William Penn Life, 1996 (31. évfolyam, 1-12. szám)

1996-01-01 / 1. szám

6 - By-Laws of the Association

Page 12, William Penn Life, January 1996

Directors, National Officers, Branches, Branch Officers, Branch Coordinators, field personnel, employees, and members of the Association.

702 - OFFENSES

1. All members of the Association suspected or accused of any of the following described conduct shall be subject to the procedures and penalties hereinafter set forth in this Article VII. The conduct in question is any act which in the sole opinion of the Board:

a. Is derogatory to the Association or has the effect of bringing the Association into disrepute.

b. Constitutes a conflict of interest.

c. Results in a loss of money or personal property of the Association.

d. Constitutes a violation of these By-Laws or a lawful order of the Board.

2. Any member of the Association who is also a member of the Board or a Branch Officer, suspected or accused of any of the following described conduct shall, on the basis of separate charges, be subject to the procedures and penalties hereinafter set forth in this Article VII. The conduct in question is any act whereby:

a. The member when lawfully required to do so, fails or refuses to pay over or deliver money or property belonging to the Association which is in the possession of the member by virtue of his position as a Director or Branch Officer.

b. The member, in the sole opinion of the Board, fails to maintain the standards of comportment generally expected of Directors and Branch Officers.

c. The member when acting in his capacity as a Director or Branch Officer violates any law or ordinance, or any rule or regulation of a governmental agency.

d. The member vacates or abandons his Branch Office or Directorship, or ceases, in the sole opinion of the Board, to adequately discharge his duties in connection with such post.

e. The member is convicted of a felony or other crime, or engages in other behavior which, in the sole opinion of the Board, substantially impairs the good will of the Association.

703 - PROCEDURE

A member suspected or accused of violating one (1) or more provisions of Section 702 shall be entitled to a hearing before the Board in which the validity of the charges and penalty, if any, to be imposed for each such charge shall be determined.

The Board 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 penalty that may be imposed.

4. There shall be no right of review or appeal from the decision of the Board; provided, however, no penalty imposed shall deprive a member of any financial benefits to which he is entitled under the terms of any Certificate/Policy of Life Membership, annuity, or accident and health policy.

704 - PENALTIES

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

1. Appropriate reprimand.

2. Suspension of fraternal membership rights and privileges for a fixed period of time.

3. Expulsion from membership.

4. If money is involved, setting the amount of restitution to be made.

5. With respect to a Director, or Branch Officer, suspension from office for a fixed period of time or permanent removal from office in appropriate cases.

6. Any penalty imposed upon a member hereunder shall not be rescinded or reduced at any subsequent meeting of the Board or at any subsequent Regular or Special Session of the General Convention except by the affirmative vote of 80% of the members of the Board or 80% of the Certified Delegates who are present and voting at the meeting, provided a quorum is present.

ARTICLE VIII

Section 800 - PROPERTY OF THE ASSOCIATION

1. All real and personal property and other assets, whether administered by the National Treasury or Branch Treasuries or other subsidiaries, which are derived from the payment of

membership dues, investment income, bequests, voluntary donations, revenue profits from performances and entertainments, or from any other source 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 at the Branches or other subsidiaries.

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

ARTICLE IX

Section 900 - BENEFIT CONTRACTS, FUNDS AND APPORTIONMENT OF DEFICIENCY

1. The Board 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 may direct.

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

4. a. 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.

b. On all such Trust Accounts, the Association shall credit interest at a rate determined by the Board, but at a rate no less than four (4%) percent per annum.

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

6. 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.

7. 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 Vice President-Secretary.

8. These By-Law provisions will not be applicable in any state where statutory requirements conflict with the By-Law provisions.

ARTICLE X

Section 1000 - PROVISIONS APPLICABLE TO BENEFIT CONTRACTS

1. The benefit contract of a member shall consist of the membership application, the Benefit Certificate/Policy, any amendments or riders thereto, and the Charter 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 on such contract.

b. Payment of any claim under a benefit contract pursuant to the contract or any assignment thereof 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 the 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 issuance of the substitute contract, and, upon issuance of the substitute, the original contract shall thereupon become void.

ARTICLE XI

Section 1100 - PROVISIONS APPLICABLE TO

BENEFIT CERTIFICATES/POLICIES

When a Benefit Certificate/Policy 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.

a. Every member shall have the right to designate a beneficiary. Except in states specifically naming beneficiaries by statute, any person or entity may be designated as beneficiary.

b. 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, said heirs must prove their claim 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.

a. 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.

b. 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 Benefit Certificate/Policy should survive the member, then the surviving spouse, if any, shall be deemed a contingent beneficiary and the death benefit shall be paid to said spouse. If there is no surviving spouse, then the surviving children shall be deemed contingent beneficiaries and the death benefit shall be divided equally among them. If there is no surviving spouse and no surviving children, then the death benefit shall be paid 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, such beneficiary, whether sane or insane, 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/policy when requested, must be sent to the Home Office. The National Vice President- Secretary shall endorse the name or names of the new beneficiary or beneficiaries upon the certificate/policy of the member, or may issue a substitute certificate/policy 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 change shall take effect as of the date of 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 a member. 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.

7. Funeral Expenses.

The Association shall have the right to pay out of the proceeds of the membership certificate/policy, a sum not to exceed the amount authorized by the beneficiary of the said certificate/policy, towards funeral expenses of the deceased member, to any person equitably entitled thereto by reason of having paid any part or all of the burial expenses of the member. Request for such payment must be made prior to the payment of the claim to the beneficiary.

8. Premium Payments.

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/policies may set forth.