IAL • FRATERNAL • FOUNDA FINANC TION

UNITED Sons of Norway IN HERITAGE 2014 international convention Jacksonville, Florida2012 |INTERNA www.sonsofnorway2014.comTIONAL CONVENTION SONS OF NORWAY • FARGO, ND

Bringing Good People and Great Ideas Together

2014 International Convention Report Book Join us for the Sons of Norway: United reception!

Join your fellow delegates and guests for an evening of fun at the Sons of Norway: United reception in the atrium of the Omni hotel on Friday, August 22nd from 5:30-7pm!

Following the group photo, you are invited to a special evening reception for delegates and registered guests, where you will be treated to hors d’oeuvres and drinks. In addition, all attendees will have the opportunity to meet Inter- national Board members and Headquarters staff and discuss all the great work that’s being done to strengthen Sons of Norway. IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention Table of Contents IN E Jacksonville, Florida | www.sonsofnorway2014.com

2014 Biennial Convention Report Book Our Mission Agenda ...... 2 International President 9 The mission of Sons of Norway is International Board Greeting ...... 13 to promote and to preserve the heritage and culture of Norway, Past Conventions ...... 14 to celebrate our relationship with Chief Executive Officer ...... 15 other Nordic Countries, Sons of Norway Headquarters Greeting ...... 16 and provide quality insurance Fraternal Department Greeting ...... 23 and financial Canadian Foundation 25 products to our members. Ski for Light ...... 26 Sons of Norway Financial Benefits Counselors 27 District Fraternal Funds Report ...... 28 Misjon Statement of Financial Position ...... 45 Membership in Sons of Norway 46 Sons of Norways misjon er å Independent Auditors Report ...... 52 fremme og ivareta norske kultur- Statutory Statement of Admitted Assets, tradisjoner, å feire vårt forhold til Liabilities and Unassigned Surplus ...... 54 andre nordiske land og samtidig Statutory Statements of Operations ...... 56 tilby de beste Statutory Statement of Changes in Surplus 57 forsikrings- og finansprodukter til Statutory Statements of Cash Flows ...... 58 våre medlemmer. Notes to Statutory Financial Statements ...... 59 Annual Budget by Line of Business ...... 79 Statement of Operations by Line of Business ...... 80 Board and Staff Expenses ...... 82 Sons of Norway Investment Portfolio 83 Glossary of Accounting Terms ...... 84 Sons of Norway Foundation Statement of Financial Position 85 Sons of Norway Foundation Statement of Activities 87 2012 International Convention Action Items 88 Convention Delegates ...... 90 Consent Agenda ...... 92 Convention Committees ...... 93 International Lodge Meeting Rules 2014 ...... 94 Proposed Law Changes 96 Proposed Resolutions ...... 117

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Monday, August 18th

8:30 a.m. – 9:00 a.m. International Board meeting Convention Committees meet with Board for instruction (Tallahassee)

9:00 a.m. – 12:00 p.m. Board meeting (Tallahassee)

9:00 a.m. – 12:00 p.m. Committees convene Law (Pensacola A) Resolutions (Pensacola B) Finance/Investments (Pensacola C) Reports/Fraternal (Jacksonville)

12:00 p.m. – 1:30 p.m. Lunch Box lunches in meeting rooms

1:30 p.m. – 4:30 p.m. Board Meeting (Tallahassee)

1:30 p.m. – 4:30 p.m. Committees Meet Law (Pensacola A) Resolutions (Pensacola B) Finance/Investments (Pensacola C) Reports/Fraternal (Jacksonville)

5:30 p.m. – 9:00 p.m. Thank You Event (River Club)

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Tuesday, August 19th

8:30 a.m. – 12:00 p.m. Board Meeting (Tallahassee)

8:30 a.m. – 12:00 p.m. Committees Meet Law (Pensacola A) Resolutions (Pensacola B) Finance/Investments (Pensacola C) Reports/Fraternal (Jacksonville)

12:00 p.m. – 2:00 p.m. Lunch – on your own District Presidents Luncheon (Omni A)

2:00 p.m. – 4:30 p.m. Board Meeting (Tallahassee)

2:00 p.m. – 4:30 p.m. Committees Meet Law (Pensacola A) Resolutions (Pensacola B) Finance/Investments (Pensacola C) Reports/Fraternal (Jacksonville)

3:00 p.m. – 7:00 p.m. Registration for Innovative Leadership Conference (Prefunction area)

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Wednesday, August 20th

7:00 a.m. – 10:45 a.m. Registration for Innovative Leadership Conference (Prefunction area)

8:30 a.m. – 10:00 a.m. Innovative Leadership Conference (Florida Ballroom A, B & C)

10:00 a.m. – 10:15 a.m. Coffee Break

10:15 a.m. – 12:00 p.m. Innovative Leadership Conference (Florida Ballroom A, B & C)

12:00 p.m. – 1:15 p.m. Lunch (Florida Ballroom D)

1:15 p.m. – 2:45 p.m. Innovative Leadership Conference (Florida Ballroom A, B & C)

2:45 p.m. – 3:00 p.m. Coffee Break

3:00 p.m. – 5:00 p.m. Innovative Leadership Conference (Florida Ballroom A, B & C)

5:00 p.m. - 9:00 p.m. Optional Lodge Welcome Event (Jacksonville Landing)

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Thursday, August 21st

9:00 a.m. – 1:30 p.m. Optional Delegate Excursion to St. Augustine

10:00 a.m. – 4:00 p.m. Registration for Lodge Meeting (Prefunction area)

12:00 p.m. – 4:00 p.m. Folk Art Registration (Omni A & B)

2:00 p.m. – 3:00 p.m. First-time Delegate Workshop (Florida Ballroom A, B & C)

4:00 p.m. – 6:00 p.m. Opening Ceremonies (Florida Ballroom A, B & C)

6:00 p.m. – 9:30 p.m. President’s Reception (Cummer Museum)

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Friday, August 22nd

7:00 a.m. – 12:00 p.m. Lodge Meeting Registration (Prefunction Area)

7:45 a.m. – 8:45 a.m. Caucus (Pensacola A, B, C & Jacksonville)

8:00 a.m. – 12:00 p.m. Folk Art Judging (Omni A & B)

9:00 a.m. – 10:30 a.m. Delegate Assembly (Florida Ballroom A, B & C)

10:30 a.m. – 10:45 a.m. Coffee Break

10:45 a.m. – 12:00 p.m. Delegate Assembly (Florida Ballroom A, B & C)

12:00 p.m. – 8:30 p.m. Folk Art Competition and Exhibition (Omni A & B)

12:00 p.m. – 1:00 p.m. Lunch (Florida Ballroom D)

1:00 p.m. – 3:00 p.m. Delegate Assembly (Florida Ballroom A, B & C)

3:00 p.m. – 3:15 p.m. Coffee Break

3:15 p.m. – 5:00 p.m. Delegate Assembly (Florida Ballroom A, B & C)

5:00 p.m. – 5:30 p.m. Group Photo (Grand Staircase)

5:30 p.m. – 7:00 p.m. Sons of Norway: United Reception (Atrium)

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Saturday, August 23rd

8:00 a.m. – 1:00 p.m. Folk Art Competition & Exhibition (Omni A & B)

8:00 a.m. – 10:30 a.m. Delegate Assembly (Florida Ballroom A, B & C)

10:30 a.m. – 10:45 a.m. Coffee Break

10:45 a.m. – 12:00 p.m. Delegate Assembly (Florida Ballroom A, B & C)

12:00 p.m. – 1:00 p.m. Lunch (Florida Ballroom D)

1:00 p.m. – 4:30 p.m. Delegate Assembly (Florida Ballroom A, B & C)

1:00 p.m. – 3:00 p.m. Folk Art Tear Down/Artwork Pick Up (Omni A & B)

5:30 p.m. – 6:30 p.m. Installation of Officers(Omni A & B)

6:30 p.m. – 12:00 a.m. Banquet and Dance (Florida Ballroom A, B, C & D)

Sunday, August 24th

8:30 a.m. – 10:30 a.m. Board Meeting

www.sonsofnorway.com 7 Get inspired! Explore travel packages & pre-order our 2015 brochure at www.bortonoverseas.com

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offerings that help support the entire organization. These are all important issues and in the pages that follow I will report on their status.

Strategic Planning The last two years have been a very productive time for the Board of Directors with regards to strategic planning. As I’m sure you’ve heard before, this is a central element of strong corporate governance and an important topic for Sons of Norway. As part of our commitment to this, the board conducted its first self evaluation in the fall of 2012. This was an enlightening and informative process for everyone involved.

The primary outcome of that process was the universal agreement that we needed to develop a strategic planning process. One that was practical, Marit Kristiansen implementable and would provide a platform for identifying the desired future state for Sons of It is a great honor to welcome the delegates and Norway. More importantly, this process would help guests to the 2014 International Convention. us analyze the gap between our current state and our Together, during this four-day event, we will learn end goal, while determining a way to get from here about leadership, conduct the business of the to there. organization and elect new officers. In addition, our hosts from the Gateway to Florida Lodge 3-541 have some wonderful events planned that will introduce It is a great honor to us to the city of Jacksonville, while giving delegates the opportunity to reconnect with old friends. This is welcome the delegates going to be a great event and I look forward to seeing and guests to the 2014 each and every delegate over the course of the con- vention, especially those of you who are attending International Convention. for the first time.

The past biennium has been an especially busy period In April of last year the board met with Sons of for Sons of Norway. From the Board’s perspective Norway senior staff to develop four core strategic we have devoted ourselves to a number of topics, initiatives for the organization. including strategic planning, governance issues and spreading the message about the importance of 1. Building a better understanding across the actively participating in Sons of Norway’s insurance organization of the critical nature of Sons of www.sonsofnorway.com 9 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E International President Jacksonville, Florida | www.sonsofnorway2014.com

Norway’s financial purpose in service to the other We feel very confident that these initiatives and two areas of operation: fraternal and foundation metrics for success will help Sons of Norway grow in the future and be an even stronger Fraternal Life 2. Building a stronger leadership pipeline, to enable Insurance company than it ever has been. In the better stewardship of Sons of Norway’s purpose meantime it is my hope that, in now learning about from generation to generation these strategic initiatives, you will ask yourself the following important questions: 3. Revisioning lodge programs and member engagement to attract younger members and “What can I do to help achieve success for the their families for the organization’s sustainability organization?”

4. Building a more relevant, user friendly member- “How can I be part of the solution and help Sons of ship structure with effective marketing strategies Norway grow?” and a robust set of financial products “What can my lodge do to help further these For each of these strategic initiatives a committee has initiatives now and in the future?” been assembled to work towards their attainment. Each committee is comprised of board members, In answering these questions, you may find a key senior staff, district presidents and other individuals role you can play or a new solution to the challenges with an expertise or skillset that is uniquely beneficial we face. In either case, by considering the questions to the goals of the initiatives. above, I am certain that we all have a role to play.

In order to track progress, we have created a number of indicators of success, which the board will monitor. Financial-Fraternal-Foundation Over the past two years the International Board and These include: Headquarters Staff have undertaken a new initiative: • Increased number of insurance members educating members on the interdependent relation- ship that exists between our insurance, fraternal and • Increased total insurance premiums foundation operations. It would not be hyperbole to go so far as to say that this relationship is the very • Increased number of insurance members in bedrock upon which every member’s 360 degree local lodges experience is built.

• Reduce number of open top 6 officer positions This relationship manifests itself in a number of ways that contribute to the member-experience. • Ensure that 75% of lodge/district officers are For example, over the past biennium more than $2 trained in the next biennium million of insurance revenues have been used to support fraternal member benefits, like Viking magazine and the Cultural Skills program. Another

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good example is the dedicated insurance members who want to leave a legacy by naming the Foundation As a $354 million Fraternal as a beneficiary of their life insurance policies. The money provided through this channel funds Life Insurance company it is scholarship opportunities and ensures that future imperitive that we continue generations of Sons of Norway members can achieve their educational goals. to develop a modern model

Because this interdependent relationship has a direct of corporate governance. and positive impact on communities, it lies at the very heart of what it means to be a Fraternal Life Insurance company. Knowing this, I hope you will join me in nominating procedure. I firmly believe this is a step being an active participant in all three areas of Sons in the right direction because several states have now of Norway during the next biennium. passed laws requiring officers and director candidates be qualified. Looking forward, I hope that the committee, District Presidents and the Board all Governance continue to work together as a team toward common Over the past biennium the topic of good corpo- goals that benefit the entire organization. rate governance has continued to be a significant point of discussion among the Board of Directors and Headquarters Staff. As a $354 million Fraternal First Time Delegate Workshop Life Insurance company it is imperative that we Sons of Norway Headquarters Staff has conducted continue to develop a modern model of corporate delegate research over the past few international governance. CEO Eivind Heiberg will present a more conventions and we are seeing a trend of 25-30 in-depth discussion on this issue in his report, but percent of each delegation being first-time attend- in the meantime I will give you a short recap of our ees. With that in mind I thought it appropriate to work on this matter. implement a new event at this year’s convention; one that has been tried successfully at some district Because of continued insurance regulations, Sons of conventions in the past. So, on August 21st, I will Norway has begun to seriously address governance. be hosting a workshop for first-time international In that regard, I appointed a Governance Committee, convention delegates. chaired by International Secretary Jon Tehven. The committee was directed to begin looking at the pros The event will be open to all delegates, but the infor- and cons of changing our form of governance from mation being presented will be especially valuable to a Convention model to a Board model. While this those who have never been to an international con- is an ongoing discussion for Sons of Norway, one of vention before. I will lead the workshop, discuss the the tangible results is a joint decision by the com- format of the convention, give some insight into what mittee, District Presidents Council and the Board of delegates should expect and what will be expected of Directors to propose changes to the them. Then I will close the session with an open Q&A

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on a particular issue, consider how it will impact As we come to the end of this districts that are larger or smaller than yours, or lodges in isolated communities or other countries. biennium, I want to thank Also, consider the financial impact of your decision all the members and lodges —what will it cost to implement and maintain? How will this cost be offset? who have invited me into Last, I ask that every delegate come to Jacksonville their communities. prepared to be engaged throughout the entire con- vention. There will be a lot of fun and exciting events being hosted by the lodge, but please remember that session to address any questions first-time delegates we are also here to conduct the business of the inter- may have. If this will be your first time at an interna- national lodge. So, please be ready to play an active tional convention, I strongly encourage you to attend. role in all the business meetings as well. This will be held on Thursday at 2:00 p.m. in the Florida Ballroom. In doing these three things, I know we are going to have a wonderful and productive convention. Expectations for Delegates Before I close my report I want to take a moment Closing to discuss a few expectations that the board and I As we come to the end of this biennium, I want to have for you, our dedicated delegates to the 2014 thank all the members and lodges who have invited International Convention. me into their communities. Attending lodge anniver- saries has been a real highlight for me, because they First, as a member of this 119-year-old organiza- celebrate the perseverance and dedication of the tion’s highest governing body it is imperative that many members who contributed so much to keep you read the entire report book prior to arriving their local lodge vibrant and relevant for the next in Jacksonville. This will ensure that you are pre- generation. I also want to thank the Board of Directors, pared to discuss and vote on the issues that are being District Presidents, committees and Headquarters brought before the delegation. Be especially sure to staff for their support and great work over the past familiarize yourself with the reports and resolutions biennium. included in this book as well as the action items from the last International Convention. Fraternally,

Next, because you will be addressing issues that could potentially have wide-ranging effects, it’s important for you to consider how your vote will Marit Kristiansen affect the organization as a whole; not just your International President district or home lodge. When deciding how to vote

12 www.sonsofnorway .com Greetings and Congratulations! from the International Board

On behalf of the International Board of Directors, it’s my honor to extend our warmest greetings to the delegates of the 2014 International Convention. I am pleased to report that during the past biennium the combined efforts of Sons of Norway’s financial, fraternal and foundation operations are helping our organization grow.

