on its last death loss as evidenced by 
 proof on file in his office, and the date of payment. 
 
 Sixth. The amount of securities deposited in his office, and for 
 what purpose deposited. 
 
 Seventh. That it has fully complied with the provisions of this 
 article, and is authorized to transact business for a period of one 
 year from January first of the year of its issue. 
 
 Section 724. Any corporation or association doing business in 
 this State which provides in the main for the payment of death 
 losses or accident indemnity by any assessment upon its members 
 or upon the natural jn-emium plan, shall, for the jiurposes of this 
 act, be deemed a mutual benefit association, and must comply with 
 the provisions of this article. No corporation or association oper- 
 ating upon the assessment plan, promising benefits upon any other 
 event than that of death, or disability resulting from an accident, 
 or sickness, to the members, shall be permitted to do business in this 
 State. This act shall not relieve any corporation or assessment asso- 
 ciation now doing business in this State from the fulfillment of any 
 contract heretofore entered into with its members under its policies 
 or certificates of membership, nor shall any member be released 
 hereby from his or her part of said contract.
 
 87ti FRATERNAL SOCIETY LAW 
 
 Section 725. Every uiiitual benefit association or insurance com- 
 pany organized or doini; business in this State, shall, at the time 
 of making the annnal statements required l)y this act. pay into 
 the State treasury as taxes two per cent, of the gross amount of 
 assessments received in this State during the preceding year, tak- 
 ing duplicate receipts therefor, one of which shall he filed with the 
 commissioner of insurance, and upon tiling such receipts, and not 
 until then, the commissioner of insurance shall issue the annual 
 certificate provided for by this act. The said sum of two per cent, 
 shall be in full for all taxes, State and local. 
 
 Provided, That nothing in this section (Section 725) shall be con- 
 strued to apply to seci'et benevolent, or secret fraternal beneficial 
 societies paying death, sick, or accident benefits to the widows, 
 orphans, heirs or relatives of deceased members, having a represen- 
 tative form of government, conducting business solely upon the as- 
 sessment plan through subordinate, grand or supreme lodges and 
 not organized for profit. 
 
 Masonic Assoc, vs. Taylor, 2 S. D. 324; 16 S. D., A. 0. U. W. vs. 
 Shober, Com. 
 
 Section 726. Each company contemplated in this act shall pay 
 the same fees, and be liable to the same obligations as provided 
 for in the case of fire insurance companies. 
 
 Section 727. The following general provisions of this article 
 shall appl.v to all life insurance companies, whether stock com- 
 panies or doing business upon the mutual assessment plan, as well 
 as to all mutual benefit, fraternal, benevolent and charitable asso- 
 ciations, whether organized or incorporated under the laws of this 
 State, any State or Territory of the United States, or any foreign 
 government, and trapsacting the business of life insurance within 
 this State. 
 
 Section 728. A pdlicy of iiisuraiu'f, to the extent of tive thou- 
 sand dollars, on the life of an individual, in \]\v absence of an 
 agi'eement or assignment to the contrary, shall inure to the separate 
 use of the husband oi- wife and children of sa'id intlividual. inde- 
 pendentl.y of his or hci- creditors; anil an cinlowment policy, pa.v- 
 able to the ass\u'eil mi attaining a certain age. to the amount of five
 
 THE STATE OF SOUTH DAKOTA 877 
 
 thousand dollars, shall be exempt from liabilities from ari.y of his 
 or her debts, and the avails of any life insurance, or any other sum 
 of money, not exceeding in amount five thousfind dolliirs, made ]ifiy- 
 iible i)y any mutual aid or liencvoicnt society upon \\]r ih-iilli of a 
 member of such socict.w arc nnt sulijcct td (lie ilchls nf tin' deceased. 
 
 Skinner vs. Holt, 9 S. D. i27. 
 
 Section 729. Each corporation aiul associjition mentioned in this 
 article shall pa,v the same fees, and be liable Id the same obligations, 
 as prnvided for in case of tire insni'anei' companies. 
 
 Section 730. In all suits in any court of this State on policies of 
 life insurance wherein the defendant seeks to avoid liability upon 
 the alleged ground of the intemperate habits or habitual intoxication 
 of the assured, it shall be a sufficient reply for the plaintiff to show 
 that such habits or habitual intoxication of the assured were gener- 
 ally known in the communit.v or neighborhood where the agent of 
 the defendant resided or did business, if thereafter the company 
 continued to receive the premiums falling due on such policy. 
 
 Knudson vs. Ins. Co., 7 S. D. 214. 
 
 Section 731. In any case where the medical examiner, or physi- 
 cian acting as such, of any life insurance company doing business in 
 this State, shall issue a certificate of health or declare the applicant 
 a fit subject for insurance under the rules and regulations of such 
 company, the company shall be thereby estopped from setting up, 
 in defense of suit on such policy, that the assured was not in the 
 condition of health required by the ]ioliey at tlie time of i.ssuing of 
 such policy, except where the same is ]H'oeui'ed by or through fraud 
 or deceit of the assured. 
 
 Section 732. No life insurance company doing business in the 
 State of South Dakota shall contest a claim under any polic.v of 
 insurance on the plea of fraud or irregularities in application after 
 three annual premium payments have been made on the policy, 
 except as to understatements of age, unless it shall relate to some 
 fact material to the risk and shall have been intentionall.v made.
 
 878 FRATERNAL SOCIETY LAW 
 
 but must pay the full amount of policy within sixty days after 
 proofs of death have been received at the home office of the com- 
 pany. 
 
 Section 733. That in all cases where it shall appear, that the age 
 of the person insured has been misstated in the proposal, declara- 
 tion, or other instrument upon which any policy of life insurance 
 has been founded or issue, then, and in such case the person or 
 company issuing such policy shall, upon the discovery of such mis- 
 statement, be permitted to demand and collect the difference in 
 premium, if any, which would be due and payable to on account 
 of the true age of the assured, from year to year, according to the 
 rates or premium of such person or company, upon which such 
 policy was issued ; or such person or company so issuing the policy 
 may, after the decease of the assured, deduct from the amount pay- 
 able by such policy, the difference of premium, if any, which would 
 so have been payable from year to year by reason of any difference 
 of age at the time of issuance of such policy : and no other defense 
 or deduction by such person or company issuing such policy shall 
 be permitted after the death of the person assured, on account of 
 such mis-statement of age of the assured, notwithstanding any war- 
 rantj' of such statement of age by terms of policy or otherwise, 
 except when it be shown, by the person or comjiany insuring, that 
 the policy was procured by fraud in fact. 
 
 Section 734. When by the laws of any State or Territory any 
 taxes, fines, penalties, licenses, fees, deposits of money or securities, 
 or capital requirements, or other obligations or prohibitions are im- 
 posed, or would be imposed, on any insurance companies of the 
 State, doing, or that might seek to do. business in such State or 
 Territory, or upon their agents therein, so long as such laws con- 
 tinue in force, the same obligations and prohibitions, of whatever 
 kind, shall be imposed upon all insurance companies of such State 
 or Territory doing business within this State, or upon their agents 
 here. 
 
 Section 735. Every life or accident insurance company doinu' 
 business in this State, except stock and mutual companies organ- 
 ized under the laws of this State, shall at the time of nuxking the 
 annual statements as required by law, pay into the State treas-
 
 THE STATE OF SOUTH DAKOTA 879 
 
 ury as taxes, two and one-half per cent, of the gross amount of 
 premiums received in this State during the preceding year, talcing 
 duplicate receipts therefor, one of which shall be filed with the com- 
 missioner of insurance; and upon the filing of said receipts, and 
 not till then, the said commissioner of insurance shall issue the 
 annual certificate as provided by law, and the said sum of two and 
 one-half per cent, shall be in full for all taxes. State and local. 
 
 Section 736. Any agent, physician or other person who shall 
 knowingly and by means of concealment or false or fraudulent state- 
 ments assist in securing any insurance on the life of any person, 
 shall be deemed guilty of a misdemeanor and upon conviction 
 thereof shall be sentenced to pay a fine not exceeding one thousand 
 dollars or undergo an imprisonment of not more than one year in 
 the county jail, or both, in the discretion of the court. 
 
 Section 737. All fidelity and surety companies doing business in 
 this State shall comply with the laws governing life insurance 
 companies as to obtaining certificates of authority, making and 
 publishing annual statements, appointments of attorney or agents, 
 payment of taxes and fees, and as to reqiiirements regarding amount 
 and investment of capital stock. 
 
 Section 738. Fraternal, benevolent and secret societies or associa- 
 tions organized or operated for the purpose of paying death benefits 
 upon its assessment plan organized ov doing business in this State, 
 must comply with the provisions of this article. 
 
 Beneficiary — Right to Change Vested Interests. 
 
 Where the member shortly before his death surrendered his cer- 
 tificate, which was payable to his wife, and received one payable to 
 his sister, in an action b.v the wife to recover the amount of insur- 
 ance — the liability of the society being admitted and the contro- 
 versy being between the wife and the sister — the constitution and 
 by-laws of the society providing there should be no vested right in 
 the sum provided to be paid under the certificate, and that the same 
 could be assigned, does not afi'ect the rights of the claimants. 
 
 Benard vs. Grand Lodge A. 0. U. W., April, 1900, 13 S. D. 132.
 
 880 FRATERNAL SOCIETY LAW 
 
 Beneficiary, When There is an Equitable Interest in Certificate. 
 
 Where a husband obtained a certificate payable to his wife under 
 an agreement with her that she should help pay therefor, which she 
 did, and shortly before his death he surrendered the certificate and 
 received another paj-able to his sister, who was a mere voluntary 
 beneficiary, the wife has an equitable interest in the proceeds of the 
 insurance superior to the right of the sister. 
 
 Benard vs. Grand Lodge A. O. U. W., April, 1900, 13 S. D. 132. 
 
 Suicide — What Facts Not Conclusive of. 
 
 In an action on a contract where the defendant clainied that the 
 member suicided, and the attending physician in proofs of death 
 gave suicide as the cause of death, the evidence merely showed that 
 from three to five minutes after the deceased was seen walking on 
 the street he was found dead in his place of business with a bullet 
 in his brain and a revolver with one empty chamber lying in a pool 
 of blood under one of his limbs. These facts were held not neces- 
 sarily indicative of suicide to such an extent as to justify the court 
 in refusing to submit the question of suicide to the jury. 
 
 Dischner vs. Piqua Mut. Aid Assn., May, 1901, 14 S. D. 436. 
 
 Contract, When Delay in Passing on Application Does Not Make. 
 
 Unreasonable delay of an insurance company in acting on an 
 application for insurance does not amount to acceptance. The Court 
 said: 
 
 "There was no contract, simply because there never was any ac- 
 ceptance of the application on the part of the defendant. Our 
 attention has been called to no decision wherein mere delay in acting 
 upon an application for insurance is construed as equivalent to an 
 acceptance. Contracts are not created without consent. Failure 
 of the defendant to manifest its approval of the plaintiff's applica- 
 tion within a reasonable time, should, we think, be regarded as 
 evidence of its re.jection ratlun' than of its acceptance." 
 
 Brink vs. Merchants & Farmers United Mut. Ins. Assn., .luly, 1903, 
 17 S. D. 235.
 
 TBE STATE OF SOUTH DAKOTA 881 
 
 Fraternal Societies Exempt From General Insurance Laws. 
 
 A .S('(!ti<in of tlu' hiws of 18!)() provides that every niiifiial benefit 
 association, as a eoiidilidn [)reee(lent to its right to do liiisiiiess, 
 shall pay to the State two per cent, of the rtoss amount of assess- 
 ments received by it in the State during the ])receding' year, and 
 adds : 
 
 "Provided that nothing in this section shall he construed to aijply 
 to secret benevolent or fraternal societies who pay sick or death 
 benefits to the widows, orphans, heirs or relatives of deceased mem- 
 bers." 
 
 Held, That the Ancient Order of United Workmen, organized to 
 unite its members into a fraternal brotherhood and improve their 
 moral and social condition, to create funds to aid them during sick- 
 ness or disability, to pay a stipulated sum to the members' bene- 
 ficiaries at death, and possessed of a secret ritual, was a secret fra- 
 ternal society within the meaning of said section, and not liable to 
 the payment of the tax as a condition of its right to do business 
 within the State. 
 
 Ancient Order of United Worl<men vs. Shober, April, 1903, 16 S. D. 
 513. 
 
 Suicide — Verdict of Coroner's Jury as to Not Admissible in Evi- 
 dence. 
 
 The verdict of a coroner's jury that one whose life was insured 
 committed suicide, is not admissible as evidence against the bene- 
 ficiary in an action on the benefit certificate, on the issue of suicide 
 of the member. 
 
 Chambers vs. Modern Woodmen of America. June, 1904, 18 S. D. 173. 
 
 Statutes of Limitation by Societies Void. 
 
 Under Section 1276 of the Civil Code, which provides that every 
 condition in a contract whicli limits the time within which a party 
 may enforce his rights is void, a provision in an insurance contract 
 
 56
 
 882 FRATERNAL SOCIETY LAW 
 
 that no action can be maintained thereon unless commenced within 
 twelve months after the maturity of the contract, is void. 
 
 Vesey vs. Commercial Union Assurance Co., Dec., 1904, 18 S. D. 632; 
 Phoenix Ins. Co. vs. Perkins, January, 1905, 19 S. D. 59. 
 
 Agency — Delivery of Proofs of Loss to. 
 
 The delivery of proofs of loss under a fire insurance policy to the 
 agent of a foreign insurance company, who was authorized to solicit 
 applications and write and deliver policies, was a sufficient delivery 
 to the insurer where the policy only required delivery to the com- 
 pany. 
 
 Vesey vs. Commercial Union Assurance Co., Dec, 1904, IS S. D. 632.
 
 THE STATE OF TENNESSEE 883 
 
 THE 
 
 STATE OF TENNESSEE. 
 
 CHAPTER 43. 
 
 The State of Tennessee has a code for the government of fraternal 
 societies which became a law April 17, 1905. It is one of the most 
 complete fraternal codes upon the statute books and is as follows: 
 
 Section 1. That any corporation, society, order or voluntary as- 
 sociation without capital stock, organized and carried on solely 
 for the mutual benefit of its members and their beneficiaries, and 
 not for profit, and having a lodge system with ritualistic form of 
 work and representative form of government and which shall make 
 provisions for the payment of death benefits, and which may make 
 provisions for the payment of disability benefits, or both, is hereby 
 declared to be a fraternal benefieiarv association. 
 
 Section 2. That any association having a supreme governing or 
 legislative body and subordinate lodges or branches by whatever 
 name known into which members shall be elected, initiated and ad- 
 mitted in accordance with its constitution, laws, rules, regulations 
 and prescribed ritualistic ceremonies, which subordinate lodges or 
 branches shall be required by such association to hold regular or 
 stated meetings at least once in each month, .shall be deemed to be 
 operating under the lodge system. 
 
 Section 3. That any association shall be deemed to have a repre- 
 sentative form of government, when it shall provide in its constitu- 
 tion and laws for a supreme legislative or governing body, composed 
 of representatives elected either by the members or by delegates 
 elected bv the members through a delegate convention system to-
 
 884 FRATERNAL SOCIETY LAW 
 
 gether with such other members as may be prescribed liy its eoii- 
 stitution and laws, provided that the elective representatives shall 
 constitute a majority in number and have not less than a majority 
 of the votes, nor less than the votes required to amend its constitu- 
 tion and laws, and provided further that the meetings of the supreme 
 or governing body and the election of officers, representatives or 
 delegates shall be held as often as once in f(mr years. The members, 
 officers, representatives or delegates of a fratcrjial beneficiary society 
 shall not vote by proxy. 
 
 Section 4. That, except as herein provided, such association shall 
 be governed by this act and shall be exempt from all provisions of 
 the insurance laws of this State, not only in governmental relations 
 with the State, bnt for every other purpose, and no law hereafter 
 passed shall apply to them, unless they be expressly designated 
 therein. 
 
 Section 5. That every association transacting business under this 
 act shall provide for the payment of death benefits, and may provide 
 for the payment of benefits in case of temporary or permanent 
 physical disability, either as the result of disease, accident or old 
 age, provided the period of life, at which the payment of benefits 
 for disability on account of old age shall commence, shall not be 
 under seventy years ; except as otherwise provided in this act no 
 association shall issue or offer, or promise to issue, any contract pro- 
 viding for the payment of any other benefit, or any contract which 
 does not provide for the regular payments or assessments during 
 the entire existence of the contract. 
 
 Section 6. That the payment of death benefits shall be confined 
 to the wife. Imsband. family, relatives by blood, marriage or legal 
 adoption, affianced husband, or affianced wife, or to a person or 
 persons dependent on the member, subject to the limitation and con- 
 trol of the association as to the designation of beneficiaries witliin 
 said classes. 
 
 Section 7. That no association shall admit to beneficial member- 
 ship any person less than sixteen (16) nor nun'c than sixty (60) 
 years of age, nor any person who has not been examined by a legally 
 qualified practicing physician, and whose examination has not been 
 approved by the supervising medical authority of the association
 
 THE .STATIC OF TKN'NESSEE 885 
 
 as provided liv the hiws of tlir ;isso<dat iciii : Provided,' thai, such 
 examination shall not he required of associations paying death 
 benefits not exceeding three hundred (300) dollars. 
 
 Section 8. That every certificate issued by the association shall 
 specify the definite amount of ]>enefit provided by the contract, and 
 shall provide that the certificate, the constitution and laws of the as- 
 sociation and the application for membership and medical examina- 
 tion, signed by the applicant, shall constitute the contract between 
 the association and the member, and copies of the same, certified by 
 the secretary of the association or corresponding oflieer, shall be 
 received in evidence of the terms and conditions of the contract ; and 
 any changes, additions or amendments to said charter or articles of 
 association, constitution or laws duly made or enacted subsequent to 
 the issuance of the benefit certificate shall bind the member and his 
 beneficiaries, and shall govern and control the contract in all re- 
 spects the same as though such changes, additions or amendments 
 had bt'en made pi-ior to and wiM'r in force at the time of the a|)pli- 
 cation for membership : Provided, however, that the constitution 
 and laws of any such association shall never be amended or in any 
 way altered, except by the supreme legislative or governing body 
 in a regular or special meeting called for that pur| osc, and no 
 amendment to the constitution and laws shall in any way atfeet the 
 rights of any beneficiary whose claim accrued by death or other- 
 wise prior to the passage of such amendment. 
 
 Section 9. That any association may create, maintain, invest, dis- 
 burse and apply a reserve, emergency, surplus or other fund in ac- 
 cordance with its constitution and laws for the purposes specified in 
 Section .5 of this Act. Any such association so creating, maintain- 
 ing, investing, disbursing or applying -.my such reserve, emergency 
 or surplus fund, shall not be held to be organized or carried on for 
 profit within the intent of the provisions of Section 1 of this Act. 
 Such funds shall be held, invested and disbursed for the use and 
 benefit of the association, and no member or beneficiary shall have 
 or acquire any individual rights therein, or be entitled to an appor- 
 tionment or the surrender of any part thereof. The funds from 
 which benefits shall be paid and the funds from which the expenses 
 of the aissociation shall be defrayed shall be derived froju periodical
 
 886 FRATERNAL SOCIETY LAW 
 
 or other payments by the members of the association and accretions 
 of said funds : Provided, that reg\ilar periodical payments shall 
 not be made oftener than once per month ; and every such associa- 
 tion shall provide in its constitution or laws that if such regular 
 payments are insufficient to pay all matured death and disability 
 claims in full, and to provide for the creation and maintenance of 
 the funds required by its constitution and laws, extra assessments 
 or other payments may be levied upon the members to meet such 
 deficiency. 
 
 Section 10. That any association may invest its funds in and 
 hold real estate for lodge and office purposes, and any real estate 
 acquired by foreclosure or received in satisfaction of loans, and 
 may sell and convey the same. Any such association may also invest 
 its funds in government. State, provincial, county or municipal 
 bonds, or bonds of any township, park or school district having 
 taxing powers, provided that such bonds shall be a direct obligation 
 on all the taxable property within such municipality or district, and 
 the net indebtedness of such municipality or district shall not exceed 
 five (5) per centum of the value of all taxable property therein 
 according to the last valuation for taxation preceding the issuance 
 of said bcmds; or in first mortgages or first mortgage bonds upon im- 
 proved real estate for not exceeding fifty (50) per centum of the 
 actual cash value thereof at the time of making the loan : Provided, 
 however, that every foreign association shall be empowered to invest 
 its funds in such securities as may be permitted by the laws of the 
 State, province or country in which it is organized. 
 
 Section 11. That every association shall make provision in its 
 constitution and laws for payment by members of such an associa- 
 tion, which provision shall state the purpose of the same and the 
 proportion thereof which may be used for expenses, and no part of 
 the money collected for mortuary or disability purposes and no part 
 of the reserve, emergency or surplus funds or the net accretions of 
 either or any of said funds, shall be used for expenses. 
 
 Section 12. That the ni(iiu'\- or (ithcr lienefits, charity, relief, or 
 aid, to be paid, provided or rendered by any association authorized 
 to do business under this Act, shall, neither before nor after being 
 paid, be liable to attachment, garnishment or other process, and
 
 THE STATE OF TENNESSEE 887 
 
 shall not be seized, taken, appropriated or applied by an>' lewal or 
 equitable jn-ocess or operation of law to ]iiiy any debt or liability 
 of a certificate holder, or of any beneficiary named in a certificate, 
 or of any person who may have any right thereunder ; such associa- 
 tions are hereby declared to be charitable institutions, and the prop- 
 erty held and used for lodije purposes and the funds of such associa- 
 tions shall be exempt from taxation under the preneral tax or 
 revenue laws of the State. 
 
 Section 13. That five or more persons, citizens of this State, who 
 desire to form a fraternal or beneficiary association as defined by 
 this Act, may take out a charter in the way and manner provided 
 by law, in which shall be stated: 
 
 First — The proposed corporate name of the association, which 
 shall not so closely resemble the name of any association or insur- 
 ance companj' already transacting' business in this State as to mis- 
 lead the public or lead to confusion. 
 
 Second — The purpose for which it is formed — which shall not 
 include more liberal powers than are granted by this Act, provided 
 that any lawful, social, intellectual, educational, moral or religious 
 advantages may.be set forth among the purposes of the association — 
 and the mode in which its corporate powers are to be exercised. 
 
 Third — The names, residences and official titles of all the officers, 
 trustees, directors, or other persons who are to have and exercise 
 the general control and management of the afi'airs and funds of the 
 association for the first year or until the ensuing election at which 
 all such officers shall be elected by the supreme legislative or gov- 
 erning body. 
 
 Such articles of association and duly certified copies of the con- 
 stitution and laws, rules and regulations, and copies of all proposed 
 forms of benefit certificates, applications therefor and literature to 
 be issued by such association, and a bond in the sum of five thousand 
 dollars, with sureties approved by the Insurance Commissioner, con- 
 ditioned upon the return of the advanced payments, as provided in 
 this section, to applicants, if the organization is not completed in one 
 year, or after such further period, not exceeding one year, as may be 
 authorized by the Insurance Commissioner, shall be filed with the 
 Insurance Cominissioner. who may require such further information
 
 888 FRATERNAL SOCIETY LAW 
 
 as he deems necessary, and if the purposes of the association con- 
 form to the requirements of this Act and all provisions of the law- 
 have been complied with, the Insurance Commissioner shall so certify 
 and retain and keep on file and furnish the incorporators a pre- 
 liminary certificate authorizing said association to solicit members 
 as hereinafter provided. 
 
 Upon receipt of said certificate from the In-surance Commissioner 
 said association may solicit members for the purpose of completing 
 its organization and shall collect from each applicant the amount of 
 not less than one death benefit assessment or payment, in accord- 
 ance with its tables of rates as provided by its constitution and laws, 
 and shall issue to each such applicant a receipt for the amount so 
 collected. But no such association shall incur any liability other 
 than for such advance payments nor i.ssue any benefit certificate, 
 nor pay or allow, or offer a promise to pay or allow to any person 
 any death or disabilitj^ benefit until actual bona fide applications 
 for death benefit certificates have been secured upon at least five 
 hundred lives for at least one thousand dollars each, and all such 
 applicants for death benefits shall have been regularly examined by 
 legally qualified i)racticing physicians and certificates of such ex- 
 aminations have been duly filed and approved by the chief medical 
 examiner of such association, nor until there shall be established ten 
 subordinate lodges or branches into which said five hundred ai)i)li- 
 cants have been initiated, nor until there has been submitted to the 
 Insurance Commissioner under oath of the president and secretary 
 or corresponding officers of such association a list of such applicants, 
 giving their names, addresses, date examined, date approved, ilate 
 initiated, name and number of the subordinate branch of which each 
 applicant is a membei\ amount of benefits to be granted, rate of 
 regular payments or assessments, which shall not be lower for death 
 benefits than lliose required by the National Fraternal Congress 
 table of mortality, with interest at four per cent per annum; nor 
 until it shall be shown to the Insurance Commissioner by the sworu 
 statement of the treasurer or corresponding officer of such associa- 
 tion, that at least five hundred applicants have each paid in cash 
 at lea.st one regular monthly i)ayment or assessment as herein pro- 
 vided per one thousand dollars of indemnity to be effected, which
 
 THE STATE OF TENMESSEE 889 
 
 payments in tho aggregate shall amount to at least twenty-five hun- 
 dred dollars, all of which shall be credited to the niorluai'v nr disa- 
 bility fund on account of such applicants and nci ])art of which may 
 be used for expenses. 
 
 Said advanced payments shall during the ])eriod ol' organization 
 be held in trust for and. if the organization is not couiDletod within 
 one year as hereinafter provided, returned to said ajjplicaiits. 
 
 The Insurance Commissioner may make such examination and re- 
 quire such further information as he may deem advisable, and upon 
 presentation of satisfactory evidence that tlic association has com- 
 plied with all the provisions of the law he shall issue to sueli asso- 
 ciation a certificate to that effect. Such certificate shall be prima 
 facie evidence of the existence of such association at the date of such 
 certificate. The Insurance Commissioner shall cause a record of such 
 certificate to be made and a certified copy of such record may be 
 given in evidence with jike effect as the original certificate. 
 
 No preliminary certificate granted under the provisions of this 
 section shall be valid after one year from its date, or after such 
 further period, not exceeding one year, as may be authorized b.v the 
 Insurance Commissioner upon cause shown, unless five hundred 
 applicants herein required have been secured and the organization 
 has been completed as herein provided, and the articles of associa- 
 tion and all proceedings thereunder shall become null and void in 
 one .vear from the date of said preliminary certificate, or at the ex- 
 piration of said extended period, unless such association shall have 
 completed its organization and commenced business as herein pro- 
 vided. When any domestic association shall have discontinued busi- 
 ness for the period of one year, its charter shall become null and 
 void. 
 
 Section 14. That any domestic association now engaged in trans- 
 acting business in this State, may exercise, after the passage of this 
 Act, all of the rights conferred thereby, and in addition thereto may 
 exercise all of the rights, powers and privileges now exercised or 
 possessed by it under its charter or articles of association not in- 
 consistent with this Act, or it may be reincorporated hereunder. 
 But no such association alread.v organized shall be required to rein- 
 corporate hereunder, nor shall it be rei|uir(^d to ado])t the rules pre-
 
 890 FRATERNAL SOCIETY LAW 
 
 scribed herein for new associations, in order to avail itself of the 
 privileges of this Act, and any such association may amend its 
 articles of association from time to time in the manner provided 
 therein, or in its constitution or laws, and all such amendments shall 
 be filed with the Insurance Commissioner, and shall become operative 
 upon such filing unless a later time be provided in such amendments, 
 or in its articles of association, constitution or laws. 
 
 Section 15. That no domestic association shall transfer its mem- 
 bership or funds to any association not authorized l)y the Insurance 
 Commissioner to transact business in this State; nor shall any such 
 association transfer its membership or funds to any licensed associa- 
 tion, unless the said contract to transfer has been approved by a two- 
 thirds vote of the trustees or board having charge of the association 
 whose membership is proposed to be transferred; and by a two- 
 thirds vote of the triistee or board having charge of the association 
 proposing to take such membership. 
 
 Section 16. That no fraternal beneficiary association shall be au- 
 thorized to do business in this State under the provisions of this 
 Act, whether incorporated under the laws of this or any other State, 
 province or territory, which associates with, or seeks to associate 
 with, as members of the same lodge, order, fraternity, society or 
 association, the white and colored races with the objects and pur- 
 poses provided in this Act. 
 
 Section 17. That foreign associations which are now authorized 
 to transact business in this State in accordance with this Act may 
 continue such business until the first day of April next succeeding 
 the passage of this Act, and the authority of such associations may 
 thereafter be renewed annually, but in all cases to terminate on the 
 first day of the succeeding April. For each such license or renewal 
 the association shall paj- the Insurance Commissioner $10. A duly 
 certified copy of such license shall be prima facie evidence that the 
 licensee is a fraternal beneficiary association within the meaning 
 of this Act. 
 
 Section 18. That no foreign association which is not now author- 
 ized to transact business in this State shall transact any l)usiness 
 herein without a license from the Insurance Comniis.sioner. Before 
 receiving such license it shall filo with the Insurance Commissioner
 
 THE STATE OF TENNESSEE 891 
 
 a duly certified copy of its charter or articles of association ; a copy 
 of its constitution and laws, certified by its secretary or correspond- 
 ing officer; a power of attorney to the Insurance Commissioner as 
 hereinafter provided ; a statement under oath, of its president and 
 secretary, or corresponding officers, in the form requii'ccl. l)y the In- 
 surance Commissioner duly verified by an examination made by the 
 supervising insurance official of its home State of the business for 
 the preceding year; a copy of its contract, which must show that 
 benefits are provided for l)y assessments upon or other payments by 
 the persons holding similar contracts, and shall furnish the Insurance 
 Commissioner with such other information as he may deem neces- 
 sary to a proper exhibit of its business and plan of working, and if 
 he finds that it is transacting business in accordance with the pro- 
 visions of this Act, that its assets are invested in accordance with 
 the laws of the State where it is organized, and that it has the mem- 
 bership and qualifications i"e(|uired of domestic associations organ- 
 ized under this Act, he may license such association to do business 
 in this State until the first day of the succeeding April, and such 
 license may be renewed annually, but in all cases to terminate on 
 the first day of the succeeding April. 
 
 Section 19. That no license shall be issued to any association not 
 now transacting business in this State which collects from any of its 
 members assessments or payments for death benefits lower than those 
 required by the Fraternal Congress Mortality Table of 1900, with 
 interest at four per cent per annum : Provided, that this section 
 shall not apply to fraternal beneficiary associations organized prior 
 to January 1, 1885. 
 
 Section 20. That when the Insurance Commissioner refuses to 
 license any association, oi" revokes its authority to do business in 
 this State, he shall reduce his ruling, order or decision to writing 
 and file the same in his office, and shall furnish a copy thereof, to- 
 gether with a statement of his reasons, to the officers of the asso- 
 ciation, upon request. Any society affected by any such ruling, 
 order or decision shall have the right to appeal to any court of 
 competent jurisdiction in this State by filing with said commissioner 
 a notice of such appeal in writing, stating specifically to which court 
 such appeal is proposed to be taken, and in such case said commis-
 
 892 FRATERNAL SOCIETY LAW 
 
 sioner shall fi)rtlnvith, ami within ten days thereafter, deliver to 
 such association a foil and certified transcript of all proceedings 
 had before him in such matter, including all applications. to<;ether 
 with all orders, rulings and decisions had thereon, and on such trans- 
 cript being filed in said court, such cnurt shall be fully possessed 
 of said action, and a full trial on the merits de novo shall be had 
 thereon: Provided, that such appeal shall be filed in such court 
 within forty days after the rendition of the ruling, order or de- 
 cision appealed from: And provided further, that nothing con- 
 tained in this or the preceding section shall be taken or construed 
 as preventing any such association from continuing in good faith 
 all contracts made in this State during the time such association 
 was legally authorized to transact business herein. 
 
 Section 21. That every foreign association now transacting busi- 
 ness in this State shall within thirty days after the passage of this 
 act, and every such association hereafter applying for admission, 
 shall, before being licensed, appoint in writing the Insurance Com- 
 missioner and his .successors in office to be its true and lawful attor- 
 ney, upon whom all legal process in any action or proceeding against 
 it shall be served, and in such writing shall agree that any lawful 
 process against it, which is .served upon said attorney, shall be of 
 the same legal force and validity as if served upon the association, 
 and that the authority shall continue in force so long as any liability 
 remains outstanding in this State. 
 
 Copies of such appointment, certified by the Insurance Commis- 
 sioner, shall be deemed sufficient evidence thereof, and shall be ad- 
 mitted in evidence with the same force and effect as the original 
 thereof might be admitted. Service ma.v oiil.\ 1)c liad upon such at- 
 torney, must be made in duplicate and shall be deemed sufficient 
 service upon such association, ju-ovided, however, that no such 
 service shall be valid nr binding against any such association when 
 it is required thereunder to file its answer, pleading or defense in 
 less than thirty days after the date of such service. When legal 
 process against any association is served upon said Insurance (Com- 
 missioner, he shall [forward] forthwith by registered inail one of 
 the dupliciite copies, pre])aid and directed to its secretary or corre- 
 sponding officer. The plaintiff' in such process so served shall pay
 
 THE STATE OF TENNEfiSEE 893 
 
 CO the Insurance Commissioner foi- 1lic nsc ol' llie State at flic time 
 of sueh service a fee of $2. which shall he recovered hy him as part 
 of the taxable costs, if he prevails in the suit. 
 
 Section 22. That any domestic association may jirovide that the 
 meetings of its legislative or governing body may lie held in any 
 State, district, province or teri-itory wherein such association has 
 subordinate branches, and all business transacted at such meetings 
 shall be as valid in all respects as il" such meetings were held in this 
 State. But its principal otRce .shall be located in this State. 
 
 Section 2:^. That olflcers and members of the supreme or grand 
 or any subordinate body of any such incorporated association, shall 
 not be individually liable for the payment of any disability or death 
 benefits provided for in the laws and contracts of such association, 
 but the same shall be payable only out of the funds of such associa- 
 tion and in the manner provided by its laws. 
 
 Section 24. That the constitution and laws of the association may 
 provide that no subordinate body, nor any of its officers or members 
 shall have the power or authority to waive any of the provisions 
 of the laws and constitution of the association, and the same shall 
 be binding on the association and each and every member thereof. 
 
 Section 25. That all grand lodges by whatever name known, 
 whether incorporated or not, holding charters from a supreme gov- 
 erning body, which are conducting luisiness in this State upon the 
 passage of this Act as a fraternal beneficiary association upon what 
 is known as the separate .jurisdiction plan, shall be treated as a fed- 
 eration of grand lodges and not as single State organizations, and 
 all reports required by the provisions of this Act shall be made and 
 furnished by the officers of each sujireme governing body and shall 
 embrace and contain the transactions, liabilities and assets of the 
 entire order. 
 
 Section 26. That every association transacting business under 
 this Act shall file with the Insurance Commissioner a duly certified 
 copj' of all amendments of, or additions to, its constitution and laws 
 within ninety days after the enactment of the same. Printed copies 
 of the constitution and laws and of additions or amendments thereto, 
 certified by the secretary or corresponding officer of the association, 
 shall be prima facie evidence of the legal adoption thereof.
 
 894 FRATERNAL SOCIETY LAW 
 
 Section 27. That every association, transacting business in this 
 State, shall annually, on or before the first day of ]\rareh, file with 
 the Insurance Commissioner in such form as he may require, a state- 
 ment under oath of its president and secretary, or corresponding 
 officers, of its condition and standing on the thirty-first day of De- 
 cember next preceding and of its transactions for the year ending 
 on that date, and shall also, furnish such other information as the 
 Insurance Commissioner may deem necessary to a proper exhibit of 
 its business and plan of working, The Insurance Commissioner may 
 at other times require any further statement he may deem necessary 
 to be made relating to such associations. But such Insurance Com- 
 missioner shall neither make nor permit to be made from any infor- 
 mation so obtained any valuation of its outstanding benefit certifi- 
 cates unless requested to make such valuation by the association. 
 
 Section 28. That the Insurance Commissioner, or any person he 
 may appoint, shall have the power of visitation and examination into 
 the affairs of any domestic association. He may employ assistants 
 for the purpose of such examination, and he, or any person he may 
 appoint, shall have free access to any books, papers and documents 
 that relate to the business of the association, and may summon and 
 qualify as witnesses under oath, and examine its officers, agents and 
 employes or other persons in relation to the affairs, transactions and 
 condition of the association. The expense of such examination 
 shall be paid by the a.ssoeiation examined, but the amount thereof 
 shall not exceed one hundred dollars. 
 
 Whenever after examination the Insurance Commissioner is satis- 
 fied that any domestic association has failed to comply with any 
 provisions of this law or is exceeding its powers; or is not carrying 
 out its contracts in good faith; or is transacting business fraudu- 
 lently'; or is in such condition as to render further proceedings haz- 
 ardous to the jniblic or its certificate holders; or whenever any 
 domestic association, after the existence of one year or more, shall 
 have a membership of less than three hundred, or votes to dis- 
 continue business, the Insurance Commissionci' may present the facts 
 relative thereto to the State Attorney General, who shall, if he deem 
 the circumstances warrant, commence an action in quo warranto 
 in a court of comjietent jurisdiction, and such court shall thereupon
 
 THE STATE OF TENNEHtiEE 895 
 
 notify the officers of sucli association of a liearing, and, unless It 
 shall then appear that some special and pood reason exists why such 
 assoeiation should not be closed, said association shall be enjoined 
 from carrying on any further business, and some ])frson shall be 
 appointed receiver of such association, and shall j)roeeed at once 
 to take possession of the books, papei's, moneys, and other assets of 
 the association, and shall forthwith, under the direction of the court, 
 proceed to close the affairs of the association and to distribute its 
 funds to those entitled tliereto. No such proceeding shall be com- 
 menced bj' the State Attorney Cieneral against any such association 
 until after notice has been duly sei'ved on the chief executive officers 
 of the association and a reasonable opportunity given to it on a 
 date to be named in said notice to show cause why such jiroceedings 
 shotdd not be commenced. 
 
 Section 29. That no action or proceeding to discontinue or enjoin, 
 in whole or in part, the business or methods of any such domestic 
 association, or to appoint a receiver therefor, or to dissolve the same, 
 or in any manner affecting its corporate rights, or to oust any 
 foreign association, or enjoin it from transacting business in this 
 State, shall be entertained by any court, except on the suit of the 
 Attorney General of this State. 
 
 Section 30. That the Insurance Commissioner, or anj^ person 
 whom he may appoint, may examine any foreign association trans- 
 acting or applying for admission to transact business in this State. 
 The Insurance Commissioner may employ assistants for the purpose 
 of such examination, and he, or any person he may aiipoiiit, shall 
 have free access to all the books, papers and documents that relate 
 to the business of the association, and may summon and qualify as 
 witnesses under oath and examine its officers, agents, employes and 
 other persons in relation to the affairs, transactions and condition 
 of the association. He may, in his discretion, accept in lieu of such 
 examination [the examination] of the insurance department of the 
 State, territory, district, province or country where such association 
 is organized. All examinations made under the provisions of this 
 section shall be made at the expense of the association examined, 
 but the expenses of any examination shall not exceed two hundred 
 dollars.
 
 896 FRATERNAL SOCIETY LAW 
 
 If any such association or its officers refuse to submit to such ex- 
 amination, or to comply with the provisions of this section relating 
 thereto, the authority of such association to transact business ia 
 this State shall be revoked until satisfactory evidence is furnished 
 the Insurance Commissioner relating to the condition and affairs 
 of the association, and during such revocation the association shall 
 not transact any business in this State. 
 
 Section 31. That when the Insurance Commissioner on investi- 
 gation is satisfied that any foreign association transacting business 
 under this act has exceeded its powers, or has failed to comply with 
 the provisions of the law, or is conducting business fraudulently. 
 or is not carrying out its contracts in good faith, or is in such con- 
 dition as to render further proceedings hazardous to the public or its 
 certificate holders, he may revoke the certificate of authority granted 
 to it, and shall cause notification thereof to be published in one or 
 more newspapers of general circulation, and no new business shall 
 thereafter be done by it or its agents in this State while such default 
 or (disability continues, nor until its authority to do business is 
 restored by the Insurance Commissioner; provided that nothing in 
 this act shall prevent such association from applying to a court of 
 competent jurisdiction, by mandamus or otherwise, to compel said 
 Insurance Commissioner to issue such certificate, if such court, in its 
 discretion, should determine that said association was entitled, under 
 the law, to have said certificate issued to it. 
 
 Section 32. That nothing contained in this act shall lie construed 
 to affect or apply to grand or subordinate lodges of JMasons. Odd 
 Fellows or Knights of Pythias (exclusive of the insurance liriinch 
 of the Supreme Lodge Knights of Pythias), or to similar orders 
 which do not issue insurance certificates, nor to local lodges of an 
 association now doing business in this State, that provide death 
 benefits not exceeding three hundred dollars to any one person, or 
 disability benefits not exceeding three hundred dollars in any one 
 year to any one person, or both; nor to domestic associations v.'hich 
 limit their membership to the employes of a particular city or town, 
 designated firm, business house or corjioration. The Insurance Com- 
 missioner may require from any association such information as 
 will enable him to determine whether such association is exempt
 
 THE STATE OF TENNESSEE 897 
 
 from the provisions of this act. No association which is exempt by 
 the provisions of this section from the requirements of this act shall 
 give or allow, or promise to give or allow, to any person any com- 
 pensation for procuring new members. 
 
 Section 33. That associations coming within the definition of fra- 
 ternal beneficiary associations as defined by this Act, and now trans- 
 acting business as fraternal beneficiary associations, organized prior 
 to Anno Domini 1900, and authorized to do business in this State 
 prior to and at the time of the passage of this Act, and which shall 
 have established or may hereafter establish rates deemed by it ade- 
 quate to perpetuate its existence or meet its obligations, and in so 
 doing has increased or shall increase the payments required to be 
 made by any member, so that such member shall be unable for any 
 reason to make such payment and continue his membership, in such 
 case or cases any such association may make such allowance to such 
 member or members, by way of extended insurance, or reduced 
 benefit payable to a beneficiary designated in accordance with the 
 provisions of Section 6 of this Act as it may determine to be 
 equitable and provided for by the laws and regulations, and may 
 provide for paying the cost of carrying such extended insurance 
 out of any reserve, emergenc.v, surplus or other fund it has or shall 
 accumulate or create. 
 
 The provisions of this section shall not be construed as appli- 
 cable to any association which does not make provision for such 
 extended insurance in its laws or regulations, nor shall the mem- 
 bers of any association which does not, by its laws or regulations, 
 make provision for such extended insurance, have any right to or 
 interest in any fund which any such association may have now or 
 may hereafter create, either as a reserve, emergency, surplus or 
 other fund. 
 
 Section 34. That such associations shall not employ paid agents 
 in soliciting or procuring members, except in the organization or 
 building up of subordinate bodies, or granting members inducements 
 to procure new members. 
 
 Section 35. That each and every certificate issued by any asso- 
 ciation operating under the provisions of this Act shall be incon- 
 testable on account of erroneous or innocent statements made in the
 
 898 FRATERNAL SOCIETY LAW 
 
 application as to age, provided the member was within the age lim- 
 ited for membership at the time of the application ; and provided, 
 further, that in the settlement of any loss, where there was an error 
 as to age, such settlement shall be made on the basis of the correct 
 age. But no association operating under the provisions of this Act 
 shall contest the age of any member after his death unless the itroof 
 offered by the beneficiary shows the age of the deceased member to 
 be different from that given in his application ; then the correct age 
 may be ascertained and settlement made as herein provided. 
 
 Section 36. That any person, officer, member or examining physi- 
 cian, who shall knowingly or wilfully make any false or fraudulent 
 statement or representation in or with reference to any application 
 for membership, or for the purpose of obtaining money from or 
 benefit in anj- association transacting business under this Act, shall 
 be guilty of a misdemeanor, and upon conviction thereof shall be 
 punished by a fine of not less than one hundred dollars nor more 
 than five hundred dollars, or imprisonment in the county jail for not 
 less than thirty days nor more than one year, or both, in the discre- 
 tion of the court ; and any person who shall wilfully make a false 
 statement of any material fact or thing in a sworn statement as to 
 the death or disability of a certificate holder in any such association, 
 for the purpose of procuring payment of a benefit named in the 
 certificate of such holder, and any person who shall wilfully make 
 any false statement in any verified report or declaration under 
 oath required or authorized by this Act, shall be guilty of perjury, 
 and shall be proceeded against and punished as provided by the 
 statutes of this State in relation to the crime of perjurJ^ Any person 
 who shall solicit membership for. or in any manner assist in procur- 
 .ing membership in, any association not licensed to do business in 
 this State, or who shall solicit membership for. or in any manner 
 assist in procuring membership in any such association not aiithor- 
 ized as herein provided, to do business as herein defined in this 
 State, shall be P'uilty of a misdemeanor, and upon conviction thereof 
 shall be punished by a fine of not less than fifty nor more than two 
 hundred dollars. Any association, or any officer, agent or employe 
 thereof, neglecting or refusing to comply with, or violating any of 
 the provisions of this Act, the penalty for which neglect, refusal or
 
 THE STATE OF TENNESSEE 899 
 
 violatiou is not specified in this section, kIkiII be fined not exceeding 
 two hundred dollars upon conviction thereof. 
 
 Section 37. That the word "association." as used in tiiis act, 
 shall be taken and eonstiMied as iiicaninii: a fratiTiial beneficiary cor- 
 poration, society, order or voluntary association as defined by this 
 Act. The words "domestic association" shall be taken and con- 
 strued as meaning an association organized or incorporated under 
 the laws of this State. The words "foreign association" shall be 
 taken and constiiied as meaning an association organized or incor- 
 porated under the laws of another State, territory, district, province 
 or country. The word "State," as used in this act, shall be taken 
 and construed as meaning "State," "Territory," "District," 
 "Country" or "Province." All provisions of each section of this 
 Act except as otherwise provided shall be taken and construed as 
 applying to both domestic and foreign associations. 
 
 In the event of a vacancy in the office of the Insurance Commis- 
 sioner, or in the absence or disability of that officer, the Deputy 
 Insurance Commiss-iouer shall perform all the duties required of the 
 Insurance Commissioner by this Act. 
 
 Section 38. That nothing contained in this Act shall be con- 
 strued to require any society to make or cause to be made any valu- 
 ation of its benefit certificates for any purpose whatever, nor shall 
 the Insurance Department have the right to require or demand that 
 such valuation be made or embraced in the report of any fraternal 
 beneficiary society to the insurance department. 
 
 Section 39. That Chapter 113, Acts of 1901, passed March 22, 
 1901, and approved April 13, 1901, and all other laws and parts of 
 laws in conflict with the provisions of this Act, be and the same are 
 hereby repealed. 
 
 Section 40. That this Act take efi'ect from and after its passage, 
 the public welfare requiring it. 
 
 Passed April 14, 1905. Approved April 17, 1905. 
 
 Conditions Precedent to. 
 Where a certificate is issued to a member and accepted by him
 
 900 FRATERNAL SOCIETY LAW 
 
 subject to the conditions named on the back thereof and in the 
 application and in the laws, such conditions will be enforced. 
 
 Deacon vs. Clarke, Dec. 1903, 112 Tenn. 2S9. 
 
 Evidence as to Age and Pedigree. 
 
 In matters relating to age and pedigree, inscriptions on tomb- 
 stones and on family portraits and charts, engravings on rings, 
 and hear-say evidence generally, are admissible, and public registers 
 are competent evidence in this class of cases. 
 
 Murray vs. Supreme Hive, Ladles of the Maccabees, April, 1904, 112 
 Tenn. 664. 
 
 Evidence — What is Competent as to Age. 
 
 Copies of the British census report and of answers made to the 
 United States census enumerator, records of boards of health, and 
 applications for life insurance are admissible and competent as to 
 age and pedigree. 
 
 Murray vs. Supreme Hive. Ladies of the Maccabees, April, 1904, 112 
 Tenn. 664. 
 
 Expulsion — Latitude Allowed Societies. 
 
 Fraternal societies must of necessity determine as to the com- 
 petency and weight of evidence in expulsion proceedings, in pur- 
 suance of their own rules and laws, and where the expelled member 
 institutes suit to lie reinstated, the only question to be considered 
 by the court is whether the laws of the society were enforced fairly 
 and without oppression. 
 
 Murray vs. Supreme Hive, Ladies of the Maccabees, April, 1904, 112 
 Tenn. 664. 
 
 Insanity of Member No Bar to Right of Society to Affect His Con- 
 tract by Legislation. 
 
 Where a society is entitled under its laws to raise its assessment
 
 THE STATE OF TENNESSEE <)()1 
 
 rates, a member was bound by the legal aud reasonable action ol 
 the society in so doing, though \w was insane at the time. 
 
 Conner vs. Supreme Commandery Golden Cross, Supreme Court of 
 Tenn., Oct., 1906, 97 S. W. 306. 
 
 After-enacted Laws — Increasing Rates of the Members Valid. 
 
 The increase of a member's rates from $52.08 per annum to 
 $144.00 per annum is held not to be unreasonable, under the facts 
 set out in the ease. Upon the right of a society to raise the rates of 
 its members who had been in the society for a long time and apply 
 new rates at their attained ages, the following was said by the 
 court : 
 
 "The assured had carried insurance for a long series of years at 
 less than cost. He was required to pay the same rate as all other 
 members in his class — that is, those of the same age and holding the 
 same kind of policy. The end aimed at by the company was to make 
 each member pay according to the cost of his insurance, and while 
 this could not be ascertained with mathematical exactness, still this 
 was the object in view. The chief complaint seems to be that other, 
 younger men were not raised so much in their assessments, and 
 some were even reduced, but this was the result of making the 
 basis of assessment the age of the member and the estimated cost 
 of his insurance. It was evident that the old plan was a failure, and 
 the Court of Chancery Appeals report that some change in the 
 assessment plan was necessary to accomplish the ob,iects and pur- 
 poses of the order and save it from dissolution. It must be evident 
 that the younger men would not be burdened with a heavy cost of 
 insurance upon the older ones, and they would not join the order 
 and would withdraw if such a rule was attempted, and this would 
 leave the older men with no one but the old ones upon whom to 
 rely for their protection. As we view it, the effect of this rule was 
 only to accentuate the disabilities of age after the insured had 
 enjoyed indemnity for many years at less than cost, and we cannot 
 see that the basis of assessments was vmreasonable. " 
 
 Conner vs. Supreme Commandery Golden Cross, Supreme Court of 
 Tenn., Oct., 1906, 97 S. W. 306
 
 902 FRATERNAL SOCIETY LAW 
 
 Contracts of Members, of What Composed. 
 
 The laws of a societj', when pertinent and not in conflict with the 
 statute laws or the recognized rules of public policy, become part 
 of the contracts of the societies with their members. 
 
 Supreme Lodge, Knights of Pythias vs. La Malta, June, 1895, 95 
 Tenn. 157. 
 
 After-enacted Laws Valid. 
 
 A valid law passed by a fratei'nal society after the filing of an 
 application for membership and issuance of a certificate, and before 
 the death of the member, is operative against him and his bene- 
 ficiaries to defeat their rights, where in his application he agreed 
 to conform to the rules then in force or which might thereafter be 
 enacted, and such obedience is made a condition of the issuance 
 of the certificate. 
 
 Supreme Lodge, Knights of Pythias vs. La Malta, June, 1S95, 95 
 Tenn. 157. 
 
 Legislative Power Cannot be Delegated. 
 
 The supreme lodge of a fraternal society in which is vested by 
 the charter the sole power to legislate with respect to the bene- 
 ficiary fund, cannot legally delegate to a board of control the power 
 to pass a general law against suicide affecting the entire beneficiary 
 membership. 
 
 Supreme Lodge, K. of P. vs. La Malta, June, 1895, 95 Tenn. 157. 
 
 Warranty, Good Faith of Declarations. 
 
 An applicant for insurance, though warranting the truth of state- 
 ments and answers made to the medical examiner, is not required 
 to know and state in his application with absolute certainty his real 
 physical condition and a j)redisposition to certain diseases, but it is 
 sufficient if he in good faith discloses fully and truthfully all that 
 he knows about his past and present health. 
 
 Knights of Pythias vs. Cogbill, April, 1897, 99 Tenn. 28.
 
 THE STATE OF TENNESSEE 903 
 
 Agency of Medical Examiner. 
 
 A physician who acts as medical examiner for a society wliich 
 accepts or ratifies his examination will be regarded as the agent of 
 the society instead of the member in the making of such examina- 
 tion, although the examiner nuiy not have b(;en appointed by the 
 society, and although the application recites that the examiner shall 
 be held to be the agent of the applicant. 
 
 Knights of Pythias vs. Cogbill. April, 1897, 99 Tenn. 28. 
 
 Application, What Must be Stated in by Applicant. 
 
 In the absence of specific and direct inquiries, the applicant need 
 not disclose very slight and temporary illness, but only those more 
 serious attacks which have in some degree affected unfavorably his 
 general health or constitution. 
 
 Knights of Pythias vs. Cogbill, April, 1897, 99 Tenn. 28. 
 
 Beneficiaries, Who May Be, Rights of Assignee. 
 
 An assignment by a member of a society of a certificate payable 
 to himself, issued in place of the original certificate which was pay- 
 able to his wife, in pursuance of an agreement that the assignee, 
 who was in no way related to or interested in the continuance of 
 the life of the member, should pay to him the amount already paid 
 by him and assume and pay all subseqvieut assessments, is void as 
 against public policy, and the original beneficiary may recover from 
 the assignee in such a certificate, who has collected the insurance 
 thereunder, the difference between such an amount and the money 
 actually paid by the assignee in keeping the insurance alive. 
 
 Qulnn vs. Cath. Knights, May, 1897, 99 Tenn. SO. 
 
 Beneficiaxy, Vested Interests, Etc. 
 
 The beneficiary named in a certificate issued by a society on the 
 life of a member acquires no vested interest or right to the benefit,
 
 904 FRATERNAL SOCIETY LAW 
 
 but a mere expectancy, revocable at pleasure of the member, when 
 under the laws of the society he has the right to surrender his cer- 
 tificate and take out another. 
 
 Lane vs. Lane, Oct., 1897, 99 Tenn. 639. 
 
 Forfeiture — No Presumptions of Legality as to Assessments Levied. 
 
 To defeat an action upon a certificate on account of non-payment 
 of assessments, it must be affirmatively and distinctly proved that 
 the assessment which the member failed to pay was made in exact 
 accord with the laws of the society, and no presumption will be in- 
 dulged in such a case in favor of the regularity or legality of the 
 assessment. 
 
 Stewart vs. Grand Lodge, Jan., 1S9S, 100 Tenn. 267. 
 
 Beneficiary, Right of Change Absolute. 
 
 A member in a fraternal society may change his beneficiary when- 
 ever and in whatever manner he may desire, within the rules of the 
 order. Such rules are designed for the protection of the order, and 
 if waived by it, their non-observance is not available to others. 
 
 Schardt vs. Schardt, Jan., 1S98, 100 Tenn. 276. 
 
 Beneficiary Named Not Affected by Member's Will. 
 
 A member cannot directly or indirectly dispose of his certificate 
 by will so as to defeat or afi'ect the rights of the beneficiaries named 
 therein. 
 
 Schardt vs. Schardt, Jan., 1S98, 100 Tenn. 276. 
 
 Beneficiary Not Authorized, Void. 
 
 A benefit certificate that names as beneficiary a person not au- 
 thorized by the charter and laws of the society to receive the benefit, 
 is void. 
 
 Ownby vs. Supreme Lodge Knights of Honor. April, 1898, 101 Tenn. 
 16.
 
 / 
 
 THE STATE OF TENNESSEE 905 
 
 Beneficiary — Dependency, What is ? 
 
 A benefit certificate. ill favor of one for whom the member is under 
 no legal or moral obligation to provide, cannot be sustained as being 
 for a person dependent upon the member, although the latter may 
 have bestowed gifts or charities upon such person and had con- 
 templated or promised to bestow others. 
 
 Ownby vs. Supreme Lodge Knights of Honor. April, 1S9S, 101 Tenn. 
 16. 
 
 Beneficiary Designation by Member Insane, Void. 
 
 The surrender of a certificate and substitution of a new one 
 naming a different beneficiary made by a member incapable, by 
 reason of mental infirmity, of exercising judgment and discretion, is 
 void and does not defeat the rights of the beneficiaries named in the 
 first certificate. 
 
 Ownby vs. Supreme Lodge Knights of Honor, April, 189S, 101 Tenn. 
 16. 
 
 Forfeiture, Waiver — Course of Dealing. 
 
 The insurer is estopped to claim forfeiture of a life insurance con- 
 tract for non-payment of dues where it, through a long-continued 
 and uniform course of dealing with the member, had not exacted 
 punctual payment of the dues, but permitted the member to pay 
 upon notice or demand and accepted such payments though made 
 after maturity, without objection ; provided the particular dues for 
 the non-payment of which forfeiture is claimed were paid or ten- 
 dered within reasonable time after such notice or demand and in 
 reasonable conformity to such course of dealing. 
 
 Insurance Co. vs. Hyde, Oct., 1898, 101 Tenn. 396. 
 
 Forfeiture, Prerequisites to Enforcing. 
 
 Before non-payment of an amount which under the terms of the 
 contract must be ascertained and fixed by assessment, can be sue-
 
 906 FRATERNAL SOCIETY LAW 
 
 eessfully relied ou as a ground for forfeiting the policy, the insurer 
 must plead and prove that the assessment had been duly made in 
 accordance with the charter and by-laws of the society aad the 
 terms of the contract. 
 
 Insurance Co. vs. Hyde, Oct., 1898, 101 Tenn. 396. 
 
 Warranty, Rvde Respecting. 
 
 * * * A eertilicate conditioned upon the truth of the assured 's 
 answers and representations contained in his application and in the 
 report of the medical examiner will be vitiated alike by any mis- 
 statement of fact whether made wilfully and with knowledge of its 
 falsity or in good faith through ignorance of the truth; but as to 
 matters of opinion, it is sufficient if the statement was made in good 
 faith and on the best information had or obtainable." 
 
 Knights of Honor vs. Dickson, April, 1899, 102 Tenn, 255. 
 
 Warranty as to Age Stated in the Application. 
 
 The statement as to the applicant's true age made in an applica- 
 tion for membership which declares that the statements and repre- 
 sentations made therein shall be the basis of the contract, is a part 
 of the contract although the same is not incorporated and referred 
 to in the certificate issued. 
 
 McCarthy vs. Cath. Knights, April, 1899, 102 Tenn. 345. 
 
 Warranty as to Age Waived. 
 
 A misstatement as to the applicant's age in an application which 
 is made a part of the contract will not defeat a recovery notwith- 
 standing that contrarj^ to the statement the applicant had passed 
 the age limit prescribed by the laws of the society, where the appli- 
 cant did not know her exact age, and where the application was 
 made out on one of the society's blanks — presumably by some of 
 its officers or members — and the date and place of her birth were not 
 filled in the blanks, and the facts as to her character and age were,
 
 THE STATE OF TENNESSEE 007 
 
 under the provisions of the laws referred to a committee upon whose 
 report a certificate was issued, ujjon which dues were paid for 
 nearly seven years. 
 
 McCarthy vs. Cath. Knights, April, 1S99, 102 Tenn. 345. 
 
 Warranty Under Reinstatement Application. 
 
 False statements of the iiicinbor in a health certificate upon the 
 faith of which a lapsed contract has been renewed, to the effect that 
 he had not had certain diseases or consulted a physician during 
 the lapse period, will not render the contract void unless the dis- 
 eases with which he was afflicted were permanent and habitual, indi- 
 cating some vice in the constitution and having some bearing upon 
 the general health and continuance of life. Mere temporai-y ail- 
 ments that are curable and pass away will iidt suffice. 
 
 Woodward vs. Insurance Co., Jan., 1900, 104 Tenn. 49. 
 
 Forfeiture Through Vices or Habits. 
 
 Forfeiture of a contract on account of the use of forbidden drugs, 
 causing impairment of health and hastening death, does not occur 
 where such drugs were used by the member as an invalid under the 
 advice of a physician and in good faith as a medicine, and in such 
 quantities and manner as they were prescribed. 
 
 Knights of Pythias vs. Allen, May, 1900, 104 Tenn. 623. 
 
 Certificate Issued After Applicant's Death Void. 
 
 A benefit certificate which is signed and delivered after the death 
 of the applicant is void, no matter how long the application for it 
 had been pending, or what other steps had been taken to mature 
 and perfect it, where the liability of the society is conditioned by 
 the terms of the contract upon delivery of the certificate to the ap- 
 plicant while living and in good health. 
 
 McLendon vs. Woodmen of the World. April, 1901. 106 Tenn. 695.
 
 908 FRATERNAL SOCIETY LAW 
 
 Contract, of What Composed. 
 
 The application, with the constitution and laws of the society, 
 constitute the basis of its contract and ai-e parts of it as fully as if 
 copied into same, where they are referred to and declared such on 
 the face of the certificate. 
 
 McLendon vs. Woodmen of the World, April, 1901, 106 Tenn. 695. 
 
 Application, Delay in Acting Upon, Not Actionable. 
 
 Mere delay of a society in passing upon an application for a 
 benefit certificate gives no rights to the applicant, and does not 
 afford any presumption of acceptance of the application. 
 
 McLendon vs. Woodmen of the World, April, 1901, 106 Tenn. 695. 
 
 Beneficiary, Right of Mother Against Wife. 
 
 For the facts in a case where the mother was held to be the bene- 
 ficiary in a certificate taken out after a member's marriage, and in 
 a contest between the mother and the wife, see 
 
 Manley vs. Manley, May, 1901, 107 Tenn. 191. 
 
 Agency of Medical Examiner Limited. 
 
 While the medical examiner is an agent with limited powers, 
 nevertheless, his acts in and about business entrusted to his care 
 are binding, within the scope of his authority, upon the society. 
 
 Bennett vs. Mass. Mut. Life Ins. Co., June, 1901, 107 Tenn. 371. 
 
 After-enacted Law Cutting Down Benefit Ultra Vires. 
 
 A clause in the contract by which the member agrees to conform 
 in all respects to the laws, rules and usages of the order, now in 
 force or which may hereafter be adopted by the society, does not 
 give to the society the power to reduce, by amendment of its laws 
 or otherwise, without the member's express consent, the amount
 
 THE STATE OF TENNESSEE »09 
 
 payable in his certificate. Such by-law is ultra vires and void. The 
 reserved right of legislation under such contract is one of preserva- 
 tion and not of destruction of the insurance contract. 
 
 y F 
 
 Gaut vs. Am. Legion of Honor, Oct., 1901, 107 Tenn. 603. 
 Forfeiture — Waiver by Custom of Dealing. 
 
 It is well settled that an insurance company can and ought to be 
 estopped from insisting upon a forfeiture for non-payment of the 
 premiums when due, when by any course of action, representation 
 or dealing the assured has been led to believe that by conformity 
 thereto a forfeiture of the contract will not bo incurred, followed 
 by due conformity on his part. 
 
 Aetna Life Ins. Co. vs. Fallow, April, 1903, 110 Tenn. 720. 
 
 Construction of Repugnant Provisions of Contracts. 
 
 Where two clauses of a contract are so totally repugnant that 
 they cannot stand together, the first governs rather than the last, 
 and especially should this rule of construction prevail when it ap- 
 pears that the first clause expresses the chief object and purposes 
 of the contract. 
 
 Bean vs. Aetna Life Ins. Co., Sept., 1903, 111 Tenn. 186. 
 
 Consolidation of Suits on One Certificate. 
 
 Two suits by different beneficiaries against a benefit society on 
 the same certificate are properly consolidated where this brings all 
 the matters and parties against the society before the court in such 
 shape that the rights of the parties against the society, and as be- 
 tween themselves, may be adjusted in the one consolidated suit. 
 
 Clement vs. Clement, and Clement vs. Supreme Lodge, Knights of 
 Pythias, April, 1904, 113 Tenn. 40. 
 
 After-enacted Law Valid. 
 
 A by-law of a society made after a certificate is issued and before
 
 910 FRATERNAL SOCIETY LAW 
 
 a substitute certificate is issued, providing that only a proportionate 
 part of the insurance should be paid in case of suicide of the mem- 
 ber, enters into the substitute certificate and becomes a part of the 
 contract between the parties, such by-law being reasonable, valid 
 and enforcible. 
 
 Clement vs. Clement, and Clement vs. Supreme Lodge, Knights of 
 Pythias, April, 1904, 113 Tenn. 40. 
 
 Suicide or Death by Reckless Use of Drugs. 
 
 For the facts in a ease where the Court said: "The evidence, as 
 we see it, shows either intention to commit suicide, or such a reck- 
 less use of the deadly drug as the assured knew or must have known 
 would produce death," see 
 
 Clement vs. Clement, and Clement vs. Supreme Lodge, Knights of 
 Pythias, April, 1904, 113 Tenn. 40. 
 
 Certificate, When Surrendered, is Dead. 
 
 Where a certificate in a mutual benefit society was surrendered 
 b}' the member in his lifetime and another certificate issued in favor 
 of a different beneficiary, the original certificate becomes functus 
 officio. 
 
 Alfsen vs. Crouch, Sept., 1905, 11.5 Tenn. 352. 
 
 Beneficiaries, Provisions Respecting May be Waived. 
 
 The provision in the laws of a society limiting persons who may 
 be made beneficiaries in certificates issued by it, may be waived by 
 the society. 
 
 Alfsen vs. Crouch, Sept., 1905, 115 Tenn. 352. 
 
 Forfeiture Provisions Self-executing. 
 
 Where a life insurance contract provides that it shall lapse and 
 be void if the ])r(>niimns thereunder are not paid Avheu due, it Is
 
 THE STATE OF TENNESSEE 911 
 
 well settled that the contract is forfeited if the premiums are not 
 paid as stipulated. 
 
 Pacific Mut. Life Ins. Co. vs. Galbraith, Sept., 1905, 115 Tenn. 471. 
 
 Forfeiture, Waiver by Course of Dealing. 
 
 \/ Where a contract contains a stipulation that non-payment of 
 l)r('niiums when due shall work a forfeiture of the contract, mere 
 voluntary indulgence in the payment of a particular premium, and 
 without agreement for like indulgence in respect of future pre- 
 miums, or a course of dealing implying such an agreement, does not 
 constitute a waiver of forfeiture for failure to pay premiums when 
 due. 
 
 Thompson vs. Fidelity Mut. Life Ins. Co., April, 1906, 116 Tenn. 557. 
 
 Assessments, When Right to Levy Limited. 
 
 A contract provided that while the rates specified therein were 
 not fixed, it was believed that such rates would never be exceeded, 
 and that if any imexpected emergency should arise whereby the 
 mortuary and reserve fund should become exhausted, then in such 
 case only it was agreed that the certificate holder .should be liable 
 for such further assessments as would he necessary to meet the 
 emergency and maintain the solvency of the society. Held, That the 
 society had no power, under the contract nor under the law, to in- 
 crease the rates on existing insurance except in the case of an 
 emergency so specified: and where rates under such a contract were 
 illegally increased, the members were not bound to pay them to 
 prevent a forfeiture. 
 
 Hicks vs. Northwestern Aid Assn., Supreme Ct. Tenn., Oct., 1906, 
 96 S. W. 962. 
 
 Assessments, When Tenders of Are Waived. 
 
 "Where a society, after illegally raising its rates, wholly changed 
 its plan of business, basing it on the new sebedxde. and the society
 
 912 FRATERNAL SOCIETY LAW 
 
 insists ou payment of the new rates by an old member who was will- 
 ing to pay his contract rate, a tender of such rate was waived. 
 
 Hicks vs. Northwestern Aid Assn., Supreme Ct. Tenn., Oct., 1906, 
 96 S. W. 962. 
 
 Beneficiaries, Death of, How the Fund is Affected Thereby. 
 
 The by-laws of a society provided that members might change 
 their beneficiaries on application accompanied by the consent of the 
 original beneficiary and surrender of the original certificate. A cer- 
 tificate was issued to a member for the benefit of his sister, who died 
 before the member. The member made no change, and at his death 
 the certificate originally issued was in force. Held, That the fund 
 passed, under the statute of distribution, to the distributees of the 
 sister's estate. 
 
 Simms vs. Randall, Supreme Ct. Tenn., Oct., 1906, 96 S. W. 971. 
 
 Jurisdiction of Courts Over Foreign Societies. 
 
 A non-resident may sue a foreign company legally doing business 
 in the State on a contract written outside the State, though the 
 cause of action occurred outside the State. 
 
 Patton vs. Continental Casualty Co., Supreme Ct. Tenn., Sept., 1907, 
 104 S. W. 305.
 
 THE UTATE OF TEXAS 913 
 
 THE 
 
 STATE OF TEXAS. 
 
 CHAPTER 44. 
 
 (The Section numbers employed correspond to those in the Insi:r- 
 ance Code of 1907 issued by the Insurance Commissioner of Texas.) 
 
 Lodge System — Ritualistic Form of Work — Government to be Rep- 
 resentative — Payment of Death Benefits. 
 
 Section 188. A fraternal beneficiary association is hereby de- 
 clared to be a corporation, society or voluntary association, formed 
 or organized and carried on for the sole benefit- of its members and 
 the beneficiaries, and not for profit, or that issues benefit certificates 
 to such of its members only as may apply therefor, and that main- 
 tain a separate branch composed of the members who hold such 
 certificates issued and governed by or through a separate board of 
 management, authorized and appointed by such corporation, society 
 or association for the sole purpose of managing and conducting such 
 branch. Bach association shall have a lodge system with ritualistic 
 form of work and elective representative form of government, and 
 shall make provision for the payment of benefits in case of death, 
 and may make provision for the payment of benefits in case of sick- 
 ness, temporary or permanent physical disability, either as the 
 result of disease, accident or old age -. provided, that the period of 
 life at which payment of physical disability benefits on aecoiint of 
 old age commences, shall not be under seventy years, subject to 
 their compliance with its constitution and by-laws. The fund from 
 which the payment of such benefits shall be paid, which shall be 
 58
 
 914 FRATERNAL SOCIETY LAW 
 
 known as the benefit fund, and the fund from which tlie expenses 
 of such association shall be defrayed, which shall be known as the 
 general fund, shall be derived from assessments, monthly payments 
 or dues collected from its members. Payment of death benefits shall 
 be to the families, heirs, blood relatives, affianced husband or affi- 
 anced wife, or to persons dependent upon the member at the time 
 of his death, and should there be no one of the classes herein men- 
 tioned, capable of taking the benefit at the death of the member, 
 then the same shall pass, as provided by the laws and rules of the 
 association. Such association shall be governed by this act, and 
 shall be exempt from the provisions of the insurance laws of this 
 State, and no law hereafter passed shall apply to them unless they be 
 expressly designated therein. 
 
 Note. — Associations must provide for substantial death benefit; sick and 
 accident must be incidental and not of the essence of the contract (Attor- 
 ney General's Opinion, September 11, 1900). The law does not say what 
 proportion shall be death benefit (Attorney General's Opinion, November 5, 
 1900). Fraternal beneficiary associations may not write endowment poli- 
 cies (Attorney General's Opinion, August 18, 1901). 
 
 All Associations Described Herein, Now Doing Business in Texas, as 
 Well as Those Which May Hereafter Come Into the State, Must 
 Comply With the Provisions of This Act. 
 
 Section 189. All such associations coming within the description 
 as set forth in Section 1 [Section 188] of this act, organized under 
 the laws of this or any other State, province or territory, and now 
 doing business in this State, may continue such business, and 
 all associations of a fraternal beneficiary character not coming 
 within the description, as set forth in Section 1 of this act. and now 
 doing business in this State, may continue such business; provided, 
 that all such associations of eitlier character above mentioned shall 
 hereafter comply with the provisions of this act regulating annual 
 reports and the designation of the Conimissioner of Insurance as the 
 person upon whom process may be served, as hereinafter provided, 
 and otherwise complying with the terms of this act hereinafter 
 provided.
 
 THE HTATE OF TEXAS 915 
 
 Must File Copy of Charter, Constitution and By-Laws — Must Ap- 
 point Commissioner to Accept Service of Legal Process — Commis- 
 sioner May Examine. 
 
 Section ino. Any snch association comin!"; within the description 
 as set forth in Section 1 [Section 188] of this act/organized under the 
 laws of any other State, province or territory, and not now doing 
 business in this State, shall be admitted to do business within this 
 State when it shall have filed with the Commissioner of Insurance a 
 duly certified copy of its charter and articles of association, and a copy 
 of its constitution and by-laws, certified to by its secretary or cor- 
 responding officer, together with an appointment of the Commissioner 
 of Insurance of this State as a person upon whom process may be 
 served in any suit in which such association may be a part.y ; and 
 provided, that such association shall be shown to be authorized to do 
 business in the State, province or territory in which it is incorpor- 
 ated or organized, in case the laws of such State, province or terri- 
 tory shall provide for such authorization, and in case the laws of 
 such State, province or territory do not provide for any formal 
 authorization to do business on the part of such association, then 
 such association shall be shown to be conducting its business in ac- 
 cordance with the provisions of this act, for which purpose the 
 Commissioner of Insurance of this State may personally, or by some 
 person to be designated by him, examine into the condition, affairs, 
 character and business methods, accounts and books of such asso- 
 ciation at its home office, which examination shall be conducted at 
 the expense of such association, such expense not to exceed five 
 dollars per day and actual expenses of travel, and reasonable hotel 
 bills of the person making such examination; jirovided, the cost of 
 such examination shall never exceed the total sum of fifty dollars; 
 and provided further, that such association shall be required to 
 furnish such an' annual statement on entering the State for the 
 preceding year's business, snch as is set forth in the requirements 
 of Section 5 [Section 192] of this Act. 
 
