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It omits the requirement that policyholders shall be master masons. criticism and objection are avoided on the part of any grand lodge, and enables the association to grow and develop and render a larger service to the insuring public and the policyholders and their beneficiaries. If the bill be enacted into law, the association would continue to operate for the mutual benefit of its policyholders and their beneficiaries, and be subject to the supervision, restrictions and limitations of the laws of the District of Columbia and of the various States relating to similar insurance companies. The association is seeking no special privilege whatever and the proposed amendments do not propose any preferential consideration whatsoever to the association.

Section 1 proposes to change the name of the association to “Acacia Mutual Life Insurance Co."

Section 2 enlarges the powers of the company to writing life insurance and risks of all kinds, a power better suited to modern practices.

Section 3 makes formal changes in the procedure of the business arrangements of the company in conformity with modern usage.

Section 4 is unchanged.

Section 5 preserves existing rights and is believed to be a desirable feature. The commissioners recommend that the bill be amended as follows:

Section 1: Line 3, after the word "of" strike out the word "an" and insert the word "the".

Line 5, strike out the word "be" at the end of the line and insert the word "is". Line 9, after the word "organization" strike out the words "as amended". Section 2: Strike out the word "That"; insert the words "as amended" after the word "Act"; strike out the word "be" and insert in lieu thereof the word "are".

Add quotation mark at end of line 18.

Section 3: Add quotation mark at end of section.

Line 19, strike out the word "That”.

Section 4: Add quotation marks at end of section; strike out the word "That" in line 17, page 3.

Section 5: Strike out the word "That" in line 1, page 4.

Add a new section to the bill to read as follows:

"SEC. 3. Such act, as amended, is further amended by adding at the end thereof a section as follows:

"SEC. 6. The right to alter, amend, or repeal this Act is hereby expressly reserved."

A copy of the bill amended as suggested is hereby transmitted.

With these amendments he commissioners recommend favorable action on the bill.

Very truly yours,

L. H. REICHELDERFER,

President Board of Commissioners of the District of Columbia.

ACACIA MUTUAL LIFE ASSOCIATION,
Washington, D. C., January 8, 1932.

Hon. ARTHUR Capper,

United States Senator, Washington, D. C.

DEAR SIR: The Acacia Mutual Life Association was organized in 1866, and because at that time there were no laws in the District of Columbia under which it could be incorporated it was chartered by special act of Congress in 1869 as a fraternal benefit society under the name of the Masonic Mutual Relief Association, later changed to Masonic Mutual Life Association.

At that time Masonry was poor and struggling. The aim and purpose in the organization of this association was to aid the charitable work of the Masonic fraternity in the District of Columbia, and do away, if possible, with the "hat upon the altar" at the meetings. Every Master Mason in the District of Columbia, whether sick or well, old or young, was eligible for membership. Every member paid $1.10 upon the death of a fellow member, and the widow received as many dollars as there were members in good standing on the books of the association, the 10 cents going to the expense fund. Even then it was so economically conducted that a number of assessments were paid from the expense fund. The certificates of membership issued provided for no definite amount payable upon the death of the members. As life insurance became better understood it was apparent that to satisfactorily and fully serve the needs and requirements of

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MEMORANDUM ON THE PROPOSED AMENDMENT TO THE CHARTER OF THE ACACIA MUTUAL LIFE ASSOCIATION

The proposed amendment is designed to change the name to correspond with the general usage with regard to mutual life insurance companies transacting the same kind of business as that transacted by this organization, and to define and extend the powers of this organization to correspond with those exercised by other mutual legal reserve life insurance companies transacting business throughout the United States.

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The introductory paragraph proposes to change the name from "Acacia Mutual Life Association" to "Acacia Mutual Life Insurance Company." The words "insurance company are self-explanatory and are a part of the names of nearly all legal reserve life insurance companies in the United States. They also correctly express the business of the organization.

In conformity with the change in name, the word "association" is changed to "company" throughout the charter.

In conformity also with the usage of mutual legal reserve life insurance companies, the word "member" is changed to "policyholder" wherever it appears in the charter.

Section 2: It is proposed that that portion of this section reading "That membership in this association shall be limited to master masons, and that the business and objects of the association shall be to provide and maintain a fund for the benefit of the member, his family, widow, orphans, heirs, assignees, legatees, distributees, dependents, or other beneficiaries, and for this purpose it shall and may be lawful for the association" be stricken out, and the following words inserted in lieu thereof "The company shall have the power."

