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CHAPTER 46 AN ACT TO AMEND CHAPTER 100, REVISAL 1905 OF NORTH CAROLINA, AND DEFINE AND REGULATE FRATERNAL ORDERS AND SOCIETIES. The General Assembly of North Carolina do enact:
That subchapter twelve, chapter one hundred, Revisal one thousand nine hundred and five of North Carolina, sections four thousand seven hundred and ninety-five, four thousand seven hundred and ninety-six, four thousand seven hundred and ninety-seven, and four thousand seven hundred and ninety-eight be amended to read as follows: XII. FRATERNAL ORDERS AND SOCIETIES. 4794 What laws applicable to. Nothing in the general insurance laws, except such laws as apply to fraternal orders or fraternal societies, 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. Such benevolent associations providing death benefits in excess of 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, shall be known as fraternal benefit societies; and those providing benefits of three hundred dollars or less shall be known as fraternal orders. 4795 Fraternal Orders Defined. 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 the payment of benefits of three hundred dollars or less 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 order. Societies and orders which do not make insurance contacts or collect dues or assessments therefor, but simply pay burial 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 caring for and educating orphan children and aged and infirm people in this State, shall not be considered as fraternal orders or fraternal benefit societies under this chapter; and such order or association paying death or disability benefits may also create, maintain, apply or disburse among its membership a reserve or emergency fund as may be provided in its constitution or by-laws; but no profit or gain shall be added to the payments made by a member. 4796 Funds must be derived from assessments and dues. 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 or societies, 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 or societies be designated therein. 4797 Supreme governing body may meet out of the State; principal business office must be here. Any such society or order incorporated and organized 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 such society shall have subordinates 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; but the principal business office of such society shall always be kept within this State and never removed therefrom. No fraternal order or society or beneficiary association: shall be authorized 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 in this State to associate with, as members of the same lodge, fraternity, society, association, the white and colored races with the objects and purposes provided in this act. 4798 Conditions precedent to doing business here. hus such fraternal, beneficiary order, society or association as is defined by this chapter, chartered and organized in this State or organized and doing business under the laws of any other state, district, province or territory, having the qualifications required of domestic societies of like character, upon satisfying the Insurance Commissioner that its business is proper 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.