 Commissioner Shall Keep a Record of Process Served on Him. 
 
 Section 191. When legal process against any such association is
 
 916 FRATERNAL SOCIETY LAW 
 
 served upon the Commissioner of Insurance of this State, in any suit 
 in which such association may be a party, he shall immediately notify 
 the association of such service by letter prepaid and directed to its 
 secretary or corresponding officer, and shall within three days after 
 such service, forward in the same manner a copy of the process 
 served on him. The plaintiff in such suit shall, at the time such pro- 
 cess is served, pay the Commissioner of Insurance a fee of two 
 dollars, which shall be recovered by him as part of the cost if he 
 prevails in the suit. The Commissioner of Insurance shall keep a 
 record of all the process served on him, showing the day and hour of 
 such service, and any process served on said commissioner as herein 
 provided shall be valid and binding on such association. 
 
 Annual Statement, and What It Must Show. 
 
 Section 192. Every such association doing business in this State 
 shall, on or before the first day of March of each year, make and 
 file with the Commissioner of Insurance of this State a report of its 
 affairs and operations during the year ending on the thirty-first day 
 of December of the previous year, which annual report shall be in 
 lieu of all other reports required by any other law. Such report 
 shall be upon blank forms to be provided by the Commissioner of 
 Insurance, and shall be verified under oath by the duly authorized 
 officer of such association, and shall be published, or the substance 
 thereof, in the annual report of the Commissioner of Insurance 
 under a separate part, titled "Fraternal Beneficiary Associations," 
 and shall contain answers to the following questions : 
 
 (1) Number of certificates issued during the year or members 
 admitted. 
 
 (2) Amount of indemnity affected thereby. 
 
 (3) Number of losses or benefit liabilities incurred. 
 
 (4) Number of losses or benefit lialiilities paid. 
 
 (5) The amount received from each assessment for the year. 
 
 (6) Total amount paid members, beneficiaries or heirs. 
 
 (7) Number and kind of claims for which assessments have been 
 made. 
 
 (8) Number and kinds of claims compromised or resisted, and 
 brief statement of reasons.
 
 THE STATE OF TEX AH 917 
 
 (9) Does association eliarge annua) or other jicriddicjil dues or 
 admission fee? 
 
 (10) How much on each one thousand dollars, nnnually or per 
 capita, as the case may be? 
 
 (11) Total amount received, from what source, and distribution 
 thereof. 
 
 (12) Total amount of salaries paid to officers. 
 
 (13) Does association guarantee in its certificate fixed amounts 
 to be paid, regardless of amount realized from assessments, dues, 
 admission fees and donations? 
 
 (14) If so, state what amount guaranteed and the security of 
 such guarantee. 
 
 (15) Has the association a reserve or emergency fund? 
 
 (16) If so, how is it created and for whnt purpose, the amount 
 thereof, and how invested? 
 
 (17) Has the association more than one class? 
 
 (18) If so, how man.y, and the amount of indemnity in each? 
 
 (19) Number of members in each class. 
 
 (20) If voluntary, so state and give date of organization. 
 
 (21) If organized under the laws of this State, under what law 
 and at what time, giving chapter and year and date of the act. 
 
 (22) If organized under the laws of any other State, under 
 what law and at what time, giving chapter and year and date of 
 the act. 
 
 (23) Number of certificates of beneficiary membership lapsed 
 during the year. 
 
 (24) Number in force at the beginning of the year, and end of 
 the year ; if more than one class, number in each class. 
 
 (25) Name and addresses of its president, secretary and treas- 
 urer or corresponding officer. 
 
 The Commissioner of Insurance is authorized and empowered 
 to address any additional inquiries to any such association in rela- 
 tion to the matters embraced in such report, and such officers of 
 such association as the Commissioner of Insurance ma.v require 
 shall promptly reply in writing, under oath, in all such inquiries.
 
 918 FRATERNAL SOCIETY LAW 
 
 Refusal of Association to Make Report Forfeits Right to Do Business. 
 
 Section 193. Any such association refusing or necjlecting to make 
 the report provided for in this act (or that shall fail to pay any valid 
 final judgment rendered against it in any of the courts of this State 
 vrithin sixty days after the rendition thereof), shall be excluded 
 from doing business within this State. Said Commissioner of In- 
 surance must within sixty days after failure to make such report, or 
 in case any such association shall exceed its powers, or shall con- 
 duet its business fraudulently, or shall fail for a period of sixty days 
 to pay off any valid final judgment which may be rendered against 
 it in any of the courts of this State, or shall fail to comply with any 
 of the provisions of this act, give notice in writing to the Attorney 
 General, who shall immediately commence an action against any 
 such association to enjoin the same from carrying on any business 
 in this State; and no injunction against any such association shall 
 be granted by anj' court except on application of the Attorney Gen- 
 eral, after the request of the Commissioner of Insurance wliether 
 the State or a member or other party seeks relief. No association so 
 enjoined shall continue business until such report shall be made 
 (nor until such valid final judgment shall be paid) or overt act or 
 violation complained of shall have been corrected, nor until the costs 
 of such action be paid by it : provided, the courts shall find that such 
 association was in default as charged, whereupon the Commissioner 
 of Insurance shall reinstate such association, and not until then 
 shall such association be allowed to again do business in this State. 
 
 Pees. 
 
 Section 194. Every such association coming within the descrip- 
 tion as set forth in Section 1 [Section 1881 of this act shall pay 
 annually to the Commissioner of Insurance the following fees in 
 connection with its entrance into the State : 
 
 Fee for filing certified copy of chai'ter $5 00 
 
 Fee for certificate of authority to association 1 00 
 
 Fee for filing annual statement 1 00
 
 THE STATE OF TEXAS <jl9 
 
 Agent or Solicitor Must Hold Certificate From Commissioner of In- 
 surance — Penalty for Failure. 
 
 Section 195. Any person who solicits for or organizes lodo:ps of 
 such associations as are described in the first section of this act 
 without first obtaining from the Commissioner of Insurance a cer- 
 tificate of authority showing that the association has complied with 
 the provisions of this act, and is entitled to do business in this State, 
 shall be deemed guilty of a misdemeanor and, upon conviction, shall 
 be punished by a fine of not less than one hundred dollars ($100.00) 
 nor more than two hundred and fifty dollars (.$250.00), or by im- 
 prisonment in the county jail for not less than three (3) nor more 
 than six (6) months, or by both such fine and imprisonment; pro- 
 vided, the provisions of this section shall not be so construed as to 
 prohibit any member or members of a local or subordinate lodge 
 from soliciting any person or persons to become a member of any 
 local or subordinate lodge already in existence ; and provided fur- 
 ther, the provisions of this section shall not apply to any member 
 or members of any local or subordinate lodge who participates in, 
 supervises, directs or conducts the organization or establishment of 
 any local or subordinate lodge within tlie limits of the county of 
 his or their residence or lodge district. 
 
 May Collect Excessive Assessments for the Purpose of Creating a 
 Reserve Fund. 
 
 Section 196. Any fraternal beneficiary association organized under 
 the laws of this State, or any other State, province or territory, 
 doing business in this State under the provisions of thii? act, which 
 shall provide in its constitution or by-laws for the collection of 
 assessments from its members at a rate higher than may be neces- 
 sary to pay ordinary death or disability claims or benefits, for the 
 purpose of creating a reserve fund to be used in cases of emergency. 
 or for the purpose of maintaining a maximum rate of assessment. 
 shall have the right to do so, and such reserve fund shall constitute 
 a part of the benefit fund, and such association shall not be per- 
 mitted to use such fund for any pui'pose except the payment of 
 death or disability benefits, and such reserve funds shall be invested
 
 920 FRATERNAL SOCIETY LAW 
 
 ill such securities and iu such manner as may be directed and ap- 
 proved by the board of trustees of such association. 
 
 Funds Must Be Kept Separate. 
 
 Section 197. The benefit fund and the general fund of any fra- 
 ternal beneficiary association doing business in this State under the 
 provisions of this act, shall each be kept as a separate fund, and it 
 shall be unlawful to transfer or use any part of the benefit fund for 
 any other purpose than the payment of benefits or expenses incurred 
 in the settlement of beneficiary claims. 
 
 Money or Other Benefits Not Liable for the Debts of the Beneficiary. 
 
 Section 198. The money or other benefits, charity, relief or aid, 
 to be paid, provided or rendered by any association authorized to 
 do business under the provisions of this act. shall not be liable for 
 the debts of the beneficiary or holder of any certificate and shall not 
 ' be subject to garnishment or other process at the suit of any creditor, 
 nor shall it be taken, seized, appropriated or applied b.y any legal or 
 equitable process or bj' operation of law, to the debts of the certifi- 
 cate holder or any beneficiary named in such certificate or any per- 
 son who may have an.y rights thereunder. 
 
 May Provide for the Meeting of Its Legislative Body in Any Other 
 State Where it Shall Have Subordinate Bodies. 
 
 Section 199. Any fraternal beneficiary association organized under 
 the laws of this State, or doing business in this State, may pro- 
 vide for the meetings of its legislative or governing body in any 
 other State, province or territory wherein such associations shall 
 have subordinate bodies, and all business transacted at such meet- 
 ings shall be valid in all respects, as if such meetings were held in 
 this State, and when the laws of such association provide for the 
 election of its officers by votes to be cast in its subordinate bodies, 
 the votes so cast in such bodies in another State, province or terri- 
 tory shall be valid as if cast within this State.
 
 THE STATE OF TEXAS 921 
 
 Reciprocal Relations — May Assess, Levy and Collect From Its Mem- 
 bers. 
 
 Section 200. Any fraternal beneficiary association doing business 
 in this State when by its laws, rules and constitution, has and main- 
 tains reciprocal relations with any supreme or orand ])ody of any 
 other corporation or association, resident of another jirovincc. State 
 or territory, shall have the right to assess, levy and collect from its 
 members, and pay the same over to such supreme or grand body, as 
 may be due it as provided by the laws and constitution of such 
 local association. 
 
 Seven or More Persons Must Petition in Writing for Articles of 
 Incorporation — General Provisions. 
 
 Section 201. Seven or more persons, citizens of the United States, 
 and two of whom must be citizens of this State, may apply for and 
 receive articles of incorporation for the organization of a fraternal 
 beneficiary association. Such application must be in writing, and 
 signed by the applicants, and must be acknowledged before some 
 authorized officer to take acknowledgments of deeds, and same shall 
 set forth : 
 
 (1) The names and places of residence of the applicants. 
 
 (2) Proposed corporate name of the association, which shall not 
 too closely resemble the name of any other similar organization. 
 
 (3) The object and purpose for which the association is formed, 
 and same shall not include more liberal powers than are granted by 
 this act. 
 
 (4) The location of the principal office of the corporation, which 
 may be in any State, province or territory, where the association has 
 subordinate bodies. 
 
 (5) Number of trustees, directors or similar officers, who shall 
 manage the business of the corporation, and the names of such 
 directors for the first year, or until the governing body shall meet. 
 
 (6) The term for which such corporation shall exist shall not 
 exceed fifty years. Such charter shall be filed with the Secretary of 
 State, who shall record the same at length in a book kept for that 
 purpose, and retain the original on file in his office; a copy of the
 
 922 FRATERNAL SOCIETY LAW 
 
 charter or of the record thereof, certified under the great seal of the 
 State of Texas, shall be evidence of the creation of the corporation. 
 Such charter may be amended at any time by filing with the Secre- 
 tary of State the desired amendments, properly acknowledged, as 
 required in obtaining a charter. 
 
 Fee for Charter Fifty Dollars. 
 
 Section 20l2. The fee for such charter shall be fifty dollars, and 
 for each amendment twenty -five dollars, which shall be paid to the 
 Secretary of State at the date of the filing of such charter and 
 amendments. 
 
 Certain Railway Orders Exempt. 
 
 Section 203. The provisions of this act shall not apply to nor 
 include the Brotherhood of Locomotive Firemen, Brotherhood of 
 Locomotive Engineers, Brotherhood of Railroad Trainmen, Order of 
 Railway Conductors. Order of Railway Telegraphers, Switchmen's 
 Union of North America, and Railway ]\Iail Association. Act of 
 May 4, 1899. (Sec. 16, Chap. 115, General Laws 26th Leg. as 
 amended by Sec. 1, Chap. 113, General Laws 28th Leg. as amended 
 by Sec. 16. of Chap, 106, General Laws 29th Leg.) 
 
 Beneficiary, Change of. 
 
 Where the constitution of a society provides a method by which 
 change of beneficiary may be effected, the method provided is ex- 
 clusive of all others and must be substantially complied with. 
 
 Flowers vs. Sovereign Camp, Woodmen of the World, Court of Civ. 
 App. of Texas, November. 3905, 90 S. W. 526. 
 
 Fraternal Societies Exempt from General Insurance Laws. 
 
 The statutes of the State relating to insurance and providing 
 penalties for failure to pay insurance contracts within the time 
 specified therein, is held not to appl.v to fraternal beneficiary 
 
 societies.
 
 THE STATE OF TEXAS 923 
 
 Sovereign Camp, Woodmen of llie World vs. Carrington, Texas Ct. 
 Civ. App., Nov., 1905, 90 S. W. 921. 
 
 Agency — Waiver of Laws by Local Lodge Officer. 
 
 A clerk of a local camp to whom the benefit certificate was en- 
 trusted for delivery and who had discretion to withhold il during 
 the sickness of the member, but who delivered it to the mother of 
 the member, was held to have waived a provision in the certificate 
 and in the constitution of the society to the effect that no liability 
 should begin on any certificate until, delivered to the insured in 
 person and while in good health. 
 
 Sovereign Camp, Woodmen of tlie World vs. Carrington, Texas Ct. 
 Civ. App., Nov., 1905, 90 S. W. 921. 
 
 Beneficiary, Death of — Rights of Wife. 
 
 A member's wife, who was named as his beneficiary, having died 
 before the certificate became payable, ;ind tlie member having re- 
 married and never changed his beneficiary, it was held that the 
 certificate was payable to the surviving wife under a provision in 
 the laws of the society requiring payments to be made in such 
 cases to the next living relation, and further providing that in de- 
 termining who is such next living relation the order shall be the 
 member's wife, children, adopted children, parents, bi'others, sisters, 
 or other blood relatives, or persons dependent upon the member. 
 
 Harris vs. Harris, Tex. Ct. Civ. App., Nov., 1906, 97 S. W. 504. 
 
 Suicide — Rule as to Burden of Proof. 
 
 Where a certificate exempted a society from liability for death 
 by suicide, and in an action on the certificate it apjieared that the 
 member came to his death by a gunshot while alone in his room, 
 the burden was upon the society to show suicide. 
 
 Sovereign Camp, Woodmen of the World vs. Boelime. Tex. Ct. Civ. 
 App., Nov. 1906, 97 S. W. 847.
 
 924 FRATERNAL SOCIETY LAW 
 
 Warranty, Definition of. 
 
 A warranty in an insurance contract is a statement made therein 
 by the insured which is susceptible of no construction other than 
 that the parties mutually intended that the contract should not be 
 binding unless siich statement be literally true. 
 
 Phoenix Assurance Co. vs. Munger Improved Co., Nov., 1898, 92 Texas 
 297. 
 
 Contract, Situs of. What Laws Govern. 
 
 A contract of insurance which promised payment on fulfillment 
 of its conditions, at the home office of the company in Missouri, was 
 governed as to the effect of its conditions as to misrepresentations in 
 the application by the statutes in that State. 
 
 Seiders vs. Merchants Life Assn., Jan., 1900, 93 Texas 194. 
 
 Proofs of Loss, False Statements in. 
 
 While liability on an insurance contract may be contested on the 
 ground of a false statement in the proofs of loss, the claimant may 
 show ia avoidance that the statement was not wilfully false. 
 
 Insurance Co. vs. Wicker, March, 1900, 93 Texas 390. 
 
 Warranty, Oral Statements Do Not Change Written. 
 
 The validity of an insurance contract issued on a written appli- 
 cation and making the statements therein warranties, must depend 
 on the truth of such written statements regardless of any oral com- 
 munications made by the insured. 
 
 Fidelity Mut. Life Assn. vs. Harris, June, 1900, 94 Texas 26. 
 
 Contracts, Situs of. Where Made. 
 
 Contracts of insurance on applications made in one State and 
 forwarded for acceptance to the domicile of the society in another.
 
 THE STATE OF TEXAS 925 
 
 are ordinarily treated as made at such domicile, because the act of 
 the insurer in signifying its acceptance there completes the contract. 
 
 Fidelity Mut. Life Assn. vs. Harris, June. 1900, 94 Texas 25. 
 
 Fraternal Societies May Hold Corporate Meetings Outside State of 
 Charter. 
 
 An incorporated society liaving no stoekhoUlers hut eomitosed 
 of members living in various States, in which it was authorized to 
 organize subordinate lodges, is not subject to the limitations im- 
 posed on ordinary corporations that corporate acts must be per- 
 formed only in the State where it was created. Its authorized legis- 
 lative body can exercise the power given it to change the constitu- 
 tion and laws of the society at a meeting regularly called but sitting 
 in a State other than that in which it was created. 
 
 Sovereign Camp, Woodmen of the World vs. Fraley, Dec, 1900, 94 
 Texas 200. 
 
 After-enacted Laws Strictly Construed. 
 
 An amended constitution providing that a clause of avoidance 
 in case the member should die by his own hand or act, sane or in- 
 sane, shall be made a part of every beneficiary certificate, and shall 
 be binding on both member and order, was a command to its officers 
 to embody such condition in the certificates ; it was not a general 
 provision declaring all certificates avoided in case of suicide. 
 
 Sovereign Camp, Woodmen of the World vs. Fraley, Dec, 1900, 94 
 Texas 200. 
 
 Fund Exempt From Seizure for Debts. 
 
 The amount due under a fraternal society certificate to the bene- 
 ficiary of the member is exempt from garnishment for the debt of 
 such beneficiary, under the act of May 12, 1899, regulating fraternal 
 societies. 
 
 Supreme Lodge, United Benev. Assn. vs. Johnson, May, 1904. 98 Texas 
 1.
 
 926 FRATERNAL SOCIETY LAW 
 
 Fraternal Exemption Statutes Constitutional. 
 
 The law regulating fraternal societies passed by the legislature 
 in 1899, is not unconstitutional as denying the equal i)rotection of 
 the law by reason of the exemjition in favor of certain organiza- 
 tions named therein from the operation of said section. 
 
 Supreme Lodge, United Benev. Assn. vs. Johnson, May, 1904, 98 Texas 
 1. 
 
 Contracts, What State Laws Imported Into. 
 
 The rule that a contract of insurance should be regarded as madj 
 in the State where it is executed and made for delivery to the mem- 
 ber in another State, and should be governed by the law in the State 
 of its execution, does not import into the contract the laws of sucli 
 State which by their terms apply only to contracts to be performed 
 in that State. ■ 
 
 Met. Life Ins. Co. vs. Bradley, Nov., 1904, 98 Tex. 230. 
 
 Evidence — Coroner's Verdict Not Admissible. 
 
 In an action on a benefit certificate upon the issue whether the 
 member died by suicide — an excepted risk — or by accident, the ver- 
 dict of the coroner's jury finding that death was from suicide was 
 not admissible in evidence. 
 
 Boehme vs. Sovereign Camp, Woodmen of the World, Jan., 1905, 98 
 Texas 376. 
 
 Assignment of Certificate Valid as Between Assignor and Assignee. 
 
 Where the beneficiary witli the consent of the member pledged the 
 benefit certificate to a third party to secure assessments thereon ad- 
 vanced by said pledgee, neither the member nor the beneficiary 
 could recover the certificate from such pledgee, or from an assignee 
 of his rights, without repayment of the assessments advanced by 
 them on the faith of such pledge, though it was forbidden by the 
 laws of the society issuing the certificate. 
 
 Coleman vs. Anderson, April, 1905, 98 Texas 570.
 
 THE STATE OF TEXAS 927 
 
 Certificate — Assignment of Valid. 
 
 The member with the conseut of his IxMieficiary may assign a 
 benefit certificate to a third person, notwitlistanding that siicli as- 
 signment is forbidden by the laws of the society. 
 
 Coleman vs. Anderson, April. 1905, 98 Texas .570. 
 
 Beneficiary, When Heir Takes Benefit. 
 
 A benefit payable on the death of the member to a named bene- 
 ficiary, and providing that any change of beneficiary should be made 
 by surrender and cancellation of the certificate and the issuance of 
 a new one, did not become payable to the heir of the beneficiary on 
 the death of both insured and beneficiary, unless the latter survived 
 the former. 
 
 Screwmen's Benev. Assn. vs. Whitridge, May, 1902, 95 Texas 539. 
 
 Death in Common Disaster. 
 
 In order that the heir of the beneficiary might recover where both 
 member and beneficiary, husband and wife, perished in the Gal- 
 veston Hood, it was necessary to shoAv that the former died first. 
 
 Screwmen's Benev. Assn. vs. Whitridge, May, 1902, 95 Texas 539. 
 
 Fraternal Society, What is? 
 
 For the facts which are held sufficient to constitute a fraternal 
 beneficiary society, see 
 
 Supreme Council, Am. Legion ot Honor vs. Story, Jan., 1904, 97 
 Texas 264. 
 
 Suspended Lodges, Members of Not Entitled to Benefits. 
 
 Members of a subordinate lodge, which has been suspended for 
 failure to pay an as.sessment in accordance with the by-laws, are 
 not entitled to participate in death benefits during such suspension.
 
 928 FRATERNAL SOCIETY LAW 
 
 where the law visits such penalty upon the members of lodges in 
 default. 
 
 Supreme Lodge. National Reserve Assn. vs. Turner, June, 1898, 19 
 Tex. Civ. App. 346. 
 
 Reinstatement, a Contract Right. 
 
 A member of a society under whose laws suspended members are 
 entitled to reinstatement if living and iu good health, is, as a matter 
 of contract, entitled to such reinstatement if living and in good 
 health when the application is made. 
 
 Supreme Lodge, National Reserve Assn. vs. Turner, June, 1898, 19 
 Tex. Civ. App. 346. 
 
 Foreign Society, Suit Against and Venue of. 
 
 A foreign society doing business in this State may be sued in its 
 courts, though no permit to do business has been obtained, and the 
 venue is properly laid iu any count}' iu which it does business. 
 
 Home Forum vs. Jones, Dec, 1S9S, 20 Tex. Civ. App. 68. 
 
 Conflicting Laws, How Construed. 
 
 Where two sections of the law of a society are in conflict, the one 
 most favorable to the member and his beneficiary will be accepted 
 and the other disregarded. 
 
 Supreme Lodge, National Reserve Assn. vs. Mondrowskl, Jan., 1899, 
 20 Tex. Civ. App. 322. 
 
 Warranty in Application, Waivers of. 
 
 False answers in respects to habits made in an application for 
 membership are not waived because the officers of the local camp 
 which admitted the applicant knew the truth with reference to 
 such habits, and that the applicant had taken the liquor cure, but
 
 THE STATE OF TEXAS 929 
 
 did not know the contents of liis application wherein he denied such 
 habits and the fact of his having taken the cure. 
 
 Brown vs. Sovereign Camp. Woodmen of the World, Jan., 1899, 20 
 Tex. Civ. App. 373. 
 
 After-enacted Laws Valid. 
 
 In his application for membership the applicant agreed to conform 
 to the society's existing laws, rules and usages, and to such as 
 might thereafter be adopted. The laws were thereafter amended 
 so as to decrease the amount of the certificate and also of the dues, 
 with the proviso that members admitted prior to a certain date, to 
 which class the insured belonged, might by a written declaration of 
 such allegation remain under the old plan. The insured failed to 
 make such declaration. Held, That he was bound by the change and 
 that his beneficiary had no vested right in the certificate that could 
 not be affected by such change in the laws. 
 
 Duer vs. Supreme Council, Order of Chosen Friends, June, 1899, 21 
 Tex. Civ. App. 493. 
 
 Beneficiaries, Relatives, Who Are. 
 
 Where the laws of the society permitted insurance only in favor 
 of relatives or persons dependent on the member, such benefit could 
 be extended to the members of a family in no way related to the 
 member, but with whom he had lived on terms of intimacy and 
 affection, receiving from them board and attention in sickness, and 
 contributing money, supplies and gifts to them, though before his 
 death he had removed to a distant State from which he occasionally 
 sent them assistance in money. 
 
 Grand Lodge, A. O. U. W. vs. Bollman, Nov., 1899, 22 Tex. Civ. App. 
 106. 
 
 Beneficiaries May be Named by Will. 
 
 A will disposing of a benefit certificate which formed no part of 
 its holder's estate and was not the subject of a bequest, may eon- 
 59
 
 I 
 
 930 FRATERNAL SOCIETY LAW 
 
 stitute a valid written designation of the beneficiaries in compliance 
 with the requirements of the society. 
 
 Grand Lodge, A. O. U. W. vs. Bollman, Nov., 1899, 22 Tex. Civ. App. 
 106. 
 
 Proofs of Death, When Not Required From Beneficiary. 
 
 The beneficiary in a certificate is relieved of making proof of 
 death where the by-laws of the society require the subordinate lodge 
 to ascertain the cause and circumstances of the death and report 
 them to the Supreme Secretary. 
 
 Supreme Council, American Legion of Honor vs. Landers, May, 1900, 
 23 Tex. Civ. App. 625. 
 
 Beneficiaries Lawfully Named Not Ousted by After-enacted Laws. 
 
 A member of a society had named his creditor as beneficiary of 
 his life insurance, agreeing to comply with all the laws then in force 
 or thereafter to be enacted. A subsequent amendment of the con- 
 stitution of the society provided that the beneficiary named in a 
 certificate shall be confined to one or more of the family of the 
 member, or some person related to him by blood, or who should be 
 dependent upon him. Held, That such an amendment Avas not by 
 its terms retroactive in effect and did not prevent recovery by the 
 creditor as beneficiary on the death of the member. 
 
 Grand Lodge, A. O. U. "W. vs. Stumpf, Oct., 1900, 24 Tex. Civ. App. 
 309. 
 
 Application, Statements in. Respecting Habits. 
 
 The .statement by the applicant in his medical examination that he 
 did not use and had never used opium or other narcotics, is to be 
 construed as having reference to a use that amounted to a habit or 
 custom. 
 
 National Fraternity vs. Karnes, Jan., 1901, 24 Tex. Civ. App. 607.
 
 THE STATE OF TEXAS 931 
 
 Agency of Organizer, to What Extent. 
 
 "Where a lodge is organized by one claiming to be an agent of the 
 society, who is equipped with its blanks and literature, and the 
 society adopts the work of such organizer, it will be estopped 
 througli information which the organizer at the time possessed as to 
 the 7)hysical condition and habits of those whom he has received for 
 membership in the lodge. 
 
 National Fraternity vs. Karnes, Jan., 1901, 24 Tex. Civ. App. 607. 
 
 Medical Examiner's Knowledge Imputed to Society. 
 
 The medical examiner of a society who has knowledge at the time 
 of making an examination of certain facts with respect to the con- 
 dition of health of the applicant, or of information falsely stated by 
 the applicant, is regarded as the agent of the society, and his knowl- 
 edge is to be imputed to the society unless such examiner colluded 
 with th'e applicant to defraud the society. 
 
 National Fraternity vs. Karnes, Jan., 1901, 24 Tex. Civ. App. 607. 
 
 Beneficiary, Death Before Member. 
 
 A certificate was issued to a member payable at his death to his 
 mother. The member afterwards married and died after the death 
 of his mother without having designated any other beneficiary. The 
 constitution provided that at the death of a beneficiary member, the 
 sum specified in the certificate should be paid to the person named 
 therein who should lie his wife, children, adopted children, parents, 
 brothers, sisters, or other relatives; and in case the certificate was 
 payable to one of such relatives who should at the time of the death 
 of the member also be deceased, and no designation of change had 
 been made by the member in writing upon his certificate during 
 life, it should be paid to the next living relative in the order named 
 in the constitution. Held, That the certificate was payable to the 
 member's wife to the exclusion of his brothers. 
 
 Mattison vs. Sovereign Camp, Woodmen of the World, January, 1901, 
 25 Tex. Civ. App. 214.
 
 932 FRATERNAL SOCIETY LAW 
 
 Forfeiture — Right of Must be Exercised Strictly. 
 
 The entry of a fine against a member by the secretary of a society 
 without notice will not affect the member's financial standing so 
 as to work a forfeiture of his benefit certificate by placing him 
 in arrears, where neither the constitution nor the by-laws clothed 
 the officer with such power. 
 
 Screwmen's Benev. Assn. vs. O'Donahoe, Feb. 1901, 25 Tex. Civ. App. 
 254. 
 
 Disability Benefits, Right to. 
 
 For the facts in a case brought to recover disability benefits, see 
 
 Supreme Tent, Knights of the Maccabees vs. Cox, Feb., 1901, 25 Tex. 
 Civ. App. 366. 
 
 Installment Certificate, Action Lies Only on Default of Payment of 
 Each Installment. 
 
 Where under a benefit certificate sued on, plaintiff was entitled to 
 receive annually one-tenth of the amount of the certificate, he could 
 recover only the amount of the installment due at the time of the 
 trial, and a judgment for the entire amount and providing that 
 execution might issue annually thereafter for the remaining iu.stall- 
 ments, was error. 
 
 Supreme Tent, Knights of the Maccabees vs. Cox, Feb., 1901, 25 Tex. 
 Civ. App. 366. 
 
 Beneficiary, Who May Be. 
 
 The constitution of the society provided for the payment of a 
 death benefit fund to the families, heirs, widows, orphans and de- 
 pendents of its deceased members, and F. who was a member and a 
 bachelor, designated his brother as the beneficiary in the certificate 
 issued to himself. Afterwards he assigned the certificate to W, wlm 
 was not related to him nor dependent upon him, no consideration 
 being received for such transfer. F continued to pay the member-
 
 THE STATE OE TEXAS 933 
 
 sliip (lues up to the time of his deatli. TTcld, that the assignment 
 was void, as W could not be a iKMicficiary, and tliat the brother 
 named in the certificate was entitled to the fund as against other 
 brothers who were with him Ihc only heirs of the deceased. 
 
 Williams and Gates vs. Fletcher, April, 1901, 26 Tex. Civ. App. 85. 
 
 Warranty and Misstatements. 
 
 In an application for a certificate the applicant was asked whether 
 he had ever been successfully vaccinated, and he answered no. He 
 was also asked to state whether, if he had not been vaccinated 
 and his death should result from smallpox, he would waive all claims 
 under the certificate, and he answered yes. The application also 
 stated that "for the purposes of this application I declare and war- 
 rant the foregoing answers and statements to be correct." The 
 certificate provided that it should be null and void and of no effect 
 if any of the statements or declarations in the application should 
 be found in any respect untrue. The applicant had in fact been 
 successfully vaccinated, and he died of smallpox after the issuance 
 of the certificate. Held, that the statement was not a warranty, and 
 not being material to the risk did not avoid the contract. 
 
 Sovereign Camp, "Woodmen of the World vs. Gray, June, 1901, 26 
 Tex. Civ. App. 457. 
 
 Reinstatement, Representations in Application for. 
 
 Declarations in the renewal contract that the insured had not any 
 injury, sickness or ailment of any kind, and that he had not con- 
 sulted with or been prescribed for by any physician, or received any 
 medical treatment since the date of the original application, even 
 if they were mere representations were material, and their falsity 
 vitiated the renewal contract. 
 
 Ash vs. Fidelity Mut. Life Assn., June, 1901, 26 Tex. Civ. App. 501. 
 
 Warranties Must be Literally Kept. 
 
 "Where it clearly appears from the terms of the contract that the
 
 934 FRATERNAL SOCIETY LAW 
 
 statements of tlie insured are to be treated as warranties, then, if 
 false, the contract becomes non-enforcible; and whether such state- 
 ments were made in good faith or are material to the risk is of no 
 consequence; but where there is language in the contract which 
 will warrant the inference that a forfeiture will not be insisted 
 on where the statement though false is not material to the risk, 
 such statement will be construed as representations and will not 
 forfeit the contract unless material to the risk. 
 
 Delaware Ins. Co. vs. Harris, June, 1901, 26 Tex. Civ. App. 537. 
 
 Death in Common Disaster, Rule as to Survivorship. 
 
 Under the rules of the common law, which obtain in Texas there 
 is no presumption of survivorship or of simultaneous death in the 
 case of persons who perish in a common disaster. The burden of 
 proof in an action for the proceeds of a contract was held to be on 
 the legal representatives of the beneficiary to show that the bene- 
 ficiary survived the insured, in a contest between the representatives 
 of the beneficiary and the representatives of the member. 
 
 Hildenbrandt vs. Ames, Dec, 1901, 27 Tex. Civ. App. 377. 
 
 Conditions Precedent to Liability, 
 
 A condition in a contract avoiding it if the insured was not in 
 good health when it was delivered, did not make the contract void 
 for a trivial illness not affecting the risk, though it shortlj' developed 
 into a disease causing death. 
 
 Woodmen of the World vs. Locklin, March, 1902, 28 Tex. Civ. App. 
 486. 
 
 Statute of Limitations, When Begin to Run, 
 
 Where a member was wrongfully expelled, limitations began to 
 run from the day of expulsion against his action to recover assess- 
 ments paid by him. 
 
 Supreme Council, Cath. Knights of America vs. Gambati, May, 1902, 
 29 Tex. Civ. App. 80. 
 
 i
 
 THE STATE OF TEXAS 935 
 
 Expulsion — Member May Lose Rights Though Same Illegal. 
 
 Where the society is composed of a supreme council and local 
 lodges, and the plaintiff was expelled by a local lodge without trial 
 or notice as required by the laws of the society, and although he 
 was advised of the illegality of the action and his right of appeal, 
 he made no appeal to the Supreme Council, he was not entitled to 
 maintain an action to recover the j)remiums that he had paid. 
 
 Supreme Council, Cath. Knights of America vs. Gambati, May, 1902, 
 29 Tex. Civ. App. SO. 
 
 Death in Common Disaster. 
 
 In a case of parties perishing together in a common disaster, to 
 the particulars of which there is no evidence, there is not at common 
 law, which obtains here, as there is in the civil law, any presump- 
 tion of survivorship based upon the circumstances of age and sex. 
 
 Males vs. Sovereign Camp, 'Woodmen of the World, Oct., 1902, 30 
 Tex. Civ. App. 184. 
 
 Beneficiary — Has No Vested Interests. 
 
 Where a fraternal society reserves the right to amend its laws, 
 and the beneficiary named in a certificate may be changed at the 
 will of the member, the beneficiary has no vested interest in the 
 certificate as in the case of an ordinary life insurance policy. 
 
 Males vs. Sovereign Camp, Woodmen of the World, Oct., 1902, 30 
 Tex. Civ. App. 184. 
 
 Beneficiaries, Who May Be — Death in Common Disaster — Rule of 
 Survivorship. 
 
 Where a benefit certificate is issued by a society whose object 
 was to provide a fund for the benefit of a particular class of persons, 
 namely, the wife, children, parents, or other blood relatives, and 
 made payable to the wife of the member, a certificate issued him 
 which provided that in case of the death of the beneficiary before
 
 i; 
 
 93(J FRATERNAL SOCIETY LAW 
 
 that of the member, the fund should, in the absence of a new desig- 
 nation, be paid to his relatives in the order just stated, the parents 
 are entitled to the fund as against the legal representatives of the 
 wife, where the member, his wife and their children all perished to- 
 gether in the Galveston flood, there being no evidence as to any 
 one of them surviving the others; the burden of proof being on the 
 representatives of the wife to show that she survived the husband. 
 
 Males vs. Sovereign Camp, Woodmen of the World, Oct., 1902, 30 
 Tex. Civ. App. 184. 
 
 Interpleader — Attorney's Fees Not Allowable Out of Fund. 
 
 Where the suit was on a benefit certificate by parties claiming as 
 beneficiaries, and the insurer impleaded other parties asserting a 
 claim, there is no authority for the court to allow attorney's fees to 
 the impleading party. 
 
 Males vs. Sovereign Camp, Woodmen of the World, Oct., 1902, 30 
 Tex. Civ. App. 184. 
 
 Warranties — Immaterial Answers No Defense Under. 
 
 Where a contract made the application a part thereof, and made 
 the answers therein warranties, false statements in the answers to 
 the effect that the applicant had not consulted a physician in ten 
 years, and that she had never had a doctor except in childbirth, were 
 warranties, and whether material or not their falsity forfeited the 
 contract. 
 
 Flippen vs. State Life Ins. Co., November, 1902, 30 Tex. Civ. App. 362. 
 
 Forfeiture for Failure to Make Payments. 
 
 A certificate conditioned that the member should have paid all 
 the assessments called to the benefit fund, and complied with the 
 requirements of the by-laws, which laws authorized his suspension 
 for failure to pay all assessments, was held to be voided by his 
 failure to pay an assessment duly levied for other purposes than 
 the benefit fund. Both the conditions prescribed by the certificate 
 
 ii
 
 THE STATE OF TEXAS 937 
 
 and those provided by the by-laws were binding, and the failure 
 to comply with the latter authorized the member's suspension. 
 
 Supreme Council, Am. Legion of Honor vs. Landers, January, 1903, 
 
 31 Tex. Civ. App. 338. 
 
 Beneficiary — Right to Change Complete. 
 
 An unincorporated society had no provision in its laws for mak- 
 ing a change in the beneficiary, but it had been the custom since its 
 organization to permit a member to make change by endorsement 
 on the certificate. A wife taking insurance for the benefit of her 
 husband, after divorce changed the benefit to her brothers and sis- 
 ters without the consent of the original beneficiary. Held, That 
 such change was valid and that the divorced husband could not 
 recover the benefit on the member's death. 
 
 Schmitt vs. New Braunsfelser Verein, March, 1903, 32 Texas Civ. 
 App. 11. 
 
 Initiation May be Waived by Society. 
 
 Where the deceased never appeared before the local lodge for 
 initiation, and was never initiated into the society, but the society, 
 with full knowledge of this fact, received his assessments and dues 
 and delivered to him the benefit certificate, it could not question his 
 membership on that ground, as the initiation had been waived. 
 
 Supreme Ruling, Fraternal Mystic Circle vs. Crawford, June, 1903, 
 
 32 Tex, Civ. App. 603. 
 
 Warranty of Answers Liberally Construed. 
 
 The answer of an applicant that he had never had any serious 
 illness should be considered as a mere expression of opinion as to 
 the character of the sickness, and should not avoid the policy even 
 though untrue and made a warranty, if the applicant did not know 
 its falsity. 
 
 Supreme Ruling, Fraternal Mystic Circle vs. Crawford. June, 1903, 
 32 Tex. Civ. App. 603.
 
 938 FRATERNAL SOCIETY LAW 
 
 Amended Laws Required to be Published. 
 
 The by-laws of a society provided that the printing in the official 
 organ of any notices required to be given the members, when such 
 notices are signed and attested by the proper officers, should be 
 deemed legal and sufficient service of such notices, and then further 
 required the Supreme Record Keeper to compile and arrange for 
 publication, subject to the approval of the Board of Trustees, all 
 amendments to the laws adopted by the supreme legislative body. 
 Held, 'That such provisions of the by-laws were required after adop- 
 tion to be published in the official organ, and until so published were 
 of no force or effect. 
 
 Eversberg vs. Supreme Tent, Knights of the Maccabees, November, 
 1903, 33 Tex. Civ. App. 549. 
 
 After-enacted By-laws Valid — Effect of Agreement to be Bound by 
 Such Laws. 
 
 Recitals in an application whereby the applicant is to be bound 
 by the laws of the order in force at the time or that may thereafter 
 be adopted, is a recognition of the right of the society to change 
 its by-laws, and the consent in advance by the applicant to be 
 bound b.v any changes to be made, and such an agreement is valid 
 and binding upon the applicant so admitted to membership and 
 upon the beneficiaries i;nder his certificate. 
 
 Eversberg vs. Supreme Tent, Knights of the Maccabees, November, 
 1903, 33 Tex. Civ. App. 549. 
 
 Suicide Law Valid. 
 
 One of the by-laws of a society provided that if a member died 
 by self-destruction, whether sane or insane, the certificate entitling 
 him to participate in the insurance fund, together with all claims 
 by reason of membership, should be ni;ll and void. Held, Tluit a 
 member who committed suicide thereby forfeited his claim against 
 the insurance fund. 
 
 United Moderns vs. Colligan, .Jan., 1904. 34 Tex. Civ. App. 173.
 
 THE STATE OF TEXAS 939 
 
 Cancellation of Membership — Right of May Exist. 
 
 The constitution of a society giving its directors authority to 
 cancel a membership when deemed advisable by them, entered into 
 a contract of insurance with the member, and he could not compel 
 reinstatement by mandamus when on account of increased risk 
 caused by the loss of an eye, his meml)ership had l)eeu so cancelled. 
 
 Travelers Protectiva Assn. vs. Dewey, Feb., 19U4, 34 Tex. Civ. App. 
 419. 
 
 Contract, When Renounced, Other Party May at Once Sue. 
 
 Where one party to a fraternal society contract announces its 
 intention not to perform it, the other may treat the contract as at 
 an end and recover the amounts paid under it. 
 
 Supreme Council. Am. Legion of Honor vs. Batte, Feb., 1904, 34 Tex. 
 Civ. App. 456. 
 
 Repudiation of Contract Gives Right of Suit Under Same. 
 
 A by-law reducing the amount payable at death on a certificate, 
 with a proviso for paying the sum originally named so long as the 
 emergency fund of the order has not been exhausted, was a repudia- 
 tion of its contract which would authorize suit by the holder of a 
 benefit certificate to recover back the sums paid, though there were 
 still remaining in the emergency fund a large sum of money. 
 
 Supreme Council, Am. Legion of Honor vs. Batte, Feb., 1904, 34 Tex. 
 Civ. App. 456. 
 
 Election, Not Made When Payments Are Made Under Protest. 
 
 The fact tliat the holder of a benefit certificate continued paying 
 assessments after the enactment of a by-law reducing the amount 
 to be paid on death, was not an election to treat the contract in such 
 altered form as still in force, where the payments were made under 
 protest and in hope of the repeal of the by-law. 
 
 Supreme Council, Am. Legion of Honor vs. Batte, Feb., 1904. 34 Tex. 
 Civ. App. 456.
 
 940 FRATERNAL SOCIETY LAW 
 
 Summons, Service on Local Officer Good. 
 
 Service of citation in an action against a foreign fraternal society 
 domiciled in Kansas, made upon the president of a local lodge of 
 the society in the county in Texas where the suit was brought was 
 a sufficient service of summons upon the defendant under the statute 
 authorizing j^roeess against a foreign corporation to be served upon 
 any local agent thereof, and the provision of statute allowing service 
 of summons upon the State Insurance Commissioner is held to be 
 merely cumulative and not to render service had under the general 
 statutes as to foreign corporations ineffectual. 
 
 Bankers Union vs. Nabors, May. 1904, 36 Tex. Civ. App. 38. 
 
 Suicide — Coroner's Verdict Not Admissible in Evidence. 
 
 In an action upon a death benefit certificate containing a pro- 
 vision voiding the certificate in case of suicide within three years 
 after its issuance, it was reversible error to admit in evidence the 
 record of the inquest held over the deceased in which the coroner 
 found that death was caused by suicide — the findings of a coroner's 
 inquest not being conclusive of the facts found. 
 
 Boelime vs. Sovereign Camp, Woodmen of the World, June, 1904, 36 
 Tex. Civ. App. 501. 
 
 Dissolution and Reorganization of Lodges Permissible. 
 
 No cause of action is shown against the Grand Lodge by per- 
 mitting a subordinate lodge to disorganize and to reorganize itself 
 in accordance with the laws of the society, though this is done by 
 the members of such subordinate lodge for the purpose of getting 
 rid of a member distasteful to them, and whom they left out in re- 
 organizing. 
 
 Grand Lodge, Sons of Hermann vs. Schuetze, Oct., 1904, 36 Tex. Civ. 
 App. 539. 
 
 Application — Questions in as to Habits Construed. 
 
 A question to an applicant, "To what extent do you use intoxi-
 
 THE STATE OF TEXAS 941 
 
 eating liquors" and "Have ymi always been temperate in their use," 
 were for the purpose of ascertaining the extent to which the ap- 
 plicant used them, and not whether he used them at all. 
 
 Endowment Rank, Supreme Lodge Knights of Pythias vs. Townsend. 
 Oct., 1904, 36 Tex. Civ. App. 651. 
 
 Societies May Incorporate in Several States — Consolidation of — 
 When Unlawful. 
 
 Where corporations are created by different States, they can only 
 consolidate under concurrent legislation by each State, in which 
 event there is a separate and distinct corporation in each State, as" 
 the laws of each State have no extra-territorial effect. In the ab- 
 sence of proof to the contrary, it will be presumed that a foreign 
 fraternal society doing business in Texas was created for the pur- 
 poses described in Section 1 of the act of 1899, and hence a con- 
 tract to divert its benefit fund to the payment of certificates issued 
 by another corporation with which it had no power to consolidate, 
 is ultra vires and void. 
 
 Whaley vs. Bankers Union, Texas Court of Civil Appeals, May, 1905, 
 88 S. W. 259. 
 
 Conditions Precedent to Liability. 
 
 When the by-laws of a society provide that the first assessment 
 and dues must be paid by the applicant and forwarded, together 
 with the acceptance of the certificate, to the Supreme Clerk imme- 
 diately upon the delivery of the certificate, it is not necessary to the 
 validity of the certificate that the member should execute a written 
 acceptance. 
 
 Sovereign Camp, Woodmen of the World vs. Brown, Tex. Ct. Civ. 
 App., May, 1905, 88 S. W. 372. 
 
 Scaling Certificates Void. 
 
 A by-law scaling all $5,000.00 certificates to $2,000.00 is void, and
 
 942 FRATERNAL SOCIETY LAW 
 
 members may recover premiums paid on $5,000.00 certificates after 
 such action is taken b.v the society. 
 
 Supreme Council. Am, Legion of Honor vs. Lyon, Tex. Ct. Civil App., 
 May, 1905, S8 S. W. 435. 
 
 Beneficiaries — Illegitimate Children May be Named. 
 
 When the constitution of a society provides that each member 
 shall designate certain beneficiaries who shall be members of his 
 family or some one related to him by blood or dependent on him, 
 it is held that a member may designate an illegitimate daughter, 
 she being related to him by blood and being dependent upon him. 
 
 Stahl vs. Grand Lodge, A. O. U. W., Tex. Ct. Civ. App., Nov., 1906, 
 98 S. W. 643. 
 
 Beneficiaries — Creditors Cannot be, But They May Secure Return 
 of Assessments Paid by Them to Keep Contract Alive. 
 
 A member being unable to pay his dues and assessments, allowed 
 his certificate to lapse, but subsequently an agreement was entered 
 into between him and the beneficiaries on the one part and a 
 stranger, by which the latter agreed to pay the money required to 
 reinstate the insured and to make subsequent payments sufficient 
 to keep the certificate in force during the life of the member, for 
 which he was to be reimbur.sed out of the proceeds of the certificate. 
 Before the death of the member the beneficiaries died, and no new 
 designation was made. Thereafter the member attempted by his will 
 to make a change in favor of the stranger, and it was held that the 
 fund became payable to the member's children under the provisions 
 of the laws of the society, and could not be subjected to the plain- 
 tifi^'s claim for reimbursement imder his contract with the member. 
 
 Searcy vs. Kelly, Tex. Ct. Civ. App., Dec, 1906, 98 S. W. 1080. 
 
 (The above case went to the Supreme Court and was there de- 
 cided, May, 1907, 102 S. W. 100, and that court reversed the Court 
 of Civil Appeals and held that the children of the member, having
 
 THE STATE OF TEXAS 943 
 
 received the benefit of the contract made with the original bene- 
 ficiaries, for the preservation of the certificate through the payment 
 of the installments which fell due at different times, the funds 
 which they thereby received should be subjected to the plaintiff's 
 claim for reimbursement.) 
 
 Conditions Precedent. 
 
 A member made application to join the Woodmen, complied with 
 all the requirements, and a certificate was issued, but through mis- 
 take was sent to the wrong local camp, and before the mistake was 
 corrected and the certificate sent to the right camp for delivery, the 
 member was killed. He had offered to pay the first assessment, 
 which was due when the certificate was delivered. The application 
 and the laws provided that no liability for benefit should accrue 
 until the certificate was personally delivered to the member and 
 he had paid one assessment. Held, That the beneficiary named in 
 the certificate could recover under the same. 
 
 Sovereign Camp, Woodmen of the World vs. Dees, Tex. Ct. Civ. App., 
 Feb., 1907, 100 S. W. 366. 
 
 Total Disability, What is. 
 
 The by-laws of a society provided that whenever any member 
 became permanently and totally disabled from pursuing the or- 
 dinary vocations of life, he should be entitled to receive one-half 
 of his certificate. One form of permanent total disability was de- 
 clared to be insanity, so adjudged, by the courts. In an action it 
 was held that in order to recover on the certificate on the ground 
 of insanity, it must be shown to be such a degree of insanity as 
 would authorize an adjudication of the insured's mental status by 
 the courts. 
 
 Knipp vs. United Benev. Assn., Tex. Ct. Civ. App., Feb., 1907, 101 
 S. W. 273. 
 
 Application, Misstatements in. 
 
 A misstatement in an application concerning proper medical at-
 
 944 FRATERNAL SOCIETY LAW 
 
 tendance and treatment of the applicant was not material to the 
 risk as a matter of law. hut its materiality depended on the sur- 
 rounding circumstances. For the facts in such case, see 
 
 Modern Order of Praetorians vs. HoUmig, Tex. Civ. App., March, 
 1907, 103 S. W. 474. 
 
 Fraternal Societies Exempt From General Insurance Laws. 
 
 The provisions of the act of 1903 declaring that any provision in 
 an insurance policy contracted for in Texas, that the answers or 
 statements in the application, if false, shall render the policy void 
 or voided, shall not constitute a defense unless shown to be ma- 
 terial to the risk, is held applicable to fraternal societies as well as 
 corporations conducting an ordinary life insurance business. 
 
 Modern Order of Praetorians vs. Hollmig, Tex. Civ. App., March, 
 1907, 103 S. W. 474. 
 
 (This case was heard on jietition for rehearing in June, 1907, 
 reported in 103 S. W. 476, and upon this point the court reversed 
 itself, holding that said section of the acts of 1903, (did not apply 
 to fraternal beneficiary societies, inasmuch as they were by the acts 
 of 1899 not subject to the insurance law of the State.) 
 
 Agency of Medical Examiner. 
 
 In the absence of a limitation on the authority of the medical ex- 
 aminer expressed in the contract of insurance, he will be held to 
 be the agent of the society while performing the duties of his posi- 
 tion. 
 
 Modern Order of Praetorians vs. Hollmig, Tex. Civ. App., March, 
 1907. 103 S. W. 474. 
 
 Beneficiary — Who is of Monument Fund in Woodmen. 
 
 A benefit certificate for $1,000.00 on the life of the deceased, pay- 
 able to his wife, provided also that there should be paid $100.00 for 
 a inonument to be erected at the member's grave, but the society
 
 THE STATE OF TEXAS 945 
 
 did mil I'ctain the privilege of delivering the monument or perform- 
 ing any duties connected with the member's burial, and there was 
 no express provision as to whom the money should be paid. Held, 
 That it should be paid to the member's widow. 
 
 Woodmen of the World vs. Torrence, Tex. Civ. App., June, 1907, 103 
 S. W. 652. 
 
 Contract Provisions, When to be Construed Most Strictly in Favor 
 of Beneficiary. 
 
 The rule that an insurance contract must be construed most liber- 
 ally in favor of the beneficiaiy has no application where there is no 
 ambiguity or uncertainty in the language sought to be construed. 
 
 Continental Casualty Co. vs. Wade, Supreme Ct. Tex., Nov., 1907, 
 105 S. W. 35. 
 
 Assessments, Mailing Draft Not Payment. 
 
 On December 23 a draft covering dues and assessments payable 
 before the end of the month was mailed, in Louisiana, to one in 
 Texas who had been the local collector, but who had resigned on 
 December 12. It was held not to be payment to the society, and 
 neither the .society nor its collector having received payment, the 
 member was properly suspended where, under the laws of the so- 
 ciety, failure to make payment before the last day of the month 
 operated as a suspension of the member without notice. 
 
 Supreme Lodge of the Pathfinder vs. Johnson, Tex. Civ. App., June, 
 1907, 104 S. W. 508. 
 
 Beneficiary — Revoked and Illegal Designation — Rule in Such Cases. 
 
 The surrender of an original certificate to, and acceptance thereof 
 by, the Grand Lodge, and the issuance of another certificate naming 
 another beneficiary, revoked the original certificate and destroyed 
 the rights of the beneficiary named therein, thoiigh the designation 
 of the beneficiarj^ in the second certificate was illegal, and the benefit 
 60
 
 946 FRATERNAL SOCIETY LAW 
 
 was payable to those entitled to it imder the statute, in the order 
 of precedence named therein. 
 
 Grand Lodge, Colored Knights of Pythias vs. Mackey, Tex. Civ. App., 
 Oct., 1907, 104 S. W. 907. 
 
 Beneficiary, Society May Waive Provisions Respecting Change of. 
 
 When a member changed the beneficiary in accordance with the 
 instructions of the Grand Lodge through its officers, but not in ac- 
 cordance with the by-laws of the society, and the society acquiesced 
 in the cliange and paid the fund into court for it to determine 
 whether it should be paid to the original beneficiary or to the new 
 one, the original beneficiary could not raise the question of non- 
 compliance with the bj'-laws, and is was held that the new bene- 
 ficiary was entitled to the fund. 
 
 Coleman vs. Grand Lodge, Colored Knights of Pythias, Tex. Civ. 
 App., Oct., 1907, 104 S. W. 909.
 
 THE HTATE OF UTAH 947 
 
 THE 
 
 STATE OF UTAH. 
 
 CHAPTER 45. 
 
 The State of Utah lias 110 statute hiw applicable to Fraternal So- 
 cieties except Section 418, Chapter 5 of the laws relating to insurance 
 corporations, which reads viz. : 
 
 Chapter Not Applicable to Social, Etc., Organizations. 
 
 "See. 418. Nothing in this chapter shall be construed to apply 
 to any organization of a purely social, religious, or benevolent char- 
 acter, where no commissions are paid and no salaried officers or 
 agents employed ; or to any local association or society organized 
 under or subject to the control of a grand or supreme body, or to 
 any secret organizations having subordinate lodges or councils which 
 have been organized or may organize under the laws of this or any 
 other State or territory, and which may do business in this State; 
 or to commercial organizations, such as boards of trade or cham- 
 bers of commerce, organized under the provisions of the general in- 
 corporation laws for the promotion of general public interests and 
 having in connection therewith the incidental features of a mortuary 
 benefit fund which shall not be collected and distributed for pe- 
 cuniary profit to the corporation." 
 
 Sick Benefits, Right to Survives. 
 
 A cause of action in favor of a member to recover sick benefits
 
 948 FRATERNAL SOCIETY LAW 
 
 payable to him during his lifetime survives his death and may be 
 brought by his administrator. 
 
 Pearson vs. Anderburg, March, 1905, 28 Utah 495; 80 Pac. 307. 
 
 Funeral Benefits, Administrator May Recover. 
 
 An administrator may recover an allowance of funeral expenses 
 due on the death of a member, where same are provided for by the 
 laws of the society but are no{ declared payable to any particular 
 person. 
 
 Pearson vs. Anderburg, March, 1905, 28 Utah 495; 80 Pac. 307. 
 
 Voluntary Society, Suit Against. 
 
 A voluntary societ.y cannot be sued in its name as such, but can 
 be brought into court only in the name of its members, or if they 
 are too numerous, a few of them may be made defendants to repre- 
 sent the interests of all. 
 
 Pearson vs. Anderburg, March, 1905, 28 Utah 495; 80 Pac. 307. 
 
 Resort to Civil Courts, Right of. 
 
 The members of a voluntary societj' may restrict themselves as 
 to matters incidental to the operations of the society, and to reme- 
 dies before tribunals created by them, but such restrictions cannot 
 extend to the right to benefits due the members under contracts so 
 as to require them to exhaust the remedies provided by the tri- 
 bunals of the society as a condition precedent to bringing suit. 
 
 Pearson vs. Anderburg, March, 1905, 28 Utah 495; 80 Pac. 307. 
 
 Beneficiary, Change of Rules as to. 
 
 Where the contract provides for a change of beneficiary by sur- 
 render of the old certificate, an attempt to make a change without 
 following such provision is not excused by the failure of the member 
 to understand the laws of the society. 
 
 Sterling vs. Head Camp, Woodmen of the World, March, 1905, 28 
 Utah 505; 80 Pac. 375.
 
 THE STATE OF UTAH 949 
 
 Agency, Local Officials Cannot Waive Laws. 
 
 The provisions of tlu" laws to the effect tliat local lodge officials 
 shall not possess the express or implied authority t<i waive the terms 
 of contract, are binding on the members. 
 
 Sterling vs. Head Camp. Woodmen of the World, March, 1905, 28 
 Utah 505; 80 Pac. 375. 
 
 Conditions Precedent as to Delivery of Certificate. 
 
 Where the contract provides that no liability shall arise under 
 it until its delivery to and acceptance in writing by the member, 
 the issuance of a certificate which is not so delivered and accepted 
 is of no effect and creates no liability on the part of tlie society. 
 
 Sterling vs. Head Camp, Woodmen of the World, March, 1905, 28 
 Utah 505; 80 Pac. 375. 
 
 Beneficiaries, Right in Member to Change Absolute. 
 
 Where the contract provided for a change of beneficiary by the 
 surrender of the certificate and the issuance of a new one, the 
 motives or reasons which induced the member to attempt to change 
 the beneficiar.v hy permitting his membership to lapse as a prelimi- 
 nary to taking out a new certificate, instead of following the pro- 
 visions of the contract, were immaterial on the right of the con- 
 templated beneficiary to recover the amount of the certificate. 
 
 Sterling vs. Head Camp, Woodmen of the World, May, 1905, 28 Utah 
 526; 80 Pac. 1110. 
 
 Ambiguous Laws, How to be Construed. 
 
 The by-laws of a society when susceptible of two constructions 
 must receive that one which will more nearly carry out the objects 
 and purposes of the society and sustain the claim of the injured one. 
 
 Maynard vs. Locomotive Engineers' Mut. Life and Accident Assn., 
 Nov., 1897, 16 Utah 145.
 
 1 
 
 950 FRATERl^AL SOCIETY LAW 
 
 Proofs of Loss, Requirements for. 
 
 The provision in a contract requiring proofs of death to be fur- 
 nished within two months from the date of the member's death, in 
 default of which all claims under the contract shall be forfeited, 
 is a condition subsequent and is fulfilled by a submission of proofs 
 within a reasonable time after the death of the member. 
 
 Munz vs. The Standard Life and Accident Ins. Co., April, 1903, 26 
 Utah 69. 
 
 Agency of Local Lodge and Officials. 
 
 A subordinate lodge and its financial officer are agents of the 
 Grand Lodge and not of the member. 
 
 Johanson vs. Grand Lodge, A. O. U. W., Supreme Court of Utah, 
 July, 1906, 86 Pac. 494. 
 
 Assessments, Duty of Lodge to Pay When There Are Funds in Hand. 
 
 A member, on becoming impecunious and in ill health, applied to 
 his local lodge for relief, and was notified by it that it would make 
 a loan to him for four months' assessments; that such application 
 would carry his dues and assessments for four months, and that at 
 the expiration of that time he would have to make a further appli- 
 cation to the lodge. It was held that the subordinate lodge then 
 having money on hand applicable to the purpose, such loan con- 
 stituted an appropriation of so much funds of the subordinate lodge 
 as was necessary to pay such assessments, and that they were to be 
 regarded as paid, so far as the member's certificate was concerned. 
 
 Johanson vs. Grand Lodge, A. O. U. W., Supreme Court of Utah, 
 July, 1906, 86 Pac. 494. 
 
 Assessments — Agency of Local Lodge, Etc. 
 
 By the provisions of the laws of a society its subordinate lodges 
 were bound to see that the assessments were collected, and they 
 were given express power to suspend members for non-payment of
 
 THE STATE OF UTAH 951 
 
 assessments, and to reinstate them on pajanent of arrearages with- 
 out notice to or direction from the Grand Lodge. Through the ex- 
 ercise of its powers of suspension, the subordinate lodge was author- 
 ized to annul the insurance of any member, to revalidate same, to 
 determine the good standing of its members which was requisite to 
 the validity of the insurance, and was given other jiowers in respect 
 to members which directh^ affected their rights in and to the eon- 
 tract of insurance. It was held that such subordinate lodge was not 
 a mere collecting agent, but was authorized to waive the strict com- 
 pliance with the society's by-laws relating to payments of assess- 
 ments. 
 
 Johanson vs. Grand Lodge, A. O. U. W., Supreme Court of Utah, 
 July, 1906, 86 Pac. 494.
 
 1" 
 
 952 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF VERMONT. 
 
 CHAPTER 46. 
 
 Section 1. A fraternal beneficiary association is hereby declared 
 to be a corporation society, or voluntary association, formed or or- 
 ganized and carried on for the sole benefit of its members and their 
 beneficiaries, and not for profit, having a lodge system, with ritual- 
 istic form of work, and representative form of government, making 
 provisions for the payment of benefits in the case of death, sickness, 
 temporary or permanent physical disability, either as the result of 
 disease, accident, or old age, provided the period in life at which 
 payment of physical disability benefits on account of age commences 
 shall not be under the expectation of life according to the "Ameri- 
 can Experience Table," subject to their compliance with its consti- 
 tution and laws. The fund from which the payment of such benefits 
 shall be made, and the fund from which the expenses of such asso- 
 ciation shall be defrayed, shall be derived from assessments in dues 
 collected from its members. 
 
 Payment of death benefits shall be to the families, heirs, blood 
 relatives, affianced husband or affianced wife of, or to persons de- 
 pendent upon, the members. Such association shall be governed by 
 this act, and shall be subject to the provisions of the insurance laws 
 of this State consistent with the provisions of this act. 
 
 Section 2. All such associations coming within the description set 
 forth in Section 1 of this act, organized \;nder the laws of this or 
 any other State, province or territory, and now doing business in 
 this State, may continue such business, provided that they hereafter 
 comply with the provisions of this act and the insurance laws of this
 
 THE STATE OF VERMONT 953 
 
 State in regard to annual reports, and ajipnint the Secretary of State 
 their attorney for, and comply with the provisions of the general 
 law relating to service of in-ocess on foreign corporations. 
 
 Section 3. Such associations organized under the laws of any 
 other State, province or territory, and not now doing business in 
 this State, may, at the discretion of the Insurance Commissioners, 
 be admitted to do business within this State when it shall be shown 
 to the satisfaction of the Insurance Commissioners to be conducting 
 its business in accordance with the provisions of this act, and shall 
 have filed with the Insurance Commissioners a duly certified copy of 
 its charter and articles of association, and a copy of its constitution 
 and by-laws, certified to by its secretary or corresponding officer, 
 together with an appointment of the Secretary of State, as a person 
 upon whom process may be served, and a statement under oath of its 
 president and secretary, showing its financial condition and such 
 other information as the commissioners deem necessary, and pro- 
 vided that such association shall be shown by certificate to be au- 
 thorized to do business in the State, province or territory in which 
 it is incorporated or organized. 
 
 Section 4. If the Insurance Commissioners are satisfied with such 
 copies and statements as are furnished by any such association com- 
 ing within the description set forth in Section 1 of this act, organ- 
 ized under the laws of this or any other State, province or territory, 
 and that such association has complied with the provisions of this 
 act, they shall issue to such association a permit in writing, authori- 
 zing such association to do business within this State, for which cer- 
 tificate such association shall pay to said commissioners the fee of 
 five dollars. 
 
 Section 5. Fraternal beneficiary associations doing business in 
 this State shall annually, in accordance with Section 4202 of the Ver- 
 mont statutes, transmit a report to the Insurance Commissioners; 
 and shall, at any time upon demand of the Insurance Commissioners, 
 furnish under oath such information regarding the busine.ss and 
 condition of the association as the Insurance Commissioners shall 
 require. 
 
 Section 6. [As amended by No. 59, Acts of 1900.] Such associa- 
 tions shall not employ paid agents in soliciting or procuring mem-
 
 954 FRATERNAL SOCIETY LAW 
 
 bers, except in the preliminary organizing of subordinate bodies, but 
 associations now doing business in the State may employ members 
 to assist membei-s of weak and inactive local branches to increase 
 their membership, provided their compensation does not depend 
 upon, and is not affected by such increase, and is not in excess of 
 three doUars per day. Such agents and members shall require no 
 license. An,y person failing to comply with the provisions of this 
 act, or who shall solicit membership for, or in any way assist in pro- 
 curing membership in, or aid in the transaction of any business for 
 any fraternal beneficiary association not authorized to do business 
 in this State, shall be punished by a fine of not less than fifty or more 
 than two hundred dollars. 
 
 Section 7. Any per.son. officer, member or examining physician, 
 who shall knowingly or wilfully make any false or fraudulent state- 
 ments or representations, in or with reference to any application for 
 membership, or for the purpose of obtaining any money or benefit 
 in any association transacting business under this act, shall be guilty 
 of a misdemeanor, and upon conviction shall be punished by a fine 
 of not less than one hundred dollars nor more than five hundred 
 dollars, or imprisonment in the house of correction for not less than 
 thirty days nor more than one year, or both, in the discretion of the 
 court, and any person who shall wilfully make a false statement of 
 any material facts or things in a sworn statement as to the death 
 or disability of a certificate holder in any such association for the 
 purpose of procuring payment of a benefit named in the certificate 
 of such holder, and any person who shall wilfully make any false 
 statement in anj- verified report or declaration under oath required 
 or authorized by this act shall be guilty of a perjury, and shall be 
 proceeded against and punished as provided by the statutes of 
 this State in relation to the crime of perjury. 
 
 Section 8. Any such association refusing or neglecting to make 
 the reports or furnish the statements or the information provided 
 for in this act, shall be excluded from doing business within this 
 State. The Insurance Commissioners must within sixty days after 
 failure to make such report, or in ease any such association shall 
 exceed its powers, or shall conduct its business fraudulently or shall 
 fail to comply with any of the provisions of this act, apply to the
 
 THE STATE OF VERMONT 955 
 
 court of chancery for an injiinetioii a<;aiiisf, such association to 
 enjoin the same from carrying on any business. No association so 
 enjoined shall have authority to continue business until such report 
 shall be made, or overt act oi- violations eomj)lained of shall have 
 been corrected, nor until the costs of such action be paid })y it, pro- 
 vided the court shall find that such association was in default as 
 charged, whereupon the insurance commissioners shall in their dis- 
 cretion reinstate such association, and not until then shall such asso- 
 ciation be allowed to again do business in the State. 
 
 Any officer, agent or person acting for any association or subor- 
 dinate body thereof, within this State, while such association shall be 
 so enjoined or prohibited from doing business pursuant to this act, 
 shall be deemed guilty of a misdemeanor, and on conviction thereof 
 shall be punished b.y a fine not less than twenty-five dollars, nor 
 more than two hundred dollars, or by imprisonment in the house of 
 correction not less than thirty days nor more than one year, or by 
 both such fine and imprisonment in the discretion of the court. 
 
 Section 9. Every society or association to which this act is appli- 
 cable shall pay the following fees to the insurance commissioners : 
 For filing a certified copy of its charter or articles of association and 
 other papers as provided by this act, five dollars; for filing the 
 annual report as herein provided, five dollars; for filing anj' addi- 
 tional papers required by law, twenty-five cents. 
 
 Section 10. Nothing herein shall apply to or in any way interfere 
 with the orders known as Masons, Odd Fellows, Knights of Pythias 
 or similar ordei-s, or any association which limits its certificate hold- 
 ers to the employes of a firm or municipal or other corporation. 
 
 Section 1 of an act of the General Assembly approved Nov. 27, 
 1900, and now in force provides as follows:. 
 
 Section 1. No fraternal beneficiary association not already doing 
 business within this State prior to the passage of this act shall be 
 incorporated or given a permit or license to transact business within 
 this State, unless it shall first show that the mortuary assessment 
 rates, proyided for in whatever plan of business it has adopted, are 
 not lower than is indicated as necessary by the mortality table rec- 
 ommended by the National Fraternal Congress and known as the 
 "Fraternal Congress Mortalitv Table."
 
 956 FRATERNAL SOCIETY LAW 
 
 The following provisions of the general laws of the State of Ver- 
 mont seem also to apply to Fraternal Societies : 
 
 Section 1. In actions brought to recover on a fire, life, or accident 
 insurance policy, the general covints in assumpsit shall be a sufficient 
 declaration, and no other or different one shall be required. The 
 plea of non-assumpsit shall put in issue only the execution of the 
 policy and the amount of damages sustained thereunder. 
 
 Section 2. The plaintiff in such action shall file with the writ in 
 the office of the clerk of the coiirt to which the same is returnable, 
 a specification giving the number of the policy upon which such 
 suit is predicated, the date of the fire, death or accident as the case 
 may be, and the items of the policy involved in the claim, if the 
 policy contains more than one item. 
 
 Act approved Nov. 23, 1S96. 
 
 Section 4:165. No foreign insurance, express, shipping ear, tele- 
 graph or telephone company, or a foreign company under any other 
 name engaged in like business, whether said company is a corpora- 
 tion or co-partnership, shall do business in this State, until it has 
 filed with the secretary of state a written stipulation, containing 
 the name of the corporation and the place where chartered, or, if 
 a co-pai'tnership, the firm name and the names and residences of 
 the co-partners, and agreeing that legal process affecting such com- 
 pany, served on said secretary of state, shall have the same effect 
 as if served personally on said corporation or co-partners within 
 this State ; and such stipulation shall not be revoked or modified so 
 long as any resident of this State has a cause of action against the 
 stipulating company. 
 
 Section. 4166. Service of process according to the stipulation 
 shall be sufficient, and a copy of such stipulation certified by said 
 secretary of state, and his certificate that process has been served 
 on him, shall be sufficient evidence thereof. 
 
 Section 4167. Process against or affecting any such foreign cor- 
 poration, company or co-partnership may be served on the secretary 
 of state by duplicate copies, one of which shall be immediately for- 
 warded by the secretary of state, by mail, prepaid, to the corpora- 
 tion, company or co-partnership at its home office or to a person
 
 THE STATE OF VERMONT 957 
 
 whom it designates ; and there shall be paid to tlie secretary of state 
 by the officer at the time of such service the sum of one dollar. 
 
 Section 41GS. If a person or agent for a foreign insurance ex- 
 press, shipping car, telegraph or telephone company, or other for- 
 eign company doing like business, which has not complied with the 
 requirements of this chapter, solicits or receives a risk or application 
 for insurance, or receives money or value for such insurance by such 
 company, or receives money or value for tlie transi)ortati()n of a 
 package or property b.y such express or shipjiing car company, or 
 for the transmission of a message or dispatch by such telegraph 
 company, or receives money, rent, royalty, or income for such tele- 
 phone company for the use of its instruments or lines, or for the 
 sending of any message, he shall be fined not more than five hiuidred 
 dollars and not less than one hundred dollars. 
 
 Section 4169. If a foreign insurance, express, shipping car, tele- 
 graph or telephone company, or other foreign company doing like 
 business in this State, does not comply wnth the jn'ovisions of this 
 chapter, process against it may be served by drlivering a true and 
 attested copy thereof, with the officer's return tlu'reon, to an agent, 
 messenger or operator of such company residing in this State. 
 
 Section 4170. The court before which any such action is pending 
 may allow an amendment of the writ by striking out any of the de- 
 fendants; or by the addition of others, on .such terms as to the court 
 seems just. 
 
 "Illness" Defined. 
 
 The word "illness," as used in questions to an applicant for life 
 insurance means a disease or ailment of such character as to seriously 
 affect the general soundness and healthfulness of the system, and not 
 a mere temporary indisposition. 
 
 Billings vs. Metropolitan Lite Ins. Co., Jan., 1898, 70 Vt. 477. 
 
 "Fraud" and "Breach of Warranty," Meaning of Terms. 
 
 Fraud may be predicated upon the suppression of truth, but breach 
 of warranty must be based on the affirmation of something not true. 
 Even a warrantv that the answers are full, means that thev are full
 
 958 FRATERNAL SOCIETY LAW 
 
 in the sense that the applicant has not intentionally concealed or 
 withheld any material fact or circumstance. 
 
 Billings vs. Met. Life Ins. Co., Jan., 1898, 70 Vt. 477. 
 
 Contract, Situs of. 
 
 An application made by a resident of one State to a life insurance 
 concern with a home office in another State, which is accepted in 
 the latter State and contract issued and deposited in the mail, 
 addressed to the applicant, is held to be a contract of the State where 
 the contract was deposited in the mail, and that it took effect upon 
 such deposit. 
 
 Baker vs. Spaulding Brothers, Oct., 1898, 71 Vt. 169. 
 
 Limitation Clauses Respecting Bringing of Suits, Valid. 
 
 The iirovision in a contract that no suit shall be brought unless 
 commenced within twelve months from the date of the loss, is valid. 
 
 Morrill vs. New England Ins. Co., Jan., 1S99, 71 Vt. 281. 
 
 Agency of General and Local Agents, 
 
 The clause in an insurance contract providing that no agent has 
 power on behalf of the company to extend the time for paying a 
 premium, is held to refer to local agents and not to general agents, 
 and that the latter are premised to possess authority to transact the 
 business of the company generally, and certainly such as relates to 
 the procurement and continuance of risks. 
 
