have been approved by the insurance commissioner is held a restriction on the insurance company and not on the contract, and does not invalidate a policy for less than that amount.-Blount v. Royal Fraternal Ass'n, 163 N. C. 167, 79 S. E. 299.

Insurance § 138. The provision that no life insurance company may afford any special favor or advantage in premium rates to or discriminate among its policyholders, is a restriction applicable to the company; and where the insured has, in good faith, entered into a policy contract with the company whereby he has secured a policy at a reduced rate of premium, the parties are not in pari delicto.-Robinson v. Security Life & Annuity Company, 163 N. C. 415, 79 S. E. 681.

801. Foreign companies; requirements for admission. A company organized under the laws of any other of these United States for the transaction of life insurance may be admitted to do business in this state if it complies with the other provisions of this chapter regulating the terms and conditions upon which foreign life insurance companies may be admitted and authorized to do business in this state, and, in the opinion of the insurance commissioner, is in sound financial condition and has policies in force upon not less than five hundred lives for an aggregate amount of not less than five hundred thousand dollars. Any life company organized under the laws of any other country than the United States, in addition to the above requirements, must make and maintain the deposit required of such companies by article four of this chapter.

C. S., s. 6456; Rev., s. 4774; 1899, c. 54, s. 56.

802. Soliciting agent represents the company. A person who solicits an application for insurance upon the life of another, in any controversy relating thereto between the insured or his beneficiary and the company issuing a policy upon such application, is the agent of the company and not of the insured.

C. S., s. 6457; 1907, c. 958, s. 1.

SUBCHAPTER III.

FRATERNAL ORDERS AND SOCIETIES.

ART. 17. FRATERNAL ORDERS.

803. General insurance law not applicable. Nothing in the general insurance laws, except such as apply to fraternal orders or fraternal societies, shall be construed to extend to benevolent associations, incorporated under the laws of this state that only levy an assessment on the members to create a fund to pay the family of a deceased member and make no profit therefrom, and do not solicit business through agents. Such benevolent associations providing death benefits in excess of three hundred dollars to any one person, or disability benefits not exceeding three hundred dollars in any one year to any one person, or both, shall be known as "fraternal benefit societies"; and those providing benefits of three hundred dollars or less shall be known as "fraternal orders."

C. S., s. 6491; Rev., s. 4794; 1899, c. 54, s. 87; 1901, c. 706, s. 2; 1913, c. 46. Insurance § 687. Fraternal insurance orders are such as make provision for sick and death benefits and they are subject to the same rules, regulations, and supervision as foreign insurance companies, when operated from beyond the state, except that they are not required to make the deposit or have the paid up capital required of other companies.-State v. Arlington, 157 N. C. 640, 73 S. E. 122.

Insurance § 770. A member of a mutual benefit society may select any one as his beneficiciary, unless restricted by the rules of the society or by statute. Pollock v. Household of Ruth, 150 N. C. 211, 63 S. E. 940.

See Gay v. Woodmen of World, 179 N. C. 210, 102 S. E. 195; Hollingsworth v. Supreme Council, Royal Arcanum, 175 N. C. 615, 96 S. E. 81. 804. Fraternal orders defined. Every incorporated association, order, or society doing business in this state on the lodge system, with ritualistic form of work and representative form of government, for the purpose of making provision for the payment of benefits of three hundred dollars or less in case of death, sickness, temporary or permanent physical disability, either as the result of disease, accident, or old age, formed and organized for the sole benefit of its members and their beneficiaries, and not for profit, is hereby declared to be a "fraternal order." Societies and orders which do not make insurance contracts or collect dues or assessments therefor, but simply pay burial or other benefits out of the treasury of their orders, and use their funds for the

purpose of building homes or asylums for the purpose of caring for and educating orphan children and aged and infirm people in this state, shall not be considered as "fraternal orders" or "fraternal benefit societies" under this subchapter; and such order or association paying death or disability benefits may also create, maintain, apply, or disburse among its membership a reserve or emergency fund as may be provided in its constitution or bylaws; but no profit or gain may be added to the payments made by a member.

C. S., s. 6492; Rev., s. 4795; 1899, c. 54, s. 88; 1901, c. 706, s. 3; 1907, c. 936; 1913, c. 46.

See Gay v. Woodmen of World, 179 N. C. 210, 102 S. E. 195; Hollingsworth v. Supreme Council, Royal Arcanum, 175 N. C. 615, 96 S. E. 81; Brenizer v. Royal Arcanum, 141 N. C. 409, 53 S. E. 835.

805. Funds derived from assessments and dues. The fund from which the payment of benefits,, as provided for in the next preceding section, shall be made, and the fund from which the expenses of such association, order, or society shall be defrayed, shall be derived from assessments or dues collected from its members. Such societies or associations shall be governed by the laws of the state governing fraternal orders or societies, and are exempt from the provisions of all general insurance laws of this state, and no law hereafter passed shall apply to such societies unless fraternal orders or societies are designated therein.