Also, thanks to the efforts of our members and districts, Sons of Norway continues to be a valued partner of communities throughout North America and Norway. Thanks to everyone’s contributions, our beloved organization is widely recognized for its great benefits, financial products, and our strong reputation for being a community of giving. Through the efforts of our members and local lodges, Sons of Norway is making a real and lasting impact on the communities in which we reside.

In closing, it has been an honor to serve as International President and I thank you for the privilege and the warm hospitality extended to me this past biennium. I also want to congratulate the host committee for their efforts and wish you the very best for the 2014 International Convention.

Fraternally,

Marit Kristiansen International President

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May 29, 1900 Minneapolis, MN August 11–15, 1948 Spokane, WA January 24, 1901 (1st session) Minneapolis, MN August 24–26, 1950 Brooklyn, NY March 12, 1901 (2nd, 3rd) Minneapolis, MN August 21–23, 1952 Minneapolis, MN March 17, 1901 (4th) Minneapolis, MN August 19–21, 1954 Seattle, WA March 19–21, 1901 (5th, 6th) Minneapolis, MN August 23–25, 1956 Duluth, MN January 26, 1902 Minneapolis, MN August 14–18, 1958 Chicago, IL January 25, 1903 Minneapolis, MN August 10–13, 1960 Vancouver, BC, Canada January 24, 1904 Minneapolis, MN August 23–25, 1962 Minneapolis, MN January 30–31, 1905 Duluth, MN August 20–22, 1964 New York, NY June 30, July 1–2, 1906 Fargo, ND August 18–20, 1966 Palo Alto, CA June 28–29, 1907 Chippewa Falls, WI August 22–24, 1968 Saint Paul, MN June 25–27, 1908 Saint Paul, MN August 19–21, 1970 Portland, OR June 24–26, 1909 Superior, WI August 26–September 2, 1972 Miami, FL January 17, 1910 (extra convention) Minneapolis, MN August 22–25, 1974 Banff, AB, Canada July 7–9, 1910 Grand Forks, ND August 25–28, 1976 Alexandria, MN July 10–14, 1912 Fargo, ND August 23–26, 1978 Fargo, ND July 17–18, 1914 Minneapolis, MN September 3–6, 1980 North Hollywood, CA July 14–15, 1916 Duluth, MN August 25–28, 1982 Madison, WI July 18–19, 1918 Great Falls, MT August 27–September 1, 1984 Vancouver, BC, Canada July 15–16, 1920 Madison, WI August 19–23, 1986 Philadelphia, PA July 21–22, 1922 Grand Forks, ND August 23–27, 1988 Rapid City, SD July 21–22, 1924 Racine, WI August 14–18, 1990 Spokane, WA July 16–17, 1926 Minneapolis, MN August 16–22, 1992 Lillehammer, Norway July 20–21, 1928 Sioux Falls, SD August 10–14, 1994 Minneapolis, MN June 18–19, 1930 Duluth, MN August 21–24, 1996 Minot, ND August 11–13, 1932 Winnipeg, MB, Canada August 12–15, 1998 Anaheim, CA August 16–18, 1934 Saint Paul, MN August 9–12, 2000 Stavanger, Norway August 6–8, 1936 Seattle, WA August 14–17, 2002 Madison, WI August 18–20, 1938 Eau Claire, WI August 18–22, 2004 Washington, D.C. June 20–22, 1940 Brooklyn, NY August 14–17, 2006 Vancouver, BC, Canada August 6–8, 1942 Chicago, IL August 27–30, 2008 San Diego, CA August 10–12, 1944 Minneapolis, MN August 28–September 1, 2010 Coeur d’Alene, ID August 7–10, 1946 San Francisco, CA August 22–25, 2012 Fargo, ND

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This was done based on feedback received from members who felt that, in the past, there was too much information to digest. So, in order to reduce the overall number of reports, while still providing delegates with a complete, high-level overview, I have received input from all Senior Staff for the report that follows. I would appreciate any thoughts or input you might have on this new approach.

Financial Overview In my last report to the delegates I discussed how Sons of Norway had strengthened its financial posi- tion following the global financial crisis. I’m pleased to report that as of year-end 2013 we have continued to maintain or strengthen our financial position in a Eivind Heiberg number of areas.

Welcome to the 2014 Sons of Norway International First, we saw respectable revenues over the past Convention in Jacksonville, Florida! I know the host biennium taking in $41.4 million in 2012 and $40.5 lodge, Gateway to Florida 3-541, has been hard at million in 2013. While these numbers are a bit lower work developing a lot of fun activities for the time we than the past biennium, I have confidence that we will spend together. Along with the planning team at are taking the correct steps to ensure the long-term Sons of Norway Headquarters, the Host Committee viability of the organization, by focusing more efforts has put together a convention that will be both on life insurance sales. exciting and educational.

As the CEO of this 119-year-old Fraternal Life Insur- ance company, it is both an honor and important As the CEO of this 119-year- privilege to report to you on the state of the organi- old Fraternal Life Insurance zation. It is a responsibility I take very seriously and with the information that follows, I hope you will Company, it is both an gain a meaningful understanding of Sons of Norway’s operations over the past biennium. honor and important duty to report to you on the As you may notice, we have made a slight change to this year’s Report Book. Rather than providing eight state of the organization. separate reports from individual departments, the information has been condensed into a single report.

www.sonsofnorway.com 15 Best Wishes! from Sons of Norway Headquarters Staff

Foundation, Marketing and Executive Back Row (L to R): Liz Reque, Eivind Heiberg, Cindy Olson, Nancy Tschumperlin; Front Row (L to R): Barb Larson, Pat Forchay, Betty Muckle; not pictured: Ken Thul, Len Carlson

Underwriting and Customer Service Back Row (L to R): Katie Baratto, Georgia Wilson, Colleen Grill; Front Row (L to R): Jessica Betzel, Diane Gill, Rich Cermak; not pictured: Janna Dethmers

IT and Maintenance Back Row (L to R): Mike Scott, Steve Homa, Rob Little, Jack Hennen; Front Row (L to R): Tom Gibbs, Rachele Hockert, Kevin Kruse

Accounting and Actuary Back Row (L to R): Jennifer Wermager, Carol Moore, Jane Montgomery, Vicki Sivula; Front Row (L to R): Diane Hamernik, Dean Nelson, Dean Stiller

Fraternal Back Row (L to R): Linda Nelson, Sherry Gorse, Joe Eggers, Linda Pederson, Mike Brandjord, Mary Henkels, Erik Evans; Front Row (L to R): Melissa Johnson, Bonny Campeau, Anna Stoltenberg, Jana Velo

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Next, we have seen a significant increase in our surplus, from $7.7 million at the end of the last bien- We have seen a significant nium to $12.5 million at the end of 2013. This is an increase of 63 percent and is due to a combination of increase in our surplus, from our careful, purposeful planning, as well as the $7.7 million at the end of Minnesota Department of Commerce allowing Sons of Norway to include a portion of the value of the the last biennium to $12.5 Sons of Norway Headquarters building in our total surplus holdings. This is an important number for million at the end of 2013. the whole organization because the surplus acts as a buffer during times of volatility, such as the global nesota (the state in which Sons of Norway is domiciled) financial crisis of 2006-08. the minimum acceptable level for RBC is 250%. At year- end 2012 our RBC ratio was 276%. As of 12/31/13 our What’s more, the past biennium has also seen a RBC ratio improved to 458%. This significant increase steady increase in our assets. In 2012 we had assets was due to the following factors: of $337 million, which then grew to $353 million by year end 2013. This is a 9 percent increase over the • Valuation allowance by the MN Department of previous biennium’s report and means that we have Commerce an even stronger financial position than we had the • Reduction of risk in our bond portfolio last time I shared our results with you. • Profitability of our operations

Also, we have experienced a steady increase in our All of these results, combined with our conservative net gains from operations. In 2012 we increased to investment policy and management of overall $757,020 and then in 2013 they reached $960,251. expenses means that Sons of Norway continues to This means our net gains have nearly doubled in have a strong financial footing. For more detailed the two years since my last report and I think this is information about how the organization is doing, fantastic news because it contributes to our overall financially speaking, I invite you to review the Eide financial strength. Bailly Independent Auditor’s Report starting on page 52 as well as the financial statement by line of busi- Recently, state regulators have begun measuring the ness which opens on page 79. financial health of Fraternal Life Insurance companies according to what is called the Risk Based Capital model, or RBC. Essentially, this is used as a tool to measure a Strategic Planning company’s solvency and to ensure that the company As International President Kristiansen discussed in her can continue to meet its financial obligations well into report, the Board of Directors, Senior Staff, and the future. When the RBC level of a company falls District Presidents have been heavily invested in the below a certain level, the company is subject to review Strategic Planning process. I commend everyone’s by the state insurance department until the financial efforts because this is an important undertaking that health of the company improves. In the state of Min- will play a major role in the success of Sons of Norway.

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I believe that by focusing our attention on the four qualifications prior to the election. strategic initiatives outlined in President Kristiansen’s report, the organization as a whole will be able to It’s important to be aware of this for two reasons. First, take meaningful steps forward. I would even go so it shows that state regulators are more aware of Frater- far as to say that deepening the understanding of nal Life Insurance companies and their widely varying the importance of insurance operations, building a forms of governance, as well as their desire to make stronger leadership pipeline, revisioning lodge pro- governance more consistent throughout the industry. gramming and developing a more user-friendly mem- Second, we believe that this amendment will be used bership structure will be the cornerstones of future as a model for adoption in other states in the months success for Sons of Norway and the foundation upon and years to come. This means that fraternal gover- which we can build and grow. nance will see increasing oversight and regulations.

Because these issues are so critical to the organiza- With this in mind, I’m pleased to report that Sons of tion’s future, I want to echo President Kristiansen and Norway has been proactive in addressing many of ask you to consider “What can my lodge or I do to be the items that are outlined in the bill, which puts us part of the solution?” If you have any thoughts on ahead of the curve compared to other Fraternal Life these initiatives I encourage you to share them with Insurance companies. The Sons of Norway Board of me, be it in Jacksonville, or afterwards. Directors has been conducting board training for a number of years, and self-assessments for the past couple of years. What’s more, six of our districts Governance have passed a resolution acknowledging a need for As you are probably aware, good corporate gover- nomination committees, which is directly related nance has been a widely discussed issue for a few to providing members with candidate qualifications years now and recently there have been some major prior to elections. events affecting our industry. The other major action I wanted to make you aware of First, in early April of this year, the state of Illinois was the recent proposal by the National Association passed Senate Bill 646, which addresses the gov- of Insurance Commissioners (NAIC), which is governed ernance of Fraternal organizations. Among other by the chief insurance regulators from the 50 states, things, the bill requires Fraternal Life Insurance com- establishes standards and coordinates their regula- panies to prohibit anyone who has been convicted of tory oversight. The proposal requires that all insurance a felony to be elected as a director or officer of the companies, including fraternal organizations, to con- company’s Board of Directors. It also requires that duct a Corporate Governance Annual Filing (CGAF). newly elected board members participate in board training sessions within six months of their election This directly impacts us and, with its expected passage, and that the Board of Directors conduct a self-assess- Sons of Norway will have to submit a document each ment on an annual basis. Last, but not least, this new year that provides information about the Board of law states that voting members of a Fraternal Life Directors, its structure and duties, as well as the quali- Insurance company be provided with a candidate’s fications of each Board member. In addition, the CGAF

18 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention Chief Executive Officer IN E Jacksonville, Florida | www.sonsofnorway2014.com

outlines a requirement that the Board, as a whole, Moving forward, Sons of Norway’s use of the ERM possesses core competencies, including accounting process will provide the organization with a formal or finance, business judgment, industry knowledge, procedure to look at the risks it is subject to and management, leadership and vision/strategy. provide a more consistent method to monitor and reduce these risks. Because this is being put forth by the United States’ chief insurance regulators, we are already preparing for these filings to be required by law throughout the Working Together nation in the future. As you can see, good corporate As I mentioned previously, one of our strategic initia- governance is a serious issue within our industry and tives is increasing the focus on our insurance opera- a topic worthy of lengthy discussion. To that end I in- tions and building a better understanding across the vite you to contact me if you would like to learn more organization of its purpose in service to fraternal about governance updates and the effects they are and foundation operations. A better way of putting it having on Sons of Norway. might be “helping members understand the interde- pendent relationship that exists between our insur- ance, fraternal and foundation operations.” Enterprise Risk Management All businesses are subject to risk from fraud to data This relationship is the core of being a Fraternal Life security to natural disasters. In addition, Sons of Nor- Insurance company. Because of its importance, I way is subject to the additional financial risks due to wanted to give you some examples of how this the investment markets, mortality and longevity. Sons relationship manifests itself in very real ways that of Norway has for many years had different procedures benefit you, the members of Sons of Norway. both formal and informal to monitor and reduce these risks. Over the last year we have begun work to formal- First, consider the symbiotic relationship between ize the risk analysis process. The method we are using our insurance operations and our lodge/member is called Enterprise Risk Management (ERM), which is a benefits. Each year more than $1 million dollars of strategic business discipline that supports the methods insurance profits are provided to help support frater- and processes used by organizations to manage risks. It nal activities, such as Viking magazine, the Cultural is a multi-step process that identifies and defines risks, Skills program and cultural preservation. Similarly, measures their potential impact, monitors them, then a portion of insurance revenues go directly back to develops processes to minimize them. the lodges annually via the Lodge Revenue Sharing Program, which provides financial support that can This process will uncover risks that have not previ- be used for programming or community events. Also, ously been documented and help to formalize pro- our insurance operations support recruitment by cedures for those that are known. Some examples of hosting new member dinners for lodges. risks that are currently being proactively addressed by our ERM process include potential data security Another example I want to point out is the relationship breaches, mortality risks, reputational risks and between our insurance operations and the Founda- changes in regulation of insurance entities. tion, which has culminated in a series of charitable giv-

www.sonsofnorway.com 19 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Chief Executive Officer Jacksonville, Florida | www.sonsofnorway2014.com

