Oregon Code § 748.211·Enacted ·Last updated March 01, 2026
Statute Text
Benefit contract; certificate.
(1) Every society authorized to do business in this state shall issue to each
owner of a benefit contract a certificate specifying the amount of benefits
provided. The certificate, together with any riders or indorsements attached to
it, the laws of the society, the application for membership, the application
for insurance and declaration of insurability, if any, signed by the applicant,
and all amendments to each, shall constitute the benefit contract, as of the
date of issuance, between the society and the owner, and the certificate shall
so state. The laws of the society need not be stated in full in the
certificate, except as provided in this section. A copy of the application for
insurance and declaration of insurability, if any, shall be indorsed upon or
attached to the certificate. All statements on the application shall be
representations and not warranties. Any waiver of this provision shall be void.
(2) Any changes,
additions or amendments to the laws of the society duly made or enacted
subsequent to the issuance of the certificate, shall bind the owner and the
beneficiaries, and shall govern and control the benefit contract in all
respects the same as though the changes, additions or amendments had been made
prior to and were in force at the time of the application for insurance, except
that no change, addition or amendment shall destroy or diminish benefits which
the society contracted to give the owner as of the date of issuance.
(3) Any person
upon whose life a benefit contract is issued prior to attaining the age of
majority shall be bound by the terms of the application and certificate and by
all the laws and rules of the society to the same extent as though the age of
majority had been attained at the time of application.
(4) A society
shall provide in its 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 be paid by the owner to the society the amount of the owners
equitable proportion of the deficiency as ascertained by its board, and that if
the payment is not made:
(a) It shall
stand as an indebtedness against the certificate and draw interest not to
exceed the rate specified for certificate loans under the certificates; or
(b) In lieu of or
in combination with paragraph (a) of this subsection, the owner may accept a
proportionate reduction in benefits under the certificate.
(5) The society
may specify the manner of the election of the alternatives specified in
subsection (4) of this section and which alternative is to be presumed if no
election is made.
(6) 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 of the documents.
(7) No
certificate shall be delivered or issued for delivery in this state unless a
copy of the form has been filed with and approved by the Director of the
Department of Consumer and Business Services, and is subject to withdrawal of
approval, in the manner provided for like policies issued by life and health
insurers in this state. Every life, accident, health or disability insurance
certificate and every annuity certificate issued on or after one year from
January 1, 1988, shall meet the standard contract provision requirements not
inconsistent with this chapter for like policies issued by life and health
insurers in this state, except that a society may provide for a grace period
for payment of premiums of one full month in its certificates. The certificates
shall also contain a provision stating the amount of premiums which are payable
under the certificate and a provision reciting or setting forth the substance
of any sections of the societys laws or rules in force at the time of issuance
of the certificate which, if violated, shall result in the termination or
reduction of benefits payable under the certificate. In addition, except for
contracts issued on a variable basis as authorized by ORS 748.409, the
certificate shall contain a provision stating the substance of the societys
laws required under subsections (4) and (5) of this section. If the laws of the
society provide for expulsion or suspension of a member, the certificate shall
also contain a provision that any member so expelled or suspended, except for
nonpayment of a premium or within the contestable period for material
misrepresentation in the application for membership or insurance, shall have
the privilege of maintaining the certificate in force by continuing payment of
the required premium.
(8) Benefit
contracts issued on the lives of persons below the societys minimum age for
adult membership may provide for transfer of control or ownership to the
insured at an age specified in the certificate. A society may require approval
of an application for membership in order