 Fraser vs. Home Life Ins. Co., May, 1899, 71 Vt. 482. 
 
 Forfeiture, Waiver and Custom. 
 
 The fact that the company accepts one premium after it has 
 become due and the policy forfeited, may justify the holder in 
 believing that the company would accept another premium under
 
 THE UTATE OF VERMONT 959 
 
 like circumstances, but would not justify liim in believiuH' that his 
 policy would remain in force whether he paid the premium or not. 
 
 Fraser vs. Home Life Ins. Co., May, 1899, 71 Vt. 482. 
 
 Occupation — "Cattle Shipper" Defined. 
 
 The term "cattle shipjier or tender," used to designate an occupa- 
 tion classed as hazardous, does not include a horse shipper or tender. 
 
 Prink's Admr. vs. Brotherhood Accident Co., May, 1902, 75 Vt. 249. 
 
 Members Presumed to Know Laws of Society. 
 
 The members of mutual societies are presumed to have knowledge 
 of the b.y-laws of the society, and are bound by them. 
 
 Wilson vs. Union Mut. Ins. Co., May, 1904, 77 Vt. 28. 
 
 Accord and Satisfaction, Etc. < 
 
 Where a creditor accepts in sati.sfactiou of his debt the mere 
 promise of the debtor to do some act which he is not already legally 
 bound to perform, that promise, though never fulfilled, constitutes 
 an executed accord and extinguishes the debt, but a promise to 
 perform the promisor's subsisting legal contract with the promise, 
 affords no consideration for the latter 's promise, creates no duty 
 and cannot support an action. 
 
 Manley vs. Vermont Mut. Ins. Co., February, 1906, 78 Vt. 331. 
 
 Warranty — Belief in Truth of Ansv^ers Immaterial. 
 
 Where the contract is issued partly in con.sideration of the ap- 
 plicant's answers and statements contained in his application, which 
 answers and statements are by the terms of the contract made 
 warranties and a part thereof, if any siich answer or statement is 
 incorrect it is a false warranty and vitiates the contract, regardless 
 of whether the applicant honestly believed it to be true. 
 
 Schofield vs. Metropolitan Life Ins. Co., Oct., 1906, 79 Vt. 161.
 
 960 FRATERNAL SOCIETY LAW 
 
 "lUness"— Defined. 
 
 The word "illness," as used in questions to au applicant for life 
 insurance, means a disease or ailment of such character as to seri- 
 ously affect the healthfulness of the system, and not a mere tempo- 
 rary indisposition. 
 
 Schofleld vs. Metropolitan Life Ins. Co., Oct., 1906, 79 Vt. 161. 
 
 Seal, Society May Adopt, Presumptions with Respect to Same. 
 
 A fraternal society may use and adopt any seal that it chooses, 
 and when a document is signed by the proper officials of the society 
 and bears an impress of a seal with the name of the society in the 
 impress, in the absence of evidence to the contrary, it will be pre- 
 sumed that the seal is the proper and common seal of the society. 
 
 Morrill vs. Cath. Order of Foresters, Jan., 1907, 79 Vt. 479. 
 
 Suit by Administrator on Certificate, When Proper. 
 
 The Catholic Order of Foresters issued a certificate to a member 
 payable to the two sons of the member by name. After the member's 
 death, suit was brought on the certificate in question by the ad- 
 ministrator of the deceased member's estate. In view of the fact 
 that the certificate was sealed with the corporate seal, which under 
 the statute made it a .specialty, the court held that the suit was 
 properly brought in the name of the administrator. 
 
 Morrill vs. Cath. Order of Foresters, Jan., 1907, 79 Vt. 479, 
 
 Contract, Construction of. 
 
 In the construction of contracts, the circumstances in which the 
 parties contract are proper to be looked at, and the common knowl- 
 edge of the parties may be a circumstance and afl^ect the proper 
 construction of the contract. 
 
 Trow vs. Preferred Accident Ins. Co., Supreme Ct. Vt., October, 1907, 
 67 Atl. 821.
 
 THE STATU OF YIKGJNIA (jQi 
 
 THE 
 
 STATE OF VIRGINIA. 
 
 CHAPTER 47. 
 
 (The Section numbers employed eorrespoud to those in the act 
 approved March 9, 1906.) 
 
 Definition — Powers — Funds — ^Designation of Beneficiaxies Exemp- 
 tions. 
 
 Section 1. A fraternal beneficiary association, order or society is 
 herebj^ declared to be a corporation, society, order or voluntary as- 
 sociation which is formed or organized for the purpose of providing 
 benefits, charity, relief or insurance for its members and their bene- 
 ficiaries, such insurance being issued in the form of certificates of 
 membership therein which provide for the payment of a specified or 
 other sum of money to the beneficiary on the death of the member 
 in consideration of the payment by the member of fixed sums at 
 fixed periods, or of any sums in the form of dues or other assessments 
 as may be i^rovided in its constitution and by-laws; provided, such 
 corporation, society, or voluntary association shall have no capital 
 stock, and has a representative form of government and a lodge sys- 
 tem, with ritualistic form of work for the meeting of its lodges, chap- 
 ters, councils, or other designated subordinate bodies, and the bene- 
 fits, charity, relief and insurance shall be payable by a grand or 
 supreme body of the same excepting sick benefits, which may be paid 
 also by local or subordinate bodies of such order ; and provided, fur- 
 ther, that every such association may provide in its constitiition or 
 by-laws that if such regular payments are insufficient to pay all ma- 
 61
 
 962 FRATERNAL SOCIETY LAW 
 
 tured death and disability claims in full and to provide for the crea- 
 tion and maintenance of the funds required by its constitution and 
 by-laws, extra assessments or other payments may be levied upon the 
 members; provided, further, that orders or societies operating upon 
 the plan of levying and collecting post-mortem assessments shall in- 
 dicate this i:irovision on the face of the certificate. Such grand or 
 supreme bodies may be composed of its officers, incorporators, rep- 
 resentatives elected by local, district or grand bodies, past officers 
 and standing committees. Such orders or associations may make 
 a constitution and by-laws, alter and amend the same from time to 
 time, and adopt such other rules and regulations consistent -wath 
 the existing laws of the State, for the government of all under its 
 authority, for the management of its properties and the due and 
 orderly conduct of its affairs. Said constitution and by-laws when 
 so made, or as changed, altered or amended, shall be the law govern- 
 ing the said association and its officers, and subordinate branches 
 or lodges, and all members and beneficiaries in their beneficial, finan- 
 cial and social relations to such association. Except as provided 
 in Section 11 of this act, no such association or order shall admit 
 to beneficial membership any person less than sixteen nor more than 
 sixty years of age. Such orders or associations shall make provision 
 for the payment of benefits in ease of death, and may make pro- 
 vision for the payment of benefits in case of sicl^ness, and temporary 
 or permanent physical disability, either as a result of disease, acci- 
 dent or old age ; provided, the period of life at which the payment 
 for old age commences shall not be lander seventy years. Any such 
 order or association may also accumulate, maintain, apply and dis- 
 burse among its membership, or their beneficiaries, a reserve or sur- 
 plus fund as may be provided in its constitution and laws. 
 
 The funds from which the payment of benefits shall be made and 
 the fund from which the expenses shall be defrayed, shall be derived 
 from assessments, dues or other payments collected from its mem- 
 bers, as may be provided by the constitution or by-laws of such 
 order or association. Payment of death benefits shall be to families, 
 heirs, blood relatives, affianced husband or affianced wife of, or to 
 persons dependent upon tlie member, as may be designated by the 
 member, or to such other beneficiaries as may be pcnnitted by the
 
 THE STATE OF VIRGINIA 963 
 
 laws of the State or province in which such other or association is 
 chartered. 
 
 Each member shall have the right to designate his beneficiary, and 
 from time to time have the same changed in accordance with the by- 
 laws, rules or regulations of the order or associations and no bene- 
 ficiary shall have any vested interest in the said benefit until the 
 same has become due and payable upon the death of tlic member. 
 
 All such fraternal beneficiary orders, associations or societies shall 
 be subject to the supervision and direction of the bureau of insur- 
 ance, within the department and s\ibject to the supervision and con- 
 trol of the State corporation commission, as provided by law, iind all 
 such fratei"nal orders, associations or societies shall be governed 
 by this chapter, and shall be exempt from the provisions of section 
 twelve hundred and seventy-one of the Code, relating to securities 
 to be deposited with the treasurer of this State, and shall be exempt 
 from all other laws of this State relating to corporations organized 
 and doing business imder the system of life or casualty insurance 
 known as either the old line or legal reserve plan or the co-operative 
 or assessment plan : Provided, however, that nothing in this section 
 shall be construed to exempt such orders, associations or societies 
 fi'om the operation of any laws governing pleading and evidence, 
 the jurisdiction of courts and the limitations of actions, in suits or 
 actions on insurance policies or certificates. 
 
 Condition on Which Orders May Continue Operation in the State. 
 
 . Section 2. Any fraternal beneficiary order, association or society 
 of this, or any other State, district, province or Territoi-y, now hav- 
 ing members, or any lodge, chapter, council, or subordinate branch 
 duly established and organized in this State, may continue its opera- 
 tions and business in this State : Provided, that it hereafter com- 
 plies with the provisions of this act, and provided it is solvent. 
 
 Conditions on Which Orders May Begin Operation in the State. 
 
 Section 3. Any fraternal beneficiary order, association or society 
 coming within the description as set forth in section one of this act, 
 •organized under the laws of any other State, province, district or
 
 964 FRATERNAL SOCIETY LAW 
 
 territory, not now having lodges, councils or other subordinate 
 bodies, or members in this State, shall be permitted to do business 
 within this State in accordance with this chapter when it shall have 
 filed with the commissioner of insurance a certificate from the official 
 in charge of insurance matters in its home State of incorporation 
 that it is authorized to transact business therein as a fraternal bene- 
 ficiary order, society or association, also a duly certified copy of its 
 charter and articles of association, and a copy of its constitution 
 and laws, certified to by its secretary or corresponding officer, to- 
 gether with an appointment of the commissioner of insurance as the 
 person upon whom legal process may be served, as hereinafter pro- 
 vided ; and provided, such order, association or society is solvent. 
 
 Annual Reports. 
 
 Section 4. Each such corporation, society, order or association 
 doing business in this State, shall, on or before the first day of 
 March of each year, make and file with the State corporation com- 
 mission a report of its afi'airs and operations during the year ending 
 the thirty-first day of December immediately preceding. Such re- 
 port shall be made on blanks provided by the State corporation 
 commission, imder oath by the duly authorized officers of any such 
 order or association, and shall be published or the substance there- 
 of, in the annual report of the commissioner of insurance, and shall 
 be in the following form: 
 
 Annual Statement. 
 
 For the year ending December 31. 19 . 
 
 Of the condition and affairs of the , organized 
 
 under the laws of the State of , made to the auditor of 
 
 public accounts of • — — — , president, or corresponding title • , 
 
 first vice-president, or corresponding title secretary, or corre- 
 sponding title , treasurer or corresponding title (state what 
 
 law), . Incorporated , nineteen hundred and , 
 
 under •, approved , nineteen hundred and , chap- 
 ter ; organized , nineteen hundred and ; voluntary 
 
 association ; commenced business, 190 ; home office (give 
 
 street and number).
 
 THE STATE OF VIRGINIA 955 
 
 One. Balance Sheet. 
 
 Amount of net ledger assets, Dccenihoi- tliirty-on(% ciT prcvidiis 
 year, $ . 
 
 Two. Income during the year. 
 
 As shown by the books at the home office at close of business 
 
 December thirty-one, nineteen hundred and . Gross amount 
 
 I^aid by members to the society as follows : 
 
 One. Dues for expenses, per capita tax, etc., $ . 
 
 Two. Assessments : Mortuary, $ ; reserve $ ; ex- 
 penses, $ . 
 
 Three. Total received from members, $ — . 
 
 Four. Interest, $ ; rent, $ . 
 
 Five. From all other sources — viz. : 
 
 Total income during the year $- 
 
 Sum of both amounts $- 
 
 Three. Disbursements during the year. 
 
 As shown by the books at home office at close of business. 
 
 December 31, 1901 . 
 
 One. Death claims, $ ; penuanent disability claims, 
 
 $ $ 
 
 Two. Temporary disability, $ ; old age benefits, $ $ 
 
 Three. Payments returned to applicants or members.... $ 
 
 Total paid to members and beneficiaries $ 
 
 Four. Commissions, fees, salaries paid or allowed to agents 
 for organization of subordinate bodies and ujibuilding of 
 
 same $ 
 
 Five. Salaries paid to officers $ 
 
 Six. Salaries paid to office employes $
 
 966 FRATERNAL SOCIETY LAW 
 
 Seven. Salaries or fees paid supreme or medical super- 
 visors $- 
 
 Eight. Rent, $ ; taxes, $ ; advertising, official pub- 
 lication and printing, $ .$- 
 
 Nine. Postage, express and telegraph, $ ; legal ex- 
 penses, $ ; governing bodies. $ ; insurance de- 
 partments, $ ; miscellaneous, $ $- 
 
 Ten. All other items, viz. : 
 
 (Total expenses, footings of items four to ten, $ ). Total 
 
 disbursements $- 
 
 Balance $ 
 
 Invested as follows : 
 
 Four. Ledger assets. 
 
 As shown bj' the books at home office at close of business. 
 
 December 31, 190—. 
 
 One. Book value of real estate, unencumbered, $ ; en- 
 cumbered, $ $ 
 
 Two. Mortgage loans on real estate, first liens, $ ; 
 
 other than first, $ $ 
 
 Three. Loans secured by pledge of bonds, stock, or other 
 collateral $ 
 
 Four. Book value of lionds (excluding interest) and stocks 
 owned absolutely $ 
 
 Five. Personal agents' debit balances, $ • bii^ receiv- 
 able, $ • $ 
 
 Six. Cash in office, $ ; deposited in bank (name banks 
 
 and amounts) , $ $
 
 THE STATE OF VIRGINIA 967 
 
 Seven. Total $- 
 
 Deduct ledger liabilities. 
 
 Bight. Personal or agents' credit balances % ; bor- 
 rowed money, $ ; all other, $ $- 
 
 Nine. Total net ledger assets as per balance on page , 
 
 compi'ised under the following funds $- 
 
 Ten. Mortuary $- 
 
 Eleven. Reserve $- 
 
 Twelve. Emergency $- 
 
 Thirteen. Expense $- 
 
 Five. Non-ledger assets. 
 
 Fourteen. Interest due, $ ; accrued, $ ; on mort- 
 gages, $ $- 
 
 Fifteen. Interest due, $ ; accrued. .$ ; on other 
 
 assets, .$ $- 
 
 Sixteen. Rents due, $ ; accrued, $ ; on property 
 
 or lease. $ $- 
 
 Seventeen. Market value of real estate over book value. . .$- 
 
 Eighteen. Market value of bonds (not including interest) 
 and stocks over book value $- 
 
 Nineteen. Assessments due on last call, made within sixty 
 days, on certificates in force $- 
 
 Twenty. Assessments to become due on certificates not ex- 
 ceeding one assessment, nor the amount of chiims not 
 assessed for per item two of liabilities $- 
 
 Twenty-one. Other items $- 
 
 Total non-ledger assets $- 
 
 Gross assets $- 
 
 (Deduct assets not admitted.) 
 
 One. Furniture, fixtures and safes, supplies, printed mat- 
 ter, stationery, etc $- 
 
 Two. Personal or agents' debts debit balances unsecured. 
 $ ; bills receivable unsecured, $ $-
 
 968 FRATERNAL SOCIETY LAT/f 
 
 Three. Excess of items seventeen and eighteen over 
 charges in liabilities on same account $- 
 
 Four. Depreciation of ledger assets to bring same to mar- 
 ket value $- 
 
 Real estate, $ ; bonds and stocks, $ .$- 
 
 Five. Other items: 
 
 $ 
 
 Total non-admitted assets $ 
 
 Total admitted assets $ 
 
 Six. Non-ledger liabilities. 
 
 One. Losses on certificates due and unpaid, $ ; ad- 
 justed, not due, $ $ 
 
 Two. Instalment of annuity benefits not due $ 
 
 Three. Losses on certificates not adjusted, $ ; re- 
 sisted, $ $— 
 
 Four. Salaries, rents, expenses, taxes, bills, accounts, fees 
 
 etc., due and accrued $ 
 
 Five. Advanced assessments $ 
 
 All other liabilities — viz. : 
 
 $ 
 
 Total liabilities $ ■ 
 
 Balance to protect contracts $ 
 
 'I 
 Seven. Exhibit of certificates. 
 
 Total business during year. Business in Virginia during year. 
 
 Number, ; amount, ; number, ; amount, . 
 
 Certificates in force December thirty-one (beginning of year, 
 
 Certificates in force December thirty-one, beginning of j'ear,
 
 THE STATE OF VIRGINIA 909 
 
 Death losses and claims. 
 
 No. Amount. No. Amount. 
 
 Losses and claims unpaid December 
 
 thirty-one (beginning of year)... $ $ 
 
 Losses and claims incurred during 
 
 the calendar year $ $ 
 
 Total $ $ . 
 
 Losses and claims paid during the 
 
 year $ $ • 
 
 Losses and claims unpaid (Decem- 
 ber thirty-one, end of year) $ $ 
 
 Disability losses and claims. 
 
 Losses and claims unpaid December 
 
 thirty-one (beginning of year)... $ $ 
 
 Losses and claims incurred during 
 
 the calendar year — ■ — $ $ 
 
 Total $ $ 
 
 Losses and claims paid during the 
 
 year $ $ 
 
 Losses and claims unpaid Decem- 
 ber thirty-one (end of year) $ $ 
 
 State of , county of ss -. 
 
 ■, president (or chief executive officer), and , 
 
 secretary (or similar officer), of the society, being duly 
 
 sworn, each for himself deposes and says, that they are the above 
 described officers of the said society, and that on the thirty-first day 
 of December last all the above-described assets were the absolute 
 property of the said society free and clear from any liens or claims 
 thereon, except as above stated; and that the foregoing statement 
 of the assets, liabilities, income and disbursements, and of the con- 
 dition and affairs of the said society on the said thirty-first day of 
 December last, and for the year ending on that date, according to 
 the best of their information, knowledge and belief, respectively, 
 are true and correct.
 
 970 FRATERNAL SOCIETY LAW 
 
 Subscribed and sworn to before me this day of 
 
 A. D. 19 . 
 
 Examinatfon of Books by Commissioner — Certificates of Result. 
 
 Section 5. The commissioner of insurance, or any person or per- 
 sons appointed by him. shall, at the request of any fraternal bene- 
 ficiary order or association, or he may of his own volition, examine the 
 books, accounts and assets of any fraternal beneficiary association, 
 order or society operating in this State for the piarpose of verifying 
 the annual report submitted, and all expenses incident thereto, as 
 may be deemed reasonable by the auditor of public accounts, shall 
 be paid by such association, order or society: Provided, however, 
 that in ease of fraternal beneficiary associations, orders or societies 
 organized under the laws of another State, the commissioner of 
 insurance may accept in lieu of such examination, the examination 
 ■ of the insurance official of said State. Territory or province, under 
 the laws of which such association, order or society is organized and 
 in which it has its home office. In the event of examination, the 
 commissioner of insurance shall furnish to such association, order 
 or society a certificate as to the result of his examination, and he 
 shall furnish to domestic fraternal associations, orders or societies 
 such certificates as may be required by the insurance officials of 
 other States in relation to their business with fraternal beneficiaiy 
 associations or orders chartered under the laws of this State. 
 
 Foreign Orders to Appoint Commissioner to Accept Service of Pro- 
 cess — Duty of Commissioner — Fees. 
 
 Section 6. Bach such corporation, society, or association now do- 
 ing, or hereafter admitted to do business within this State, and not 
 having its principal office within this State, and not being organized 
 under the laws of this State, shall appoint, in writing, the insur- 
 ance commissioner, and his successors in office, to be its true and law- 
 ful attorney, ujion wlioni all lawful process in any action or pro- 
 ceeding against it mav be served, and in such writing shall agree
 
 THE HTATE OF VlJiOJNlA 971 
 
 that any lawful process against it, which is served on said attorney, 
 shall be of the same legal force and validity as if served upon the 
 order or association, and that the authority shall continue in force 
 so long as any liability remains outstanding- in this State and such 
 service in this State shall alone l)e a legal service. Copies of such 
 appointment, certified by said commissioner of insurance, shall be 
 deemed sufficient evidence thereof, and shall be admitted in evidence 
 with the same force and effect as the original thereof might be ad- 
 mitted. Service upon such attorney shall be deemed sufficient 
 service upon such association. When legal process against any such 
 order is served upon the said commissioner of insurance, he shall 
 immediately notify the order of such service by letter, prepaid and 
 directed to its secretary or corresponding officer, and he shall, within 
 two days after such service, forwai'd in the same manner a eo])y of the 
 process served on him to such officer. The plaintitt' in su('li process 
 shall pay to the commissioner of insurance, at the time of such 
 service, a fee of two dollars and fifty cents, which shall be recov- 
 ered by him as a part of the taxable costs, if he finally prevail in the 
 suit. The commissioner of insurance shall keep a record of all pro- 
 cesses served upon him, which record .shall show the day and hour 
 when such service was made and by whom made. 
 
 License to do Business — Annual Fees. 
 
 Section 7. The commissioner of iu.surance shall, upon the appli- 
 cation of any order, society or association having the right to do 
 business in this State, as provided by this act, issue a permit in 
 writing, authorizing it to do business in this State, for which certifi- 
 cate and all proceedings in connection therewith such order or 
 association shall pay to the said commissioner of insurance a fee 
 of twenty dollars, which shall be in lieu of all fees and license taxes, 
 whether State, county or municipal. This fee shall be paid annually 
 thereafter in advance. 
 
 Procedure Upon Failure to Obey Law — When Unlawful to Solicit 
 New Members — Penalties. 
 
 Section 8. It shall be unlawful for auv such order, association or
 
 
 972 FRATERNAL SOCIETY LAW 
 
 society to do business iu this State while it is in default in making 
 said report to the State corporation commission. The insurance 
 commissioner shall, within sixty days after failure to make such 
 report, and shall, in case any such order, association or society con- 
 duct its business fraiidulently, or in aiiy manner fail to comply with 
 this act, give notice of the same, iu writing, to the attorney-general, 
 who shall immediately notify such order, association or society of 
 such complaint and afford it reasonable opportunity on a day 
 named in such notice to show cause why proceedings to exclude it 
 from doing business in this State should not be instituted. If, upon 
 such hearing before him, the attorney-general lie of the opinion 
 that such proceedings should be instituted, he shall forthwith insti- 
 tute the same. And if the court, upon hearing, shall be of the opin- 
 ion that such order, association or society has violated the provisions ' 
 of this chapter, or has conducted its business fraudulently, the court 
 shall enjoin it from doing business in this State or make any other 
 order which the court may deem proper in the premises. 
 
 Any officer, agent or person attempting to secure new members 
 for an.y order,- association or society which has been excluded from 
 doing business in this State, shall be deemed guilty of a misde- 
 meanor, and upon conviction thereof shall be pimished by a fine of 
 not less than one hundred dollars; and each act in violation of this 
 provision shall be constituted a separate offense. 
 
 When Unlawful to Solicit Members. 
 
 Section 9. Any person who shall act within this State as an of- 
 ficer, agent or otherwise, for any such fraternal beneficiary order or 
 association in soliciting members, which shall have neglected or 
 refused to comply with this act, shall be subject to the penalty 
 provided in the last preceding section for the misdemeanor therein 
 specified. 
 
 Transfer of Membership and Assets From One Order to Another. 
 
 Section 10. No domestic fraternal beneficiarj^ association, order 
 or society shall transfer its membership and assets to any association, 
 order or society or insurance corporation not licensed to do business
 
 THE STATE OF VIRGINIA 973 
 
 in this State; nor shall such transfer be made to any licensed society, 
 order, association or corporation unless the agreement to so transfer 
 has l)('en approved by a two-thirds vote of the members of the su- 
 preme body, or any other body competent to act during recess of 
 the supreme body of such association, order or society whose 
 membership is proposed to be transferred; and by a two-thirds vote 
 of the supreme body or any other body competent to act during 
 recess of supreme body of such order, association or society pro- 
 posing to accept such membership and assets. Any domestic fra- 
 ternal benehciary association, order or society may accept the mem- 
 bership and assets of any other such organization upon such terms 
 and conditions as may be agreed upon by said governing body or 
 bodies authorized to act under the constitution and laws of such 
 order, association or society. 
 
 Penalty for Fraudulently Procuring Certificate — Such Certificate 
 Void. 
 
 Section 11. Any agent, physician or other person who shall 
 knowingly secure or cause to be secured a certificate of membership 
 on any person without his knowledge or consent, or by means of 
 misrepresentation, false, fraudulent or untrue statements be instru- 
 mental in securing a certificate of membership on any aged or infirm 
 person, or in restoring to membership any person not in an insur- 
 able condition, shall be deemed guilty of a misdemeanor, and upon 
 conviction thereof shall be fined in a sum not less than one hun- 
 dred dollars, nor more than one thousand dollars, or to be imprisoned 
 in jail not less than thirty days nor more than one year, or both, 
 and the said certificate or renewal so secured shall be absolutely 
 void. 
 
 Act Not Applicable to Certain Orders. 
 
 Section 12. And nothing in this act shall be held to affect or to 
 apply to grand or subordinate lodges of masons, knights of Pythias 
 (endowment rank excepted), odd fellows, red men, junior order of 
 American mechanics, or similar orders that do not inspire the lives 
 of their members.
 
 V 
 
 974 FRATERNAL SOCIETY LAW 
 
 Forfeiture — No Waiver of Laws by Custom of Local Lodge Officers' 
 Acts. 
 
 The forfeiture of a certificate is not waived by the fact that the 
 subordinate lodge collector is in the habit of receiving payments of 
 assessments after the end of the month for which they are levied 
 and within which they are payable under the penalty of suspension 
 and forfeiture, where there is no evidence that the supreme lodge 
 which is sued on the certificate is aware of such habit or custom. 
 
 Supreme Lodge, Knights of Honor vs. Oeters, Feb., 1S98, 95 Va. 610. 
 
 Forfeiture — Waivers of Laws, Estoppel. 
 
 Where the arrears for Avhich a member stands suspended and his 
 certificate forfeited have not been paid at the time of his death, no 
 waiver of the forfeiture can be implied from the fact that the local 
 collector had previously been in the habit of receiving payments of 
 such arrears after the dates at which they were payable. 
 
 Supreme Lodge, Knights of Honor vs. Oeters, Feb., 189S, 95 Va. 610. 
 
 Warranties, Literal Truth Required Under. 
 
 The statements contained in an application, which are made in 
 answer to specific questions, where the application contains general 
 terms pf wai-ranty as to the truthfulness of the statements, are to be 
 deemed warranties, and if untrue, thi^ contract is void. 
 
 Metropolitan Life Ins. Co. vs. Rutherford, April. 1,S9S, 95 Va. 773. 
 
 Contract — Repudiation of — Right to Sue. 
 
 Where there has been a total refusal by one of the parties to per- 
 form his part of the contract, the other may elect to sue at once for 
 the breach without waiting for the time of performance to arrive, 
 but to justify such suit there must be a distinct, unequivocal, and 
 absolute refusal to perform the contract. Notice by an assessment 
 comi^any that if certain increased assessments are not paid in a
 
 THE STATE OF VllHllNlA 975 
 
 given time, it will declare the contract void, is a conditional repudia- 
 tion, and no action will lie for the breach of the contract until the 
 company declares the contract void. 
 
 Lee vs. Mut. Reserve Fund Assn., June, 1899, 97 Va. 160. 
 
 Warranty, False Answers Under. 
 
 In an application for insurance where the applicant fails to dis- 
 close that he has made application and has been rejected for insur- 
 ance in other compauie.s, when such matters are inquired into under 
 a general statement of warranty as to the truthfulness of the answei's 
 given, where it is found that such application is false in that the 
 applicant concealed that he had made application and been rejected, 
 the certificate issued upon the same is void. 
 
 National Life Assn. vs. Hoplvins, June, 1899, 97 Va. 167. 
 
 Warranties Strictly Upheld. 
 
 If a contract makes the statements in the aiDplication warranties, 
 and such application states that the death of the father of the 
 member was caused by one disease, and the proof of loss made by 
 the beneficiary and offered in evidence by him states that said death 
 was caused by a different disease, on a demurrer to the evidence of 
 the beneficiary in an action on the contract, judgment should be 
 given for the society. 
 
 Metropolitan Life Ins. Co. vs. Rutherford, Marcli, 1900, 98 Va. 195. 
 
 Warranties, Literal Truth of Answers Required Under. 
 
 Where the answers to questions propounded in an application for 
 insurance are made warranties by the terms of the contract, its 
 validity depends upon the literal truth of such answers, and it is a 
 matter of no consequence whether or not they are material to the 
 risk. Being warranties they are in the nature of conditions pre- 
 cedent, and like them must be strictly complied with. 
 
 Metropolitan Lite Ins. Co. vs. Rutherford. March, 1900, 98 Va. 195.
 
 976 FRATERNAL SOCIETY LAW 
 
 Contract — Repudiation of — Suit on. 
 
 When one party to a contract has entirely abandoned it, or has 
 absolutely refused to perform, the other party may sue on it at once 
 without waiting for the time of performance to arrive. 
 
 Mutual Reserve Fund Life Assn. vs. Taylor, Feb., 1901, 99 Va. 208. 
 
 Assessments, Increase of as Required. 
 
 A stipulation in a mutual life insurance contract that the rate of 
 assessments may be changed to correspond with the actual mortality 
 experience of the society, means that the proportion between differ- 
 ent ages may be changed to meet the result of experience, and not 
 merely that all rates must be increased the same percentage. 
 
 Mutual Reserve Fund Life Assn. vs. Taylor, Feb., 1901, 99 Va. 208. 
 
 Foreign Society, Rights of. 
 
 A state may exclude altogether a foreign corporation from doing 
 business within its limits, or exact such security for the performance 
 of its contracts with its citizens as it may deem proper, Avhere such 
 foreign corporation is not in the employ of the federal government, 
 nor engaged in interstate or foreign commerce. 
 
 National Council vs. State Council, June. 1905, 104 Va. 197. 
 
 Evidence, Parol Agreements Respecting Insurance Contracts. 
 
 In an action to recover on a life insurance eoutract, a contempo- 
 raneous parol agreement or understanding between the agent who 
 solicits the insurance and the member as to the time and place of 
 paying premiums different from that stated in the contract, cannot 
 be given in evidence, as it varies or contradicts the terms of the 
 written contract of the parties. 
 
 Metropolitan Life Ins. Co. vs. Hall, November, 1905, 104 Va. 572. 
 
 I 

 
 THE STATE OF VIRGINIA ■ 977 
 
 Contract— What is Life Insurance. 
 
 A contract by which a society agrees to pay a certain sum of 
 money ou the death of a member, in consideration of the payment 
 by the member of fixed sums at fixed periods, by whatever name 
 called, is a life insurance policy within tlie meaning of Section 3551 
 of the Code of 1904, permitting complaint to be filed instead of a 
 declaration in a formal action at law, and is not a mere certificate 
 of membership in a benefit society and in the purview of the acts 
 of 1897. 
 
 Cosmopolitan Life' Ins. Co. vs. Koewl. Nov., 1905, 104 Va. C19. 
 
 Suicide — No Presumption of. 
 
 The defense of suicide, to avail, must exclude every hypothesis of 
 accidental death, and the party making the defense has the burden 
 of proof. The mere fact that the body of insured is found with a 
 pistol in his hand and a bullet wound in his head is not sufficient to 
 prove suicide. 
 
 Cosmopolitan Life Ins. Co. vs. Koegel, Nov., 1905, 104 Va. 619. 
 
 Evidence — Members Presumed to Know the Laws of a Society. 
 
 Members of a society are presumed to know its constitution and 
 by-laws, and after they have been approved, if a member claims 
 there has been a change in them affecting his rights, the burden is 
 upon him to prove it. 
 
 United Moderns vs. Rathbun, Jan., 1906, 104 Va. 736. 
 
 Suicide— After-enacted Laws Valid. 
 
 A person who applies for and receives a certificate of membership 
 by which the applicant promises and agrees to be bound by the laws 
 of the society then in force and those to be thereafter adopted, is 
 bound by a subsequent law, duly passed, which provides for a 
 forfeiture of said certificate or a lessening of the value thereof in
 
 978 FRATERNAL SOCIETY LAW 
 
 ease the member shall while insane commit suicide, although no 
 such law existed when the certificate was issued. 
 
 Plunkett vs. Supreme Conclave, Improved Order of Heptasophs, June, 
 
 1906, 105 Va. 643. 
 
 Contract, Style of Type Required to be Printed in. 
 
 The provisions of Section 3252 of the Code requiring the condi- 
 tions and restricted provisions of an insurance contract to be printed 
 in type as large as or larger than long primer type, or written with 
 pen and ink in or upon the contract, has no application to the con- 
 ditions or restricted provisions contained in the by-laws of an 
 ordinary benefit society which is made a part of the certificate of 
 membership, and which is a contract between the society and the 
 member. 
 
 Fraternities Accident Order vs. Armstrong, March, 1907, 106 Va. 746. 
 
 Laws — Presumed to be Known to Members. 
 
 The law conclusively presumes that those who become members 
 of a fraternal society have acquainted themselves with its by-laws, 
 and they are bound by the provisions of such laws. 
 
 Fraternities Accident Order vs. Armstrong, March, 1907, 106 Va. 746. 
 
 Venue of Suits Against Corporation. 
 
 A corporation may be sued on a transitory cause of action 
 wherever it is doing business in such a manner or to such an ex- 
 tent as to warrant the inference that it is there present through its 
 agents. 
 
 Deatriclt vs. State Life Ins. Co., Supreme Ct. App. of Va., November, 
 
 1907, 59 S. E. 489. 
 
 Warranty — False Statements. 
 
 No recovery can be had on a life policy issued upon wilfuUj'^
 
 THE HTATE OF VIRGINIA 979 
 
 false statements of the assured, of facts material to the risk, although 
 the insurance was solicited by tlic agent of the company, and the 
 beneficiary informed the agent that he did not believe the insured 
 could obtain insurance. 
 
 Burruss vs. National Life Assn., Jan., 1S99, 9G Va. 543. 
 
 Forfeiture — Where Right to is Waived. 
 
 Where the right to rely iipon a forfeiture has been once waived, 
 it is extinguished and cannot be revived. 
 
 Farmers Benev. Ins. Assn. vs. Kinsey, Feb., 1903, 101 Va. 236. 
 
 Payments by Husband to Keep Certificate on Life of Wife Alive. 
 
 In the absence of contract, payments made by a husband on a 
 certificate in a benefit society issued to the wife are regarded as 
 gratuitous and create no equities in favor of the husband. 
 
 Leftwich vs. Wells, Feb., 1903, 101 Va. 255.
 
 980 
 
 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF WASHINGTON. 
 
 \ 
 
 CHAPTER 48. 
 
 (The Section numbers employed correspond to those in the insur- 
 ance laws of Washington compiled 1907.) 
 
 Definition of and Provisions for — Ritualistic System — Benefits. 
 
 Section 117. A fraternal beneficiary association is hereby de- 
 clared to be a corporation, society or voluntary association formed 
 or organized and carried on for the sole benefit of its members and 
 their beneficiaries, and not for profit. Each association shall have 
 a lodge system and must maintain one or more lodges within the 
 State Avith ritualistic form of work and representative form of gov- 
 ernment and shall make provisions for the payment of benefits in 
 case of death, and may make provisions for the payment of benefits 
 in case of sicknes.s, temporary or permanent physical disability, 
 either as the result of disease, accident or old age : Provided, The 
 period in life at which payment of physical disability benefits on 
 account of old age commences, shall not be under seventy (70) years 
 subject to their compliance with its constitution and laws. The fund 
 from which the payment of such benefits shall be made, and the 
 fund from which the expenses of such association shall be defrayed, 
 shall be derived from assessments or dues collected from its mem- 
 bers. Payment of death benefits shall be to the families, heirs, 
 blood relatives, affianced husband or affianced wife of, or to persons 
 dependent upon the member. Such associations shall be governed 
 by this act and shall be exempt from the provisions of other laws
 
 THE HTATE OF WASHINGTON 981 
 
 of this State and no law hereafter passed sliall apply to them unless 
 they be expressly designated therein. Any such fraternal beneficial 
 association may create, maintain, disperse [disburse] and apply a 
 reserve or emergency fund in accordance with its constitution or by- 
 laws. 
 
 Companies Now Doing Business Must Comply. 
 
 Section 118. All fraternal, beneficiary associations organized under 
 the laws of this or any other State, province or Territory, now 
 doing business in this State, may continue such business : Provided, 
 That they hereafter comply with the provisions of this act regula- 
 ting annual reports and the designation of the Commissioner of In- 
 surance as the person whom process may be served as hereinafter 
 provided. 
 
 Foreign Associations — How Admitted. 
 
 Section 119. Anj' such association coming within the description, 
 as set forth in Section 1 of this act, organized under the laws of any 
 other State, province or territory, and not now doing business in 
 this State, shall be admitted to do business within this State when it 
 shall have filed with the Commissioner of Insurance a duly certified 
 copy of its charter and articles of association, and a copy of its 
 constitution and laws, certified to by its secretary or corresponding 
 officer, together with an appointment of the Commissioner of Insur- 
 ance of this State as a person upon whom ]n'oepss may be served 
 as hereinafter provided ; and provided that such association shall be 
 shown to be authorized to do business in the State, province or ter- 
 ritory in which it is incorporated or organized, in case the laws of 
 such State, province or territory shall provide for such authorization, 
 and in case the laws of such State, province or territory do not pro- 
 vide for any formal authorization to do business on the part of such 
 association, then such association shall be shown to be conducting 
 its business in accordance with the provisions of this act, for which 
 purpose the Commissioner of Insurance of this State may person- 
 ally, or by some person to be designated by him, examine into the 
 condition, affairs, character and business methods, accounts, books
 
 1 
 
 982 FRATERNAL SOCIETY LAW 
 
 and investments of such association at its home office, which exami- 
 nation shall be at the expense of such association, and shall be made 
 within thirty days after demand thereof, and the expense of such 
 examination shall be limited to $200. 
 
 Annual Filing of Certificate of Authority. 
 
 Section 120. Any association doing business under this act shall 
 be permitted to do business upon filing annually with the Commis- 
 sioner of Insurance of this State, the certificate of authorization 
 of the insui'anee department of the State, province or territory in 
 which it is incorporated or organized : Provided, however, In case of 
 failure to file said certificate by any such association, or in case the 
 Commissioner of Insurance shall deem it necessar.y, he shall have 
 power to examine, either personally or by some person designated by 
 him, into the condition, affairs, character, business methods, ac- 
 counts, books and investments of such association, at his home office, 
 which examination shall be at the expense of the association ; the 
 amount thereof .shall not exceed two hundred dollars in associations 
 with no reserve or emergency fund, and four hundred dollars for 
 associations with a reserve or emergency fund. .( 
 
 Report — Examination. 
 
 Section 121. Each such association doing business in this State 
 shall, on or before the first day of March of each year, make and file 
 with the Commissioner of Insurance of this State a report of its 
 afi'airs and operations during the year ending on the 31st day of De- 
 cember, immediately preceding, which annual report shall be in 
 lieu of all other reports required by any other law. Such reports 
 shall be upon blank forms to be provided by the Commissioner of 
 Insurance, or may be printed in pamphlet form, and shall be verified 
 under oath by the dulj' authorized officers of such association, and 
 may be published, or the substance thereof, in the annual report of 
 the Commissioner of Insurance under a separate part entitled "Fra- 
 ternal Beneficiary Associations." and shall contain answers to the 
 following questions: 
 
 1.
 
 THE UTATE OF WA&UIXQTON 983 
 
 1. Number of certificates issued during the year, or members 
 admitted. 
 
 2. Amount of indemnity affected thereby. 
 
 3. Number of losses or benefit liabilities incurred. 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representa- 
 tives, or heirs. 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 8. Number and kind of claims compromised or resisted and state- 
 ment of reasons. 
 
 9. Does the association charge annual or other periodical dues 
 or admission fees? 
 
 10. How much of each one thousand dollars, annually or per 
 capita, as the case may be. 
 
 11. Total amount received, from what sources, and the disposi- 
 tion thereof. 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does the association guarantee, in its certificates, fixed 
 amounts to be paid, regardless of amount realized from assessments, 
 dues, admission fees and donations? 
 
 14. If so. state amount guaranteed, and the security of such 
 guarantee. 
 
 15. Has the association a reserve fund? 
 
 16. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested. 
 
 17. Has the association more than one class? 
 
 18. If so, how many, and the amount of indemnity in each. 
 
 19. Number of members in each class. 
 
 20. If voluntary, so state, and give date of organization. 
 
 21. If organized under the laws of this State, under what law, 
 and at what time ; giving chapter and year and date of passage of 
 the act. 
 
 22. If organized under the laws of any other State, province 
 or territory, state such fact and the date of organization, giving 
 chapter and year and date of passage of the act.
 
 984 FRATERNAL SOCIETY LAW 
 
 23. Number of certificates of benefieiai-y membership lapsed dur- 
 ing the j^ear. 
 
 24. Number in force at beginning and end of year; if more than 
 one class, number in each class. 
 
 25. Names and addresses of its president, secretary and treas- 
 urer, or corresponding officers. 
 
 The Commissioner of Insurance is authorized and empowered to 
 address au.y additional inquiries to any such association in relation 
 to its doings or condition, or any other matter connected with its 
 transaction relative to the business contemplated by this act, and 
 such officers of .such association as the Commissioner of Insurance 
 may require shall promptly reply in writing, luider oath, to all such 
 inquiries. 
 
 Agent in This State — Legal Process. 
 
 Section 122. Each such association now doing business or here- 
 after admitted to do business in this State and not having its 
 principal office within this State, and not being organized under the 
 laws of this State, shall appoint, in writing, the Commissioner of 
 Insurance and his successors in office to be its true and lawful attor- 
 ney, upon whom all lawful process in any action or proceeding 
 against it must be served, and in such writing shall agree that any 
 lawful process against it which is served on said attorney, shall be 
 of the same legal force and validity as if served upon the associa- 
 tion, and that the authority shall continue in force so long as any 
 liability remains outstanding in this State. Copies of such certificate, 
 certified by said Commissioner of Insurance, shall be deemed suffi- 
 cient evidence thereof, and shall be admitted in evidence with the 
 same force and effect as the original thereof might be admitted. 
 Service upon such attorney shall be deemed sufficient service upon 
 such association. 
 
 When legal process against any such association is served upon 
 said Commissioner of Insurance, he shall immediately notify the 
 association of such service by letter, prepaid and directed to its 
 secretary or corresponding officer, and shall within two days after 
 such service forward in the same manner a copy of the process
 
 THE STATE OF WASHINGTON 985 
 
 served ou him to such officer. The plaintiff iu such process so 
 served shall paj^ to the Commissioner of Insurance at the time of 
 such service a fee of $3, which shall he recovered by him as part 
 of the taxable costs, if he prevails in the suit. The Commissioner 
 of Insurance shall keep a record of all processes served upon him, 
 which record shall show the day and hour when such service was 
 made. 
 
 Issuance of Permits — Fee. 
 
 Section 123. The Commissioner of Insurance of this State shall, 
 upon the application of any association having the right to do busi- 
 ness within this State, as provided by this act, i.ssue to such associa- 
 tion a permit in writing, authorizing such association to do business 
 within this State, for which certificate and all proceedings in con- 
 nection therewith, such association shall pay to said commissioner 
 the fee of $5. 
 
 Formation of Beneficiary Associations. 
 
 Section 124. Any number of persons, not less than ten, residents 
 of the State of Washington, and citizens of the United States, may 
 form a fraternal beneficiary society, order or association, for the 
 purjjoses set forth in this act, by filing in the office of Insurance 
 Commissioner a declaration signed by each of the corporators and 
 duly acknowledged before an officer authorized under the laws of 
 this State to take acknowledgments, and shall therein express their 
 intention of forming a fraternal beneficiary society, order or asso- 
 ciation for beneficiary purposes, which said declaration shall also 
 contain the proposed name of the society, order or association, which 
 shall not be the same as, nor too closely resemble, the name of any 
 other society, order or association, organized under the laws of 
 this State or doing business in this State ; the mode and manner in 
 which the powers granted by this act are to be exercised; the place 
 of doing business fully and clearly defined; the limit as to age of 
 applicant or beneficiary member.ship, which shall not exceed fifty 
 years, and that medical examinations are required of members for 
 life benefits; the name and official titles of the officers, trustees.
 
 986 FRATERNAL SOCIETY LAW 
 
 directors, representatives or other persons, by whatsoever name or 
 title designated, who are to have and exercise the general control 
 and management of its affairs and all its funds, who shall be elected 
 after the first year by representatives chosen by subordinate lodges, 
 councils or bodies, or grand lodges, grand councils or bodies, as 
 the laws of the society, order or association may provide, who shall 
 be members of such society, order or association. Such first officers 
 of any such society, order or association shall not hold office longer 
 than one year unless re-elected by a majority of the members 
 thereof. 
 
 Shall Not Employ Paid Agents. 
 
 Section 125. Such associations shall not employ paid agents in 
 soliciting or procuring members, except in the organization or 
 building up of subordinate bodies or granting members inducements 
 to procure new members. 
 
 Contracts — When Not Valid. 
 
 Section 126. No contract with any such association shall be valid 
 when there is a contract, agreement or understanding between the 
 member and the beneficiary that the benefieiaiy or any person for 
 him shall pay such member's assessments or dues, or either of them. 
 
 Funds Not Liable to Attachment. 
 
 Section 127. The money or other benefit, charity, relief or aid to 
 be paid, provided or rendered by any association authorized to do 
 business under this act, shall not be liable to attachment by trustee, 
 garnishee or other process, and shall not be seized, taken, appropri- 
 ated or applied by any legal or equitable process, or by operation 
 of law, to pay any debt or liability of a certificate holder or of any 
 beneficiary named in a certificate, or any person who may have any 
 rights thereunder. 
 
 Showing Required — Foreign Companies. 
 
 Section 128. No associatinn ii<it .Tdmitted to transact business
 
 THE a TATE OF WASHINGTON 987 
 
 within this State prioi' to tlie passage of this aet shall be incorpo- 
 rated or given a permit or certificate of authority to transact business 
 within this State, as provided for by this act, unless it shall first 
 show that the mortuary assessment rates, provided for in whatever 
 plan of business it has adopted, are not lower than is indicated as 
 necessary by the following mortality table: 
 
 ■ FRATERNAL CONGRESS MORTALITY TABLE. 
 
 Probability of Dying. 
 .U05U00 
 .005035 
 .005071 
 .005107 
 .005153 
 .005201 
 .005259 
 .005318 
 .005388 
 .005469 
 .005552 
 .005647 
 .005753 
 .005872 
 .006004 
 .006149 
 .006307 
 .006490 
 .006698 
 .006921 
 .007171 
 .007448 
 .007766 
 .008113 
 .008480 
 .008867 
 .009287 
 .009754 
 
 Age. 
 
 No. Living. 
 
 No. Dying 
 
 20 
 
 100,000 
 
 500 
 
 21 
 
 99,500 
 
 501 
 
 22 
 
 98,999 
 
 502 
 
 23 
 
 . 98,497 
 
 503 
 
 24 
 
 97,994 
 
 505 
 
 25 
 
 97,489 
 
 507 
 
 26 
 
 96,982 
 
 510 
 
 27 
 
 96,472 
 
 513 
 
 28 
 
 95,959 
 
 517 
 
 29 
 
 95,442 
 
 522 
 
 30 
 
 94,920 
 
 527 
 
 31 
 
 94,393 
 
 533 
 
 32 
 
 93,860 
 
 540 
 
 33 
 
 93,320 
 
 548 
 
 34 
 
 92,772 
 
 557 
 
 35 
 
 92,215 
 
 567 
 
 36 
 
 91,648 
 
 578 
 
 37 
 
 91,070 
 
 591 
 
 38 
 
 90,479 
 
 606 
 
 39 
 
 89,873 
 
 622 
 
 40 
 
 89,251 
 
 640 
 
 41 
 
 88.611 
 
 660 
 
 42 
 
 87,951 
 
 683 
 
 43 
 
 87,268 
 
 708 
 
 44 
 
 86,560 
 
 734 
 
 45 . 
 
 85,826 
 
 761 
 
 46 
 
 85,665 
 
 790 
 
 47 
 
 84,275 
 
 822
 
 988 FRATERNAL SOCIETY LAW 
 
 ^ge. 
 
 No. Living. 
 
 No. Dying. I 
 
 Probability of 
 
 48 
 
 83,453 
 
 857 
 
 .0102693 
 
 49 
 
 82,596 
 
 894 
 
 .0108238 
 
 50 
 
 81,702 
 
 935 
 
 .0114440 
 
 51 
 
 80,767 
 
 980 
 
 .0121337 
 
 52 
 
 79,786 
 
 1,029 
 
 .0128970- 
 
 53 
 
 78,757 
 
 1,083 
 
 .0137511 
 
 54 
 
 77,674 
 
 1,140 
 
 .0146767 
 
 55 
 
 76,534 
 
 1,202 
 
 .0157054 
 
 56 
 
 75,332 
 
 1,270 
 
 .0168587 
 
 57 
 
 74,062 
 
 1,342 
 
 .0181200 
 
 58 
 
 72,720 
 
 1,418 
 
 .0194994 
 
 59 
 
 71,302 
 
 1,501 
 
 .0210513 
 
 60 
 
 69,801 
 
 1,588 
 
 .0227504 
 
 61 
 
 68,213 
 
 1,681 
 
 .0246434 
 
 62 
 
 66,532 
 
 1,778 
 
 .0267240 
 
 63 
 
 64,754 
 
 1,880 
 
 .0290330 
 
 64 
 
 62,874 
 
 1.985 
 
 .0315711 
 
 65 
 
 60.889 
 
 2,094 
 
 .0343904 
 
 66 
 
 58,795 
 
 2,206 
 
 .0375206 
 
 67 
 
 56,589 
 
 2,318 
 
 .0409620 
 
 68 
 
 54,271 
 
 2,430 
 
 .0447753 
 
 69 
 
 51,841 
 
 2,539 
 
 .0489767 
 
 70 
 
 49,302 
 
 2,645 
 
 .0536489 
 
 71 
 
 46,657 
 
 2,744 
 
 .0588122 
 
 72 
 
 43,913 
 
 2,832 
 
 .0644912 
 
 73 
 
 41,081 
 
 2,909 
 
 .0708113 
 
 74 
 
 38,172 
 
 2,969 
 
 .0777795 
 
 75 
 
 35,203 
 
 3,009 
 
 .0854751 
 
 76 
 
 32,194 
 
 3,026 
 
 .0939927 
 
 77 
 
 29,168 
 
 3,016 
 
 .1034010 
 
 78 
 
 26,152 
 
 2,977 
 
 .1138345 
 
 79 
 
 23,175 
 
 2,905 
 
 .1253506 
 
 80 
 
 20,270 
 
 2,799 
 
 .1385163 
 
 81 
 
 17,471 
 
 2,659 
 
 .1521951 
 
 82 
 
 14,812 
 
 2,485 
 
 .1677694 
 
 83 
 
 12,327 
 
 2,280 
 
 .1849599
 
 THE HTATE OF WASHINGTON 9y9 
 
 Age. No. Living. No. Dying. Probability of Dying. 
 
 84 10,047 2,050 .1855707 
 
 85 7,997 1,800 .2250844 
 
 86 6,197 1,53'J .2483460 
 
 87 4,658 1,227 .2741520 
 
 88 3,381 1,023 .3025732 
 
 89 2,358 788 .3341815 
 
 90 1,570 579 .3687898 
 
 91 991 404 .4076690 
 
 92 587 264 .4497445 
 
 93 323 161 .4984520 
 
 94 162 89 .5493827 
 
 95 73 44 .6027397 
 
 96 29 19 .6551724 
 
 97 10 7 .7000000 
 
 98 3 3 1.0000000 
 
 Meetings in Other States. 
 
 Section 129. Aiiy such association, organized under the laws of 
 this State, may provide for the meetings of its legislative or govern- 
 ing body in any other State, province or territory, wherein such asso- 
 ciation shall have subordinate bodies, and all business transacted at 
 such meeting shall be valid in all respects, as if such meetings were 
 held within the State, and where the laws of anj'^ such association 
 provide for the election of its officers by votes to be cast in its sub- 
 ordinate bodies, the votes so cast in its subordinate bodies in any 
 other State, province or territory, shall be valid as if cast within 
 this State. 
 
 False or Fraudulent Statements — Penalty. 
 
 Section 130. Any person, officer, member or examining physician 
 who shall knowingly or wilfully make any false or fraudulent state- 
 ment or representation in or with reference to any application for 
 membership, or for the purpose of obtaining any money or benefit in 
 any association transacting business under this act, shall be guilty 
 of a misdemeanor, and upon conviction shall be punished by a fine
 
 990 FRATERNAL SOCIETY LAW 
 
 of not less than $100, nor more than $500, or imprisonment in the 
 county jail for not less than thirty days nor more than one year, or 
 both, in the discretion of the court; and any person who shall wil- 
 fully make a false statement of any material fact or thing in a 
 sworn statement as to the death or disability of a certificate holder 
 in any such association for the purpose of procuring payment of a 
 benefit named in the certificate of such holder, and any person who 
 shall wilfully make any false statement in any verified report or 
 declaration under oath required or authorized by this act, shall be 
 guilty of per j my, and shall be pi'oceeded against and punished as 
 provided by the statutes of this State in relation to the crime of 
 perjury. 
 
 Neglect to Report — Injunction — ^Penalty. 
 
 Section 131. Any such association refusing or neglecting to make 
 the report, as provided in this act, shall be excluded from doing 
 business within this State. Said Commissioner of Insurance must 
 within twenty days after failure to make such report, or in ease 
 any such association shall exceed its powers or shall conduct its 
 business fraudulently, or shall fail to comply with any of the pro- 
 visions of this act, give notice in writing to the Attorney General, 
 who shall immediately commence an action against any such asso- 
 ciation to enjoin the same from carrying on any business. And no 
 injiuiction against any such association shall be granted by any 
 court, except on application by the Attorney General, at the request 
 of the Commissioner of Insurance, whether the State or a member 
 or other party seeks relief. No association so enjoined shall have 
 authority to continue business until such report shall be made, or 
 overt act or violations complained of shall have been corrected, nor 
 until the cost of such action be paid by it, provided the court shall 
 find that such association was in default, as charged, whereupon 
 the Commissioner of Insurance shall reinstate such association, and 
 not until then shall such association be allowed to again do business 
 in this State. Any officer, agent or person, acting for any associa- 
 tion or s\ibordinate body thereof, within this State, while such asso- 
 ciation shall be so enjoined or prohibited from doing business pur- 
 suant to this act, shall bo doomed guilty of n misdemeanor, and on
 
 THE STATE OF WASHINGTON 991 
 
 conviction thereof, shall bo punished by a fine not less than $25 nor 
 more than $1200, or by imprisonment in the county jail for not less 
 than thirty days nor more than one yeai", or both such tine ;nid im- 
 prisonment, in the discretion of the eourt. 
 
 Acting for Companies Failing to Comply. 
 
 Section 132. Any person who shall act within this State as an 
 officer, agent, or otherwise, for any association which shall have 
 failed, neglected or refused to comply with, or shall have violated 
 any of the provisions of this act, or shall have failed or neglected 
 to procure from the Commissioner of Insurance proper certificate of 
 authority to transact business, as provided for by this act, shall be 
 subject to the penalty provided in the last preceding section for the 
 misdemeanor therein specified. 
 
 Act Does Not Apply to Certain Societies. 
 
 Section 133. Nothing contained in this act shall be construed to 
 affect the Independent Order of Odd Fellows as they now exist nor 
 any grand, subordinate lodge or other body of Free and Aceejited 
 Masons, nor the grand, nor any subordinate lodge of the Knights 
 of Pythias, exclusive of the Endowment Rank, nor any association 
 not working on the lodge system which limits its cei'tificate holders 
 to a particular class or to the employment of a particular town or 
 city, designated firm, business house or corporation. 
 
 Waivers, Provision Against Not Called to Applicant's Attention. 
 
 A provision in an insurance contract that none of its terms can be 
 modified nor any forfeiture under it waive save by an agreement in 
 writing signed by the president or secretary of the company, is held 
 not binding or effective whec the assured had no knowledge of it, 
 never assented to it, and was not informed that the contract applied 
 for would contain such a provision. 
 
 Cole vs. Union Central Life Ins. Co., Jan., 1900, 22 Wash. 26. 
 
 I
 
 992 FRATERNAL SOCIETY LAW 
 
 Limitations, Statutes as to Time to Institute Suit, Valid. 
 
 The provisions of a contract requiring suit to be commenced 
 within one year from the death of the insured, is valid. 
 
 Hall vs. Union Central Life Ins. Co., Dec, 1900, 23 Wash. 610. 
 
 Vested Interest, None Under Certificate. 
 
 The fact that a member obtains a certificate in which his wife is 
 named as beneficiar^y, turned same over to her with the intent that 
 it should be hers, and makes payments thereunder with community 
 funds belonging to himself and wife, will not give the wife such 
 a vested interest therein as to deprive the husband of the power of 
 substituting another beneficiary. 
 
 Cade vs. Head Camp, Woodmen of the World, Jan., 1902, 27 Wash. 218. 
 
 Beneficiaries, Rules for Changing May be Waived. 
 
 The provisions of the laws of a society with respect to the mode 
 of procedure in which members change their beneficiaries are for 
 the protection of the society and may be waived by it. and the 
 beneficiaries named in certificates subsequently siu-rendered while 
 new ones are issued cannot complain of the action of the society in 
 waiving regulations with respect to the surrender of the old 
 certificates. 
 
 Cade vs. Head Camp. Woodmen of the World, Jan., 1902, 27 Wash. 218. 
 
 Privileged Testimony of Physician. 
 
 The testimony of a physician as to the physical condition of a 
 patient treated by him, is properly excluded as privileged where 
 the exclusion extends only to disclosures while the professional 
 relation existed. 
 
 Dubcich vs. Grand Lodge. A. 0. U. W.. Dec, 1903, 33 Wash. 651; 74 
 Pac. 832.
 
 THE kiTATE OF WASHINGTON 993 
 
 Expulsion of Insane Member. 
 
 A society acquires no jurisdiction to expel a member on the ground 
 of fraud practiced upon it in tho member's application, where, at 
 the time of mailing the notice of the hearing upon which the trial 
 for expulsion was predicated, the meml)er is insane and in a hos- 
 pital, incapable of being present, unless it clearly and unmistakably 
 appears that the laws of the society authorized such procedure. 
 
 Dubcich vs. Grand Lodge, A. 0. U. W., Dec, 1903, 33 Wash. 651; 74 
 Pac. 832. 
 
 Insane Member, Trial of, Etc. 
 
 In an action on a certificate where the society relies upon an 
 expulsion which is entered against the deceased member while 
 insane and without jurisdiction, and his death occurs before he can 
 make an appeal, and the beneficiary has no right of appeal, an 
 action in the courts is maintainable l)y the beneficiary. 
 
 Dubcich vs. Grand Lodge, A. 0. U. W., Dec, 1903, 33 Wash. 651; 74 
 Pac. S32. 
 
 Forfeiture — Application of Advance Payments. 
 
 A defense of forfeiture for non-payment of dues cannot be made 
 as long as the societ\' has sufficient funds of the member in its 
 possession and which it is its duty to apply to the payment of 
 assessments levied upon the member. 
 
 Logsdon vs. Supreme Lodge, Fraternal Union of America. April. 1904, 
 34 Wash. 666; 76 Pac. 292. 
 
 The N. F. C. Table of Mortality Approved. 
 
 The act of 1901 regulating fraternal societies by fixing a rate for 
 assessments not lower than is indicated to be necessary by the 
 National Fraternal Congress Mortality Table, is not objectionable 
 as vague and uncertain, nor because the same belongs to the domain 
 of evidence and ought to be subject to impeachment, since it is 
 63
 
 994 FRATERNAL SOCIETY LAW 
 
 competent for the legislature to determine the rate by adopting such 
 tables and incorporating them in the law. 
 
 State vs. Fraternal Knights and Ladies, July, 1904, 35 Wash. 338; 
 77 Pac. 500. 
 
 Constitutionality of Laws Classifying Societies, Valid. 
 
 The provisions of the act of 1901 regulating new corporations to be 
 thereafter authorized to do business in the State, making them a 
 class under themselves, held constitutional. 
 
 State vs. Fraternal Knights and Ladies, July, 1904, 35 Wash. 338; 
 77 Pac. 500. 
 
 Suicide, by Insane Member, Rule as to. 
 
 In an action on a certificate which jjrovided that there should be 
 no liability in the event of the member's death by suicide, and 
 where it is claimed that the suicide was due to the member's in- 
 sanity, it is proper to instruct the jury that there is no liability if 
 the deceased was in the possession of his ordinary faculties, but that 
 liability does attach if the suicide, although intentional, was 
 committed while the reasoning faculties of the member were so far 
 impaired that he could not understand the character and effect of 
 the act, or if he was impelled thereto by an insane impulse which 
 he could not resist. 
 
 Knapp vs. Order of Pendo, Jan., 1905, 36 Wash. 601; 79 Pac. 209. 
 
 Proofs of Loss, False Statements in. 
 
 False swearing in proofs of loss, in order to void liability upon 
 the contract, must relate to material matters. 
 
 Herzog vs. Palatine Ins. Co., Jan., 1905, 36 Wash. 611; 79 Pac. 287. 
 
 Agency — Stipulations Against. 
 
 A provision in n fire iiisiir;nice policy to the effect that no person, 
 
 I
 
 THE STATE OF WASHINGTON 996 
 
 unless authorized in writing, shall be deemed the agent of the com- 
 pany, does not make a solicitor the agc^nt of the insured, but he is 
 the agent of the company, and his knowledge of matters material 
 to the risk becomes the knowledge of tlu^ company. 
 
 Foster vs. Pioneer Mutual Ins. Assn., March, 1905, 37 Wash. 288; 
 79 Pac. 798. 
 
 Agency — Proofs of Loss. 
 
 The acts of the secretary of an insurance company in resisting 
 payment and refusing to treat with the insured solely on the ground 
 that notice of loss was not given within the time limited, held to be 
 the acts of the company, and that the company is estopped to set 
 up the defense that pi'oofs of loss were not fui'nished within the 
 time required after giving the notice. 
 
 Moore vs. National Accident Society, March, 1905, 38 Wash. 31; 80 
 Pac. 171. 
 
 Foreign Society, Service Upon. 
 
 The statute requiring foreign societies to appoint the State in- 
 surance commissioner its attorney in fact, upon whom service of 
 process may be made with the same legal effect as if made upon 
 the society, held not to authorize the commissioner to admit or waive 
 service where no legal service has in fact been made, nor the deputy 
 insurance commissioner to receive service, as the power is derived 
 from the appointment and does not pertain to the ofSce. And it is 
 further held that in such ease a service upon the statutory appointee 
 by mail is insufficient. 
 
 Bennett vs. Suprems Tent, Knights of the Maccabees, Oct., 1905, 40 
 Wash. 431; 82 Pac. 744. 
 
 Expulsion, When Reviewable by Courts. 
 
 The expulsion of a member will not be reviewed except to ascer- 
 tain whether the proceedings were regular, in good faith, and not 
 in violation of the laws of the land.
 
 996 FRATERNAL SOCIETY LAW 
 
 Kelly vs. Grand Circle. Women of Woodcraft, Dec, 1905, 40 Wash. 
 691; 82 Pac. 1007. 
 
 Charges as Basis for Trial and Expulsion. 
 
 Charges of a general nature which are preferred against a member 
 accusing the member of threats to wrongfully use the funds of the 
 society and of slandering other members and officers, are sufficient 
 to sustain an order of expulsion from the society, where the mem- 
 ber did not point out where the charges should be made more 
 specific. 
 
 Kelly vs. Grand Circle, Women of Woodcraft, Dec, 1905, 40 Wash. 
 691; 82 Pac. 1007. 
 
 Application in Conflict with Receipt. 
 
 Where an application for insurance upon a printed form conflicts 
 with the statements in the written receipt, the latter controls. 
 
 Starr vs. Mutual Life Ins. Co., Dec, 1905, 41 Wash. 228; S3 Pac. 116. 
 
 Dependency, Rule as to Evidence of. 
 
 Under the statutes of the State and the laws of a society author- 
 izing the payment of benefits to persons dependent upon the de- 
 ceased, only slight evidence of dependency is necessary where the 
 certificate names the beneficiary as a dependent and all the statutes 
 and by-laws have been complied with. 
 
 Erickson vs. Modern Woodmen of America, July, 1906, 43 Wash. 
 242; 86 Pac. 584. 
 
 Warranty — What Evidence Competent Under. 
 
 In an action upon a benefit certificate which is defended by the 
 society on the ground that the deceased had made false repi'esenta- 
 tions to the .society in his application for membership, the society 
 is not a party defending as executor or legal representative of or 
 deriving title from the member, Avithin the meaning of the statute
 
 THE STATE OF WASHINGTON 997 
 
 prohibiting evidence of a party as to transactions had with the 
 deceased. 
 
 Erickson vs. Modern Woodmen of America, July, 1906, 43 Wash. 
 242; 86 Pac. 584. 
 
 Forfeiture — Insane Member Required to Pay Assessments. 
 
 The insanity of a member is no excuse for his non-payment of the 
 dues and assessments required under the terms of the contract. 
 
 Sheridan vs. Modern Woodmen of America, Supreme Ct. Wash., Oct., 
 190(;, S7 Pac. 127. 
 
 Agency — Provision Against Waivers. 
 
 The laws of a societ.y provided that no oiBcer of any local camp 
 was authorized to waive any of the provisions of the laws, declared 
 the clerk of the camp to be the agent of the camp, and provided 
 that no act on his part should have the effect of creating a liability 
 against the society. The.y also provided for tlie giving of notice of 
 assessments, and that a failure to pay any assessment should, ipso 
 facto, work a forfeiture. After a member became insane, the mother 
 of his minor child, who was the beneficiary, obtained an agreement 
 from the clerk of the local camp, that he would notifv her of assess- 
 ments. It was held that such an agreement was not binding on the 
 society, and that it might rel.y on a forfeiture, though the clerk failed 
 to give the notice. 
 
 Sheridan vs. Modern Woodmen of America, Supreme Ct. Wash., Oct., 
 1906, 87 Pac. 127. 
 
 Beneficiary — Right to Change. 
 
 The beneficiary named in the certificate of a member has no vested 
 right in the certificate, and the member ma,y change the beneficiary 
 at will. 
 
 Bernheim vs. Martin, Supreme Ct. Wash., Dec. 1906, 88 Pac. 106.
 
 998 FRATERNAL SOCIETY LAW 
 
 Agency — Fraud Between Agent and Applicant. 
 
 An exception to the general rule that notice to an agent is notice 
 to his principal, arose where the agent and plaintiff conspired to 
 obtain insurance for the plaintiff by stating the plaintiff's age in 
 his application to be five years less than it really was, since the 
 plaintiff", knowing the agent was acting in his own interest, had no 
 right to assume he would comniuuieate the plaintiff's true age to 
 his principal. 
 
 Elliott vs. Knights of the Modern Maccabees, Supreme Ct. Wash., 
 April, 1907, 89 Pac. 929. 
 
 Age — False Statement as to. 
 
 An applicant stated that he was fifty years old, whereas he was 
 fifty-five years of age, as he knew, and for that reason he was in- 
 eligible to membership, the certificate was void, and all payments 
 made thereunder were forfeited, he having in his application de- 
 clared all his answers to be fair and true and agreed that they should 
 form the basis of his contract. It was held that the statement as to 
 his age being material, it was immaterial whether it was to be re- 
 garded as a warranty or as a representation. 
 
 Elliott vs. Knights of the Modern Maccabees, Supreme Ct. Wash., 
 April, 1907, 89 Pac. 929. 
 
 Agency — Waivers by Course of Dealing With Members. 
 
 Where an insurance company, bj'' a course of dealing with refer- 
 ence to collecting payments, does such acts as would lead an ordi- 
 narily prudent person to understand and believe that the company 
 would not insist upon strict adherence to the terms of the contract 
 as to the time when payments should be made, but would accept 
 payments at any time during the, month for which they were due, 
 it was held that the company had waived its right to insist on for- 
 feiture of the contract for non-payment of premiums due on the 
 first of the month. 
 
 Morgan vs. Northwestern National Life Ins. Co., February. 1906, 42 
 Wash. 10; 84 Pac. 412.
 
 THE STATE OF WASHINGTON 999 
 
 Evidence by Non-Medical Expert Not Competent. 
 
 A non-medical expert witness may not in an action on a certifi- 
 cate answer a question as to whether he saw any conduct on the part 
 of the member that would indicate to the witness that the member 
 had a certain disease, it being an opinion which only an expert was 
 competent to give. 
 
 Taylor vs. Modern Woodmen of America. March, 1906, 42 Wash. 304; 
 84 Pac. 867. 
 
 Evidence, Secondary not Allowed to Explain or Waive Medical 
 Examination. 
 
 The writing in which is given the examination made by the local 
 examiner for a society, of an applicant for membership, is the best 
 evidence of the disclosures then made. 
 
 Taylor vs. Modern Woodmen of America, March, 1906, 42 Wash. 304; 
 84 Pac. 867.
 
 1000 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF WEST VIRGESTA. 
 
 CHAPTER 49. 
 
 There are no statutory provisions of the West Virginia law ap- 
 plicable to Fraternal Societies. It is also quite remarkable that there 
 are so few insurance cases that appear in the court reports of the 
 State. Such as have been found, which seem to have to do with 
 fraternal society questions, however remotely, are contained herein 
 by reference. 
 
 Evidence as to Contract, Parol Agreements Not Competent. 
 
 Where parties have made a written agreement, the writing 
 is regarded as the exclusive evidence of contract, and all oral nego- 
 tiations and stipulations preceding or accompanying the execiition of 
 the written agreement are merged in it and are not admissible in 
 evidence to contradict the written agreement. 
 
 Providence Washington Insurance Company vs. Board of Education, 
 March, 1901, 49 W. Va. 360. 
 
 Privileged Communications of Physician. 
 
 The law governing the relation of physician and i)atient does not 
 applj' where, under an insurance contract which jjrovides that "any 
 medical adviser of the company shall be allowed to examine the 
 person or body of the insured in respect to an injury or cause of 
 death in such manner and at sucli times as he may require," an ex-
 
 THE STATE OF WEST VIRGINIA 1001 
 
 amiuer for the company makes examination of an insured person 
 holding a contract of insurance containino' said pi-ovision. 
 
 Tompkins vs. Pacific Mut. Lite Ins. Co., May, 1903, 53 W. Va. 479. 
 
 Agency of Local Official. 
 
 An insurance company establishing a local agency is responsible 
 to the parties with whom the agent transacts l)usiness, for his acts 
 and declarations within the scope of his employment, and to the ex- 
 tent of the authority apparently conferred upon him by the company, 
 and the limitation upon such apparent authority not communicated 
 to the insured before he acted upon the representations or conduct 
 of the agent will not relieve the company from liability, vinless 
 after discovery of the want of authority in the agent the insured 
 has precluded himself from the assertion of his rights by laches. 
 
 Medley vs. German Alliance Ins. Co., March, 1904, 55 W. Va. 342. 
 
 Agency — Contract — Equitable Estoppel. 
 
 A ^contract in writing is presumed to be the embodiment of an 
 antecedent verbal agreement, and upon clear and full proof that the 
 person who understood the preparation of it has by mistake or fraud 
 written the contract different from what it was as made by the 
 parties, it may be reformed in equity ; and where such departure 
 occurs in a contract of insurance prepared by an agent of the com- 
 pany, it raises an equitable estoppel against the company which may 
 be effectually asserted by the insured in a court of law, unless he 
 had notice of want of authority in the agent to waive the conditions 
 at all or except in a specific manner. 
 
 Medley vs. German Alliance Ins. Co.. March, 1904, 55 W. Va. 342. 
 
 Agency Extent of Power. 
 
 Restrictions inserted in a contract of insurance upon the power 
 of an agent to waive any conditions except in a particular manner,
 
 1002 FRATERNAL SOCIETY LAW 
 
 as by endorsing the waiver ou the contract, do not apply to those 
 conditions which relate to the inception of the contract. 
 
 Medley vs. German Alliance Ins. Co., March, 1904, 55 W. Va. 342. 
 
 Proofs of Loss Waived by Denial of Liability. 
 
 Denial by an insurance company of its liability on other grounds 
 within the time allowed for furnishing preliminary proofs of loss, is 
 in law a waiver of the conditions of the contract requiring svich 
 proofs. 
 
 Medley vs. German Alliance Ins. Co., March, 1904, 55 W. Va. 342. 
 
 Proofs of Loss — False Affidavits. 
 
 When by the provisions of the contract it shall be void in case 
 of fraud or false swearing by the insured touching any matter re- 
 lating to the insurance or the subject thereof, false swearing, in 
 order to defeat recovery, must be intentional and done for the 
 purpose of defrauding the insurer. 
 
 Medley vs. German Alliance Ins. Co., March, 1904, 55 W. Va. 342. 
 
 Forfeiture — No Waiver by Holding Members Payment. 
 
 Forfeiture for breach of a promissory warranty is not waived by 
 the retention of the premium after notice thereof. 
 
