Okla. Stat. tit. 36, § 36-2710.1

A. A domestic society organized on or after the effective date

of this act shall only be formed by ten or more citizens of the

United States, a majority of whom are citizens of this state, who

desire to form a fraternal benefit society and who may make, sign

and acknowledge before some officer competent to take acknowledgment

of deeds, articles of incorporation, in which shall be stated:

1. The proposed corporate name of the society, which shall not

so closely resemble the name of any society or insurance company as

to be misleading or confusing;

2. The purposes for which it is being formed and the mode in

which its corporate powers are to be exercised. Such purposes shall

not include more liberal powers than are granted by this article;

and

3. The names and residences of the incorporators and the names,

residences and official titles of all the officers, trustees,

directors, or other persons who are to have and exercise the general

control of the management of the affairs and funds of the society

for the first year or until the ensuing election at which all such

officers shall be elected by the supreme governing body, which

election shall be held not later than one (1) year from the date of

issuance of the permanent certificate of authority.

B. Such articles of incorporation, duly certified copies of the

society's bylaws and rules, copies of all proposed forms of

certificates, applications therefor, and circulars to be issued by

the society, evidence of surplus funds as required herein and a bond

conditioned upon the return to applicants of the advanced payments

if the organization is not completed within one (1) year shall be

filed with the Insurance Commissioner, who may require such further

information as the Commissioner deems necessary. The bond with

sureties approved by the Commissioner shall be in such amount, not

less than Three Hundred Thousand Dollars ($300,000.00) nor more than

One Million Five Hundred Thousand Dollars ($1,500,000.00), as

required by the Commissioner. All documents filed are to be in the

English language. If the purposes of the society conform to the

requirements of this article and all provisions of the law have been

Oklahoma Statutes - Title 36. Insurance Page 717

complied with, the Commissioner shall so certify, retain and file

the articles of incorporation and furnish the incorporators a

preliminary certificate of authority authorizing the society to

solicit members as hereinafter provided. No solicitation of or

enrollment of applicants shall be commenced until there has been

submitted to the Insurance Commissioner evidence that such fraternal

benefit society has surplus funds in an amount equal to that

required of a domestic mutual life insurer.

C. No preliminary certificate of authority granted under the

provisions of this section shall be valid after one (1) year from

its date or after such further period, not exceeding one (1) year,

as may be authorized by the Commissioner upon cause shown, unless

the five hundred applicants hereinafter required have been secured

and the organization has been completed as herein provided. The

articles of incorporation and all other proceedings thereunder shall

become null and void in one (1) year from the date of the

preliminary certificate of authority, or at the expiration of the

extended period, unless the society shall have completed its

organization and received a certificate of authority to do business

as hereinafter provided.

D. Upon receipt of a preliminary certificate of authority from

the Commissioner, the society may solicit members for the purpose of

completing its organization, shall collect from each applicant the

amount of not less than one regular monthly premium in accordance

with its table of rates, and shall issue to each such applicant a

receipt for the amount collected. No society shall incur any

liability other than for the return of the advance premium, nor
m

the Commissioner, the society may solicit members for the purpose of

completing its organization, shall collect from each applicant the

amount of not less than one regular monthly premium in accordance

with its table of rates, and shall issue to each such applicant a

receipt for the amount collected. No society shall incur any

liability other than for the return of the advance premium, nor

issue any certificate, nor pay, allow, or offer or promise to pay or

allow, any benefit to any person until:

1. Actual bona fide applications for benefits have been secured

on not less than five hundred applicants, and any necessary evidence

of insurability has been furnished to and approved by the society;

2. At least ten subordinate lodges have been established into

which the five hundred applicants have been admitted;

3. There has been submitted to the Commissioner, under oath of

the president or secretary, or corresponding officer of the society,

a list of such applicants, giving their names, addresses, date each

was admitted, name and number of the subordinate lodge of which each

applicant is a member, amount of benefits to be granted and premiums

therefor; and

4. It shall have been shown to the Commissioner, by sworn

statement of the treasurer, or corresponding officer of such

society, that at least five hundred applicants have each paid in

cash at least one regular monthly premium as herein provided, which

premiums in the aggregate shall amount to at least One Hundred Fifty

Thousand Dollars ($150,000.00). Said advance premiums shall be held

in trust during the period of organization and if the society has

Oklahoma Statutes - Title 36. Insurance Page 718

not qualified for a certificate of authority within one (1) year, as

herein provided, such premiums shall be returned to the applicants.

E. The Commissioner may make such examination and require such

further information as the Commissioner deems advisable. Upon

representation of satisfactory evidence that the society has

complied with all the provisions of law, the Commissioner shall

issue to the society a certificate of authority to that effect and

that the society is authorized to transact business pursuant to the

provisions of this act. The certificate of authority shall be prima

facie evidence of the existence of the society at the date of the

certificate. The Commissioner shall cause a record of the

certificate of authority to be made. A certified copy of the record

may be given in evidence with like effect as the original

certificate of authority.

F. Any incorporated society authorized to transact business in

this state at the time this act becomes effective shall not be

required to reincorporate.