That said, the past two years have been steady for I am very proud of the col- life insurance sales. Our life sales in 2012 were 116% of life sales in 2011, while life sales in 2013 were 83% laborative work being done of life sales in 2012. I am very optimistic that life sales by our financial, fraternal in 2014 will increase over 2013 thanks to the addi- tion of a Chronic Illness Accelerated Benefit Rider to and foundation departments our portfolio. This rider is a flexible, low cost addi- tion to your life insurance policy that provides regular and I hope you will support monthly payments if the insured is under medically then equally in the future. prescribed long term care. However, this is just one of the many sound financial ing seminars. These are the product of the Foundation products that we offer exclusively to our members. No and Financial Benefits Counselors working together matter what your personal financial goals are, Sons of with the American Red Cross and the results have Norway has a product that can help you achieve them. been positive. Members who participated felt the Whether that means ensuring your spouse maintains information was easy to understand and that they their standard of living, helping your children or grand- were now better equipped to ask the right questions children pay for college, or protecting a family business of their financial planners and insurance agents to that you have worked hard to build, Sons of Norway create their estate plans. can help. So I encourage every delegate to speak with your lodge’s FBC or one of the FBCs who is at the Inter- I am very proud of the collaborative work being done national Convention about your goals and how Sons of by our financial, fraternal and foundation depart- Norway can make them a reality. ments and I hope you will support them equally in the future. In the meantime, consider this: the common Fraternal thread in both examples is our insurance operations In the past two years the Fraternal department and it is the sale of insurance by Sons of Norway that has been hard at work updating existing member makes all the great benefits members and lodges en- benefits and developing new programs for members joy a reality. Just imagine what kinds of benefits Sons to enjoy. I would like to highlight a few projects, just of Norway could offer if more members looked to us to give you a sampling of what the department has when making their decision to buy life insurance. done recently. Insurance NorwayConnects.org, the young-adult-oriented web- Sales results can be a moving target so much of the site from Sons of Norway celebrated its first birthday time due to a variety of reasons: the economy, fluc- in 2014. In its first year the site has helped thousands tuating interest rates, changes in purchasing habits of of young people find jobs, learn about making good our members. life decisions and educated many about modern Norway. At the same time, the staff responsible for

20 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention Chief Executive Officer IN E Jacksonville, Florida | www.sonsofnorway2014.com

the site has also used it to build relationships with new partner organizations, like the US Embassy in The lessons we’ve learned Oslo, and strengthen existing relationships. and the strides we’ve made Also, in anticipation of members’ desire to celebrate together have strengthened the bicentennial of the signing of Norway’s consti- tution the Fraternal department partnered with the entire organization. Norway’s Foreign Ministry, the Honorary Consulate General in Minneapolis and the Bloomington Convention & Visitors Bureau to create a public Foundation exhibit to mark this historic event. The exhibit tells The past biennium has been a successful one for the the story of Norway’s constitution signing and any Sons of Norway Foundation. Since my last report, the lodge or district that has an interest in displaying this assets of the Foundation have grown from $4.5 mil- installation can call the Honorary Consulate General in lion to more than $6 million. This is an impressive 33 Minneapolis for reservation details. percent increase in just two years and is due, in part, to the support from members and lodges who have Moving on, I’m sure we all can agree that one of held fundraisers for the Foundation. the most important aspects of being a Fraternal Life Insurance company is the positive impact we make Also, during the same time frame the Foundation has on our communities. The Fraternal department has continued to help members achieve their educational been a hard at work supporting lodge and member dreams and assist lodges in providing strong com- volunteer programs. The results have been astound- munity programs through its scholarships and grants. ing: our members and lodges participated in more In fact, during this time the Foundation has awarded than 40,000 community events and spent nearly 1 close to 50 scholarships and 150 grants, totaling million hours on volunteerism during the past two nearly $250,000 given to groups and individuals. This years. These numbers are very significant because is great news and a perfect example of how the Sons they are how we quantify the impact Sons of Norway of Norway Foundation plays a positive role in the makes on communities and displays our commitment communities it serves. to making them better, stronger, and more vibrant. I offer my sincere thanks because you are the driving Also, thanks to the combined efforts of the Fraternal force behind the great things the Foundation does. I department and our members, we have begun re- encourage each of you, as lodge leaders, to visit the versing the trend of lowering retention rates. In fact, Foundation section of the Sons of Norway website as of year-end 2013 we saw a retention rate through- and become familiar with all it does to support lodge out the organization that was higher than the previ- programming, college scholarships and humanitarian ous 5-year average. efforts.

www.sonsofnorway.com 21 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Chief Executive Officer Jacksonville, Florida | www.sonsofnorway2014.com

Website As you may have heard by now, the Sons of Norway Staff Changes website is going through a major redevelopment. Since late 2013 we have been working with a renowned web company to help us build a site that will still provide The past two years have seen a number of great service and resources that members have come changes in our Headquarters’ staff so please join to expect, while adding new functionality, easier me in welcoming the following staff members: navigation, and an updated public section that will help Sons of Norway market itself to a wider audience of Diane Gill, Underwriter; Jessica Betzel and insurance consumers and potential members. Janna Dethmers, New Business Representatives; Katie Baratto, Customer Service Representative; In Closing Jana Velo, Cultural Coordinator. As I close this report I find myself reflecting on the Also, earlier this year, long-time Sons of Norway challenges and achievements of past two years while Controller, Lee Goranson, retired after 16 years looking to the future as well. I believe that the of dedicated service to Sons of Norway. We will lessons we’ve learned and the strides we’ve made miss Lee and wish him well. Dean Nelson, for- together have strengthened the entire organization. merly Sons of Norway’s Assistant Controller, has Thanks to the devotion of members, like yourself, been promoted to the Controller position and Sons of Norway is a thriving Fraternal Life Insurance I have every confidence that he will do a great company that makes a difference in hundreds of job in his new position. communities throughout North America and Norway. To help you put a face to each of their names, I’d also like to thank International President Kristiansen, please refer to the Headquarters photos on the Board of Directors, the District Presidents and the page 16. Headquarters Staff for their hard work over the past two years and for their dedication and combined con- tributions in making Sons of Norway the best it can be. Respectfully submitted, As always, I invite you to share your thoughts and ideas with me on how we can make Sons of Norway even stronger in the months and years to come. By working together we can build a bright future for Sons of Norway and the generations of members who will follow in our footsteps. Eivind Heiberg CEO Sons of Norway

22 www.sonsofnorway .com Greetings from the Fraternal Department

The Fraternal Department welcomes you to the 2014 International Convention in Jacksonville, Florida! We hope you join us in celebrating the convention’s theme of Financial, Fraternal, Foundation: United in Heritage.

If you want to share your convention experience with your local lodge, encourage them to connect with us online in the following places: Twitter.com/sonsofnorway Sonsofnorwayblog.blogspot.com Facebook.com/SonsofNorway Tusen Takk!

For more than 23 years and nearly 300 issues, MSP-C has been bringing Norwegian history and heritage alive on the pages of Viking.

Thank you, Sons of Norway, for a wonderful partnership. We’ll keep the stories coming!

220 South Sixth Street, Suite 500 Minneapolis, MN 55402

24 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway Sons of Norway UNITED IN HERITAGE 2014 international convention Foundation in Canada Jacksonville, Florida | www.sonsofnorway2014.com

To: The Delegates of the 2014 International Humanitarian Financial Support Fund for which individ- Lodge Meeting of Sons of Norway uals or groups can make donations for the purpose of providing financial assistance for specific catastrophic event losses. In 2013 the Humanitarian fund provided Greetings: for pass-through donations to four parties in Alberta who suffered losses due to early summer floods in the Our Sons of Norway Foundation in Canada continues Calgary and southern Alberta area. While we cannot to serve our Nordic and Sons of Norway communi- pretend this covered any significant losses, it neverthe- ties throughout Canada with financial support in less assisted in some of the needs. We also recognize educational and cultural programs for individual and the financial support provided to members in the same affiliate groups. area by our US Foundation.

Our asset base stands at $565,000 as of the end of In recognition of Norway’s Bicentennial Celebrations 2013. While level is very good for our programs, the and for those lodges or lodge groups having celebra- required disbursements on lower yield investment tions recognizing this special event, we provided earnings continues to be a challenge. Therefore, the grants of $200 to each of those lodges. We believe direct and channeled donations assist our bottom this was an appropriate way to recognize this happy line positively. milestone event by assisting lodges in covering some of their costs in staging this celebration which in most Our 2014 Budget calls for an income of $30,000 and ex- cases became community events. penses of $32,800 which includes Scholarships and Bur- saries for $10,600, Grants of $11,900 and $10,300 for I am pleased to advise that International Headquarters Administration. This level of income and expenditures has granted us a direct link to our Canadian Foundation has remained fairly consistent for the past four years. on the Headquarters’ Website. Now, when a person wants information on either Foundation, one can go to Annually, we award 12 scholarships to undergraduate, our Sons of Norway Website, select the ‘Foundation’ college and apprentice program students. In addition, drop menu and click on ‘Canadian Foundation’ – this we may award Thorshaug Bursaries of up to $1000 linkage is quick and complete! Mange takk for that. each to students taking Norwegian Studies, and cash grants for students attending the Oslo International I wish to acknowledge the tremendous effort of all Summer school and Folkehøgskole in Norway. In 2013 those who support both our US and Canadian Founda- we provided a Rekdal Cultural Grant for a music stu- tions, whether monetarily or in kind, all of which will dent studying the Hardanger Fiddle in Norway. leave a special legacy for future generations. I remind all that monetary gifts will, over time, provide benefits We continue to support Cultural Camps and Sports in many wonderful ways. Please continue to help. events for Canadian Districts and individual lodges as well as annual cash grants for Ski-for-Light Canada. Fraternally, Our ongoing cultural support programs include the Lysne Rosemaling Bursary for rosemaling skill ad- vancement, the Tormod Rekdal Cultural Grant for ‘Training the Trainers’ in cultural skills, and our Tore Pettersen, President Sons of Norway Foundation in Canada www.sonsofnorway.com 25 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Ski for Light

Anchorage. From greeting us at the Anchorage airport and throughout the week, Sons of Nor- way members were on hand to lend support in virtually every aspect of the event.

One of the highlights of the 2014 event was special recognition given to Leif Andol. Leif has served as an SFL guide for 35 years and for many years served as our traveling track setter. Forty years ago, a gift from the Sons of Norway Foundation, and lots of volunteer help, made the The Ski for Light Board is grateful for the long- first SFL International event a reality in Breck- standing and generous support that we have enridge, Colorado. In 2015 we will return to the received from Sons of Norway, its lodges, and Rocky Mountains to celebrate our 40th Ski for hundreds of individual members. We look for- Light International in Granby, Colorado and sup- ward to at least forty more years of this great port from Sons of Norway lodges and individuals relationship. continues to be important to our success. The next Ski for Light International Week will be In the 1970’s, Olav Pederson had the vision of held in Granby, Colorado. We will be skiing at creating a program in this country that was based Snow Mountain Ranch and staying at the Inn at on Norway’s Ridderrennet and Sons of Norway Silver Creek, January 25-February 1, 2015. Addi- and members of many lodges joined Olav in mak- tional information can be found at www.sfl.org. ing his dream a reality. Prominent members of the Norwegian-American community provided Ski for Light with early leadership and guidance.

Carl Platou and Bjarne Eikevik served as SFL’s first two presidents. A partial list of other pioneers that were instrumental in providing leadership and support includes Jan Henriksen, Egil Almaas, Einer and Kjell Bergh, and Brit Peterson.

John and Cyndi Olnes and many members of Anchorage’s Bernt Balchen Lodge 2-046 played a key role in the success of our 2014 event held in

26 www.sonsofnorway .com Sons of Norway Financial Benefits Counselors

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DISTRICT 1 MN (Continued) AK (Continued) WA (Continued) New York MT (Continued) WI (Continued) Kenneth S. Lee Glenn C. Jacob Marlene M. Taylor John G. Aasen John Willoughby Helge E. Vestnes Iowa 218-739-9471 907-746-5857 360-426-5595 607-533-7343 406-443-2704 715-878-9646 Mark W. Gusland 515-255-0296 Marcia J. McKinney Sharon C. Wikan Joseph V. Wenzel John T. Johnson North Dakota 952-454-4508 907-772-3858 425-293-5234 877-237-3711 Kenneth J. Agather DISTRICT 6 Eldon L. Neighbor 701-293-0202 319-350-9101 Arlene N. Mills Idaho Paul Koksvik Arizona 763-425-0586 James R. Burkett DISTRICT 3 585-202-0852 Linda Briard Sherrill E. Bartley Kansas 208-773-0600 701-866-6586 602-291-1111 Christopher J. Gary H. Olson Connecticut Robert McKeever Grimmond 218-233-5130 Oregon Lech S. Kaminski 800-561-1492 Daniel Haglund John D. Beemer 913-961-5337 Karen Frascone 860-721-7720 701-866-4572 602-622-6800 Douglas A. Scholla 503-838-1155 Nancy Wolff Minnesota 952-442-5600 Florida 914-443-8889 Ann M. Krause Zachary Beemer Thomas E. Arnold Julia Ruscitti Karen B. Ansell 701-720-2755 480-840-4447 218-262-2619 Daniel H. Warneke 503-849-0076 904-242-8893 North Carolina 320-761-2369 Bruce Frizen Gary H. Olson California Lynn D. Bartness Washington John G. Haagensen 704-243-6369 218-233-5130 Dennis B. Burreson 507-377-8904 Nebraska Martha A. Brown 954-548-3590 760-247-9003 Ivan L. Anderson 253-588-0204 Virginia Linda Briard 402-850-3733 J.W. Haagensen Mike Beck DISTRICT 5 James J. Donovan 701-866-6586 Jerry Label 954-548-3570 757-963-5102 760-440-9905 Christopher J. 425-640-9830 Ilinois Daniel W. Haglund Grimmond Ann M. Krause Gregory W. Ragan Fred Hymans 701-866-4572 913-961-5337 Bonita D. Lyon 701-720-2755 DISTRICT 4 800-442-4146 916-486-4429 360-312-5444 Franz L. Helling South Dakota Henrik Margard Montana Ohio Carl P. Ingvoldstad 507-439-6265 Garry O. Grorud Ralph M. Naddeo 754-581-4012 LaVerne F. Bass James E. Santee 707-987-2404 605-873-2783 253-565-6451 406-245-8338 440-749-5186 Charles D. Holland Massachusetts John P. Kelly 507-493-5866 Texas Timothy S. Quigley Hans I. Christensen Corda L. Clarin Wisconsin 818-986-7199 Henrik Margard 360-373-4100 781-860-0519 406-652-8200 William R. Bowers Gregory P. Hovland 754-581-4012 715-839-1006 Adrienne Lincoln 651-429-2304 Scott Schiermeister New Jersey Dale F. Fellon 530-272-1164 Daniel H. Warneke 800-741-2231 James J. Donnelly 406-273-6059 Jay Erickson Matthew M. Kern 320-761-2369 908-707-1676 920-455-0936 Colorado 612-802-9114 Tim E. Schilling Debra Larsen LaRue D. Hanson 509-779-4390 James R. Strachan 406-652-8200 Thomas L. Kunkel 719-599-8546 David T. Kompelien DISTRICT 2 732-985-3589 715-834-5366 651-454-6401 Rosemary Stevens Nevada Alaska 253-588-0204 John LaGrange Cynthia H. Larsen Susan M. Erickson 702-834-9157 763-783-1188 800-478-3858

