(a)  The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting, in writing, that the beneficiary designation is irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the benefit contract.

Terms Used In Rhode Island General Laws 27-25-17

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Benefit contract: means the agreement for provision of benefits authorized by § 27-25-16, as that agreement is described in § 27-25-19(a);

    (2)  "Benefit member" means an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract;

    (3)  "Certificate" means the document issued as written evidence of the benefit contract;

    (4)  "Laws" means the society's articles of incorporation, constitution, and by-laws, however designated;

    (5)  "Lodge" means subordinate member units of the society, known as camps, courts, councils, branches, or by any other designation;

    (6)  "Premiums" means premiums, rates, dues, or other required contributions by whatever name known, which are payable under the certificate;

    (7)  "Rules" means all rules, regulations, or resolutions adopted by the supreme governing body or board of directors which are intended to have general application to the members of the society; and

    (8)  "Society" means fraternal benefit society, unless otherwise indicated. See Rhode Island General Laws 27-25-4

  • Contract: A legal written agreement that becomes binding when signed.
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6

(b)  A society may make provision for the payment of funeral benefits to the extent of the portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled to payment by reason of having incurred expense occasioned by the burial of the member, provided the portion so paid shall not exceed the sum of two thousand dollars ($2,000).

(c)  If, at the death of any person insured under a benefit contract, there is no lawful beneficiary to whom the proceeds shall be payable, the amount of the benefit, except to the extent that funeral benefits may be paid as provided in subsection (b) of this section, shall be payable to the personal representative of the deceased insured, provided that if the owner of the certificate is other than the insured, the proceeds shall be payable to the owner.

History of Section.
P.L. 1984, ch. 201, § 2; P.L. 1998, ch. 441, § 22.