 Medley vs. German Alliance Ins. Co., March, 1904, 55 W. Va. 342. 
 
 Contract, Situs of, Rule as to. 
 
 Where an application is sent by an applicant or his agent from 
 one state to an insurance companj' in another, and it is accepted 
 and a contract of insurance there issued, it is a contract of the 
 State where issued; and where the contract provides that it shall 
 not be valid until coiuitersigned by its agent at a certain place, it 
 is a contract of the State where so countersigned. 
 
 Galloway vs. Standard Fire Ins. Co., Nov.. 1898, 45 W. Va. 237.
 
 THE STATE OF WISCONSIN 1003 
 
 THE 
 
 STATE OF WISCONSIN. 
 
 CHAPTER 50. 
 
 [1'he section numbers employed cori-espond to those in the 
 slatutes.] 
 
 Conditions for Organization of Mutual Beneficiary and Fraternal 
 Corporations, Societies, Orders and Associations. 
 
 Section 1955a. 1. No fraternal or beneficiary corporation, society, 
 order or association for the relief of members or beneficiaries or 
 making life or casualty insurance or indemnity upon the mutual or 
 assessment plan shall be incorporated until after a declaration 
 signed by each of the incorporators, who shall be residents and 
 citizens of this State, not less than nine in number, shall have 
 made in writing and sworn to by them, and filed in the office of 
 the commissioner of insurance, setting forth that at least five hun- 
 dred persons have made application in writing for membersliip in 
 such proposed corporation, and in case of a life company have each 
 been examined and recommended as insurable by a reputable physi- 
 cian, and who shall have deposited five dollars each, one thousand 
 dollars of which sum shall be pledged for the payment of death 
 losses. And the table-rates of assessment or liability of each person 
 so pledged for membership shall be such that one assessment will 
 realize at least one thousand dollars for a single death loss, over and 
 above all sums required for expenses, reserves, emergencies or other 
 purposes. 
 
 2. No fraternal beneficiary order or society not licensed to trans- 
 act business in this State at the time of the passage of this act
 
 1004 
 
 FRATERNAL SOCIETY LAW 
 
 shall be incorporated within this State or be licensed or permitted 
 to transact business within this State, unless its laws require the 
 regular payment and collection of rates of assessments under what- 
 soever plan of business it has adopted not lower than those deduced 
 from the National Fraternal Congress Mortality Table computed 
 upon an interest assumption of four per cent., which said mortality 
 table is as follows: 
 
 National Fraternal Congress Mortality Table. 
 
 No. Dying. Probability of Dying. 
 
 Age. 
 
 No. Living 
 
 20 
 
 100,000 
 
 21 
 
 99,500 
 
 22 
 
 98,999 
 
 23 
 
 98,497 
 
 24 
 
 97,994 
 
 25 
 
 97,489 
 
 26 
 
 96,982 
 
 27 
 
 96,472 
 
 28 
 
 95,959 
 
 29 
 
 95,442 
 
 30 
 
 94,920 
 
 31 
 
 94,393 
 
 32 
 
 93,860 
 
 33 
 
 93,320 
 
 34 
 
 92,772 
 
 35 
 
 92,215 
 
 36 
 
 91,648 
 
 37 
 
 91,070 
 
 38 
 
 90,479 
 
 39 
 
 89,873 
 
 40 
 
 89,251 
 
 41 
 
 88,611 
 
 42 
 
 87,951 
 
 43 
 
 87,268 
 
 44 
 
 86,560 
 
 45 
 
 85,826 
 
 .500 
 501 
 502 
 503 
 505 
 507 
 510 
 513 
 517 
 522 
 527 
 533 
 540 
 548 
 557 
 567 
 578 
 591 
 606 
 622 
 640 
 660 
 683 
 708 
 734 
 761 
 
 .0050000 
 .0050352 
 .0050708 
 .0051068 
 .0051535 
 .0052006 
 .0052587 
 .0053176 
 .0053877 
 .0054693 
 .0055520 
 .0056466 
 .0057532 
 .0058723 
 .0060040 
 .0061487 
 .0063067 
 .0064895 
 .0066977 
 .0069209 
 .0071708 
 .0074483 
 .0077657 
 .0081129 
 .0084797 
 .0088668 
 
 1;
 
 THE STATE OF WISCONSIN 1005 
 
 Probability of Dying. 
 .0092870 
 .0097538 
 .0102693 
 .0108238 
 .0114440 
 .0121460 
 .0128970 
 .0137512 
 .0146767 
 .0157054 
 .0168587 
 .0181200 
 .0194994 
 .0210513 
 .0227504 
 .0246434 
 .0267240 
 .0290330 
 .0315711 
 .0343904 
 .0375202 
 .0409620 
 .0447753 
 .0489767 
 .0536489 
 .0588122 
 .0644912 
 .0708113 
 .0777795 
 .0854757 
 .0939927 
 .1034010 
 .1138345 
 .1253506 
 .1380858 
 .1521951 
 
 Age. 
 
 No. Living. 
 
 No. Dying 
 
 46 
 
 85,065 
 
 790 
 
 47 
 
 84,275 
 
 822 
 
 48 
 
 83,453 
 
 857 
 
 49 
 
 82,596 
 
 894 
 
 50 
 
 81,702 
 
 935 
 
 51 
 
 80,767 
 
 981 
 
 52 
 
 79,786 
 
 1,029 
 
 53 
 
 78,757 
 
 1,083 
 
 54 
 
 77,674 
 
 1,140 
 
 55 
 
 76,534- 
 
 1,202 
 
 56 
 
 75,332 
 
 1,270 
 
 57 
 
 74,062 
 
 1,342 
 
 58 
 
 72,720 
 
 1,418 
 
 59 
 
 71,302 
 
 1.501 
 
 60 
 
 69,801 
 
 1,588 
 
 61 
 
 68,213 
 
 1,681 
 
 62 
 
 66,532 
 
 1,778 
 
 63 
 
 64,754 
 
 1,880 
 
 64 
 
 62,874 
 
 1,985 
 
 65 
 
 60,889 
 
 2,094 
 
 66 
 
 58,795 
 
 2,206 
 
 67 
 
 56,589 
 
 2,318 
 
 68 
 
 54,271 
 
 2,430 
 
 69 
 
 51,841 
 
 2,539 
 
 70 
 
 49,302 
 
 2,645 
 
 71 
 
 46,657 
 
 2,744 
 
 72 
 
 43,913 
 
 2,832 
 
 73 
 
 41,081 
 
 2,909 
 
 74 
 
 38,172 
 
 2,969 
 
 75 
 
 35,203 
 
 3,009 
 
 76 
 
 32,194 
 
 3,026 
 
 77 
 
 29,168 
 
 3,016 
 
 78 
 
 26,152 
 
 2,977 
 
 79 
 
 23,175 
 
 2,905 
 
 80 
 
 20,270 
 
 2,799 
 
 81 
 
 17,471 
 
 2,659
 
 1006 FRATERXfAL SOCIETY LAW 
 
 ^ge. 
 
 No. Living. 
 
 No. Dying. 
 
 Probability o 
 
 82 
 
 14,812 
 
 2,485 
 
 .1677694 
 
 83 
 
 12,327 
 
 2,280 
 
 .1849599 
 
 84 
 
 10,047 
 
 2,050 
 
 .2040410 
 
 85 
 
 7,997 
 
 1,800 
 
 .2250844 
 
 86 
 
 6,197 
 
 1,539 
 
 .2483460 
 
 87 
 
 4,658 
 
 1,277 
 
 .2741520 
 
 88 
 
 3,381 
 
 1,023 
 
 .3025732 
 
 89 
 
 2,358 
 
 788 
 
 .3341815 
 
 90 
 
 1,570 
 
 579 
 
 .3687898 
 
 91 
 
 991 
 
 404 • 
 
 .4076690 
 
 92 
 
 587 
 
 264 
 
 .4497445 
 
 93 
 
 323 
 
 161 
 
 .4984520 
 
 94 
 
 162 
 
 89 
 
 .5493827 
 
 95 
 
 73 
 
 44 
 
 .6027397 
 
 96 
 
 29 
 
 19 
 
 .6551724 
 
 97 
 
 10 
 
 7 
 
 .7000000 
 
 98 
 
 3 
 
 3 
 
 1.0000000 
 
 The payment of any disability benefits promised or rendered by 
 any such society or order hereafter organized or admitted to this 
 State that are not provided for in the rates deduced from said table 
 of mortality as is herein required must be amply provided for in 
 addition to the rates of assessments as herein required. 
 
 3. lu case of an accideut association before license is issued it 
 shall deposit with the State treasurer a security for the payment 
 of claims against said corporation in case of voluntary dissolution 
 or the winding up of its affairs, good, interest bearing securities 
 to be approved by the commissioner of insurance in the amount in 
 par value, exclusive of interest, of not less than one thousand dol- 
 lars; such securities shall be retained by the State Treasurer so 
 long as said corporation shall continue to do bu.siness. Provided, 
 That said corporation may at any time upon the approval of the 
 commissioner of insurance, substitute other securities of equal value; 
 the interest on said securities shall be payable to the said corpora- 
 tion, and in case of the dissolution of said corporation or the winding 
 up of its affairs, the said securities shall be delivered to the duly ap- 
 
 i
 
 THE STATE OF WISCONSIN 1007 
 
 pointed receiver of the said corporation or to the corporation itself, 
 upon the certificate of the commissioner of insurance. 
 
 4. In ease of associations already organized and doing business 
 under the provisions of this act, the securities herein above pro- 
 vided for, shall be deposited with the State treasurer in the same 
 manner, for the same purpose and to the same effect as above pro- 
 vided, on or before the first day of January, 1902. Provided, how- 
 ever. That when by the statute of any otlier State, mutual benefit 
 associations doing an accident or health business organized or doing 
 business therein, are required to keep on deposit with the State 
 treasurer or other State officer, securities for the protection of 
 policyholders generally and any such company shall furnish to the 
 commissioner of insurance of this State the certificate of the proper 
 officer of such other State, showing the amount and character of the 
 securities so deposited with him and it shall appear therefrom that 
 the said securities are equal in market value and availability to one 
 thousand dollars, and that said securities consist of stock or bonds 
 of the United States or of this State or of anv citv or county in this 
 State authorized bj' act of legislature to issue the same or of State, 
 county or city bonds or of stocks of the State where such company 
 or association is organized or of bonds and mortgages on improved 
 real estate, worth double the sum loaned thereon, and it shall fur- 
 ther appear from the laws of such other Staie that the securities 
 so deposited are subject to be made available to satisfy judgments 
 of policyholders in any manner corresponding to that provided for 
 the care of securities deposited under this act, the commissioner of 
 insurance shall thereupon be authorized to issue to such company 
 an authority or license to transact the business of accident and 
 health insurance within this State, without any such deposit of 
 securities with the State treasurer of this State as is above provided. 
 
 Limit of Liability Not to Exceed One-tenth of Assets. 
 
 Section 1955a-l. (Sec. 1, eh. 56, 1903). No casualty or accident 
 insurance company, association, society, order or corporation or- 
 ganized under Section 1955a of the Wisconsin statutes of 1898, as 
 amended by Chapter 442 of the laws of 1901 ; and no such company, 
 association, societj', order or corporation, now or at any time here-
 
 1008 FRATERNAL SOCIETY LAW 
 
 after transacting business within this State, shall assume a greater 
 liability in its contracts of insurance to any one person, payable in 
 case of death of the assured, than one-tenth of the amount of its 
 assets reported to the Commissioner of Insurance, and in actual 
 existence at the time of the last preceding annual report to the 
 said Commissioner of Insurance. 
 
 Filing Papers. 
 
 Section 1955b. No such articles shall be tiled with the Secretary 
 of State or recorded by any register of deeds until a copy thereof 
 and of the by-laws, blank application for and certificate of mem- 
 bership, plan of doing business and of the original applications for 
 and agreements to take membership have been deposited with the 
 Commissioner of Insurance and satisfactory evidence is produced to 
 him that the sum due from each applicant for membership has been 
 collected or duly pledged, and that a single assessment levied upon 
 each such applicant will realize one thousand dollars net, and shall 
 have received from said commissioner a certificate reciting that said 
 corporation, society, order or association has complied with the 
 provisions of law ; and thereupon may file such articles with the 
 Secretary of State and such society, order or association become 
 incorporated under Chapter 86 as a mutual beneficiary association. 
 A copy of such certificate of incorporation shall be filed with the 
 Commissioner of Insurance, together with a copy of its constitution 
 and by-laws, setting forth its plan of organization, and if approved 
 by him he shall issue a certificate authorizing said corporation, 
 society, order or association to engage in the business of insurance 
 on the assessment plan as set forth in said articles or constitution 
 and by-laws, and the said incorporators and those who may become 
 associated with them or their successors shall be entitled to trans- 
 act business in accordance with the provisions of law. 
 
 Beneficiary. 
 
 Section 1955c. Any member of such society, order or associa- 
 tion may mime as his benefieiMry any person or persons designated 
 bv the laws of such society, order or association, or if the laws
 
 THE STATE 'OF WISCONSIN 1009 
 
 thereof ])(>riiiit, his insurance may be made j)ayah]i' to his estate. 
 Any meml)er may chanjic the beneficiary named in his certificate or 
 policy without the consent of such beneficiary, by complying with 
 the by-laws of the society, order or association wliicli issued the 
 same. 
 
 Who May Not Be Insured — Reserve Fund. 
 
 Section 1955d. No corporation, society, order or association in- 
 suring lives on the assessment plan .shall be organized or licensed 
 to do business in this State if it permit persons to become members 
 who are under eighteen or above sixty-one years of age; and every 
 such organization, except casualty associations or societies, shall 
 accumulate and maintain a reserve or emergency fund of an amount 
 not less than the proceeds of one death or disability assessment or 
 periodical call on all policy or certificate holders thereof, and at 
 least equal to the amount of its maximum certificate or policy, and 
 in case such fund or any portion thereof shall have been used for 
 the purpose for which it was created and the amount thereof re- 
 duced to less than the proceeds of one such assessment or call the 
 amount of such reduction shall be made up and restored to said 
 fund within three months thereafter. If such fund is in excess of 
 double the proceeds of such assessment or call upon the entire 
 membership, the excess or any portion thereof may be used in re- 
 duction of assessments or calls ; Provided, That the provisions for 
 a reserve or emergency fund shall not apply to any such corpora- 
 tion heretofore licensed or organized in this State or to any fra- 
 ternal order or lodge heretofore authorized to do business herein. 
 
 Foreign, When May Do Business Here. 
 
 Section 1955e. No organization furnishing life or casualty in- 
 surance or indemnity upon the mutual or assessment plan, organ- 
 ized under the laws of any State or territory, the District of Co- 
 lumbia or any foreign country, nor any organization, whether in- 
 corporated or not, having its principal place of business outside this 
 State, shall transact business in this State until it have filed with 
 the Commissioner of Insurance an application for admission, upon a 
 64
 
 1010 FRATERNAL SOCIETY LAW 
 
 form prescribed by him, setting forth its membership, claims paid 
 and resources, together with a copy of its articles of incorporation, 
 of its constitution and by-laws, its application for membership, its 
 medical examination blank, if one be provided for, of its certificate 
 or policj' and of the literature used by it in soliciting business, a 
 certificate from the Commissioner of Insurance or other proper 
 officer of the State in which said organization is incorporated or 
 organized certifying that it is authorized to transact business in 
 such State ; that its business is honestly conducted, and that for a 
 period of two years prior to the date of such application it has paid 
 the face value of its largest certificate or policy in full with the col- 
 lections of an ordinary assessment, that its by-laws require, and 
 the laws of the State where incorporated or under which it exists 
 permits, the accumulation of a reserve or emergency fund equal in 
 amount of that prescribed by Section 1955d; Provided, That the 
 membei'ship of such corporation shall not have diminished during 
 the year in which such application is made or during the year next 
 preceding; Provided, further, That the provision requiring a 
 reserve or emergency fund shall not apply to a corporation which 
 is engaged in the business of casualty insurance and only pays 
 death losses caused by accident, if such corporation shall have ac- 
 cumulated and maintained a fund equal aud applicable to the pay- 
 ment of the face of its largest certificate or policy in force. 
 
 Investigation — Service of Process — Name — Deceptive Literature. 
 
 Section 1955f. The commissioner shall investigate the character 
 and standing of all such organizations applying for license, and 
 if approved by him, and if the conditions hereinbefore imposed have 
 been complied with, he shall notify it of his approval, whereupon 
 such organization shall appoint in writing the Commissioner of In- 
 surance or his successor in office to be its true and lawful attorney, 
 upon whom any summons, notice or process in any action or pro- 
 ceeding brought upon any cause of action or business or transaction 
 in this State may be served, and in such wi-iting sluill agree that 
 any such summons, notice or j)roeess against it which is served on 
 said attorney shall be of the same force and validity as if such
 
 THE STATE OF WISCONSIN 1011 
 
 service were made on a corporation of this State; and such authority 
 shall continue in force so long as there is any liability against it 
 in this State ; Provided, That no license to do business in this State 
 shall be issued to any such organization to whose country, State or 
 territory any Wisconsin corixiration, society, order or association, 
 doing business on the assessment plan, which has complied with the 
 requirements of the laws of this State, has been or would be re- 
 fused admission to do business on compliance with the laws thereof. 
 The commissioner shall also refuse license to do business to any 
 foreign organization whose name or title he shall deem too similar 
 to one already appropriated or likely to mislead the public. These 
 conditions having been complied with, he shall issue to each organ- 
 ization a license, after which it may transact business in this State ; 
 and said license shall continue in force until revoked pursuant to 
 law; Provided, That it shall l)e cause for refusing such license or 
 for revoking it if the literature used by the organization in solicit- 
 ing business is misleading in respect to the business done or in con- 
 flict with the law of this State. All such licenses shall expire on the 
 first day of March succeeding the date of their issue. 
 
 Annual Report. 
 
 Section 1955g. Every such organization authorized to do busi- 
 ness in this State shall, on or before the first day of March of each 
 year, make and file with the Commissioner of Insurance a report 
 of its affairs and its operations during the year ending on the pre- 
 ceding thirty-first day of December. Such report shall be upon 
 blank forms, to be provided by such commissioner, and shall be 
 verified under oath by the proper officers thereof and be published, 
 or the substance thereof in the report of the commissioner under 
 a separate part, entitled "Mutual Benefit Societies, Order or Asso- 
 ciations," and shall show: 
 
 1. Number of certificates issued during the year or members 
 admitted. 
 
 2. Amount of indemnity effected thereby. 
 
 3. Number of losses or benefit liabilities.
 
 1012 FRATERNAL SOCIETY LAW 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment in each class for 
 the year. 
 
 6. Total amount paid members, beneficiaries, legal representa- 
 tives and heirs. 
 
 7. Number and kind of claims for which assessments have been 
 made. 
 
 8. Numljer and kind of claims compromised or resisted, and brief 
 statements of reasons. 
 
 9. Does society charge annual or other periodical dues or ad- 
 mission fees? 
 
 10. How much on each one thousand dollars annually or per 
 capita, as the case may be? 
 
 11. Total amount received, from what sources, and disposition 
 thereof. 
 
 12. Total amount of salaries paid to officers. 
 
 13. Does society guarantee in its certificate fixed amount to be 
 paid regardless of amount realized from assessments, dues, admis- 
 sion fees and donations? 
 
 14. If so, state amount guaranteed and the security of such guar- 
 antee. 
 
 15. Has the society a reserve fund? 
 
 16. If so, how it is created, and for what purpose, the amount 
 therefor, and how invested. 
 
 17. Has the society more than one class? 
 
 18. If so, how manj^, and the amount of indemnity in each. 
 
 19. Number of members in each class. 
 
 20. If organized under the laws of this State, under what law, 
 and at what time. 
 
 21. If organized under the laws of any other State or territory, 
 the District of Columbia or any foreign country, state such fact 
 and the date of organization, giving chapter and year and date of 
 passage of the act. 
 
 22. Number of certificates of membership in force at beginning 
 and end of .year ; if more than one class, number of each. 
 
 23. Number of certificates of membership lapsed during the year. 
 
 24. Number of certificates of membership in force in this State
 
 Till-: t^TATE OF WISCONSIN 1013 
 
 at the begiiiniug and cnil of year; it' more tliaii one clasis, tiiiniber 
 of each. 
 
 25. Number of certificates of nK^mbcrship in this State lapsed 
 during the year. 
 
 26. Number of deaths in this State durinfi; tiu' year. 
 
 27. Number and amount of claims paid in this State during the 
 year; if more than one class, number and amount paid in each. 
 
 28. Have all claims been paid in full? If not, why not? 
 
 29. Approximate maximum and average age of membership in 
 each class. 
 
 30. Liabilities, assets, contingent liabilities, contingent assets. 
 
 31. A schedule giving the number of members in groups accord- 
 ing to attained ages, the amount of insurance in force, the amount 
 received in premiums or mortuary assessments during the year, the 
 number of deaths, and the amount of death losses incurred during 
 the year in each gi'oup at attained age. 
 
 Inspection of Books — Revocation of License. 
 
 Section 1955h. The commissioner may address any additional in- 
 quiries to any such organization and it shall be the duty of the 
 proper officers thereof to reply in writing, under oath, to all such 
 inquiries. All such organizations and their books and papers shall 
 be subject to visitation and inspection by the commissioner or such 
 person as he may designate. Any such organization refusing or 
 neglecting to make such report or an.swer such inquiries shall be 
 excluded from doing business in this State. Said commissioner 
 must, within thirty days after failure to make such report or answer 
 his inquiries, or in case any such organization shall exceed its 
 powers or conduct its business fraudulently or fail to comply with 
 any of the provisions of law applicable thereto, revoke its license, 
 and no organization whose license is so revoked shall continue 
 business until such report shall be made, questions answered, or 
 overt acts or violations complained of shall have been corrected and 
 the costs of such proceedings be paid by it, whereupon the com- 
 missioner shall reinstate the organization and not until then shall 
 it again do business in this State.
 
 1014 FRATERNAL SOCIETY LAW 
 
 Examination. 
 
 Section 1955i. The Commissioner of Insurance shall, at the re- 
 quest of any organization doing business under these provisions, 
 make an examination thereof, and furnish a certificate of the result, 
 showing all its assets, how invested, and such other particulars as 
 may be deemed necessary to show the character and condition of 
 the organization ; and the necessary expense of the said examina- 
 tion shall be paid by it. 
 
 Definitions. 
 
 Section 1955j. The word "assessment" as used in the foregoiag 
 provisions, when applicable to any corporation, society, order or 
 association, shall mean that the usual method employed by any 
 organization within such provisions to meet its death losses is by 
 assessments upon its surviving members, or that the amount esti- 
 mated or required to meet such losses shall not be limited to a fixed 
 sum. The word "organization," as so used, shall mean all such 
 corporations, societies, orders or associations as are within the fore- 
 going provisions; but no law of this State hereafter passed shall 
 be held to apply to fraternal benefit organizations unless they are 
 specifically mentioned in said law. 
 
 Violation of Law. 
 
 Section 1955k. The Commissioner of Insurance shall revoke the 
 license of any organization which fails to comply with the require- 
 ments of law; and all necessary expenses incurred by him and by 
 the Attorney General in enforcing such requirements or in prose- 
 cuting violations thereof shall be paid out of the general fund, on 
 being certified to by the Secretary of State that they were actually 
 and necessarily incurred for the purpose stated. 
 
 License Fee. 
 
 Section 19551. Every foreign organization which is licensed to 
 do business under the foregoing provisions shall pay an annual 
 license fee of twentv-five dollars; but societies and orders of this
 
 THE STATE OF WISCONSIN 1015 
 
 State wliicli liavc m State Grand Lodge or Council therein shall not 
 be required to pay such fee. 
 
 Reserve Fund — Deposit of Securities. 
 
 Section 1955ra. Any corporation, society, order or association 
 transacting business under the foregoing provisions may provide by 
 its by-laws for the aeciuuulation of a reserve oi' guaranty fnnd, 
 which may be invested only in its corjiorate name in United States, 
 State, county, city or other first-class convertible bonds of securities. 
 Such funds, when so set apart and invested, shall, with the increase 
 thereof, belong to such corporation, society, order or association and 
 shall be used only to guaranty benefits or in payment of fntnre 
 assessments or otherwise for the promotion of the objects for which 
 said funds are specially provided and set apart. Such fund, or 
 part thereof, may be deposited with the State treasurer for the 
 purpose of securing certificate holders, and such treasurer shall re- 
 ceive and hold in trust such bonds, stocks or other securities as may 
 be offered by any corporation, society, order or association and give 
 a receipt for the same. Every corporation, society, order or asso- 
 ciation depositing such securities may receive the income thereof 
 and exchange the same from time to time and withdraw the same 
 when it no longer desires to maintain such deposit. 
 
 Reorganization of. 
 
 Section 1955n. Any corporation, society, order or association 
 heretofore incorporated under the laws of this State, the objects of 
 which are similar to those specified in Section 1955a and having a 
 membership of not less than five hundred may re-incorporate under 
 the provisions of Sections 1955a to 1955m on filing with the Com- 
 missioner of Insurance a resolution adopted by the unanimous vote 
 of the directors of governing body thereof, expressing their purpose 
 to so re-incorporate, and on also filing with him a statement showing 
 the name and location of the corporation, the purpose for which it 
 was organized, the names and residences of its president, secretary, 
 treasurer and directors, its place of business or principal office and
 
 1016 FRATERNAL SOCIETY LAW 
 
 name and location as re-incorporated; but such name shall not 
 contain the names of individuals as the names of individuals are 
 used in partnership names, nor shall it be so similar to the name 
 of any existing corporation as to mislead the public ; a designation 
 of the general officers of the corporation, their terms and the 
 methods of their election. 
 
 The legislature, session of 1907, enacted Chapter 637, adding to 
 the statutes Section 1946x, which, while not specifically referring 
 to fraternal societies in express terms in the caption, relates to 
 them in part and is of interest. Same is as follows : 
 
 Section 1946x. Unless the context of any statute or law relating 
 to life insurance indicates otherwise, the following words and phases 
 shall be understood in the sense herein set forth and defined : 
 
 1. The "amount at risk," in any policy year, is the difference 
 between the sum insured in such policy year and the terminal re- 
 serve for such policy year. 
 
 2. "Beneficiary," is the person in whose favor a policy is written. 
 
 3. "Company," includes all corporations, associations, partner- 
 ships or individuals, engaged as principals in the business of life 
 insurance, except fraternal or beneficiary corporations, societies, 
 orders or associations for the relief of members or beneficiaries, or- 
 ders or associations for the relief of members on the mutual or as- 
 sessment plan, 
 
 4. "Deposit," is the terminal reserve on a policy discounted to 
 the beginning of the polie.y year at the rate of interest assumed. 
 
 5. "Domestic company," is any company organized or incor- 
 porated under the laws of this State. 
 
 6. The "expense charge," for any policy year is the excess of 
 the stipulated premium for such policy year and the terminal re- 
 serve of the preceding policy year over the sum of the mortality 
 charges and deposit for such policy .year. Under the net level 
 premium plan, with uniform gross premium, it is called "loading." 
 
 7. "Foreign company," is any company not organized or incor- 
 porated under the laws of this State. 
 
 8. "Insured," is the person upon whose life the contract of in- 
 surance is written. 
 
 9. "Mortality charge," is the provision made in the policy at
 
 THE STATE OF WISCONSIN 1017 
 
 the beginning' of the policy year for the mortality on account of 
 such policy year, according to the expense charges assumed, the 
 table of mortality adopted ;[\\t\ liie rate of interest assumed. 
 
 10. "Policy," is the contract issued by the company to the in- 
 sured. 
 
 11. "Policy anniversity, " is any anniversary of tlie date of the 
 policy. 
 
 12. "Policy year," is the year beginning with the date of the 
 policy or any anniversary thereof. 
 
 13. "Premium," is the payment stipulated in the policy to be 
 made by the insured to the company during any one policy year. 
 
 14. The "reserve," at any time within the policy year is the 
 deposit for such year improved at the assumed rate of interest to 
 such time with the policy year together with the proportional 
 unused part of the mortality charge for such year. 
 
 15. The "sum insured" under a policy in any policy year is the 
 value of the guaranteed payments and benefits stipulated to be made 
 or granted if it should mature within such policy year. 
 
 16. The "terminal reserve," is the reserve at the end of the 
 policy year and is the sum sufficient, with the premiums coming 
 due, to provide for the future expense and mortality charges, and 
 mature the policy according to its terms, all computed upon the 
 expense charges a.ssumed, the table of mortality adopted and the 
 rate of interest assumed. 
 
 Forfeiture — Waivers of Prompt Payment of Assessments. 
 
 A society whose by-laws provide that any member who shall be 
 in arrears for dues for a specified time after notice shall forfeit 
 his rights, subject to being rein.stated on payment of arrearages, 
 does not waive a forfeiture so incurred by subsequently making a 
 new assessment and giving notice thereof to the member who is in 
 default for non-payment of the previous one within the time limited, 
 even though it had previously accepted payment of assessments 
 after they were due. 
 
 Toelle vs. Central Verein, Oct., 1897, 97 Wis. 322.
 
 1018 FRATERNAL SOCIETY LAW 
 
 After-enacted Laws Reasonable and Valid. 
 
 A member whose certificate makes his compliance with all the 
 laws then existing or subsequently enacted a condition precedent 
 to his participation in benefits, is bound by a by-law adopted after 
 his admission providing that if any member shall engage in any 
 prohibited occupation — among M'hich was classed that of selling 
 liquors — his certificate shall be void and he shall stand suspended, 
 and that no action of the society shall be a condition precedent to 
 such suspension, and that the subsequent receipt of assessments 
 shall not be a waiver of his engaging in such prohibited occupation. 
 It was further held that such a by-law was reasonable, and that a 
 member who, after admission and after the passage of said law, 
 had opened a liquor saloon, though he personally continued his 
 usual business and operated the saloon by a clerk, was under the 
 said by-law suspended, and that the society did not waive the sus- 
 pension by afterwards receiving assessments from the member. 
 
 Schmiidt vs. Supreme Tent Knights of the Maccabees, Nov., 1907, 97 
 Wis. 528. 
 
 Corporate Name, Right to. 
 
 A foreign societ.y which has condticted business under a certain 
 name for many years will not be restrained from the use of such 
 name at the suit of a domestic society organized under a similar 
 name for similar purposes more than ten years after the former 
 commenced to transact in this State. 
 
 High Court of Wisconsin, Independent Order of Foresters vs. Com- 
 missioner of Insurance, Dec, 1897, 98 Wis. 94. 
 
 After-enacted Suicide Law Valid. 
 
 "Where a member stipulated in his application that he would 
 conform in all respects to the by-laws, rules and regulations then 
 in force or which might be thereafter adopted, he and his bene- 
 ficiaries are efi'ectually bound by any amendment to the laws adopted 
 after the certificate was issued, avoiding it in case the insured com-
 
 THI<: HTATE OF WISCONSIN 1019 
 
 mitted suicide, to tlu' same extent as if siicli ])v-la\v liad been in 
 force at the time when he became a member. 
 
 Hughes vs. Wisconsin Odd Fellows Mvit. Life Ins. Co., Jan., 1898, 
 98 Wis. 292. 
 
 Death in Violation of Law, Suicide is Not. 
 
 Although suicide i.s technically a crime, it is not within the mean- 
 ing of a clause in an insurance contract providing that death in 
 consequence of or in violation of law is an excepted risk. 
 
 Patterson vs. Natural Premium Mut. Life Ins. Co., .Tune, 1898, 100 
 Wis. 118. 
 
 Incontestable Clauses, What is Covered by. 
 
 False statements or concealment by the applicant in respect to his 
 health is covered by an incontestable clause in the contract. 
 
 Patterson vs. Natural Premium Mut. Life Ins. Co., .Tune, 1898, 100 
 Wis. 118. 
 
 After-enacted Laws Valid. 
 
 After-enacted by-laws are valid and binding and affect certificates 
 issued before the adoption of such by-laws. 
 
 Loeflaer vs. Modern Woodmen of America, June, 1898. lOU Wis. 79. 
 
 Agency, Waivers Through Not Favored. 
 
 A member of a society who as clerk of a local camp receives dues 
 and assessments from himself after he has forfeited his membership 
 by engaging in a prohibited business, does not thereby waive such 
 forfeiture. 
 
 Loeffler vs. Modern Woodmen of America, June, 1898, 100 Wis. 79.
 
 1020 FRATERNAL SOCIETY LAW 
 
 Resort to Civil Courts by Members. 
 
 Members should exhaust their remedies of ajipeal provided for 
 iu the laws of the society before applying to a court of equity for 
 relief. 
 
 Loefder vs. Modern Woodmen of America, June, 1898, 100 Wis. 79. 
 
 Fraternal Insurance Society Defined. 
 
 An insurance corporation furnishing life or casualty insurance in 
 consideration, iu whole or in part, of contributions by its members 
 on a ba.sis of equality, sufficient to meet its expenses and mature 
 memberships as the necessities therefor arise, is a benefit or bene- 
 ficiary corporation furnishing casualty or life insiirance upon the 
 mutual assessment plan, within the meaning of Chapter 418, laws of 
 1891, exemption certain insurance organizations from the general 
 insurance laws of the State. 
 
 State vs. National Ace. Society, May, 1899, 103 Wis. 208; 79 N. W. 220. 
 
 Assessments, Receiving Over-due Payments. 
 
 The acts of a society in receiving past due assessments on a cer- 
 tificate are an element in determining whether a waiver of prompt 
 payment was agreed to, but are not conclusive. 
 
 Reisz vs. Supreme Council, American Legion of Honor, June, 1899, 
 103 Wis. 427; 79 N. W. 430. 
 
 Beneficiary, Change of, Requisites. 
 
 A member desiring to change his beneficiar.y must make the 
 change in the manner required by the laws of the society, and any 
 material deviation from that coarse will render the attempted 
 change ineffective ; but where the member has done every substantial 
 act required of him, and dies before the new certificate is actually 
 issued, and only formal acts on the part of the society remain to be 
 done, the change will be considered to have been made even in an 
 action at law.
 
 T///J STAThl OF WISCONSIN 1021 
 
 McGowan vs. Suprorac Court, Intlependcut Order of Foresters, Oct., 
 
 1899, 104 Wis. 173. 
 
 For the opinion on st^eond ;ippeal, where the holding was to the 
 same effect, see 
 
 McGowan vs. Supreme Court, Independent Order of Foresters, Oct., 
 
 1900, 107 Wis. 462. 
 
 Material Questions and Answers in the Application. 
 
 The answers of an applicant to questions concerning the health, 
 death, or age at death of his ancestors and brotliers and sisters, are 
 material as a matter of law, and it is error to snlimit the question 
 of their materiality to the jury, even though such answers are made 
 the basis of the contract and declared to be warranties only so far 
 as they are material. 
 
 McGowan vs. Supreme Court. Independent Order of Foresters. Oct., 
 1899, 104 Wis. 173. 
 
 Evidence, Report by Local Examiner. 
 
 Where the examining physician is an officer of the local lodge, 
 his report as to the physical condition of an applicant, made after a 
 personal examination, is a statement of an officer of the society, made 
 as a part and within the scope of his official ditties, and as such is 
 admissible in evidence as an admission of the instirer under the 
 same conditions as admissions of agents generall.v. 
 
 McGowan vs. Supreme Court. Independent Order of Foresters. Oct., 
 1899, 104 Wis. 173. 
 
 Assessments, Suspension and Reinstatement. 
 
 The receipt of an overdue assessment on condition that the mem- 
 ber was then in good health did not waive a forfeiture caused by 
 the delinquencj' where the member was not in good health, and 
 there was a prompt offer to return the payment upon discovery of 
 the fact. 
 
 Miles vs. Mutual Reserve Fund Life Assn., .Tan.. 1901. lOS Wis. 421.
 
 1022 FRATERNAL SOCIETY LAW 
 
 Suicide, Proofs of Death, Evidence. 
 
 The ijroofs of death furnished by the beneficiary in which it is 
 shown that the toember came to his death by suicide, was competent 
 prima facie evidence of that fact. 
 
 Hart vs. Fraternal Alliance, Jan., 1901, 108 Wis. 490. 
 
 Proofs of Death, Denial of Liability. 
 
 A denial of liability made at the expiration of the time for furnish- 
 ing proofs of death, and when such denial could not in any way 
 have influenced the action of the beneficiaries with respect to such 
 proofs, does not operate as a waiver of defects in the proofs fur- 
 nished. 
 
 Hart vs. Fraternal Alliance, Jan., 1901, 108 Wis. 490. 
 
 Proofs of Death, Requirements Reasonable. 
 
 Where the certificate requires that in case of an inquest being 
 held a certified copy of the evidence, verdict and proceedings therein 
 shall be attached to the proofs of death, such stipulation is reason- 
 able and compliance therewith is necessary to give a right of re- 
 covery. 
 
 Hart vs. Fraternal Alliance, Jan., 1901, 108 Wis. 490. 
 
 Certificate Versus Application. 
 
 Where there is a variance between the application and the certifi- 
 cate in naming the beneficiary, the certificate shall control. 
 
 Hutson vs. Jenson, April, 1901, 110 Wis. 26. 
 
 Tenders Not Required of Members Unlawfully Suspended. 
 
 Where a member has been notified that the society will not re- 
 ceive any more money from him, because he is no longer a member,
 
 THE STATE OF WISCONSIN 1023 
 
 his rights will not be prejudiced by failure to tender payments of 
 assessments subsequently made. 
 
 Langnecker vs. Trustees of the Grand Lodge A. O. U. W., Sept., 1901, 
 111 Wis. 279. 
 
 After-enacted Laws Valid — Prohibited Occupations. 
 
 A by-law providing that any member who shall after a certain 
 date enter into the business of selling liquor by retail, shall be ex- 
 pelled, applies to a member not actually engaged in the prohibited 
 business at the time mentioned, even though he had been so engaged 
 at the time his certificate was issued, and such by-law by necessary 
 implication prohibits members from entering into such business. 
 
 Langnecker vs. Trustees of the Grand Lodge A. O. U. W., Sept., 1901, 
 111 Wis. 279. 
 
 Appeals From Void Judgment Not Necessary. 
 
 An appeal from an inferior to a superior tribunal to avoid the 
 effect of an absolutely void proceeding, is unnecessary. 
 
 Langnecker vs. Trustees of the Grand Lodge A. O. U. W., Sept., 1901, 
 111 Wis. 279. 
 
 Insurance Commissioner, Mandamus Against. 
 
 The insurance commissioner should not be compelled by man- 
 damus to issue a license where, although he had previous refused 
 on insufficient grounds to issue the same, he had notified the appli- 
 cant of a reconsideration of such action, and at the time of the 
 issuance of the writ was proceeding to make proper examination 
 into the affairs and condition of the society. 
 
 The State, ex rel. Court of Honor, vs. Giljohann, Commissioner of 
 Ins., Sept., 1901, 111 Wis. 377. 
 
 Evidence — Admissibility of Declarations. 
 
 The beneficiary in a certificate issued by a fraternal society has so
 
 1024 FRATERNAL SOCIETY LAW 
 
 far a vested interest therein that the prior declarations of the mem- 
 ber are not admissible in evidence to prove falsit.v of the statements 
 in the application, unless thej' were made at or about the time of the 
 application and were so closely related with and explanatory of 
 some act or fact showing the then condition of the health of the 
 member as to be a part of the res gestae; but declarations not ad- 
 missible under the above rule may be admissible to pi'ove prior 
 knowledge on the part of the member of the falsity of some state- 
 ment in the application, where such prior knowledge is a material 
 fact and there is substantive evidence of the falsity of the statement. 
 
 Rawson vs. Milwaukee Mut. Life Ins. Co., Nov., 1902, 115 Wis. 641. 
 
 After-enacted Laws, How Far Lawful. 
 
 A certificate issued to a member provided that the contract stated 
 therein was subject to all existing by-laws, rules and regulations, 
 and all that might be made. Held, that such reserve power war- 
 ranted only those variances required in matters of detail necessary 
 or advisable in carrying out efficiently the fundamental principle 
 or scheme of the society, and not in changing the plan itself and 
 nullifying all contracts entered into under it. 
 
 Wuerfler vs. Trustees Grand Grove, Order of Druids, Nov.. 1902, 116 
 Wis. 19. 
 
 Societies Free From Judicial Control, How Ear. 
 
 In matters of discipline and policy not manifestly violating private 
 rights, societies are supreme and independent of .iudieial control, 
 but when they proceed arbitrarily manifestly to violate the private 
 rights of their members, they are amenable to law the same as any 
 other person, natural or artificial. 
 
 Wuerfler vs. Trustees Grand Grove, Order of Druids, Nov.. 1902. 116 
 Wis. 19. 
 
 Agency of Local Officer, What is Extent of. 
 
 The laws of a society provided that the local tent was the agent
 
 I 
 
 THK STATE OF WISCONSIN 1026 
 
 of its members in collecting dues and assessments, and that the 
 Supreme Tent should not be liable for any negligence or bound by 
 any illegal action or irregularity of such local tent. The laws 
 further provided that in case of a member's suicide, the society 
 should be liable only to the amount of the assessments paid in. 
 Four days after the death of a member by suicide the collector of a 
 local tent accepted from the beneficiary the assessments due of the 
 date of the member's death. Held, that if such reception of dues 
 was irregular, it was the error of the beneficiary's own agent, of 
 which she could not take advantage. 
 
 Voelkel vs. Supreme Tent, Knights of the Maccabees, Jan., 1903, 116 
 Wis. 202. 
 
 Evidence, Admissions in Suicide Case. 
 
 Statements of a beneficiary in proofs of death giving the cause of 
 the member's death as suicide, are admissions against interest and 
 establish prima facie the fact of suicide. 
 
 Voelkel vs. Supreme Tent, Knights of the Maccabees, Jan., 1903, 116 
 Wis. 202. 
 
 Beneficiary, Rule as to Changes of. 
 
 Where the member applying for a change of beneficiary has done 
 everything required of him, and the society has only formal acts 
 to perform in order to make such change effective, and the member 
 dies before the new certificate is actvially issued, it will be held that 
 the change of beneficiary must be deemed complete. 
 
 Waldum vs. Homstad, Oct., 1903, 119 Wis. 312. 
 
 Membership, Conditions Precedent to Retaining. 
 
 By the charter and laws of a society organized for the sole bene" 
 fit of members of the Roman Catholic church, none but practical 
 catholics could be admitted, and members were requivpd to remain 
 practical catholics and communicants of that church in order to 
 participate in the benefits. An applicant for admission agreed that 
 6.5
 
 1026 FRATERNAL SOCIETY LAW 
 
 upon any failiii'e to conform strictly to the laws of the society he 
 should forfeit all rights to membership and benefit. Afterwards the 
 member was married by a protestant minister, and ipso facto was 
 excommunicated and ceased to be a catholic : Held, that all liability 
 on the certificate thereby ceased, the provisions of the contract being 
 self-executing. 
 
 Barry vs. Order of Cath. Knights, Oct., 1903, 119 Wis. 362. 
 
 Beneficiary, When Unable to Take Benefit. 
 
 Where a certificate was i:)roenred by false representations of the 
 member to the effect that the beneficiary named was one of the 
 class for M-hose benefit the mortuary fund was established, and the 
 fraud was not discovered until after the member's death, such bene- 
 ficiary whose rights rested on the certificate alone could not recover 
 thereon. 
 
 Koerts vs. Grand Lodge. Order of Hermann's Sons, Nov., 1903, 119 
 Wis. 520. 
 
 To the same effect see 
 
 Grand Lodge of Wisconsin, Order of Hermann's Sons vs. Leml^e, 
 March, 1905, 121 Wis. 483. 
 
 "Survivors," Who Are Within the Term. 
 
 A certificate was payable to the survivors of the member. It was 
 held that this word "survivors" did not include one who was neither 
 a relative of the deceased member nor a member of his household 
 nor connected with him by marriage. 
 
 Koerts vs. Grand Lodge. Order of Hermann's Sons. Nov., 1903. 119 
 Wis. 520. 
 
 Limitations on Right to Sue Valid. 
 
 A provision of a contract providing that no suit shall be main-
 
 I 
 I 
 
 THE STATE OF Wll^CONSlN 1027 
 
 tallied unless coniiiicnccd williin one yoar from the death of the 
 lueinber, is valid. 
 
 Fey vs. The I. O. O. F. Mat. Life Ins. Society, Feb., 1904, 120 Wis. 358. 
 
 Taxation, Clubhouse of Lodge Not Exempt. 
 
 The clubhouse and lodge buildiiiy ol' a, local lods'i' of the Benevo- 
 lent and Protective Order of Elks, designed and used principally to 
 provide accommodations for the entertainment, amusement and re- 
 freshment of members of the lodge and their families and guests, 
 and maintained by a system of charges to members regulated with a 
 view to covering all expenses incident to the elublionse feature, and 
 profit resulting being paid into the lodge treasury, is not exempt 
 from taxation as being property of a benevolent association not 
 used for pecuniary profit, within the meaning of the statiite. 
 
 Trustees of Green Bay Lodge vs. City of Green Bay, Sept., ]904, 122 
 Wis. 452. 
 
 Beneficiary, Right to Change General. 
 
 The mere possession of a certificate by the husband of a member 
 who has voluntarily paid the assessments thereon, is explainable by 
 the marital relations and consistent with the rights of the wife re- 
 maining undisturbed thereb.y; is not sufficient to show a vested right 
 in the husband nor to divest the right of the wife to change the 
 beneficiary at will. 
 
 Preusser vs. Supreme Hive, Ladies of tlie Maccabees of the World, 
 Nov., 1904, 123 Wis. 164. 
 
 Beneficiaries, Not Controlled by Will. 
 
 A provision in the laws of a society to the effect that no will shall 
 be permitted to control the distribution of or the rights of any 
 person to any benefit payable by the society, is not contrary to 
 public policy and is binding upon the member, precluding him from 
 disposing by will of the proceeds of his benefit certificate. 
 
 Thomas vs. Covert, Jan., 1906, 126 Wis. 593.
 
 1028 FRATERNAL SOCIETY LAW 
 
 "Legal Heirs," Who are Within the Term. 
 
 The legal heirs of a deceased member of a fraternal society, to 
 whom by the terms of his certificate payment is to be made out of 
 the widows' and orphans' benefit fund, include all persons desig- 
 nated as distributees by the statutes for the distribution of the 
 property of intestates, and under the statutes of this state include 
 the widow. 
 
 Thomas vs. Covert. Jan., 1906, 126 Wis. 593. 
 "Saloon Keeper" and "Bartender," Who are. 
 
 One who is not employed <u- jaaid compensation as a bartender is 
 not a saloonkeeper within the prohibition against members engag- 
 ing in the occupation known as saloon bartender, although, while 
 engaged in his duties as choreboy in a restaurant and saloon, the 
 member occasionally waited upon customers as an accommodation 
 to his employer. 
 
 Stevens vs. Modern Woodmen of America, March, 1906, 127 Wis. 606. 
 
 ' ' Occupation, ' ' What is Meant by Term. 
 
 Engaging in an employment or occupation prohibited by the con- 
 ditions of the contract in a fraternal society has reference to the 
 vocation or calling to which the insured devotes himself with some 
 degree of permanency for hire or profit, and does not refer to acts 
 which are simply incidentally connected with the regular employ- 
 ment. 
 
 Stevens vs. Modern Woodmen of America, March, 1906. 127 Wis. 606. 
 
 Evidence, Proofs of Death Admitting Suicide, Effect of. 
 
 Proofs of death furnished by a beneficiary conlaiiiing a state- 
 ment by a physician to the efi:'ect that the member suicided, and 
 reference to the findings of the coroner to the same effect, are, in a 
 case where suicide is under the contract a defense to the payment of 
 the certificate, prima facie evidence of the fact of snieide.
 
 THE STATE OF WISCONSIN 1029 
 
 Rohloff vs. Aid Association for Lutlierans. Dec. 190G, 130 Wis. 61. 
 
 Suicide, Presumptions Respecting. 
 
 Where the question involved is the suicide of the member, and 
 that question is to be submitted to the jury, any presumption of 
 suicide arising from the proofs of death is not stronger than tlie gen- 
 eral presumption against suicide and does not shift the burden of 
 proof. 
 
 Rohloff vs. Aid Association for Lutherans. Dec. ]90(;, 130 Wis. 61. 
 
 Evidence, What Required to Change Written Statement. 
 
 In order to impeach a written settlement effected between a so- 
 ciety and a beneficiary upon the ground of fraud or mistake, the 
 proof must be clear and convincing beyond reasonable controversy. 
 
 Steffen vs. Supi'enie Assembly of the Defenders, Supreme Cjurt of 
 Wisconsin, Jan., 1907. 110 N. W. 401. 
 
 Warranty Must be Strongly Enforced. 
 
 In his application the member warranted that his answers to the 
 questions therein were true, and the certificate issued thereon stated 
 that it was issued in consideration of tlie application and the war- 
 ranties therein contained. Prior to the date of the application the 
 members had three attacks of inflammatory rheumatism, and in his 
 application he stated that he had suffered once with rheumatism, 
 but without designating that it was inflammatory. The member's 
 death was caused remotely by inflamniatory rheumatism. Held, that 
 the certificate issued on the apjilication was void by reason of the 
 breach of warranty. 
 
 Loehr vs. Supreme Assembly. Equitable Fraternal Union, Supreme 
 Court of Wisconsin, June, 1907, 112 N. W. 441.
 
 1030 FRATERNAL SOCIETY LAW 
 
 THE 
 
 STATE OF WYOMING. 
 
 CHAPTER 51. 
 
 (The Section uumbers employed correspond to those in the Act of 
 1901.) 
 
 Fraternal Insurance Associations — What Required to Constitute. 
 
 Section 64. A fraternal beneficiary association is hereby declared 
 to be a corporation, society or volnntaiy association, formed or or- 
 ganized and carried on for the sole benefit of its members and their 
 beneficiaries, and not for profit. Each association shall have a lodge 
 system, with ritualistic form of work and a representative form of 
 government, and shall make provision for the payment of benefits in 
 ease of death, and may make pi'ovision for the payment of benefits in 
 case of sickness, temporary or permanent physical disability, either 
 as the result of disease, accident or old age, provided the period in 
 life at which payment of i)hysical disability benefits on account of 
 old age commences, shall not be under seventy (70) years, subject to 
 their compliance with its constitution and laws. The fund from 
 which the payment of such l)enefits shall be made, and the fund from 
 M'hich the expenses of such association shall be defrayed, shall be 
 derived from assessments oi- dues collected from its members. Pay- 
 ment of death benefits shall be to the families, heirs, blood relatives, 
 affianced husband or affianced wife of. or to persons dependent upon 
 the member, or to the lodge in which he holds membership. Such 
 association shall be governed b.v this act and shall be exempt from 
 the provisions of the insurance laws of this State, and no law here-
 
 THE STATE OF WYOMING 1031 
 
 after passed slmll .■ii);)ly tn IIhui unless they be expressly designated 
 therein. Any such fraternal beneficial association may create, 
 maintain, disburse and apply a reserve <h- I'lncrai'iioy fund in accord- 
 ance with its constitution or by-laws. 
 
 Those Doing Business May Continue — When. 
 
 Section 65. All such assuciations coniini;' within the ilcseription 
 as set forth in Section 1 of this act, organi/.ed under the laws of this 
 or any other State, province or territory, and now doing business in 
 this State, may continue sucli business, provided tli.it they hereafter 
 comply with the provisions of this act regulating annual reports and 
 the designation of the State Auditor and ex-officio Insurance Com- 
 missioner as the person upon whom process may be served as here- 
 inafter provided. 
 
 Foreign Associations May Do Business — When. 
 
 Section 66. Any such association coming within the description, 
 as set forth in Section 1 of this act, organized under the laws of any 
 other State, province or territory, and not now doing business in this 
 State, shall be admitted to do business within this State when it 
 shall have filed with the State Auditor and ex-officio Insurance Com- 
 missioner a diily certified copy of its charter and articles of associa- 
 tion or eorjioration and a copy of its constitution or laws, certified 
 to by its secretary or corresixmding officer, an acceptance of the 
 constitution of this State, together with an appointment of the State 
 Auditor and ex-oflicio Insurance Commissioner of this State as a per- 
 son upon whom process may be served as hereinafter provided ; and 
 provided that such association shall be showai to be authorized to do 
 business in the State, province or territory in which it is incorporated 
 or organized, in case the laws of such State, province or territory 
 shall provide for such aiTthorization ; and in case the laws of such 
 State, province or territory do not provide for any formal authoriza- 
 tion to do biisiness on the part of such association, then such associa- 
 tion shall be shown to be conducting its business in accordance with 
 the provisions of this act, for which purpose the State Auditor and 
 ex-officio Insiu'anee Commissioner of this State may personally, or by
 
 1032 FRATERNAL SOCIETY LAW 
 
 some person to be designated by him, examine into the condition, 
 affairs, character and business methods, accounts; books, and invest- 
 ments of such association at its home office, which examination shall 
 be at the expense of such association, and shall be made within 
 thirty days after demand thereof, and the expense of such examina- 
 tion shall be paid by such association. 
 
 Eeports Required — What to Contain. 
 
 Section 67. Every such association doing business in this State 
 shall, on or before the first day of March of each year, make and 
 file with the State Auditor and ex-officio Insurance Commissioner of 
 this State a report of its affairs and operations during the year end- 
 ing on the 31st day of December, immediately preceding, which an- 
 nual report shall be in lieii of all other reports required by any other 
 law. Such reports shall be upon blank forms to be provided by the 
 State Auditor and ex-officio Insurance Commissioner, or may be 
 printed in pamphlet form, and shall be verified under oath by the 
 duly authorized officei's of such association, and shall contain answers 
 to the following questions: 
 
 1. Number of certificates issued during the year, or members ad- 
 mitted. 
 
 2. Amoimt of indemnitj' effected thereby. 
 
 3. Number of losses or benefit liabilities incurred. 
 
 4. Number of losses or benefit liabilities paid. 
 
 5. The amount received from each assessment for the year. 
 
 6. Total amount paid members, beneficiaries, legal representatives 
 or heirs. 
 
 7. Number and kind of claims for which assessments liave been 
 made. 
 
 8. Number and kind of claims compromised or resisted, and 
 statement of reasons. 
 
 9. Does association charge annual or other periodical dues or ad- 
 mission fees? 
 
 10. How much on each one thousand dollars, annually or per 
 capita, as the case may be? 
 
 11. Total amount received, from what source, and the disposition 
 thereof.
 
 THE STATE OF WYOMlNd 1033 
 
 12. Total amount of salai'ies paid to officers. 
 
 13. Does association guarantee, in its cci'tificates, fixed amounts 
 to be paid regardless of amount realized from assessments, dues, ad- 
 mission fees and donations? 
 
 1-4. If so, state amount guaranteed, and the security of such guar- 
 anty. 
 
 15. Has the association a reserve fund? 
 
 16. If so, how is it created, and for what purpose, the amount 
 thereof, and how invested? 
 
 17. Has the association more than one class? 
 
 IS. If so, how many, and the amount of indemnity in each ? 
 
 19. Number of members in each class. 
 
 20. If voluntary, so state, and give date of organization. 
 
 21. If organized under the laws of this State, under what law 
 and at what time; giving chapter and year and date of the passage 
 of the act. 
 
 22. If organized uuder the laws of any other State, province or 
 territory, state such fact and the date of organization, giving chapter 
 and date of passage of the act. 
 
 23. Number of certificates of beneficiary membership lapsed dur- 
 ing the year. 
 
 24. Number in force at beginning and end of year; if more than 
 one class, number in each class. 
 
 25. Names and addresses of its president, secretary and treas- 
 urer, or corresponding officers. 
 
 The State Auditor and ex-officio Insurance Commissioner is auth- 
 orized and empowered to address any additional inquiries to any 
 such association in relation to its doings or condition, or any other 
 matter connected with its transaction relative to the business con- 
 templated by this act, .and such officers of such association as the 
 State Auditor and ex-officio Insurance Commissioner may require 
 shall promptly reply in writing, under oath, to all such inquiries. 
 
 Agent to be Appointed — Civil Process Upon. 
 
 Section 68. Each such association now doing or hereafter ad- 
 mitted to do business ■within this State, and not having its principal 
 office within this State and not being organized under the laws of
 
 1034 FRATERNAL SOCIETY LAW 
 
 this State, shall appoint, in writing, the State Auditor and ex-officio 
 Insurance Commissioner and his successors in office to be its true 
 and lawful attorney, upon whom all lawful process in any action or 
 proceeding against it must be served, and in such M-ritinp: shall agree 
 that any lawful process against it, which is served on said attorne.y, 
 shall be of the same legal force and validity as if served upon the 
 association, and that the authority shall continue in force so long 
 as any liability remains outstanding in this State. Copies of such 
 certificate, certified by said State Auditor and ex-officio Insurance 
 Commissioner, shall be deemed sufficient evidence thereof, and shall 
 be admitted in evidence with the same force and effect as the original 
 thereof might be admitted. Service upon such attorne.y shall be 
 deemed sufficient service upon such association. When legal process 
 against any such association is served upon said State Auditor and 
 ex-officio Insurance Commissioner, he shall immediately notify the 
 association of such service by registered letter, prepaid and directed 
 to its secretary or corresponding officer, and shall within two days 
 after such service forward in the same manner a copy of the process 
 served on him to such officer. The State Auditor and ex-officio In- 
 surance Commissioner shall keep a record of all processes served 
 upon him, which record shall show the day and hour when such 
 service was made. 
 
 Permit to do Business — Fees for. 
 
 Section 69. The State Auditor and ex-officio Insurance Commis- 
 sioner of this State shall, upon the application of any association hav- 
 ing the right to do business within this State, as provided«by this act, 
 issue to such association a permit in Avriting, authorizing such asso- 
 ciation to do business within this State. For the first certificate and 
 all proceedings in connection therewith, such association shall pay 
 to the State Auditor and ex-officio Insurance Commissioner the fee 
 of $15.00; and upon the filing of each additional animal report such 
 association shall pay to the State Auditor and ex-officio Insurance 
 Commissioner a fee of $10.00; and all fees received by said State 
 Auditor and ex-officio Insurance Commissioner shall be paid to the 
 State Treasurer, for the benefit of the general fund of the State, the
 
 THE STATE OF WYOMING 1036 
 
 State Treasurer issuing his recpii)t in ti'iplieate therofor ;is now pro- 
 vided by law. 
 
 Benefit Exempt from Execution or Attachment. 
 
 Section 70. The money or other benefit, charity, relief or aid to 
 be paid, provided or rendered by an association authorized to do 
 business under this act, shall not bo liable to attachment by trustee, 
 garnishee or other process, and shall not be seized, taken, appro- 
 priated or ajiplied by any legal or equitable process, or by operation 
 of law, to pay any debt or liability of a certificate holder or of any 
 beneficiary named in a certificate, or any person wlio may have any 
 right thereunder. 
 
 Meetings May Be Held Anywhere. 
 
 Section 71. Any such association, oi'ganized under the laws of this 
 State, may i)rovide for the meetings of its legislative or governing 
 body in any other State, province or territory, wherein su(?h associa- 
 tion shall have subordinate bodies, and all business transacted at 
 such meetings shall be valid in all respects, as if such meetings were 
 held within this State, and when the laws of any such association 
 provide for the election of its officers by votes to be cast in its sub- 
 ordinate bodies, the votes so cast in its subordinates in any other 
 State, jirovince or territory, shall be valid as if cast within this State. 
 
 Penalties. 
 
 Section 72. Any person, officer, membei' or examining physician 
 who shall knowingly or willfully make any false or fraudulent state- 
 ment or representation for membership, or for the purpose of obtain- 
 ing any money or benefit in any association transacting business 
 under this act, shall be guilty of a misdemeanor, and upon conviction 
 shall be punished by a fine of not less than $100 nor more than $500, 
 or by imprisonment in the county jail for not less than thirty days 
 nor more than one year, or both such fine and imprisonment, in the 
 discretion of the court; and any person who shall willfully make a 
 false statement of any material fact or thing in a sworn statement
 
 1036 FRATERNAL SOCIETY LAW 
 
 as to the death or disaliility of a certificate holder in any such asso- 
 ciation for the purpose of procuring paj'ment of a benefit named in 
 the certificate of such holder, and any person who shall willfully 
 make any false statement in any verified report or declaration under 
 oath required or authorized by this act, shall be guilty of perjury, 
 and shall be proceeded against and punished as provided by the 
 statutes of this State in relation to the crime of perjury. 
 
 Failing to Make Report — Penalty. 
 
 Section 73. Any such association refusing or neglecting to make 
 the report as provided in this act. shall be excluded from doing busi- 
 ness within this State. Said State Auditor and ex-officio Insurance 
 Commissioner, within sixty days after failure to make such report, 
 or in case any such association shall exceed its powers or shall con- 
 duct its business fraudulently, or fail to comply with anj' of the 
 provisions of this act, give notice in writing to the Attorney General, 
 who shall immediately commence an action against any such associa- 
 tion to enjoin the same from carrying on any business. And no in- 
 junction against anj^ such association shall be granted by any court, 
 except on application by the Attorney General, at the request of the 
 State Auditor and ex-officio Insurance Commissioner, whether the 
 State or a member or other party seeks relief. Xo association so en- 
 joined shall have authority to continue business until such report 
 shall be made, m- overt act or violations complained of shall have 
 been corrected, nor until the costs of such action be paid by it. pro- 
 vided the court shall find that such association was in default as 
 charged, whereupon the State Auditor and ex-officio Insurance Com- 
 missioner shall reinstate such association, and not until then shall 
 such association be allowed to again do business in this State. Any 
 officer, agent or person acting for any association or subordinate 
 body thereof, within this State, while such association shall be so en- 
 joined or i)i'ohihited from doing business pursiwint \n this act. shall 
 be deemed guilty of a misdemeanor, and on conviction thei-eof shall 
 be puni.shed by a fine of not less than $2.5.00 nor more than .$200.00, 
 or by imprisonment in the county jail for not less than thirty days 
 nor more than one yp-<\\\ nr by Itoth such fine and ini|)risoniiiciit. in 
 the discrelioii of llic ciMirt.
 
 THE STATJ-; OF WYOMING 1037 
 
 Officer Acting Without Authority — Penalty. 
 
 Section 74. Any person wlio shall act within this State as an 
 agent, officer, or otherwise, for any association, which shall have 
 failed, neglected or refused to comply with, or shall have violated 
 any of the provisions of this act, or shall have failed or neglected 
 to procure from the State Auditor and ex-officio Insurance Commis- 
 sioner, a proper certificate of authority to transact business, as pro- 
 vided for by this act, shall be subject to the penalty provided in the 
 last preceding section for the misdemeanor therein specified. 
 
 Orders not Affected by This Act. 
 
 Section 75. This act shall not apply to or aft'eet grand or sub- 
 ordinate lodges of Masons. Odd Fellows or similar orders paying 
 only sick disability or funeral benefits, or any association not work- 
 ing on the lodge system which limits its certificate holders or mem- 
 bership to a particular class, or to the employes of a particular town 
 or city, designated fii-ni. business house or corporation. 
 
 Contract — Oral Agreement of Insurance Valid. 
 
 An oral contract for insurance may be valid, and if completed by 
 a meeting of the minds of the parties, the insurer will be liable for 
 loss occurring before the issuance and delivery of the contract. 
 
 Summers vs. Mutual Life Ins. Co., March, 1904, 12 Wyo., 369; 75 
 Pac. 937. 
 
 Precedent Condition of Liability the Delivery of Contract, Valid. 
 
 It is not luiusual for life contracts to provide they shall not take 
 effect until after delivery of the contract, and in such cases it is 
 reasonable to hold that no risk is assumed until such delivery. 
 
 Summers vs. Mutual Life Ins. Co., March, 1904. 12 Wyo., 369; 75- 
 Pac. 937. 
 
 Payment — Recovery of Amount Paid Under Void Contract. 
 
 Where a company delivers a policy difl^erent from that contracted
 
 1038 FRATERNAL SOCIETY LAW 
 
 for, the applicant may refuse to accept it and sue to recover the 
 premiums paid; and when a contract is void ab initio, or where 
 the risk never attached, the premium paid may be recovered back 
 as money had and received. 
 
 Summers vs. Mutual Life Ins. Co., March, 1904, 12 Wyo.. 369; 75 
 Pac. 937. 
 
 Conditions Precedent to Liability Proper. 
 
 A life insurance company has the absolute right to insist that it 
 shall accept an application and issue a contract before it shall be 
 bound as an insurer, and there can be no doubt of the right of one 
 desiring or applying for insurance to require a delivery to him 
 and acceptance by him of the contract before he will be bound 
 thereby. 
 
 Summers vs. Mutual Life Ins. Co., March, 1904, 12 Wye, 369; 75 
 Pac. 937.
 
 FRATERNAL SOCIETY LITERATURE 1039 
 
 FEATERNAL SOCIETY LITERATUEE. 
 
 CHAPTER 52. 
 
 The ainouiit ol' scieiititic jitRl technical literature dealing with the 
 Fraternal Society is reiiiarkal)ly small. — Much of what there is has 
 been inaccessable to the jiublic. The following presents a list of the 
 more important books and pajiers published upon subjects of Fra- 
 ternal Society Law. Usually copies can be found in the law libraries 
 but where this is not possible they can be obtained from the pub- 
 lishers : 
 Analyses of Fraternal Societies. 1 Volume. 
 
 Abb Landis, Author and Publisher, Nashville, Tenn. 
 Benefit Societies and Life Insurance. 2 Volumes. 
 
 Frederick II. Bacon, Author, St. Louis, Mo, 
 Benefit Societies and Accident Insurance. 1 Volume. 
 
 Wm. C. Niblaek, Author, Chicago, 111. 
 Bests Life Insurance Reports. 1 Volume Annually. 
 
 Best Ileportinu' (.'o.. New York, N. Y. 
 Beneficiaries and the Payment of Death Claims. Paper. 
 
 G. A. Harper, Ind., Order of Foresters, Toronto, Can. 
 Briefs on Law of Insurance. 5 Volumes. 
 
 R. W. Cooley, Author, West Pub. Co., St, Paul, Minn, 
 Cyclopaedia of Fraternities, 1 Volume. 
 
 Albert C, Stevens. Author. E. B. Treat & Co., Publishers, 
 New York, 
 Friendly Societies and Fraternal Orders. 1 Volume. 
 
 Abb Landis, Author and Publisher, Nashville, Tenn, 
 Facts for Fraternalists. 1 Volume. 
 
 The Fi'aternal Monitor, Pul)lishers, Rochester, N. Y. 
 Friendly Society Movement. I Volume.
 
 1040 FRATERNAL SOCIETY LAW 
 
 J. F. Wilkinson, Author, D. C.Lent, Agent, 30 Park PI., 
 New York. 
 Fraternal Societies — Statistics. 1 Volnme. 
 
 The Fraternal Monitor, Publishers. Rochester, N. T. 
 Insurance Year Book. 1 Volume Annually. 
 
 The Spectator Co., Publishers, New York. 
 Insurance Digest. 20 Volumes. 
 
 Rough Notes Pub. Co., Indianapolis, Ind. 
 Law of Fraternal Insurance. 1 Volume. 
 
 A collection of most valuable Papers read before meetings of 
 the Law Section, of the National Fraternal Congress. Carlos 
 S. Hardy, Editor, Chicago, 111. 
 Life Insurance Premiums. 1 Volume. 
 
 Abb Landis. Author and Publisher, Nashville, Tenn. 
 Life Insurance, the Business of. 1 Volume. 
 
 Miles M. Dawson, Author. A. S. Bai-nes & Co., Pubs., 
 New York. 
 Proceedings of the National Fraternal Congress. 1886 to 1907. 1 
 Volume Annually since 1900. 
 
 C. A. Gower. Sec'v-Treas., Lansing, Mich.
 
 1041 
 
 LIST OF LAWYERS. 
 
 CHAPTER 53. 
 
 The Fraternal Society manager or General Coiinsel has no more 
 perplexing and difficult ivroblein presented to him from day to day 
 than the selection of capable and dependable lawyers who are experi- 
 enced in Fraternal Society law to whom may be entrusted the 
 investigation of death claims, collecting of evidence and defense and 
 prosecution of the rights of the societies in litigated matters. The 
 practice of Fraternal Society law is the practice of a specialty and 
 there are but few lawyers in any State at all experienced therein. 
 Through the interchange of experiences and cooperation the General 
 Counsel of the Fraternal Societies have come to recognize those 
 members of the bar in each locality who are of the class referred to 
 above. It is believed that the inclusion of a list of such members 
 of the legal profession as are entirely reliable and capable of han- 
 dling satisfactorily any business entrusted to them by Fraternal So- 
 cieties and who now and for some years have enjoyed a large practice 
 in Fraternal matters in a work of the character of Fraternal Society 
 Law will not detract from the merit of the work but add to its use- 
 fulness and be appreciated by all having occasion to use it. 
 
 The following list contains the names and address of those mem- 
 bers of the bar in their several states whom the author knows to be 
 entirely trustworthy, reliable, and of large practice, but who will 
 give special attention to Fraternal Society Law and who have such 
 experience and ability in Fraternal Society matters as to merit the 
 full confidence of all who may engage their services. The attorneys 
 listed will attend to matters in any part of their respective states 
 and in any court therein : 
 
 66
 
 1042 
 
 FRATERNAL SOCIETY LAW 
 
 I 
 
 ARKANSAS. 
 
 Little Rock. Bradshaw. Rhoton & Helm. 
 Kahn Building. 
 See Card on page 1149. 
 Russelville. U. L. Meade. 
 
 Of firm of Meade & Davis. 
 See Card on page 1149. 
 
 CALIFORNIA. 
 
 San Francisco. Henry C. Scliaertzer. 
 
 Humboldt Bank Bldg. 
 See Card on page 1149. 
 
 COLORADO. 
 
 Denver. Allen & Webster. 
 
 General Counsel for Supreme Lodge Fraternal Union 
 of America. Cooper Building. 
 
 See Card on page 1149. 
 
 CONNECTICUT. 
 
 New Haven. Ailing, Webb & Morehouse. 
 First National Bank Bldg. 
 See Card on page 1150. 
 
 GEORGIA. 
 
 Savannah. Jacob Gazan. 
 
 Provident Building. 
 See Card on page 1150. 
 
 ILLINOIS. 
 
 Carthage. Wm. B. Risse. 
 
 General Attorney for Court of Honor. 
 
 See Card on page 1150. 
 
 Chicago. Edmund S. Cummings. 
 
 General Attorney for Catholic Order of Foresters. 
 
 Ashland Block. 
 
 Carlos S. Hardy. 
 
 General Counsel for Supreme Lodge Knights of 
 Pythias. Ins. Dept. Manhattan Bldg. 
 
 See Cardon page 1151. 
 
 Charles J. Kavanagh. 
 
 Tacoma Bldg. 
 
 George W. Miller. 
 
 General .•\ttorney for Royal League. 
 
 Ashland Block.
 
 LIST OF LAWYERS 
 
 104;^, 
 
 Dnnvillc. Dwycr & Dwycr. 
 
 Commercial Bank Bldg. 
 See Card on page 1150. 
 
 IOWA. 
 
 Dubuque. Nelson, Duffy & Dciiison. 
 
 Security Bldg. 
 See Cardon page 1151. 
 
 INDIANA. 
 
 Evansville. Charles L. Wedding. 
 
 314 Main St. 
 See Cardon page 1151. 
 
 ludiaunpolis. C. S. & G. L. Denny. 
 
 Indiana Pythian Bldg. 
 See Cardon page 1151. 
 
 KANSAS. 
 
 Tojieka. George A. Huron. 
 
 Office Block. 
 General Attorney for Knights and Ladies of Security. 
 
 See Card on page 1152. 
 
 KENTUCKY. 
 
 Louisville. Carutli, Cliatterson & lilitz. 
 
 See Card on page 1152. 
 Newport. L. J. Crawford. 
 
 See Card on page 1152. 
 Padueah Bagby & Martin. 
 
 See Card on page 1152. 
 
 MASSACHUSETTS. 
 
 Boston. Joseph C. Pelletier. 
 
 National Advocate for Knights of Columbus. 
 18 Tremont St. 
 
 See Card on page 1152. 
 Springfield Charles L. Young. 
 
 397 Main st. 
 See Card on page 115.3. 
 
 MICHIGAN. 
 
 Detroit. Hal. H. Smith. 
 
 Penobscot Bldg. 
 See Card on page 1153.
 
 1044 
 
 FRATERNAL SOCIETY LAW 
 
 MINNESOTA. 
 Fergus Falls. C. L. Ililloii. 
 
 First National Bank Bldg. 
 See Card on page 1153. 
 Mankato. Benj. D. Smith. 
 
 General Attorney tor ilodern Woodmen of America. 
 Minneapolis. Charles G. Lavboitrn. 
 
 New York Life Bldg. 
 See Card on page 11.5.J. 
 
 MISSISSIPPI. 
 Jackson. ]\Ic"\Villie & Tliompson. 
 
 McWillie and Thompson Bldg. 
 See Card on page 1153. 
 Vicksburg. Smith, Hirsh & Landau. 
 
 See Card on pase ll.'i4. 
 
 MISSOURI. 
 
 St. Louis. R. P. Williams. 
 
 Of R. P. and C. B. Williams. Third Nat'l Bank Bldg. 
 See Card on page 1154. 
 
 NEBRASKA. 
 
 Omaha. A. H. Burnett. 
 
 General Attorney for Sovereign Camp, Woodmen of 
 the World. Woodmen of the World Bldg. 
 
 See Card on page 1154. 
 
 NEW YORK. 
 Buffalo. Duekwitz. Tliayer & Tuttle. 
 