1455 West Lake Street, Minneapolis, MN 55408 • Toll Free: 1-800-945-8851 Tel: 612-827-3611 www.sonsofnorway.com 27 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED District Fraternal Funds IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com District 1 2012

28 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway District Fraternal Funds UNITED IN HERITAGE 2014 international convention District 1 2013 Jacksonville, Florida | www.sonsofnorway2014.com

www.sonsofnorway.com 29 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED District Fraternal Funds IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com District 2 2012

30 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway District Fraternal Funds UNITED IN HERITAGE 2014 international convention District 2 2013 Jacksonville, Florida | www.sonsofnorway2014.com

www.sonsofnorway.com 31 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED District Fraternal Funds IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com District 3 2012

32 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway District Fraternal Funds UNITED IN HERITAGE 2014 international convention District 3 2013 Jacksonville, Florida | www.sonsofnorway2014.com

www.sonsofnorway.com 33 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED District Fraternal Funds IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com District 4 2012

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www.sonsofnorway.com 35 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED District Fraternal Funds IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com District 5 2012

36 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway District Fraternal Funds UNITED IN HERITAGE 2014 international convention District 5 2013 Jacksonville, Florida | www.sonsofnorway2014.com

www.sonsofnorway.com 37 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED District Fraternal Funds IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com District 6 2012

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40 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway District Fraternal Funds UNITED IN HERITAGE 2014 international convention District 7 2013 Jacksonville, Florida | www.sonsofnorway2014.com

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42 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway District Fraternal Funds UNITED IN HERITAGE 2014 international convention District 8 2013 Jacksonville, Florida | www.sonsofnorway2014.com

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44 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway Statement of UNITED IN HERITAGE 2014 international convention Financial Position Jacksonville, Florida | www.sonsofnorway2014.com

Certificates Insurance Cash Year in Force in Force Assets Receipts Members 1895 18 1,800 ------18 1900 312 31,200 2,771 --- 312 1905 2,564 774,900 7,296 15,000 2,564 1910 5,096 1,697,200 40,113 31,962 6,383 1915 5,930 2,583,400 145,458 49,322 10,622 1920 6,689 4,070,600 358,684 107,448 12,302 1925 9,351 7,651,050 864,817 237,247 16,488 1930 10,134 9,474,400 1,702,623 396,474 24,396 1935 10,380 9,168,750 2,079,987 312,234 15,199 1940 12,788 11,356,784 2,806,850 486,856 20,511 1945 14,958 13,637,400 4,426,937 696,680 27,544 1950 19,724 16,298,308 6,137,943 893,132 32,876 1955 20,146 22,251,186 8,671,245 1,287,789 35,624 1960 19,741 31,161,531 10,184,032 1,471,473 35,757 1965 18,549 40,751,821 12,452,528 1,796,447 39,612 1970 21,125 78,168,988 14,631,711 3,203,354 64,288 1975 27,260 160,624,391 20,060,690 4,992,900 96,512 1980 28,796 249,196,587 32,150,113 7,629,647 103,891 1985 27,976 396,433,115 54,040,922 17,309,342 105,328 1990 25,870 692,656,302 102,281,288 29,090,829 78,246 1995 22,058 733,680,764 170,645,992 28,115,970 72,481 2000 17,420 614,080,168 171,933,838 22,737,319 63,838 2005 14,445 579,511,795 238,687,855 36,564,910 69,680 2010 12,358 639,251,960 312,244,794 62,448,446 62,786 2011 11,999 634,389,691 325,776,265 46,024,823 61,756 2012 11,756 648,836,398 337,042,305 42,082,706 59,388 2013 11,512 675,519,396 353,855,494 41,150,423 57,274 *

* Includes 6,350 Heritage members and 6,205 individuals whose membership has lapsed but still have active insurance certificates. Insurance and Benefits by District – 2013 Ins. Certificates Ins. Amount Premiums Benefits District In Force In Force Received Paid 1 4,188 $219,750,865 $7,046,772 $5,379,518 2 1,719 150,130,506 5,896,117 8,015,031 3 1,416 83,725,837 2,526,952 2,617,730 4 (a) 1,461 58,950,176 2,761,634 1,927,584 5 1,619 86,537,563 2,966,557 3,891,577 6 1,109 76,424,449 3,534,855 3,238,135 7 (a) –––– –––– –––– –––– 8 (a) –––– –––– –––– ––––

Totals 11,512 $675,519,396 $24,732,887 $25,069,574

(a) Sons of Norway is not licensed to sell insurance in Canada or Norway, therefore the insurance in force is reflected in the state in which the certificate was issued. www.sonsofnorway.com 45 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Membership

Adult Juv Hrtg Adult Juv Hrtg Lodge Lodge Mbrs Mbrs Mbrs Total Lodge Lodge Mbrs Mbrs Mbrs Total City, State Lodge # Name 2013 2013 2013 2013 City, State Lodge # Name 2013 2013 2013 2013 D1 at Large 1-000 Central 729 114 69 912 Rapid City, SD 1-532 Borgund 238 5 47 290 Active Insurance Non Dues Paying Members* 2,473 Windom, MN 1-538 Stavanger 81 1 11 93 Minneapolis, MN 1-001 Nidaros 171 17 11 199 Lindstrom, MN 1-546 Vennelag 80 4 6 90 Minneapolis, MN 1-002 Oslo 335 23 7 365 Cedar Falls, IA 1-547 Solglimt 167 6 27 200 St Paul, MN 1-008 Synnove-Nordkap 238 23 34 295 Cedar Rapids, IA 1-548 Restauration 126 6 6 138 Benson, MN 1-010 Bjorgvin 83 0 34 117 Huron, SD 1-550 Solskinn 48 3 1 52 Fergus Falls, MN 1-012 Heimskringla 133 6 20 159 Canby, MN 1-554 Vennskap 95 8 7 110 Cloquet, MN 1-015 Heimsyn 64 9 7 80 Red Wing, MN 1-558 Lauris Norstad 80 3 1 84 Duluth, MN 1-016 Nortun 242 3 28 273 Anoka, MN 1-559 Vennekretsen 186 31 33 250 Two Harbors, MN 1-017 Terje Viken 95 5 9 109 Grand Rapids, MN 1-563 Nordstjernen 79 1 11 91 Brainerd, MN 1-018 Sagatun 152 9 13 174 Aberdeen, SD 1-578 Grieg 40 0 18 58 Vining, MN 1-032 Leif Erikson 157 0 71 228 Mitchell, SD 1-579 Fedrelandet 18 0 1 19 Virginia, MN 1-040 Haarfager 104 2 15 121 Mankato, MN 1-582 Elvesvingen 159 6 40 205 Madison, MN 1-041 Nornen 29 3 28 60 Northfield, MN 1-585 Nordmarka 108 1 5 114 Rochester, MN 1-047 Kristiania 211 9 19 239 Morris, MN 1-590 Norskfodt 101 9 25 135 Albert Lea, MN 1-052 Normanna 120 9 8 137 Dallas, TX 1-594 Nordtex 50 2 6 58 Halstad, MN 1-055 Tordenskjold 14 0 0 14 Des Moines, IA 1-596 Marsteinen 112 19 15 146 Hibbing, MN 1-058 Midnatsolen 94 24 17 135 Hastings, MN 1-599 Hjemkomst 83 0 8 91 Willmar, MN 1-059 Fedraheimen 187 2 46 235 Minnetonka, MN 1-601 Vestland 168 8 20 196 Sioux Falls, SD 1-065 Gjoa 189 7 8 204 Lakeville, MN 1-602 Norsota 131 17 8 156 Thief River Fall, MN 1-070 Snorre 90 7 12 109 Omaha, NE 1-604 Elveby 143 15 24 182 Minneapolis, MN 1-108 Vonheim 363 49 14 426 Park Rapids, MN 1-626 Nordskogen 86 0 3 89 Sioux City, IA 1-167 Glitne-Sioux Viking 36 5 3 44 Yankton, SD 1-633 Lillehammer 37 4 0 41 Glenwood, MN 1-175 Mjosen 91 1 38 130 Owatonna, MN 1-638 Nortonna 181 2 12 195 Int’L Falls, MN 1-193 Vinland 64 2 14 80 Mc Allen, TX 1-644 Palmedal 13 2 0 15 Fosston, MN 1-240 Granlund 57 1 5 63 Austin, TX 1-645 Cleng Peerson 43 4 7 54 Montevideo, MN 1-264 Jaabæk 27 2 2 31 Davenport, IA 1-655 Storelva 77 4 29 110 Spring Grove, MN 1-364 Valheim 82 0 17 99 Walker, MN 1-658 Skogvannet 40 2 16 58 Webster, SD 1-368 Odin 24 3 1 28 Isle, MN 1-659 Tusenvann 84 2 35 121 Lanesboro, MN 1-376 Heimbygda 60 0 7 67 Overland Park, KS 1-665 Maihaugen 64 5 13 82 Crookston, MN 1-458 Morgensol 30 0 6 36 Moundsview, MN 1-667 Fjell Syn 66 1 9 76 Watertown, SD 1-463 Viking 51 16 7 74 Oklahoma City, OK 1-671 Hundreårsjubileum 62 4 66 132 Minneapolis, MN 1-464 Draxten 104 3 7 114 Hutchinson, MN 1-676 Kråkeelva 47 0 5 52 Story City, IA 1-482 Kong Sverre 140 19 7 166 Waconia, MN 1-680 Scandia 81 4 5 90 Canton, SD 1-483 Kong Olav V 53 3 1 57 Cambridge, MN 1-685 Rumelva 65 11 3 79 Kenyon, MN 1-487 Kenyon Viking 61 4 3 68 1-999 Spirit New Century 229 3 85 317 Albion, NE 1-494 Norrona Viking Dsb 18 0 0 18 District 1 Total 9,448 667 1,439 14,027 Detroit Lakes, MN 1-495 Vikingland 156 13 45 214 Roseau, MN 1-498 Nordlys 53 0 6 59 D2 At Large 2-000 Central 400 11 19 430 Bemidji, MN 1-500 Bemidji 106 2 41 149 Active Insurance Non Dues Paying Members* 898 Forest City, IA 1-502 Nordic 53 3 3 59 Seattle, WA 2-001 Leif Erikson 1,399 8 113 1,520 Decorah, IA 1-503 Valdres 83 3 0 86 Tacoma, WA 2-002 Norden 331 7 30 368 Winona, MN 1-505 Nor-Win 75 3 28 106 Everett, WA 2-003 Normanna 988 1 32 1,021 Brookings, SD 1-508 Fjordland 193 45 48 286 Hoquiam, WA 2-004 Grays Harbor 152 0 3 155 Granite Falls, MN 1-509 Elvidal 82 4 23 109 Spokane, WA 2-005 Tordenskjold 249 6 44 299 St Cloud, MN 1-511 Trollheim 174 11 7 192 Coeur D’Alene, ID 2-011 Harald Haarfager 86 7 17 110 Minneapolis, MN 1-517 Syttende Mai 65 4 1 70 Portland, OR 2-015 Grieg 571 0 105 676 Austin, MN 1-519 Storting 170 3 25 198 Astoria, OR 2-016 Nidaros 110 0 5 115 Alexandria, MN 1-530 Runic Vennskap 72 3 16 91 Stanwood, WA 2-017 Fritjov 100 1 2 103

46 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention Membership IN E Jacksonville, Florida | www.sonsofnorway2014.com

