a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Lodge system: means one in which:
(i)
there is a supreme governing body;
(ii)
subordinate to the supreme governing body are local lodges, however designated, into which natural persons are admitted as members in accordance with the laws of the fraternal;
(iii)
the local lodges are required by the laws of the fraternal to hold regular meetings at least monthly; and
(iv)
the local lodges regularly engage in programs involving member participation to implement the purposes of Subsection (1)(a)(ii). See Utah Code 31A-9-101
Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
(a)
“Fraternal” or “fraternal benefit society” means a corporation organized or operating under this chapter that:
(i)
has no capital stock;
(ii)
exists solely for:
(A)
the benefit of its members and their beneficiaries; and
(B)
any lawful social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on through voluntary activity of its members in their local lodges or through institutional programs of the fraternal or its local lodges;
(iii)
has a lodge system;
(iv)
has a representative form of government; and
(v)
provides insurance benefits authorized under this chapter.
(b)
“Laws of a fraternal” include its articles of incorporation and bylaws, however designated.
(c)
“Lodge system” means one in which:
(i)
there is a supreme governing body;
(ii)
subordinate to the supreme governing body are local lodges, however designated, into which natural persons are admitted as members in accordance with the laws of the fraternal;
(iii)
the local lodges are required by the laws of the fraternal to hold regular meetings at least monthly; and
(iv)
the local lodges regularly engage in programs involving member participation to implement the purposes of Subsection (1)(a)(ii).
(d)
“Representative form of government” means the fraternal complies with Section 31A-9-403.
(2)
In any provisions of law made applicable to fraternals by this chapter, the technical terms used in those provisions are applicable to fraternals despite the use of other parallel terms by fraternals.
(3)
The definitions in Section 31A-1-301 and the definitions to the following terms in Section 16-6a-102 apply to fraternals:
