William Penn Life, 1987 (22. évfolyam, 1-12. szám)

1987-12-01 / 12. szám

6 ' By-Laws of the Association

ARTICLE VII

Section 700 - DISCIPLINE

701 - JURISDICTION

The Board of Directors shall have full authority over elected Officers, Branches, Branch Officers, Branch Coordinators, Field Personnel, Employees and members of the Association.

702 - OFFENSES

Upon the commission of any act which in the opinion of the Board of Directors is derogatory to the Association or has the effect of bringing the Association into disrepute, is a conflict of interest, results in a loss of money or personal property of the Association or is a violation of any provision of the By-Laws or lawful order of the Board of Directors, the member guilty of such conduct shall be subject to disciplinary action as hereinafter set forth.

703 - PROCEDURE

A member accused of violating provisions of Section 702, shall be entitled to a hearing before the Board or its designee in which the validity of the charges and punishment, if any to be imposed, shall be determined.

The Board of Directors shall prescribe:

(1) The manner of filing charges against any member.

(2) The procedure to be followed in hearing and determining such charges.

(3) The punishment that may be imposed.

(4) The procedure governing all appeals, provided, however, that no punishment shall deprive a member of any financial benefits to which he is entitled under the terms of any certificate.

704 - PENALTIES

After a hearing, the Board shall make findings of fact and shall find the member innocent or guilty of the charges. If guilty, the Board may penalize the member by:

(1) appropriate reprimand,

(2) suspension of fraternal or social membership rights and privileges for a fixed period of time or permanently,

(3) if money is involved, the amount of restitution to be made,

(4) removal from office.

ARTICLE VIII

Section 800 - PROPERTY OF THE ASSOCIATION

1. All real and personal property and other assets, whether administered by the Home Office Treasury or Branch Treasuries or other subsidiaries, which are derived from the payment of membership dues, investment income, bequests, voluntary donations, revenue profits of performances and entertainments, or from any other source by the Home Office Treasury or from branches, shall constitute the property of the Association.

2. All property of the Association shall be administered in the name of the Association both at the Home Office and that the branches or other subsidiaries.

ARTICLE IX

Section 900 - BENEFIT CONTRACTS, FUNDS AND APPORTIONMENT OF DEFICIENCY

1. The Board of Directors shall provide for benefit contracts to be issued, upon application and acceptance in a manner and upon such conditions as the Board may determine.

2. Benefit contracts may be issued on such basis, form and for such benefits and naming such persons as beneficiaries as the Board of Directors may direct.

3. The assets of the William Penn Association shall be kept in one fund and such funds as the Board of Directors shall prescribe or the laws shall require.

4. In the event of the impairment of the solvency of the William Penn Association, an apportionment shall be charged against each outstanding benefit contract on the basis of the member’s equitable share of the deficiency as determined by the Board of Directors.

5. All monies held by the Association, but not constituting the property of the Association, such as monies held for minor beneficiaries or for unknown beneficiaries, etc., shall be maintained in the Trust Account of the life benefit department.

On all such Trust Accounts, the Association shall credit interest at a rate determined by the Board of Directors, but at a rate no less than 4% per annum.

6. Deposits handled for minor beneficiaries in the Trust Account if not claimed within two (2) years after the minor has attained age 18, shall revert to the life benefit fund of the Association.

7. Deposits held for unknown beneficiaries, if not claimed, and proof of the rightful beneficiary is not made within two (2) years after the death of the insured member, shall revert to the life benefit fund of the Association. Trust accounts which have reverted to the life benefit fund shall be payable, without interest, to the rightful owners whenever proper proofs are presented. Trust accounts shall be handled by the National Secretary.

ARTICLE X

Section 1000 - PROVISIONS APPLICABLE TO BENEFIT CONTRACTS

1. The benefit certificate of a member shall consist of the membership application, the benefit certificate, any amendments or riders thereto, and the Articles of Incorporation and By-Laws now or hereafter in force.

2. The benefit contract shall also be governed by the following specific provisions, unless such contract provides otherwise, or unless such provisions are prohibited by state law:

(a) Upon disaffirmance of a benefit contract by a minor, only the cash surrender value of the contract shall be payable, and tender of such sum shall be a complete discharge of all liability of such contract.