C. S., s. 6493; Rev., s. 4796; 1899, c. 54, s. 89; 1901, c. 706, s. 2; 1913, c. 46. See Brenizer v. Royal Arcanum, 141 N. C. 409, 53 S. E. 835.

806. Assessments and dues; collection. Assessments and dues referred to in the two preceding sections may be collected, receipted and remitted by a member or officer of any local or subordinate lodge of any fraternal order or society when so appointed or designated by any grand, district or subordinate lodge. or officer, deputy or representative of the same, there being no regular licensed agent or deputy of said grand lodge charged with soid 1-4es Lut any persez s ollecting said dues or assessments stall be the agent represent. tive of such fraternal order

er any department thereof, and shall bind them by they acts a coteering and remit g said amounts so collected.

no & Peumstances, reganties of any agreement, by-law, contract or notice, shall said officer or collector be the agent or representative of the individual member from whom any such collection is made; nor shall said member be responsible for the failure of such officer or collector to safely keep, handle or remit

said dues or assessments so collected, in accordance with the rules, regulations, or by-laws of said society; nor shall said member, regardless of any rules, regulations, or by-laws to the contrary, forfeit any rights under his certificate or membership in said fraternal benefit society by reason of any default or misconduct of any said officer or member so acting.

C. S., s. 6493-a; 1921, c. 139, s. 1.

807. Meetings of governing body; principal office; separation of races. Any such society or order incorporated and organized under the laws of this state may provide for the meeting of its supreme legislative or governing body in any other state, province, or territory wherein such society has subordinate lodges, and all business transacted at such meetings is as valid in all respects as if the meetings were held in this state; but the principal business office of such society shall always be kept in this state. No fraternal order or society or beneficiary association shall be authorized to do business in this state under the provisions of this article, whether incorporated under the laws of this or any other state, province, or territory, which associates with, or seeks in this state to associate with, as members of the same lodge, fraternity, society, association, the white and colored races with the objects and purposes provided in this article. C. S., s. 6494; Rev., s. 4797; 1899, c. 54, s. 91; 1913, c. 46.

808. Conditions precedent to doing business. Any such fraternal, beneficiary order, society, or association as defined by this chapter, chartered and organized in this state or organized. and doing business under the laws of any other state, district, province, or territory, having the qualifications required of domestic societies of like character, upon satisfying the insurance commissioner that its business is proper and legitimate and so conducted, may be admitted to transact business in this state. upon the same conditions as are prescribed by this chapter for admitting and authorizing foreign insurance companies to do business in this state, except that such fraternal orders shall not be required to have the capital required of such insurance companies.

C. S., s. 6495; Rev, s. 4798; 1899, c. 54, s. 92; 1901, c. 706, s. 2; 1903, c. 438, s. 9; 1913, c. 46.

809. Certain lodge systems exempt. Beneficial fraternal orders, or societies incorporated under the laws of this state which are conducted under the lodge system, having the supreme lodge or

governing body located in this state, and so organized that the membership consists of members of subordinate lodges, and the subordinate lodges accept for membership none but residents of the county in which such subordinate lodge is located, and each subordinate lodge issues certificates, makes assessments, and collects a fund to pay benefits to the widows and orphans of its own deceased members and their families, each lodge, independently of the other, for itself, and independently of the supreme lodge, each lodge controlling the fund for this purpose, and in addition to the benefits paid by each subordinate lodge to its own members, the supreme lodge provides for an additional benefit for such of the members of the subordinate lodges as are qualified, at the option of the subordinate lodge member, and such organization is not conducted for profit, has no capital stock, and has been in operation for ten years in this state, such beneficial orders or societies shall be exempt from the requirements of this chapter, and shall not be required to pay any license tax or fees nor make any report to the insurance commissioner, unless the assessments collected for death benefits by the supreme lodge amount to at least three hundred dollars in one year. The insurance commissioner may require the chief or presiding officer, or the secretary, to file annually an affidavit that such organization is entitled to this exemption.

C. S., s. 6496; 1911, c. 199.

ART. 18.

FRATERNAL BENEFIT SOCIETIES.

810. Fraternal benefit society defined. Any corporation, society, order, or voluntary association, without capital stock, organized and carried on solely for the mutual benefit of its members and their beneficiaries, and not for profit, and having a lodge system with ritualistic form of work and representative form of government, and which makes provision for the payment of benefits as hereafter prescribed in this article, is declared to be a fraternal benefit society.

C. S., s. 6497; 1913, c. 89, s. 1.

811. Lodge system defined. A society having a supreme gov erning or legislative body and subordinate lodges or branches, by whatever name known, into which members are elected, initiated, and admitted in accordance with its constitution, laws, rules, regulations, and prescribed ritualistic ceremonies, which subordinate lodges or branches are required by the laws of such