Arizona Laws 20-878. Benefit contract
A. A society shall issue to each owner of a benefit contract a certificate that specifies the amount of benefits provided under the certificate. The certificate shall state that it constitutes the benefit contract as of the date of issuance of the certificate, together with any riders or endorsements attached to the certificate, the laws of the society, the application for membership, the application for insurance and declaration of insurability, if any, signed by the applicant and all amendments to any of these. A copy of the application for insurance and declaration of insurability, if any, shall be endorsed on or attached to the certificate. All statements on the application are representations and not warranties. Any waiver of this provision is void.
Terms Used In Arizona Laws 20-878
- Adult: means a person who has attained eighteen years of age. See Arizona Laws 1-215
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Benefit contract: means an agreement for the provision of benefits. See Arizona Laws 20-861
- Certificate: means a document that is issued as written evidence of the benefit contract. See Arizona Laws 20-861
- Contract: A legal written agreement that becomes binding when signed.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
- Laws: means the articles of incorporation, constitution and bylaws of the society. See Arizona Laws 20-861
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Premiums: means rates, dues or other required contributions that are payable under the certificate. See Arizona Laws 20-861
- Rules: means the rules, regulations and resolutions that are adopted by the supreme governing body or board of directors and that are intended to apply to the members of the society. See Arizona Laws 20-861
- Society: means a fraternal benefit society. See Arizona Laws 20-861
B. Any amendments to the laws of the society that are made or enacted after the certificate is issued are binding on the owner and beneficiaries and govern and control the benefit contract in all respects as if the amendments were made and in force before the time of the application for insurance. An amendment does not destroy or diminish any benefits that the society contracted to give the owner as of the date of issuance.
C. A person on whose life a benefit contract is issued before the person attains the age of majority is bound by the terms of the application.
D. The laws of the society shall provide that if the society’s reserves as to any or all classes of certificates become impaired, the board of directors or other corresponding body may require that the owner pay to the society the amount of the owner’s equitable proportion of the deficiency as ascertained by the board or other corresponding body. If the payment is not made the payment stands as an indebtedness against the certificate and draws interest in an amount not exceeding the rate specified for certificate loans under the certificate or the owner may accept a proportionate reduction in benefits under the certificate, or both. The society may specify the manner of the election and which alternative is presumed if no election is made.
E. Copies of any documents under this section that are certified by the secretary or other corresponding officer of the society shall be received in evidence on the terms and conditions of those documents.
F. A certificate shall not be delivered or issued for delivery in this state unless a copy of the form is filed with and approved by the director in the manner provided for like policies issued by life and disability insurers in this state. Every life, accident and sickness, health or disability insurance certificate and every annuity certificate that is issued on or after January 1, 1996 shall be filed with and approved by the director and shall meet the standard contract provision requirements that are not inconsistent with this title for like policies issued by life and disability insurers in this state. A society may provide a grace period for the payment of premiums of one full month in its certificates. The certificate shall state the amount of premiums that are payable under the certificate and shall recite or prescribe the substance of any of the society’s laws or rules in effect at the time of issuance of the certificate that, if violated, will result in the termination of or reduction of benefits payable under the certificate. If the laws or rules of the society provide for the expulsion or suspension of a member, the certificate shall state that a member who is expelled or suspended may maintain the certificate in force by continuing to pay the required premium, unless the member was expelled or suspended for the nonpayment of premium or during the contestable period for material misrepresentation in the application for membership or insurance.
G. Benefit contracts that are issued on the lives of persons who are under the society’s minimum age for adult membership may provide for the transfer of control of ownership to the insured at an age specified in the certificate. The society may require that an application for membership be approved in order to effect this transfer and may provide for the regulation, government and control of the certificates and all rights, obligations and liabilities incident to and connected with the certificate. The certificate shall specify ownership rights before the transfer.
H. A society may specify the terms and conditions on which benefit contracts may be assigned.