§ 8-205. Exemption from insurance laws - Operating expenses and trust fund - Mutual character - Members - Articles of agreement - Fees and assessments.

That all burial associations now operating or that may be hereafter organized, as incorporated or nonincorporated associations, which are nonprofit sharing in their operations and pay no fees or salaries to any of their officers and have no capital stock and which comply with the provisions of this act shall be exempt from the operations and the effect of the insurance laws of the State of Oklahoma; and shall not be required to comply with the insurance laws of the said state; provided, that all monies collected by said associations shall be accounted for; provided further that not more than twenty-five percent (25%) of said funds are to be used for operating expenses, and not less than seventy-five percent (75%) of the funds so collected is to be held as a trust fund for the benefit of the members.

Associations licensed under this act shall be mutual associations and every person who applies for and holds a burial agreement shall be a member of the association, in accordance with the bylaws of the association and shall be entitled to one vote, and such members may vote in person or by proxy.  Burial associations are hereby declared to be charitable and benevolent associations.

The following shall be the Uniform Article of Agreement between burial associations and their members.

ARTICLES OF AGREEMENT

Article 1.  In consideration of One Dollar ($1.00) Membership fee and assessments of fifty cents ($0.50) per month, or Five Dollars ($5.00) for twelve (12) assessments if paid in advance, we agree to furnish the following protection for an entire family who live at home, and are solely dependent upon the head of the house.  This protection also covers school students.  All applicants must be in good health at the time of application for membership.  Upon marriage of any of the children, they are automatically dropped from this certificate.

Article 2.  All assessments are due on the first day of each month and carry fifteen (15) days grace, becoming delinquent on midnight of the fifteenth.  Any certificate which has lapsed on account of failure to pay an assessment, may be reinstated by paying a fifty-cent assessment, provided that if any member of the family is sick at the time of such reinstatement benefits will not be reinstated on such sick person until his recovery.

Article 3.  All persons between the ages of seven (7) and seventy (70) at the time of application for membership are entitled to One Hundred Dollars ($100.00) burial benefits; all children under the age of seven (7) are entitled to Fifty Dollars ($50.00) burial benefits; upon reaching the age of seven (7), children are automatically entitled to One Hundred Dollars ($100.00) burial benefits; applicants who join after they have reached the age of seventy (70) are entitled to Fifty Dollars ($50.00) burial benefits.  Stillborn babies are entitled to Twenty-five Dollars ($25.00) burial benefits.  In the event a baby is born into the family, the name may be placed on the certificate at no additional charge.

Article 4.  All benefits are for service and merchandise only and must be furnished by the association.  Said association will not be responsible for any debts incurred by the death of any member of this association.

Article 5.  In the event death occurs beyond the distance of fifty (50) miles, the burial association being duly notified, may, in lieu of the above complete service, deliver to the express office for shipment, merchandise in the value as specified in this certificate, or mail Sixty Dollars ($60.00) to the policy holder.  All express charges shall be paid by the certificate holder.

Provided further that the Oklahoma State Board of Embalmers and Funeral Directors shall draft a uniform application for membership which shall be used by all burial associations operating in the State of Oklahoma, or which may be hereafter organized, said application for membership shall have printed across the face in red ink the following language: "This is not an application for life insurance."  Said Board shall also provide for uniform membership fees, dues and/or assessments; the membership fee of One Dollar ($1.00) shall be the assessment for the first month in which the agreement is issued, provided the remaining dues or assessments to be not less than fifty cents ($0.50) on a monthly basis, provided, however, that twelve (12) assessments may be paid in advance for Five Dollars ($5.00) and, provided further that if the funds on hand in the trust fund are equal to fifty cents ($0.50) for each certificate in force a monthly assessment may be passed until such time as the funds in the trust are less than fifty cents ($0.50) for each certificate in force.  Provided that any association now in existence charging a less sum may continue to service all certificates now in effect at existing rates specified in the certificates; and certificates which lapse, and all new certificates must be written at the uniform rate set up by this act. No burial association licensed pursuant to the provisions of this act shall have the authority to levy any assessment on its members other than the assessment expressly provided for in the Uniform Article of Agreement.  All certificates of membership issued by said associations shall have printed across the face of said certificate the following language:  "This is not a certificate of life insurance."

Laws 1953, p. 130, § 5; Laws 1992, c. 147, § 5, eff. July 1, 1992.