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PA Bulletin, Doc. No. 97-1030


[31 PA. CODE CH. 41]

Fraternal Beneficial Societies Administration

[27 Pa.B. 3062]

   The Insurance Department (Department) proposes to delete Chapter 41 (relating to administration) to read as set forth in Annex A. The deletion is being published as a proposed rulemaking to allow an opportunity for public comment. The deletion is proposed under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); and the Fraternal Benefit Societies Code (40 P. S. §§ 1142-101--1142-701). Chapter 41 was promulgated under section 3 of the act of July 17, 1935 (P. L. 1092, No. 357) (Act 357) (40 P. S. § 1053)(now repealed). The regulation sets forth requirements that must be met in a request for waiver or extension of a meeting of a domestic fraternal beneficial society.


   The purpose of this rulemaking is to delete Chapter 41 to eliminate an obsolete, unnecessary regulation. The regulation was adopted May 18, 1943, and required that a request for waiver or extension of a meeting of a fraternal beneficial society shall be made by resolution of the board of directors or similar managing body. The resolution is required to contain six items of information listed in the regulation, including a certification that the request for waiver or extension has been approved by a majority of the subordinate lodges or bodies of the fraternal beneficial society.

   Act 357 which initially authorized the regulation was transferred to 15 P. S. §§ 8501--8543 and later repealed by section 5(a)(9) of the act of November 15, 1972 (P. L. 1063, No. 271) (Act 271) 40 Pa.C.S. §§ 6501--6701. Act 271 was subsequently replaced by the act of July 29, 1977 (P. L. 105, No. 38) (Act 38)(40 P. S. §§ 1141-101--1141-1001). Finally, Act 38 was replaced by section 701 of the Fraternal Benefit Societies Code (40 P. S. § 1142-701).

   Section 202 of the Fraternal Benefit Societies Code (40 P. S. § 1142-202) contains requirements relating to meetings of domestic fraternal benefit societies. The current statutory requirements relating to meetings of fraternal benefit societies are consistent with requirements relating to other types of insurers. However, Chapter 41 contains additional requirements beyond those contained in current law, which requirements are not imposed on other types of insurers. Imposing special requirements on fraternal benefit societies regarding their meetings serves no compelling public interest. The statutory requirements are sufficient. Therefore, the regulation has been superseded by the existing statutory requirements in the Fraternal Benefit Societies Code (40 P. S. §§ 1142-101--1142-616) and are no longer needed.

Affected Parties

   The deletion of the regulation affects fraternal benefit societies.

Fiscal Impact

   The deletion of the regulation has no fiscal impact because of the obsolescence of the regulation.


   The deletion of the regulation would impose no additional paperwork requirements on the Department or fraternal benefit societies.

Effectiveness/Sunset Date

   The rulemaking will become effective upon final publication in the Pennsylvania Bulletin. Because the rulemaking proposes to delete obsolete, unnecessary regulations, no sunset date has been assigned.

Contact Person

   Questions or comments regarding the proposed rulemaking may be addressed in writing to Elaine M. Leitzel, Administrative Officer, Office of Regulation of Companies, 1345 Strawberry Square, Harrisburg, PA 17120 (717) 787-8840, within 30 days of its publication in the Pennsylvania Bulletin.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on June 18, 1997, the Department submitted a copy of this proposed rulemaking to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition to submitting the rulemaking, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1. A copy of the material is available to the public upon request.

   If IRRC has objections to any portion of the proposed rulemaking, it will notify the Department within 30 days of the close of the public comment period. The notification shall specify the regulatory review criteria that have not been met by that portion. The Regulatory Review Act specifies detailed procedures for the Department, the Governor and the General Assembly to review these objections before final publication of the rulemaking.

Insurance Commissioner

   Fiscal Note: 11-153. No fiscal impact; (8) recommends adoption.

Annex A





§ 41.1 [Extension or waiver of meetings] (Reserved).

   [A request for waiver or extension of meetings of fraternal beneficial societies shall be by resolution of the board of directors or similar managing body. The resolution shall be attested by the secretary of the society and shall contain all of the following information:

   (1)  Identification of the convention or meeting.

   (2)  The need for waiver or extension.

   (3)  The specific provisions of the constitution and bylaws under which the society will function if the request for waiver or extension is granted.

   (4)  Certification that the request for waiver or extension has been approved by a majority of the subordinate lodges or bodies.

   (5)  A statement that a waiver or extension, if granted, will not be prejudicial to the best interests of the members.

   (6)  A statement that the convention or meeting so waived or so extended will be held within a stated time after the date of the waiver or the extension has expired.]

[Pa.B. Doc. No. 97-1030. Filed for public inspection June 27, 1997, 9:00 a.m.]

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