(b) Payment of any claim under a benefit contract pursuant to the contract or any assignment therefor without notice to the Association of any alleged conflicting claimant shall be a complete discharge of the obligation for such claim on the contract or assignment.

(c) In case a benefit contract is lost, destroyed or beyond the member’s control, such member may, on a form furnished by William Penn Association, have a substitute contract or other evidence of coverage issued in its place. No requested change from the original contract shall be effective until the date of issue of the substitute contract, upon issuance of the substitute, the original contract shall thereupon become void.

ARTICLE XI

Section 1100 - PROVISIONS APPLICABLE TO BENEFIT CERTIFICATES

When a benefit certificate as defined herein does not provide otherwise or unless prohibited by law of the state having jurisdiction, the contract, whether issued before or after the date of these amended By-Laws shall be governed by the following specific provisions:

1) Beneficiaries:

Every member shall have the right to designate a beneficiary. Except in states specifically naming beneficiaries by statutes, any person or entity may be designated as beneficiary. The member has the right to change his beneficiary but only in the manner prescribed by the Association. No beneficiary or other person, except an assignee, shall have any vested interest in the benefits for any claim or loss against the Association or the member due to any change in beneficiary.

If a beneficiary is named contrary to the laws of the state in which the member resides, the designation becomes null and void and the share of such persons designated shall be paid to the heirs-at-law of the member, if any. However, they must prove their claims within two years of the death of the member. In the event the claim is not proven, the death benefits shall be payable to the personal representative of the deceased member.

2) Contingent Beneficiaries

Unless contrary to the law of the state in which the member resides, contingent beneficiaries may be named. Death Benefits are payable to contingent beneficiaries in the event the designated principal beneficiary predeceases the member.

3) Division of Benefits

Where more than one beneficiary is named, the member shall designate what amounts shall go to each beneficiary, otherwise, equal shares shall go to each beneficiary.

In the event one of the designated beneficiaries dies, his share of the benefits shall be divided among the surviving designated beneficiaries in equal shares.

4) Precedent Death of all Beneficiaries

If none of the beneficiaries named in the certificate shall survive the member, the death benefit shall be paid to the surviving spouse; if none, to the surviving children equally; if none, to the personal representative of the deceased member.

5) Death by the Hand of a Beneficiary

If a member dies by the hand of a beneficiary, unless by accident, whether sane or insane, such beneficiary shall not be entitled to any payment and his share of the death benefit shall be paid in accordance with the rules established for predeceased beneficiaries.

6) Change of Beneficiary

A member may change his beneficiaries at any time, but only on a form prescribed and furnished by or acceptable to the Association. Such form, properly filled out and accompanied by the membership certificate when requested, must be sent to the Home Office. The National Secretary shall endorse the name or names of the new beneficiary or beneficiaries upon the certificate of the member, or may issue a substitute certificate to him, subject to the same conditions as the one surrendered but containing the name or names of the newly designated beneficiary or beneficiaries. Such changes shall take effect as of the date of the request, but without prejudice to the Association by reason of any payment made under the contract prior to the receipt of the requested change at its Home Office. No change of beneficiary shall be allowed or be binding which is not requested in writing as herein provided. No change of beneficiary request shall be considered which is received at the Home Office after the death of the member.

7) Funeral Expenses

The Association shall have the right to pay out of the proceeds of the membership certificate, a sum not to exceed the amount permitted by the laws of the state where the deceased member resided, towards the funeral expenses of the deceased member, to any person equitably entitled thereto by reason of having incurred burial expenses of the member. Request for such payment must be made prior to the payment of the claim.

8) Premium payments shall be due in accordance with the provisions of the contract and By-Laws. The mode and time of premium payments shall be established from time to time by the Board of Directors. Members are obligated to pay the minimum premium as established by the Board of Directors, regardless of what the previously issued certificates may set forth.

9) Should the member die during the first year of membership, there shall be an indebtedness to the Association for the unpaid portion of a full year’s premium, the sum of such indebtedness shall be deducted from the claim payment.

10) Right of Action

No court action may be started for any claim arising out of a certificate of insurance, unless the action is started within the time allowed by the laws of the jurisdiction in which the cause of action accrues. In the absence of any such laws, the court action must be started within three years from the date the claim arises.

11) Receipt of Payments not a Waiver

If the Association receives and temporarily holds a payment of premium, this shall not constitute waiver of any of its defenses. If a certificate has lapsed or been