 D. S. Morgan Bldg. 
 See Card on page 1154. 
 
 New York. James C. De La Mare. 
 
 Of De La Mare and Morrison. 299 Broadway. 
 
 See Card on page 1155. 
 
 Bayard P. Holmes. 
 
 Of Hooper and Holmes Information Bureau, Inspec- 
 tion of Risks, Investigations of Claims, etc. 
 
 37 Nassau St. 
 
 See Card on page 1135. 
 
 NORTH CAROLINA. 
 Greensboro. Robt. C. Strudwiek. 
 
 See Card on page 1155.
 
 LIHT OF LA wvf.hh 1045 
 
 NORTH DAKOTA. 
 
 Gnind Forks. Geo. A. Baug.s. 
 
 See Card on page 1155. 
 
 OHIO. 
 
 Akron. George W. Sii'bcr. 
 
 Of Grant, Sieber and Mather. Dobson Bldg. 
 
 See Card on page ll.^C. 
 
 CiiK'iimuti. Howjircl Ddiighiss. 
 
 Dickson Bldg. 
 
 See Card on ))age 1156. 
 
 Cleveland. II. W. Ewing. 
 
 Of Ewiug, Nieding and Kramer. American Trust 
 Bldg. 
 
 See Card on page 1150. 
 
 OKLAHOMA. 
 Guthrie. F. C. Hunt. 
 
 Billingsley Bldg. 
 See Card on page 1156. 
 
 PENNSYLVANIA. 
 Sharon. J. A. McLaughry. 
 
 General Attorney for Protected Home Circle. 
 
 TENNESSEE. 
 
 Chattanooga. Thomas & Thomas. 
 
 Temple Court. 
 
 See Card on page 1157. 
 
 Kingslnn. W. H. Dietz. 
 
 See Card on page 1156. 
 
 Meinpliis. Brown & Anderson. 
 
 Memphis Trust Bldg. 
 
 See Card on page 115". 
 
 F. Zimmerniann. 
 
 General Attorney for Supreme Hive Ladies of the 
 Maccabees of the World. Tennessee Trust Bldg. 
 
 See Card on page 1157. 
 
 TEXAS. 
 
 Clehiirne. Ilciiry P. Brown. 
 
 Of Brown and Lomax. 
 See Card on page lloS. 
 Galveston. Kleberg- & Neethe. 
 
 Levy Bldg. 
 See Card on page 1157.
 
 1046 
 
 FRATERNAL SOCIETY LAW 
 
 San Ajitonio. Onidn & Henry. 
 
 Kampmann Bldg. 
 See Card on page 1158. 
 
 SOUTH CAROLINA. 
 
 Charleston. M. Rntledge Rivers. 
 
 Of Burke, Rivers and Erckmann. 
 See Card on page 1158. 
 
 SOUTH DAKOTA. 
 
 Sioux Falls. I'. S. G. Clierry. 
 
 See Card on page 1159.
 
 INDEX 1Q47 
 
 INDEX. 
 
 (References are to pa^es.) 
 ABSENCE: 
 
 Seven years; what must be proven (<ja.), li:j. 
 . Disappearance of member (Ga.), 113. 
 
 Death, presumption of, from seven years' absence (111.), 170. 
 
 Death, presumption of, from absence (Kas.), 31.3. 
 
 Disappearance; presumptions; absence for seven years (Kas.), 314. 
 
 Disappearance; delay in furnishing proofs of deatli (Kas.), 323. 
 
 Death, presumption of, from absence of seven years; fugitive (Ky.), 336. 
 
 Death, when presumed from absence (Mo.), 600. 
 
 Death, when presumed from absence of seven years (Mo.), 600. 
 
 Disappearance for seven years (Mo.), COO. 
 
 Death presumed from absence; compromise of claim valid though member 
 be living (X. Y.). 728. 
 ACCIDENT: 
 
 Accidental death, when presumed (La.). 364. 
 
 Accident insurance (Mass.), 445. 
 
 Accidental poisoning; suicide (Jlich.), 4S0. 
 ACCORD: 
 
 And satisfaction (Ul.K 163. 
 
 Ajid satisfaction; compromises (Mass.). 43!). 
 
 And satisfaction (N. Y.), 722. 
 
 And satisfaction (Vt.). 959. 
 
 See Compromises. 
 ACCOUNTING: 
 
 ^Mfiiilpcr cannot bring ^uit for (X. Y.), 731. 
 ACQUIESCENCE: 
 
 By member in ruling of society (ilich.), 483. 
 
 Of member in suspension (Mo.), 591. 
 ACTION AT LAW: 
 
 Suit by wrong name (Colo.), 59. 
 
 See Suit. 
 ADMINISTRATOR: 
 
 Suit by. on certificate: when proper (Vt.). 900. 
 ADMISSIONS: 
 
 Of member binds beneficiaries (Ga.), 114. 
 
 Of member not to defeat claim of beneficiary (Ind.). 243. 
 
 Of member not admissible against Ijcneficiar}- (Ind.), 232.
 
 
 1018 FRATERNAL SOCIETY LAW 
 
 ADMISSIONS— Continued: 
 
 Of beneficiary in proofs of death (Kas.), 327. 
 
 Of member, as evidence (Neb.), 648. 
 
 Of members (N. D.), 772. 
 ADOPTION: 
 
 Of constitution illegally (D. C), 98. 
 
 Adopted child is a dependent (111.), 16.5. 
 
 Adopted child as sucli (Me.i. 388. 
 ADVANCE PAYMENTS: 
 
 To be applied, when (la.), 277. 
 
 Forfeiture for failing to pay lilinn.i. o'.ii. 
 
 Application of (N. D.), 769. 
 
 Application of (Wash.), 993. 
 AFTER-ENACTED LAWS: 
 
 Are valid it within charter powers of association and not contrary to laws 
 of the State (Ala), 7-8. 
 
 Are valid (Ala.), 10-11. 
 
 Incontestability clause changed by (Ala.), 8. 
 
 Governing suicide, valid (Ala.), 7-S. 
 
 Ultra vires contracts (Cal.), 48. 
 
 Wlien valid (Ca!.), 48. 
 
 As to sick benefits (Cal.), 43. 
 
 When valid (Cal.), 33. 
 
 Change of beneficiary (Cal.), 34. 
 
 Cannot reduce aniovuit of certificate iCa.). 111. 
 
 Effect of (Cal.), 40. 
 
 Change from post mortem to advan -c assessment plan valid (Colo.), 55. 
 
 Are valid (Colo.), 54. 
 
 Ai-e valid (Conn.), 70. 
 
 As to rights of beneficiary (Conn.), 71. 
 
 Respecting beneficiaries (Del.), 83-84. 
 
 Prospective in operation unless otherwise expressed (D. C), 97. 
 
 Effect of (Ga.), 114. 
 
 Cannot reduce amount of certificate (Ga.). 111. 
 
 How far binding (Ga.), 109-110. 
 
 Suicide, sane or insane (Ga.). 112. 
 
 Suicide laws are reasonable (111.), 164. 
 
 Suicide laws valid (111.). 163-164. 
 
 State laws; what do not afi'cct existing contracts (111.), 161. 
 
 When valid (111.), 197. 
 
 What are reasonable and binding (111.), 194. 
 
 Valid though not adopted in formal way (111.), 193. 
 
 Reasonable increase of rates (111.). 193. 
 
 Valid as to extension of class of beneficiaries (111.). 190. 
 
 Society has jiower to amend laws, when (111.), 193. 
 
 Saloon laws, valid (111.). 189. 
 
 When retroactive (111.). 189. 
 
 Impairment of contracts (III.). 187.
 
 I 
 
 INDEX 2049 
 
 AFTER-ENACTED LAWS— Continued: 
 
 Enlarging class of beneficiaries (111.), 1S4. 
 
 Valid as to existing contracts (111.), 100. 
 
 Reserve power (la.), 294. 
 
 Void amendments (la.), 282. 
 
 When void (la.), 283. 
 
 Eflject of (Iowa), 280. 
 
 Change of plans, creation of classes (Ind.), 245-247. 
 
 Are binding; incontestable contracts amended (Ind.), 248-250. 
 
 Changing incontestable clause (Ind.), 255. 
 
 In mutual society (Kas.), 327. 
 
 Time to sue (Kas.), 321. 
 
 Prohibited occupations (Kas.), 313. 
 
 After death of member; eflfect of (Ky.i. 337-33S. 
 
 State statutes (Ky.), 337-338. 
 
 Reduction of benefits (La.), 303. 
 
 As to suicide (La.), 365-300. 
 
 Aie binding (La.), 300. 
 
 Limitations regarding bringing suit (JIass.), 439. 
 
 Raising of rates (Mass.), 441-442. 
 
 Pioviding for emergency (Mass.), 441-442. 
 
 Duty of society to perpetuate itself (ilass.), 443. 
 
 Society has right to make necessary changes in (ilass.), 443. 
 
 Breach of contract (Mass.), 447. 
 
 Cannot arbitrarily reduce amount of certificate (Mass.), 447. 
 
 Creating new classes (Mass.), 447-448. 
 
 Reduction of benefits (Mass. I, 440. 
 
 State laws, effect of (Mich.). 478. 
 
 Assent of members to (Mich.), 485. 
 
 Are binding (Mich.), 468. 
 
 By boards of directors (Minn.), .529. 
 
 !Must be reasonable (Minn.), 531. 
 
 Respecting resort to courts (Minn.). 517. 
 
 Unreasonable provisions of (!Minn.). 518. 
 
 As to occupations unreasonable (Minn.). 525. 
 
 Binding, though not adopted in regular mode (Miss.). .5.56. 
 
 Suicide by-law valid (Jliss.), 557. 
 
 Are binding (Miss.), 551. 
 
 Members receive benefits of (Miss.), 552. 
 
 Members receive benefits of and are bound by (!Miss.). .553. 
 
 When they may reduce amount of b->nefici;uy's claim (^In.l. 608. 
 
 When valid (Mo.), 60S. 
 
 Effect of (Mo.), 579. 
 
 Affecting amount of benefit, when valid (jMo.), 586; 
 
 Valid when within terms of agreement (5Io.). 586. 
 
 How far binding (Mo.). 586. 
 
 Suicide law not binding (Mo.). 586-587. 
 
 Conflict between State courts CMo.). 5S7 :
 
 r 
 
 1050 FRATERNAL SOCIETY LAW 
 
 AFTER-ENACTED LAWS— Continued: 
 
 How far binding (Mo.), 594. 
 
 Valid and aftVct existing contracts (Mo.). 395-596. 
 
 When not Ijinding (Mo.), 59fl. 
 
 To what extent valid (ilo. ), 597. 
 
 Aj-e valid (Neb.), 046. 
 
 Collateral attack of (Xeb.), 645. 
 
 Suicide laws (Neb.), 645. 
 
 As to representative government (Xeb. ). 049. 
 
 When binding (Neb.), 055. 
 
 Binding: no vested rights (X. H. i, 09(1. 
 
 Liijuor law valid (N. J.), 690. 
 
 Suicide law (N. J.), 091. 
 
 Cutting down benefit (N. J.), 692-693. 
 
 Must be reasonable (N. J.), 693. 
 
 How far binding on contracts outstanding (X. \'.), 716. 
 
 ^^"hen violation of after-enacted occupation law will not void contract (N. 
 
 Y.). 717. 
 When not valid (N. Y.), 717. 
 Suicide laws not valid (N. Y'.), 718. 
 When not valid (N. Y.), 719. 
 When valid (X. Y'.), 723. 
 Reducing benefit, void (N. Y".), 724. 
 When valid; effect of (N. Y.), 724. 
 Suicide laws void (N. Y.), 724. 
 Suicide law not valid (X. Y.), 725. 
 AVill not be permitted to destroy contract (X. C), 747. 
 When valid (X. C), 748. 
 When not valid (X. C), 748. 
 When not valid (X. C), 751. 
 When valid (N. C), 751. 
 Suicide law valid (Ohio). 791. 
 Suicide law valid (Pa.), 842. 
 Bind insane member (Tenn.l. 900. 
 Increasing rates (Tenn.), 901. 
 Are valid (Tenn.). 902. 
 Reducing benefit ultra vires (Teiui.), 90S. 
 Are valid (Tenn.), 909. 
 Are strictly construed (Tex.), 925. 
 Are valid (Tex.). 929. 
 Effect of, on beneficiaries (Tex.). 930. 
 Must be published (Tex.), 938. 
 Effect of agreement to be bound by (Tex.), 9.'?8. 
 When amounting to repudiation, void (Tex.), 939. 
 Cannot reduce amount of certificates (Tex.). 041. 
 Are valid (Va.), 977. 
 Reasonable and valid (Wis.), 1018. 
 AVlipn valid (Wis.). 1019.
 
 I 
 
 I 
 
 INDEX 1051 
 
 AFTER-ENACTED LAWS— Continued: 
 
 Valid; iiroliibtcd (ic'ciipiilions (Wis.), 1023. 
 
 How fill- lawful (Wis.). 1024. 
 
 See Amendments. 
 Readjustment. 
 AGE: 
 
 ■ Uf applicants (111.), 171. 
 
 No estoppel under ultra vires contra<t (111.). Kill. 
 
 Warranty as to (Iowa), 21)0. 
 
 Error in stating (Ind.), 250. 
 
 Warranty as to (Mp.), ;«9. 
 
 Misrepresentation , as to; ouHiprdinise (Jld.), 4()S. 
 
 Misrepresentation as t<i; payments rorl'cited (Minn,), 521. 
 
 Warranty as to (Minn.), 521. 
 
 Misrepresentation as to; waiver of laws (Minn.), 53:3. 
 
 Statements as to. in previous applications to other societies admissible 
 (]\linn.), 510. 
 
 Statements of member.s as to, competent to pru\c true af^e (ilinn.). ."iK). 
 
 Restrictions as to (Neb.), 639. 
 
 Warranty and evidence respecting (I'a.), 844. 
 
 Warranty respecting must be kept (Pa.), 843. 
 
 Statement as to, in application (Tenn.), 90(1. 
 
 What may be received as evidence of (Tenn.), 900. 
 
 False statement as to (Wash.), 998. 
 AGENCY: 
 
 False statements made by agent in a|)plication estops societ}' (Cal.), 34. 
 
 When subordinate lodge not agent of grand lodge (Cal.), 43. 
 
 When ollicers of local lodge are agents (Colo.), 58. 
 
 Of local olKcials (D. C), 99. 
 
 Of local officers; estoppel (D. C), 98. 
 
 Beneficiary; estoppel (Ga.), 114. 
 
 Agents and officers, distinction between (Ga. ). 107-108. 
 
 Agent's power; estoppel (Ga.), 113. 
 
 Agent's negligence, liability for (Hawaii). 129. 
 
 Of collecting officer (Ida.), 139. 
 
 Of subordinate lodge (111. J, 197. 
 
 Of subordinate lodge (111.), 186. 
 
 May be implied from adopted acts of agent (111.), 170. 
 
 Of local lodge officers (111.), 167-108. 
 
 Agents' agi'eements waiving laws (Iowa), 285. 
 
 Agents, waivers by (Iowa), 294. 
 
 Agents, societies not to employ paid (Iowa). 279. 
 
 Agent, knowledge of, imputed to society (Iowa), 285. 
 
 Local officer agent of society (Iowa). 297. 
 
 In collecting assessments; course of dealing (Iowa), 296. 
 
 What determines (Iowa), 296. 
 
 Agents may not be employed except in restricted sense (In<l.), 254. 
 
 Agent's knowledge imputed to principal (Ind.), 239.
 
 1052 FRATERNAL SOCIETY LAW 
 
 AGENCY— Continued: 
 
 Imputing knowledge (Ind.), 233. 
 
 Waiver and estoppel (Ind. I, 234. 
 
 Waiver of agent; imputed knowledge (Ind.), 239. 
 
 Of local officers (Ind.), 241. 
 
 Of collecting officer (Ind.), 241. 
 
 Waiver of grounds of forfeiture by (Ind.), 242. 
 
 Local secretary agent of supreme body (Kas.), 320. 
 
 Of local secretary (Kas.), 318. 
 
 Assistant to collecting officer; estoppel (Kas.), 31G-3I7. 
 
 Agent, tilling up application by (La.). 3S(i. 
 
 Local officers cannot waive laws (JIass.). 445. 
 
 Agent's knowledge does not waive warranty (Mich.), 470. 
 
 Of local lodge (Mich.), 488. 
 
 Of local lodge; waiver of laws by (Mich.), 492. 
 
 Agent's knowledge of false answers not imputed (Minn.), 524. 
 
 Of local officials (Mo.), 602. 
 
 Of local officer (Mo.), 591. 
 
 True rule as to, and extent of (Mo.), 595. 
 
 Of local lodge respecting payment of benefits (Xeb.), 637. 
 
 Duty of local officials (Neb.), 637. 
 
 Of local officials (Neb.), 643. 
 
 No right to waive laws (Neb.), 046. 
 
 Local officials (Neb.), 647. 
 
 Waiver of laws through (Neb.), 647. 
 
 Waivers by (Neb.), 654. 
 
 Local official cannot waive laws (Neb.), 654. 
 
 Promoter'.s acts not binding on society (N. D.), 769. 
 
 Of local officials (N. C), 748. 
 
 Of local officials (N. C), 749. 
 
 Of local official; when knowledge inipvited (N. C), 752. 
 
 What acts are not imputed to society (N. C.). 755. 
 
 Officers have no power to waive laws (N. J.), 696. 
 
 Laws cannot be waived except upon express authority; member has notice 
 of laws (N. J.), 696. 
 
 Provisions against power to bind society void' (N. Y.), 723. 
 
 Medical examiner is agent of society exclusively regardless of contract pro- 
 visions (N. Y.), 727. 
 
 Principal not bound by unauthorized acts (Okla.), 812. 
 
 Of subordinate lodge (Okla.). 810. 
 
 Agent'.s knowledge of false statements not admissible (Pa.), 845. 
 
 Agent as witness, when competent (Pa.), 834. 
 
 Agent, when not personally liable (E. I.), 851. 
 
 Authority of collector (R. L), 850. 
 
 Waiver and estoppel (R. I.), 850. 
 
 Of medical examiner that of society (1!. J.). 852. 
 
 Of medical examiner limited (R. I.), 852. 
 
 Not shown by deolaratifins of agent (S. C), 861.
 
 INDEX 1053 
 
 AGENCY— Continued : 
 
 Of local lodge in -nitiating iiiembiMs (S. C), >S(i.3. 
 
 Delivery of proofs of loss to (S. D.), 882. 
 
 Of medical examiner (Tenn.), 903. 
 
 Of medical examiner limited (Tenn.), 908. 
 
 Waiver of laws by local lodge oflicer (Tex.), 923. 
 
 Of organizer, extent of (Tex.), 831. 
 
 Medical examiner's knowledge impiili'd lo society (Tex.i. 1131. 
 
 Of medical examiner (Tex.), !)44. 
 
 Local officials cannot waive laws (Utali), 949. 
 
 Of local lodge and officials (IJtali), 950. 
 
 No waiver of laws by custom of local officers (\'a.), 974. 
 
 Of general and local agents (.Vt.), 958. 
 
 Stipulations against (Wash.), 994. 
 
 Proofs of loss (Wash.), 995. 
 
 Provision against waivers (Wash.), 997. 
 
 Fraud between agent and applicant (Wash.), 9!I8. 
 
 Waivers by course of dealing with members (Wash.), 998. 
 
 Extent of power of agent to waive conditions (W. Va.). 1001. 
 
 Of local official (W. Va.), 1001. 
 
 Contract; equitable estoppel (W. Va.), 1001. 
 
 Waivers through, not favored (Wis.), 1019. 
 
 Of local officer, extent of (Wis.), 1024. 
 ALIMONY: 
 
 Fund exempt from (Mich.), 47li. ' 
 
 ALABAMA: 
 
 There is no statute law of this State relating to Fraternal Societies. For 
 digest see 7. 
 ALASKA, DISTRICT OF: 
 
 Statute relating to fraternal societies, 14-15. 
 
 Fraternal societies exempt from operation of insurance laws, 14. 
 
 Must file certificate in office of Secretary of District, 14. 
 
 Must be qualified to carry on business in some State of the United .States, 14. 
 
 Must file power of attorney Avith Clerks of District Courts, 14. 
 
 In absence of attorney so appointed, process nuiy be served on Clerk of 
 
 District Court, 14-15. 
 
 Such Clerk shall then immediately notify such company, and no proceed- 
 ings had within sixtj* days, 15. 
 Secret or fraternal societies not fire or insurance companies, 15. 
 The term "insurer" defined, 15. 
 
 Violation of statute; punishment, 15. 
 Fees for filing certificate and power of attorney. 15. 
 AMBIGUITY: 
 
 See Construction. 
 AMENDMENTS: 
 
 To charter, effect of (Cnl.). 3S-.'^9. 
 To charter (D. C), 97. 
 Constitution (D. C), 97.
 
 1054 FRATERNAL SOCIETY LAW 
 
 AMENDMENTS— Continued: 
 
 To cliartci. tni^tccs cniiniit fHt'ct (Un\a). 281. 
 
 Of fundamental laws (Iowa), 280. 
 
 Of laws after cause for benefits accrue (Ind.), 233. 
 
 For amendments to laws see After-Enacted Laws. 
 APPEALS: 
 
 Limited time to effect (Kas.), 311. 
 
 Time to perfect (Kas.), 314. 
 
 Errors on (Jlinn.), 520. 
 
 Appeals from void jndgiiient not necessary (Wis.). 1023. 
 APPLICATION: 
 
 Acceptance of, waives defects (Ark.), 27. 
 
 Effect of, where one fails to be initiated (Ark.j, 25-20. 
 
 False statement in, when fault of agent estops society (Gal.), 34. 
 
 Refusal of applicant to complete (Colo.), 61 -(i2. 
 
 Failure to complete (Colo.), 61-02. 
 
 Effect of naming beneficiary in (Ga.), 108. 
 
 Misstatements to medical examiner (Ga.), 110. 
 
 Agent's negligent delay in forwarding; liability therefor (Hawaii), 129. 
 
 False statements in, known by local lodge (111.). ISO. 
 
 Applicant's age (111.), 171. 
 
 Statements of applicant previous to making (Iowa). 290. 
 
 Copy of, to be attached to certificate (Iowa), 289. 
 
 Answers in, eonstnied liberally in favor of applicant (la.), 287. 
 
 False statements in; knowledge of agent imputed to society (lowii), 285. 
 
 False answers in (Jowa), 284. 
 
 Death of applicant before liability begun (Ind.). 2.34. 
 
 Misstatements in. regarding habits (KJ^), 331. 
 
 Copy of, to be attached to certificate (Ky.), 332. 
 
 Untrue answers in (Iowa), 362. 
 
 Filled out by agent (Me.), 386-387. 
 
 Material representations (Me.), 387. 
 
 Misrepresentation avoids contract (Md.), 40S-400. 
 
 Misrepresentation in (ild.). 415-416. 
 
 False answers in, by agent (ilich.), 470-474. 
 
 Warranties in (Minn.), 520. 
 
 And examination conditions precedent to issuance of certificate (Minn.), 516. 
 
 Member bound by statements in (ilo.), 584. 
 
 Materiality of representations a question for the jury (Nev.). 658. 
 
 Duty respecting change of health (N. D.), 770. 
 
 Misrepresentation in, avoids contract (X. Y.), 722. 
 
 Copy of, to be attached to certificate (Pa.), 843. 
 
 Delay in passing upon, does not create contract (S. I).). SSO. 
 
 What must be stated in (Tenn.). 903. 
 
 Delay in acting upon, not actionable (Tcnn.), 90S. 
 
 Statements in, respecting habits (Texas), 930. 
 
 For reinstatement; representations in (Texas), 933. 
 
 Questions in, as to habits construed (Texas), 940.
 
 INDEX 1055 
 
 APPLICATION— Continued : 
 
 >lisslatriii('iils ill ('I'cxas), 111:!. 
 
 Contlict between, and written receipt (Wash.), 900. 
 
 Jlatorial questions and answers in (Wis.), 1021. 
 APPROXIMATE CAUSE: 
 
 Wlial is iXc-b.), ()4U. 
 
 Of death in suicide eases (Neb.), 040. 
 ARKANSAS: 
 
 Statute j;(ivi'ininj; rralcnial societies, 10-1!). 
 
 "Insiiiaiice iUueau" to execute insurance hiws. 10. 
 
 Auditor of State may appoint auditors, examiners, etc., to examine books, 16. 
 
 Jiay summon and examine persons rebitivu thereto, 10. 
 
 ilay revoke license, 10. 
 
 Seal of Auditor's office is seal of Insurance Department, 10. 
 
 "Fraternal beneficiarj' order, society or association" defined, lG-17. 
 
 Fraternal society may create and maintain reserve or emergency fund, 17. 
 
 Fraternal societ.v must not be operated for profit. 17.. 
 
 Society's funds to be derived from assessments, 17. 
 
 Fraternal societies exempt from insurance laws, 17. 
 
 Annual report to be filed with State Auditor, 17. 
 
 Fee for tiling annual report, 17. 
 
 Society must file bond with Auditor of State annually, 17-18. 
 
 Agent or solicitor, violation of statute, punishment, 18. 
 
 ^Meetings of supreme lodge, 18. 
 
 Foreign societies, conditions for doing business, 18. 
 
 Service of process, on whom valid, 18-19. 
 ARKANSAS CONTRACT: 
 
 Certificate held to be (Ark.), 21. 
 ARIZONA: 
 
 Xo statute law in the territory governing societies, 29. 
 ASSESSMENT INSURANCE: 
 
 Distinctions between, and old line insurance (JIo.), 581. 
 ASSESSMENT PLAN: 
 
 (If insiiiaiice. wliat is (Mo.), 582. 
 ASSESSMENTS: 
 
 Xon-paymeut of, forfeiture (Ark.), 27. 
 
 Forfeiture for non-pa3'ment of (Cal.), 43. 
 
 Non-payment of; forfeiture (Cal.), 32. 
 
 Extra, for hazardous vocations (Colo.), 54-55. 
 
 Tender of; estoppel (Colo.), 58. 
 
 Change from post mortem to advance (Colo.), 55. 
 
 Right to collect limited (111.), 177. 
 
 Surplus funds may be applied to (111.), 177. 
 
 Notice, requirements of (111.), 183. 
 
 Jlember cannot be sued for (111.), 196. 
 
 Printing and mailing notices required (111.), 102. 
 
 Absence of collecting officer (Iowa), 295. 
 
 Course of dealing as to collections (Iowa), 296.
 
 1056 FRATERNAL SOCIETY LAW 
 
 ASSESSMENTS— Continued : 
 
 To be levied only on class responsible for loss (la.), 2S2. 
 
 Advance, need not be continually paid (Iowa), 277. 
 
 Application of advance (Iowa), 277. 
 
 Prompt payment of (Ind.), 235. 
 
 Are niembeis debtors to the society (Ind.), 229. 
 
 Payment after forfeited member's death (Ind.), 235. 
 
 Right to increase payments and readjust rates (Kas.), 325. 
 
 Return of, on void contract (Ky.), 332. 
 
 Duty to levy (Mass.), 446. 
 
 Payments of, after member's deatli (iJd.). 412. 
 
 Collection of, may be enforced (Wich.), 491. 
 
 Notice of, under after-enacted laws (Minn.), 532. 
 
 Amendments as to, by boards of directors (Minn.), 529. 
 
 After-enacted laws binding (Miss.), 551. 
 
 Paid by stranger; right to recover (Miss.), 554. 
 
 Increasing members' payments (Mich.), 469. 
 
 Receiver may enforce collection of (Mich.), 491. 
 
 Tenders of, refused, need not be repeated (Mich.), 48S. 
 
 Waiver of by-laws as to prompt payment allowed (Mo,), 594. 
 
 The presumed amount of one (ilo.), 583. 
 
 Receipt of, in contract not subject to be questioned (Mo.), 582. 
 
 When definite and fixed (Mo.), 581. 
 
 Rates subject to change (Mo.), 578. 
 
 Societies not restricted to (Mo.; , 602. 
 
 Notice of (Neb.), 653. 
 
 Subject to increase to meet society's requirements (Neb.), 646. 
 
 Required monthly if called (Neb.), 644. 
 
 Can a member set off his claim of losses against society's claim for assess- 
 ments, (N. J.), 684. 
 
 Being common burdens of all, no death cfaim is entitled to preference (N. 
 Y.), 731. 
 
 Prompt payment of, not waived by occasional favors (N. C), 754. 
 
 By-law providing for mailing notices of, valid (N. C). 753. ' 
 
 Members cannot refuse to pay, for losses occurring during membership 
 N. C), 752. 
 
 Payment of, by checks through mails (N. C), 746. 
 
 Paid in advance; application of (N. D.). 769. 
 
 Recoverable against forfeited member (N. H.}, 673. 
 
 Members' signing laws providing for, not essential (Ohio), 792. 
 
 ^Vhen to be paid by lodge (Ore.), 820. 
 
 Worthless check not payment of (Pa.), 835. 
 
 Society holds members' payments as trust fund (Pa.). 839. 
 
 Against members are not debts recoverable at law (R. I.), 854. 
 
 Members presumed to know riglits under (R. I.), 851. 
 
 Not to be levied for subsequent losses after receivership (R. I.), 857. 
 
 Forfeiture provision applies (o all members (S. C), 866. 
 
 Forfeiture for failure to p;iy (S. C), 850.
 
 INDEX 1057 
 
 ASSESSMENTS— Contipued: 
 
 When tenders of, are waived (Tenn.), 911. 
 
 When right to levy limited (Tonn.), 911. 
 
 No presumption as to legality of (Tenn.), 904. 
 
 Aftcrenaetcd laws increasing rates valid (Tenn.), 901. 
 
 Wailing draft not payment of (Tex.), 945. 
 
 Paid by creditors (Tex.), 942. 
 
 Payment of, under protest, is not election to accept reduced contract (Tex.), 
 939. 
 
 Agency of local lodge, etc. (Utah), 950. 
 
 Duty of lodge to pay, when there are funds in hand (Utah), 950. 
 
 Payments by husband on wife's certificate (Va.), 979. 
 
 Meaning of stipulation that rates may be changed (Va.), 976. 
 
 Must Ix" paid by insane member (Wash.), 997. 
 
 N. F. C. mortality table approved (Wash.), 993. 
 
 Receiving overdue payments (Wis.), 1020. 
 
 Waivers of prompt payments of (Wis.), 1017. 
 ASSIGNMENT: 
 
 Of certificates to creditors enforceable in equity (111.), 188. 
 
 Of certificate (111.), 195. 
 
 Of fund valid (111.), 179. 
 
 Of fund under certificate valid (111.), 178. 
 
 Beneficiary has no interest during member's life to be assigned (111.), 162. 
 
 Of certificate as a change of beneficiary (Ind.), 242. 
 
 Of benefit fund to creditors (Mass.), 450. 
 
 Of certificate valid unless prohibited (Md.), 415. 
 
 Of benefits (Minn.), 530. 
 
 Of amount to be received under certificate; when valid (Mo.), 588. 
 
 Not wagering contract (Nev.), 659. 
 
 Form not essential (N. C), 756. 
 
 Valid, when (N. Y.), 730. 
 
 Of interest in certificate (Ore.), 819. 
 
 Valid as between assignor and assignee (Tex.), 926. 
 ATTACHMENT: 
 
 Of funds (Ariz.), 29. 
 
 Of funds of society by creditor (Cal.), 36. 
 
 Construction of exempting statute (Conn.), 71. 
 
 Of fund for debt, exemption (111.), 190. 
 
 Of benefit fund (III.), 178. 
 
 Benefit fund not subject to creditors' claims (Miss.), 555. 
 
 See Creditors. 
 Garnishment. 
 ATTORNEY: 
 
 Power of, to insurance commissioner (N. C), 748-751. 
 
 Fees not allowed out of fund in interpleader cases (Tex.). 936; (Ga.), 110. 
 AVERMENTS: 
 
 Of performance requisite in pleading (Ind.), 232. 
 
 67
 
 1058 FRATERNAL SOCIETY LAW 
 
 BENEFICIARIES: 
 
 Statute of State enlarges class of (A]a.), 0. 
 
 Children of different wives equally eligible to benefit (Ala.), 9-10. 
 
 Children born previously and children born subsequently to contract equally 
 
 eligible to benefit (Ala.), 9-10. 
 Childi-en surviving, who are meant (Ala.). 9-10. 
 Trustees for (Ala.), 9-10. 
 
 Substitution on death of original beneficiary (Ala.), 9. 
 Class of, enlarged by State statute (Ala.), 9. 
 Son of member's deceased wife by former husband cannot take benefit (Ala.), 
 
 8-9. 
 Change of (Ark.), 25-26. 
 Heirs at law, who are (Ark.), 23-24. 
 Legal heirs (Cal.)', 40. 
 
 Effect of divorce "of wife Avhen named as (Cal.), 41. 
 Fiancee as such (Cal.), 42. 
 Change of; compliance with laws (Cal.), 44. 
 Interest of, a mere expectancy (Cal.), 45. 
 May be changed at will of member (Cal.), 45. 
 Designation of unmarried member's mother valid after his marriage (Cal.), 
 
 36. 
 Are creditors of society and may attach funds (Cal.), .36. 
 Effect of divorce of .(Cal.), 41-42. 
 Eights of fiancee (Cal.), 42. 
 Cannot be changed by will (Cal.). 40. 
 Heirs at law. who are (Cal.). 40. 
 Sister-in-law (Cal.), 35. 
 
 Right to name not a vested right (Cal.l. 34. 
 Dependency (Cal.), 33. 
 
 Extension of class by constituticm and by-laws (Cal.). 3(1 
 Change of (Colo.), 55. 
 Have no vested interests ( Colo, i . 55. 
 When have vested interests (Colo.), .50. 
 
 Change of (Colo.), 56. 
 Vested interests (Colo.), 57. 
 ^^Iio are heirs at law (Colo.), 57. 
 Presumption of legality (Colo.). 57-58. 
 Change of; vested interest (Colo.), 50. 
 Divorce of wife; legal heirs (Colo.), 60-61. 
 As affected by aftei'-enaeted laws (Conn.). 71. 
 No vested interest (Conn.), 71-72. 
 ^Members' "family" (Conn.), 72. 
 Laws at date of death govern iConn.). 72. 
 Statute not retroactive (Del.). 83-84. 
 ^X^\on creditor is entitled to take fund as (Dcl.K 83-84. 
 Definition of ''family" (Ga.), IIC. 
 "Family" (Ga.), 115. 
 Bound bv member's admissions (Ga.). 114.
 
 INDEX 1059 
 
 BENEFICIARIES— Continued : 
 
 Society not estopiiod to i|iipsli(iii lU'sifjiiiitiiiii of |t;a.i. HI. 
 
 Xot entitled to take (Ga.), 11:!. 
 
 Ke.soit to civil courts (Ga.), 112. 
 
 '•Ne.\t oC kin" (Ga.), 112. 
 
 Death (jI. Ijct'oro member (Ga.). I(»s-I0!l. 
 
 I'erson named in application (<ia.l, KIS. 
 
 l.ej;al licirs (Hawaii), 129-130. 
 
 Dependency (Hawaii), 129. 
 
 Ila\e no vested or assij;nal>le interest dnriii^' life ot' member (111.), 102. 
 
 Entitle<l to bcndit ol' construction of contraet where two are possible (111.), 
 
 101. 
 Indcr .Missouri slatntc (111.1, 1S4. 
 iMay assi^ni cxpe<'ted benclit (111.), 178-17!!. 
 Assignment of contingent interest by (111.), 179. 
 Kesort to civil courts cannot be denied to (111.), ISl. 
 Enlarging cla.sses by amendments (111.), 184. 
 Class of, in Missouri, statute construed (111.), 184. 
 Death in common disaster with member; no presumption of survivorship 
 
 (111.), 185. 
 Have no voted interests in certificate (111.), 185-180. 
 Death of, in I'omnion disaster with member (111.), 186. 
 Jlistake of member, effect of (111.), 188. 
 
 Rights of creditors to fund as, to be enforced in equity (111.), 188-189. 
 Class of, may be extended by after-enacted laws (111. I. 190. 
 Wlien creditors may take fund as (111.), 190. 
 Eights of heirs at law (111.), 191. 
 May deny statements in proofs of death (III.), 191. 
 Bj'-laws respecting, may be waived (III.), 190. 
 Have no vested i"ights; change of (111.), 190. 
 Class of, may be restricted (111.), 195-19C. 
 Eight to name by will (111.), 197. 
 
 Equitable rights in certificate nmy be enforced (111. I. 198. 
 Jlember's marriage does not all'ect designation made (111.), 198. 
 Not affected by member's marriage (III.), 19S. 
 May deny statements in proofs of death (III.), 175. 
 Failure of designated; order of heirship (III.), 173. 
 Restricting class of (111.), 195-190. 
 
 Heirs at law take where member murdered by (111.). 173. 
 Murder of member by, forfeits rights (III.). 172. 
 Society maj' restrict statutory classes (111.), 167. 
 Dependency at member's death determines eligibility (111.). 100. 
 Eligibility at maturity of contract determines right (III.), 106. 
 Conflict between charter and statutory provisions (111.), 166. 
 Adopted child is dependent (111.), 165. 
 
 Construction to be given to ambiguous designation (Ill.l, 105. 
 Niece by affinity (Iowa), 274-275. 
 Wrong, payment to; suit by other claimant (Iowa). 275.
 
 1060 FRATERNAL SOCIETY LAW 
 
 BENEFICIARIES— Continued : 
 
 Ineffectual change of (Iowa), 276. 
 Change of (Iowa), 279. 
 Have no vested interests (Iowa), 280. 
 Change of; estoppel (Iowa), 280. 
 Divorced wife (Iowa). 283-284. 
 Change of; burden of proof I Iowa), 287. 
 
 Change of. One partly insane from impaired health may change (Iowa), 287. 
 Have no vested interests (Iowa), 288. 
 Change of (Iowa), 288-289. 
 
 Construction of terms of designation (Iowa). 289. 
 Change of (Iowa), 293. 
 
 Change of, must be in inannfr prescribed by laws (Iowa), 293. 
 Presumption that beneficiary is qualified (Iowa), 293. 
 Legal heirs include illegitimate children (Iowa), 293. 
 Change of; claimants cannot complain of waiver of laws (la.), 294. 
 Divorced wife competent (Iowa), 297. 
 
 Suit of, against third person to whom benefit was paid (Ind.l. 231. 
 Have no vested interests (Ind.), 232. 
 ^^ Fraud, effect of change of beneficiary through (Ind.). 234. 
 Not bound by admissions of member (Ind.), 232. 
 Have no vested interests (Ind.), 233. 
 Change of, through fraud (Ind.), 234. 
 Have no vested interests; change of (Ind.), 23(i. 
 
 Have no vested interests; failure to name new beneficiary (Ind.), 236. 
 Necessary averments in petition to recover (Ind.), 237. 
 Change of (Ind.), 242. 
 Have no vested interests (Ind.), 242. 
 Change of; assignment of certificate (Ind.), 242. 
 
 Claim of; admissions of member not sufficient to defeat (Ind.). 243. 
 Designation of I Ind.), 244. 
 J^'ot bound by coroner's inquest (Ind.), 250. 
 
 Ineligibility of, in suit, must be raised in pleadings (Kas.), 31.5. 
 Change of (Kas.), 316. 
 
 Are limited to statutory classes (Kas.), 320. 
 Change of; fraudulent inducements (Kas.), 326. 
 Admissions of, in proofs of death (Kas.), 327. 
 Surviving widow, defendants (Ky.), 337. 
 Second wife competent to take benefit (Ky.), 337. 
 Name — Idem sonans (La.). 3G3. 
 '■Family' (Mass.), 439-440. 
 Dependency (Mass.), 444. 
 
 Suit by executor of member (Mass.), 444-445. 
 Change of (Mass.), 445. 
 Children as (Mass.), 448. 
 Failure of (Mass.), 448-449. 
 Right of widow vs. executor (Mass.), 449. 
 Assignment to creditors (Mass.). 4,')0.
 
 INDEX lOGl 
 
 BENEFICIARIES— Continued : 
 
 Adopted clijld (Jle.), 388. 
 
 Kiglit to resort to civil courts not to be restricted (Md.), 409-410. 
 
 Remedies in society to be exluui.sted before resort is made to civil courts 
 (Md.), 410-411. 
 
 Benefits exempt from creditor's claims (Md.). 411-412. 
 
 Death of, before member (Md.). 414-415. 
 
 Cannot compel continuation of membership (Md.), 40s. 
 
 Assignment of ccrtiMcatc valid, when {^Id.}, 41.5. 
 
 Stepfather not a member of family of stepdaughter (^lich.), 47-5. 
 
 What laws determine (Mich.), 47(5. 
 
 Next of kin (Mich.), 477. 
 
 Change of, by after-enacted laws (Mich.), 478. 
 
 Right of, to contest change (Mich.), 484. 
 
 Have no vested interests (Mich.), 484. 
 
 Have right to contest change where mental capacity of member in ques- 
 tion (Mich.), 484. 
 
 Widow de facto (Mich.), 484. 
 
 Public policy (ilich.), 485. 
 
 Change of (Mich.), 485. 
 
 Change of; laws respecting, may be waived (.Mi<-li.). 4s(i. 
 
 Trustee may be designated (Mich.), 490. 
 
 Appointment of trustee (Mich.), 490. 
 
 Trust agreement for creditor (Mich.), 4(i7. 
 
 Insurable interest (Mich.). 4(17. 
 
 "Member of family" (Jlicli.). 4t!9. 
 
 Change of (Minn.), 527. 
 
 Have no interest in contract before maturity (Minn.). 528. 
 
 Have no vested interests (Minn.), 528. 
 
 Eligibility of stranger (Minn.), 530. 
 
 Change of (Minn.), 522. 
 
 Orphans, who are (Minn.), 523. 
 
 ■'Living issue" construed (Minn.), 525. 
 
 Limitations of law presumed to be known (Jliss.), 5.53. 
 
 AA'here stranger pays assessments (Miss.), 554. 
 
 Limited to class named in law (Miss.), 554. 
 
 Laws for changing (Miss.). 556. 
 
 Coerced marriage (Miss.). 551. 
 
 Disposition by will (Miss.), 551. 
 
 Legal representatives as (Mo.), 5.S2. 
 
 Have no vested interests (Mo.). 600. 
 
 Rules as to change (Mo.), 603. 
 
 Married adult son not a dependent (Mo.), 603. 
 
 Heirs at law, widow is (Mo.), 604. 
 
 WHiat is meant by dependency (Mo), 605. 
 
 Common law- wife may be (Mo.), 005. 
 
 Have no vested interests while member is living (Mo.), 606. 
 
 Right of member to designate new (Mo.), 606.
 
 1062 FRATERNAL SOCIETY LAW 
 
 BENEFICIARIES— Continued: 
 
 Rights of creditor (Mo.), 007. 
 
 No vested interest until niiitiirit3' of contract (JIo.). GOT. 
 Change of; when rules may be waived (Mo.), 608. 
 Family (Mo.), 608. 
 Have no vested interests (Mo.), 579. 
 Classes determined by laws of Missouri (Mo.), 588. 
 Rule as to changes of (Mo.), 589. 
 Designation rec)>iired (Mo.), 589. 
 May have equitable vested interests (Mo.). 590. 
 Changes of, made at will by member (Mo.), 590. 
 Rules as to change of (Mo.), 590. 
 Classes in Mi.ssouri and Illinois same (Mo.), 590. 
 Death lief ore member: rule as to (!Mo.), 593. 
 Change of (Mont.). 010. 
 
 AVaiver of laws respecting changes of (Mont.). 610. 
 Laws must be followed in making changes (Mont.). 611. 
 Change of, must be complete before member's death (Mont.). 611. 
 Pvights not affected by interpleader (ilont.), 611. 
 Creditors cannot be (Neb.), 634. 
 Change of: no vested interest (Neb.). 634. 
 Limited by statute (Neb.), 637. 
 Change of (Neb.). 639. 
 Change of; no vested interest (Neb.), 048. 
 Person not named as such has no right (N. C), 747. 
 Incompetent, not helped by society's interpleader (N. J.), 694. 
 Ante nuptial ])arol contract void (N. 3.). 694. 
 Heirs of beneficiary (N. J.), 094. 
 
 When interest vested and cannot be defeated by designation of new bene- 
 ficiary (N. Y.), 715. 
 Sister-in-law may be named as beneficiary (N. Y.). 715. 
 Laws lestricting class waived (N. Y.), 720. 
 
 AAHieu ultra vires act in naming one is waived (N. Y.), 720. 
 Change of, when effective (N. Y.), 724. 
 
 Payment to trustee no release against real claimant (N. Y.), 725. 
 AMiat is meant liy term heirs (N. Y.l. 725. 
 Change of; when valid (N. Y.). 720. 
 
 Change of; provisions for. in hiw exclusive (N. Y.). 726. 
 Dependency (Ohio), 794. 
 Change of; dependency (Oliiu), 794. 
 Change of (Ohio), 79."). 
 Change of (Ore.), 817. 
 
 Cliange of, must be in conformity with law (Ore.). 817. 
 Rights of, under interpleader suit (Ore.), 819. 
 
 Vested interest: Assigmnml of cipiitable interest by member (Ore.), 819. 
 Change of, must be in strict conloiinity witli law (Ore.). S19. 
 Naming of, by will (Pa.). 837. 
 "Nearest friend" Pa.), 838.
 
 INDEX 1063 
 
 BENEFICIARIES— Continued : 
 
 Not affected by subsecjueut clianges in law (Pa.), S3!). 
 No vested interest (Pa.), 839. 
 Right of divorced wife (Pa.), 839. 
 Brother as trustee for wife (Pa.). 840. 
 Rights of creditors (Pa.), 840. 
 Right of member to change, absolute (Pa.), 841. 
 After death of member is creditor of society (Pa.). 843. 
 "Heirs at law" (Pa.), 844. 
 Children by different wives (Pa.), 84G. 
 Daughter as against brother of member (Pa.), 848. 
 Change of; negligence of society no bar (R. I.), 858. 
 Insurable interest (R. I.). 8i)l. 
 Failure of (R. I.), 8o4. 
 Insurable interest (S. C), 859. 
 "Wife and heirs" (S. C), 803. 
 Rights of wife (S. C), 864. 
 Change of; vested interest (S. D.), 879. 
 
 When there is an equitable interest in certificate (S. D.), 880. 
 Who may be; rights of assignee (Tenn.), 903. 
 Have no vested interests (Tenn.), 903. 
 Right of change absolute (Tenn.), 904. 
 
 Beneficiary named not affected by member's will (I'cun.l. 904. 
 Not authorized, void (Tenn.), 904. 
 What is dependency? (Tenn.), 905. 
 Designation of, by member insane void ('J'eiin.), 905. 
 Right of mother as against wife (Tenn.), 908. 
 Provisions respecting, may be waived (Tenn.), 910. 
 Death of; who is entitled to fund (Tenn.). 912. 
 Change of (Texas), 922. 
 Death of; rights of wife (Texas). 923. 
 When heir takes benefit (Texas), 927. 
 
 Lawfully named not ousted by after-enacted laws (Texas), 930. 
 'Death before member (Texas), 931. 
 Who may be (Texas), 932. 
 May be named by will (Texas). 929. 
 Relatives, dependents (Texas), 929. 
 Have no vested interests (Texas). 935. 
 
 Who may be; death in common disaster: rule of survivorship (Texas), 935. 
 Right to change, complete (Texas), 937. 
 Illegitimate children may be named (Texas). 942. 
 Creditors cannot be, but may secure return of assessments paid to keep 
 
 contract alive (Texas), 942. 
 Who, of monument fund in Woodmen (Texas), 944. 
 Revoked, and illegal designation (Texas), 945. 
 Society may waive provisions respecting change (Texas), 940. 
 Rules as to change of (Utah). 948. 
 Right in member to change, absolute (Utah), 949. 
 Has no vested intei-est (Wash). 992.
 
 1064 FRATERNAL SOCIETY LAW 
 
 BENEFICIARIES— Continued : 
 
 Rules for changing, may be waived (Wash.). 992. 
 
 Eight to change (Wash.), 997. 
 
 Change of; requisites (Wis.), 1020. 
 
 Variance between certificate and application (Wis.), 1022. 
 
 Rule as to change of (Wis.). 1025. 
 
 When unable to take benefit (Wis.). 1026. 
 
 Right to change, general (Wis.). 1027. 
 
 Kot controlled by will (Wis.), 1027. 
 BENEFIT CERTIFICATE: 
 
 Construction given to, by society not binding on courts (Ala.), 9. 
 
 Void if it agrees to repay to member during his life time payments made 
 (Ala.), 7. 
 
 Forfeiture of, for non-payment of assessments (.^rk.), 27. 
 
 When liability under, begins (Ark.), 26-27. 
 
 Invalidated by failure to become initiated (Ark.), 25-26. 
 
 Effect of suspension of lodge on (Ark.), 22. 
 
 Held to be an Arkansas contract (Ark.), 21. 
 
 Lien against (Cal.), 40. 
 
 Lien on; statute of limitations (Cal.). 40. 
 
 Forfeiture of, for non-payment of assessments (Cal.). 32. 
 
 Failure to complete application for (Colo.), 61-62. 
 
 Subject to taxation (111.), 175. 
 
 Cannot be reinstated after member's death (D. C). 100-101. 
 
 Cannot be reduced in amount by after-enacted laws (Ga.), III. 
 
 Subject to taxation (111.), 175. 
 
 Effect of issuing, where no beneficiary is named (Ga.). 108. 
 
 Need not be issued (Ga.). 107. 
 
 Rights of creditors to fund under (111.), 198. 
 
 Assignability of; construction of act of 1893 (111.), 195. 
 
 Cancellation of (111.), 194-195. 
 
 Rights of creditors in equity; assignment (111.), 188-189. 
 
 Assignable in equity (111.), 188. 
 
 Reformation of. after member's death (111.). 188. 
 
 Situs of contract represented by (111.), 187. 
 
 Beneficiary has no vested interest in (111.). 185-186. 
 
 Presumed to remain in force after issue (111.), 180. 
 
 Copy of application to be attached to (Iowa), 289. 
 
 Not requisite to effect contract (Iowa), 284. 
 
 Before cancellation payments made must be returned (Ind.), 251. 
 
 Beneficiary has no vested interest in (Ind.), 233. 
 
 And by-laws conflict between terms of (Ind.), 240. 
 
 Copy of application to accompany same (Ky.), 334. 
 
 Delivery of (JNIich.), 48U. 
 
 Issuance before initiation (.Midi. I. 487. 
 
 Delivery of, to local lodge (Mich.). 488. 
 
 Delivery of; waiving payments (Mich.), 481. 
 
 And laws, conflict between (Mo.), 601. 
 
 Presumption as to amount of one assessment (Mo.), 583.
 
 INDEX 1065 
 
 BENEFIT CERTIFICATE— Continued: 
 
 L088 of, does not prevent suit iin (N'el).), t]^'i. 
 
 Proceeds of (Neb.), 637. 
 
 Jurisdiction of suit on (Neb.). 041. 
 
 Unauthorized delivery of (Xeb.). 045. 
 
 Issuance of, after applicant's dcatli (Tenn.). 907. 
 
 Wlien surrendered is dead (Tenn.), 910. 
 
 Assignment of, valid (Texas), 927. 
 
 Delivery of, condition precedent to liability (I'tali), 949. 
 BENEFIT MEMBERS: 
 
 All need not be (Mo.), 577. 
 BENEFITS: 
 
 Amount of; post mortem assessment (Ark.), 23. 
 
 Reduction of, by after-enacted laws (Cal.), 40. 
 
 Reduction of, cannot be made by after-enacted laws (Cal.), 40-41. 
 
 Amount of certificate cannot be reduced by after-enacted law (Ga.), 111. 
 
 Not subject to attachment for debt (111.), 17S. 
 
 Funds, limitations on right to assess for (III.), 177. 
 
 Funds, society is a trustee of (111.), 176. 
 
 Fund assigned", enforcible in equity (111.), 179. 
 
 Fund no part of member's estate (111.), 198. 
 
 Funds subject to taxation (III.), 185. 
 
 Fund, right of creditors to, under assignment (111.). 188-189. 
 
 Fund, when creditors may take (111.), 190. 
 
 Fund exempt from attachment (111). 190. 
 
 Premature suit for (Iowa), 278. 
 
 Amendment of laws after accrual of (Ind.), 233. 
 
 Fund exempt from creditor's claims (Kas.), 325. 
 
 Reduction of, by after-enacted laws (La.), 363. 
 
 E.xempt from creditor's claims (Md.), 411. 
 
 Cash to member (Mich.), 468. 
 
 Assignment of; waiver of laws (Minn.), 530. 
 
 And obligations subject to change (ilo.), 578. 
 
 Creditors can acquire no rights in (Neb.), 634. 
 
 Payment of, through local lodge (Neb.), 637. 
 
 Duty of local lodge upon receiving from society (N. H.), 673. 
 
 Member under charges not entitled to (N. H.), 674. 
 
 What is total disability? (N. H.), 674. 
 
 Exempt from creditor's claims (N. Y.), 714. 
 
 Reduction of, by after-enacted laws void (N. Y.), 724. 
 
 Funeral, administrator may recover (Utah), 945. 
 
 See Sick Benefits: 
 BOND TO STATE: 
 
 Suit on; limitations (Ark.), 20. 
 
 Date of beginning of liability under (Ark.), 20. 
 BOOKS: 
 
 Of society not only evidence of good standing (111.), 168. 
 
 Of subordinate lodge, as evidence (Neb.), 047. 
 
 See Evidence.
 
 1066 FRATERNAL SOCIETY LAW 
 
 BURDEN OF PROOF: 
 
 111 case of suicide (Aik.), 19. 
 
 As to reinstatement of member (Ark.), 19. 
 
 As to amount of post mortem assessment on society (Ark.), 23. 
 
 Legality of marriage presumed (Colo.). 50. 
 
 In death in common disaster cases (111.). 18G. 
 
 Always on society in suicidal cases (111.), 17U-177. 
 
 In suicide cases (iJinn.), 527. 
 
 In suicide cases (Texas), 923. 
 
 For evidence, see Evidence. 
 BY-LAWS: 
 
 Proof of (Ark.), 22. 
 
 Are part of contract witli member (Cal.), 47. 
 
 jNIay e.Ktend class of beneficiaries (Cal.), 36. 
 
 Are part of contract (Cal.). 33-34. 
 
 Of fraternal society, part of contract (Cal.), 32. 
 
 Are prospective and in operation iD. C), 97. 
 
 Constitutions are (111.), 194. 
 
 Must be reasonable (Md.), 410. 
 
 Printed, admissible in evidence (Md.), 409. 
 
 For amendments, see After-Enacted Laws. 
 CALIFORNIA: 
 
 Boiieticiary societies exempt from insurance laws, 30. 
 CANCELLATION: 
 
 ijf certificate (111.), 194-195. 
 
 Payments made to be returned before (Ind.), 251. 
 
 Of contract; measure of damages (X. C), 750. 
 
 Of inembersliip, right to (Texas). 939. 
 CASH BENEFITS: 
 
 Cash benefits to member (^lich.), 468. 
 
 Fraternal societies cannot grant, to members lilinn.l. 514. 
 
 See Benefits and Contracts. 
 CERTIFICATE: 
 
 See Benefit Certificate. 
 CHARITY: 
 
 Fraternal society is not (Cal.), 37. 
 
 Societies are not public charities (111.). 104-165. 
 
 Defined; society is not (Me.), 388-389. 
 
 ^Miat is (Miss.), 553. 
 CHARTER: 
 
 After-cnactod laws within powers (Ala.), 7. 
 
 New; effect on member's contracts (Cal.). 38-39. 
 
 Amendment of (D. C), 97. 
 
 \^Tio are beneficiaries when in conflict with statute illl.). 166. 
 
 Charter members' rights (111.), 192. 
 
 And statutes are the organic. law of a society (111.), 171. 
 
 Ultra vires acts (111.), 171. 
 
 Powers under (Kas.), 318.
 
 INDEX 1067 
 
 CHARTER— Continued : 
 
 rowers of sooieties (Jld.), 41f). 
 
 Iliglipr than constitution (Miss.). .'5.56. 
 
 On forfeiture of. individual inenilicrs lieco owners of society's property 
 
 (S. C), H(iO. 
 CHILDREN: 
 
 Children of different wives and born previouhly :ind -ul)^^ec|U('ntly to con- 
 tract equally eli^rihle (Ala.), 9-10. 
 
 Surviving wlio are witliin the term (Ala.), 0-10. 
 
 Adopted, are dependents (III.), 165. 
 
 Illegitimate, ineluded in term "legal heirs'' (Iowa), 293. 
 
 As beneficiaries (Mass.), 448. 
 
 Of dilTerent wives as beneficiaries (Pa.), 846. 
 
 Illegitimate, may be- beneficiaries (Texas), 942. 
 CIVIL COURTS: 
 
 Sec Courts. 
 CLASSES: 
 
 Of beneficiaries enlarged by statute (Ala.), 9. 
 
 Creation of; discrimination (Cal.), ;iO-,31. 
 
 Of benfieciaries may be restricted illl.l. Hl.-i-llKi. 
 
 Of beneficiaries may be restricted (111.). 1(17. 
 
 Separate, in same society (Iowa), 282. 
 
 Rights of member to transfer from one class to another (Ind.), 248. 
 
 Creation of; change of |ibin>; after enacted law^ (Ind.). 24.5-247. 
 
 liiglit of members respecting transfer from one class to another (Inil,). 238. 
 
 Separate classes, separate funds (Ky.), S.W. 
 
 New. created by after-enacted laws (Mass.), 447-448. 
 
 Eiglit of society to separate membership into (Mass.). 442. 
 
 Eight to establish (Minn.), ,529. 
 
 Right of society to classify its nu'Uibers (Neb.). 035. 
 COLLATERAL ATTACK: 
 
 I |ic>n after-enacted laws (Xcb. ). (i45. 
 COLORADO: 
 
 Statute relating to fraternal beneficiary societies, 50-54. 
 
 Company or Insui'ance Company defined, 50. 
 
 "Domestic" and "Foreign" defined, 50. 
 
 "Commissioner" and "Deputy Commissioner'' defined. 50-51. 
 
 Diversion of fluids for political purposes prohibited, 51. 
 
 Testifying before courts, etc., 51. 
 
 Production of books, papers and otlier docnmeiits, 51. 
 
 Such testimony shall not be used against him in any criminal proceeding. 51. 
 
 Fraternal societies not subject to general insurance laws, 51. 
 
 But must file annual statement and pay fee of $5.00, 52. 
 
 Lodge system, what societies shall be deemed to operate under, .52. 
 , Lodges to meet at least once each month, 52. 
 
 Must file copy of charter or articles of incorporation. .52, 53-54. 
 
 Must file certificate designating agent on whom process may be served. 52. 
 
 Where suits inav be brought against societies, 52.
 
 1068 FRATERNAL SOCIETY LAW 
 
 COLORADO— Continued: 
 
 Lodges may bring actions on bonds, 52-53. 
 
 Secretary of State, fees of, 53. 
 
 Statute must be complied with within 90 days. 5.3. 
 
 Contract of life insurance, what shall be deemed, 53. 
 
 May not be issued except by bona fide fraternal societies or insurance com- 
 panies; punishment, 53. 
 
 Condition lequiring member to patronize certain undertaking firms, unlaw- 
 ful : punishment, 53. 
 COMMISSIONER OF INSURANCE: 
 
 See Insurance Commissioner. 
 COMMIT SUICIDE: 
 
 Defined (111.). 172. 
 
 8rp Suicide. 
 COMMON DISASTER: 
 
 Deatli in; no presumption of .survivorship (HI.), 185. 
 
 Death in; burden of proof (111.), 186. 
 
 Death in (Texas), 927. 
 
 Death in, and rule of survivorship (Texas), 934. 
 
 Deaths in (Texa.s). 935. 
 COMMON LAW: 
 
 I'lesumed to lie the same in each State (ilo. I. 59G. 
 COMMUNICATIONS: 
 
 See Privileged Communications. 
 COMPETITION: 
 
 When not permitted between societies (Mich.). 481. 
 COMPROMISES: 
 
 Powers of societies respecting (Conn.), 72. 
 
 By guardians without authority (111.), 174. 
 
 By guardians, unauthorized (111.), 173. 
 
 Eelease on part payment (111.), 163. 
 
 Offer of, waives defense that nothing is due (Kas.). 322. 
 
 Accord and satisfaction (ilass.). 439. 
 
 When to be set aside (Md.). 408. 
 
 Accord and satisfaction (N. Y.), 722. 
 
 Denial of liability not waived by (S. C), 859. 
 
 Will not be set a.sidc before tender back of payment made (S. C.l. 862. 
 
 Wliat required to set aside (Wis.), 1029. 
 CONDITIONS PRECEDENT: 
 
 Payment of first premium wliile in good health (Ark.), 23. 
 
 To fixing of liability (Conn.). 70-71. 
 
 Agent's agreements (Iowa), 285. 
 
 To liability (Iowa), 289-290. 
 
 Pleading performance of, required in action on certificate (Kas.i. 313. 
 
 To liability (Kas.), 327. 
 
 Medical examiner's approval of application (Miss.), 550. 
 
 Unauthorized delivery of certificate (Neb.), 645. 
 
 See Contracts ami Liability.
 
 INDEX 1069 
 
 CONFLICT: 
 
 In laws of society (Mirli.), 401. 
 
 Between certificate and laws (Mo.), (iOl. 
 
 In laws; tliose of Jlissouri <;overn I. Mo.). .502. 
 
 In ]irovisions of contracts ('I'enn.), "JU'J. 
 
 Jn laws; liow construed (Texas), 928. 
 CONNECTICUT: 
 
 Statute relatinj; to fraternal societies, C3-69. 
 
 Fraternal society, definition of, 63. 
 
 Benetit and ex))ense funds to be derived from assessments. 03. 
 
 Class of benelieiaries, G3. 
 
 Fraternal associations exempt from provisions of ;;eneral insnra)iee laws, 63. 
 
 Provisions under which societies may do business, 63-(!4. 
 
 Status of foreign societies, 64. 
 
 Must file annual report with insurance eomniissioner. (14-i;.>. 
 
 Must file certified copy of charter or articles of incorpnral inn. and copy of 
 constitution and by-laws. 64. 
 
 Must appoint Insurance Commissioner its attorney, 04. 
 
 Insurance commissioner shall examine into condition and management of 
 society, 04. 65. 
 
 Insurance commissioner ma}' permit; fee, 66. 
 
 Neglect to file reports; penalty; injunction, 06. 
 
 Money due from society exempt from attachment for debt, 67. 
 
 No society shall employ paid agents except in organizing local branches or 
 lodges, 67. 
 
 False representations in applications for membership, etc.; penalty, 67. 
 
 Acting for unatithorized society; penalty, 67-68. 
 
 Masons. Odd Fellows, etc., not included in provisions of this chapter, 08. 
 
 Insurance Commissioner shall publish annual reports, 68. 
 
 Fees payable to Insurance Commissioner, 08-69. 
 
 Transaction of such business by other societies or persons than above pro- 
 vided, forbidden. 69. 
 CONSOLIDATION OF SOCIETIES: 
 
 Transfer of membership to another society (111.), 168. 
 
 Risks assumed (Iowa). 291. 
 
 Eights of old members after (Iowa), 292. 
 
 Ultra vires contracts (Kas.), 318. 
 
 Contracts assumed; original provisions continued iMe.l, .390. 
 
 When unlawful (Texas), 041. 
 CONSTITUTION: 
 
 Amendments to (D. C), 97. 
 
 Illegally adopted (D. C), 98. 
 
 May be waived same as by-law- (111.), 171. 
 
 A mere by-law (111.), 194. 
 
 Is a mere by-law (Miss.), 5.56. 
 CONSTITUTIONAL LAW: 
 
 Title to statute (ilich.). 492. 
 
 See Laws and After-Enacted Laws.
 
 1070 FRATERNAL SOCIETY LAW 
 
 CONSTRUCTION: 
 
 Of contracts by societies not binding on courts (Ala.), 9. 
 Of exempting statute (Conn.), 71. 
 Of ambiguous designation of beneficiary (111.), 165. 
 Of Missouri fraternal beneficiary act (111.), 184. 
 Of fraternal beneficiary act of 1893 (111.), 195-190. 
 Of contracts to favor purjjoses of society (111.), 1(>0. 
 Of Missouri statute (111.), 184. 
 Of contracts must favor member (111.), 180. 
 Of doubtful contracts (Iowa), 275-276. 
 Of ambiguous contracts (Me.), 380. 
 Of warranties (Minn.), 520. 
 
 Of contract to be liberal in fa\or of members (Miss.), 550. 
 Of statutes; long established customs aid in (Mo.), 578. 
 Conflicting rules in different States (Mo.), 597. 
 Of contract must favor member (Mo.), 593. 
 Of statutes, custom as aid to (Mo.), 578. 
 Of doubtful language in contract (Xev.), 658. 
 Of ambiguous contract (N. Y.), 728. 
 
 Reasonable, of laws to carry out meaning proper (R. I.), 85T. 
 <-!f conflicting provisions in contract (Tenn.), 909. 
 Of conflicting laws (Texas), 928. 
 Of ambiguous laws (Utah), 949. 
 CONTRACTS: 
 
 Societies' construction of. not binding on courts (Ala.), 9. 
 
 Ultra vires, if to repay to member what he has paid in (Ala.), 7. 
 
 Parol (Ark.), 27. 
 
 Failure to pay promptly (Ark), 20. 
 
 None where apjilicant fails to become initiated (Ark.), 25-26. 
 
 Not effective until payment of first premium (Ark.), 23. 
 
 Effect of suspension of lodge on (Ark.), 22. 
 
 Of insurance, not character of company determines rights (Ark.), 22. 
 
 Oei'tificate held to be an Arkansas contract (Ark.), 21. 
 
 Liabilit}- on bond to State predicated on (Ark.), 20. 
 
 Garnishment of society's funds defense to, action on (Ariz.), 29. 
 
 Situs of, and suit on (Ai'iz.), 29. 
 
 Ultra vires, what are (Cal.), 48. 
 
 By-laws, rules and regulations part of (Cal.), 47. 
 
 Effect of new charter on (Cal.), 38-39. 
 
 After-enacted by-laws cannot reduce anunnit payable under (Cal.), 40-41. 
 
 Determined solely by the laws (Cal.). 35. 
 
 By-laws are part of (Cal.), 33. 
 
 Forfeiture for non-payment of assessments (Cal.), 32. 
 
 Effect of failure to complete application for (Colo.), 01-02. 
 
 Conditions precedent to liability luider (Conn.), 70-71. 
 
 Between members and society. — Certificate need no( be issued (Ga.), 107. 
 
 Must be in writing (Ga.), 107. 
 
 Repudiation of, by society (Ga.), 111.
 
 INDEX 1071 
 
 CONTRACTS— Continued : 
 
 Waivers not allowod (Hawaii), 12'J. 
 
 Chaiiffcd by aftei-cnaeted laws (111.). 103-104. 
 
 Waiver of provisions of (111.), 103. 
 
 Capable of two constructions must be held to favor beneficiary (111.). 101. 
 
 Obligations under, not increased by society taking benefit of State laws 
 
 (111.), 161. 
 What State laws are part of (111.), 161. 
 Construction to favor purposes of society (111.), 160. 
 Of promoters not binding on society (111.). 102. 
 Includes laws of subordinate lodge (111.), 101. 
 Keforniation of. after member's death (III.). ISS. 
 Impairment by nfler-enacled law- (111. I. IS7. 
 When regarded as an Illinois contract (Ill.i. 1S7. 
 Construction of, must favor members (111.), ISO. 
 Ultra vires plea not available when performed anil in rlunter puwer illl.i. 
 
 171. 
 Ultra vires cannot be ratified (lib). 10l)-170. 
 Ultra vires, neither party estopped to assert (111.). 10!t. 
 Affected by after-enacted laws (III.), 100. 
 Construction of doubtful (Iowa), •27-5-270. 
 Strict construction required (Iowa). 277. 
 To employ paid agents, ultra vires (lowai, 27'J. 
 By promoters (Iowa), 279. 
 
 For in-definite amount, action on (Iowa), 298. 
 Conditions precedent to liability (Iowa), 297. 
 Ultra vires in consolidation of two societies (Iowa), 292. 
 Assumed in consolidation of two societies (Iowa), 291. 
 Conditions precedent to liability under ( Iowa ) , 289. 
 Copy of application to be attached to certificate (Iowa). 289. 
 Advertising which induced membership not part of (Iowa), 280. 
 Certificate need not be issued (Iowa), 284. 
 Valid though delivery not shown (lovVa), 285. 
 
 Special: members cannot sue to prevent issuance of, by society (Ind.), 230. 
 Death before same became binding (Ind.), 234. 
 Laws are part of (Ind.), 236-237. 
 Rescission of (Ind.), 247. 
 
 Incontestable clauses and amendments of (Ind.), 248-250. 
 Validity of, where society is not licensed (Ind.), 228. 
 General and limited; death from expected cause (Ind.), 227. 
 When ultra vires (Kas.), 318. 
 Parol evidence as to (Kas.), 312. 
 Beginning of liability (Kas.), 311. 
 Where no provision against suicide (Ky.), 334-335. 
 Entire contract req\iired to be contained in certificate (Ky.). 334. 
 Must contain complete exhibit of all parts referred to or relied on (Ky.). 332. 
 Time when liability begins under (Ky.), 332. 
 Void: return of assessments (Ky.), 332.
 
 1072 FRATERIiAL, SOCIETY LAW 
 
 CONTRACTS— Continued: 
 
 Wliat constitutes (Mass.), 440-441. 
 
 Breac-li of, by after-enaoted laws (Mass.), 447. 
 
 Conditions precedent to liability under (Mass.), 44«. 
 
 Certificate issued in New York a Maryland contract (ild.), 413. 
 
 Rules of construction (Md.), 413. 
 
 ^Vhat State laws govern (Md.), 415. 
 
 Renewal of, subject to old conditions (Me.), 386. 
 
 Construction of ambiguous (Me.), 386. 
 
 Assumed in consolidation (Me.), 390. 
 
 Unlawful, payments made in good faith on (Midi.), 486. 
 
 Payments made on, ultra vires (Midi.), 489. 
 
 When a Michigan contract (Mich.), 467. 
 
 For cash benefits (Mich.), 468. 
 
 Laws of society of more force than certificate (Miss.), 555. 
 
 To be liberally construed in favor of the insured (Miss.), 550. 
 
 Cannot be made against estoppel (Miss.), 550. 
 
 Conditions precedent (Miss.), 550. 
 
 Minds of parties must meet (Miss.). 552. 
 
 Laws of society are considered written into (Miss.), 552. 
 
 Conditions precedent to (Minn.), 516. 
 
 When void, payments forfeited (Minn.), 521. 
 
 Defeated by false answers in application (Minn.), 523. 
 
 From what deducible (Minn.), 524. 
 
 Statute in force at maturity of, determines (Mo.), 606. 
 
 Of a fraternal society subject to forfeiture (Mo.), 577. 
 
 Nature of, determines character of society (Mo.), 581. 
 
 When regarded as made in Missouri (Mo.), 582. 
 
 Amount presumed to be due under (Mo.), 583. 
 
 Not afl'ected by after-enacted laws, when (Mo.), 587. 
 
 Determines true character of society (5Io.), 592. 
 
 Must be construed fa\orab]e to member (Mo.), 593. 
 
 Determined by status at deatli of member (Mo.), 593. 
 
 Rule as to conflicting interpretation in different States (Mo.), 597 
 
 Who is real party in interest in suit on (X. M.), 659. 
 
 Construction of doubtful language (Nev.), 658. 
 
 What composes (Neb.), 655. 
 
 Duty to tender back payments made (N. D.), 769. 
 
 Void under statute; no estoppel in pais (N. D.), 770. 
 
 What composes (N. D.), 770. 
 
 Cannot be destroyed by after-enacted laws (N. C), 747. 
 
 Damages for breach of (N. C), 747. 
 
 Measure of damages for cancellation of (N. C.), 750. 
 
 Measure of damages for breach of (N. C), 750. 
 
 When it take* effect (N. C), 751. 
 
 Members charged with knowledge of provisions of (N. C), 755. 
 
 Courts will take judicial notice of forms of (N. C), 755. 
 
 Cause of action accrues upon repudiation of (N. J.), 692. 

 
 INDEX 1073 
 
 CONTRACTS— Continued : 
 
 Upon lepudiiitiuM iiiciiilKT lias cause of action tor tUunages (N. J.), G93i 
 
 Precedent conditions dissolved by repudiation (X. J.), 693. 
 
 How far affected by after-enacted laws (N. Y.). 710. 
 
 With foreign society may be New York contract (X. Y'.i. 721. 
 
 Provisions respecting agency (N. Y".), 727. 
 
 Wlien ambiguous, slinuld be construed ))iost strongly against the society 
 
 (N. Y.), 72S. 
 Rights under, how measured iX. Y.), 731. 
 Delay of subordinate lodge in forwar<ling applicaticjii does not create (Okla.), 
 
 811. 
 Knowledge of terms presumed (Okla.), 811. 
 
 When liability begins; worthless check not payment of premium (Pa.), 835. 
 When liability Iiegins under (Pa.), 840. 
 Copy of application to be attached to (Pa.), 844. 
 Medical examination not part of (K. I.), 851. 
 When agreement for, is merged into (R. I.), 8.53. 
 When begins (S. C), 864. 
 Unreasonable delay in jiassing on application does not amount to acceptance 
 
 (S. D.), 880. 
 Conditions in certificate govern (Tenn.), 890. 
 What constitutes (Tenn.), 902. 
 