Adult Juv Hrtg Adult Juv Hrtg Lodge Lodge Mbrs Mbrs Mbrs Total Lodge Lodge Mbrs Mbrs Mbrs Total City, State Lodge # Name 2013 2013 2013 2013 City, State Lodge # Name 2013 2013 2013 2013 Bellingham, WA 2-021 Wergeland 104 3 16 123 Staten Island, NY 3-410 Nansen 427 3 20 450 Petersburg, AK 2-023 Fedrelandet 366 7 27 400 Rockaway, NJ 3-427 Nor-Bu 288 8 27 323 Kelso, WA 2-027 Breidablik 99 0 6 105 Kingston, NY 3-432 Hudson Valley 134 6 49 189 Conway, WA 2-029 Abel 65 0 8 73 Rochester, NY 3-433 Scand. Heritage Soc 60 0 9 69 Cathlamet, WA 2-030 Helgeland 55 0 5 60 Point Pleasant, NJ 3-439 Pleasant Point 40 0 0 40 Ketchikan, AK 2-032 Midnatsol 42 0 2 44 Marlboro, NJ 3-466 Noreg 214 2 18 234 Juneau, AK 2-033 Svalbard 84 2 12 98 Pearl River, NY 3-467 Norrona 120 5 19 144 Bremerton, WA 2-035 Oslo 202 5 27 234 Stamford, CT 3-468 Skaugum 43 3 7 53 Port Angeles, WA 2-037 Olympic 77 0 5 82 East Hartford, CT 3-474 Hartford 68 11 3 82 Eugene, OR 2-038 Sonja 209 5 12 226 Ft Lauderdale, FL 3-475 Lauderdale 93 6 2 101 Klamath Falls, OR 2-039 Roald 41 0 8 49 Mahopac, NY 3-476 Troll 69 0 10 79 Yakima, WA 2-041 Odin 78 0 9 87 Riverhead, NY 3-485 Peconic 27 0 0 27 Salem, OR 2-042 Thor 105 0 15 120 Orlando, FL 3-501 Vikingworld 39 1 6 46 Poulsbo, WA 2-044 Poulsbo 794 8 83 885 Boston, MA 3-506 Norumbega 232 7 14 253 Anchorage, AK 2-046 Bernt Balchen 308 1 139 448 Fort Pierce, FL 3-514 Gulfstream 120 4 12 136 Bend, OR 2-047 Fjeldheim 132 0 66 198 Tampa, FL 3-515 Tampa Bay 42 1 11 54 Vancouver, WA 2-058 Columbia 173 0 18 191 Norfolk, VA 3-522 Hampton Roads 160 3 44 207 Moses Lake, WA 2-080 Columbia Basin 41 2 0 43 Sarasota, FL 3-539 Sarasota 77 4 12 93 Kennewick, WA 2-086 Sol-Land 106 0 23 129 Jacksonville, FL 3-541 Gateway To Florida 152 2 44 198 Mercer Island, WA 2-087 Cascade 67 0 16 83 Beverly, MA 3-545 Morgensolen 45 1 2 48 Olympia, WA 2-094 Hovedstad 124 1 18 143 Port Orange, FL 3-551 Port Orange 26 1 3 30 Wenatchee, WA 2-096 Epledalen 41 0 5 46 Media, PA 3-555 Restauration 61 2 13 76 Bothell, WA 2-106 Bothell 342 3 50 395 Clearwater, FL 3-562 Suncoast 73 3 4 80 Fairbanks, AK 2-117 Arctic Viking 89 0 23 112 Cairo, NY 3-564 Fram 49 7 10 66 Sitka, AK 2-119 Norske Venner 20 0 0 20 Rowlands, PA 3-566 Bernt Balchen 115 0 24 139 Boise, ID 2-122 Grondal 86 0 20 106 Oneonta, NY 3-572 Norsemen 31 2 1 34 Centralia, WA 2-127 Skjonndal Disb. 16 1 2 19 Spring Hill, FL 3-607 Sun Viking 60 0 20 80 Lewiston, ID 2-129 Elvedalen 51 0 2 53 Lancaster, PA 3-612 Bondelandet 55 2 10 67 Edmonds, WA 2-130 Edmonds 232 0 41 273 Melbourne, FL 3-615 Space Coast Viking 34 0 11 45 Kent/Auburn, WA 2-131 Vesterdalen 220 4 41 265 Naples, FL 3-617 Scandia 68 0 2 70 Medford, OR 2-143 Roguedalen 23 2 3 28 Myrtle Beach, SC 3-630 Southern Star 51 0 9 60 Kodiak, AK 2-145 Island Viking 27 0 6 33 Manhattan, NY 3-636 Lillehammer 56 0 18 74 Whidbey Island, WA 2-164 Whidbey Is. Nordic 85 0 14 99 Port Charlotte, FL 3-643 Norsemen Harbour D 24 3 10 37 2-999 Spirit New Century 107 0 62 169 Bedford, VA 3-646 Bla Fjell 32 0 7 39 District 2 Total 8,997 85 1,154 11,134 Falmouth, ME 3-664 Maine Nordmenn 124 0 26 150 Raleigh, NC 3-675 North Carolina Vikings53 0 9 62 D3 At Large 3-000 Central 344 12 14 370 Atlanta, GA 3-678 Vennekretsen 54 1 24 79 Active Insurance Non Dues Paying Members* 710 Charlotte, NC 3-679 Norsk Carolina 55 1 11 67 Brooklyn, NY 3-109 Faerder 99 0 14 113 New Bern, NC 3-682 Drammen 32 0 3 35 Philadelphia, PA 3-125 Fredriksten 128 9 8 145 Estero, FL 3-683 Gulf Coast Vikings 43 0 5 48 Baltimore, MD 3-215 Nordkap 184 12 18 214 Ocala, FL 3-686 Ocala 9 0 0 9 Providence, RI 3-232 Dovre 24 0 0 24 Washington, DC 3-888 Washington Central 293 10 47 350 Staten Island, NY 3-242 Fredheim 119 0 42 161 Syracuse, NY 3-889 Oslo Central 66 1 12 79 Brooklyn, NY 3-243 Brooklyn 60 5 2 67 3-999 Spirit New Century 241 1 58 300 St James, NY 3-252 Loyal 208 3 50 261 Valley Stream, NY 3-265 Garborg 86 2 6 94 District 3 Total 5,703 144 837 7,394 East Williston, NY 3-337 Norge 77 0 11 88 D4 At Large 4-000 Central 122 17 9 148 Bay Shore, NY 3-393 Henrik Ibsen 108 0 14 122 Active Insurance Non Dues Paying Members* 808 Huntington Sta, NY 3-407 Norden 111 0 12 123 Grand Forks, ND 4-021 Gyda-Varden 333 11 42 386

www.sonsofnorway.com 47 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Membership

Adult Juv Hrtg Adult Juv Hrtg Lodge Lodge Mbrs Mbrs Mbrs Total Lodge Lodge Mbrs Mbrs Mbrs Total City, State Lodge # Name 2013 2013 2013 2013 City, State Lodge # Name 2013 2013 2013 2013 Fargo, ND 4-025 Kringen 1,288 22 185 1,495 Hamilton, MT 4-656 Bitterrootdalen 52 12 14 78 Minot, ND 4-067 Thor 384 49 79 512 Crosby, ND 4-663 Vidda 128 0 61 189 Mayville, ND 4-078 Mjosen 44 0 6 50 4-999 Spirit New Century 22 0 29 51 Williston, ND 4-086 Bjarne 108 21 16 145 District 4 Total 5,805 243 962 7,818 Rugby, ND 4-087 Odin 68 10 44 122 Bismarck, ND 4-107 Sverdrup 372 23 47 442 D5 At Large 5-000 Central 308 66 28 402 Great Falls, MT 4-138 Lodsen 175 3 31 209 Active Insurance Non Dues Paying Members* 783 Kalispell, MT 4-140 Fedraheimen 95 0 9 104 Superior, WI 5-027 Norrona 59 6 4 69 Edmonton, AB 4-143 Solglyt 186 0 19 205 La Crosse, WI 5-028 Wergeland 399 25 20 444 Devils Lake, ND 4-178 Heim 128 7 32 167 Eau Claire, WI 5-029 Løven 157 10 21 188 Manfred, ND 4-203 Fagerlund 27 0 0 27 Woodville, WI 5-053 Valkyrien 64 8 9 81 Jamestown, ND 4-247 Wergeland 51 0 10 61 Madison, WI 5-074 Idun 129 12 21 162 Antelope, MT 4-275 Fremgang 17 0 3 20 Milwaukee, WI 5-082 Fosselyngen 304 25 23 352 Watford City, ND 4-307 Enighed 72 2 6 80 Chicago, IL 5-097 Leif Erikson 103 12 1 116 Calgary, AB 4-341 Valhalla 124 2 13 139 Arlington Height, IL 5-100 Skjold 160 28 9 197 Claresholm, AB 4-345 Hamar 31 0 8 39 Rockford, IL 5-168 Valhall 97 6 10 113 Missoula, MT 4-424 Normanden 233 7 48 288 Racine, WI 5-183 Nordlyset 101 13 14 128 Maddock, ND 4-478 Mollargutten 51 4 19 74 Kenosha, WI 5-206 Hafrsfjord 63 5 1 69 Cooperstown, ND 4-480 Ueland 65 0 10 75 Osseo, WI 5-220 Trygvason 46 11 5 62 Valley City, ND 4-481 Hjemdahl 32 0 1 33 Viroqua, WI 5-286 Jotunheimen 24 0 0 24 Fairdale, ND 4-486 Vaarliv 34 0 2 36 Stoughton, WI 5-314 Mandt 166 8 8 182 Bottineau, ND 4-488 Nordlyset 92 15 10 117 Chetek, WI 5-353 Dovre 83 2 9 94 Sidney, MT 4-489 Sidney 66 4 12 82 Detroit, MI 5-378 Nordkap 99 0 18 117 Grande Prairie, AB 4-493 Northern Lights 83 0 16 99 Chicago, IL 5-417 Trollhaugen 21 0 1 22 Billings, MT 4-499 Jotunheimen 183 1 15 199 Westby, WI 5-457 Solvang 98 3 18 119 Camrose, AB 4-504 Ronning 16 0 0 16 Aurora, IL 5-472 Polar Star 68 4 20 92 Cut Bank, MT 4-507 Normont 18 3 0 21 Pontiac, MI 5-473 Samhold 49 0 6 55 Missoula, MT 4-520 Hilsen 9 0 0 9 Lansing, MI 5-490 Sonja Henie 19 2 0 21 Big Timber, MT 4-524 Fjell Heim 59 0 9 68 Appleton, WI 5-491 Norse Valley 92 10 10 112 Helena, MT 4-528 Hovedstad 155 6 15 176 Wausau, WI 5-496 Rib Fjell 52 2 1 55 Lewistown, MT 4-531 Snofjeldet 51 2 0 53 Mount Horeb, WI 5-513 Vennelag 114 18 18 150 Libby, MT 4-536 Norhaven 31 0 0 31 Muskegon, MI 5-523 Sognefjord 104 4 2 110 Polson, MT 4-542 Nordmanns Vis 30 0 0 30 Ottawa, IL 5-525 Cleng Peerson 108 7 14 129 Bozeman, MT 4-543 Fjelldal 75 1 17 93 Black River Fall, WI 5-534 Fossen 46 7 0 53 Glasgow, MT 4-553 Dalen 32 2 0 34 Janesville, WI 5-544 Nordland 80 4 11 95 Hettinger, ND 4-557 Smaa Fjell 63 5 9 77 Sturgeon Bay, WI 5-549 H R Holand 85 6 3 94 Wahpeton, ND 4-565 Henrik Ibsen 28 1 2 31 Wisconsin Rapids, WI 5-556 Elvedal 66 4 7 77 North Battleford, SK 4-567 Nisse 39 0 2 41 Suttons Bay, MI 5-568 Christian Radich 43 0 4 47 Red Deer, AB 4-571 Aspelund 60 0 6 66 Wisconsin Dells, WI 5-570 Vakkertland 48 10 4 62 Saskatoon, SK 4-576 Brubyen 104 0 29 133 Iola, WI 5-580 Norskeland 55 0 1 56 Miles City, MT 4-586 Nordstjernen 17 1 0 18 Riverside, IL 5-593 Elvesund 43 1 3 47 Dillon, MT 4-589 Beverhode 20 0 0 20 Chesterton, IN 5-600 Scandiana 75 3 12 90 Olds, AB 4-591 Fjellsyn 29 0 3 32 Marshfield, WI 5-609 Myrmarken 33 16 1 50 Millet, AB 4-595 Normanna 10 2 0 12 Kalamazoo, MI 5-610 Askeladden 72 7 7 86 Lethbridge, AB 4-603 Solsyd 43 0 3 46 Carmel, IN 5-614 Circle City 130 3 58 191 Medicine Hat, AB 4-605 Skjenna 18 0 0 18 Blair, WI 5-616 Fagernes 54 2 28 84 Tioga, ND 4-618 Vennlig 110 7 33 150 Minocqua/Woodruf, WI5-620 Nordlandet 53 0 41 94 Cando, ND 4-649 Prairie Fjord 41 0 16 57 Sheboygan Falls, WI 5-622 Vennskap 56 0 29 85 Dickinson, ND 4-652 Hardanger 81 3 22 106 Marinette, WI 5-624 F M Christiansen 7 0 5 12

48 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention Membership IN E Jacksonville, Florida | www.sonsofnorway2014.com

Adult Juv Hrtg Adult Juv Hrtg Lodge Lodge Mbrs Mbrs Mbrs Total Lodge Lodge Mbrs Mbrs Mbrs Total City, State Lodge # Name 2013 2013 2013 2013 City, State Lodge # Name 2013 2013 2013 2013 Mondovi, WI 5-625 Viking 53 1 4 58 Denver, CO 6-110 Trollheim 288 7 20 315 Stevens Point, WI 5-627 Vennligfolk 46 0 12 58 Monterey, CA 6-112 Aasgaarden 30 0 4 34 Fort Wayne, IN 5-628 Tre Elver 20 0 3 23 Loveland, CO 6-114 Stein Fjell 126 4 15 145 Green Bay, WI 5-632 Grønnvik 70 3 18 91 Tulare, CA 6-115 Stordalen 22 3 2 27 South Bend, IN 5-634 Knute Rockne 27 0 0 27 Boulder, CO 6-118 Vesterheim 87 2 27 116 Amery, WI 5-635 Sjoland 45 1 9 55 Grass Valley, CA 6-128 Gulldalen 128 7 22 157 Monroe, WI 5-642 Ostestaden 65 4 9 78 Scottsdale, AZ 6-133 Desert Fjord 139 7 26 172 Delavan, WI 5-650 Norsemen Of Lakes 52 18 8 78 Sun City, AZ 6-134 Sol Byer 79 3 8 90 Cincinnati, OH 5-657 Edvard Grieg 91 0 17 108 Grand Junction, CO 6-146 Vestafjell 92 4 17 113 Cleve/Akrn/cantn, OH 5-662 Arctic Circle 55 0 20 75 Palm Desert, CA 6-150 Solskinn 115 4 16 135 Calumet, MI 5-670 Ulseth 33 0 10 43 Reno, NV 6-151 Hvite Fjell 56 0 10 66 Knoxville, TN 5-677 Vikings Of The Smokies72 1 14 87 Las Vegas, NV 6-152 Vegas Viking 115 8 20 143 Nashville, TN 5-681 Music City Vikings 59 0 4 63 Mesa, AZ 6-153 Overtro Fjell 117 7 46 170 Richland Center, WI 5-888 Gjemtedal Central 12 10 2 24 Redwood City, CA 6-155 Vigeland 98 0 5 103 5-999 Spirit New Century 121 0 50 171 Temecula, CA 6-159 Vinland 42 0 8 50 District 5 Total 4,854 388 685 6,710 Vacaville, CA 6-161 Centennial 39 0 6 45 Denver, CO 6-162 Fjelldalen 83 0 24 107 D6 At Large 6-000 Central 305 27 33 365 Henderson, NV 6-165 Desert Troll 66 4 24 94 Active Insurance Non Dues Paying Members* 507 Lake County, CA 6-166 Vikings Of Lake 70 2 18 90 San Francisco, CA 6-007 Henrik Ibsen 381 1 32 414 Flagstaff, AZ 6-167 Nordic Pines 65 0 4 69 Long Beach, CA 6-009 Fridtjof Nansen 33 4 3 40 Yuma, AZ 6-168 Sola 62 1 2 65 Eureka, CA 6-013 Fram 53 0 4 57 Grand County, CO 6-169 Storfjell 47 0 10 57 Oakland, CA 6-014 Bjornstjerne Bjornson 114 5 7 126 6-999 Spirit New Century 187 1 38 226 Los Angeles, CA 6-022 Peer Gynt 140 1 5 146 San Pedro, CA 6-024 Ulabrand 76 6 12 94 District 6 Totals 5,749 209 809 7,274 San Diego, CA 6-025 Valhall 247 11 44 302 D7 At Large 7-000 Central 30 0 9 39 Vallejo, CA 6-043 Victory 64 8 1 73 Active Insurance Non Dues Paying Members* 1 Santa Barbara, CA 6-045 Ivar Aasen 33 0 2 35 Vancouver, BC 7-008 Sleipner 408 1 74 483 Sacramento, CA 6-048 Roald Amundsen 216 5 11 232 New Westminster, BC 7-019 Varden 76 0 13 89 Richmond, CA 6-049 Andrew Furuseth 53 0 4 57 Port Alberni, BC 7-020 Nordlys 17 1 0 18 Van Nuys, CA 6-050 Norrona 170 6 25 201 Prince Rupert, BC 7-028 Vinland 29 0 1 30 San Jose, CA 6-052 Nordahl Grieg 276 12 13 301 Victoria, BC 7-053 Eidsvold 184 2 82 268 Modesto, CA 6-056 Garborg 50 0 20 70 Nanaimo, BC 7-063 North Star 78 0 17 95 Vista, CA 6-060 Norge 109 3 7 119 Prince George, BC 7-071 Rondane 104 0 25 129 Hayward, CA 6-061 Snorre 77 2 15 94 Castlegar, BC 7-076 Nordic 29 0 4 33 Santa Rosa, CA 6-062 Freya 146 0 32 178 Dawson Creek, BC 7-079 Dawson Creek 82 0 72 154 Anaheim, CA 6-064 Solbakken 193 11 12 216 North Surrey, BC 7-081 Viking 76 0 15 91 Pomona, CA 6-065 Sundfjord 34 0 17 51 Powell River, BC 7-098 Vestlandet 7 0 3 10 San Bernardino, CA 6-067 Soldalen 52 5 8 65 Kelowna, BC 7-109 Hardanger 47 0 12 59 Stockton, CA 6-069 Solheim 35 0 3 38 Maple Ridge, BC 7-137 Golden Ears 18 0 2 20 Glendale, CA 6-074 Edvard Grieg 92 4 15 111 Williams Lake, BC 7-140 Storland 10 0 1 11 Fresno, CA 6-075 Scandia 37 0 6 43 Kamloops, BC 7-141 Heimdal 41 0 28 69 Yuba City, CA 6-078 Snowshoe Thompson 61 5 6 72 Bella Coola, BC 7-142 Skjonne Dal 15 0 0 15 San Rafael, CA 6-082 Olav 86 0 14 100 North Vancouver, BC 7-157 Trollheimen 31 0 15 46 Salt Lake City, UT 6-083 Leif Erikson 44 0 11 55 7-999 Spirit New Century 6 0 2 8 Chico, CA 6-089 Viking Dsbnd 40 0 4 44 District 7 Total 1,288 4 375 1,668 Thousand Oaks, CA 6-091 Norseman 131 11 33 175 Colorado Springs, CO 6-107 Fjellheim 186 14 34 234 D8 At Large 8-000 Central 29 1 6 36 Redding, CA 6-108 Shastafjell 62 4 4 70 Active Insurance Non Dues Paying Members* 25

