Bill Text: CT HB05229 | 2012 | General Assembly | Comm Sub
Bill Title: An Act Concerning Reporting And Financial Requirements Of Certain Associations.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2012-05-02 - File Number 605 [HB05229 Detail]
Download: Connecticut-2012-HB05229-Comm_Sub.html
General Assembly |
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February Session, 2012 |
*_____HB05229INS___031612____* |
AN ACT EXEMPTING CERTAIN ASSOCIATIONS FROM THE INSURANCE STATUTES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 38a-625 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012):
(a) Nothing contained in sections 38a-595 to 38a-626, inclusive, as amended by this act, 38a-631 to 38a-640, inclusive, and 38a-800 shall be so construed as to affect or apply to: [(a)] (1) Grand or subordinate lodges of societies, orders or associations doing business in this state on January 1, 1958, [which] that provide benefits exclusively through local or subordinate lodges; [(b)] (2) [orders,] societies, orders or associations [which] that admit to membership only persons engaged in one or more crafts or hazardous occupations, in the same or similar lines of business, and the ladies' societies or ladies' auxiliaries to such [orders,] societies, orders or associations; [(c)] (3) domestic societies [which] that limit their membership to employees of a particular city or town, designated firm, business house or corporation, [which] that provide for a death benefit of not more than four hundred dollars or disability benefits of not more than three hundred fifty dollars to any person in any one year, or both; [(d)] (4) domestic societies or associations of a purely religious, charitable or benevolent description, [which] that provide for a death benefit of not more than four hundred dollars or for disability benefits of not more than three hundred fifty dollars to any one person in any one year or both; [or (e)] (5) nonprofit voluntary associations [which] that provide ambulance service [,] and are financed by subscription or gifts only; or (6) on and after July 1, 2012, and until July 1, 2015, associations that are tax-exempt organizations under Section 501(c)(23) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.
(b) Any such society or association described in subdivision [(c)] (3) or [(d)] (4) of subsection (a) of this section, [which] that provides for death or disability benefits for which benefit certificates are issued, and any such society or association included in subdivision [(d) which] (4) of subsection (a) of this section that has more than one thousand members, shall not be [exempted] exempt from the provisions of sections 38a-595 to 38a-626, inclusive, as amended by this act, 38a-631 to 38a-640, inclusive, and 38a-800 but shall comply with all requirements [hereof] in said sections. No society [which] that, by the provisions of this section, is exempt from the requirements of said sections, except any society described in subdivision [(b)] (2) of subsection (a) of this section, shall give or allow, or promise to give or allow, to any person any compensation for procuring new members. Every society [which] that provides for benefits in case of death or disability resulting solely from accidents, and [which] that does not obligate itself to pay natural death or sick benefits, shall have all the privileges and be subject to all the applicable provisions and regulations of said sections, except that the provisions [hereof] in said sections relating to medical examination, valuations of benefit certificates and incontestability shall not apply to such society. The commissioner may require from any society or association, by examination or otherwise, such information as will enable [him] the commissioner to determine whether such society or association is exempt from the provisions of said sections. Societies [,] exempted under the provisions of this section [,] shall also be exempt from all other provisions of the insurance laws of this state. On and after July 1, 2012, and until July 1, 2015, associations exempted under the provisions of subdivision (6) of subsection (a) of this section shall also be exempt from all other provisions of the insurance laws of this state.
Sec. 2. Section 38a-595 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2012):
Any incorporated society, order or supreme lodge, without capital stock, including one exempted under subdivision [(b)] (2) of subsection (a) of section 38a-625, as amended by this act, whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and [which] that makes provision for the payment of benefits in accordance with sections 38a-595 to 38a-626, inclusive, as amended by this act, 38a-631 to 38a-640, inclusive, and 38a-800, is declared to be a fraternal benefit society. When used in sections 38a-595 to 38a-626, inclusive, as amended by this act, 38a-631 to 38a-640, inclusive and 38a-800, "society", unless otherwise indicated, means fraternal benefit society and "premiums" means premiums, rates or other required contributions by whatever name known.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2012 |
38a-625 |
Sec. 2 |
July 1, 2012 |
38a-595 |
INS |
Joint Favorable Subst. |