 Certiticate issued after applicant's death, void (Tenn.), 907. 
 Of what composed (Tenn.), 908. 
 Delay in acting upon application (Tenn.), 908. 
 Construction of conflicting provisions (Tenn.), 909. 
 Situs of; what laws govern (Tex.), 924. 
 Situs of; where made (Texas), 924. 
 What State laws imported into (Texas), 926. 
 When renounced, other party may at once sue (Texas), 939. 
 Repudiation of. gives right to suit under (Texas). 939. 
 When provisions to be construed most strictly in favor of beneficiary (Texas), 
 
 945. 
 Repudiation of; right to sue (Va.i. 974. 
 Repudiation of; suit on (Va.), 976. 
 W'hat is life insurance (Va.), 977. 
 Style of type to be printed in (Va.), 978. 
 Situs of (Vt.), 958. 
 Construction of (Vt.), 960. 
 
 Provisions in, against waivers not valid (Wash.), 991. 
 Stipulations against agency (Wash.), 994. 
 Parol agreements not competent evidence (W. Va.). 1000. 
 Rule as to situs of (W. Va.), 1002. 
 Oral agreement valid (W^yo.), 1037. 
 Delivery of, required (Wyo.), 1037. 
 
 Recovery of premiums paid under void (Wyo.), 1037. 
 CORONER'S VERDICT: 
 
 Not prima facie evidence of suicide (Ark.). 19.
 
 1074 FRATERNAL SOCIETY LAW 
 
 CORONER'S VERDICT— Continued: 
 
 Adiiii.s.-^ilile ill evidence (Hi.), 174. 
 
 Not binding on beneficiary (Ind.), 250. 
 
 In suicide cases (Iowa), 291. 
 
 In suicide case (Ky,), 334. 
 
 Not admissible in evidence (Neb.), G.55. 
 
 Not receivable in evidence (Ore.), 820. 
 
 Not receivable in evidence (S. D.), 881. 
 
 Not competent evidence (Texas), 940. 926. 
 CORPORATE POWERS: 
 
 See Powers. 
 COURSE OF DEALING: 
 
 See Custom. 
 COURTS: 
 
 Not bound by society's construction of contract (Ala.), 9. 
 
 Will not interfere with society's policy (Cal.), 47. 
 
 .Jurisdiction of, as between member and lodge (Cal.), 44. 40-47. 
 
 •Jurisdiction over membership (Cal.), 39. 
 
 Jurisdiction of. in controversies between iiieiiibers and siiciety (Cal.), 37, 39. 
 
 Eesort to (Conn.), 69-70. 
 
 Resort to (Del.), 83. 
 
 Eesort to. for the maintenance of good standing (D. C). 09. 
 
 Jurisdiction of, over foreign society (D. C), 99-100. 
 
 Beneficiaries not required to resort to (Ga.), 112. 
 
 Resort to (Ga.), 109. 
 
 Members may resort to (Hawaii). 128. 
 
 Right to resort to, not to be denied beneficiary (111.), 181. 
 
 Municipal Court of Chicago; limited powers (111.), 160. 
 Jurisdiction of; where societies may be sued (Iowa), 267. 
 
 Provision in certificate limiting venue not valid (la.), 2(iS. 
 
 Suit may be brought in any county where loss occurred (la.), 268. 
 
 Action at law proper on certain indefinite contracts (la.), 298. 
 
 Resort to (Iowa), 288. 
 
 Members must exhaust remedies in society (Iowa). 283. 
 
 Resort to (Ind.), 238. 
 
 Situs; conflict of jurisdictions; void procedure (Kas.), 319. 
 
 Judicial notice of foreign statutes by (Kas.), 329. 
 
 Resort to. before exliausting remedies in society (Kas.),' 324. 
 
 Duty of members to exhaust remedies in society (Kas.), 317. 
 
 Right of beneticiarv to appeal tn civil courfs (Md.). 409-410. 
 
 Resort to, by beneficiary (Md. ). 411. 
 
 Courts are without power to control internal afl'aiis of foreign society (Md.), 
 
 413. 414. 
 Exclusive jurisdiction in society's tiilmnals (Md.). 417. 
 Resort to (Mich.). 493. 
 
 Proceedings of society's trilniinils not conclusive i^lich.), 4S0. 
 Resort to civil (Mich.), 483. 490. 
 Resort to civil (INIich.). 492.
 
 INDEX 1075 
 
 COURTS— Continued: 
 
 iti'-oii tn civil (jiii'ii.j, -tr.s. 
 Kc'Miii I,, civil (MiiiM.), 517. 
 
 I'm ciisdHiililo rfiipiirciiients of society's by-laws {l\iiiiii.), 517. 
 j;c>ciit tn civil (Minn.), 518. 
 
 Unieasoiiiilile provisions in bylaws (Minn.), 51!). 
 Mcnibcis must exhaust remedies in society (Miss.), 550. 
 Courts should not interfere with societies (Mo.), 007. 
 UnreiLHOiuible restrictions against resort to (Xcb.), (140. 
 Kesort to (N. H.), C74. 
 Kesort to: void lodge trial (N. J.), 086. 
 
 jMonilicrs must exhaust society's remedies before resortin<^ to (N. .1.), 085j 
 Finality of judgments of society's tribunals (N. J.), 688. 
 Courts Ikwc right of review where contracts involved (N. J.), (i!l7. 
 Kesort to. before remedies exhausted in society (Ore.), 820. 
 Member must exhaust society's remedies (Pa.). S47. 
 Kesort to civil courts permissible (U. 1.), 850. 
 
 AVheu authorized to interfere with societies' internal alVairs (1!. l.|. S5U. 
 Members' riglit to resort to (R. I.), 854. 
 Resort to (S. C), 865. 
 Over foreign societies (Tenn.), 1)12. 
 Right of resort to (Utah), 048. 
 Review of expulsion of members (Wash.). OOo. 
 Resort to, by members (Wis.), 1020. 
 EtVect (if void judgments on appeals (Wis.). 1023. 
 How far .societies are free from judicial control (Wis.), 1024. 
 Sec Juri.sdiction and Trials. 
 CREDITORS: 
 
 Wlicn |)refcrenee allowed (Cal.), .30. 
 
 Riglit of attachment (Cal.), 36. 
 
 Right of. as beneficiaries (Del.), 83-84. 
 
 May enforce in equitj' assignment of benefit fund (111.). 178. 
 
 ^lay enforce assignment of beneficiary's claim (111.). 179. 
 
 Ei|uitablc rights of, to benefit finid enforceable (111.), 108. 
 
 Rights to benefit fund enforced in equity (111.). 188-189. 
 
 Rights to fund, when (111.), 190. 
 
 Claims, benefit fund exempt from (Kas.), 325. 
 
 Assignment of benefit fund to (Mass.), 450. 
 
 Claims, benefit exempt from (Md.), 411-412. 
 
 Right to benefit fund (Mich.), 475. 
 
 Trust agreement in favor of (Mich.), 407. 
 
 Claims on benefit fund (Miss.), 555. 
 
 Riglits of, as beneficiaries (Mo.), 607. 
 
 Cainiot be beneficiaries (Neb.), 034. 
 
 Cannot take funds (Neb.). 037. 
 
 Cannot enforce claims against benefit funds (N. Y.), 714. 
 
 AVlien may take benefit funds (N. Y.), 727. 
 
 Rights of, as beneficiaries (Pa.), 840.
 
 1076 FRATERNAL SOCIETY LAW 
 
 CREDITORS— Continued : 
 
 lJ^■lK•ti^•iiU■it■^ are, atter niaturit}- of certificate (I'a.). 843. 
 
 Kiglits of local vs. foreign (Pa.), 843. 
 
 Right of, as to assessments paid (Texas), 942. 
 
 Cannot attach fund (Texas), 925. 
 
 Scf Attachment ^ni.l Garnishment. 
 CUSTOM: 
 
 Cannot waive vvritten contract terms (Ga.), 108. 
 
 Does not estop society from enforcing its laws (Ga.), 109. 
 
 Course of dealing in collecting assessments (Iowa), 290. 
 
 As to receiving members' payments (Kas.), 315. 
 
 Of receiving payments (Mich.), 489. 
 
 Estoppel under (Minn.), 532. 
 
 Does not waive laws (Minn.). .530. 
 
 Cannot waive laws (Minn.). 520. 
 
 May waive laws; rule as to (Mo.), 595. 
 
 As to suspension (Mo. I. U(H). 
 
 What is (Pa.), 848. 
 
 And course of dealing, efl'ect of (Tenn.), 911. 
 
 In dealings as waiver of laws (Tenn.), 909. 
 
 AVaiver of right of forfeiture by (Tenn.), 905. 
 
 And course of dealing not to waive laws (Va.l. 974. 
 
 As a cause for waiver (Vt.), 958. 
 
 And course of dealing (Wash. I. 998. 
 DAMAGES: 
 
 Fraternal society liable for, caused, by negligence of its surgeon (Cal.), 37. 
 
 For injuries received during initiation (Mich.), 474. 
 
 None recoverable for inability to secure insurance (Mo.), 579. 
 
 Pleasure of, where contract wrongfully cancelled (N. C), 750. 
 
 ^Measure of, for breach of contract by society (N. C), 747. 
 
 Members acting in judicial capacity not liable for (N. H.), 675. 
 
 For injuries to member inflicted during initiation (N. Y.), 716. 
 
 Eecoverable for injuries during initiation (S. C). 863. 
 DEATH: 
 
 Of beneficiary before member (Ga.), 108-109. 
 
 Before contract became binding (Ind.). 234. 
 
 From excepted cause; general contract and limited liability (Ind.j, 227. 
 
 Death by own act, when suicide (La.), 362. 
 
 From opiates; .overdose from accident does not exempt society (Mo.), 604. 
 
 Evidence of identity of body (Pa.). S30. 
 
 Of applicant before issuance of certificate (Tenn.), 907. 
 
 Of beneficiary; wlio entitled to fund (Tenn.). 912. 
 
 For deaths in common disaster, see Common Disaster. 
 
 For deaths in violation of law, see Violation of Law. 
 
 For deal lis proofs, see Proofs of Death. 
 DEBTS: 
 
 Tlcnelit fund is exempt fnini (Ill.i. 178. 190. 
 
 For liabilitv for, see Creditors.
 
 INDEX 1077 
 
 DEFINITIONS: 
 
 Of >alooii-kecper (Ala.), 12-13. 
 
 Of lieirs at law (Ark.), 23-24. 
 
 Of dower (Ark.), 23-24. 
 
 Of good .standing (Conn.), 69. 
 
 Of death in violation of criminal law (Ga.), 117. 
 
 Of family (Ga.), IIG. 
 
 Of organic law (111.), 171. 
 
 Of '•commit suicide" (111.), 172. 
 
 Of satisfactory proofs of death (111.). 174. 
 
 Of estoppel (III.), 175-176. 
 
 Of total disability (III.). 176. 
 
 Of insane impulse (111.). 172. 
 
 Of good health (111.), 168. 
 
 Of suicide, sane or insane (Ky.). 33.5. 
 
 Of a charity (Me.), 388-389. 
 
 Of orphans (Minn.), 523. 
 
 Of living issue (Minn.), 525. 
 
 Of waiver (Miss.), 554. 
 
 Of duel (Mo.), 559. 
 
 Of fraternal society (Mo.), 598. 
 
 Of level rate (Mo.), 579. 
 
 Of fraternal society (Mo.), 577. 
 
 Of family (Mo.), 605, 608. 
 
 Of heirs at law (Mo.), 604. 
 
 Of paralysis (Mc), 603. 
 
 Of good health (Mo.), 001. 
 
 Of solvent society (Mc), 639. 
 
 Of self-destruction (N. J.), 772. 
 
 Of estoppel and waiver (N". Y.). 730. 
 
 Of heirs (N. Y.), 725. 
 
 Of estoppel (R. I.), 855. 
 
 Of warranty (Texas), 924. 
 
 Of fraud and breach of warranty (Vt.), 957. 
 
 Of illness (Vt.), 957. 960. 
 
 Of saloon-keeper and bartender (Wis.), 1028. 
 
 Of legal heirs (Wis.). 1028. 
 DELAWARE: 
 
 Statute relating to fraternal societies, 74-82. 
 
 Duties of Insurance Commissioner, 74-75-70. 
 
 Society must file annual statement. 76-77. 
 
 Insurance company, definition of, 77. 
 
 Fee for filing annual statement, 77. 
 
 Charter or declaration of organization to be filed with insurance Commis- 
 sioner, 78. 
 
 Must file certificate appointing agent on whom process may be served, 78. 
 
 Soliciting business for any company not authorized to transact business; 
 penalty, 78.
 
 1078 FRATERNAL SOCIETY LAW 
 
 DELA wfAEE— Continued : 
 
 Agent -.I.; >1 |iri>ciire iioense from Insurance Commissioner, 78. 
 
 Seal ( f Insurance Commissioner on certificates and official ])apers, 78. 
 
 Papers or copies of papers so sealed to be received in evidence, 78. 
 
 False swearing by officers or agents; penalty. 79. 
 
 Violation of law; penalty, 79, 80. 
 
 Fees payable to insurance Commissioner, 79-80. 
 
 Salary of Insurance Commissioner, 80. 
 
 Of liis clerk, 80. 
 
 Revocation of license, 79, 80. 
 
 Appointment of Insurance Commissioner as attorney. 81. 
 
 Insurance Commissioner, when served with jnocess, shall ujail copy to sec- 
 retary of company, 81. 
 
 Funds shall not be diverted for political purposes; penalty. 81-82. 
 
 Production of books, papers, etc., in court, 82: 
 
 Such books, papers, etc., not to be used against such person in any criminal 
 proceeding, 82. 
 DELEGATION: 
 
 Of legislative powers (111.), 193; (Jliss.), 5.55. 
 
 See Powers and Society. 
 DEPENDENTS: 
 
 Who are (Ala.). 8. 
 
 Who are not (Cal.), 33. 
 
 Dependency of beneficiaries (Hawaii). 129. 
 
 Adopted child is (111.), 105. 
 
 Dependency, who are included in term (lll.l. liiO. 
 
 Who are (Ky.), 337. 
 
 Who are, and what constit\ites dependency (JIass.). 444. 
 
 Statutory' meaning of dependency (JIo.), 605. 
 
 Harried adult son is not (Mo.), 003. 
 
 A brother of member not a dependent (Ohio), 794. 
 
 What is dependenc}' (Tenn.), 905. 
 
 Who are (Texas), 929. 
 
 Rule as to evidence of dependency (Wash.), 99G. 
 DIRECTORS: 
 
 Amendments of laws by (ilinn.). 529. 
 DISABILITY: 
 
 Statute construed (Cal.), 48. 
 
 Definition of total (111.). 176. 
 
 Total, what is (Ind.). 240. 
 
 Payments accruing during (Jlich.l. 487. 
 
 Wnien total (Mich.), 477. 
 
 Benefits, claim for (Jlich.). 468. 
 
 What is total (N. H.), 674. 
 
 What is (Texas). 943. 
 
 Benefits, right to (Texas), 932. 
 DISAPPEARANCE: 
 
 See Absence. 
 
 I
 
 mDEX 1079 
 
 DISCRIMINATION: 
 
 lictwiTii iniMiilicrs iCiil.l, 30-:)l. 
 DISPUTES: 
 
 r.clwccii iiiriiiliois iuid lodpi' (CmI.). 44. 
 DISTINCTION: 
 
 liclwccii iriiiliial :iii(l fi;il el mil socii'ties (Ark. I. U.'). 
 DISTRICT OF COLUMBIA: 
 
 Statute rolatinir to fraternal societies, 85-97. 
 
 Fraternal society defined, 85. 
 
 Soeiety may create and maintain a reserve, emergency or benefit fund. 85. 
 
 May pay withdrawal benefits not exceeding dues ])aid by member, 85. 
 
 Benefit fund to be derived from assessments and dues. 85-80. 
 
 Beneficiaries, class of, 86. 
 
 Fraternal societies exempt from in.suranci- laws, 8(i. 
 
 May continue lousiness subject to ]novisions of statute. 80. 
 
 Must file with Superintendent of Insurance copy of charter, articles of in- 
 corporation and by-laws, 80-87. 
 
 Foreign society must be authorized to do business in State where incor- 
 porated, and file certificate to that effect, 87. 
 
 Superintendent of Insurance may examine into allairs of society, 87. 
 
 Expenses incident to such examination to be paid by society, 87. 
 
 Annual report to be tiled with Superintendent of Insurance, 87-88-89. 
 
 Appointment of Superintendent to act as attorney ; service of process, 89-90. 
 
 Permit from Superintendent of Insurance. 90. 
 
 Organization of societies, 90-91. 
 
 Reincorporation of societies, 92. 
 
 Incorporation of subordinate bodies, 92-9.'!. 
 
 Pa.yment of assessments by beneficiary invalidates contract, 93. 
 
 Benefits exempt from attachment, 93. 
 
 Jleetings of Supreme Lodge, 93-94. 
 
 Fraudulent representations in applications for member^liip. etc., 94. 
 
 Failure to make reports; penalties, 94-95. 
 
 Fraudulent conduct of business, etc.; injunction: reinstatement, 94-95. 
 
 Officers or agents acting without authority or in violation of statute; pen- 
 alties, 95. 
 
 F'raternal beneficiary code due- not apjily to corporations organized for 
 profit, 90. 
 
 Nor to associations or indiviihials using name of previously existing corpora- 
 tion, 90. 
 
 Person guilty of murder or manslauglitcr cauiuit be beneficiary of person 
 so killed, 96-97. 
 DIVIDENDS: 
 
 Fraternal societies cannot pa.v (Minn.), 514-515. 
 DIVORCE: 
 
 (If wife where named as beneficiary (Cal.), 41. 
 
 or benefieiary, efleet of (Cal.), 41-42. 
 
 Effect of wife's when named as beneficiary (Colo.). 01-02. 
 
 Effect of, on beneficiary (Iowa), 283-284.
 
 1080 FRATERNAL SOCIETY LAW 
 
 DIVORCE— Continued: 
 
 Divorced wife eonipeleiit as beneficiary (Iowa), 297. 
 
 Ot wife named as beneliciaiy; etTeet of (Pa.), 839. 
 DOMESTIC SOCIETY: 
 
 Treated same as foreign (Mo.), 59;}. 
 DOWER: 
 
 Detiiiitiun of (Ark.), 23-24. 
 DRUGS: 
 
 U.se of. to suicide (iJinn.), 515. 
 
 EeekleN5 tise of, same as suicide (Tenn.), 910. 
 
 See Suicide and Habits. 
 DUEL: 
 
 Definition of (Mo.), 599. 
 DUES: 
 
 See Assessments. 
 ENDOWMENTS: 
 
 Fraternal societies cannot give (Minn.), 514-515. 
 EQUITY: 
 
 Certiticate assignable in (111.), 188-189. 
 
 Equitable rights to benefit fund may be enforced (111.), 198. 
 
 See Assignment, Creditors, Beneficiaries. 
 ESTATE: 
 
 Uf member not entitled to benefit fund (Neb.), 637. 
 
 Benelit fund not part of member's (111.), 198. 
 
 See Beneficiaries. 
 ESTOPPEL: 
 
 Affeptanee of arrearages does not work, wliere good health necessary and 
 not shown (Ark.), 20. 
 
 False statements made in a])i)licati<)n by agent (Cal.). 34. 
 
 In case of amended laws (Colo.), 55. 
 
 In cases where tenders not repeated (Colo.), 58. 
 
 By "acts of local otficia,ls (D. C), 98. 
 
 Cannot be claimed from custom (Ga.), 108. 
 
 Society not estopped by acts unauthorized (Ga.). 109. 
 
 Societj- not estopped by agent's unlawful agreement (Ga.), 113. 
 
 Society not estopped to question designation of beneficiary (Ga.), 114. 
 
 None under ultra vires contract (111.), 169. 
 
 Definition of (III), 175-176. 
 
 Respecting change of beneficiary (Iowa), 280. 
 
 From acts of agent (Ind.), 234. 
 
 By acts of assistant clerk (Kas.), 316. 
 
 In ultra vires contracts (Kas.), 319. 
 
 When arising on waiver of warranty (La.), 365. 
 
 By negotiations with beneficiary (Minn.), 522. 
 
 By course of dealing (Minn.), 532. 
 
 Society cannot contract against (Miss.), 550. 
 
 Surety company estopped from denying legal capacity of society (Neb.). 647. 
 
 In waiver and forfeiture eases (Neb.). 643.
 
 INDEX 1081 
 
 ESTOPPEL— Continued : 
 
 Member estopped by overt acts (Neb.), 042. 
 When is doctrine applicable? (N. D.), 770. 
 
 There can be none where contract is void under statute (N. D.). 770. 
 And waiver, definition of (N. Y.), 730. 
 
 By failure of member to exhaust remedies under laws of society (Ore.). 820. 
 In agency waiver cases (R. I.), 850. 
 Definition of (E. I.), 855. 
 Upon waiver of laws by agents (Va.), 974. 
 Equitable (W. Va.), 1001. 
 For waivers see Waivers. 
 EVIDENCE: 
 
 Coroner's verdict to prove suicide (Ark.). 19. 
 
 Burden of proof as to reinstatement (Ark.). 19. 
 
 Proof of by-laws (Ark.), 22. 
 
 Burden of, as to amount of post mortem assessment (Ark.), 23. 
 
 Burden of proof in suicide cases (Ark.), 19. 
 
 Legality of marriage presumed, and burden of proof (Colo.), 56. 
 
 Presumptions of legality of naming beneficiaries (Colo.), 57-58. 
 
 Admissions of member binds beneficiary (Ga.). 114. 
 
 In sick benefit cases (Hawaii), 128. 
 
 Privileged communications to physicians (Ida.). 139-140. 
 
 Books of society not only evidence of good standing (111.), 1G8. 
 
 When proofs of death are satisfactory (111.), 174. 
 
 Coroner's verdict admissible in (III.), 174. 
 
 Opinions of physician in suicide cases illl.), 175. 
 
 Beneficiary may deny statements made in proofs of death (HI.), 175. 
 
 Burden of proof in suicide cases (111. I. 170, 177. 
 
 When member incompetent witness (111.). 183. 
 
 Burden of proof in death in eoninion disaster cases (111.). ISC. 
 
 Proofs of death admissible in (111.), 191. 
 
 Suicide by strangulation proved from circumstances (111.). 158-159. 
 
 Presumptions and burden of proof (Iowa), 287. 
 
 Privileged communications (Iowa), 292. 
 
 But little sufficient to rest verdict upon (Ind.). 248. 
 
 Privileged comnninieations to physician (Ind.). 239. 
 
 Admissions of members not (Ind.). 232. 
 
 Physician not a privileged witness (Ind.), 231. 
 
 Parol, as to contract (Kas.), 312. 
 
 Circumstantial, of suicide (Ivy.), 334. 
 
 Coroner's verdict as to suicide (Ky.), 334. 
 
 Circumstantial, to prove suicide (La.), 3G2. 
 
 Printed by-laws admissible in (Md.), 409. 
 
 Privileged communications (Mich.), 482. 
 
 Privileged communications in lodge trials (Mich.), 480. 
 
 In interpleader case (Mich.), 475. 
 
 New trial, what is required (Minn.), 519. 
 
 Waiver of exemptions in favor of physicians (Minn.). 518.
 
 1082 FRATERNAL SdClETY LAW 
 
 EVIDENCE— Continued : 
 
 Circumstantial, as to Miiiide (ilinn.l. :>\7. 
 
 Burden of proof in suicide cases (Jlinii.). .")27. 
 
 As to age; statements to otlier societies (Jlinn.). 510. 
 
 Declarations of members inadmissible (Mo.), 398. 
 
 When are claimants incompetent witness? (Mo.), 593. 
 
 Privilege of pliysicians waived (Mo.), 584. 
 
 When physician's opinion admissible (Xeb.), G50. 
 
 Coroner's verdict not admissible (Xeb.), Coo. 
 
 Admissions of members (Xeb.), 648. 
 
 Books of subordinate lodges (Xeb.), 647. 
 
 Proofs of death admissible (Neb.), 633. 
 
 Privileged communications may be made competent bv waiver of statute 
 
 (X. C). 749. 
 When insufficient to establish suicide (X. .7.), 097. 
 Proper way to prove laws (X. J.), 695. 
 Burden as to forfeitures (N. J.), 691. 
 Habitually disregarded by-laws (N. H.), 674. 
 As to suicide (X. D.), 772. 
 
 Declarations of member admissible (X. D.), 772. 
 Value of proofs of death as (X. D.), 771. 
 Waivers nuiking physicians competent void (X. Y.), 721. 
 Misstatements in application (X. Y.), 719. 
 When jjroofs or death furnished by agent of society is not competent (Ore.), 
 
 820. 
 Coroner's verdict not receivable in (Ore.), 820. 
 Parol testimony not admissible to change contract (Okla.). 811. 
 Relations between physician and patient (Ohio), 793. 
 Proofs of death prima facie, as to cause of (Pa.), 847. 
 Under breach of warranty (Pa.), 847. 
 
 Agent's knowledge of false statements not admissible (Pa.). 845. 
 Identity of insured (Pa.). 830. 
 Agent competent witness (Pa.), 834. 
 
 Parol agreement not admissible to defeat terms of contract (S. C), 804. 
 Coroner's verdict not (S. D.), 881. 
 What is competent as to age (Tenn.). 900. 
 As to age and pedigree (Tenn.), 900. 
 Coroner's verdict not (Texas), 940. 
 Coroner's verdict not admissible (Texas). 920. 
 Burden of proof in suicide cases (Texas), 923. 
 Members presumed to know laws of society (Va.), 977. 
 Parol agreements respecting insurance contracts (Va.). 97(i. 
 Secondary, not allowed to explain or waive medical exaiiiiriatidii (Wash.). 999. 
 By non-medical expert not competent (Wash.). 999. 
 What is comijctent. in warranty cases (Wash.), 996. 
 Of dependency (Wash.). 990. 
 
 Privileged testimony of physician (Wash.). 992. 
 What required to change written settlement (Wis.), 1029.
 
 INDEX 1083 
 
 EVIDENCE— Continuea : 
 
 Proofs of death as to suicide (Wis.). 1028. 
 
 Admissions in suicide case (Wis.), 10'25. 
 
 Admissibility of dcolarations (Wis.), 102;). 
 
 Proofs of deatli sliowing suicide coinpetont I Wis.), 1022. 
 
 Report by local examiner (Wis.), 1021. 
 
 For burden of proof, see Burden of Proof. 
 
 See Privileged Communications, Waivers, Physician and Patient. 
 EXEMPTIONS: 
 
 Fraternal societies exempt from iiisuraiiee laws (Cal.l. 43. 
 
 From insurance laws, societies enjoy (Cal.), 4;!. 
 
 Statute, construction of (Conn.), 71. 
 
 Of benefit fund from attachment (111.), IT.*^. lOO. 
 
 Of societies from taxation, unconstitutional (HI.), l(i.'>. 
 
 From insurance laws in favor of societies (Iowa), 284. 
 
 Societies enjoy, from insurance laws (Iowa), 277-27S. 
 
 From taxes of property of fraternal societies (Kas.), ;i20. 
 
 In favor of societies from insurance statutes (Mass.), 440. 
 
 In favor of benefit funds from creditors' claims (Md.), 411-412. 
 
 In favor of societies from insurance laws (Mich.), 474. 
 
 Of funds from alimony claim (Mich.), 47<i. 
 
 Wlien benefit funds lose right to (Mich.), 473. 
 
 From general insurance laws in favor of societies (Mo.). .580-581. 
 
 Statute relieving benefit funds from creditors' claims, unconstitutional 
 (Ohio), 793. 
 
 From insurance laws in favor of societies (Ohio), 7i'2. 
 
 From insurance laws in favor of societies (N. H.), 117.5. 
 
 From general laws in favor of societies (S. D.), 881. 
 
 Statutes in Texas constitutional (Texas). !l2(i. 
 
 Of societies from general statutes (Texas). !I44. 
 
 In favor of societies fi'om general laws (Texas). 1)22. 
 
 FrriMi taxes does not extend to club liouso (Wis.), 1027. 
 EXHAUSTING REMEDIES: 
 
 See Courts. 
 EXPERT OPINION: 
 
 • If a physician as to suicide (111.), 175. 
 EXPULSION: 
 
 Of member; setting aside verdict by court (Cal.). 'M. 
 
 Of members and lodges: Unincorporated >oeiety (Cal.). 45. 
 
 For misconduct justified (Mo.), G03. 
 
 Laws and procedure must be strictly followed (Mo.). 007. 
 
 Liability of members for prosecuting member for offenses against society 
 (X. H.), 675. 
 
 Unlawful; rights of member (N. J.), 095. 
 
 liight of defense under laws of society (X. J.), 097. 
 
 When unlawful, member may bring suit of mandamus (X, .].). 095. 
 
 Duty to exhaust remedies under laws of society (Ore.), 820. 
 
 When member can ask courts to set aside (T*a.). 847.
 
 1084 FRATERNAL SOCIETY LAW 
 
 EXPULSION— Continued : 
 
 When right may be exercised (Pa.), 842. 
 
 An incident to the usual powers of societies (R. I.), 854. 
 
 Member entitled to notice of charges before (R. I.). 85.3. 
 
 Latitude allowed societies (Tenn.), 900. 
 
 Member may lose riglits though same illegal (Texas), 935. 
 
 Charges of a general nature as basis for (Wash.), 996. 
 
 When reviewable by courts (Wash.), 995. 
 
 E.xpulsion of insane member (Wash.), 993. 
 
 For suspensions, see Suspension. 
 
 For trials, see Trials. 
 
 For resort to civil courts, see Courts. 
 FAMILY: 
 
 What is, and who are included (Conn.), 72. 
 
 Who are included in term (Ga.), 115. 
 
 Definition of (Ga.), 116. 
 
 Who compose (Mass.), 439-440. 
 
 Member of, as beneficiary (Mich.), 409. 
 
 Stepfather as member of (Mich.), 475. 
 
 Definition of: status at maturity of contract fixes rights (Mo.). 008. 
 
 Definition of (Mo.). 605. 
 
 See Beneficiary and Dependents. 
 FIANCEE: 
 
 Rights of, as beneficiary (Cal.), 42. 
 FLORIDA: 
 
 Has no fraternal beneficiary code. For digest of cases, see page 102. 
 FOREIGN SOCIETY: 
 
 .Meetings may be held out of State whore chartered (Colo.). 54. 
 
 Jurisdiction over, by courts iD. C.I, 99-100. 
 
 Rights of (111.), 180-187-195. 
 
 Service of Summons on (Mass.), 445. 
 
 Internal affairs of, cannot be controlled by courts (ild.), 413-414. 
 
 Treated same as domestic (Mo.), 593. 
 
 Suicide provisions in laws of (Mo.), 585. 
 
 Requisites of pleading and proof as to (Mo.), 583. 
 
 Rights of (X. C.I. 7.57. 
 
 (Corporations) have rights onl}- by grace (N. C), 755. 
 
 Contracts governed by laws of North Carolina (X. C), 753. 
 
 Receiver not to be appointed for (X. C), 752. 
 
 Statute of limitations does not run in favor of (N. C), 751. 
 
 How domesticated (N. C), 749. 
 
 When contract of, a New York contract (N. Y.), 721. 
 
 Right to State license (Ohio). 791. 
 
 Service of process upon local agent of (Ore.), 817. 
 
 Right to hold meetings outside of State of charter (Pa.), 842. 
 
 Foreign societies, jurisdiction of courts over (Tenn.), 912. 
 
 Suit against, and venue of (Texas). 928. 
 
 Rights of (Va.). 07(i.
 
 INDEX 1085 
 
 FOREIGN SOCIETY— Continued : 
 
 Si'i \ ill' ii|ii>ri (\\;isli.). Illl."). 
 
 Sfo Society and Summons. 
 FOREIGN STATES: 
 
 Presuiii[itii)Ms :is to stiitiiU'> of (III. I, 171. 
 
 Meetings held in (K;is. |, ;j-i(i. 
 
 Courts do not take notice of statuti-.s of (Ku.s.) 32!). 
 
 Laws of. prcsiiiiicd to lie same as tliose of Xew York OT. Y.), 732. 
 FORFEITURE: 
 
 Of certifieiite for noii |iavi]iiMit of asscs^nu-nts (.\ik.), 27. 
 
 For nonpayment of assossnient (Cal.), 43. 
 
 Of certificate for nonpa\ nient of assessments (Cal.) 32. 
 
 For non-pajnient of assessments (Cal.), 43. 
 
 Members' property riglits (Cal.), 46. 
 
 Case where after-enacted laws involved (Colo.), i>~i. 
 
 For failure to pay extra assessments for hazardous occupations (Colo.), 54-55. 
 
 Reinstatement (Colo.), GO. 
 
 No reinstatement of contract after member's death (D. C), 100-101. 
 
 Custom; estoppel (Ga.). 108-109. 
 
 Promissory warranty (Ga.), 114. 
 
 Clauses not favored (Ga.), 115-116. 
 
 By member's violation of criminal law (Ga.), 117-118. 
 
 Of rights of beneficiary by murdering member (111.). 172. 
 
 Duty to use surplus funds to prevent (III. I. ISI. 
 
 ■Waiver of right of (III.), 182. 
 
 When not self-executing (III.). 183. 
 
 And suspension (111.), 186. 
 
 Right to. waived by local lodge (III. I. ISO. 
 
 And suspension (111.). 102. 
 
 Waiver of, by acts of subordinate lo.lgc (ill. I. 107. 
 
 Waivers by agents (Iowa), 294-295. 
 
 Self -executing provisions (Iowa), 286. 
 
 Absence of collecting officer (Iowa), 295. 
 
 Health certificate; advance payments (Iowa), 278. 
 
 Funds in hand to be applied before (Iowa), 276-277. 
 
 Waiver of (Ind.), 227. 
 
 Waiver of grounds of (Ind.). 242. 
 
 Waiver of, by agent (Ind.), 242. 
 
 Waiver and estoppel; prohibited occupations ilnd.l. 240. 
 
 Self-executing provisions (Ind.), 238. 
 
 Duty of court to declare (Ind.), 238. 
 
 Payment of delinquent amount (Ind.), 230. 
 
 Unreasonable by-laws (Ind.). 235. 
 
 Right to, waived (Ind.). 233. 
 
 For entering prohibited occupation; amended by-laws (Kas.), 313. 
 
 Custom of receiving payments (Kas.), 315. 
 
 Self-executing provisions (Kas.) 328. 
 
 Surplus credits of member in hands of society (Kas.). 318.
 
 1086 FRATERNAL SOCIETY LAW 
 
 FORFEITURE— Continued : 
 
 Ipso facto (Ky.). .'i.'io. 
 
 Self-executing provisions (La.), 3(13. 
 
 Waiver (Me.), 300-391. 
 
 Payment of assessments after member's death (ild.), 412. 
 
 Waiver of (JId.), 412. 
 
 By change of occupation (ilinn.). 522. 
 
 Xo waiver of, by negotiations (ilinii.l. 522. 
 
 For failure to pay advance assessments (Minn.), 532. 
 
 Estoppel by course of dealing (Minn.), 532. 
 
 Reinstatement (ilinn.), 52S. 
 
 Requirements for reinstatement (Mass.), 440. 
 
 No recovery for payments made (Mass.), 446. 
 
 AVarranty (Mass.), 444. 
 
 Waiver of (Mich.), 492. 
 
 For failure to make payments (Mich.). 489. 
 
 Custom of receiving late payments (Mich.). 489. 
 Payments accruing during disability (ilich.), 4S7. 
 Retention of payments (Mich.), 483. 
 
 Status at death determines contract (Mo.), 593. 
 
 \ATien misrepresentation voids contract; rule as to pleading (Mo.), 592. 
 
 Agency of local officer; waiver of laws (Mo.), 591. 
 
 Requisites of reinstatement (Mo.), 588. 
 
 Requisites in pleading (Mo.), 588. 
 
 For non-payment must be based on agreement (Mo.), 583. 
 
 Of member delirious when assessments due (Mo.), 580. 
 
 Self -executing provisions (Mo.), 579. 
 
 Failure to pay increased rates forfeits contract ; no damages recoverable for 
 
 inability to reinsure (Mo.), 579. 
 Fraternal society contracts not under State non-forfeiture statutes (Mo.), 
 
 578. 
 Fraternal society contract subject to (Mo.), 577. 
 Rights of wronged member (Jlo.), 004. 
 Precedent conditions to reinstatement (Miss.), 554. 
 Under after-enacted by-laws valid (Xeb.), G55. 
 Self-executing provisions (Xeb.), 054. 
 
 Receipt of dues and assessments from member waives (Xeb.), 054. 
 Waivers of laws not favored (Xeb.). 653. 
 Notice of assessments (Xeb.) 653. 
 Self-executing laws (Xeb.), 649. 
 Collector's neglect (Xeb.), 648. 
 Waiver of, and estoppel (Xeb.), 043. 
 Waiver of (Xeb.). 634, 638, 645. 
 By-law- not self-operative (X. J.), 697. 
 Burden of showing at all times (X. J.), 691. 
 Self-executing provisions (N. C), 750. 
 
 When lodges required to make payments to prevent (Ore.), 820. 
 Self-executing provisions for, valid (Pa.), 846. 
 Reinstatcnu'ut optional with society (Pa.), 841.
 
 INDEX 1087 
 
 FORFEITURE— Continued: 
 
 Keinstalement of inoniber (S. ('.). Sfio. 
 
 Must be pleaded specially (S. C), S(il. 
 
 Of charter of society; disposal of property (S. C.l, SflO. 
 
 For failure to pay assessments (S. C), 859. 
 
 Waiver by coiirsc (if dealing (Teiiii.), Dll. 
 
 Self-executing provisions ('I'cnn.), !)10. 
 
 Waiver by custom of dealing (Tenn.), 900. 
 
 Through vices or habits (Tenn.), 907. 
 
 Prerequisites to enforcing (Tenn.), 905. 
 
 Waiver of; course of dealing (Tenn.), 905. 
 
 No presumptions of legality as to assessments levied (Tenn.), 904. 
 
 For failure to make payments (Texas), 930. 
 
 Right of, must be exercised strictly (Texas), 932. 
 
 When duty of lodge to prevent by payment (Utah). 050. 
 
 Where right to, is waived (Va.),, 909. 
 
 Waiver of laws; estoppel (Va.), 974. 
 
 No waiver of laws by custom of local lodge officers (\'a.), 974. 
 
 Waiver and custom (Vt.), 958. 
 
 Insane member required to pay assessments (Wash.), 997. 
 
 Application of advance payments (Wash.), 993. 
 
 No waiver by holding member's payment (W. Va.), 1002. 
 
 Wlien receipt of overdue assessments does not waive (Wis.), 1021. 
 
 Waiver of prompt |iayiiieiit of assessments (Wis.). 1(117. 
 
 For suspension, see Suspension. 
 FRATERNAL SOCIETIES: 
 
 See Societies. 
 FUGITIVE: 
 
 Absence for seven years (Ky.), 330. 
 
 See Absence. 
 FUNDS: 
 
 Use of reserve (Cal. ). 40. 
 
 Surplus, rights of members in (111.), 177. 
 
 Of fraternal societies liable for taxes (111.), 185. 
 
 Duty to use surplus to prevent forfeiture (111.) 181. 
 
 In hands of society to be used to prevent member's forfeiture (Iowa), 276-277 
 
 To be kept separate by classes (Ky.), 336. 
 
 Reserve, after enacted laws respecting (Mass.), 441-442. 
 
 Of local lodge not property of society (Mich.), 487. 
 
 Held for mortuary pui-poses are trust (N. C). 756. 
 
 Not subject to taxation (Neb.), 6.50. 
 
 For moi-tuary purposes sacred (Ncb.l. 643. 
 
 Members' rights to (Neb.), 637. 
 
 Members' payments are trust funds (Pa.), 839. 
 
 See Benefits, Reserve Fund, Taxation. 
 GARNISHMENT: 
 
 Of society's funds defense to action on contract (Ariz.), 29. 
 
 Of benefit fund; duty of society (111.), 178. 
 
 Funds after payment no longer exempt (!Mich.). 475.
 
 1088 FRATERNAL SOCIETY LAW 
 
 GARNISHMENT— Continued: 
 
 Fund exempt from claims for alimony (Mich.), 476. 
 Provision exempting benefit fund held unconstitutional (Ohio), 793. 
 Fund exempt from seizure for debt (Texas), 925. 
 When funds not exempt from seizure for debt (X. Y.), 727. 
 Benefits exempt from creditors' claims (N. Y.), 714. 
 See Attachment and Creditors. 
 GEORGIA: 
 
 ^Statute relating to fraternal societies, 103-107. 
 
 Fraternal beneficiary society defined. 103. 
 
 May pay benefits in case of death, sickne-ss or disability, 103. 
 
 May accumulate and maintain reserve fund, 103. 
 
 Must not be operated for profit, 104. 
 
 Benefit and expense funds to be derived from assessments, 104. 
 
 Class of beneficiaries, 104. 
 
 Benefit societies exempt from provisions of general insurance laws, 104. 
 
 Society now having members in State may continue business by filing annual 
 
 report and appointment of Insurance Commissioner as attorney, 104. 
 Other societies must file certificate from insurance official in state where 
 
 incorporated, 104. 
 Also certified copies of charter, articles of incorporation, constitution and 
 
 laws, 104. 
 Must also appoint insurance commissioner attorney, 104. 
 
 Society must file annual report, 104-105. 
 
 How suit may be brought against society; service of process, 105-106. 
 
 Insurance Commissioner to issue permit, 106. 
 
 Failure to make report; penalty, 106. 
 
 Violation of statute; penalty, 106. 
 
 Societies not affected by this statute, 106, 107. 
 GOOD HEALTH: 
 
 Stipulation as to reinstatement (Ark.), 20. 
 
 Contract not effective until payment of first premium while in (Ark.), 23. 
 
 Definition of (111.). 168. 
 
 Warranty as to (Ind.). 231. 
 
 Misrepresentation (Me.), 387-388. 
 
 Definition of (Mo.), 601. 
 
 See Reinstatement. 
 GOOD STANDING: 
 
 Definition of (Conn.), 69. 
 
 When will courts interfere to maintain (D. C), 99. 
 
 Resort to civil courts (D. C), 99. 
 
 Society's books not only evidence of (111.), 168. 
 
 Presumed to continue from date of certificate (111.), 180. 
 GUARDIAN: 
 
 Has no power to compromise ward's claim (III.), 173, 174. 
 HAWAII: 
 
 Insurance statutes, 119-128. 
 
 Commissioner; qualifications; forms and blanks, 119. 
 
 Deputy Commissioner. 119- 120.
 
 INDEX 
 
 1089 
 
 HAWAII— Continued: 
 
 Coinmissioiicr sliull report to legislatiire. 120. 
 
 Powers and duties of Commissioner, 120. 
 
 Commissioner to issue certificate of authority to societj-, 121. 
 
 Company to file copy of cliarter and articles of incorporation, 121. 
 
 Term and revocation of ccrtilicali' of authority, 121. 
 
 Publication of revocation of license, 122. 
 
 Business without certiticate of authority unlaw fill; penalties, 122. 
 
 Insurance agent must be licensed; penalty, 122-123-124. 
 
 Must be bonded, 124. 
 
 Must file statement of gross premiums charged on insurance placed, 124. 
 
 Must pay to Insurance Commissioner 4 per cent of such gross preniiiinis, 124. 
 
 Insurance Commissioner may examine policies issued. 124. 
 
 Policies issued without compliance with stat\ite. void. 124. 
 
 Resident agent to Ije a])pointed: penalty. 12.5. 
 
 Company must tile power of attoiney with ( iiininir^sioiier. 12.'). 
 
 Service of process, 125. 
 
 Annual statement, 12G. 
 
 Foreign corporations, 126. 
 
 Fees payable to Commissioner, 127. 
 
 Taxes; penalty, 127-128. 
 HABITS: 
 
 Excessive indulgence in intoxicating lic|Uors (Ind.), 237. 
 
 Excessive use of intoxicating liquors (Ind.), 243. 
 
 Of member; breach of warranty (Ind.), 237. 
 
 Misstatement of, by applicant (Ky.), 331. 
 
 Death from (Me.), 388. 
 
 Of member, testimony of non-expert as to (X. D.), 771. 
 
 Intemperate, what is, a question of law (S. C), 861. 
 
 As cause of forfeiture (Tenn.), 907. 
 
 Question as to, in application construed (Texas). 940. 
 
 Statements in apjilication respecting (Texas), 930. 
 
 See Forfeiture and Suspension. 
 HEALTH: 
 
 Certiticate required as condition for reinstatement (Iowa). 278. 
 
 Certificates, waivers of (Mo.), 598. 
 
 Actual condition, not apparent health, governs (X. D.). 771. 
 HEIRS AT LAW: 
 
 Definition of (Aj'k.), 23-24. 
 
 Who are (Cal.), 40. 
 
 Legal heirs; what are their rights wlien designation fails (Colo.), I'lO-Ol. 
 
 Who are (Colo.), 57. 
 
 As beneficiaries (Hawaii!. 129-130. 
 
 Rights of, as beneficiaries (111.), 191. 
 
 Rights of, where beneficiary murders member (111.). 173. 
 
 Heirship, order of, where failure of designation of beneticiary (111.). 173. 
 
 Include illegitimate children (Iowa). 293. 
 
 Definition of; widow is heir (Mo.). 004. 
 69
 
 1090 FRATERNAL SOCIETY LAW 
 
 HEIRS AT LAW— Continued: 
 
 Meaning- of (X. Y.). 725. 
 
 Who are (Pa.), S44. 
 
 Heirs and wife as beneficiaries (S. C), 863. 
 
 Who are within the term (Wis.). 1028. 
 
 See Beneficiaries. 
 HOME STATE: 
 
 Meetinss lield ontsiae of (111.). 102. 
 
 Si'f Meetings ;inil Powers. 
 HUSBAND AND WIFE: 
 
 Privileged coninnmications between (Iowa), 292. 
 
 See Evidence and Privileged Communications. 
 IDAHO: 
 
 Statute relating to fraterniil societies, 131-139. 
 
 Definition of fraternal society. 131. 
 
 Benefit and expense funds to he derived from assessments. 131. 
 
 Class of beneficiaries, 131. 
 
 Society ma^' create and maintain reserve fund, 131-132. 
 
 Associations already formed may continue by complying with provisions of 
 statute regarding annual report and appointment of attorney, 132. 
 
 Foreign societies to file copy of charter, articles of association, constitution 
 or laws, 1.32. 
 
 ilust appoint Commissioner as attorney, 1.32. 
 
 Must be authorized to do business in state where incorporated. 1.32. 
 
 Commissioner may examine afi'airs of society, 132. 
 
 Expense of such examination to be borne by society and not to exceed $50.00, 
 132-13:3. 
 
 Annual reports. 133-134. 
 
 Service of process on society. 134-135. 
 
 Permit to do business, how obtained. 135. 
 
 Mode of incorporation. 135-13(i. 
 
 Employment of agents. 130. 
 
 Contract of beneficiary to pay dues: efl'ect of, 13(i. 
 
 Benefits not liable to attachment for del)t. 1:30. 
 
 Jleeting of Supreme Lodge. 130-137. 
 
 Fraudulent statements; penalties. 137. 
 
 Failure to make report; penalty, 137-138. 
 
 Failure of officer or agent to comply with statute: neglect to obtain certifi- 
 cate of authority; penalty, 138. 
 
 Fee for annual report. 139. 
 
 Chapter does not ajiply to Masons. Odd Fellows, etc., 139. 
 IDENTITY: 
 
 Evidence of (Pa.). 8.30. 
 IGNORANCE: 
 
 of member as to laws of society inexcusable (1). C. ). 100. 
 
 Of members as to laws, efl'ect of (.\ld.). 417. 
 
 Of facts no excuse (ild.), 407.
 
 INDEX 1091 
 
 ILLEGITIMATES: 
 
 llli'f,'itiiii;ite i-liildicii iiicliiilcil in 1<tiii lii'irs :it l:nv (Iowa), 29.'). 
 
 Jlay l)e beTieliciarics (Ti'Xas), !)42. 
 ILLINOIS: 
 
 Statute relating' to fratonial societies, Hl-lSS. 
 
 Fraternal beiiellciary society defined, 141. 
 
 Societies may create and maintain reserve fund, 141. 
 
 No part of reserve fund to be used for expenses, 141. 
 
 Class of beneficiaries, 142. 
 
 Mcmlici- witlioiit wife or cliildrcn may make cliaiilalilr instinition beneficiary, 
 1 42, 
 
 Oinimcicial travelers may incorporate under tbis act, 142. 
 
 Existing societies may continue; conditions, 142-143. 
 
 Admission of societies; conditions, \iZ. 
 
 Annual report, 144-145. 
 
 Insurance Commissioner may examine all'airs of society. 14.5-140. 
 
 Cost of sucli examination to be borne by society, 14.5-140. 
 
 Society must publisli annual report, 146. 
 
 Foreign society to furnish to Commissioner copy of examination in state 
 where organized, 140. 
 
 Insurance Superintendent to be appointed attorney, 14i;-147. 
 
 Application to continue business, 147. 
 
 Mode of incorporating; requirements; certificate of association, 147-148. 
 
 How articles of association may be changed. 149. 
 
 Shall not have paid agents, 14!1, 
 
 Benefits exempt from attachment for debt. 149. 
 
 Meetings of Supreme Lodge. 149-1.50. 
 
 False representations; penalty, 151}. 
 
 Examination by insurance superintciulcnt ; aniuuil report: penalty. 150-151. 
 
 Violations of statute; penalty, 151-152. 
 
 All conflicting acts repealed, 1,52. 
 
 Powers and duties of Insurance Commissioner, 152-15.3. 
 
 Investment of, societies' funds, 153. 
 
 Securities may be deposited with Insurance Commissioner, 153-154-155. 
 
 Societies may give sick benefits, hospital or medical service. 155-1.58. 
 
 May create special fund for such purpose. 155-158. 
 
 Wlio may be <'lectcd delegates, etc., of fraternal societies; penalties, 158. 
 
 Rights of foreign society in (111,), 186-187. 
 
 Wlien contract is to l)e regarded as ah Illinois contract (111.), 187. 
 ILLNESS: 
 
 Defined (Vt,). 957, 900, 
 IMPAIRMENT: 
 
 Of cimtracts by after-enacted laws (111.), 187. 
 INCOMPETENCY: 
 
 of mcmlier as witness, wlien (111,), 183. 
 INCONTESTABILITY: 
 
 Changed by after-enacted laws (Ala.), 8. 
 
 Incontestable clauses valid (III.), 180. 
 
 Incontestable contracts, how affected by amendments (Ind.). 248-250.
 
 1092 FRATERNAL SOCIETY LAW 
 
 INCONTESTABILITY— Continued : 
 
 Incontestable clause, eft'ect of (Ind.), 255. 
 Suicide (Kas.), 317. 
 
 Incontestable clause, extent of (R. I.), 852. 
 
 False statements a.s to healtli covered by im-ontestalili- chui-f iWis.i, inill. 
 INDIANA: ' 
 
 Statute relating to fraternal societies. 200-227. 
 
 Fraternal .society, definition of. 200. 
 
 Sources of revenue, 201. 
 
 Exempt from operation of general insurance laws, 201. 
 
 Reserve or emergency fund, 201. 
 
 Existing corporations may continue to do business: conditions; penalties, 
 
 201-202. 
 Admission of foreign associations, 202-20C. 
 Certificates must be paid in full, 203. 
 Mortality table, 203-205. 
 
 Must file cop}' of constitution or by-laws, 205. 
 Appointing Auditor of State as attorney, 205, 208. 
 
 Must lie authorized to do business in state where incorporated, 205-206. 
 Examination of society's books and afl'airs; expense. 200-210. 
 Annual report. 200-208. 
 License and fee, 206, 209, 
 Service of process; fee, 208-209. 
 Organization of fraternal societies, 210-211. 
 Articles of association; form; fee, 210-212. 
 Heincorporation of existing associations, 212-213. 
 Eights and powers of fraternal societies, 213. 
 Shall not employ paid agents, 213. 
 Right of member to change beneficiary, 213-214. 
 Exemption from attachment, 214. 
 Exemption from taxation, 214. 
 
 Legislative body of society may meet outside of state, 215. 
 Applications for membership; false or fraudulent statements; penalty, 
 
 215-216. 
 Failure to make reports; penalty, 210. 
 Injunction from ti'ansacting business; roadmission. 210. 
 Violating injunction; penalty, 210-217. 
 
 Penalty for doing business for unauthorized associations. 217. 
 Retaliatory section, as between states, 217. 
 Societies exempt from provisions of this act, 217. 
 Lodges of Masons, etc; articles of association, 218-219. 
 Purposes of association, lodges of Masons, etc., 218-219. 
 Must present articles of association to Secretary of State, 219. 
 Powers and rights of associations, 220. 
 Duties of Auditor of State; receiver, 220. 
 Society must file copies of articles of association, constitution and by-laws 
 
 with Auditor of State, 220. 
 ■Capital stock, increase or decrease, 220-221.
 
 INDEX 1093 
 
 INDIANA— Continued: 
 
 Election of ollicers; records iiiay lie used as evidence, 221. 
 
 Dissolution of association; receiver, 222. 
 
 Jurisdiction of court, 22. 
 
 Duties of receiver, 222-22.3. 
 
 Final order for dissolution; diitv ul ricrk <il cuurt, 22.3. 
 
 Right to amend or repcnl tliis iict. 223. 
 
 Laws repealed. 223 224, 
 
 Riglits of existing corporations, 224. 
 
 Benefits exempt from creditors' claim, wlien, 224-225. 
 
 Venue of action ; service of process, 22.5. 
 
 Right to change beneficiary, 225-226. 
 
 Commencement of suit in, or removal of suits to, United States courts; 
 ])enalty, 220. 
 
 Provisions fif tliis act are conditions precedent, 227. 
 
 [■'ratiTiial act construed (Ind.), 251. 
 INITIATION: 
 
 Failure to lie initiated invalidates certificate (Ark.), 25-26. 
 
 Election of ap|)licant to office before (Ark.), 26-27. 
 
 Society not responsible for injuries to member during {!Mich.), 474. 
 
 Condition precedent to issuance of certificate waived (^Mich.), 487. 
 
 Essential condition to liability (Mo.), 597. 
 
 A condition precedent (Neb.). 044, 
 
 When society liable for injiu'ies sustained ilurin;;- (X. Y,). 7UJ. 
 
 Society liable for damages sustained in (S, (',). 803, 
 
 Jfay be waived by society (Texas), 937. 
 INJURIES: 
 
 During initiation (ilich.), 474; (\. Y,). 710; (S. C). 803. 
 INSANITY: 
 
 Sane or insane after-enacted suicide laws iGa,). 112. 
 
 Sane or insane suicide clause (Ga.), 110, 
 
 Sane or insane suicide provisions in certificates valid illl,i. 184-185. 
 
 Sane or insane provisions valid (111.), 179-180. 
 
 Sane or insane clause valid (111.). 167. 
 
 Suicide by insane member (111.), 184-185. 
 
 No defense in suicide cases (111.), 159. 
 
 No defense in suicide cases {111.), 179-180. 
 
 Insane impulse, definition of (111.). 172, 
 
 How far sullicient to prevent inember's changing liis beneficiary (Iowa), 287. 
 
 Sane or insane, suicide (Kas.), 323. 
 
 Sane or insane, suicide, definition of (Ky,). 335. 
 
 Suicide during (Ky.), 334. 
 
 Suicide during (Mich.), 477. 
 
 Sane or insane, suicide (Minn.), 523. 
 
 Insane member, suicide of (Minn.). 519. 
 
 Sane or insane provision in suicide law valid (N. C). 753. 
 
 Sane or insane suicide law valid (Pa.). 834. 842, 837. 
 
 Sane or insane clause valid (S. C), 862.
 
 1094 FRATERNAL SOCIETY LAW 
 
 INSANITY— Continued: 
 
 A bar to designatior. of bencti<-iary (Tenii.), 905. 
 
 Of member no bar to society's afl'ecting liis contract by legislation (Tenn.), 
 900. 
 
 Suicide of member during (Wasli.), !)i)4. 
 
 Of member does not relieve of obligations (Wash.), 997. 
 
 Trial of insane member, etc. (^\'asll.). 993. 
 
 Expulsion of member during (Wash-.), 993. 
 
 For suicide wliile insane, see Suicide. 
 
 For chiuse, "sane or insane," see Suicide. 
 INSOLVENCY: 
 
 Reserve fund cannot be used while society is solvent (Cal.). 4(i. 
 
 Definiticm of solvent society (Neb.), 639. 
 
 Rights of members in case of insolvent society (Pa.), 841. 
 
 i;cci-ivi-i- fill iii-iilM-nt society (Pa.). S37. 
 INSTALLMENT CERTIFICATE: 
 
 Ai-tidii lie-. Miily cin drfault iil' |iayment of each installment (Te.vas), 932. 
 INSURABLE INTEREST: iMi.h.i 407. 
 INSURANCE COMMISSIONER: 
 
 Mandamus against (111.), 191. 
 
 Service upon, not exclusive method (111.), 159. 
 
 Service of summons on, confers jurisdiction on society (X. C). 756. 
 
 Service of process on (N. C), 749. 
 
 Power of attorney to. is irrevocable (X. (.'.), 748. 
 
 Power of attorney to (X. C). 751. 
 
 Discretion of (Neb. ) . 642. 
 
 Duty of, in case of non-coiii|iliaiu-i' of society witli law (X'eb.), 041. 
 
 Duties of, ministerial respecting issuance di licensf (X'. Y.). 729. 
 
 Mandamus of (Ohio), 791. 
 
 Mandamus against (Wis.), 1023. 
 INTEMPERANCE: 
 
 Dcatli fr..ni llnd.l. 240. 
 INTEREST: 
 
 Allowabli. (Ill claim (liiwal. 286. 
 
 Wlien pidpcr to allow I U. I.), 856. 
 INTEREST, VESTED: 
 
 Sec Vested Interest. 
 INTERPLEADER: 
 
 Society alone can claim nun-liability (Ark.), 24. 
 
 Right of, by society (Cal.), 42. 
 
 Right of (Cal.), 42. 
 
 Counsel fees (Ga.). 110. 
 
 Evidence under (Mich.). 475. 
 
 Rights of beneficiary not allcctcd by iMont.l. 611. 
 
 Does not help out incomi>etcnt beneliciary (X. J.). 694. 
 
 What questions settled (X. Y.), 727. 
 
 Rights of beiteficiary under (Ore.). 819. 
 
 Attornev's fees not allowable out of fund (Texas), 930.
 
 INDEX 1095 
 
 INTOXICANTS: 
 
 l-'iir iisr lit', sec Habits. 
 INVALID CLAIMS: 
 
 Suit liy iiii'inlicrs In prcvi'iil |i;iyiiioiit nl' ( I ml. 1 . 231. 
 IOWA: 
 
 Statute relating to fiateinal societies, 2'M. 274. 
 
 Definition of fraternal society. 256. 
 
 Societies shall make provision for payment of death benefits, 25G. 
 
 Benefit fund to be derivod from assessments, 250. 
 
 Insurable age. 257. 
 
 Class of beneficiaries. 2.-17. 
 
 Societies to be exempt t'lcMii operation of general insiuiiiu-e law, 257. 
 
 Copy of application to be attached to certificate, 257. 
 
 Where societies may be sued, 257. 
 
 Benefits exeni])t from attncliniciil I'cir debt, 258. 
 
 Foreign societie.s, 25S. 
 
 Must file copy of charter, articles of association, constitution or laws, 2.58. 
 
 State Auditor may examine society's books and accounts, 258. 
 
 Expense of such examination to be borne by society. 258. 
 
 Annual report; form, 258-260. 
 
 Appointment of State Auditor as attorney; service of |n-oces.-.. 2(iO. 
 
 Authority to do business: conditions; license fee. 201. 
 
 Society shall not employ paid agents. 201-202. 
 
 Change of beneficiary, 262. 
 
 IMeetings of Supreme T.odge, 262. 
 
 Violations of statute: penalties, 262-263. 
 
 Doing business without authority; agents and officers, penaltv, 20.3. 
 
 False representations by officers or agents; penalties. 203. 
 
 Applicants for membership to be examined by physician. 203. 
 
 Act of March 17. Ifl04, regarding examination of societies. 204-206. 
 
 "Association" defined, 264. 
 
 Examinations; assistants; compensation. 2(i4. 
 
 Officers of society to assist in examination; examiner nuiy administer oaths, 
 
 264. 
 Revocation or suspension of license: appointment of receiver. 264-265. 
 Expenses of examination to be borne by society. 205. 
 Soliciting business during revocation of license: penalty. 265-206. 
 Act of March 30. 1004. prox iding for consolidation of fraternal societies, 
 
 266-267. 
 Plan of consolidation to be ]iresented to State Auditfir fur approval. 200. 
 Reinsurance of members, 266. 
 
 Plan of consolidation to be submitted to all associations interested, 206. 
 Plan of consolidation or re-insnrancc ULUst be ap]iiiived bv a two-thirds vote 
 
 of the members. 266. 
 State Auditor shall direct such distribution of assets as ma,v be just and 
 
 equitable, 267. 
 Expenses of consolidation to be borne \>y associations interested, 267. 
 Violation of statute; penalty, 267.
 
 1096 FRATERNAL SOCIETY LAW 
 
 IOWA— Continued: 
 
 \\ lii'ie iiisuiaiice eoiiipaiiips iiiav be sued, "267. 
 
 Act of February 9. 1907. a])))lying Sec. 1794 of Insurance Code to fraternal 
 .societies, 209-274. 
 
 Foreign companies eligible to do business; oonditions. 209. 
 
 ilust file copy of charter, article> of incorporation, bylaws, application, and 
 certificate of membership, 209. 
 
 Society must rile statement showing name, location, principal place of busi- 
 ness, officers, assets, etc., 269. 
 
 State Auditor to issue license, 269-270. 
 
 State Auditor may examine books and accounts, 270. 
 
 Revocation of license, 270. 
 
 Permission to do business: conditions. 270. 
 
 Fraternal Congress mortality table, 271-272. 
 
 Fraternal society may own real estate, erect buildings, etc; conditions, 272- 
 273. 
 
 Investment of funds. 27.3-274. 
 JUDGMENTS: 
 
 Juror member of society m suit (Bel.). 82. 
 
 Verdict of jury may rest upon b\it little evidence (Ind.), 248. 
 
 Time within which they must be paid (Kas.), 311-312. 
 
 Time to perfect appeals from (Kas.), 314. 
 
 Appeal from void, not necessary (Wis.), 1023. 
 JURISDICTION: 
 
 Of courts over lodge disputes (Cal.), 44, 47. 
 
 By courts over lodge trials (Cal.), 39. 
 
 Of courts when members in contest with society (Cal. I, 37. 
 
 Of courts over foreign societies (D. C), 99-100. 
 
 Of courts to review lodge trials (Iowa), 288. 
 
 Suit may be brought in any county where loss occurred (Iowa), 268. 
 
 Contracts restricting, void (Iowa), 208. 
 
 Of suits against societies (Iowa), 267. 
 
 Of courts over lodge trials (Kas.), 317. 324. 
 
 Conflicting (Kas.), 319. 
 
 Of courts over foreign societies (ild.). 413-414. 
 
 Of tribunals of societies (Md.). 417. 
 
 For suit on certificate (Xeb.j. 641. 
 
 See Courts and Trials. 
 KANSAS: 
 
 Statute relating to fraternal societies. 299-310. 
 
 Definition of fraternal beneficiary society, 299. 
 
 Must have representative form of government, 299. 
 
 Must pay death benefits, 299. 
 
 Benefit fund to be derived from assessments. 299. 
 
 Class of beneficiaries. 300. 
 
 Conditions on which foreign societies may do Imsiness. 300. 
 
 ilust file copy of charter, articles of incorporation, constitution ami laws, 
 300.
 
 INDEX 1097 
 
 KANSAS— Continued : 
 
 Must be authorized to do business in state where organized, 300-301. 
 
 Superintendent of Insurance may examine hof)k« ;uifl arcnunts: expenses of 
 examination, 301. 
 
 Annual statement. .'^Ol-.'iOS. 
 
 Ap|iointnient of SupcriMtcndeMt "I' lii>iirance as attorney; service of process, 
 303-304. 
 
 License to, do business. 304. 
 
 Method of organization for fraternal societies. .304-30.5. 
 
 Fraternal societies shall be bodies corporate, 30.5. 
 
 Eights, duties, and liabilities, 305-306. 
 
 Unlawful for officers to use mortuary or emer^'cncy fund for i-xiicnse pur- 
 poses; penalty, 30(i. 
 
 Conditions under which certilicates may be issued. .'iOd-^iO?. 
 
 Amendment of articles of association: meetings of legislative body. 307. 
 
 Benefits exempt from attachment for debt, 307. 
 
 False or fraudulent statcmeiits, penalties. 308. 
 
 Violation of statute; penalty; levocation of liccii-e; a|j|"iiiil iiicnl of receiver, 
 308-309. 
 
 Doing business witlioiit nuthority; penalty, 30!1. 
 
 Decisions of Superintendent of Insurance Ijinding until reversed by court. 310. 
 
 Societies exempt from operation of this statute. 310. 
 
 Agents exempt from payment of license. 310. 
 
 Removal of suits to U. S. courts. .308. 
 
 Paynu'Ut of Judgments. 308. 
 KENTUCKY: 
 
 Kentucky has no fraternal insurance code. 3.30. 
 
 Section 679 of General Statutes not applicable to fraternal societies. 330. 
 
 Section 679 as amended in 1906, 330-331. 
 KIN, NEXT OF: 
 
 As beneficiaries (ilicli.i. 477. 
 KNOWLEDGE: 
 
 Of local lodge imjnited to society (111.), 186. 
 
 Of agents imputed to society (Ind.). 233. 
 
 Of agents imputed (Ind.). '239. 
 
 See Agency and Waivers. 
 LAWS: 
 
 Death in violation of law. what is not (Ark.). 21. 
 
 Are prospective in operation (D. C), 97. 
 
 Ignorance of member of. inexcusable (D. C). 100. 
 
 Violation of its own. by society, effect of (111.), 194. 
 
 Reasonable after enacted, what are (111.), 194. 
 
 When after-enacted, are retroactive (111.), 189. 
 
 Resperting beneficiaries may be waived (111.),. 196. 
 
 Formality not requisite (III.), 193. 
 
 Of State not retroactive (111.). 160. 
 
 Are part of member's contra<'t (Ind.). 236-237. 
 
 Of society; conflict in (Mich.), 491.
 
 1098 FRATERNAL SOCIETY LAW 
 
 LAWS— Continued: 
 
 Assent of member to change in (Midi.), 485. 
 
 Knowledge of, presumed. Waivers by local ollicers not favored (Mo.), 598. 
 
 Dormant by-laws, effect of (X. H.), ti74. 
 
 See Violation of Law, After Enacted Laws, By-laws, Contract, State Laws. 
 LAWS, AFTER ENACTED: 
 
 Si-c After Enacted Laws. 
 LEGAl. HEIRS: 
 
 See Heirs at Law. 
 LEVEL RATE CONTRACT: 
 
 Definiticin of (Mo.l, 57!). 
 LIABILITY: 
 
 On bond is predicated on liability on contract (Ark.), 20. 
 
 On bond, date of beginning of (Ark.), 20. 
 
 Denial of, waives proof of loss (Ark.), 20. 
 
 Precedent conditions to (Ark.), 23. 
 
 Society alone can avail itself of the plea of nonliability (Ark.), 24. 
 
 When does it begin (Ark.). 26-27. 
 
 Denial of, waives proofs of death (Colo.), 58. 
 
 Conditions precedent to (Conn.), 70-71. 
 
 Does not depend upon issuance of cei-tilicate (Ga.), 107. 
 
 For agent's negligence (Hawaii), 129. 
 
 Denial of, waives proofs of death, (111.), 181. 
 
 Conditions precedent to (Iowa), 207-298. 
 
 Conditions precedent to (Iowa), 289. 
 
 Death of applicant before beginning of (Ind.). 234. 
 
 Special agreements limiting (Ind.), 228. 
 
 When it begins (Ky.). .332. 
 
 Beginning of; conditions precedent (Kas.) 311. 
 
 Conditions precedent to (Kas.), 327. 
 
 Denial of, waives jiroofs of loss (La.), 361. 
 
 Conditions precedent to (Mass.). 448. 
 
 Conditions precedent to (Miss.). 5.50. 
 
 Of receivers (Mich.), 486. 
 
 Initiation a condition to (Mo. l. 597. 
 
 Denial of. removes bar to suit i.Neb.), 638. 
 
 Precedent conditions to (Xeb.). 636. 
 
 When does it begin (X. C), 751. 
 
 Conditions precedent to (X. C.I. 74(i. 
 
 Conditions precedent to lOhio). 791. 792. 
 
 When does it begin (Pa.). 840. 
 
 For beneHts; when it begins il!. I.). 857. 
 
 Denial of: wheh not waived by comiiromise of claim (S. C). 859. 
 
 Conditions precedent to (Texas). 941. 9.!4. 943. 
 
 Delivery of certificate condition precedent to ll'tali). 949. 
 
 Conditions precedent to, ]u-oper l\Vyr>.), I(i;i8. 
 
 Delivery of contract ;is picci'ilciil rdmliiiim t(i. valid iWyo.), 1037. 
 LICENSE: 
 
 Doing business without; validity of contracts (Ind.), 228.
 
 INDEX 1(J99 
 
 LIEN: 
 
 On (•(■rtificntc; statntp of liiiiiliilidiis (Cal), 40. 
 
 (Ill riiciiil)ci's i-crlilicntc |(':il.). 4(1. 
 LIMITATIONS: 
 
 A\'iuver of statute in contnict is void (Ala.), 11-12. 
 
 Statutes of. cannot be waived (.Ma.)! 11-12. 
 
 Statutes of, valid (Ark.i. 2(1. 
 
 Clauses in contract upheld (Ark.), 20. 
 
 Release of statute of (Cal.), 37-38. 
 
 Eirect of statute of (Cal.), 40. 
 
 Statute of; lien on member's certificate (Cal.). 40. 
 
 Release from statute of, by acknowledgment of claim (Cal.), 37-38. 
 
 Validity of statvitos of. adopted by societies (Conn.). 73. 
 
 Statutes of. do not apply to claims for w iiinj;ful repudiation of contra(tt ((ja.), 
 111. 
 
 Statutes of, by societies, valid (III.). ItiO. 
 
 On rif>'lit to levy assessments (111.), 177. 
 
 Statute of; contract nuiy limit time fur suini; (lowal, 2SI. 
 
 Statutes of, valid (Iowa), 281. 
 
 Time witliin wliicli suits must In' broii;;lit; after-enacted laws (Kas.), .'521. 
 Time limit for suit (Kas.), 324. 
 
 Statutes of. passed by societies. \(iid (Ky.l, .'i31. 
 As to bringini; .suit; after-ciiaclcd Ia\\s (Mass.i. 430. 
 Time to sue (Mich.), 470. 
 
 Of time to sue; ne,!>'otiiiti(ins for set1lcnn>iit ; waiver (Mich.). 470. 
 Limit of time in «liii-li In sue: waiver of. by society (.Md.). 40!). 
 As to time tor lilin;; pioot^ ,if loss iMd.i. 41."i. 
 (Jf law presumed to he known (Miss.). .5.53. 
 
 Statute of, does nut run in lavnr of foreign societies (X. C), 7.51. 
 For brinn-inj; suit waived by repudiation (X. J.), 003. 
 As to time for suing (X. Y. ), 715. 
 By-law fur bringing suit valid (Ohio), 700. 
 Statute of, wdien it begins to run (Pa.), 845. 
 Statute of, in societies, valid (R. I.), 855. 
 Statute of, by societies, void (S. D.), 8S1. 
 Statute of. when it begins to nni (Texas). 034. 
 Statute of, in contract, \alid (\'t.), 058. 
 
 Statute of, in contract, as to time to instit\itc suit, valid (Wash.), 002. 
 Statute uf. in conti-act. valid (Wis.). 102(1. 
 LIVING ISSUE: 
 
 Term construed (Minn.). 525. 
 LODGE OFFICERS: 
 
 See Officers. 
 LODGE, SUPREME: 
 
 See Supreme Lodge. 
 LOUISIANA: 
 
 Statutes relating to fraternal s(jcicties, 330-301. 
 Fraternal beneficiary association defined. 3:30. 
 Lodge System, definition of; re(|uirements. 330-340.
 
 1100 FRATERNA-L SOCIETY LAW 
 
 LOUISIANA— Continued : 
 
 Representative form of government; definition: requirement's, 340. 
 
 Societies must provide for payment of death benefits, 340. 
 
 Class of beneficiaries, 340. 
 
 Age limits, 341. 
 
 Certificates shall state amount of benefit, 341. 
 
 Benefit and expense funds to be derived from assessments, 341. 
 
 What shall constitute contract between association and member, 341. 
 
 After-enacted laws valid, 341. 
 
 All amendments must be made by supreme legislative body, 341. 
 
 Reserve or emergencj- fund. 342. 
 
 Investment of funds, 342. 
 
 Benefit or reserve fund not to be used for payment of expenses, 342-343. 
 
 Organization of beneficiary associations, 343-345. 
 
 Status of existing societies under this act, 345. 
 
 Consolidation of societies. 345-346. 
 
 Status of foreign societies under this act. 34G-347, 351-352. 
 
 Must file copy of charter, articles of incorporation, constitution and laws, 
 membership contracts, etc.. 34G. 
 
 Secretary of state to issue license. 340-347. 
 