www.sonsofnorway.com 49 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Membership Jacksonville, Florida | www.sonsofnorway2014.com

Adult Juv Hrtg Adult Juv Hrtg Lodge Lodge Mbrs Mbrs Mbrs Total Lodge Lodge Mbrs Mbrs Mbrs Total City, State Lodge # Name 2013 2013 2013 2013 City, State Lodge # Name 2013 2013 2013 2013 Tonsberg 8-001 Oseberg 92 0 13 105 Haugesund 8-018 Haugaland 130 1 33 164 Kristiansand 8-003 Bernt Balchen 86 1 1 88 Sandnes 8-021 Leiv Eiriksson 67 0 0 67 Oslo 8-004 Christiania 81 1 1 83 Hauge I Dalane 8-022 Dalbuen 97 0 5 102 Trondheim 8-006 Nidaros 28 0 0 28 Hjelmeland 8-023 Ryfylke 83 0 2 85 Kvinesdal 8-007 Viking 93 0 2 95 8-999 Spirit New Century 13 0 0 13 Eidsvoll 8-009 Eidsvold 62 0 10 72 District 8 Total 1,128 7 89 1,249 Stavanger 8-011 Cleng Peerson 64 2 0 66 Lillehammer 8-012 Birkebeiner 22 0 0 22 Grand Total 42,972 1,747 6,350 57,274 Bergen Merged 8-013 Bergen 49 1 3 53 Arendal 8-015 Terje Vigen 77 0 13 90 * Active insurance non-dues paying members are individuals whose Hamar 8-017 Hamar 55 0 0 55 membership has lapsed but still have active insurance certificates. These members are included in the total column but no in the other columns. ** Lodge not instituted as of December 31, 2009

50 www.sonsofnorway .com

Congratulations and Best Wishes

to the

SONS OF NORWAY

on its

2014 International Convention



from your friends at

GRIFFITH, BALLARD & COMPANY

Consulting Actuaries

100 First Avenue N.E., Suite 117 Cedar Rapids, IA 52401

Steve Griffith Bradley H. Simanek John D. Ballard Mary S. Taylor

www.sonsofnorway.com 51 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED Independent Auditor’s IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Report

Independent Auditor’s Report

The Board of Directors Sons of Norway Minneapolis, Minnesota

Report on the Financial Statements We have audited the accompanying statutory financial statements of Sons of Norway (the Society), which comprise the statutory statements of admitted assets, liabilities, and surplus as of December 31, 2013 and 2012, and the related statutory statements of income and changes in surplus, and cash flows for the years then ended, and the related notes to the statutory financial statements.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting practices prescribed or permitted by the Minnesota Department of Commerce. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

www.eidebailly .com 1

4310 17th Ave. S. | P.O. Box 2545 | Fargo, ND 58108-2545 | T 701.239.8500 | F 701.239.8600 | EOE 52 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway Independent Auditor’s UNITED IN HERITAGE 2014 international convention Report Jacksonville, Florida | www.sonsofnorway2014.com

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 2 to the financial statements, the financial statements are prepared using accounting practices prescribed or permitted by the Minnesota Department of Commerce, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of Sons of Norway as of December 31, 2013 and 2012, or the results of its operations or its cash flows for the years then ended.

Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities, and surplus of Sons of Norway as of December 31, 2013 and 2012, and the results of its operations and its cash flows for the years then ended, on the basis of accounting described in Note 2.

Emphasis of Matter Regarding Permitted Practice As discussed in Note 2 to the financial statements, and in accordance with consent from the Minnesota Department of Commerce, the Society has recorded a valuation allowance to increase the carrying value of its home office. The Society has changed its presentation and disclosure of this financial statement element. There is no impact on the Statement of Operations as a result of recording this valuation allowance.

Fargo, North Dakota April 29, 2014

See Notes to Statutory Financial Statements

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2013 2012

Admitted Assets

Cash and Invested Assets Bonds $ 329,367,214 $ 317,191,981 Preferred stock 496,375 496,375 Mortgage loans on real estate 3,083,651 3,561,970 Home office property, net 2,973,717 3,131,208 Building valuation allowance 4,600,000 - Certificate loans 5,300,644 5,470,091 Cash and short-term investments 3,697,222 2,860,360 Receivable for securities 215,517 -

Total cash and invested assets 349,734,340 332,711,985

Receivables Receivable from reinsurers 22,763 203,656 Investment income due and accrued 3,834,499 3,775,377 Premiums deferred and uncollected (less loading of $125,377 and $107,661 in 2013 and 2012, respectively) 231,921 305,712

Total receivables 4,089,183 4,284,745

Unrealized Gain on Foreign Currency Translation - 11,793

Electronic Data Processing Equipment 31,971 33,782

Total admitted assets $ 353,855,494 $ 337,042,305

54 See Notes to Statutory Financialwww.sonsofnorway Statements .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway Independent Auditor’s UNITED IN HERITAGE 2014 international convention Report Jacksonville, Florida | www.sonsofnorway2014.com

Sons of Norway Statutory Statements of Admitted Assets, Liabilities and Surplus December 31, 2013 and 2012

2013 2012

Liabilities and Surplus

Liabilities Certificate and contract reserves Life $ 318,230,910 $ 309,256,950 Accident and health 159,422 158,599 Deposit type contracts 15,112,857 14,142,687 Certificate claims Life 726,876 216,272 Accident and health 7,637 8,155 Refund provisions 147,821 148,101 Advance premiums 14,720 25,042 Accrued expenses and other liabilities 1,643,118 1,644,358 Interest maintenance reserve 3,435,134 2,195,373 Asset valuation reserve 1,807,116 1,370,303 Unrealized loss on foreign currrency translation 14,801 -

Total liabilities 341,300,412 329,165,840

Surplus 12,555,082 7,876,465

Total liabilities and surplus $ 353,855,494 $ 337,042,305

See Notes to Statutory Financial Statements

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Sons of Norway Statutory Statements of Operations Years Ended December 31, 2013 and 2012

2013 2012

Revenue Premiums and annuity considerations $ 23,102,779 $ 24,129,975 Net investment income 16,462,376 16,508,609 Commissions and expense allowance on reinsurance ceded 197,271 237,934 Other income 767,794 500,798 40,530,220 41,377,316

Benefits and Expenses Death benefits 3,177,744 3,424,421 Surrender benefits 19,426,087 19,890,151 Other certificate benefits 1,418,997 1,645,705 Increase in aggregate reserves for life and accident and health contracts 8,974,783 9,181,536 Commissions on premiums and annuity considerations 1,323,625 1,431,480 General insurance expenses and fraternal expenses 4,831,516 4,639,393 Insurance, taxes, licenses and fees 243,058 255,313 Other expenses 17,716 9,316 39,413,526 40,477,315

Gain from Operations Before Certificateholder Refunds and Realized Capital Losses 1,116,694 900,001

Certificateholder Refunds 156,443 142,981

Gain from Operations Before Realized Capital Losses 960,251 757,020

Net Realized Capital Losses (Net of Transfers to IMR) (299,751) (299,114)

Net Income $ 660,500 $ 457,906

See Notes to Statutory Financial Statements

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Sons of Norway Statutory Statement of Changes in Surplus Years Ended December 31, 2013 and 2012

2013 2012

Surplus, Beginning of Year $ 7,876,465 $ 7,703,284

Net Income 660,500 457,906

Change in Nonadmitted assets (118,476) 102,995 Asset valuation reserve (436,813) (391,803) Net unrealized capital gains - permitted practice 4,600,000 - Net unrealized foreign exchange capital gain (loss) (26,594) 4,083 4,018,117 (284,725)

Surplus, End of Year $ 12,555,082 $ 7,876,465

See Notes to Statutory Financial Statements

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Sons of Norway Statutory Statements of Cash Flows Years Ended December 31, 2013 and 2012

2013 2012

Operating Activities Premium and annuity considerations $ 23,336,297 $ 24,329,793 Life and health claims paid (2,534,545) (3,946,077) Surrender benefits paid (19,426,087) (19,890,151) Other benefits paid to members (1,174,531) (1,370,129) Commissions and expenses paid (6,373,169) (6,352,438)

Cash from (used for) Operating Activities (6,172,035) (7,229,002)

Investment income received 16,381,438 16,233,487 Other income received 238,080 276,114

Net Cash from Operating Activities 10,447,483 9,280,599

Investing Activities Proceeds from investments sold, matured or repaid Bonds and stocks 25,094,797 36,805,544 Mortgage loans 478,318 607,954

Total proceeds from investments sold, matured or repaid 25,573,115 37,413,498

Cost of investments acquired Bonds (35,596,377) (48,346,127) Preferred stock (15,977) (3,350)

Total investments acquired (35,612,354) (48,349,477)

Net decrease in certificate loans 169,447 570,633

Net Cash used for Investing Activities (9,869,792) (10,365,346)

Financing Activities Cash provided Net deposit on deposit-type contracts and other insurance liabilities 632,982 (199,290) Other cash (applied) received (373,811) 201,865

Net Cash from Financing Activities 259,171 2,575

Net Change in Cash and Short-Term Investments 836,862 (1,082,172)

Cash and Short-Term Investments, Beginning of Year 2,860,360 3,942,532

Cash and Short-Term Investments, End of Year $ 3,697,222 $ 2,860,360

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Note 1 - Nature of Operations

Sons of Norway (the Society) is a fraternal benefit society incorporated in the State of Minnesota as a legal reserve fraternal society. The membership is comprised primarily of individuals of Norwegian birth, descent, or affiliation. The Society offers various forms of life, annuity, health, and disability insurance to its members in addition to providing fraternal services.

Note 2 - Summary of Significant Accounting Policies

Basis of Presentation

The accompanying statutory financial statements of the Society have been prepared in conformity with accounting practices prescribed or permitted by the Minnesota Department of Commerce, which differ from generally accepted accounting principles (GAAP). The more significant variances from GAAP are as follows:

1. Investments in bonds are reported at amortized cost or market value based on their National Association of Insurance Commissioners (NAIC) rating; for GAAP, such fixed maturity investments would be designated at purchase as held to maturity, trading or available for sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in operations for those designated as trading and as a separate component of other comprehensive income for those designated as available for sale.

2. Real estate owned and occupied by the Society is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expense include rent for the Society’s occupancy of those properties. Changes between depreciated cost and admitted asset investment amounts are credited or charged directly to unassigned surplus rather than income, as would be required under GAAP.

3. Under a formula prescribed by the NAIC, the Society defers the portion of realized capital gains and losses on sales of fixed income investments, principally bonds, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity. That net deferral is reported as the “interest maintenance reserve” (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of transfers to the IMR. Under GAAP, realized capital gains and losses would be reported in the income statement in the period that the assets giving rise to the gains and losses are sold.

4. The “asset valuation reserve” (AVR) provides a valuation allowance for invested assets. The AVR is determined by an NAIC-prescribed formula with changes reflected directly in surplus; AVR is not recognized for GAAP.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

5. The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future certificate revenues, would be deferred and amortized over the premium- paying period of the related certificates using assumptions consistent with those used in computing certificate benefit reserves. For universal life insurance and investment products, to the extent recoverable from future gross profits, deferred certificate acquisition costs would be amortized generally in proportion to the present value of expected gross income from surrender charges and investment, mortality and expense margins.

6. Certain assets designated as “nonadmitted,” are excluded from the accompanying balance sheets and are charged directly to surplus. Under GAAP, such assets would be recognized on the balance sheets.

7. Revenues for universal life and annuity certificates consist of the entire premium received, and benefits represent the death benefits paid. Under GAAP, premiums received in excess of certificate charges would not be recognized as premium revenue, and benefits would represent the excess of benefits paid over the certificate account value and interest credited to the account values.

8. Certain certificate reserves are calculated based on statutorily required interest and mortality assumptions rather than on estimated expected experience or actual account balances, as would be required under GAAP.

9. Certificate and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets, as would be required under GAAP.

10. Commissions allowed by reinsurers on business ceded are reported as income when received rather than being deferred and amortized with deferred certificate acquisition costs.

11. Certificate holder refunds are recognized in the current year for amounts payable in the following year, rather than over the term of the related certificates.

12. Cash and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding captions of cash and cash equivalents include cash balances and investments with initial maturities of three months or less.

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined, but are presumed to be material.

