§ 58-25-45. Reserve fund; exchange of certificates.
§58‑25‑45. Reserve fund; exchange of certificates.
Any order or society enteringinto such insurance agreements shall maintain on all such contracts the reserverequired by the standard of mortality and interest adopted by the order orsociety for computing contributions as provided in G.S. 58‑25‑35,and the funds representing the benefit contributions and all accretions thereonshall be kept as separate and distinct funds, independent of the other funds ofthe order or society, and shall not be liable for nor used for the payment ofthe debts and obligations of the order or society other than the benefitsherein authorized. An order or society may provide that when a child reachesthe minimum age for initiation into membership in such order or society, anybenefit certificate issued hereunder may be surrendered for cancellation andexchanged for any other form of certificate issued by the order or society: Provided, that such surrender will not reduce the number of lives insured below500; and upon the issuance of such new certificate any reserve upon theoriginal certificate herein provided for shall be transferred to the credit ofthe new certificate. Neither the person who originally made application forbenefits on account of such child, nor the beneficiary named in such originalcertificate, nor the person who paid the contributions, shall have any vestedright in such new certificate, the free nomination of a beneficiary under thenew certificate being left to the child so admitted to benefit membership. (1987,c. 483, s. 2.)