 Revocation of license, 347. 
 
 Appointment of Secretary of State as attorney. 347-348. 
 
 Service of process, 348. 
 
 Meetings of Supreme Lodge, 348. 
 
 Ofliicers of societies not individually liable on contracts. 348. 
 
 Officers and subordinate bodies cannot waive provisions of constitution and 
 laws, 349. 
 
 Grand Lodges to be treated as federation, not as separate State organiza- 
 tions, .349. 
 
 Copies of amendments to laAvs to be filed with Secretary of State. 349. 
 
 Annual report, 349. 
 
 Examination of society's books and affairs, 350. 
 
 Non-compliance with law. revocation of license; receiver. 350-351. 
 
 Admission of foreign societies, 351. 
 
 Societies exempt from the operation of this law. 352. 
 
 Changes in rates. 352-.353. 
 
 Extended insurance, 3.52-353. 
 
 Societies shall not employ paid agents. 353. 
 
 Incontestability of contracts, 353. 
 
 False or fraudulent statements in applications, etc., penalty, 353-354. 
 
 Definition of "association;" or "domestic association:" of "foreign associ- 
 ation;" of "State," 354-355. 
 
 Valuation of certificates, 3.55. 
 
 Act of July 4. 190r — "An Act to defini' and regulate the business of indus- 
 trial life insurance," 355-358. 
 
 "Industrial life insurance" defined, 350. 
 
 Companies and societies s\ibject to the operation of this Act, 350, .357. 
 
 Conditions precedent to doing business, 35C-357. 
 
 Violation of statute; penalties, 358.
 
 INDEX 1101 
 
 LOUISIANA— Continued: 
 
 Act of June 30, 1902 — "An Ad ti> levy liicnse tax upon liencvolent or fra- 
 ternal societies or assbciiitioiis who. Ilirongli agents, solicit membership 
 from house to house," SiiS-SOO. 
 
 Classes of societies subject to this act, :i.").S -;!.")!). 
 
 Secret fraternal organizations excnipteil from the aiiplication ot tliis act, 
 359. 
 
 Act of .July S. 189S, 3(i0-;i(>l. 
 
 Societies must file copy of charter; copy of newspaper wliere charter pub- 
 lislied; copy of amendments to cluirtcr; copies of minutes of meetings; 
 copies of agreements for consolidation. .'jiiO-liiil. 
 
 Duties of Secretary of State, 361. 
 
 Secretary of State's transcript of documents aihiiissiblc as evidence, 301. 
 MAINE: 
 
 Statutes relating to fraternal societies, 3()9-3.S(i. 
 
 Fraternal beneficiary association defined, 309. 
 
 Societies must make provision for death benefits. 309. 
 
 Benefit and expense funds to be derived from assessments. 309. 
 
 Class of beneficiaries, 369. 
 
 Societies exempt from general insurance laws. 309. 
 
 Maj' create and maintain reserve or emergency fund. 300-370. 
 
 Incorporation of fraternal societies, 370-371. 
 
 Existing societies may re-incorporate; provisions. 371. 
 
 Societies shall not do business without certificate from Insuranci- Commis- 
 sioner; requirements, 371-372. 
 
 Must deposit 15 per cent of mortuary receipts with State Treasurer. 372-373. 
 
 Discontinuance of business ; appointment of Receiver, 373. 
 
 Emergency or reserve fund, 373. 
 
 Consolidation of societies; requirements. 373. 
 
 Status of foreign societies under this act, 373-374. 
 
 Must obtain license from Instnancc Commissoner, 374. 
 
 Must file copy of charier, articles of incorporation, constitution and laws, 
 374. 
 
 Appointment of Commissioner as attorney. 374-375. 
 
 Statement of business for preceding year, 374. 
 
 Must be qualified to do business in State where incorporated, 374. 
 
 Rates not to be lower than indicated by National Fraternal Congress mor- 
 tality table, 374. 
 
 Beneficiary shall not pay assessments, 375. 
 
 Mortuarj' or reserve fund cannot be used for expenses. 375. 
 
 Society may employ paid agents, 375. 
 
 Agents must be licensed, 375-376. 
 
 Soliciting business without license; penalty, 370. 
 
 Annual report, 376. 
 
 Benefit fund not subject to attachment for debt, 370-377. 
 
 False and fraudulent statements in applications, etc.: penalty, 377, 384.. 
 
 Societies not subject to the provisions of this act, 377-378. .381-384. 
 
 Examination of society's books and accounts, 378.
 
 1102 FRATERNAL SOCIETY LAW 
 
 MAINE— Continued: 
 
 Status of foreign societies under this Act, 379. 
 
 Revocation of license, 370-380. 
 
 Age limit, 380. 
 
 Retaliatory clause, as between States. 3S0. 
 
 Violation of statute, penalty, 3S0-3S1. 
 
 "Association" defined, 381. 
 
 Status of subordinate lodges, 381. 
 
 Societies not conducting its business on the lodge system. 381-384. 
 
 Admission to do business: requirements, 381-384. 
 
 Copy of application to accompany policy, 384. 
 
 Actions against foreign companies, 385. 
 
 Larceny by insurance agent, 385. 
 
 Examination into insurance frauds. 3S5-3S(i. 
 MANDAMUS: 
 
 Is proper remedy against Superintendent of lusuranoe (Hll- l!'l. 
 
 Not required to preserve rights (Ind.), 248. 
 
 Against State Auditor (Ind.), 251. 
 
 Against Insurance Commissioner (llinn.). 514. 
 
 Unlawfully expelled member entitled to (X. •!.). 005. 
 
 Against Insurance Superintendent (X. Y.). 72!). 
 
 Will not lie to reinstate member (X. Y.). 710. 
 
 Of Insurance Commissioner (Ohio), 701. 
 
 Against Insurance Commissioner (Wis.). 1023. 
 MARRIAGE: 
 
 Effect of member's, on his beneficiary (Cal.). 3(i. 
 
 Presumption of legality of; burden of proof (Colo.). 50. 
 
 Of member: eft'ect on beneficiary (111.), 108, 190. 
 MARYLAND: 
 
 Statute relating to fraternal societies, 392-407. 
 
 Definition of fraternal beneficiary association, 392. 
 
 Lodge system; ritualistic form of work; represeiitntivc form of government, 
 392. 
 
 Shall pay benefits in case of sickness, disability and death, 392. 
 
 Benefit and expense funds to be derived from assessments, 392, 
 
 Glass of beneficiaries, 392. 
 
 Dependency necessary, 392-393. 
 
 Assignability of benefit. 393. 
 
 Change of beneficiary. 393. 
 
 Societies shall be exemi)t from general iiisurnuce biw. 303. 
 
 Endowment policies; dividends; surrender \;ilues; old age benefits; limited 
 payment policies, 303. 
 
 Existing societies may continue to do business; conditions, 303-394. 
 
 Commissioner of Insurance may examine books, etc., 394, 305. 
 
 Society must file copy of charter, articles of association, constitution or 
 laws; Commissioner's fees, 394-395. 
 
 Appointment of Commissioner as attorney, .394-395, 300-397. 
 
 ISlust be authorized to do business in State where incorjiorated. 395.
 
 INDEX 1103 
 
 MARYLAND— Continued : 
 
 Jjicciiso. ,'!',1."). 
 
 Annual report, 3'.):-,. Wdl. ;i!)!). 
 
 Insolvency; examination of accounts, .'SOO. 
 
 Service of process on Insurance Couiniissioner, 31)0-397. 
 
 Societies not to cuijjloy paid agents, 397. 
 
 Benefit fund not subject to attachment for debt, 3!t7. 
 
 Mcctinfis of Supreme Lodge, 397. 
 
 False or fraudulent statements in :ipplications foi- nieiiiber^liip. etc.; ))en- 
 alties, 307-39S. 
 
 \'iolation of law: injunction; reinstatement; penalties. 31).S-y!l!). 
 
 Doing business without authority; ])enalties. 390. 
 
 Incorporation of fraternal societies, 399. 
 
 Societies exempt from the operations of this law. 31i:i-4UU. 
 
 Fraud by directors or officers; penalty. 400. 
 
 Husband and wife — insurance. 400-401. 
 
 Suits at law ; >er\ ice of process; judgments. 401-40:^. 
 
 I'rovisions lor tlii' formation of corporations, 402-407. 
 MASSACHUSETTS: 
 
 Statute relating to fraternal societies. 41S-439. 
 
 Incorporation, 418. 
 
 Representative form of government: lodge system. 418. 
 
 Election of officers. 419. 420. 
 
 By-laws, 419. 
 
 Admission of new membeis; meetings of subordinate lodges. 419. 
 
 Certificate of organization and records to be submitted to Insurance Com- 
 missioner; fee, 419-420. 
 
 License to transact business, 420. 
 
 Rates not to be lower than indicated liy the Xalioual Fraternal Congress 
 mortality table, 420-421. 
 
 Meetings of Supreme Lodge. 421. 
 
 Death and disability benefits, 421. 
 
 Benefit and expense funds to lie derived from assessments, 421. 
 
 Amount payable under certificate limited by :uiio\uit received in assess- 
 ments, when, 421. 
 
 Class of beneficiaries, 421-422. 
 
 Amount of death fund limited to three assessments. 422. 
 
 Uses of emergency fund. 42.'!. 
 
 Investment of emergency fund. 423. 
 
 Beneficiary cannot pay assessments on certificate. 424. 
 
 Funds other than those derived fi-om assessments, 424, 
 
 Status of subordinate bodies and lodges, 424-425. 
 
 Assessments for expense fund, 425. 
 
 Societies which do not pay death benelit-, 42."i. 
 
 Consolidation of societies. 425. , 
 
 Societies not subject to the provisions of this statute, 425-520. 
 
 Admission of foreign societies, 426-427. 
 
 Annual report, 427.
 
 1104 FRATERNAL SOCIETY LAW 
 
 MASSACHUSETTS— Continued : 
 
 Examination of society's ail'aiis. 427-428. 
 
 Societies not to employ paid agents, 428. 
 
 But may employ organizers in the preliniinavv organization of local lodges, 
 428. 
 
 Doing business without authority; penalty, 428. 
 
 Filing of amendments to by-laws, 428-429. 
 
 Benefit fund not liable to attachment for debt, 429. 
 
 False or fraudulent statements by agents, physicians, etc.; penalty, 429. 
 
 Revocation of license; injunction; receiver, 429-430. 
 
 Change of purpose for which society was organized; reincorporation, 430-431. 
 
 Violation of statute; penalties, 431. 
 
 Corporations exempt, 431. 
 
 Certain fraternal beneficiary corporations may become assessment societies, 
 431-433. 
 
 Benefit to member on death of wife, 433. 
 
 Conflict in names of benefit societies, 433. 
 
 Corporation Law, 433-439. 
 
 Incorporating; reincorporating; rights, duties and privileges, 433-439. 
 MATERIALITY: 
 
 Immaterial answers made material by agreement (Kas.), 325. 
 
 Of questions conceded by inquiry (La.), 362. 
 
 Of warranty not essential (La.), 365. 
 
 Of statements warranted (Me.), 387. 
 
 Determined by contract (Neb.), 636. 
 
 Of questions for the jury (Xev.), 658. 
 
 Of representations (X. C), 752. 
 
 What is material fact (Pa.), 845. 
 
 Of representations not for the jury iPa.). 834. 
 
 Of representations (R. 1.). So5. 
 
 Of questions and answers (\\'is.i. 1021. 
 
 See Representations and Warranty. 
 MEDICAL EXAMINER: 
 
 Statements by applicant to (Ga.i. 110. 
 
 llember's rights under medical examination (X. J.), 687. 
 
 Medical examination not part of contract (E. I.), 851. 
 
 Agent of whom (R. I.), 852. 
 
 Agency of (Tenn.), 903. 
 
 Agency of, limited (Tenn.l. 90S. 
 
 Agency of (Texas), 944. 
 
 Knowledge of. imputed (Texas), 931. 
 
 Report of. as evidence (Wis.), 1021. 
 
 See Agency. 
 MEETINGS: 
 
 Place of, for Supreme Lodge (Colo.). .54. 
 
 Held out of home State validated (111.). 192. 
 
 Of legislative body held in foreign State (Kas.), 320. 
 
 Right to hold, outside of State where chartered (Pa.), 842. 
 
 Of society may he held outside of State where chartered ('J'exas), 925.
 
 INDEX 1105 
 
 MEMBERS: 
 
 Dentil by member's hand (Ala.). 10. 
 
 Not entitled to recover durinf; life the aiiioiiiit paid in (Ala.), 7. 
 
 Rights determined by contract, not by charter of company (Ark.), 22. 
 
 Property rights of. incidental (Cal.), 40. 
 
 Interest in pro])crty ceases ujion termination of membership (Cal.), 4(i. 
 
 Uispute between, and lodge; jurLsdietion of courts (f'al), 44. 
 
 Expulsion of, from unincorporated society (Cal.), 45. 
 
 Rights of: distinction between certificate and Uiw^ i(nl.i. 4(i. 
 
 Not to resort to civil courts (Cal.l. 37. 
 
 Have no vested right to name certain bencliciaries (Cal.), .34. 
 
 Classes of, and discrimination between (f'al.). ."JOSl. 
 
 Family of, who are (Conn.), 72. 
 
 I'annot be reinstated after death (U. C), lliU-Kil. 
 
 Reinstatement a personal privilege (D. C), 98. 
 
 Bound by laws; ignorance inexcusable (D. C), 100. 
 
 Member as juror in suit where society is partj- (Del.). S2. 
 
 Admissions bind beneficiaries (Ga.), 114. 
 
 Death of beneficiary before member (Ga.), 108UMI. 
 
 May resort to civil courts (Hawaii), 128. 
 
 Cannot be sued for assessments (111.), 196. 
 
 Marriage of, effect on beneficiaries (111. I. liis. \'M. 
 
 Charter rights (111.), 192. 
 
 Rates, increase of (111.), 10:i, 
 
 Mistake of. respecting naming of beneficiaries (111.), 188. 
 
 Prohibited from going into saloon business (111.), 189. 
 
 Death in common disaster with beneficiary; no pi'cr,uniptiiin of siuvivorship, 
 
 (111.), 185. 
 Death in common disaster with beneficiary (111. I. ISO. 
 Notice to, of assessments, requirements of illl.i. I.S.3. 
 When incompetent as witness (111.), 183. 
 Construction of contracts must favor (III.). 180. 
 Rights to surplus funds (III.), 177. 
 Entitled to notice of assessments (111. I, lti2. 
 Eligibility as to age (111.), 171, 
 
 Murder of member by beneficiary: wlio i< bcncMiiary (111.). 173. 
 Good standing of. not confined to showing on books of society (III,). 108. 
 Transferred from one society to another (111.), 1C8. 
 Obligations of, not affected by unauthorized acts of society (111.). 170. 
 Insanity of, no defense in suicide cases (III.), 159, 
 Rights of, to transfer from one class to another (Ind.), 248. 
 Not required to mandamus to preserve rights (Ind.). 248. 
 Rights of minority when majority secede (Ind.), 244. 
 Right of, to transfer from one'class to another (Ind.), 238. 
 Admissions of, not admissible against beneficiaries (Ind.), 232. 
 May sue to prevent society's paying invalid claini> (Ind.). 231. 
 
 70 
 
 f
 
 I 
 
 1106 FRATERNAL SOCIETY LAW 
 
 MEMBERS— Continued : 
 
 Cannot prevent society from issuing' special contracts (Inil.). :i:il). 
 
 Assessments against; are they debtors to society? (Ind.). 229-230. 
 
 Eights of old, in consolidation of societies (Iowa). 292. 
 
 Rights of. confined to the class to which they belong (Iowa), 282. 
 
 Separated into classes; right of society respecting (Mass.), 442. 
 
 Membership cannot be maintained by beneficiary against member's wish 
 (Md.), 408. 
 
 Bound by laws though ignorant of tliem (Md. ). 417. 
 
 Right of society to prescribe qualifications for niembi'r-lii|> i.Mich.i, 488. 
 
 Restrictions on conduct of (Mich.), 490. 
 
 Acquiescence of, in ruling (Midi.), 483. 
 
 Liberty of. may be restricted by fraternal society law (Mo.), 580. 
 
 Obligations and benefits of, subject to change (ilo.). .578. 
 
 Not all required to be l)enetit members (Mp.), 577. 
 
 Receive benefits of after-enacted laws (Miss.), 5.32, 
 
 Rights of, as to proceeds of certificate (Neb,), (i37. 
 
 Acting in judicial capacity not liable in damages for acts done I X. H.), 075, 
 
 Have right to vote upon proposition to change oljjects (X. .1.). (iS!l. 
 
 Of society cannot bring suit for accounting; action mu-t lie bmuglit by 
 Attorney General (N, Y.), 731. 
 
 Knowledge of laws presumed (Okla.), 810. 
 
 Death while under suspension (Ore.), 818. 
 
 Rights in insolvent society (Pa.), 841. 
 
 Entitled to notice of charges (R. I.), 853. 
 
 Responsible for acts of society (R. I.), 853. 
 
 Rights of, not affected by change of name (S. C), SU3. 
 
 Insane member cannot designate beneficiary (Tenn.), 905. 
 
 Right to cancel niemljcrsliip may exist (Texas), 939. 
 
 Of suspended lodges not entitled to benefits (Texas). 927. 
 
 Presumed to know laws of society (Vt.), 959. 
 
 Expulsion while insane (Wash.), 993. 
 
 Conditions precedent to retaining membership (Wis.), 1925. 
 MICHIGAN: 
 
 Statute relating tii tiatiTual societies, 451-400. 
 
 Definition of fraternal beneficiary association, 451. 
 
 May make provision for accident, sickness, disability or old age benefits, 451. 
 
 Benefit and expense funds to be dcri\(Ml from assessnu'uts, 451. 
 
 Class of beneficiaries, 451-452. 
 
 Society exempt ficim application of this section, 4.52, 
 
 Incorporation of fraternal societies, 452, 457-458. 
 
 Existing societies may continue business; provisions. 452-453. 
 
 A]i]ioinlment of Insurance Couimissioncr as attoincv; MT\ic<' of process; 
 judgments, 4.53, 450. 
 
 Foreign societies; requirements, 453, 454. 
 
 Must file copy of charter, articles of association, constitution mul laws. 453. 
 
 Must be authorized to do bu.siness in State where incm poratcd, 453-454, 
 
 Commissioner of Insurance may examine books and accounts, 454.
 
 INDEX 1 107 
 
 MICHIGAN— Continued : 
 
 Ainni;il rcpiirl; license, 454-455. 
 
 Additional in(|uiries, 455-45(i. 
 
 loniiijissidncr of Tnsuiimce to issuo license, 4u(i. 
 
 lieineorpointiiiu; provisions, 45S-45!!. 
 
 Ineoriior.'ilion of suliordinate bodies, 4.")!t-4(i0. 
 
 UeiU'lit lurid not liable lo attaelinient for debt, 4(iO. 
 
 False or lianihilent statements by ollieeis, nienibeis. exaniinin;; pliysieiuns, 
 
 ele.: pi^nalty, 400-401. 
 \ iolalion id' statute; revocation of license; injnnetion: piiialties, 401-402. 
 Duioi; business wit bout authority. 402. 
 
 Sooieties exiMupt lioni I he provisions in tliis statute. 402. 
 Amendments t<i articles of incorporaticni. 402-40:i. 
 Books, papers and ollicial records of societies, 40,'!. 
 I iin^oliihit ion of societies; reinsurance of members, 40.'!-4(!5. 
 Policies of insurance shall contain the entire contract between tlie partii's. 
 
 40"). 
 niMision of funds for political purposes prohibited; penalty, 405-4G0. 
 Product ion of books and record.s in court and before investigation eouiuiil- 
 
 tees, 400, 
 Societies exempt, 4t)0. 
 
 ^licbijian beneticiary statute construed (Cal.). 48. 
 W'lieu a contract is to be deemed a Michigan conliact (Miili.l, 407. 
 MINNESOTA: 
 
 Statute relating to fraternal societies, 494-514. 
 
 Provisions for the ])aynient of benefits, 494, 490. 
 
 Class of beneficiaries. 494-495, 490. 
 
 "Fraternal beneficiary association" defined. 49."i. 
 
 "Lodge system" defined, 495, 
 
 "Representative form of government" defined, 495-490. 
 
 Fraternal societies exempt from insmance laws, 490. 
 
 Age limits; persons disqualified for beneficial membersliip, 490-497. 
 
 t'ertilicatcs; what constitutes contract between member and society. 4!I7. 
 
 Societies nuiy create and maintain reserve fund. 497. 
 
 Investment of reserve fund, 498. 
 
 I'.euelit and expense funds to be derived from assessments, 498. 
 
 LcNving extra assessments, 498. 
 
 Asvc'„>inrnts; reserve fund not to be used for expenses. 499. 
 
 lienelit fund not subject to attachment for debt. 499. 
 
 Fraternal societies charitable institutions; funds exempt from taxes. 499. 
 
 Inccnporation of fraternal societies, 499-502. 
 
 Existing associations sixbject to this act, .502. 
 
 Transferring mem1)ershi]) and funds to another association. 503. 
 
 Foreign associations; licenses to be renewed annually. .503 
 
 Foreign associations: how admitted to do business, .503-.504. 
 
 License; refusal to issue, 504-505. 
 
 Appointment of Commissioner as attorney; service of process, 505. 
 
 greetings of Supreme Lodge, 500.
 
 1108 FRATERNAL SOCIETY LAW 
 
 MINNESOTA— Continued : 
 
 Vi'aiver of constitution and laws by subordinate bodies, 506. 
 
 Filing copies of amendments to constitution and laws, 506. 
 
 Annual report, 506-507. 
 
 Examination of societies' atl'airs, 507; 508-509, 
 
 Revocation of license; appointment of receiver, 507-508-509. 
 
 E.xpense of examination to be paid bj' society, 509. 
 
 Societies not subject to this Act, 509-510. 
 
 Violations of statute; penalties, 510-511. 
 
 Detinitions^"Association,' "domestic association," "foreign association,"' 
 "State." 511, 513. 
 
 Valuation of benefit certificates, 51'2. 
 
 Insolvency. 512. 
 
 Detinitions — "Private corporation." "corporation," "certificate of incorpora- 
 tion," 512-513. 
 
 "Co-operative life and casualty companies" — fraternal societies not allccted, 
 513. 
 
 General Insurance Laws — Section applicable to fraternal societies, 513-514. 
 
 Political contributions prohibited; penalties, 513-514. 
 MINORITY: 
 
 (Jf lodge, riglits of, where majority secede (Ind.), 244. 
 MINORS: 
 
 I jion attaining majority may sue where guaidian compromised claims (III.), 
 174. 
 MISREPRESENTATION: 
 
 By apiilicant (lia.l, lilt. 
 
 And warranty (ilass.), 444. 
 
 Avoids contract (Md.), 408, 
 
 Good faith of member (Neb,), 643. 
 
 What must be regarded as fraudulent (S. C. ), 861. 
 
 See Representations and Warranty, 
 MISSISSIPPI: 
 
 Xo separate fraternal code in tlic laws of Mississippi, 534, 
 
 Sections of general insurance code application to fraternal societies, 534-549- 
 
 Department of Insurance; Commissioner; duties, etc., 534-536. 
 
 Examination of societies' afi'airs, 535; 537-538. 
 
 Failure to comply with law; revocation of license, 536, 538, 
 
 Definition of terms, 536, 
 
 "Contract of insurance" defined: situs of contracts, 536-537, 
 
 Revocation of license; injunction, .!)36, 538. 
 
 Service of process, 539, 
 
 Business to be conducted in corporate name, 539, 
 
 Corporation laws applicable to in.surance companies, 539-540, 
 
 Continuation after charter expires, 540, 
 
 By-laws; boards of directors, 540. 
 
 Companies may acquire and hold leal estate, 540. 
 
 Stipulations in contracts regarding court or jurisdiction not valid, 54K 
 
 T.ife insurance companies defined. 541,
 
 INDEX 1109 
 
 MISSISSIPPI— Continued : 
 
 iiriiisuraiicc; medical exuiiiiiiutioii iiiiiililiiiii incccdciit lu insuaiiou of con- 
 tract; penalty, 541-542. 
 
 Amount on polieies exempt to benefieiaiies, o42. 
 
 Amount exeni))t to executors or administrators. .")42. 
 
 l''alse or fraudulent statomcuis ]i\ af;enls. pliysieiaus. clc; penalties. .■542. 
 
 Admission of foreign companies ; provisions. j42-.')44. 
 
 Revocation of license, 544. 
 
 Licenses are annual, 544-545. 
 
 License fees, 545-540. 
 
 Fraternal orders; tees, 540. 
 
 Publication fees, 546, 
 
 Societies exempt from this statute. .■)4(l-547. 
 
 Fraternal orders detined, .547. 
 
 Bcnelit and expense fvuuls to lii' derived ticim aN~es>mciits, 547. 
 
 Annual report, 547-54S. 
 
 Meetings of Supreme Lodge, 548. 
 
 Admission of fraternal societies, 548. 
 
 Failure to Hie annual statement; niisrepre^-enlalion : penalties, 540. 
 
 Copy of application to accompany contract, 54',>. 
 
 Misstatement of age not to invalidate policy, .■)4i). 
 MISSOURI: 
 
 Statute relating to fraternal .societies, 558-570. 
 
 Incorporation of fraternal societies, 558-560; 572. 
 
 ^Vllat associations nuiy incorporate, 560. 
 
 Amending cliarter, 560-501, 
 
 Dues — how collected, 501. 
 
 Corporation nuiy be formed to execute trust. 561. 
 
 Wliat societies may and may not be ineorp(nated under this Act. 501-502. 
 
 Must keep record of proceedings, 502, 
 
 Shall make by-laws, etc., 502. 
 
 Section may be incorporated in charter; piu-pose and elt'ect. 562-504. 
 
 jMay acquire property; investment of funds. 504 -5115. 
 
 Miscellaneous associations — incorporation, 505. 
 
 Quo warranto proceedings: aiipointment of receiver, etc.. 565-567. 
 
 Conveyance of property rights of dissolved corporation to new corporaticm. 
 567. 
 
 Definition of fraternal beneficiary association, 567-568. 
 
 Shall have lodge system and ritualistic form of government, 508. 
 
 Shall make provision for death benefits. !j68. 
 
 Benefit ajid expense funds to be derived from assessments. 568. 
 
 Class of beneficiaries, 508. 
 
 Societies to be exempt from insurance laws. 568. 
 
 Continuation of existing societies, 568. 
 
 Foreign associations, 568-569. 
 
 Must file copy of charter, articles of incorporation, constitution and laws, 509, 
 
 Appointment of Superintendent of Insurance as attorney, .509, 571, 
 
 Must be authorized to do business in State where incorporated, 569.
 
 1110 FRATERNAL SOCIETY LAW 
 
 MISSOURI— Continued: 
 
 Examination of societies' afTairs. 569. 
 
 Annual report, 509-571. 
 
 Additional inquiries, 571. 
 
 Service of process, 571 -572. 
 
 Permit to do business. 572. 
 
 Societies shall not employ paid agents, 572-573. 
 
 Beneficiary shall have no vested right; change of beneficiary. 573. 
 
 Benefits not liable to attachment for debt. 573. 
 
 ileetings of Supreme Lodge, 573-574. 
 
 False or fraudulent statements; penalties, 574. 
 
 Refusal to make report; violation of statute: injunction; revocation of 
 license; reinstatement, 574-575. 
 
 Doing business without license; ju-nalty, 575. 
 
 Societies exempt from this statute, 575-576. 
 
 Removal of suits to United States courts; jienalty. 5711. 
 
 Construction of ilissouri statute (111.), 184. 
 
 Construction of ilissouri fraternal beneficiary act (1".). 184. 
 
 Wlien contract regarded as made in (Mo.), 582. 
 MISTAKE: 
 
 .\ri|uiescence of member in (111.), 1S7. 
 
 I)f member respecting beneficiaries (111, I. 187-188. 
 MONTANA: 
 
 Montana has no fraternal beneficiary code. 010. 
 MORTALITY TABLES: 
 
 Courts take judicial notice of (Kas.), ;321-322. 
 
 The N. F. C. table aj^proved (Wash.). 093. 
 MORTUARY FUNDS: 
 
 Sacred to mortuary purposes (Xeb.). 643. 
 
 Are trust funds (X. C). 756. 
 
 Sep Funds. 
 MUNICIPAL COURT: 
 
 (tf Cliicago. limited powers of (111.), 160. 
 MURDER: 
 
 ni member by beneficiary, who are beneficiaries in cases of (HI.). 173. 
 MUTUAL SOCIETIES: 
 
 Anil fraternal societies, distinction between (Ark.). 25. 
 
 Fraternal society is a (Colo.), 5S. 
 
 Mutual benefit associations are to be deemed iiis\nance companies (Iowa),. 
 268. 
 MUTUALITY: 
 
 Contract to re])ay anmunt paiil in by member, less benefits paiil. is void 
 (Ala.), 7. 
 NAME: 
 
 Suit against society by wrong '(Colo.), 59. 
 
 Of society as pro|)crty right (Jlicli.l. 48]. 
 
 Property right in (Xeb.), 642. 
 
 Of soeietv must not mislead (Xeli.). (142.
 
 INDEX Till 
 
 NAME— Continued: 
 
 of soi-icty. cliiiiiging uf. ilocs imi nfl'cct rij;lits nl nn-iiilicis (8. t .), 803. 
 
 (•()ij)()riitp, ri<;lit to (Wis.). KIIS. 
 NEBRASKA: 
 
 Statute rclatinj; to fiatciiial sociotii's. (il2-(i.S;j. 
 
 I'ratciiial lii>neticiai y associations dclincd. (il2. 
 
 Must pay doatli bonotits. 012. 
 
 Class of societies nut iiicluilccl in tliis .Act. Iil2. 
 
 .\ct not retroactive. (U;i. 
 
 Hcnclit arid expense funds to l)c dcriM'd Irnni assessment-, til:!. 
 
 Age limits, 013, 020. 
 
 Class of beneficiaries, (il:!, (i2()-(i27. 
 
 Societies not subject to general insurance laws. i;l;!. (i20. 
 
 Where society may be sued, (il:), Ii2:i. 
 
 Benefit fund not liable to attadiment foi- debt, (ill. 
 
 Existing societies may continue doing business. i;i4. 
 
 Foreign associations; rei|uii-eiiH>nts for |ierniis>iiiu In do bu-incss. liM-lil."), 
 (Il(i-(il7, 032. 
 
 Annual report, (il.'>-(ilO, ()27. 
 
 Appointment of .\nditor of I'ublic Accounts as attorney; service of process, 
 010-017. 
 
 I'erniit to do business. 017. 
 
 Societies not to employ i)aid agents. 017. 
 
 Cliaiige of beneficiary, 017. 
 
 Aleetings of Supreme Lodge, 017. 
 
 Failure to make report; nuiladniinistratiou : revocation of license, tils. 02!i, 
 
 Doing business without authority; penalties, 018, 
 
 obtaining money by fraudulent rcjiresentafions; ])enalties, 01!). 
 
 Medical examination of applicants for memliersliip, 010, 
 
 Organization of fraternal societies, 019-020. 
 
 Investment of funds, 020-021, 028-020, 
 
 Filing copy of constitution and by-laws, 021. 
 
 Contracting with other societies to giunantee |)ayiHeiU of death benefits, 
 etc., 021-022. 
 
 Consolidation of societies: reinsurance. (i22. 
 
 \'i(datiou (d' statute; punishment, 023, 
 
 Frauds on life insurance companies: ]i\uiishmeut. 02 -t. 
 
 ^lutual benefit associations, 024. 
 
 Articles of incorporation, 025, 
 
 1)u])lication of names, 02.5, 
 
 'Anuinnt payable under certificate liniileil by aniouut derived from assess- 
 ment, 625. 
 
 Requirements preliminary to doing bu.siness, 025-020. 
 
 By-laws and notices must state objects of assessments. 020. 
 
 E.xamination of books and accounts, 627. 
 
 Certificate of incorporation, 629-630, 
 
 Fraud of agent, physician, etc.; penalties, 630. 
 
 Natural or stipulated premium plan e(unpanies, 0.30-031.
 
 1112 FRATERNAL SOCIETY LAW 
 
 NEBRASKA— Continued: 
 
 l-'ees payaljle to the Slate. ();il-(j:i2. 
 
 Societies exempted fioin the pr()vi>iniis of tliis Act. 032. 
 
 Retaliatory clause as between States, ua.i. 
 
 Deposit of security fund with Auditor of Pu1>lie Aeeount^^. (133. 
 NEGLIGENCE: 
 
 Company liable for agfiul's (Hawaii). ll'.K 
 
 Soi-icty liable lor acts of its surgeon (C'al.). 37. 
 NEGOTIATIONS: 
 
 Do not waive forfeiture (Miiin.i. .122. 
 NEVADA: 
 
 Nevada has no fraternal society code. 657. 
 
 General insurance laws not applicable to fraternal societies. 6.57. 
 
 Act of March 29. 1907, relative to interpleader, applicable to fraternal so- 
 rii'ties. (■|."i7-lJ.5S. 
 NEW HAMPSHIRE: 
 
 Statutes relating to fraternal societies, 060-673. 
 
 Definition of fraternal beneficiary association, 660. 
 
 Benefit and expense funds to be derived from assessments, 000. 
 
 Class of beneficiaries, 600. 
 
 Existing societies may continue business, 660-661. 
 
 Admission of foreign corporations; provisions, 661. 
 
 Must be authorized to do business in State where incorporated. 001. 
 
 Examination of societies' affairs, 661, 669-670. 
 
 Annual statement, 661-663, 668-669. 
 
 Additional iuijuiries, 603. 
 
 Appointing Commissioner of Insurance as attorney; service of process, 
 003-004. 
 
 Permit to do business. 604, 009, 070-071. 
 
 Organization of new and re-incorporation of old societies. 004. 
 
 Societies not to employ paid agents, 004. 
 
 Beneficiary cannot pay member's dues, 664. 
 
 Benefit fund not liable to attachment for debt, 004-00.1. 
 
 Jleetings of Supreme Lodge, 00.5. 
 
 False or fraudulent statements by officers, physicians, etc, 005. 
 
 Faihu'e to file report; nialadniini-ti;ition: revocation uf lii'ense; reinstate- 
 ment, 005-000. 
 
 Doing business without license; penalty. 0<iO. 072. 
 
 Societies not subject to this Act, 60(i, 009. 
 
 Provisions of the insurance code applicable to fraternal societies. 007-084. 
 
 Policies must contain the entire contract between the ])arties. 007. 
 
 Diversion of funds for political purpeses, 007-008. 
 
 Production of books and records before courts and in\('stigalion coniinit- 
 tees. 008. 
 
 '"An act piaciiii; cerlMiii corporations, associations, etc.. under the jniisdic- 
 tion of the liisinancc Commissioner," 608. 
 
 .\lu~I lile copy of charter and by-laws, etc., with Conunissioner, 0(i9.
 
 INDEX 1113 
 
 NEW HAMPSHIRE— Continued: 
 
 \i(il;ilioM of st;itiac; penally, iilj'.l, ()72-(i73. 
 
 Maladministration; revocation of license. Olin-tiTO. 
 
 Licensing agents, 671-672. 
 
 Fee.s of Commissioner, (>7.'i. 
 NEW JERSEY: 
 
 Statute relatin;; to frati'iiial societies, (!77-llS4. 
 
 Delinition of fraternal society, 677. 
 
 Benefit and exi)ense fnnds to be derived from asscssmcMts. (i77. 
 
 Class of beneficiaries, G77. 
 
 Fraternal societies exempt from insnrance laws. 677. 
 
 Existing societies may continue tip do bnsiness. (i77-(i7S. 
 
 Admission of foreign societies. (i78. 
 
 Must file copy of cliarter, articles of association, const it iilion and laws, 078. 
 
 Appointment of Commissioner as attorney; service of i)rocess, 078, 080-681. 
 
 Must be authorized to do business in State wliere incorporated, 678. 
 
 Examination of .societies' books and all'airs, 078. 082. 
 
 Annual report, 078-080. 
 
 Additional inquiries. 680. 
 
 Permit to do business, 681. 
 
 Societies shall not employ ])aid agents. 081. 
 
 Beneficiary shall not pay member's dues, 081. 
 
 Benefit fund not liable to attachn.ient for debt, OSI. 
 
 Meetings of Supreme Lodge, 681-682. 
 
 False or fraudulent statements by officers, physicians, etc.; penalty, 682, 
 
 Failure to make report; maladministration; revocation of license; rein- 
 statement, 6S2-0S.1. 
 
 Doing business witliont authority: ])enalty. OS:H. 
 
 Societies exempt from the operation of this Act, 08:3-084. 
 
 Fees payable to Commissioner of Insiu-ance, 084. 
 NEW MEXICO: 
 
 Statute applicable to fraternal societies. 008-703. 
 
 Annual report. 098-700. 701. 
 
 Status of fraternal societies, 700. 
 
 Fee for filing annual report. 700. 
 
 Status of snbsenuently organized life and nc<'ident associations. 700-701. 
 
 Certificate of authority to do business. 701. 
 
 Doing business without authority; penalty. 701. 
 
 Appoint of Superintendent of Insurance as attorney: service of process, 702. 
 
 Admission of foreign societies; provisions, 702-703. 
 NEW TRIAL: 
 
 Xew evidence must be such as to probably change result (ilinn.l. 510. 
 NEW YORK: 
 
 Statute relating to fraternal societies, 704-714. 
 
 Incorporation of fraternal societies; license, 704-705. 
 
 Keincorporation of existing societies, 705-706. 
 
 Admission of foreign societies, 706-708. 
 
 Minimum amount of insurance necessarv, 706.
 
 1114 FRATERNAL SOCIETY LAW 
 
 NEW YORK— Continued: 
 
 Examination of societies' affairs, 700-707, 71'2. 
 
 Maladministration; revocation of license. 707-708. 
 
 Wlien examination of M)ciety's affairs not necessary. 708. 
 
 ilutual benefit fraternities; exempt from insurance laws. 70S. 
 
 Societies to enact necessary laws. 708-709. 
 
 Must file with Snperintendent of Insurance copy of constitution and laws, 
 709. 
 
 Agreements for IjeneKts: amount limited. 709-710. 
 
 Sources of benefit, fund. 710. 
 
 Benefit fund shall not be diverted to any other piupose. 710. 
 
 Annual report. 710-711. 
 
 Additional inquiries, 711-712. 
 
 Refusal to nmke report; maladministration; revocation of license, 712-713. 
 
 Violation of statute; pimishment, 712-713. • 
 
 Eiglits of members; notices of assessments, 713. 
 
 Benefit fund not subject to attachment for debt, 713. 
 
 Application of this Act; societies exempt, 713-714. 
 
 Consolidation of societies; reinsurance; transfer of menil)ership or funds, 
 714. 
 NEXT OF KIN: 
 
 \V!io are (da.). 112. 
 NIECE: 
 
 By affinity as beneficiary I Iowa). 274-275. 
 NON-FORFEITURE STATUTES: 
 
 I'lintraets of fraternal societies not under (^lo.). .578. 
 NORTH CAROLINA: 
 
 Statuto ic-hiOnji to fraternal societies. 733-745. 
 
 What laws applic;ible to fraternal societies. 733. 
 
 Definition of fraterniil society, 733-734. 
 
 Benefit and expense futuls to be derived from assessments. 734. 
 
 Meetings of supreme f.'Overiiinj^' body. 734-735. 
 
 Conditions precedent to admission to do business. 735. 
 
 Must file with Insurance Comnii>^ionei- copy of charter, articles of asso- 
 ciation, by-laws, etc., 735. 
 
 Contracts must be in accord with charter and by-laws. 73(). 
 
 Must keep in treasury amount e(|mil to one regular loss assessment. 730, 
 744. 
 
 Revocation of license. 730. 
 
 Diversion of funds for |)nMtiial purposes: penalties. 73(i-7:i7. 
 
 Production of book-, ;ind records in court or licfme invi'stigating com- 
 mittees, 737. 
 
 Violation of this Ai-I, penalties. 737. 
 
 Contracts of insurance Mibjcct to State laws. 73S. 
 
 Statements in application shall bi' dei'iiied representations, not warranties, 
 738. 
 
 Stipidations as to juiisdict ion :niil limitation of actions foihiilden. 7.'i8. 
 
 Mortality table u>cil in lif^uriiij; e\|ieclnncy of life. 73S-7-10.
 
 IXDKX 
 
 1115 
 
 NORTH CAROLINA— Continued: 
 
 I'lusenL \:\\\u- of Miuniilirs table used in tijjtiriiif;, 74U-7-tl. 
 
 Kalse or tiMinluUiit stuteiiiunts niiule by agents, ]>liv.siciaiis, etc.; penalties, 
 741. 
 
 ('(iinpai).v iiiiikiiin false slalciiieiils ; peiialtx. 7H-742. 
 
 Kefusal to exliiliit booUs on deinaml; penalties, 742. 
 
 Meilieal exaiuiiial ion condition precedent to issuance of cerlilicale, 742. 
 
 Ilusbaiiil iiiav iii-;u]<' life fur benelit of wife and cbililren, 742. 
 
 iienelit fund not ^iibjecl tci creditois' <-lainis, 74.". 
 
 Beneficiary may maintain action in (jwii nanu'. 74:i. 
 
 i^iarried women as beneliciaries. 74H. 
 
 Life insurance companies defined, 74;). 
 
 Anunmt (d benelit must lie stated in contract, 74.'J. 
 
 Must exliibit booUs an<l papers to Insurance Coniuiissioner on demand, 744. 
 
 Annual reports, 74 1. 
 
 Duties of Insuiancc I nmmissinner, 744-74."). 
 
 Act covers all insur.ince couipanies, 74.'i. 
 NORTH DAKOTA: 
 
 Statute relalini; to fraternal societies. 7.').S-7lis. 
 
 Definition of fraternal beneficiary society. 7.">.''. 
 
 Shall make jirovisiou for payment of benefits in case of dejith, 7.kS. . 
 
 Benefit and e.xpense funds to be deriveil from assessnuMits. 7.")S. 
 
 Societies exem])t from in.^iuance laws. 7.>>S-7.")!). 
 
 May create and uuiintain a reserve fund, 701). 
 
 Kxisting societies uuvy continue to do business. 7.)!!. 
 
 Admission of foreign societies; reipiirements. 7o!)-7liO. 
 
 Jiust be authorized to do business in State where incorporated: tiling cer- 
 tificate of authorization, 7.59-7110. 
 
 Examination of societies' alVairs. 7.ill-7(iO. 
 
 Annual report, 7UO-7(i2. 
 
 Addiiunnil inquiries, 7l)2. 
 
 Ap|>oiutiuent of Commissicnier as attorney: ser\ ic/ of prucess. 7(12. 
 
 Permit to do business. 703. 
 
 filing copy of ;irticles of incorporation, constitntinu and laws. 703. 
 
 Sncieties not to em|doy paid agents, 703. 
 
 Beneliciaries cannot pay members' dues, 7ti3-7()4. 
 
 Benefit fund not subject to attachment fin- debt. 7(i4. 
 
 Bates of assessment to be not lower than indicated neies^ary by Fraternal 
 ('<ingress mortality table, 704. 
 
 Fr;iteriuil Congress mortality table, 7(i4-7(iti. 
 
 Meetings of legislative or governing body, 7li7. 
 
 Kalse or frauditlent statenu-nts by oflicers, ]ihysicians. etc.; penalty. 7ti7. 
 
 Kefusal to make statemcut : mal.idiiiinistratiou : revcicafion of license; rein- 
 statement, 707-70S. 
 
 Doing business without authority; ]ienalties, 7liS. 
 NOTICE: 
 
 Public is charged \\'\\\\. of limited powers of societies (111. I. li:!i. 
 
 Printing and mailing of. regarding assessments (111.1. 102.
 
 1116 FRATERNAL SOCIETY LAW 
 
 NOTICE— Continued: 
 
 Kequiu'iueuts of assessment (111.)- 183. 
 
 Courts do not take, of foreign statutes (Kas.), 320. 
 
 Judicial, taken of mortality tables (Kas.), 321-322. 
 
 Public cliarged, as to corporate powers (Kas.), 328. 
 
 Of assessments under amendments (Minn.). 531. 
 
 To member of charges (Mo.). tiOO. 
 
 Of assessments (Neb.), 653. 
 
 Of laws imputed to member (N. J.), (i'JU. 
 
 Respecting assessments (N. C), 753. 
 
 Member entitled to. before trial (R. I.), 853. 
 
 ^Meiiibci' c'.ilitled to. of amendments to laws (Texas). !)3S. 
 
 See Assecsments, Contracts, Forfeiture, Suspension. 
 OBLIGATIONS: 
 
 Of societies not increased by taking benefits of laws (111.). Kil. 
 
 Of member not affected by society's unauthorized act (111.), 1711. 
 OCCUPATIONS: 
 
 "Saloonkeeper," definition of (Ala.), 12-13. 
 
 Assessments for hazardous (Colo.), 54-55. 
 
 Hazardous; assessments; forfeiture (Colo.), 54-55. 
 
 After-enacted laws respecting (Conn.). 70. 
 
 After-enacted laws valid (111.). lS!t. 
 
 Members engaging in proliibited (liid.). 240. 
 
 Member's engaging in prohibiteil: waiver of forlciturc (Ind. ). 233. 
 
 Prohibited; after-enacted laws (Kas.), 313. 
 
 After -enacted laws as to, unreasonable (Minn.). 525. 
 
 Prohibited; saloonkeepers (ilinn.). 525. 
 
 Change of; forfeiture (Jlinn.). 522. 
 
 Member entering proliiliited (Mo.). 591. 
 
 What does not constitute chaiifje of (X. C. ). 747. 
 
 After-enacted law valid (X. J.i. (i!l(l. 
 
 Member has vested right to fulluw any. not prohibited iX. V.), 717 
 
 After-enacted laws prescribing, not xalid (X\ Y.), 717. 
 
 "Cattle shipper" defined (Vt.). 050, 
 
 What is meant by term "occujiation" (Wis.). 102S. 
 
 Prohiliitod by after-enacted laws (Wis.i. 1023. 
 
 See Forfeiture. 
 OFFICERS: 
 
 Local, are agents of socicly (( olo.). 5S. 
 
 Agency of local (D. C). 00. 
 
 And agents, distinction between (Ca.). 107-lOS. 
 
 Local collecting, agency of (Ida.). 130. 
 
 Of local lodge, agency of (111.). 1(57-168. 
 
 Acts of chief, bind society (111.). 182. 
 
 Powers of president (III.), 183. 
 
 Absence of collecting (Iowa), 205, 
 
 Waivers by (Iowa). 207. 
 
 Service of summons against society upon (Ind.). 220.
 
 INDEX 
 
 1117 
 
 OFFICERS— Continued : 
 
 J.ociil. aj^ciicy of (Kus.J, 3:iU. 
 Agency of local (Kas.), 318. 
 Assistant to collecting; agency (Kas. i. 31(1. 
 Local, cannot waive laws (Mass.), 44.5. 
 
 Oilicial actions prcsnnicd to be correct ami lawful iX. Y.), 730. 
 Removal of. at will (X. Y.), 729. 
 Sec Agency and Waivers. 
 OHIO: 
 
 Statute relating to fraternal societies, 774-790. 
 
 Fraternal beneficiary association defined. 774. 
 
 Lodj;e system dclinecl. 774, 
 
 Representative form of government defined. 774-775. 
 
 Societies shall be exempt from general insurance laws. 77.'). 
 
 ^lust provide for the payment of death hciielit>. 7V."i. 
 
 Class of lieneficiaries, 775. 
 
 Age limits of members, 775-776. 
 
 Certilicate must specify maximum amount of hcnclit^ iircnidcil, 77(i. 
 
 What constitutes a. contract of insurance, 77(i. 
 
 What societies may create and maintain a reserve fund, 77C. 
 
 lienctit and expense funds to be derived from assessments. 770. ' 
 
 Investineiit of funds, 770-777. 
 
 ]'owers to levy extra assessments, 770-777. 
 
 Distribution of funds, 777. 
 
 Organization of fraternal societies, 777-780. 
 
 Status of existing societies; reincorporation, anu'ud iits, 780. 
 
 Consolidation of societies; transfer of membership or funds. 780. 
 
 Members must exhaust remedies of societies before resorting to civil courts, 
 
 781. 
 Annual license, 781. 
 
 Admission of foreign associations; requirements. 7S1-783. 
 Power of attorney; service of process, 783. 
 Jlectings of legislative or governing body, 783 784. 
 
 Officers and members not personally liable for obligations of society, 784. 
 Waiver of provisions in constitution and laws. 784. 
 <5rand lodges to be treated as federation not as single state organizations. 
 
 784. 
 Kiling aiiieudments to constitution and laws, 784-785. 
 Annual re|'orts, 785. 
 
 Examination of affaii's of domestic associations, 785. 
 A'iidation of law; nuUadniinistration; injunction; ap]iciintnu'iil of receiver. 
 
 785-786. 
 Examination of affairs of foreign associations, 787-788. 
 Refusal to submit to examination; revocation of license. 787. 
 Revocation of license, 787. 
 What societies not subject to this act, 788. 
 False or fraudulent statements; penalties, 788-789. 
 Doing business without license; penalty, 789,
 
 1118 FRATERNAL SOCIETY LAW 
 
 OHIO— Continued: 
 
 \'ioI;itiun of stalutc; penalty, 789. 
 
 Definitions, 789-790. 
 
 Deputy commissioner to |ii-iroiiii duties in absence of commissioner of in- 
 surance, 790. 
 
 Previous statutes repealed. 7110. 
 OKLAHOMA: 
 
 Statute relating to fraternal societies, 790-SlO. 
 
 FrateriTal bencticiary association defined, 79(i-707. 
 
 Must make provision for payment of death benefits, 790. 
 
 Expense fund to be derived from assessment.s, 790. 
 
 Class of beneficiaries. 790. 
 
 E.xemption from provisions of insurance laws, 790. 
 
 Jlay create and maintain a reserve fund, 790. 
 
 Existing associations uuiy continue business, 797. 
 
 Admission of foreign .societies. 797-798. i 
 
 Filing copy of constitution and laws, 797. 
 
 Power of attorney; service of process, 797: SOO-SOl. 
 
 Examination of societies' affairs, 798; 801-802. 
 
 Annual report; license, 798-800. 
 
 Additional inquiries, 800. 
 
 Permit to do business, 800. 
 
 Incorporation of fraternal societies, 802-803. 
 
 Reincorporation, 803-804. 
 
 Powers and privileges of societies so incorporated. 804-805. 
 
 Shall not employ paid agents, 805. 
 
 Beneficiary has no vested right, 805. 
 
 Benefit fund not subject to attachment for debt. 805. 
 
 Rates of assessment to be not lower tliau indicated necessary by Fraternal 
 Congress mortality table, 805. 
 
 Fraternal Congress mortality table, 805-808. 
 
 Meetings of legislative or governing body, 808. 
 
 False or fraudulent statements; penalties, 808. 
 
 Refusal to make report; penalty, 808-809. 
 
 Maladministration; revocation of license; reinstatement, 809. 
 
 Doing business without authority; penalties, 809-810. 
 
 Retaliatory clause, as between states, 810. 
 
 Act applies only to fraternal beneficiary associations. 810. 
 
 What societies not subject to this act, 810. 
 OLD AGE: 
 
 Benefits, statute respecting, construed (Cal.), 48. 
 
 See Benefits. 
 OPIATES: 
 
 Death from, through accident (Mo.l. 004. 
 
 Ovei'dose of ])oison: suicide (Iowa). 294. 
 
 Use of (La.K 304. 
 
 See Suicide.
 
 INDMX 1119 
 
 OPINIONS: 
 
 (If |)li\ siciiuis as to suicide (111.), 175. 
 Of |iliysii-inii lis (.'vidence (Nel).), 056. 
 Sec Evidence. 
 OREGON: 
 
 Oregon has no fratcinal society code, 81.'{. 
 
 Fraternal societies exempt from general insurance laws, HI.'!, SI 4, slli. 
 
 Certain sections of the general insurance code. 8l;!-Hl((. 
 
 Tiieenses to companies; conditions, 813. 
 
 License fees, tines, taxes, etc., 813-815. 
 
 Examination of companies' allairs. S14. 
 
 Power of attorney, 814. 
 
 Annual report, 814-815. 
 
 ".\n Act to license and regulate lifi^ and c-asualty insurance luinpanics and 
 
 societies," 81(1. 
 Insurance commissioner lias power to decide wiiellier an association is a 
 
 fraternal society, 81(1. 
 Siicli decision to be final. 81(i. 
 ORGANIC LAW: 
 
 Drfillitioll <.t (111.). 171. 
 ORPHANS: 
 
 \\ hci are (Minn.). .523. 
 PARALYSIS: 
 
 Delinition of (Mo.). G03. 
 PAROL: 
 
 Contract, wlicn valid (.\rk.). 27-28. 
 Evidence recei\cd to \aiy contract (Kas.). 3f2. 
 See Contract and Evidence. 
 PARTNERSHIP: 
 
 Society is not (Midi.). 493. 
 Unincorporated lodge is not (Kas.). .324. 
 Sec Society. 
 PAYMENT: 
 
 (Jf taxes; levy illegal (III.), 182. 
 ■|'o wrong claimant (Iowa), 275. 
 
 Suit for, by beneticiary against stranger (Ind.), 231. 
 Of assessments after nieiiiber's death ('Ind.), 235. 
 Presumptions as to (Mich.), 480. 
 Sec Benefits, Forfeiture, Assessments. 
 PENALTIES: 
 
 For failure to pay losses promptly (Ark.), 2(i. 
 PENNSYLVANIA: 
 
 Statutes relating to fraternal societies, 822-834. 
 
 Incorporation of fraternal societies. 822-825. 
 
 Powers and duties when so incorporated, 822-825. 
 
 Charter; what it must show, 824. 
 
 Newspaper publication of inteutiou to ajiply for charter, 824.
 
 1120 FRATERNAL SOCIETY LAW 
 
 PENNSYLVANIA— Continued: 
 
 ;Mi>ii'lhm('uii> iei:|uiieineiits. 824-82.5. 
 
 AninuU report, 825-826. 
 
 Examination of societies' boolcs, 820. 
 
 Refusal to nial<e report; penalty. 820. 
 
 Bonding of officers of societies, 820-827. 
 
 Filing certificate to be bound by provisions of tliis act, 827. 
 
 Creation of subordinate lodges. 827-828. 
 
 Benefit and expense funds to be derived from assessments. 828. 
 
 Class (if beneficiaries, S28. 
 
 Fraternal societies exempt from insurance laws, 828. 
 
 Exemption from taxes, 828. 
 
 Filing copy of constitution; laws, changes or amendments. 828. 
 
 Annual report: form of, 828-830. 
 
 Failure to file statement; penalty, 830. 
 
 Limited powers of insurance commissioner, 830. 
 
 What societies not subject to this act, 830-83L 
 
 To whom benefits are payable on death of beneficiary, when no new designa- 
 tion is made, S3L 
 
 Power of attorney: service of process, 831-833. 
 
 "An Act to punish frauds upon life insurance companies by agents, physicians 
 and others," 833. 
 
 "An Act to enable minors, above the age of eighteen years, to contract for 
 membership in fraternal beneficial societies," 833-834. 
 PHYSICIAN AND PATIENT: 
 
 Privileged communications (Ida.), 13!)-140. 
 
 Opinions of, in suicide cases (111.), 17.5. 
 
 Privileged communications, when (Iowa), 292. 
 
 Privileged communications between (Ind.), 239. 
 
 Physician not privileged witness (Ind.), 231. 
 
 Communications between (Mich.), 480. 
 
 Physicians testifying; waiver of exemptions (Minn.). .)18. 
 
 Relations of (Mo.). 584. 
 
 Physician may be made competent witness (X. C), 749. 
 
 Waivers of statutory privilege void unless made in court (K. Y.), 721. 
 
 When relation exists (X. Y.), 721. 
 
 Relations between (Ohio), 793. 
 
 Physician, testimony of (Wash.), 992. 
 
 Where relation dne.^ not exist (W. \'a.), 1000. 
 
 See Privileged Communications and Waivers. 
 PLANS: 
 
 Change of. by societ.v (Colo.), 55. 
 
 Ciiange n( (Ind.), 245-247. 
 PLEADINGS: 
 
 Necessary averments (Ind.), 237. 
 
 Promise to pay: defenses need not Ijc negatived iliid.). 229. 
 
 Averments necessary (Ind.), 232. 
 
 Defenses need not be negatived (Ind.). 229.
 
 INDEX . 1121 
 
 PLEADINGS— Continued : 
 
 Must raisi' cuirsticiri of clifiiliility of iM'iioliciiirv (Kas.). •tl"). 
 
 Performance of ])r('te(lent conilitioiis (Kas. |, 313. 
 
 Rule as to Miisre|Mesentation (Mo.), 5fl2. 
 
 Forfeitures (Mo.). .'),SS. 
 
 And proof, requisites of, in case of foreign society (Mo.). .583. 
 
 Forfeiture must be set up specially (S. C), 861. 
 POISON: 
 
 Deatli fioni overdose of; suicide (Iowa). ■2'.t4. 
 
 Accidental poisoniiii;; suicide (Mich.), 480. 
 
 See Suicide. 
 POLICY: 
 
 Of society will not be interfered willi liy courts iCal.'). 47. 
 
 See Courts and Powers. 
 POST MORTEM: 
 
 Assessment society: Inirden of proof (Ark.), 23. 
 
 Plan, cliange from, to .idvance assessments, valid (Colo. I. .")o. 
 
 See Plans, Assessments, After-Enacted Laws. 
 POWERS: 
 
 Of societies respecting compromises (Conn.), 72. 
 
 Of Supreme Lodge (111.), 192. 
 
 Limited, of societies; public charged with notice of (III.), 16'J. 
 
 Reserve, to amend laws (111.), 193. 
 
 Legislative, cannot be delegated (111.). 10.3. 
 
 Piovisions requiring bringing suit in limited time valid (111.), 100. 
 
 Of president of society (111.), 183. 
 
 Of chief officials to bind society (111.). 182. 
 
 Limited, public is charged with notice of (III.), 169. 
 
 Corporate, public charged with notice of (Kas.), 328. 
 
 Corporate, of society, limitations (Kas.), 312. 
 
 Of societies, knowledge of, imputed (Kas.), 312. 
 
 Corporate, limited (Neb.), 641. 
 
 Legislative, cannot be delegated (Tenn.). 902. 
 
 Of societies, power of expulsion included in (R. I.). 8.54. 
 
 See Societies. 
 PREFERENCES: 
 
 Of creditors (Cal.), 36. 
 
 No claim for benefits entitled to (N. Y.). 731. 
 PREMIUM: 
 
 Contract not effective until payment of first (Ark.), 23. 
 
 Prompt payment of (Ind.), 229. 
 
 See Assessments. 
 PRESIDENT: 
 
 Of society, powers of (111.), 183. 
 PRESUMPTIONS: 
 
 Against suicide (Ark.), 19. 
 
 Of legality of marriage (Colo.), 36. 
 
 Of death from absence, when (111.), 170. 
 71
 
 1122 FRATERNAL SOCIETY LAW 
 
 PRESUMPTIONS— Continued : 
 
 As to statute law in foreign Stnlc (lll.i. 171. 
 
 Against suicide (111.), 178. 
 
 Of good standing to continue (11!.), 180. 
 
 Of sanity in suicide cases (111. I. 181. 
 
 Xone of survivorship in deaths in common disaster (111.), 185. 
 
 Sanity presumed in absence of proof (111.), 181. 
 
 Statute of foreign State; presumption as to (111.)^ 171. 
 
 What will be indulged in (111.), 188. 
 
 Burden of proof (Iowa), 287. 
 
 That beneficiary named is competent to take (Iowa), 293. 
 
 In favor of suicide (Ind.). 241. 
 
 In suicide cases (Ind.), 232. 
 
 Of death from absence (Kas.), 313-314. 
 
 Of death when fugitive is absent (Ky.), 33G. 
 
 That death was by accident (La.), 364. 
 
 Presumptions against suicide (ild,), 415. 
 
 As to payments (Mich.), 480. 
 
 In suicide cases (Minn.), 517. 
 
 As to common law being same everywhere (Mo.). 596. 
 
 As to foreign statutes (Xeb.), 634. 
 
 Statutes of foreign States; presumptions (Xeb.), 634. 
 
 Against suicide (Ore.). 820. 
 
 None in favor of legality of assessments (ienn.), 904. 
 
 That laws are known to members (Va.), 978. 
 
 "With respect to seal (Vt.). 960. 
 
 Respecting suicide (Wis.). 1029. 
 PRIVILEGED COMMUNICATIONS: 
 
 Physicians; wiii\ei' of (•xeiii]>'.ioiiN (Ida.), 139-140. 
 
 To physicians, waiver of (Ida.), 139-140. 
 
 Privileged communications (Iowa), 292. 
 
 Physician is not privileged witness (Ind.), 231. 
 
 When privileged communications (Ind.), 239. 
 
 What are privileged comnmnications (ISIich.), 482. 
 
 Before lodge trials (Mich.), 480. 
 
 Privileged communications (Mo.), 584. 
 
 !May be made competent (N, C), 749, 
 
 Of physicians as evidence (Ohio), 793. 
 
 AVhen cannot be admitted (N, Y,), 721, 
 
 Of physician (Wash.), 992. 
 Privileged connnunications (W. Va.i. 1000. 
 See Evidence, Physician and Patient, Waivers. 
 PROCESS: 
 
 See Summons, 
 PROHIBITED OCCUPATIONS: 
 
 "Salooiikrcpcr," definition of (Ala.), 12-13, 
 See Occupations,
 
 PROMISSORY WARRANTY: 
 
 Re(|uires cessation from fornior piucticc (Iiid.). > 2-13. 
 
 Excessive use of intoxicating liijuors (Ind.), 243. 
 
 Breach of; excessive indulgence in liciuor (hid.). 237. 
 
 Soc Warranty and Contract. 
 PROMOTERS: 
 
 Contracts of (111.), i;)2. 
 
 Contracts of (Iowa), 279. 
 
 Acts of, iiiit liinilinji on society (N. D.). 7li!l. 
 
 See Contracts. 
 PROOFS OF LOSS: 
 
 \Vai\cr of (Ark.), 20. 
 
 Proof of by-laws (Ark.), 22. 
 
 Death, proof of; requisites (Cal.), 34. 
 
 Proofs of death, waiver of (Colo.), 58. 
 
 I'rool-i uf death, waiver of (Fla.). 102. 
 PROOFS OF LOSS: 
 
 Proofs of death waived hy denial of liability (111.). IS!. 
 
 Denial of statements in death proofs by benelieiary (111.), 191. 
 
 '"Satisfactory proofs of death," definition of (111.), 174. 
 
 Proofs of death admissible in evidence (Til.), 191. 
 
 Coroner's verdict admissible in evidence (111.). 174, 
 
 Statements in, may be denied by beneficiary llicmgh beneficiary, offered 
 proofs in evidence (111.), 175. 
 
 Proofs of death, definition of, when satisfactory (111.), 174, . 
 
 Proofs of death waived by denial of liability (Iowa). 278,, 293, 286. 
 
 Waiver of (Ind.), 227, 228. 
 
 Proofs of death in disappearance case (Kas.), 323. , , 
 
 Proofs of death, admissions by beneficiary in (K^.),,327. 
 
 Proofs of death waived by refusal of blanks (Kas..), 319. 
 
 Waived by denial of liability (La.). 361. 
 
 Requirement that they be made within certain time, valid (.Md.). 416. 
 
 Proofs of death waived by denial of liability (Md.,),.41Q. 
 
 Proofs of death; delays due to society (Mich.), , 491. 
 
 Waived by denial of liability (Mich.), 487. , , 
 
 Furnishing blanks does not waive defenses (Jlo.), 590. 
 
 Proofs of death waived by denial of liability (Mo.), 583., 
 
 Proofs of death waived by refusal to furnish blanjis and denial of liability 
 (Mo.), 600. 
 
 Proofs of death waived Iiy denial of contract (X. C), 753. 
 
 Proofs of death waived by denial of liability (N. C), 746. 
 
 Proofs of death admissible in evidence (Neb.), 635. 
 
 Value of proofs of death as evidence (N. D.), 771. 
 
 Proofs of death; suit to be brought in limited time ,(^. Y.), 715. 
 
 False statements in proofs of death (Ore.), 817. 
 
 Proofs of death to be furnished before suit (Ore.),- ,818. , 
 
 Proofs of deatli furnished by agent not evidence (Qrp.), 820. 
 
 Proofs of death prima facie evidence of cause of death (Pa.). 847.
 
 1124 FRATERNAL SOCIETY LAW 
 
 PROOFS OF LOSS— Continued: 
 
 Waived by denial of liability (S. C), 860. 
 
 Effect of delivery to agent (S. D.), 882. 
 
 Proofs of death, when not required from beneficiary (Texas). 930. 
 
 False statements in (Texas), 924. 
 
 Requirements for (Utah), 950. 
 
 Delay in furnishing blanks (Wash.), 995. 
 
 False statements in (Wash.), 994. 
 
 Waived by denial of liability (W. Va.), 1002. 
 
 False affidavits (W. Va.), 1002. 
 
 Proof.s of death as ])rima facie evidence of suicide (Wis.). 1028. 
 
 Proofs of death; requirements reasonable (Wis.), 1022. 
 
 Proofs of death; denial of liability (Wis.), 1022. 
 
 Proofs of death showing suicide receivable in evidence (Wis.), 1022. 
 PROPERTY: 
 
 Rights of memljers (Cal.). 40. 
 
 Member's interest in. belonging to society terminates when . membership 
 ceases (Cal.), 46. 
 
 Of local lodge (Mich.), 487. 
 
 Right in corporate name (Neb.), 642. 
 
 Of lodge .subject to taxation (Miss.), 553. 
 
 What becomes of, when charter is forfeited (S. C), 860. 
 
 See Vested Interests. 
 PUBLIC: 
 
 Policy as to beneficiaries (Mich.). 485. 
 
 Charged with notice of limited powers of societies (111.), 169. 
 RATIFICATION: 
 
 Of agent's acts (111.). 170. 
 
 Cannot be made of ultra vires contract (111.), 169170. 
 
 See Waivers and Agency. 
 READJUSTMENT: 
 
 Increasing members' rates by (111.), 193. 
 
 And increase of rates (Kas.). 325. 
 
 Right to raise and readjust rates (Mass.), 442-443. 
 
 After-enacted laws and (Mass.), 441-442. 
 
 Increasing rates by after-enacted laws (Mich.), 469. 
 
 And increase of rates (Mich.), 469. 
 
 Rates subject to change (Mo.), 578. 
 
 Failure to pay increased rates (Mo.). 579. 
 
 Increasing of rates by after-enacted laws valid (Tenn.), 901. 
 
 Valid (Tenn.), 901. 
 
 Increase of rates: Meaning of term (Va.), 976. 
 Increase of rates a.s required (Va.), 976. 
 See After-Enacted Laws. 
 REASONABLE: 
 
 After-enacted laws (Conn.). 70. 
 
 After-enacted occupation laws valid (111.). 189. 
 
 After-enacted laws, what are (111.). 194.
 
 INDEX 1125 
 
 REASON ABLE— Continued : 
 
 After-eniicted suicide laws inc (111). I(i4. 
 
 What by-laws are not (Ind.), 2.'JJ. 
 
 By-laws respecting suspension (Md.), 410. 
 
 Laws; wlicn iinicasonnMc as to iiioinlicis' lifflit to resort to courts (.Minn.), 
 519. 
 
 After-enacted laws must be (Minn.), .");J1. 
 
 When afteroiiacted laws are not (Minn.). .■)17. 
 
 See By-laws and After-Enacted Laws. 
 RECEIVERS: 
 
 Liability of (Mich.), 4S(i. 
 
 May enforce collection of assessments (Micli.l, 4lil. 
 
 Will not be appointed for foreign society wliiili lias no property within 
 the State (>i. C), 752. 
 
 For insolvent society (I'a.). 837. 
 
 Ki'ceix ersliip: no assessments for subseipient losses (li.'L), 857. 
 REDUCTION: 
 
 Of benefit by after-enacted laws (Mass.), 447, 44!). 
 
 (Jf benefits by after-enacted laws (X. J.), ()02. 
 
 Of benefits by after-enacted laws void (\. Y.). 724. 
 
 Of benefits by after-enacted laws (Tenn.), 908. 
 
 Of benefit due under contract void (Texas), 939. * 
 
 Of wrtiticate M.i.l (Texasi. 941. 
 
 See After-Enacted Laws, Repudiation. 
 REINCORPORATION: 
 
 Ki,^lit of (X. v.). 729. 
 REINSTATEMENT: 
 
 Burden of proof as to (.Vrk.). 19. 
 
 Stipulation as to f;ood liealtli i.VrU.). 21). 
 
 Of forfeited certificate (Cal.). 32. 
 
 In forfeited cases (t'olo.). (iO. 
 
 A personal privilege (I). ('.). 98. 
 
 Cannot take place after member's death (1). (.1, 100-101. 
 
 A personal privilege ((ia.), 115. 
 
 Where local officers are agents of society (HI.), 107. 
 
 Health certificate required (Iowa), 278. 
 
 Ke(|iiirements of (Mass.), 446. 
 
 Subject to old conditions of contract (Me.). 3SG. 
 
 After forfeiture (Minn.), 528. 
 
 Conditions precedent to (Miss.), 554. 
 
 Requisites of (Mo.), 588. 
 
 Waiver of recpiirements (Xeb.). 035. 
 
 May be secured only in strict conformity to laws (X. C), 754. 
 
 Acts of officers in connection with, not ministerial (X. C), 75.3. 
 
 Court cannot issue mandate to elfect (X. Y.), 719. 
 
 Optional with society (Pa.), 841. 
 
 When right to. exists (S. C). 805. 
 
 Apidieation for. and warranty un<ler (Tenn.). 907.
 
 1126 FRATERNAL SOCIETY LAW 
 
 REINSTATEMENT— Continued: 
 
 Representations in application for (Texas). 033. 
 
 Is a contract right (Texas). 928. 
 
 See Forfeiture, Suspension, Trials. 
 RELATIVE: 
 
 Stepson after death of mother held not to be (Ala.), 8-9. 
 
 \\\\i> are relatives (Texas), 929. 
 RELEASE: 
 
 Suit to cancel, must tender back payment received (Iiid.). 251. 
 
 Of claim; suit to set aside (Ind.), 251. 
 
 Of statute of limitations (Cal.), 37-38. 
 
 Accord and satisfaction (111.), 103. 
 
 On part payment \aliil only in coniproniise cases (111.). 1G3. 
 
 See Compromise. 
 RELIEF: 
 
 FruMi ilh-al t.ixc- (111.), 182. 
 REMEDIES, EXHAUSTING: 
 
 .See Courts. 
 REMEDY: 
 
 Where society repudiates contract (Ga.), 111. 
 
 See Damages, Repudiation. 
 REPRESENTATIONS : 
 
 And warranties (Coio. I, til. 
 
 Versus warranties (La.), 307. 
 
 Materiality of (Me.), 387. 
 
 Materiality of (X. C), 752. 
 
 Materiality of, in application; act respecting not retroactive (R. I.), 855. 
 
 In a])|)!ication for reinstatement (Texas), 933. 
 
 See Materiality ami Warranty. 
 REPRESENTATIVE: 
 
 Government; after-enacted laws (Neb.), 649. 
 
 Form of government, what is (Xeb.). 641. 
 
 Form of government required (Xeb.). 642. 
 
 Sei' Societies. 
 REPUDIATION: 
 
 Of contract bj' society (Ga.). 111. 
 
 Of contract; remedy (X. C), 747. 
 
 Right of action accrues upon (N. J.), 692. 
 
 Of contract gives right to suit (Texas). 939. 
 
 Of contract gives right to sue (Va.), 974. 
 
 Of contract; remedies under (Va.), 976. 
 
 See Reduction, After-Enacted Laws. 
 RESCISSION: 
 
 Of coiifracts; wlien not alh>xved (Ind.), 247. 
 RESERVE FUND: 
 
 Use of (Cal.), 46. 
 
 To be applied to members' payments before forfeiture (la.), 276-277. 
 
 In hands of society, duty to use to prevent forfeiture (Kas.), 318. 
 
 II
 
 INDEX 1127 
 
 RESERVE FUND— Continued: 
 
 After-eiuieti'd laws 'respecting (Jlass.j, 441-442. 
 
 Not taxable (Neb.), G50. 
 
 See Funds, Taxation, Benefits. 
 RESORT TO COURTS: 
 
 See Couits. 
 RETROACTIVE: 
 
 Statute relating to beneficiaries is not (Del.). 83-84. 
 
 Laws must clearly so provide (Ga.), 114. 
 
 What State laws are not (111.), 160. 
 
 When iifler-enaclcd laws nrc (III.), 189. 
 
 See After-Enacted Laws. 
 RHODE ISLAND: 
 
 Fiateriial societies are e.\enipt triini State supervision, 850. 
 
 Power of attorney; service of process, 850. 
 RISK: 
 
 Increase of; warranty (ArU.), 27. 
 
 Excepted; suicide sane or insane (111.), 167. 
 
 Risks assumed by consolidation of societies (Iowa), 291. 
 
 Death from excepted cause (Ind.), 227. 
 
 Of suicide not assumed (Mass.). 441. 
 RITUAL: 
 
 Rijiht to use: suit of one society against another (Mich.), 487. 
 SALOONKEEPER: 
 
 Meaning of, defined (Ala.), 12-13. 
 
 By-laws prohibiting members' going into saloon business are reasonable 
 (111.), 189. 
 
