2006 Minnesota Statutes

64B.39 BENEFICIARY ASSOCIATIONS.
    Subdivision 1. Definitions. "Beneficiary association" means a corporation, society, or
voluntary association heretofore organized and now existing and carried on for the sole benefit
of its members and their families, relatives, or dependents, but not for profit, to insure the lives
of its members only upon the whole life assessment plan, so-called, and in which organization
admission to membership by a vote of the members or some governing body thereof, is a
prerequisite to being entitled to such relief or policy of insurance, and which association sells
neither endowments nor annuities.
    Subd. 2. Benefits. Any beneficiary association 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 70 years, and may also provide for the payment of funeral expenses of
a member not exceeding $250; in any case, all of these benefits to be paid, subject to compliance
by its members with its constitution and bylaws, out of funds derived from assessments and
dues collected from its members.
    Subd. 3. Eligible beneficiaries. Payments of death benefits shall be made only to the
families, heirs, blood relatives, adopted children, fiance or fiancee of the member, or persons
dependent upon the member, or, when the certificate of membership may so provide, the executor
or administrator of the estate of the member in trust for the person or persons above mentioned as
may be designated in the certificate. Any member who, by reason of old age, or other disability, is
dependent for support, in whole or in part, upon another, whether or not such other stands in the
above relationship to the member, may, with the consent of the association, and under regulations
it prescribes, designate the person upon whom the member is so dependent as a beneficiary under
the certificate; and, in that case, the death benefits shall be paid according to this designation.
    Subd. 4. Reserve; taxation. Every association may create and maintain a reserve fund for
that purpose and shall be held to be an institution of public charity, and shall be exempt from
payment of any taxes for state, county, or municipal purposes, except that the real estate of the
association shall be taxed as other real estate in the state.
    Subd. 5. Law applicable. The beneficiary society or association shall be governed by the
provisions of this chapter not inconsistent with this section and be excluded from all provisions of
the insurance laws of this state to the same extent as fraternal benefit societies.
History: 1985 c 49 s 39; 1986 c 444; 1992 c 564 art 1 s 54