§ 4514. Creation and maintenance of separate funds; premiums;\nassessments and other contributions of members. (a) Every authorized\nsociety shall create a separate fund or funds for the payment of all\ninsurance benefits as defined in section four thousand five hundred one\nof this article, under all certificates or other contracts issued by it\nor under any provisions of its constitution or by-laws which require\npayment of premiums or other contributions as consideration for such\nbenefits. All such funds shall be known as the insurance funds of such\nsociety. In addition to such insurance funds, any such society may\ncreate, maintain, invest, disburse and apply, separate and independent\nfrom such insurance funds, any general, expense, emergency, patriotic,\nrelief or other similar funds in accordance with its constitution and\nby-laws. Except as provided in subsection (g) hereof, all such funds of\nany such society may be invested only as permitted by paragraph two of\nsubsection (a) of section one thousand four hundred three of this\nchapter. All such funds shall be held, invested and disbursed for the\nuse and benefit of the society, and no member or beneficiary shall have\nor acquire individual rights therein, or become entitled to any\napportionment or the surrender of any part thereof, except in accordance\nwith the terms and provisions of an insurance or annuity contract made\nby such society.\n (b) In a provision of its by-laws relating to the payment of premiums\nor other required periodical contributions by insured members, every\nsuch society shall distinctly indicate the amount or portion of such\npremium or contribution which is to be used for insurance benefits, to\nbe known as the insurance contribution, and the amount or portion which\nmay be used for expenses and other purposes. The amount of such\ninsurance contributions shall be not less than that required by the\nstandard of valuation applicable to such certificate or contract in\naccordance with the provisions of this chapter. Every such insurance\ncontribution shall without any deduction be paid into the insurance\nfunds of such society.\n (c) No authorized society shall issue or deliver in this state or\nelsewhere any certificate which does not require stated periodical\npremiums or contributions at least equal to those required according to\nthe minimum valuation standards set forth in subsection (c) of section\nfour thousand five hundred seventeen of this article; nor shall such\nsociety insure in this state or elsewhere members for temporary or\npermanent disability benefits or for hospital expense or surgical and\nmedical expense unless the rates thereof are adequate upon the basis of\ntables based upon reliable experience with an interest assumption not\nhigher than three percent per annum.\n (d) The insurance funds of every such society shall consist of the\ninsurance contributions and of all interest or other income on\ninvestments in such funds and all other accretions to such funds. Such\ninsurance funds may be used for the payment of benefits under any\ninsurance or annuity contract and for the payment of expenses of\ninvestment of such funds. No part of such insurance funds shall be used\nfor any other expenses or other purposes, except that any such society\nhaving admitted assets, as shown by its last annual statement filed with\nthe superintendent, in excess of one hundred five percent of its entire\nliabilities, including its required reserves computed on a net tabular\nbasis, may transfer or allocate such excess insurance funds to the\nexpense or other funds of the society, in accordance with its\nconstitution and by-laws; but the amount so transferred in any calendar\nyear shall not exceed whichever is the smaller of (i) five percent of\nthe total contributions to the mortuary fund or funds of such society\nduring the next preceding calendar year or (ii) seventy-five per centum\nof the sum of\n (1) the savings in mortality during
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