This amendment omits the requirement that policyholders shall be master masons. It avoids the objection in some masonic jurisdictions to business organizations having a purely masonic membership. It also enables this company to develop and grow freely and be of larger service to its policyholders and their families. The provision listing the beneficiaries was inserted in the charter at the time this organization operated under the fraternal laws of the different States. It has now become obsolete under the present licensing of this company as a legal reserve life insurance company in the different States pursuant to which it pays taxes and is in other respects treated the same as any other life insurance company. No such limitation is provided in the laws respecting legal reserve life insurance companies.

After the word "annuities," it is proposed to insert a semicolon and the words "to make insurance against injury, disablement, or death resulting from accident, and against disablement resulting from sickness and every insurance appertaining thereto; to make and accept reinsurance of any risks."

This is the wording used in the State statutes quite generally to describe these powers as given to life insurance companies. Life insurance companies generally are authorized to issue these various kinds of insurance which are necessary for the full development of the business. This merely grants the power to offer these benefits to the policyholders.

It is proposed to strike out the words "or safety of its members or" and insert in lieu thereof the words "and welfare of its policyholders, and". The word "welfare" more appropriately expresses the service or aid intended.

It is further proposed to strike out the following words appearing in the above proviso which reads as follows: "and that in the exercise of the powers hereinbefore enumerated it shall be subject to the supervision imposed by the laws of the District of Columbia relating to mutual life insurance companies" and in lieu thereof to insert the following: "and as to its business transacted in the District of Columbia or in any State or other jurisdiction in which it is licensed shall be subject to all laws of such District, State, or other jurisdiction governing similar mutual insurance companies."

The present wording is subject to question as granting exclusive supervision to the authorities of the District of Columbia. The fact is that this organization, the same as any other life insurance company, must, as to its business transacted in any State, submit to the supervision of such State. This amendment is introduced to clearly place this organization on the same footing in this respect as companies of other States.

Section 3. It is proposed to insert in the third sentence of this section, before the word "directors," the words "board of."

The action referred to must be taken by the directors acting as a board.

its members, policies would have to be issued for a definite amount, and adequate reserves set up to guarantee the payment of every policy at maturity. In 1903, at the request of its board of directors, Congress amended its charter so that the association retained its status as a fraternal society and at the same time enabled it to provide a definite amount in its policies by requiring it to maintain the legal reserve on its policies the same as an old-line company.

While under this amendment the association's business was reasonably prosperous, it ultimately became evident that the association could better serve its members by qualifying as a mutual old-line legal reserve life insurance company, and in 1922, at the request of its board of directors, Congress amended its charter accordingly.

Since that time the association has been licensed as a mutual old-line company in 46 States, the District of Columbia, and the Canal Zone, pursuant to which it now pays the same taxes and is in all other respects treated the same as any other mutual old-line life insurance company. When the association developed its service in the various States it found some opposition to the word "masonic" in its name, in that it was felt that a company using the word "masonic" in its name, and limiting its policyholders to masons, might be mistaken as having some connection with the masonic fraternity. In deference to this feeling, and to avoid any possible criticism and provide against misunderstanding, the board of directors at the same time as the above change was made asked Congress to change its name to Acacia Mutual Life Association-the word "Acacia" being selected because it signifies perpetuity-everlasting-unfailing, a name that best typifies the character of a mutual old-line life insurance company.

Under its charter as an old-line company the business of the association has developed and prospered. It now has over 150,000 policies in force, representing $365,000,000 of insurance, and assets of over $45,000,000. Its business has been developed without any capital stock or guaranty fund of any kind. It has met all its obligations, set aside the necessary reserve of over $40,000,000 on its policies, returned over a million dollars in dividends to its members, in addition to which it has accumulated a surplus of over one and a half million dollars. Since its reorganization as a mutual old-line legal reserve life insurance company it has paid to beneficiaries $11,088,927 and has paid to its policyholders $11,749,877 additional. With this record it is now rated among the large old-line companies in the United States.

