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This entry was published on 2022-07-29
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Soliciting membership in unauthorized societies; penalties
Insurance (ISC) CHAPTER 28, ARTICLE 45
§ 4523. Soliciting membership in unauthorized societies; penalties.
(a) Any person, firm, association or corporation who or which shall
solicit a member or members for, or in any way assist in procuring a
member or members for, or collect payments or dues for or in connection
with the membership of, any fraternal benefit society that is not
licensed to do business in this state and that is not exempted under the
provisions of section four thousand five hundred twenty-two of this
article shall be guilty of a misdemeanor, and in addition, such person,
firm, association or corporation shall be liable to a penalty of one
hundred dollars for each person so solicited or so procured to become a
member in such unauthorized society, and may in addition to either of
the foregoing, be enjoined from doing any such unlawful acts, in the
manner specified in section three hundred nine of the financial services

(b) The provisions of subsection (a) hereof shall not apply to the
conduct of a designated representative acting under the authority of an
unlicensed fraternal benefit society which was heretofore licensed to do
business in this state and has obtained a certificate from the
superintendent authorizing designated representatives to act for such
society in the collection of payments or dues from members or perform
any act incident to existing membership but not to solicit members or
assist in procuring members. The application for such certificate shall
be on such form or forms and supplements thereto, and shall contain such
information, as the superintendent may prescribe. There shall be
attached to such forms a statement by such society stating that such
society has satisfied itself that the proposed designated representative
is trustworthy and competent to act as such designated representative
and that the society will appoint him to act as its designated
representative. Such statement shall be subscribed by an officer of such
society and affirmed by such officer as true under the penalties of
perjury. The superintendent may revoke the superintendent's
authorization of any designated representative after notice and hearing
and on the grounds enumerated in subsection (a) of section two thousand
one hundred ten of this chapter.