 After-enacted saloon laws are valid (111.), 189. 
 
 ProMibited occupation (Minn.), 525. 
 
 After-enacted laws respecting (N. J.), 690. 
 
 And bartender, who are (Wis.), 1028. 
 SEAL: 
 
 Society nuiy adopt; presumptions with regard to same (Vt.), 960. 
 
 service! 
 
 See Summons. 
 SICK BENEFITS: 
 
 After-enacted laws (Cal.). 43-44. 
 Suit for, before exhausting remedies (Ga.), 109. 
 Evidence (Hawaii), 128. 
 Total disability (Ind.). 240. 
 
 Restrictions on members' conduct (.\lich.), 490. 
 Total disability (Mich.), 477. 
 Right to, survives (Utah), 947. 
 See Benefits. 
 SISTER-IN-LAW: 
 
 May bo beneficiary, wlien (Cal.), 35. 
 ilay be l)enefieiary (N. Y.), 715.
 
 1128 FRATERNAL SOCIETY LAW 
 
 SITUS: 
 
 Of contract and suit (Aiiz.). 2i). 
 When contract is Illinois contract (111. I. 187. 
 Of suits: conflict of jurisdictions (Kas.). 310. 
 
 Of contract issued in Xew York but sued on in Maryland (Md.), 413. 
 Of contract, nilc as to (\V. Va.l. 1002. 
 See Contracts, Courts, Jurisdiction. 
 SOCIETIES: 
 
 Failure to pay losses proni]itly (Ark.). 20. 
 
 Fraternal and mutual, distinction between (Ark.). 2.5. 
 
 Use of reserve fund (Cal.). 40. 
 
 By-laws, rules and regulations part of contract (Cal.), 47. 
 
 Unincorporated, expulsion from (Cal.). 4.5. 
 
 Policy of. will not be interfered with by courts (Cal.), 47. 
 
 Have right of interpleader (Cal.). 42. 
 
 Principles on which they are based (Cal.). 30. 
 
 Fraternal, not charities (Ca!.). 37. 
 
 Liable for damages caused by negligence of surgeon (Cal. I. 37. 
 
 Exempt from insurance laws (Cal.), 43. ' . 
 
 May hold supreme lodge meetings out of State wliere chartered (Colo.), 54. 
 
 Are mutual societies (Colo.). 5S. 
 
 Powers of, to compromise suits (Conn.), 72. 
 
 Bound by acts of chief officials (111.), 182. 
 
 Society, as to funds, a mere trustee (111.), 170. 
 
 Limited as to right to collect funds (111.), 177. 
 
 Bound by knowledge of subordinate lodges (111.), ISO. 
 
 Fraternal, not ]nil)]ic charities (111.), 104-10.5. 
 
 Fraternal, not Imimd by promoters' contract (111.). 102. 
 
 Unauthorized acts of. do not affect members' obligations (111.), 170, 
 
 Fraternal beneficiary act of 1803. construction of (111.), 105-100. 
 
 Consolidation of; risks assumed (Iowa). 201. 
 
 Are to be deemed insurance companies (Iowa). 208. 
 
 Rights of old members in consolidation of (lowal. 292. 
 
 Not to employ paid agents; ultra vires contracts (lowal. 270. 
 
 Exempt from insurance laws (lowal. 2S4. 
 
 Exempt from general insurance laws (lowal. 277-278. 
 
 Fraternal, discussed and construed (Ind.), 2.51. 
 
 Powers of (Kas.), 312. 
 
 Have only snch powers as are expressly conferred im them in their charters 
 
 (Kas.). 318. 
 Cannot pass laws abridging statute of limitations iKy.), 331, 
 Are bound to their members to perpetuate tlicnisclv<s (Mass.). 443. 
 Exempt from insurance statutes (Mass.), 440. 
 Not charitable institutions, charity defined (Me.), 38S-.380. 
 Fraternal, when not permitted to com|)ete (Micli.l, 481. 
 Exempt from general insurance laws (Midi.). 474. 
 Fraternal; tribunals not bound by teclinicalities (.Mich. I, 483, 
 Fraternal; acquiescence by member in ruling (Jlich.). 483.
 
 l^DEX 1129 
 
 SOCIETIES— Continued: 
 
 Frateniiil. iicil a ]mrtneislii|) in any sense iMidij, V.r.i. 
 
 Fraternal, eanmit issue enjownieiit cDntraets (Minn.). Slii. 
 
 Fraternal, cannol [jay dividends or endowments (Minn.), 514-515. 
 
 May be ehartered in two States (Mo.), (iOO. 
 
 Fraternal, delinition of. in ilissouri (Mo.), 598. 
 
 Foreign and doniestie treated alike (Mo.), 5!)4. 
 
 Making eertitioates i)ayable to "legal representatives" not Iraternal (Mo.), 
 582. 
 
 Fratern&l and assessment, exempt from general insurance laws (Mo.), 581. 
 
 Fraternal, exempt from general insurance laws (Mo.), ,>80. 
 
 Fraternal, defined (Mo.), 577. 
 
 Fraternal, limited in power by statute (.Mo.). (i05. 
 
 Foreign; when not autliorized to do business in State (Mo.), 002. 
 
 Fraternal, liow ditl'ering from old line (ilo.), 002. 
 
 Fraternal, not restricted to assessment business (Mo.), 002. 
 
 Insurance department's discretion (Neb.), 042. 
 
 Names of, must not mislead the public (Neb.), 042. 
 
 Property rights of. in corporate name (Neb.), 042. 
 
 Must have representative form of government (\eb.), (i41, 042. 
 
 Duty of State otiicials in case of noncompliance with State laws (Neb.), 041. 
 
 Fraternal, are mutual insurance societies (Neb.), 03S. 
 
 Exempt from general insurance laws (N. H. ), 075. 
 
 Change of purposes (N. J.), 08!>. 
 
 Objects cannot be changed without vote of members (N. .J.), 089. 
 
 Not subject to insurance laws (Ohio), 792. 
 
 Have power of expulsion (R. I.), 854. 
 
 Rules of law applicable to (S. C), 80.5. 
 
 Change of name, ettect of (S. C), 80.3. 
 
 Exempt from general insurance laws (S. D.), 881. 
 
 Exempt from general insurance laws (Texas), 944. 
 
 May incorporate in several States; when consolidation unlawfid (Texas), 
 941. 
 
 Fraternal, what are (Texas). 927. 
 
 Fraternal: exemption statutes constitutional (Texas). 920. 
 
 May hold corporate meetings outside of State of charter (Texas), 92.5. 
 
 Exempt from general insurance laws (Texas), 922. 
 
 May adopt seals; presumptions respecting same (Vt.), 900. 
 
 Laws classifying societies aie constitutional (Wasli.). 994. 
 
 Fraternal beneficiary society defined (Wis. I. 1020. 
 SOUTH CAROLINA: 
 
 South Carolina has no fraternal insnraiu-e code. 8.50. 
 SOUTH DAKOTA: 
 
 South Dakota has no s])ecial code for fraternal societies, 807. 
 
 Sections of general insurance laws applicable to fraternal societies. ,807-879. 
 
 Articles of association must show plan of business 807. 
 
 Confusion in names. 807. 
 
 Contract nuist show limitation of amount to be paid. 808.
 
 1130 FRATERNAL, SOCIETY LAW 
 
 SOUTH DAKOTA— Continued: 
 
 Bonding oificers of societies, 868, 869. 
 
 Minimum number of applications necessary before doing business, 878. 
 
 Autliority to transact business, 868. 
 
 By-laws must show object of assessments, 868-869. 
 
 Age limitations, 869. 
 
 Annual report, 869, 873. 
 
 Additional reports, 870. 
 
 Investment of funds, 870. 
 
 Deposit of securities with Superintendent of Insurance, 870-871. 
 
 Admission of foreign societies, 871-873. 
 
 Insolvency of foreign societies; maladministration; revocation of license, 
 
 872-87.3. 
 Power of attorney; service of process, 871-872. 
 Examination of books and accounts, 872. 
 
 Violation of statute; doing business unlawfully; penalty, 873. 
 Doing business without authority; penalty, 873-87-1. 
 
 Certificate of authority issued in the name of each subordinate lodge, 874. 
 Failure to make annual report; maladministration; appointment of receiver, 
 
 874-875. 
 Certificate of authority from insurance commissioner, 87.3. 
 Definition of mutual benefit associations, 875. 
 What societies not permitted to do business in this State, 875. 
 Payment of taxes; societies exempt, 876. 
 Policies of insurance, to whom payable, 876. 
 Exemption from attachment for debt, 876-877. 
 Intemperate habits, if generally known, no defense to liability on policy, 
 
 877. 
 Medical examination by company's pliysician conclusive as to health of 
 
 insured, 877. 
 Fraud or irregulai'ities in ai)i>lioatinn no defense after three anmuil premiums 
 
 have been paid; exception, 877-878. 
 Misstatement of age in application, 878. 
 Eetaliatory clause, as between States, 878. 
 Payment of taxes, 878-879. 
 
 False or fraudulent statements in securing- insurance; penalties, 870. 
 Duties of fidelity and surety companies, S7!l. 
 Fraternal beneficiary societies must comply with the provisions of this 
 
 statute, 879. 
 STATE LAWS: 
 
 What State laws are part of contract (111.). 161. 
 
 Societies may obtain certain benefits fronl, without increasing obligations 
 
 on existing contracts (111.). 161. 
 Not retroactive (111.), 160. 
 After-enacted, effect of iKy.), 3.?7. 
 Amendment of; change of beneficiary (ilich.), 478. 
 Effect of amendment of (ilich.), 478. 
 Control certain societies (Miss.), .551. 
 
 J
 
 INDEX J 2;^ J 
 
 STATUTE OF LIMITATIONS: 
 
 Sec Limitations. 
 STEPFATHER: 
 
 As beiioficiiuy (Jlii'h.), 475. 
 STEPSON: 
 
 Not entitled to tiike liciiclit (Ala.). 8-!l. 
 . SUBORDINATE LODGE: 
 
 Kll'ei-'t lit' siispcnsiuTL nl. mi niciiihcis' c-crt ilii-ates (Ark.). 22. 
 
 Jurisdiction of courts as between members and (Cal.). 47. 
 
 Trials of, reviewed by courts (Cal.), 4G. 
 
 Expulsion of, by unincorporated society (Cal.), 45. 
 
 Dispute between member and; jurisdiction of courts (Cal.), 44. 
 
 When not agent of grand lodge (Cal.), 43. 
 
 Expulsion of menilx'r from (Cal.), .lO. 
 
 When ollicers of. are agents of supremo lodge (Colo.), 58. 
 
 Agency of local ollicials (D. C), !)!). 
 
 Agency of local oHicer (Ida.), 130. 
 
 Laws part of contract (111.), 1!)1. 
 
 Agency of ollicers of (III.), lU7-l(i8. 
 
 Is agent of supreme lodge (111.), I8G. 
 
 May waive forfeitures (111.), 197. 
 
 Agency by, of society (111.), 107. 
 
 Abandonment of lodge system (Ind.), 254. 
 
 Rights of minority of. when majority secede (Ind. I. 244. 
 
 Agency of local officers (Ind.), 241. 
 
 Service of summons on local officers (Ind.), 229. 
 
 Waiving laws by (Kas.), 328. 
 
 Unincorporated, not a partnership (Kas.). 324. 
 
 Agency of (Mich.), 492. 
 
 Agency of (Mich.), 488. 
 
 Secession of (Mich.), 479. 
 
 Funds of, not property of society (ilich.), 487. 
 
 Dispo.sition of property of (IMich.), 479. 
 
 Laws of (Mich.), 478. 
 
 Waivers by (ilinn.), 520. 
 
 Agency of local officials (Veb.). 037. 
 
 Officers of, cannot waive laws (Xeb. ). ()3(i. 
 
 Secession by local lodge (N. J.), 690. 
 
 Right of, to secede from society (N. J.), 090. 
 
 Dissolution and reorganization of. permissible (Texas). 940. 
 SUBSEQUENTLY ENACTED LAWS: 
 
 See After-Enacted Laws. 
 SUICIDE: 
 
 After-enacted by-law valid (Ala.). 7-8. 
 
 Incontestability clause changed by after-enacted by-law (Ala.), R. 
 
 Death by member's own hand means (Ala.), 10. 
 
 After-enacted by-laws valid (Ala.), 10-11. 
 
 Burden of proof (Ark.). 19.
 
 1132 FRATERNAL SOCIETY LAW 
 
 SUICIDE— Continued : 
 
 Coroner's verdict not prima facie evidence of (Ark.). 19. 
 
 Presumption always against, until contrary shown (Ark.), 19. 
 
 Facts held not sutKcient (D. C). 99. 
 
 Sane or insane (Ga.), 110. 
 
 Sane or insane, after-enacted laws (Ga.). 112. . 
 
 Sane or insane, an excepted risk (111.), 167. 
 
 "Commit suicide," application of term (111.). 172. 
 
 "Insane impulse," definition of (111.). 172. 
 
 Opinions of physicians as to (111.1. 17.">. 
 
 Burden of proof always on society (111.). 17(1-177. 
 
 Presumptions against (111.), 17S. 
 
 "Sane or insane" clause valid; insanity no defense (111.). 179-180. 
 
 Xot a criminal act (111.), ISO. 
 
 In absence of proof, sanity prcsiuiied (111.), 181. 
 
 Provision valid (111.), 182. 
 
 Sane or insane provisions valid ilU.l. 184-18.5. 
 
 By strangulation proved from circumstances (111.), l.iS-l.^O. 
 
 When insanity no defense (111.), 15!). 
 
 Is no defense unless provided for in contract (111.). 102. 
 
 After-enacted Ijy-laws valid (111.1, l{i;MU4. 
 
 After-enacted laws reasonable (111.), 104. 
 
 Coroner's verdict showing (Iowa), 291. 
 
 Death from overdose of poison (Iowa). 294. 
 
 Under incontestable clause (Ind.), 25.i. 
 
 Cannot be proven by coroner's inquest (Ind.), 250. 
 
 Self-inflicted injuries (Ind.), 245. 
 
 Presumptions in favor of (Ind.), 241. 
 
 Death from intemperance (Ind.), 240. 
 
 Presumptu)ns; facts for the jury (Ind.). 232. 
 
 Incontestable clause (Kas.), 317. 
 
 Sane or insane (Kas.). 323. 
 
 Provided against by implication (Ky.), 333. 
 
 Is against public policy (Ky.), 333. 
 
 While insane (Ky.), 333, 
 
 Circumstantial evidence of (Ky.), 334. 
 
 Coroner's inquest as to (Ky.), 334. 
 
 Where certificate contained no stipulation against (K.V.), 3.34-335. 
 
 Definition of, under sane or insane clause (Ky.),'335. 
 
 Sane or insane; erroneous instruction (Ky.), 335. 
 
 After-enacted laws applicable to outstanding contracts (La.), 300-307 
 
 After-enacted laws (La,), 3C)5-30t>. 
 
 Risks not assumed (La.), 3G4, 
 
 Use of opiates; presumptions (La.), 304. 
 
 Accidental death presumed (La.), 304. 
 
 Circumstantial evidence to prove (La.). 302. 
 
 Death by own act (La.). 302. 
 
 Risk not assumed (Mass.), 441.
 
 INDEX 
 
 1133 
 
 SUICIDE— Continued : 
 
 Accidental poisoning (Midi.), 480. 
 
 While insane (Mich.), 477. 
 
 Death i-esultiiig from habits (Mc). .'f.SS. 
 
 Pifsuinptions against (Md.), 4Ui. 
 
 Deliberate, by drugs (.Minn.), ."il.'j. 
 
 Sane or insane (ilinn.), .')2:). 
 
 While insane (.Minn.), oil). 
 
 I iireasonable after-enacted laws (.Minn.). .'ilS. 
 
 Circumstantial evidence (ilinn.), .")17. 
 
 Presumptions (Minn.), 517. 
 
 Burden of proof (Minn.), .527. 
 
 After-enacted law respecting, valid (Miss.), 557. 
 
 When after-enacted laws invalid (Mo.), 5n5-50(!. 
 
 After-enacted law hehl invalid as to contracts in force (Mo.). 587. 
 
 When after-enacted hiw not binding (Mo.), 580. 
 
 Provisions valid (Mo.). 585. 
 
 Suicide provisions valid in case of society not authorized to do business 
 
 in State (Mo.), 585. 
 Provision in contract valid (.Mo.). 577. 
 When duty of court to direct verdict (ilo.), (>0!». 
 No intent to conimit. when applying for certiticatc (Xcb. ). (i50. 
 After-enacted laws (Xeb.), t!45. 
 Duty of court to instruct (Neb.), 040. 
 Approximate cause of deatli (Xeb.). 040. 
 Facts in case (Xeb.), 040. 
 
 Sane or insane provision valid (X. ('. ). 754. 
 Wlien directed verdict proper (X. D.I. 772. 
 Self-destruction defined (X. D. ). 772. 
 
 Evidence as to; note in member's handwriting (X'. D.). 772. 
 Insufficient evi(leiice (N. J.). 0!t7. 
 After-enacted law (X. J.I, 091. 
 After-enacted law not ralid (X. V.), 725. 7 IS. 
 After-enacted law (Ohio), 791. 
 By-law governing, reasonable (Ohio), 791. 
 Presumptions against (Ore.), 820. 
 Proofs of death ])rinia facie evidence of (Pa.l. .'!47. 
 Facts sutncient to establish (Pa.), 848. 
 After-enacted laws valid (Pa.), 842. 
 Sane or insane clause valid (Pa.), 842. 
 Sane or insane clause valid (Pa.), 8.'!4. 837. 
 Sane or insane clause valid (S. C), 862. 
 
 Verdict of coroner's jury not admissible in evidence iS. D.). 881. 
 What facts not conclusive of (S. D.), 880. 
 Reckless use of drugs (Tenn.), 910. 
 
 Coroner's verdict not admissible in evidence (Texa-I. 940. 
 ■ Suicide law valid (Texas). 9;i8. 
 Ivule as to: burden of ])roof (Texas). 92.3.
 
 1134 FRATERNAL SOCIETY LAW 
 
 SUICIDE — Continued : 
 
 After-enacted laws valid (Va.), 977. 
 
 No presumption (Va.), 977. 
 
 By insane member; rule as to (Wash.), 994. 
 
 Presumptions respecting (Wis.), 1029. 
 
 Statements in proofs of death are prima facie (\\'is.). 1028. 
 
 Admissions of beneficiary as to (Wis.), 102.^. 
 
 Effect of statements as to, in proofs of death (Wis.), 1022. 
 
 Is not death in violation of law (Wis.), 1019. 
 
 After-enacted laws valid (Wis.). 1018. 
 SUIT: 
 
 On bond to state liability under (Ark.). 20. 
 
 Situs of, on contract (Ariz.), 29. 
 
 By wrong name (Colo.), 59. 
 
 Validity of statute of limitations (Conn.), 73. 
 
 Against Insurance Superintendent by mandamus (111.). 191. 
 
 Against members for assessmeuts (111.), 196. 
 
 Provisions for requiring suit to be begun in limited time, valid (111.), 160. 
 
 By minor after attaining majority where guardian settled claim (111.), 174. 
 
 Ximit as to time for bringing (Iowa), 281. 
 
 For benefits, when premature (Iowa), 278. 
 
 By members to prevent payment of invalid claims (Ind.), 231. 
 
 By members to prevent issuance of special contracts (Ind.), 230. 
 
 To set aside release (Ind.), 251. 
 
 Venue of, against societies (Kas.), 329. 
 
 Time for filing suits (Kas.), 321. 
 
 Time limit for (Kas.), 324. 
 
 Limitations as to time to bring (Ky.), 331. 
 
 Time when same to be brought (Mich.), 470. 
 
 When prima facie case is made for plaintiff (N. C), 746. 
 
 Who is real party in interest (N. M.), 659. 
 
 Consolidation of suits on one certificate (Tenn.), 909. 
 
 By administrator on certificate, when proper (Vt.), 960. 
 
 See Venue, Courts, Jurisdiction. 
 SUMMONS: 
 
 Service of, on insurance superintendent not exclusive method (111.), 159. 
 
 Service of, in Municipal Court of Chicago (111.), 160. 
 
 Service of; limited powers of Municipal Court of Chicago (111.), 160. 
 
 Service of, upon local officials (Ind.), 229. 
 
 Service of, upon insurance commissioner (Kas.), 321. 
 
 Service of, on foreign society (Mass.), 445. 
 
 How effected (Mich.), 475. 
 
 Service of, how made (Mich.), 475. 
 
 Service of (Minn.), 525. 
 
 Service upon insurance commissioner (N. C), 749, 756. 
 
 Service of, upon local agent (Ore.), 817. 
 
 t-ervice of, on local officer good (Texas). 940. 
 
 Service on foreign society (Wash.). 995. 
 
 I
 
 INDEX 1135 
 
 SUPERINTENDENT OF INSURANCE: 
 
 See Insurance Superintendent. 
 SUPREME LODGE: 
 
 I'lace of meeting (t'olo.), 04. 
 
 Agency of, by siibonlinate lodge (111.), 18U. 
 
 Powers of (Jll.), l'.)2. 
 
 Meetings held in foreign State (111.), 192. 
 
 Cannot delegate legislative power (111. I. 103. 
 
 Relation.? with siiljordinale lodges (ilo.), U07. 
 
 Power to legislate cannot be delegated (Miss.). 5.55. 
 SURPLUS FUNDS: 
 
 Pdglits of members in (111,). 177. 
 
 Dut_y of society to apiily. tu prcvciit forfeiture illl.l. ISl. 
 
 See Funds. 
 SURVIVORS: 
 
 Sur\i\ing children, who arc within the term (Ala. J, !)-10. 
 
 Surviving children as beneficiaries (Ark.), 20. 
 
 No presumption of siirvivor.ship in deaths in common disaster (111.), 185. 
 
 Surviving widow as beneficiary (Ky.), 337. 
 
 Rule as to survivorship in deaths in common disaster (Texas), 934, 935. 
 
 Survivors, who are within the term (Wis.), 1020. 
 
 See Beneficiaries. 
 SUSPENSION: 
 
 Of lodge, efleet of, on members' certificates (Arlj.), 22. 
 
 Of member (Ga. ), 115. 
 
 Reinstatement personal (Ga.), 115. 
 
 And forfeiture (111.), 186, 192. 
 
 Rule as to waiver by custom (Mo.), 595. 
 
 Acquiescence of member in (Mo.), 591. 
 
 Wrongful; subsequent performance of duties as member (Mo.), 591. 
 
 Waiver of rules as to, by member (Mo.), 609. 
 
 Course of dealing affects (Mo.), 601. 
 
 Rule as to notice to member of charges (Mo.), 600. 
 
 Receipt of money docs not waive other conditions for reinstatement (Xeb.), 
 637. 
 
 Jlember under, not entitled to benefits (X. H.), 674. 
 
 Court has no power to issue mandatory injunction to reinstate (X. Y.). 719. 
 
 Payment of arrearages and death of member while under (Ore.), 818. 
 
 Failure to exhaust society's remedies estoppel from action in civil coiut 
 (Ore.), 820. 
 
 Reinstatement a contract right (Texas), 928. 
 
 Members of suspended lodges not entitled to benefits (Texas), 927. 
 
 Tenders not required of members unlawfully suspended (Wis.). 1022. 
 
 See Forfeiture. 
 TAXATION: 
 
 Property of fraternal societies subject to (III.), 164. 
 
 Statutes exempting fraternal societies from, unconstitutional (HI.), 165.
 
 1136 FRATERNAL SOCIETY LAW 
 
 TAXATION— Continued: 
 
 Funds of fraternal societies subject to (111.). 185. 
 
 Funds in bank subject to (111.), 185. 
 
 Benefit certificates are subject to (111.). 175. 
 
 Illegal levy of tax no ground for relief after payment illl.), 182. 
 
 Property exempt from (Kas. ). 320. 
 
 Funds invested for an income, subject to (Kas.). 320. 
 
 A charity defined (Me.), 388. 
 
 Lodge pioperty .subject to; charity (Miss.). 553. 
 
 Of funds of fraternal societies (Xeb. ). G.50-653. 
 
 Club house of lodge not exem|it (Wis.). 1027. 
 TENDERS: 
 
 Need not ue repeated (Colo.), 58. 
 
 Need not be repeated (<ia.), 117. 
 
 Of payments must be made before cancellation can be had (Ind.). 251. 
 
 Need not be repeated when refused (Mich.), 488. 
 
 Required of payments by member wrongfully suspended (Mo.). 591. 
 
 Of payments made due upon failure of contiact (N. D.). 769. 
 
 Must be made of payment received before compromise can be set aside 
 (S. C). 862. 
 
 Of assessments, when waived (Tenn.). 911. 
 
 Not required of members unlawfully suspended (Wis. i. 1022. 
 TENNESSEE: 
 
 Statute relating to fraternal societies, 883-899. 
 
 Definition of fraternal beneficiary association. 883. 
 
 Definition of lodge system. 883. 
 
 Definition of representative form of government. 883-884. 
 
 Fraternal societies exempt from insurance laws. 884. 
 
 ilust provide for the payment of death benefits. 884. 
 
 Class of beneficiaries, 884. 
 
 Age limits for membership, 884. 
 
 Medical examination and approval necessary for membership, 884-885. 
 
 Certificate must specify amount of benefit. 885. 
 
 What constitutes the contract of insurance, 885. 
 
 After-enacted liy-laws binding on members and beneficiaries, 885. 
 
 Societies may create and maintain a reserve fund. 885. 
 
 Benefit and expense funds to be derived from assessments. 885-886. 
 
 Asses.sments shall not be made oftener than once a month, 886. 
 
 Power to levy extra assessments, 886. 
 
 Investment of funds, 88(). 
 
 Constitution and laws to make provision for assessments, 886. 
 
 Jlortuary or reserve fund iu)t to be used for expenses. 886. 
 
 Benefit fund not liable to attachment for debt. 886-887. 
 
 Property of fraternal societies exem])t from taxation, 887. 
 
 Incorporation of fraternal societies; provisions, 887-889. 
 
 Status of existing domestic societies, 889-890. 
 
 Consolidation of societies; transfer of nicnibership or funds. 890. 
 
 Association of white and colored races, S90.
 
 INDEX , 137 
 
 TENNESSEE— Continued: 
 Aiiniml liceiisp, K!)0-S!)1. 
 Kratrnial Omgrcss iiimtality laljlr of IIIIX) i»overn9; eNceiJlion. S!)l. 
 
 Kffusal or levocation of liopiise. H!)l-S!)2. 
 
 Powers of attorney; service of |)roeess, 8!l2-8i)H. 
 
 Meetings of legislative or goveniiii;4 body. Hi).'!. 
 
 Officers and members not individually liable for society's oblij^ations, 8U3. 
 
 Laws may make provision against waiver by members or subordinate bodies, 
 8!)3. 
 
 Grand lodges slmll lie treated as a federation, not as single State organiza- 
 tions, 8!);j. 
 
 Filing with Insurance Commissioner copies of amendments to constitution 
 and laws, 803. 
 
 Annual statement, 894. 
 
 Examination of societies' affairs, 894, 895. 
 
 Violation of law; maladministration; injunction: appointment of receiver, 
 894-895. 
 
 Action to enjoin must he started by Attorney (ieneral. 8ilo. 
 
 Refusal to sulimit to examination; revocation of license. 896. 
 
 Revocation of license of foreign societies; mandamus. S!)(l. 
 
 Societies not subject to tliis act, 89(i-8nT. 
 
 Increase in assessments; extended insurance; reduced bimctit, S!I7. 
 
 Employment of paid agents, 897. 
 
 Misstatements in applications as to age, 897-898. 
 
 False or fraudulent statements in securing insurance; penalties. 898. 
 
 Doing business without license; ])enalty. 8!t8-SI)!l, 
 
 Definition of terms. 899. 
 
 Valuation of certificates not retpiired, 899. 
 
 Act to take etlect from and after its passage, 899. 
 TERMS: 
 
 "Void" and "voidable,'' meaning of (Ala.), 11. 
 TEXAS: 
 
 Statute relating to fraternal societies, 913-922. 
 
 Definition of fraternal beneficiary association. 913. 
 
 JIust have lodge system and representative form of government. 913. 
 
 Must make provision for payment of death benefits, 913. 
 
 Benefit and expense funds to be derived from assessments, 913-!tl4. 
 
 Class of Ijeneticiaries. 914. ' 
 
 Fraternal societies exempt from insurance laws, 914. 
 
 Existing .societies may continue to do business, 914. 
 
 Admission of foreign societies; |)rovisions, 915, 
 
 Power of attorney; service of process, 915-91(). 
 
 JIust be authorized to do business in State where incorporated, 915. 
 
 Examination of societies' aft'airs, 915. 
 
 Annual statement, 91()-917. 
 
 Additional inquiries. 917. 
 
 Refusal to make report; failure to pay judgment: penalty. 91S. 
 
 Violation of law; maladministration; injuncticm. 918.
 
 1138 FRATERNAL SOCIETY LAW 
 
 TEXAS— Continued : 
 
 Fees payable, 'Jl8, 'J22. 
 
 Doing business without autliority; penalty, 919. 
 
 Creation and use of ie»ei\p fund, 919-920. i 
 
 Benefit and expense funds must be kept separate, 920. 
 
 Benefit fund not subject to attachment for debt, 920. 
 
 ileetings of legislative or governing body. 920. 
 
 Reciprocal relations: may assess, levy and collect from members, 921. 
 
 Incorporation of fraternal societies. 921-922. 
 
 Certain railway orders pxeiiii)t from tlie provisions of this act, 922. 
 TRIALS: 
 
 In lodges, review of, by courts (Cal.), 4U. 
 
 By lodge (Cal.), 39. 
 
 In lodge, review of (Iowa), 2S8. , 
 
 In lodges not conclusive (Jlich.), 480. 
 
 In lodges, privileged communications in (Mich.), -t80. 
 
 Tribunals in societies lawful (ilich.), 482. 
 
 Members charged entitled to make defense (X. .J.). GST. 
 
 By lodge, when void, and effect of (X. J.). 685. 
 
 Of insane imember (Wash.). 993. 
 
 See Courts, Expulsion, Suspension. 
 TRIBUNALS: 
 
 In societies, jurisdiction of lild.). 417. 
 
 Xot bound by technicalities lilich.), 483. 
 
 Of societies; finality of judgments of (J. J.), 688. 
 
 Of societies, decisions of. binding (Pa.), 838. 
 
 See Trials, Courts. 
 TRUST FUNDS: 
 
 ilortuary funds are (X. C), 756. 
 
 Members' payments are (Pa.), 839. 
 
 See Funds and Benefits. 
 TRUSTEES: 
 
 As beneficiaries (Ala.). 9-10. 
 
 Societies are. as to funds (111.), 170. 
 
 Not authorized to amend charter (Iowa). 281. 
 
 May be made beneficiaries (Mich.). 490. 
 
 For beneficiaries (Mich.). 490. 
 
 Payments to (X". Y.) 725. 
 
 For beneficiaries (Pa.), S40. 
 ULTRA VIRES: 
 
 Contract to repay amount paid in b}" member less benefits ])aid is (Ala.), 7. 
 
 Contracts; after-enacted laws (Cal.), 48. 
 
 Contract; neither party estopped to assert (111.) 169. 
 
 Contract, no estoppel under (111.), 169. 
 
 Contract cannot be ratified (111.), 169-170. 
 
 Defense of, not available where performed contract is witliin cluuter powers 
 (111.), 171. 
 
 Contracts; consolidation (Iowa), 292.
 
 INDEX 1 1 39 
 
 ULTRA VIRES— Continued: 
 
 Contract, etl'ect ul finwa). 270. 
 
 Contracts (Kas. ). .(Is. 
 
 Agreements; estoppel (Kas.), a IS). 
 
 Contract; cash benefits (.Mich.). 408. 
 
 Contracts, payments mach' on (ilich.), 480. 
 
 Act respecting naming of Ijenefioiary (N. Y.). 720. 
 
 Laws reducing benefits (Tenn.). 008. 
 UTAH: 
 
 Utali lias no t'rali inal licneficiary code, 047. 
 
 Section 41S. diajitcr .">. general insurance laws. 047. 
 
 Societies and orjianizations e.\empf from provisions of Chapter 5. 047. 
 VENUE: 
 
 For suits against societies (Iowa). 2(iS. 
 
 Of suits against fraternal societies (Kas.), 320. 
 
 Of suit against society (Ore.), 818. 
 
 Where suit may be brougnt (S. C), 804. 
 
 Of suit against foreign society (Texas), 928. 
 
 Of suits against corporations (Va.), 078. 
 
 Sec Suits and Summons. 
 VERMONT: 
 
 Statutes relating to fraternal societies, 952-0u7. 
 
 Definiiion of fraternal beneficiary association, 952. 
 
 Old ago benefits to be governed by expectation of life according to American 
 Kxprrienee Table, 052. 
 
 Binidi and expense funds to be derived from assessments, 952. 
 
 Class of beneficiaries, 952. 
 
 Existing societies may continue business; provisions, 952-953. 
 
 Admission of foreign societies; provisions, 953. 
 
 Power of attorney; service of process, 953; 950-957. 
 
 Permit to do business, 953. 
 
 Annual report. 953. 
 
 Employment of paid agents, 953-054. 
 
 Doing business without license; penalty, 954. 055. 
 
 False or fraudulent statements in securing insurani'c; penalties. 054. 
 
 Refusal to make report or fiu'nish information; penalty, 954. 
 
 Violation of law; 'maladministration; injunction; reinstatement. 954-955. 
 
 Fees payable to insurance commissioner, 055. 
 
 Societies exempt from operation of this act, 955. 
 
 Rates of assessments to be based on P'raternal Congress mortality table, 955. 
 
 Provisions from the general laws of Vermont applicable to fraternal societies, 
 056-957. 
 
 In actions on contracts of insurance, general counts in assumpsit are sufficient 
 declaration. 950. 
 
 Other provisions in suits on contracts of insurance. 950. 
 -VESTED INTEREST: 
 
 Member has no, to name certain beneficiaries (Cal.). 34. 
 
 Beneficiary has no (Cal), 45.
 
 1140 FRATERNAL SOCIETY LAW 
 
 VESTED INTEREST— Continued: 
 
 Wlien beneficiary Jias (Colo.), 59. 
 
 In benefioiaiy ; member's liglit to cliange (Colo.), 59. 
 
 Benelioiaiy has no (Colo), 55. 
 
 When beneficiary has (Colo.), 50. 
 
 Beneficiary has no (Colo.), 57. 
 
 Beneficiary has no (Conn.), 71-72. 
 
 Beneficiary has no, in certificate (111.). I85-I8G. 
 
 Beneficiary has no (111.), 196. 
 
 Beneficiary has no. during menil)pr"s lite (HI.). 102. 
 
 Amendment of fundamental laws atlecting (Iowa), 280-281. 
 
 Beneficiary has no (Iowa), 280: 2SS. 
 
 Beneficiary has no (Ind.), 232, 233, 23(1. 242. 
 
 Beneficiary has no (Mich.), 282. 
 
 Beneficiary has no (Minn.),' 527-528. 
 
 Beneficiary may have equitable (Mo.), 500. 
 
 Beneficiary has no (Mo.), 578. 007. 
 
 Benefieiary has no, while member lives, (ilo.), 000. 000. 
 
 Beneficiary has no (Neb.). (i34. 04S. 
 
 Of members (X. H.), 075. 
 
 In beneficiary recognized (X. Y.i. 715. 
 
 In certificate may be assigned (Ore.), 819. 
 
 Beneficiary has no (Pa.), 839. 
 
 To what extent beneficiary has (S. D. ), 870. 
 
 Beneficiary has no (Tenn.), 903. 
 
 Beneficiary has no (Texas), 935. 
 
 BencHciary has no (Wash.). 002. 
 
 See Beneficiary. 
 VIOLATION: 
 
 By society of its own rules in enacting by-laws, effect of (111.), 194. 
 
 See Members, Societies, Contracts Forfeiture. 
 VIOLATION OF LAW: 
 
 Death in violation of criminal law (Arl<.) 21. 
 
 Death in. what is not (Ark.) 21. 
 
 Death in violation of criminal law (Fla.). 102. 
 
 Death in violation of criminal law, what is meant by (Ca.). 117. 
 
 Death while committing a felony (Ga.), 117. 
 
 Violation of criminal law by member as ground for forfeiture (Ga.). 117-118. 
 
 Death in violation of law (ilo.), 509. 
 
 Suicide is not death In (Wis.). 1019. 
 VIRGINIA: 
 
 Statute relating to fraternal societies. 901-073. 
 
 Definition of fraternal beneficiary association. 901. 
 
 Power to increase assessments, 001-002. 
 
 May make constitution and by-laws and amend same. 902. 
 
 Age limits for membership, 962. 
 
 Must make provision for payment of death benelits. 062. 
 
 May accumulate and nniinlain a rescivc fund. 002.
 
 INDEX 1141 
 
 VIRGINIA— Continued : 
 
 I 
 
 Bi'iielit and cxpciisi' fiinils to he dcrivcil ficnii as>c^-.iiicMl^, 'M'i2. 
 
 Class of beneliciaiics, !lG2-!Hi.'!. 
 
 Clianjje of beiu'ticiaiy. !)()3. 
 
 Fraternal societies siiliject to supervision ami ilireetion of Biiieaii of Insur- 
 ance, !)(i;i. 
 
 But not subject to yencral insurance laws. iM>:i. 
 
 Existiii;^ societies may continue business. 0(i;i. 
 
 Admission of foieifi;n societies; provisions, 9U3-i)04. 
 
 Annual reports, !)()4-n70. 
 
 Examination of books and accounts; certificate of examination. !I70. 
 
 Power of attorney; service of process, !)TI)!t71. 
 
 License to do business; annual fees, 071. 
 
 Failure to nuiUe report: violation of law; revocation of licen>e. '.171-972. 
 
 Doiny business without license; penalty, !t7'i. 
 
 Consolidation of societies; transfer of niembersliip aiul assets, 072-973. 
 
 Fraudulently procuring certificate; penalty, 07.'i. 
 
 Societies not subject to this act, 073. 
 VOID: 
 
 Cleaning of "void" and "voidable" (Ala. I. 11. 
 
 After-enacted laws (tia.). 111. 
 
 Validity of laws does not depend on formality ill adoption (111.). 103. 
 
 See After-enacted Laws and Contract. 
 VOLUNTARY SOCIETY: 
 
 I'owers of (Conn.). 72. 
 
 Whomay sue in behalf of (S. C). 8tjO. 
 
 Suit against (Ttah)) 04S. 
 
 See Societies and Powers. 
 WAIVER: 
 
 (_)f statute of limitations void (Ala.). 11-12. 
 
 Of proofs of loss b.v denial of liabilit.v (Ark.), 20. 
 
 Election to office of applicant before initiation (.^rk.), 2(i-27. 
 
 Defects in application (Ark.), 27. 
 
 Of proofs of death (Colo.), 58. 
 
 Of proofs of loss (Fla.), 102. 
 
 Of written contract provisions not shown by custom (Ga.). 108-100. 
 
 Of contract jirovisious not allowed (Hawaii). 120. 
 
 Of exem|)tion of ]irivilege extendiu};' to couiiiiuuications to physicians (Ida.), 
 1.30 140. 
 
 Of provisions of constitution same as by-laws (lll.i. 171. 
 
 Of proofs of death through denial of liability (111.), 181. 
 
 Facts in case (111.), 184. 
 
 Of laws respecting beneficiaries (111.). lOti. 
 
 Of contract provisions (111.), 103. 
 
 Of right of forfeiture (111.). 182. 
 
 By knowledge of local lodge (111.). 18G. 
 
 B.v agents of precedent conditions (Iowa). 285. 
 
 Of proofs of loss by denial of liability (lowaK 28(!.
 
 1142 FRATERNAL SOCIETY LAW 
 
 WAIVER— Continued : 
 
 Of laws of society (Iowa), 291. 
 
 Of proofs of loss by denial of lialiility (Iowa). 293. 
 
 Of laws; claimants cannot complain of (Iowa), 294. 
 
 Depends upon efl'ect on opposite party (Iowa), 295. 
 
 Of laws by agents (Iowa), 294. 
 
 Of laws by local officers allowed (Iowa), 297. 
 
 Of proofs of death b3' denial of liabilitj' (Iowa), 278. 
 
 Of forfeiture (Ind.), 227. 
 
 Of proofs of loss (Ind.), 227; 228. 
 
 Of forfeiture by agent (Ind.), 242. 
 
 And estoppel (Ind.), 240. 
 
 By agents (Ind.), 239. 
 
 Of .right to forfeit (Ind.), 233. 
 
 By members of incompentency of phj'sicians as witnesse;; valid (liul.l. 2.'il. 
 
 Of grounds of forfeiture (Ind.), 242. 
 
 Estoppel for acts of agent (Ind.), 234. 
 
 Ofter of compromise admits something due (Kas.), 322. 
 
 Of proofs of death by refusing blanks (Kas.), 319. 
 
 Of laws by local lodge (Kas.), 328. 
 
 Of warranty (La.), 365. 
 
 Of proofs of loss by denial of liability (La.), 301. 
 
 Local officers cannot waive laws (Mass.), 445. 
 
 Of forfeiture (Me.), 390-391. 
 
 Of time limit for bringing suit (Md.), 409. 
 
 Of proofs of death l>y denial of liability (JId.). 410. 
 
 Of forfeiture (Md.), 412. 
 
 Ignorance no excuse (ild.), 407. 
 
 Of forfeiture by negotiations (Jlinn.), 522. 
 
 Of exemptions in favor of testimony of physicians lilinn.). 518. 
 
 Of Laws (Minn.), 533. 
 
 Custom does not always \vai\e laws (Minn.). 530. 
 
 Laws not v\aived by custom (ilinn.) 52G. 
 
 By subordinate lodge (Minn.), 52G. 
 
 Of other defenses by asserting one (Midi.). 481. 
 
 Of wari'anty by knowledge of agent (Mich.), 470. 
 
 Of forfeitures (Mich.), 492. 
 
 Of laws by local lodge (Midi.), 492. 
 
 Of initiation (Mich.), 487. 
 
 Of proofs of loss by denial of liabilit}' (Mich.), 487. 
 
 Of laws respecting changing beneficiary (Mich.), 4SG. 
 
 Of limitations by n(>gotiating for settlement (ilich.l, 47(). 
 
 Of payments (Mich.), 481. 
 
 Of defenses by furnishing blanks for proofs of death (Mo.). 599. 
 
 Of health certificate CMo.K 598. 
 
 Of laws by agents not favored (Mo.), 507. 
 
 Of laws by custom (Mo.), 595. 
 
 Of requirement for prom]it ]iaynu'nt (^[n.), 594.
 
 INDEX 1143 
 
 WAIVER— Continued: 
 
 or laws In- local ollieoi- (.Mo,), .■)!ll. 
 
 Of i)roofs of death by denial of lial)ility (Mo,). 583, 
 
 Of rules as to suspoiisioii (Mo,). (iOit, 
 
 Of rules respecting- elianj;in<; iKMieficiaries (.\1(].). (Ids. 
 
 Of proofs of death by denial of liability (.Mo,), (iOO. 
 
 Of priA'ilege of exemption in favor of physiciau.s (.Mo.(. .")84. 
 
 Definition of (Miss.), 554. 
 
 Of laws respecting change of beneliciaries (Mont.), (ilO. 
 
 Of proofs of death by denial of contract (N. C), 753. 
 
 Not to result from occasional favors (N. C), 754. 
 
 Of exemption excluding testimony of physicians (X. C, ), 74il, 
 
 Of proofs of death by denial of liability (N, C). 747. 
 
 By local officials (Neb.), 654. 
 
 Of laws not favored (Neb.), 053. 
 
 (Jf laws by agents (Neb.), 647. 
 
 By agents unauthorized (Neb.). 646. 
 
 Of forfeiture (Neb.), 034. 638. 643, (i45. 
 
 Not to be presumed (Neb.). 630. 
 
 Of forfeiture by receipt of payments (Neb,). (i37. 
 
 Of laws by local ofBcials (Neb.), 636, 
 
 Of requirements for reinstatement (Neb.), 635. 
 
 Of laws by agents not allowed (X. J.), OtKi. 
 
 Time limit to sue waived by repudiation (X. J.), 6!)3. 
 
 Of breaches in warrant,v (X. J.), 690. 
 
 And estoppel, definition of (N, Y.), 730. 
 
 Exempting privile_i;i's in favcn- nf physicians, void (N. Y.), 721. 
 
 Of ultra vires act in naming beneficiary (X. Y.). 720. 
 
 Of laws restricting class of beneficiaries (N. Y.). 720, 
 
 True rule as to (K. 1.), S5S. 
 
 And estoppel in agency cases (R, 1,). ,850. 
 
 When facts are for Jury (S. C), 863. 
 
 Proofs of loss by denial of liability (S. C), 860. 
 
 Doctrine of. applicable to societies (S. C), 860. 
 
 Denial of liability not waived by offer of compromise (S. C), 85!). 
 
 Of assessments, when ((Tenn.), Oil. 
 
 Of forfeiture b.y custom in dealings (Tenn.), 000. 
 
 Of provisions i-especting beneficiaries fTeiuLL 010, 
 
 Of laws by course of dealings (Tenn,), Oil, 
 
 Of forfeiture by course of dealing (Tenn.), 905. 
 
 Of laws respecting changing beneficiaries (Texas), 046. 
 
 Of initiation (Texas), 028. 
 
 Of warranties in" applications (Texas). 028. 
 
 Of laws by local lodge (Texas), 923. 
 
 Of laws b.v local oflRcials not allowed (Utah). 040. 
 
 Of right to forfeiture (Va.), 969. 
 
 Of laws not allowed by custom of agents (Ya,). 074. 
 
 Of ground for forfeitme CS't.). 958.
 
 1144 FRATERNAL SOCIETY LAW 
 
 WAIVER— Continued: 
 
 Provisions against, Ijv agents (W'asli.), !l!)7. 
 
 By course of dealing and custom (Wasli.), 1)98. 
 
 Of rules respecting changing beneficiaries (\^■asll.), 992. 
 
 Provision against, not valid when not called to applicant's attention (\Yash.), 
 991. 
 
 Of proofs of l(i>s l>y denying liability (W. \'a.l. 1002. 
 
 E.\tent of power of agent (W. V'a.), 1001. 
 
 Of forfeiture by receipt of overdue assessments (Wis.). 1021. 
 
 Of proofs of death by denial of liability (Wis.). 1022. 
 
 Through agents not favored (Wis.), 1019. 
 
 Of prompt payment of assessments (Wis.). 1017. 
 
 See Agency, Contract, Proofs of Death. 
 WARRANTIES: 
 
 Breach of (Ark.), 21. 
 
 When material (Ark.). 27. 
 
 Doubtful language (Cal.). 32-33. 
 
 Representations (Colo.), 01. 
 
 Forfeiture under promissory ((ia,). 114. 
 
 False statements in application known to local lodge, efi'ect of (111.). 180. 
 
 False answers in application (Iowa), 284, 285. 
 
 Answers in application to be construed liberally in favor of ajiplicant (Iowa), 
 287-288. 
 
 Statements of applicant pre\ ious to making ap[>lication (Inwa). 290. 
 
 As to age (Iowa), 296. 
 
 Separate, separate breaches of (Iowa). 270. 
 
 As to age of applicant (Ind.). 2.oO. 
 
 Error in age; voidable contracts (Ind.). 2.'jO, 
 
 Promissory, respecting habits (Ind.). 243. 
 
 Promissory, and breach of (Ind.), 237. 
 
 As to good health (Ind.). 231. 
 
 Immaterial answers made material by iKas.i. 32."). 
 
 Misstatement of applicant's habits (Ky.). 331. 
 
 Untrue answers avoid contract (La.). 367-308. 
 
 Versus representations (La.), 367. 
 
 Materiality of statements (La.). 36.). 
 
 Waiver of; estoppel (La.), 305. 
 
 Of untrue answers in application (La.). 302. 
 
 JIateriality of matter conceded from s])ecial im|iiiry (La.). 302. 
 
 False statements as to age (Me.). 389-390. 
 
 Materiality of statements (Me.). 387. 
 
 Misi-epresentation in application (Jld.l. 41."i-410. 
 
 Misrepresentation avoids contract (Md.). 40S. 
 
 As to statement of age (Md.). 408. 
 
 Agent's knowledge not imputed (Mitui.i. 524. 
 
 False answers defeat contract (Minn.). .523.. 
 
 When payments made are forfeited (Minn. I. 521. 
 
 Void contract ab initio (Minn.). 521.
 
 INDEX 1145 
 
 WARRANTIES— Continued: 
 
 As t(i iiffi! (Minn.). :>>]. 
 
 Constniction of (Minn.). .V21I. 
 
 In applicatiiin (Minn.). .Vill. 
 
 As to age (Minn.), .5;j;i. 
 
 And misrepresentation (Mass.), 4-14. 
 
 Breach of (Mich.), 470-474. 
 
 Not waived by knowledge of agenls iMi<'li.). 470. 
 
 Breach of (Midi.). 470. 
 
 Misrepresentation as to family history j,Mo.i. .">;)!). 
 
 Truth of statcinents in api>lication condition inccedent (Mo.). 584. 
 
 Will not be created or extended l)y constr\ution or implication (Nev.), 658. 
 
 Materiality may be fixed by contract (Nev. i, (>.")8. 
 
 Immaterial questions and answers (Neb.). (144. 
 
 Misrepresentation: good faith of mcml)cr (Neb.). ti4:i. 
 
 Materiality determined by c(nitrai( (N'cb. ). (i.W. 
 
 Breach in part; waiver (X. .1). (>!io. 
 
 And re])rcspntations, rules witli respect to (\. •!.). (ISS. 
 
 Immateriality of representations (Okla.). H12. 
 
 Of literal truth of a|)plication reasonalilc (Okla.). sll. 
 
 Breach of; evidence under (I'a.), 847. 
 
 Knowledge of agent as to false statemcnls under, not admissiljle (Pa.), 845. 
 
 What is material to risk (I'a.). 845. 
 
 As to age nutst be literally ke])t (I'a.). S4.'i. 
 
 As to age: evidence for jury (Pa.), 843. 
 
 As to age: evidence under (Pa.), 844. 
 
 Duty of court to instruct in case of breach of (Pa.). 838. 
 
 Breach of, avoids contract (Pa.). 83(i. 
 
 Breach of; verdict for society (Pa.). 830. 
 
 Evidence under (Pa.), 835. 
 
 When error to submit question of materiality to jury (Pa.). 834. 
 
 In case of breach, directed verdict proper (Pa.), 834. 
 
 Parol statements not allowed to \ary (Pa.), 8.35. 
 
 Falsity of answers and not fraud the test (P. T.). 852. 
 
 Limitations respecting (S. C), 802. 
 
 As to age stated in application, ]iart of contract (Tenn.), 906. 
 
 As to age waived Creun.). 000. 
 
 Under reinstatement a))plicatiou (Tenn.). 007. 
 
 Rule respecting (Tenn.), 006. 
 
 Good faith of declarations (Tenn.), 002. 
 
 Of answers liberally construed (Texas), 037. 
 
 Immaterial answers no defense under (Texas), 936. 
 
 Must be literally kept (Texas), 933. 
 
 Misstatement in apjdication (Texas), 933. 
 
 As to statement respecting habits (Texas), 930. 
 
 Waiver of (Texas), 928. 
 
 Definition of (Texas), 924. 
 
 Oral statements do not change written (Texas), 924.
 
 1146 FRATERNAL SOCIETY LAW 
 
 WARRANTIES— Continued: 
 
 False statements (Va.). !t7S. 
 
 False answers under (Va.). !)7j. 
 
 Strictly upheld (Va.), 975. 
 
 Literal truth of answers requiied under (Va.), 975, 974. 
 
 Belief in truth of answers immaterial (Vt.), 959. 
 
 Breach of wairanty, meaning of term (Vt.), 957. 
 
 What evidence competent under (Wash.), 996. 
 
 Must be strongly enforced (Wis.), 1029. 
 
 Effect of incontestable clause (AVis.), 1019. 
 
 See Materiality and Representations. 
 WASHINGTON: 
 
 Statute relating to fraternal societies, 980-991. 
 
 Deflnition of fraternal beneficiary association, 980. 
 
 Must make provision for payment of death benefits, 980.. 
 
 Benefit and expense funds to be derived from assessments, 980. 
 
 Class of beneficiaries, 980. 
 
 Fraternal societies exempt from insurance "laws, 980-981. 
 
 ^lay create and maintain a reserve fund, 981. 
 
 Existing societies may continue doing business. 981. 
 
 Admission of foreign societies; provisions, 981-082. 
 
 Power of attorney; service of process, 981, 98-1-985. 
 
 Must be authorized to do business in State where incorporated, 981. 
 
 Examination of societies' affairs, 981-982. 
 
 Annual filing of certificate of authority, 982. 
 
 Annual report, 982-984. 
 
 Additional inquiries, 984. 
 
 Permit to do business. 985. 
 
 Incorporation of beneficiary associations. 985-986. 
 
 Employment of paid agents, 980. 
 
 Beneficiary cannot pay member's assessments. 980. 
 
 Funds not liable to attachment, 986. 
 
 Rates of assessments to be governed by Fraternal f'nngross mortality table, 
 986-987. 
 
 Fraternal Congress :Mortality Table, 987-980. 
 
 Meetings of legislative or governing body. 989. 
 
 False or fraudulent statements to obtain insurance; penalties, 989-990. 
 
 Neglect to report; violation of laws; revocation of license; reinstatement, 
 990. 
 
 Doing business without license; penalty, 990-991. 
 
 Societies exempt from the provisions of this Act,. 991. 
 WEST VIRGINIA: 
 
 Has no fraternal insurance code. 1000. 
 WIDOW: 
 
 Eight of, against executor (Mass.), 449. 
 
 De facto as beneficiary (Jlich.). 484. 
 
 Of coerced marriage (Miss.). .551. 
 
 Is heir (.Mo.). 604. 
 
 See Beneficiaries ami Wife,
 
 INDEX 1147 
 
 WIFE: 
 
 Wife's dower, wliat is (Ark.), 23-24. 
 
 Divorce, u/l'ect of, when iiaiiied as beiieliciary (Cal.), 41. 
 
 Divorce of, after being named as beneficiary (Colo.), 00-01. 
 
 Divorce of, after being named as beneficiary (Iowa), 283. 
 
 Divorced, competent as beneficiary (Iowa), 297. 
 
 Common law, rights of, as beneficiary (Mo.), 005. 
 
 liigbt of divorced, as beneficiary (Pa.), 839. 
 
 Urotlier as trustee for (Pa.), 840. 
 
 Kiylits of, as beneficiary (S. C), 804. 
 
 And lieirs as beiu-liciaries (S. C), 803. 
 
 See Widow and Beneficiaries. 
 WILL: 
 
 Beneficiaries cannot be changed by (Cal.), 40. 
 
 Naming of beneficiary by (111.), 197. 
 
 Naming beneficiary (Miss.), oul. 
 
 Designation of beneficiary by (Pa.), 837. 
 ' Beneficiary not to be named by (Tenii.), 904. 
 
 Naming beneficiaries in (Texas), 9.30. 
 
 Of member does not emilrul lieneficiaries (A\'is.). 1027. 
 
 See Beneficiaries. 
 WISCONSIN: 
 
 Statute rehitJMg t(. frateiiial societies, 1003-1017. 
 
 Organization of fraternal societies; conditions, 1003. 
 
 Rates of assessments shall be based on National Fraternal Congress mor- 
 tality table. 1003-10()t). 
 
 Accident associations nmst deposit security for payment of claims, 1006-1007. 
 
 Limit of size of certificate one-tenth of assets, 1007-1008. 
 
 Filing papers with Commissioner of Insurance, 1008. 
 
 Class of beneficiaries; change of beneficiary, 1008-1009. 
 
 Age limits for members, 1009. 
 
 Societies shall aecunuilate and maintain a reserve fund. 1009. 
 
 Provisions as to reserve fund, 1009. 
 
 Admission of foreign societies: provisions, 1009-1011. 
 
 Filing application for admission. 1009-1010. 
 
 Filing copies of articles of inccn-poration, constitution, by-laws, etc., 1010. 
 
 Must be authorized to transact business in State where incorporated, 1010. 
 
 Power of attorne.y; service of process, 1010-1011. 
 
 Retaliatory clause, as between States, 1011. 
 
 Conflict in names; misleading literature, 1011. 
 
 Annual report, 1011-1013. 
 
 Inspection of books; violation of law; revocation of license. 1013-1014. 
 
 Exannnation of societies, 1014. 
 
 Meaning of the words "assessment" and "organization," 1014. 
 
 License fee, 1014-1015. 
 
 Investment of funds: deposit of securities, 1015. 
 
 Reorganization of societies; provisions, 1015-1016. 
 
 Definition of terms. 1010-1017.
 
 1148 FRATERNAL SOCIETY LAW 
 
 WITNESS: 
 
 Wlu'ii member not coniiietent as (HI.), 1(S3. 
 See Evidence. 
 WYOMING: 
 
 Statute relating to fiateriial societies, 1U30-1037. 
 
 Uctinition of fraternal benetieiary associations, 1030. 
 
 ilust make provision for payment of death benefits, 1030. 
 
 Benefit and expense funds to be ilerived from assessments, 1030. 
 
 Class of beneficiaries, 1030. 
 
 Fraternal societies exempt from insurance laws, 10.!0-1031. 
 
 Existing societies may continue doing business, 1031. 
 
 Admission of foreign societies; provisions, 1031-1032. 
 
 Must be authorized to do business in State where incorporated, 1031. 
 
 Examination of societies' afl'airs, 1031-1032. 
 
 Annual report, 1032-1033. 
 
 Additional inquiries, 1033. 
 
 Power of attorney; service nt process. !()33-1034. 
 
 Permit to do business; fees, 10:34- 10:3.5. 
 
 Benefit fund not subject to attachment for debt, 1035. 
 
 Meetings of legislative or governing body, 1035. 
 
 False or fraudulent statements to obtain insurance, etc.: penalties, 1035- 
 
 1030. 
 Failure to make report; penalty, 1030. 
 
 Maladministration: violation of law; iniunction: reinstatciiienl. 1030. 
 Doing business without autliority; penalties, 1030-1037. 
 Societies not aiTected bv this Act. 1037.
 
 CARDS OF LAWYERf^ 114y 
 
 Cards of Lawyers Giving Special Attention to 
 the Practice of Fraternal Society Law. 
 
 y 
 
 Arkansas. 
 
 Bradshaw, Rhoton & Helm, 
 
 (Dc E. Bradshaw, Lewis Rhoton and T. E. Helm.) 
 Kahn Building, - - Little Rock, Arkansas. 
 
 General Practice 
 
 in all the Courts and Counties of the State, and representing Sovereign Camp Woodmen of the World, 
 
 Knights of Pythias, and the Missouri State Life, Volunteer State Life, Dcs Moines Life, 
 
 Fidelity & Casualty and the Aetna Indemnity Companies. 
 
 Arkansas. 
 
 U. L. Meade, 
 
 {of Meade & Davis,) 
 
 Russellville, - - - Arkansas. 
 
 General Practice and Representing Supreme Lodge 
 Knights of Pythias, Insurance Dept. 
 
 California. 
 
 Henry C. Schaertzer, 
 
 Attorney and Counsellor-at-Law, 
 
 HUMBOLDT BANK. BLDG., - SAN FRANCISCO, CAL. 
 
 Has had over twelve years experience in Fraternal Insurance Law and Litigation and refer to 
 
 Hon. Carlos S. Hardy, General Counsel, Supreme Lodge Knights of Pythias, 
 
 Chicago, Illinois. 
 
 Colorado. 
 
 Allen & Webster, 
 
 301-304 Cooper Building, Denver, Colorado. 
 
 Practice in all Courts. 
 
 General Counsel for Supreme Lodge, Fraternal LInion of America.
 
 11^0 CARDS OF LAWYERS 
 
 Connecticut. 
 
 JOHN W. ALLING, SAMUEL C. MOREHOUSE. 
 
 JAMES H. WEBB. ARNON A. ALLING. 
 
 Ailing, Webb & Morehouse, 
 
 Attorneys and Counselors-at-Law. 
 
 Experienced in Fraternal Society and Life Insurance Litigation, 
 
 First Nat. Bank Bldg., Cor. Church and Crown Sts., 
 
 NEW HAVEN. 
 
 Georgia. 
 
 Jacob Gazan, 
 
 Attorney-at-Law, 
 Provident Building, - Savannah, Ga. 
 
 General Civil Practice in State and United States Courts. Special and Personal Attention given to 
 Commercial, Corporation, Probate and Insurance Practice. Attorney for Supreme Lodge 
 Knights of Pythias, Insurance Branch; National Association of Credit Men, Savannah Branch; 
 Retail Merchants' Association of Savannah, etc. 
 
 Reference: The National Bank of Savannah. 
 
 Illinois. 
 
 William B. Risse, 
 
 Court of Honor Bldg. , Springfield, 111., and 
 429 Main St., Carthage, 111. 
 
 General Practice, 
 
 Insurance Law and Municipal Bonds. General Attorney Court of Honor. 
 
 Illinois. 
 
 Dwyer & Dwyer, 
 
 Commercial Bank Building, - Danville, Illinois. 
 
 General Counsel; Corn Belt Life Insurance Company, Illinois Woodmen Accident Association,- 
 
 Commercial Trust and Savings Bank, American Bank and Trust Co. Local Counsel: 
 
 Modern Woodmen of America, Court of Honor, Peoria Life Association.
 
 CARDS OF LAWYEIiS 1151 
 
 Illinois. 
 
 Carlos S. Hardy, 
 
 Attorney and Counsellor, 
 Manhattan Bldg., . . - Chicago, 111. 
 
 General Counsel, Supreme Lodge Knights of Pythias, Insurance Department. 
 
 Iowa. 
 
 Nelson, Duffy & Denison, 
 
 Lawyers. 
 
 p. J. Nelson, County Attorney; Thomas H. Duft'y, National Lecturer Moilcrn Woodmen of 
 
 America and John D. Denison, Jr., Director Brotherhood of American Yoeomen 
 
 and Member Beneficiary Committee Royal Neighbors of America. 
 
 Security Building, . - . . Dubuque, Iowa. 
 
 Indiana. 
 
 Charles L. Wedding, 
 
 Attorney and Counsellor, 
 
 Representing Court of Honor and the Supreme Lodge Knights of Pythias, Ins., Dcpt., 
 
 Suite 29 Arcade, 314 Main St., - Evansville, Ind. 
 
 Indiana. 
 
 C. S. and G. L. Denny, 
 
 Lawyers, 
 Indiana Pythian Bldg. , - - Indianapolis, Ind. 
 
 Represent The Supreme Lodge Knights of Pythias, Ins. Dept.; Court of Honor; Modern Woodmen 
 of America and other Insurance Societies.
 
 1152 CARDS OF LAWYERS 
 
 Kansai. 
 
 George A. Huron, 
 
 Suite 6, Office Block, Topeka, Kansas. 
 
 Practice in State and Federal Courts. 
 
 General Attorney Knights and Ladies of Security. Twenty-five years' 
 Experience in Fraternal Beneficiary Society Law. 
 
 Kentucky. 
 
 ASHER G. CARUTH. .1. M. CH ATTERSON. SAMUEL 5. BLITZ. 
 
 Caruth, Chatterson & Blitz, 
 
 Attorneys-a't-Law, 
 
 Louisville, - - Kentucky. 
 
 Counsel for several Fraternal Benefit Societies. 
 
 Kentucky. 
 
 L. J. Crawford, 
 
 Attorney-at-Law, 
 
 Newport, - - Kentucky. 
 
 Was Counsel in Union Central Life Insurance Co. vs. Spinks, 26 Kentucky Law Rep. 1205 and 
 
 U. S. Life Insurance Co. vs. Spinks, 29 Kentucky Law Rep. 960 and 31 
 
 Kentucky Law Rep. 185 and many other important Cases. 
 
 Kentucky. 
 
 Bagby and Martin, 
 
 Attorney s-at- Law, 
 
 Paducah, Kentucky. 
 
 Practice in State and U. S. Courts and represent the Supreme 
 Lodge Knights of Pythias, Insurance Dept. 
 
 Massachusetts. 
 
 Joseph C. Pelletier, 
 
 Attorney and Counsellor, 
 
 18 Tremont St., Boston, Mass. 
 
 National Advocate for Knights of Columbus.
 
 Massachusetts. 
 
 CAHDti OF LAWYKRS 
 
 Charles L. Young, 
 
 Attorney-at-Law, 
 
 Notary Public, 
 
 597 Main St., Springfield, Mass. 
 
 1153 
 
 Michigan. 
 
 Hal H. Smith, 
 
 Lawyer. 
 
 Attorney Michigan Manufacturers' Association, Court of Honor, etc., 
 Penobscot Bldg., - Detroit, Mich. 
 
 Minnesota. 
 
 C. L. Hilton, 
 
 Attorney and Counsellor, 
 
 First National Bank Building, Fergus Falls, Minn. 
 Refer to Modern Woodmen of America and Supreme Lodge Knights of Pythias, Ins. Dept. 
 
 Minnesota. 
 
 Charles G. Laybourn, 
 
 Lawyer, 
 
 New York Life Bldg., Minneapolis, Minn. 
 Refer to Court of Honor. 
 
 Mississippi. 
 
 McWillie & Thompson, 
 
 Attorneys and Counsellors. 
 
 Represent the Supreme Lodge 
 Knights of Pythias, Insurance Dept. 
 
 Mc Willie and Thompson Bldg., 
 JACKSON, MISS.
 
 1154 CARDS OF LAWYERS 
 
 Mississippi. 
 
 Smith, Hirsh ^ Landau, 
 
 VICKSBURG, MISS. 
 
 General Practice and Attorneys for tht Yazoo &: Mississippi Valley Railroad Company, the Alabama 
 
 &c Vicksburg Railway Company, the Vicksburg, Shreveport & Pacific Railway Company, 
 
 Refuge Cotton Oil Company and the Mississippi Cotton Oil Company, and 
 
 Delta Trust t^ Banking Company. 
 
 Refer also to Carlos S. Hardy, General Counsel, the Supreme Lodge Knights of Pythias, Chicago, 111, 
 
 Missouri. 
 
 R. p. Williams, 
 
 R. P. and 
 
 C. B. Williams, 
 
 Attorneys-at-Law, 
 
 Third National Bank Eldg., - St. Louis, Mo. 
 
 Missouri Attorneys for the Supreme Lodge Knights of Pythias, Royal League, 
 Supreme Tent Knights ot the Maccabees, etc. 
 
 Nebrasi<a. 
 
 Arthur H. Burnett, 
 
 Attorney ;ind Counsellor, 
 
 Woodmen of the World Bldg., - OMAHA, NEB. 
 General .Attorney Sovereign Camp, Woodmen of the World. 
 
 New York. 
 
 Duckwitz, Thayer & Tuttle, 
 
 Attorneys and Counsellors, 
 
 D. S.. Morgan Bldg., Butlalo, N. Y. 
 General Practitioners, making a specialty of Fraternal and Insurance Law.
 
 CARDH OF LAWYERS ]155 
 
 New York. 
 
 James C. De La Mare, 
 
 I)E I.A MARK & MORRISON, 
 
 Attorneys and Counsellors, 
 
 Many years experience in handling Fraternal Society Matters. 299 Broadway, 
 
 Refer to Supreme Lodge Knights of Pythias, Ins. Dept, NEW YORK, N. Y. 
 
 New York. 
 
 WILLIAM I)cM. HOOPER, Frcsiikiil. BAYARD P. HOLMES, Vice Prcsidcnl. 
 
 The Hooper-Holmes, 
 Information Bureau, Inc., 
 
 87 Nassau St., NEW YORK CITY. 
 
 INSPECTION Inspections through local correspondents at all points in the United 
 DEPARTMtNT States and Canada. Special attention devoted to the investigation 
 and adjustment of doubtful claims. 
 
 Exceprional facilities are oftered for service of this character, the tiles of the Casualty Department 
 alone containing OVER ONE MILLION RECORDS of sickness and accident claims, rejections, 
 cancellations, etc., which are examined for information in all cases placed with the Inspection Depart- 
 ment. Conclusive evidence of breaches of warranties in the application Is thus frequently secured. 
 
 Confidential reports also furnished, at nominal cost, on prospective members, deputies and ex- 
 aminers. 
 
 Requisition blanks and sample forms furnished on request. Correspondence Invited. 
 
 North Carolina. 
 
 Rob't C. Strudwick, 
 
 Attorney and Counsellor-at-Law, 
 
 Represent the Supreme Lodge Knights of Pythias, Ins. Dept. GREENSBORO, N. C. 
 
 North Dakota. 
 
 Geo. A. Bangs, 
 
 Attorney and Counsellor, 
 Notary in office. Grand Forks, North Dakota.
 
 1156 CARDS OF LAWYERS 
 
 Ohio. 
 
 Grant, Sieber & Mather, 
 
 Attorneys and Counsellors, 
 
 Dobson Bldg., Akron, Ohio. 
 
 Fifteen years' experience in defense of Fraternal Societies. Mr. Sieber 
 was formerly General Counsel for the Pathfinder. 
 
 Ohio. 
 
 Howard Douglass, 
 
 Lawyer, 
 
 Dickson Bldg., 159 and 141 E. 4th St., Cincinnati, Ohio. 
 Many years' e.xperience in handling Fraternal Society Matters. 
 
 Ohio. 
 
 Ewing, Nieding & Kramer, 
 
 Attorneys and Counsellors, 
 
 American Trust Bldg., :-: Cleveland, Ohio. 
 
 Refer to Hon. Olin Bryan, General Attorney for the Heptasophs, and to 
 
 Carlos S. Hardy, General Counsel for Supreme Lodge Knights of 
 
 Pythias, for whom important matters have been handled. 
 
 Oklahoma. 
 
 F. C. Hunt, 
 
 Attorney and Counsellor, 
 
 Billingsloy Bldg , Guthrie, Oklahoma. 
 
 General Practice^ Fraternal Society Practice a Specialty. 
 Refer to Court of* Honor. 
 
 Tennessee. 
 
 W. H. Diet/,, 
 
 Attorney and Counsellor, 
 
 Kingston, Tenn. 
 
 Experienced in Fraternal Society Mattery. Attention in any part of State to business submitted.
 
 CARDH OF f.AWYERf^ ll;j7 
 
 Tennessee. 
 
 Thomas & Thomas, 
 
 Attorneys, 
 
 Rooms 604, 605, 606 and 607 Tcniple Court, - Chattanooga, Tennessee. 
 
 General Practice. 
 
 Practitioners in Supreme Court of the United States, Supreme Court of Tennessee, and Federal and 
 State Courts in Tennessee. 
 
 General Counsel for United States Fire Insurance Co., Chattanooga, Tenn. 
 Consignees Favorite Box Co., ** '* 
 
 Fritts & Wiehl Co., " " 
 
 Granger Medicine Co., *' ** 
 
 Resident Attorneys for Chattanooga Company, Limited^ Metropolitan Life Insurance Company; 
 Supreme Lodge Knights of Pythias. 
 
 Tennessee. 
 
 R. G. BROWN. H. B. ANDERSON. 
 
 Brown & Anderson, 
 
 Lawyers, 
 
 Memphis Trust Building, - Memphis, Tenn. 
 Attorneys for Knights of Pythias. Practice in all the Courts of West Tennessee 
 and Eastern Arkansas. 
 
 Tennessee. 
 
 F. Zimmermann, 
 
 Lawyer, 
 
 Tennessee Trust Bldg., Memphis, Tenn. 
 General Attorney Supreme Hive Ladies of the Maccabees of the World. 
 
 Texas. 
 
 Kleberg & Neethe, 
 
 Attorneys and Counsellors, 
 Levy Building, - - - Galveston, Te.xas.
 
 llTiS CAIfDS OF LAWYRRS 
 
 Texas. 
 
 Henry P. Brown, 
 
 BROWN & I.OMAX, 
 
 Attorneys and Counsellors, 
 
 Cleburne, Texas. 
 
 Member Board of Control, Supreme Lodge Knights of Pythias, Insurance Dept. 
 
 Experienced in Fraternal Matters Business attended to in any 
 
 part of State. 
 
 Texas. 
 
 Onion & Henry, 
 
 Attorney s-at- Law, 
 
 Kampmann Building, San Antonio, Texas. 
 
 Several years experience in representing Fraternal Societies. Represent: Supreme Lodge Knights of 
 Pythias, Insurance Dept.j Woodmen of the World; Woodmen Circle, etc. 
 
 South Carolina. 
 
 J. E. Burke. M. Rutledge Rivers. H. L. Erckmann. 
 
 Burke, Rivers & Erckmann, 
 
 Attorneys-at-Law, 
 
 32 Broad St., - - - Charleston, S. C. 
 
 Representing: 
 
 Supreme Lodge Knights of Pythias, Insurance Department; Sovereign Camp, Woodmen of the 
 World and other Fraternal Organizations.
 
 CAJa),S ()!'• LAWVKHK \\:,\) 
 
 South Dakota. 
 
 U. S. G. Cherry, 
 
 Attorney and Counsellor, 
 
 Sioux Falls, - - - South Dakota. 
 
 Fraternal matters in anv part of State will receive attention. Resident Attorney 
 for C. B. & Q. Ry. Co.; Member Board of Control, Supreme 
 Lodge Knights of Pythias, etc.
 
 LAW LIBRARY 
 
 OF 
 LOS ANGELES COUNTY
 
 I'JCSOyTHERN RFGIONAL llBI»Hy r/.tji i f r 
 
 D 000 760 310 3