FRATERNAL BENEFIT SOCIETIES
418:29 Suspension or Revocation of License.
I. When the commissioner upon investigation finds that a domestic, foreign or alien society has exceeded its powers; has failed to comply with any provision of this chapter; is not fulfilling its contracts in good faith; has a membership of less than 400 after an existence of one year or more; or is conducting business fraudulently or in a manner hazardous to its members, creditors, the public or the business; the commissioner shall notify the society of such deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction.
II. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist are corrected. After such notice the society shall have a 30-day period in which to comply with the commissioner's request for correction, and if the society fails to comply the commissioner shall notify the society of such findings of noncompliance and require the society to show cause, on a date named, why its license should not be suspended or revoked until the violation complained of shall have been corrected.
III. If on the date named in the notice such objections have not been removed to the satisfaction of the commissioner, or the society does not present good and sufficient reason why its authority to transact business in this state should not at that time be suspended or revoked, the commissioner may either suspend or revoke the authority of the society to continue business in this state.
IV. Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time such society was legally authorized to transact business herein.
Source. 2003, 182:1, eff. Jan. 1, 2004.