The State of Minnesota has adopted certain prescribed accounting practices, which differ from those found in NAIC SAP. The prescribed practices approved by the Minnesota Department of Commerce are not applicable to the Society’s statutory financial statements. The Minnesota Department of Commerce also has the right to permit other specific practices, which deviate from prescribed practices. The Society, with explicit permission from the Minnesota Department of Commerce, has recorded a valuation allowance to increase the carrying value of an real estate held for the production of income to its approximate market value which is higher than that allowed by the NAIC SAP. The valuation allowance did not have an effect on net income. Under GAAP, no valuation allowance would be recognized to increase the carry value of the real estate.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

The Society had the real estate appraised in 2012. The appraisal estimated the market value of the real estate to be approximately $10 million. The Society leases out approximately two thirds of the property to other tenants. The Minnesota Department of Commerce approved a valuation allowance to increase the carrying value of the real estate by $4.6 million, which, is the difference between the real estate leased to third parties and the original carrying value.

A reconciliation of the Society’s policyholder surplus between NAIC SAP and practices prescribed by the Minnesota Department of Commerce is shown below:

2013 2012

Surplus, Minnesota Department of Commerce Prescribed Practice $ 12,555,082 $ 7,876,465 Building Valuation Allowance (4,600,000) -

Surplus, NAIC SAP $ 7,955,082 $ 7,876,465

Investments

The Society has adopted SSAP 100, Fair Value Measurements. This defines fair value at the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for asset and liabilities required to be recorded at fair value, the Society considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance.

Bonds, mortgage loans, short-term investments, certificate loans, and home office property are stated at values prescribed by the NAIC, as follows:

Investments in bonds are carried at amortized book value using the scientific method with the exception of bonds with a National Association of Insurance Commissioners rating of 6 and those deemed to be other than temporarily impaired, which are carried at the lower of amortized book value or fair value.

Mortgage-backed and other asset-backed bonds are valued at amortized cost using the interest method, excluding anticipated prepayments at the date of purchase. The retrospective adjustment method is used to value all securities.

Preferred stocks are valued at cost.

Mortgage loans are reported at unpaid principal balances.

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost, which approximates market value.

Certificate loans are reported at unpaid principal balances.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Real estate occupied by the Society is reported at depreciated cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. The Society, with the explicit permission of the Minnesota Department of Commerce, recorded a valuation allowance to increase the carrying value of an office building held for the production of income to its approximate market value which is higher than that allowed by the NAIC SSAP. Effective September 30, 2013 the Society was allowed to increase the value of the income producing component of this property by recording a valuation allowance of $4,600,000 which increased the carrying value of the property and statutory surplus. If the Society was not allowed this alternative accounting treatment, the carrying value of the property would have been its depreciated cost of $2,973,717 at December 31, 2013, as compared to the reported carrying value of $7,573,717. There is no impact on the Statement of Operations as a result of recording this valuation allowance.

Realized capital gains and losses are determined using the specific identification basis. Declines in fair value of any investments below cost that are deemed to be other than temporary are recorded as realized losses resulting in a new cost basis for the investment. Other changes in admitted asset carrying amounts of bonds are credited or charged directly to unassigned surplus.

Furniture and Equipment

The admitted value of the Society’s electronic data processing equipment is limited to 3% of capital and surplus. The admitted portion is reported at cost, less accumulated depreciation of $446,938 and $426,996 at December 31, 2013 and 2012, respectively. Electronic data processing equipment is depreciated using the straight-line method over the lesser of its useful life or three years. Other furniture and equipment are depreciated using the straight-line method over their estimated useful life. Depreciation expense charged to operations in 2013 and 2012 was $81,622 and $142,433, respectively.

Premiums

Traditional life insurance premiums are recognized as revenue when due. Universal life premiums and annuity considerations are recorded as revenue when received. Accident and health premiums are earned pro rata over the terms of the certificates.

Certificate and Contract Reserves

Life insurance, annuity, health and disability benefit reserves are developed by generally recognized actuarial methods. Life insurance reserves are based on statutorily prescribed methods using specific interest rates and mortality tables. The interest rates used in valuation range from 3% to 5.5%. The primary mortality tables used are the 1958, 1980 and 2001 CSO (Commissioners Standard Ordinary) tables. The majority of life reserves are calculated using the Commissioners Reserve Valuation Method (CRVM). Annuity reserves are calculated using the Commissioners Annuity Reserve Valuation Method (CARVM) and an interest rate of 3.75% to 7.0% based on the year of issue. In the aggregate, the reserves set up by these methods provide reserves that are greater than or equal to the guaranteed certificate cash values or the amounts required by the Minnesota Department of Commerce. The Society waives deduction of deferred fractional premiums on the death of life certificate insureds and returns any premium beyond the date of death. Surrender values on certificates do not exceed the corresponding benefit reserves. Additional reserves are established when the results of cash flow testing under various interest rate scenarios indicate the need for such reserves or the net premiums exceed the gross premiums on any insurance in force.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

For substandard table ratings, mean reserves are based on 125% up to 500% of standard mortality rates. For flat extra ratings, mean reserves are based on the standard or substandard mortality rates increased by one to twenty- five deaths per thousand.

As of December 31, 2013 and 2012, the Society had $34,057,363 and $24,832,363, respectively, of insurance in force for which gross premiums are less than the net premiums according to the standard of valuation required by the Minnesota Department of Commerce. Reserves of $19,493 and $15,733 to cover the above insurance are included with certificate and contract reserves at December 31, 2013 and 2012, respectively.

Tabular interest, tabular less actuarial reserve released, and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies is calculated as one-hundredth of the product of such valuation rate of interest, times the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the year valuation.

The liabilities related to certificate holder funds left on deposit with the Society generally are equal to fund balances less applicable surrender charges.

Reinsurance

Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with those used in accounting for the original certificates issued and the terms of the reinsurance contracts.

Surplus Transactions

Changes in the AVR, nonadmitted assets, unrealized foreign currency translation and net unrealized capital losses are recorded as surplus transactions and do not affect the statements of operations.

Income Taxes

The Society qualifies as a tax-exempt corporation under Section 501(c)(8) of the Internal Revenue Code and is exempt from federal income taxes.

Foreign Currency Translation

Foreign-denominated assets are recorded in the statutory financial statements in U.S. dollars and have been translated at exchange rates in existence at each respective December 31 to arrive at the unrealized gain on foreign currency translation. The change in the net unrealized gain (loss) on foreign currency translation was ($26,594) and $4,083 in 2013 and 2012, respectively.

Certificate Holder Refunds

Refunds on participating certificates, which comprise substantially all of the Society’s insurance in force, are declared by the Board of Directors and are calculated based on expected mortality experience, investment income, and insurance operations expenses.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Use of Estimates

The preparation of statutory financial statements requires management to make estimates and assumptions that affect amounts reported in the statutory financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

Advertising Costs

All advertising and promotion costs are expensed when incurred. Advertising expense amounted to $52,005 and $69,774 for the years ended December 31, 2013 and 2012, respectively.

Current Vulnerability Due to Certain Concentration

The Society operates in a business environment which is subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to, interest rate risk, market risk, credit risk and legal and regulatory changes.

Concentration of Credit Risk

The Society maintains cash balances at various institutions. Periodically, balances in these accounts are temporarily in excess of federally insured limits.

Subsequent Events

Subsequent events were considered through February 22, 2014, for the statutory statement issued on February 22, 2014, and through April 29, 2014, for the audited financial statements issued on April 29, 2014.

Note 3 - Investments

The components of net investment income are summarized as follows:

2013 2012

Bonds $ 15,686,061 $ 15,551,734 Rental income 1,504,116 1,555,184 Certificate loans 380,131 402,107 Other 319,289 286,460 17,889,597 17,795,485 Less investment expenses (1,427,221) (1,286,876)

Net investment income $ 16,462,376 $ 16,508,609

Rental income includes $1,163,349 and $1,260,931 from tenants and imputed income for space occupied by the Society of $340,767 and $294,253 in 2013 and 2012, respectively.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

The amortized cost, gross unrealized gains and losses, and fair value of investments in bonds at December 31 were as follows:

2013

Gross Unrealized Carrying Fair Value Gains Losses Value

U.S. Government bonds and notes $ 3,295,565 $ 933,501 $ - $ 4,229,066 Industrial and miscellaneous bonds 285,104,033 21,752,990 5,256,461 301,600,562 Mortgage and other asset-backed securities 40,967,616 932,281 1,572,960 40,326,937

$ 329,367,214 $ 23,618,772 $ 6,829,421 $ 346,156,565

2012

Gross Unrealized Carrying Fair Value Gains Losses Value

U.S. Government bonds and notes $ 3,297,625 $ 1,530,673 $ - $ 4,828,298 Industrial and miscellaneous bonds 268,600,996 36,659,896 499,759 304,761,133 Mortgage and other asset-backed securities 45,293,360 1,863,706 2,252,339 44,904,727

$ 317,191,981 $ 40,054,275 $ 2,752,098 $ 354,494,158

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

The following table shows the investments’ gross unrealized losses and estimated fair value, aggregated by investment category and length of time that bonds and common stocks have been in a continuous unrealized loss position, at December 31, 2013 and 2012:

December 31, 2013

Less Than 12 Months 12 Months or Longer Total

Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses

Industrial and miscellaneous$ 55,831,646 $ 3,313,945 $ 15,305,211 $ 1,942,516 $ 71,136,857 $ 5,256,461 Mortgage and other asset-backed securities 7,895,708 712,860 7,154,570 860,100 15,050,278 1,572,960

Total temporarily impaired securities$ 63,727,354 $ 4,026,805 $ 22,459,781 $ 2,802,616 $ 86,187,135 $ 6,829,421

December 31, 2012

Less Than 12 Months 12 Months or Longer Total

Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses

Industrial and miscellaneous$ 14,933,132 $ 195,579 $ 4,612,153 $ 304,181 $ 19,545,285 $ 499,760 Mortgage and other asset-backed securities 297,110 981 11,144,688 2,251,357 11,441,798 2,252,338

Total temporarily impaired securities$ 15,230,242 $ 196,560 $ 15,756,841 $ 2,555,538 $ 30,987,083 $ 2,752,098

The Society regularly reviews its investment portfolio for factors that may indicate that a decline in fair value of an investment is other than temporary. Based on an evaluation of the prospects of the issuers, including, but not limited to, the Society’s intentions to sell or ability to hold the investments; the length of time and magnitude of the unrealized loss; and the credit ratings of the issuers of the investments, the Society has concluded that the declines in the fair values of the Society’s investments in bonds at December 31, 2013 and 2012 are temporary with the exception of eleven bond positions. In 2013, the Society determined that one security was permanently impaired and a write-down of $9,134 was necessary on that security. The other ten securities were permanently impaired in previous years, but in 2013 the Society recognized additional impairments totaling $358,420 on those securities. Total impairments recognized were $367,554 and $414,149 in 2013 and 2012, respectively.

A summary of the carrying value and fair value of the Society’s investments in bonds at December 31, 2013 by contractual maturity is as follows:

Carrying Fair Value Value

Due in one year or less $ 1,998,056 $ 1,998,053 Due after one year through five years 88,643,417 88,643,417 Due after five years through ten years 134,329,136 134,329,136 Due after ten years 64,116,755 64,116,755 289,087,364 289,087,361 Mortgage and other asset-backed securities 40,279,850 38,813,716

$ 329,367,214 $ 327,901,077

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Proceeds from the sale of bonds were $25,094,797 and $36,805,544 in 2013 and 2012, respectively. Gross realized gains of $1,811,224 and $2,038,805 and gross realized losses of $0 and $0 were realized on the sale of bonds during the years ended December 31, 2013 and 2012, respectively. During 2013 and 2012, there were $1,743,421 and $1,923,770 of the gross realized gains and $0 and $0 of the gross realized losses, respectively, transferred to the IMR.

At December 31, 2013 and 2012, investments with an admitted asset value of $198,920 and $199,847 were on deposit with government authorities or trustees to satisfy regulatory requirements.

Fair Value of Financial Instruments

The carrying value and estimated fair value of the Society’s financial instruments at December 31 are as follows:

2013 2012 Carrying Fair Carrying Fair Value Value Value Value

Assets Bonds $ 329,367,214 $ 346,156,565 $ 317,191,981 $ 354,494,158 Preferred stock 496,375 403,760 496,375 403,760 Mortgage loans 3,083,651 3,083,651 3,561,970 3,561,970 Certificate loans 5,300,644 5,300,644 5,470,091 5,470,091 Cash and short- term investments 3,697,222 3,697,222 2,860,360 2,860,360 Investment income due and accrued 3,834,499 3,834,499 3,775,377 3,775,377

Liabilities Annuity reserves 231,966,088 230,688,184 223,463,824 222,051,567 Refund provisions 147,821 147,821 148,101 148,101 Deposit-type contracts 15,112,857 15,112,857 14,142,687 14,142,687

In accordance with SSAP 100, the Society has established reported fair values for certain financial instruments. The fair value for financial instruments listed as Level 1 inputs are determined by reference to quoted market prices. The fair value for financial instruments listed as Level 2 inputs, while not derived from active markets, are determined through observation of quoted prices for significant other observable inputs. For Level 3 inputs, the fair value for financial instruments are determined through certain unobservable inputs. As of December 31, 2012, the Society did not have any financial instruments recorded based on fair value.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

The following summarizes the valuations of financial instruments measured at fair value:

Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs (Level 1) (Level 2) (Level 3) December 31, 2013 Building valuation allowance $ - $ - $ 4,600,000

Total $ - $ - $ 4,600,000

Assets measured at fair value using significant unobservable inputs (Level 3):

Total Gains Total Gains Purchases, Balance at Transfers Into Transfers Out (Losses) Included (Losses) Included Sales, and Balance at January 1, 2013 Level 3 of Level 3 in Net Income in Surplus Settlements December 31, 2013

Aggregate write-in for permitted practice $ - $ 4,600,000 $ - $ - $ 4,600,000 $ - $ 4,600,000

Totals $ - $ 4,600,000 $ - $ - $ 4,600,000 $ - $ 4,600,000

The Level 3 asset is the fair value building valuation allowance as permitted by the Minnesota Department of Commerce. This asset has been analyzed on a market approach with similar property valuations, forecasts of future rental incomes, and an evaluation by a certified appraiser.

Note 4 - Reinsurance

To control exposure to potential losses, the Society reinsures certain risks with other insurance companies, with the maximum risk retention on any one life equal to $100,000. The Society’s ceded reinsurance arrangements reduced certain items in the accompanying statutory-basis financial statements by the following amounts at December 31:

2013 2012

Certificate and contract reserves $ 3,286,927 $ 3,007,561

Premiums and annuity considerations $ 1,630,108 $ 1,705,948

Benefits $ 1,307,362 $ 1,019,434

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Reinsurance ceded contracts do not relieve the Society of its obligations to certificate holders. The Society has contingent liabilities with respect to reinsurance ceded in the event that the reinsurers cannot meet the obligations assumed under the reinsurance agreements. Consequently, allowances are established when necessary for amounts deemed uncollectible. The Society evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. At December 31, 2013 and 2012, the Society determined that it had no significant concentrations of credit risk and that no allowances were necessary for amounts recoverable from reinsurers.

