36th General Convention - William Penn Life

The By-Laws
other evidence of coverage issued in its place. No requested
change from the original contract shall be effective
until the date of issuance of the substitute contract, and,
upon issuance of the substitute, the original contract shall
thereupon become void.
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ARTICLE 11 - BENEFIT CERTIFICATES
When a Benefit Certificate as defined herein does not
provide otherwise or unless prohibited by law of the state
having jurisdiction, the contract, whether issued before or
after the date of these amended By-Laws, shall be governed
by the following specific provisions:
Section 1101. BENEFICIARIES
a. Every Member shall have the right to designate a
beneficiary. Except in states specifically naming or
excluding beneficiaries by statute, any person or entity
may be designated as beneficiary.
b. If a beneficiary is named contrary to the laws of
the state in which the Member resides, the designation
becomes null and void and the share of such persons
designated shall be paid to the heirs-at-law of the Member,
if any. However, said heirs must prove their claim within
two years of the death of the Member. In the event the
claim is not proven, the death benefits shall be payable to
the personal representative of the deceased Member. If the
beneficiary is a minor under the laws of the state in which
the minor beneficiary resides, the insurance proceeds
otherwise belonging to such minor beneficiary shall be
held by the Association in its Trust Account for the benefit
of such minor beneficiary until such minor beneficiary
attains the age of majority in such state, unless such state
law requires otherwise.
Section 1102. CONTINGENT BENEFICIARIES - Unless
contrary to the law of the state in which the Member
resides, contingent beneficiaries may be named. Death
benefits are payable to contingent beneficiaries in the event
the designated principal beneficiary predeceases the
Member.
Section 1103. DIVISION OF BENEFITS
a. Where more than one beneficiary is named, the
Member shall designate what amounts shall go to each
beneficiary. Otherwise, equal shares shall go to each
beneficiary.
b. In the event one of the designated beneficiaries
dies, his or her share of the benefits shall be divided
among the surviving designated beneficiaries in equal
shares.
Section 1104. PRECEDENT DEATH OF ALL
BENEFICIARIES - If none of the beneficiaries named in
the Benefit Certificate should survive the Member, or if
there are no beneficiaries named therein, then the surviving
spouse, if any, shall be deemed a contingent beneficiary
and the death benefit shall be paid to said spouse. If
there is no surviving spouse, then the surviving children
shall be deemed contingent beneficiaries and the death
benefit shall be divided equally among them. If there is no
surviving spouse and no surviving children, then the
death benefit shall be paid to the personal representative
of the deceased Member.
Section 1105. DEATH BY THE HAND OF A
BENEFICIARY - If a Member dies by the hand of a beneficiary,
unless by accident, such beneficiary, whether sane
or insane, shall not be entitled to any payment and his or
her share of the death benefit shall be paid in accordance
with the rules established for predeceased beneficiaries.
Section 1106. CHANGE OF BENEFICIARY - A Member
may change his or her beneficiaries at any time, but only
on a form prescribed and furnished by or acceptable to the
Association. Such form, properly filled out and accompanied
by the membership certificate when requested, must
be sent to the Home Office. The National Vice President-
Secretary shall endorse the name or names of the new
beneficiary or beneficiaries upon the certificate of the
Member, or may issue a substitute certificate to him or her,
subject to the same conditions as the one surrendered but
containing the name or names of the newly designated
beneficiary or beneficiaries. Such change shall take effect
as of the date of request, but without pre¬judice to the
Association by reason of any payment made under the
contract prior to the receipt of the requested change at its
Home Office. No change of beneficiary shall be allowed or
be binding which is not requested in writing as herein
provided. No change of beneficiary request shall be
considered which is received at the Home Office after the
death of the Member. No beneficiary or other person,
except an assignee, shall have any vested interest in the
benefits for any claim or loss against the Association or the
Member due to any change in beneficiary.
Section 1107. FUNERAL EXPENSES - The Association
shall have the right to pay out of the proceeds of the
membership certificate, a sum not to exceed the amount
authorized by the beneficiary of said certificate towards
funeral expenses of the deceased Member, to any person
equitably entitled thereto by reason of having incurred
burial expenses of the Member. Request for such payment
must be made prior to the payment of the claim to the
beneficiary.
Section 1108. PREMIUM PAYMENTS - Premium payments
shall be due in accordance with the provisions of
the contract and these By-Laws. The mode and time of
premium payments shall be established from time to time
by the Board of Directors. Members are obligated to pay
the minimum premium as established by the Board of
Directors, regardless of what the previously issued
certificates or policies may set forth.
Section 1109. RIGHT OF ACTION - No court action may
be started for any claim aris¬ing out of a certificate of
insurance, unless the action is started within the time
allowed by the laws of the jurisdiction in which the cause
of action arises. In the absence of any such laws, the court
William Penn Life, Special Convention Edition, December 2007