§4479. The contract

Link to law: http://legislature.vermont.gov/statutes/section/08/121/04479
Published: 2015

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The Vermont Statutes Online



Banking and Insurance






4479. The contract

(a) Every

society authorized to do business in this State shall issue to each benefit

member a certificate specifying the amount of benefits provided thereby. The

certificate, together with any riders or endorsements attached thereto, the

charter or articles of incorporation, the constitution and laws of the society,

the application for membership, and declaration of insurability, if any, signed

by the applicant, and all amendments to each thereof, shall constitute the

agreement, as of the date of issuance, between the society and the member, and

the certificate shall so state. A copy of the application for membership and of

the declaration of insurability, if any, shall be endorsed upon or attached to

the certificate.

(b) All statements

purporting to be made by the member shall be representations and not

warranties. Any waiver of this provision shall be void.

(c) Any changes,

additions, or amendments to the charter or articles of incorporation,

constitution, or laws duly made or enacted subsequent to the issuance of the

certificate, shall bind the member and the beneficiaries and shall control the

agreement in all respects the same as though the changes, additions, or

amendments had been made before and were in force at the time of the

application for membership, except that no change, addition, or amendment shall

destroy or diminish benefits which the society contracted to give the member as

of the date of issuance.

(d) Copies of

any of the documents mentioned in this section, certified by the secretary or

corresponding officer of the society, shall be received in evidence of the

terms and conditions thereof.

(e) A society

shall provide in its constitution or laws that if its reserves as to all or any

class of certificates become impaired its board of directors or corresponding

body may require that there shall be paid by the member to the society the

amount of the member's equitable proportion of the deficiency as ascertained by

its board, and that if the payment be not made it shall stand as an

indebtedness against the certificate and draw interest not to exceed five

percent a year compounded annually. (1959, No. 197, § 19, eff. Nov. 22, 1959.)