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In recent years sentiment has developed in some of the grand lodges that it is not to the best interests of the fraternity to permit any company to limit its membership or business to members of the masonic fraternity, in that its representatives might represent that such company was sponsored by the masonic fraternity and thereby use the faith and credit of masonry in the promotion of its business. This feeling is so steadily increasing that one grand lodge passed a by-law making it a masonic offense for any mason in its jurisdiction to represent or handle the business of such a company. If such action is taken by other grand lodges, it is obvious that it would be very detrimental to the welfare of the policyholders and the future growth and progress of this association. amendment that is proposed omits the requirement that policyholders shall be master masons, and thereby avoids criticism or objection on the part of any grand lodge, and enables the association to grow and develop, and render a larger service to its policyholders and their beneficiaries. If the bill is enacted into law the association would continue to operate for the mutual benefit, of its policyholders and their beneficiaries without profit, and be subject to the supervision, restrictions, and limitations of the laws of the various States relating to similar insurance companies. The proposed amendment confers no special privilege not granted by law to similar companies. The company still would have to comply with the insurance laws of the different States, Territories, or districts in which it may hereafter conduct its business, just as any other similar insurance company. An examination of the bill will disclose that proper provisions are included so as to insure ample protection to the policyholders, and a safeguarding provision expressly stipulates that nothing contained in the bill shall be construed to affect or impair in any manner whatsoever any vested right or interest existing in or under any contract of the association.

For your convenience in considering this matter, a memorandum of the proposed amendment is attached hereto, with a brief reason for each proposed change. Very truly yours, WILLIAM MONTGOMERY, President.

MEMORANDUM ON THE PROPOSED AMENDMENT TO THE CHARTER OF THE ACACIA MUTUAL LIFE ASSOCIATION

The proposed amendment is designed to change the name to correspond with the general usage with regard to mutual life insurance companies transacting the same kind of business as that transacted by this organization, and to define and extend the powers of this organization to correspond with those exercised by other mutual legal reserve life insurance companies transacting business throughout the United States.

The introductory paragraph proposes to change the name from "Acacia Mutual Life Association" to "Acacia Mutual Life Insurance Company.'

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The words "insurance company are self-explanatory and are a part of the names of nearly all legal reserve life insurance companies in the United States. They also correctly express the business of the organization.

In conformity with the change in name, the word "association" is changed to "company" throughout the charter.

In conformity also with the usage of mutual legal reserve life insurance companies, the word "member" is changed to "policyholder" wherever it appears in the charter.

Section 2: It is proposed that that portion of this section reading "That membership in this association shall be limited to master masons, and that the business and objects of the association shall be to provide and maintain a fund for the benefit of the member, his family, widow, orphans, heirs, assignees, legatees, distributees, dependents, or other beneficiaries, and for this purpose it shall and may be lawful for the association" be stricken out, and the following words inserted in lieu thereof "The company shall have the power."

This amendment omits the requirement that policyholders shall be master masons. It avoids the objection in some masonic jurisdictions to business organizations having a purely masonic membership. It also enables this company to develop and grow freely and be of larger service to its policyholders and their families. The provision listing the beneficiaries was inserted in the charter at the time this organization operated under the fraternal laws of the different States. It has now become obsolete under the present licensing of this company as a legal reserve life insurance company in the different States pursuant to which it pays taxes and is in other respects treated the same as any other life insurance company. No such limitation is provided in the laws respecting legal reserve life insurance companies.

After the word "annuities," it is proposed to insert a semicolon and the words "to make insurance against injury, disablement, or death resulting from accident, and against disablement resulting from sickness and every insurance appertaining thereto; to make and accept reinsurance of any risks."

This is the wording used in the State statutes quite generally to describe these powers as given to life insurance companies. Life insurance companies generally are authorized to issue these various kinds of insurance which are necessary for the full development of the business. This merely grants the power to offer these benefits to the policyholders.

It is proposed to strike out the words "or safety of its members or" and insert in lieu thereof the words "and welfare of its policyholders, and". The word "welfare" more appropriately expresses the service or aid intended.

It is further proposed to strike out the following words appearing in the above proviso which reads as follows: "and that in the exercise of the powers hereinbefore enumerated it shall be subject to the supervision imposed by the laws of the District of Columbia relating to mutual life insurance companies" and in lieu thereof to insert the following: "and as to its business transacted in the District of Columbia or in any State or other jurisdiction in which it is licensed shall be subject to all laws of such District, State, or other jurisdiction governing similar mutual insurance companies."

The present wording is subject to question as granting exclusive supervision to the authorities of the District of Columbia. The fact is that this organization, the same as any other life insurance company, must, as to its business transacted in any State, submit to the supervision of such State. This amendment is introduced to clearly place this organization on the same footing in this respect as companies of other States.

Section 3. It is proposed to insert in the third sentence of this section, before the word "directors," the words "board of."

The action referred to must be taken by the directors acting as a board.

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