Minnesota Legislature
Office of the Revisor of Statutes
2007 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
64B.22 FUNDS.
Subdivision 1. Assets. All assets shall be held, invested, and disbursed for the use and benefit
of the society and no member or beneficiary shall have or acquire individual rights therein or
become entitled to any apportionment on the surrender of any part thereof, except as provided in
the benefit contract.
Subd. 2. Special funds. A society may create, maintain, invest, disburse, and apply any
special fund or funds necessary to carry out any purpose permitted by the laws of the society.
Subd. 3. Separate accounts. A society may, pursuant to resolution of its supreme governing
body, establish and operate one or more separate accounts and issue contracts on a variable
basis, subject to the provisions of law regulating life insurers establishing such accounts and
issuing such contracts. To the extent the society deems it necessary in order to comply with any
applicable federal or state laws, or any rules issued thereunder, the society may adopt special
procedures for the conduct of the business and affairs of a separate account, may, for persons
having beneficial interests therein, provide special voting and other rights, including without
limitation special rights and procedures relating to investment policy, investment advisor services,
selection of certified public accountants, and selection of a committee to manage the business
and affairs of the account, and may issue contracts on a variable basis to which section64B.19,
subdivisions 2 and 4 shall not apply.
Subd. 4. Authority of fraternal benefit societies clarified. Subdivision 3 clarifies the
authority of a fraternal benefit society to establish separate accounts, and to provide that the open
contract and maintenance of solvency provisions may be deleted from contracts issued on a
variable basis if so required to be consistent with other state or federal laws regulating variable
contracts. The establishment of a separate account for variable products may be difficult to
integrate into a society's existing mechanisms of representative form of government, so the statute
emphasizes the care that must be taken in the decision by requiring that the supreme governing
body authorize the establishment of the account.
History: 1985 c 49 s 22
Subdivision 1. Assets. All assets shall be held, invested, and disbursed for the use and benefit
of the society and no member or beneficiary shall have or acquire individual rights therein or
become entitled to any apportionment on the surrender of any part thereof, except as provided in
the benefit contract.
Subd. 2. Special funds. A society may create, maintain, invest, disburse, and apply any
special fund or funds necessary to carry out any purpose permitted by the laws of the society.
Subd. 3. Separate accounts. A society may, pursuant to resolution of its supreme governing
body, establish and operate one or more separate accounts and issue contracts on a variable
basis, subject to the provisions of law regulating life insurers establishing such accounts and
issuing such contracts. To the extent the society deems it necessary in order to comply with any
applicable federal or state laws, or any rules issued thereunder, the society may adopt special
procedures for the conduct of the business and affairs of a separate account, may, for persons
having beneficial interests therein, provide special voting and other rights, including without
limitation special rights and procedures relating to investment policy, investment advisor services,
selection of certified public accountants, and selection of a committee to manage the business
and affairs of the account, and may issue contracts on a variable basis to which section
subdivisions 2 and 4
Subd. 4. Authority of fraternal benefit societies clarified. Subdivision 3 clarifies the
authority of a fraternal benefit society to establish separate accounts, and to provide that the open
contract and maintenance of solvency provisions may be deleted from contracts issued on a
variable basis if so required to be consistent with other state or federal laws regulating variable
contracts. The establishment of a separate account for variable products may be difficult to
integrate into a society's existing mechanisms of representative form of government, so the statute
emphasizes the care that must be taken in the decision by requiring that the supreme governing
body authorize the establishment of the account.
History: 1985 c 49 s 22
Official Publication of the State of Minnesota
Revisor of Statutes