A domestic society organized on or after September 6, 1985, shall be formed as follows:

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(1) Seven or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make, sign, and acknowledge, before some officer competent to take acknowledgment of deeds, articles of incorporation in which shall be stated:

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

(b) The purposes for which it is being formed and the mode in which its corporate powers are to be exercised. Such purposes shall not include more liberal powers than are granted by sections 44-1072 to 44-10,109 ; and

(c) The names and residences of the incorporators and the names, residences, and official titles of all the officers, trustees, directors, or other persons who are to have and exercise the general control of the management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme governing body, which election shall be held not later than one year from the date of issuance of the permanent certificate of authority;

(2) Such articles of incorporation, duly certified copies of the society’s bylaws and rules, copies of all proposed forms of certificates and applications therefor and circulars to be issued by the society, and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within one year shall be filed with the Director of Insurance, who may require such further information as he or she deems necessary. The bond with sureties approved by the director shall be in such amount, not less than three hundred thousand dollars nor more than one million five hundred thousand dollars, as the director requires. All documents filed are to be in the English language. If the purposes of the society conform to the requirements of sections 44-1072 to 44-10,109 and all provisions of the law have been complied with, the director shall so certify, retain, and file the articles of incorporation and furnish the incorporators a preliminary certificate of authority authorizing the society to solicit members;

(3) No preliminary certificate of authority granted under this section shall be valid after one year from its date of issuance or after such further period, not exceeding one year, as may be authorized by the Director of Insurance upon cause shown, unless the five hundred applicants required by subdivision (4) of this section have been secured and the organization has been completed pursuant to this section. The articles of incorporation and all other proceedings thereunder shall become null and void one year from the date of issuance of the preliminary certificate of authority, or at the expiration of the extended period, unless the society shall have completed its organization and received a certificate of authority to do business;

(4) Upon receipt of a preliminary certificate of authority from the Director of Insurance, the society may solicit members for the purpose of completing its organization, shall collect from each applicant the amount of not less than one regular monthly premium in accordance with its table of rates, and shall issue to each such applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of such advance premium, issue any certificate, or pay, allow, or offer or promise to pay or allow any benefit to any person until:

(a) Actual bona fide applications for benefits have been secured from not less than five hundred applicants, and any necessary evidence of insurability has been furnished to and approved by the society;

(b) At least ten subordinate lodges have been established into which the five hundred applicants have been admitted;

(c) There has been submitted to the Director of Insurance, under oath of the president or secretary, or corresponding officer of the society, a list of such applicants, giving their names, addresses, date each was admitted, name and number of the subordinate lodge of which each applicant is a member, amount of benefits to be granted, and premiums therefor; and

(d) It shall have been shown to the Director of Insurance, by sworn statement of the treasurer or corresponding officer of such society that at least five hundred applicants have each paid in cash at least one regular monthly premium, which premiums in the aggregate shall amount to at least one hundred fifty thousand dollars. The advance premiums shall be held in trust during the period of organization and if the society has not qualified for a certificate of authority within one year, such premiums shall be returned to the applicants; and

(5) The Director of Insurance may make such examination and require such further information as he or she deems advisable. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, the director shall issue to the society a certificate of authority and the society shall be authorized to transact business pursuant to sections 44-1072 to 44-10,109. The certificate of authority shall be prima facie evidence of the existence of the society at the date of such certificate. The director shall cause a record of such certificate of authority to be made. A certified copy of such record may be given in evidence with like effect as the original certificate of authority.

Any incorporated society authorized to transact business in this state on September 6, 1985, shall not be required to reincorporate.