Note 5 - Premiums and Considerations Deferred and Uncollected

Deferred and uncollected life insurance premiums and annuity considerations as of December 31, 2013 and 2012 were as follows:

2013 2012 Net of Net of Gross Loading Gross Loading

Ordinary new business $ 55,565 $ 19,294 $ 41,623 $ 18,053 Ordinary renewal 302,316 213,210 372,861 288,770

Total $ 357,881 $ 232,504 $ 414,484 $ 306,823

Note 6 - Annuity Reserves and Deposit Liabilities

The following are the withdrawal characteristics of annuity reserves and deposit liabilities as of December 31:

2013 2012 Percent of Percent of Amount Total Amount Total

Subject to discretionary withdrawal: At book value with surrender charge$ 58,371,524 23.5%$ 77,681,453 31.2% At book value (minimal or no charge for adjustment) 181,890,770 73.1% 153,823,819 61.8% Not subject to discretionary withdrawal provision 8,445,638 3.4% 7,678,565 3.1%

Total annuity actuarial reserves and deposit liabilities, gross $ 248,707,932 100.0%$ 239,183,837 96.2% www.sonsofnorway.com 17 69 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED Independent Auditor’s IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Report

Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Note 7 - Benefit Plan

The Society has two defined contribution plans that cover substantially all employees. Contributions to the plans are set annually by the Board of Directors as a percentage of eligible employee compensation. Employees may elect to make pretax contributions of 70% of base compensation or $17,000, whichever is less. Contributions charged to expense were $156,171 and $145,221 for the years ended December 31, 2013 and 2012, respectively. The fair value of plan assets as of December 31, 2013 and 2012 was $6,052,887 and $4,713,639, respectively.

Note 8 - Fraternal Dues

The Society assesses annual membership dues, which are utilized to offset fraternal expenses. At December 31, 2013 and 2012, there were $1,026,944 and $1,024,588 of membership dues, respectively, included as an offset to general insurance expenses and fraternal expenses in the statements of operations.

Note 9 - Home Office Property

Home office property, which excludes the portion of the real estate leased to third party tenants is recorded at cost less accumulated depreciation and is summarized as follows at December 31:

2013 2012

Home office property $ 7,538,403 $ 7,522,426 Less accumulated depreciation (4,564,686) (4,391,218)

$ 2,973,717 $ 3,131,208

The home office depreciation expense of $173,467 and $173,423 in 2013 and 2012, respectively, is included in investment expenses as a reduction of investment income.

Note 10 - Related Party Transactions

The Sons of Norway Foundation (the Foundation) is a separate not-for-profit entity sponsored by the Society. The purpose of the Foundation is to maintain funds obtained by bequests, gifts and donations to be used exclusively for charitable, scientific, literary and educational endeavors through scholarships, grants or loans.

The Foundation owns various Society life insurance certificates with a total value of $13,854 and $13,998 at December 31, 2013 and 2012, respectively. These certificates were donated to the Foundation’s Heritage and Culture Fund by various donors.

The Society provides and incurs the expense for certain bookkeeping and administrative services for the Foundation.

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Sons of Norway Notes to Statutory Financial Statements December 31, 2013 and 2012

Note 11 - Commitments and Contingencies

Various lawsuits can arise in the course of the Society’s business. In these matters, management feels at this time there are no matters that have a material effect upon the financial position of the Society. As of December 31, 2013 and 2012, the Society has no known contingencies.

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Independent Auditor’s Report on Supplementary Information

The Board of Directors Sons of Norway Minneapolis, Minnesota

We have audited the statutory financial statements of Sons of Norway as of and for the periods ended December 31, 2013 and 2012, and our report thereon dated April 29, 2014, which expressed an unmodified opinion on those financial statements, appears on page 1. Our audit was conducted for the purpose of forming an opinion on the basic statutory-basis financial statements taken as a whole. The accompanying supplementary information included in the Supplemental Schedule of Selected Statutory Basis Financial Data, Supplemental Schedule of Investment Risks Interrogatories, Supplemental Summary Investment Schedule and the Supplemental Reinsurance Interrogatories on pages 21 through 26 are required to be presented to comply with the National Association of Insurance Commissioners’ Annual Statement Instructions and the National Association of Insurance Commissioners’ Accounting Practices and Procedures Manual and are not a required part of the basic statutory-basis financial statements. Such information included in the schedules referred to above is the responsibility of management, is presented for purposes of additional analysis and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other procedures in accordance with the auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic statutory-basis financial statements taken as a whole.

Fargo, North Dakota April 29, 2014

72 www.sonsofnorway .com

www.eidebailly .com 20

4310 17th Ave. S. | P.O. Box 2545 | Fargo, ND 58108-2545 | T 701.239.8500 | F 701.239.8600 | EOE

IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway Independent Auditor’s UNITED IN HERITAGE 2014 international convention Report Jacksonville, Florida | www.sonsofnorway2014.com

Sons of Norway Supplemental Schedule of Selected Statutory Basis Financial Data December 31, 2013

Investment Income Earned U.S. Government bonds $ 258,890 Other bonds (unaffiliated) 15,427,171 Preferred stock 14,987 Mortgage loans 266,158 Real estate 1,504,116 Certificate loans and liens 380,131 Cash on hand and on deposit 51 Short-term investments - Other 38,093

Gross investment income $ 17,889,597

Real Estate Owned - Book Value Less Encumbrances $ 2,973,717

Mortgage Loans - Book Value Commercial mortgages $ 3,083,651

Bonds and Short-Term Investments by Class and Maturity, Including Mortgage-Backed Securities Bonds by maturity - statement value Due within 1 year or less $ 10,377,705 Over 1 year through 5 years 105,772,896 Over 5 years through 10 years 150,463,083 Over 10 years through 20 years 60,265,414 Over 20 years 6,600,084

Total by maturity $ 333,479,182

Bonds and short-term investments by class - statement value Class 1 $ 246,461,154 Class 2 79,232,927 Class 3 4,811,155 Class 4 2,122,022 Class 5 250,000 Class 6 601,924

Total by class $ 333,479,182

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Sons of Norway Supplemental Schedule of Selected Statutory Basis Financial Data December 31, 2013

Total Bonds Publicly Traded $ 293,348,553

Total Bonds Privately Placed $ 40,130,831

Short-Term Investments - Book Value $ 4,111,973

Cash on Deposit $ (414,751)

Life Insurance in Force Ordinary $ 356,592,000

Supplementary Contracts in Force Ordinary - not involving life contingencies Amount on deposit $ 1,260,210

Amount of income payable $ 549,932

Ordinary - involving life contingencies Amount of income payable $ 232,515

Annuity Contracts in Force Ordinary Deferred - fully paid - account balance $ 62,024,535

Deferred - not fully paid - account balance $ 171,825,902

Deposit Funds and Refund Accumulations Deposit funds - account balance $ 1,707,343

Refund accumulations - account balance $ 13,405,514

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Sons of Norway Supplemental Schedule of Investment Risks Interrogatories December 31, 2013

The Society’s total admitted assets as reported on page two of its Annual Statement are $353,855,494

Following are the ten largest exposures to a single issuer/borrower/investment, by investment category, excluding U.S. Government securities and those U.S. Government money market funds listed in Part 6 of the Purposes and Procedures Manual of the NAIC Securities Valuation Office as exempt, property occupied by the Society; and policy loans:

Percentage of Total Admitted Investment Category/Issuer Amount Assets

FNMA Strip Zero Coupon $ 9,635,217 2.723% Building Valuation Allowance 4,600,000 1.300% FHLB 3,482,976 0.984% Federal Farm Credit Bank 2,976,524 0.841% Federal Farm Credit Bank 2,540,906 0.718% FHLB 2,461,331 0.696% Kimberly Clark Corp Sr Nt 2,140,789 0.605% Deere & Company 2,139,934 0.605% Trans-Canada Pipelines Sr Nt 2,138,270 0.604% Southern Cal Edison Co FMB 2,116,219 0.598%

The Society’s total admitted assets held in bonds and short-term investments, by NAIC rating, are:

Percentage of Total Admitted NAIC Rating Amount Assets

NAIC - 1 $ 246,461,154 69.650% NAIC - 2 79,232,927 22.391% NAIC - 3 4,811,155 1.360% NAIC - 4 2,122,022 0.600% NAIC - 5 250,000 0.071% NAIC - 6 601,924 0.170%

$ 333,479,182 94.242%

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Sons of Norway Supplemental Schedule of Investment Risks Interrogatories December 31, 2013

Following are the Society’s total admitted assets held in foreign investments (regardless of whether there is any foreign currency exposure), excluding Canadian investments of $12,614,981.

Aggregate foreign investment exposure categorized by NAIC sovereign rating:

Percentage of Total Admitted Amount Assets

Countries rated NAIC - 1 $ 24,300,181 6.867% Countries rated NAIC - 2 - - Countries rated NAIC - 3 or below 257,466 0.073%

Two largest foreign investment exposures to a single country, categorized by the country’s NAIC sovereign rating:

Percentage of Total Admitted Amount Assets

Countries rated NAIC - 1 United Kingdom $ 6,536,611 1.847% Australia 3,040,951 0.859%

Countries rated NAIC - 2 Aruba - -

Countries rated NAIC - 3 or below Barbados 257,466 0.073%

Ten largest nonsovereign (i.e., nongovernmental) foreign issues:

Percentage of Total Admitted Amount Assets

Novartis Secs Invt Ltd Gtd Nt $ 1,997,959 0.565% Covidien Intl Fin SA Sr Nt 1,968,680 0.556% Deutsche Bank AG London Sr Nt 1,496,639 0.423% Nordea Bank AB Sr Nt 144a 1,494,547 0.422% Temasek Fincl 1 Ltd Gtd Sr Nt 144a 1,489,734 0.421% Diageo Capital PLC Glbl Nt 1,063,851 0.301% British Telecom Plc Bd 1,051,502 0.297% BHP Billiton Fin USA Ltd Gtd Sr Nt 1,046,084 0.296% Elec De France SA 144a Nt 1,011,433 0.286% Weatherford Intl Ltd Gtd Sr Nt 1,002,470 0.283%

Assets held in Canadian investments are 3.0% of the Society’s total assets.

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Sons of Norway Summary Investment Schedule December 31, 2013

Admitted Assets as Reported in the Gross Investment Holdings * Annual Statement

Amount Percentage Amount Percentage

Bonds U.S. Treasury securities $ 3,295,562 0.94% $ 3,295,562 0.94% U.S. Government agency and corporate obligations (excluding mortgage- backed securities) Issued by U.S. Government-sponsored agencies 9,635,217 2.76% 9,635,217 2.76% Securities issued by states, territories and possessions and political subdivisions in the U.S. 23,877,318 6.83% 23,877,318 6.83% Revenue and assessment obligation 25,129,508 7.19% 25,129,508 7.19% Mortgage-backed securities (includes residential and commercial MBS) Pass-through securities Guaranteed by GNMA 59,454 0.02% 59,454 0.02% Issued by FNMA and FHLMC 8,220,427 2.35% 8,220,427 2.35% CMOs and REMICs Issued or guaranteed by GNMA, FNMA, FHLMC, or VA 3,575,918 1.02% 3,575,918 1.02% Privately issued and collateralized by MBS issued or guaranteed or FHLMC 3,788,976 1.08% 3,788,976 1.08% All other privately issued 13,661,164 3.91% 13,661,164 3.91% Other debt and other fixed income securities (excluding short term) Unaffiliated domestic securities (includes credit tenant loans rated by the SVO) 202,521,280 57.91% 202,521,280 57.91% Unaffiliated foreign securities 35,602,390 10.18% 35,602,390 10.18% Preferred Stocks Unaffiliated 496,375 0.14% 496,375 0.14% Mortgage Loans Commercial loans 3,083,651 0.88% 3,083,651 0.88% Real Estate Investments Property held for production of income 7,573,717 2.17% 7,573,717 2.17% Policy Loans 5,300,644 1.52% 5,300,644 1.52% Receivable or Securities 215,517 0.06% 215,517 0.06% Cash, Cash Equivalents and Short-Term Investments 3,697,222 1.06% 3,697,222 1.06%

$ 349,734,340 100.00%$ 349,734,340 100.00%

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Sons of Norway Supplemental Reinsurance Interrogatories December 31, 2013

1.1 Are any of the reinsurers listed in Schedule S as non-affiliated, owned in excess of 10% or controlled, either directly or indirectly, by the Society or any representative, officer, trustee, or director of the Society? Yes No X

1.2 Have any policies issued by the Society been reinsured with a company chartered in a country other than the United States which is owned in excess of 10% or controlled directly or indirectly by an insured, a beneficiary, a creditor of an insured or any other person not primarily engaged in the insurance business? Yes No X

2.1 Does the Society have any reinsurance agreements in effect under which reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits? Yes No X

2.2 Does the Society have any reinsurance agreements in effect such that the amounts of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsurance policies? Yes No X

3.1 What is the estimated amount of the aggregate reduction in surplus, for agreements not reflected in Section 2 above, of termination of all reinsurance agreements, by either party, as of the date of this statement? Where necessary, the Society may consider the current or anticipated experience of the business reinsured in making this estimate. $0

3.2 Have any new agreements been executed or existing agreements amended, since January 1 of the year of this statement, to include policies or contracts which were in- force or which had existing reserves established by the Society as of the effective date of the agreement? Yes No X

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SONS OF NORWAY ANNUAL BUDGET BY LINE OF BUSINESS - 2014

GRAND TOTAL FRATERNAL VIKING REVENUE TOTAL INSURANCE INVESTMENT FRATERNAL SERVICE MAGAZINE Premium and Annuity Considerations 23,735,000 23,735,000 Other Certificateholder Deposits 400,000 400,000 Commissions on Reinsurance Ceded 285,000 285,000 Other 445,000 445,000 Gross Investment Income 18,440,000 18,440,000 Fraternal Benefit Income: Membership Dues 1,005,000 1,005,000 870,000 135,000 Merchandise Sales 35,000 35,000 35,000 Services 150,000 150,000 40,000 110,000 TOTAL REVENUE 44,495,000 24,865,000 18,440,000 1,190,000 945,000 245,000

BENEFITS & EXPENSES Benefits to Certificateholders 28,285,000 28,285,000 Increase in Reserves for Future Benefits 5,480,000 5,480,000 Commissions Paid to Field Staff 1,465,000 1,465,000 Taxes, Licenses, and Fees 620,000 195,000 365,000 60,000 50,000 10,000 Depreciation on Real Estate 171,563 171,563 Sub-total 36,021,563 35,425,000 536,563 60,000 50,000 10,000

GENERAL EXPENSES Actuarial and Audit Fees 108,000 79,751 25,440 2,809 2,120 689 Advertising 85,600 57,600 28,000 28,000 Association Dues 22,575 13,050 9,525 9,525 Bank Charges 30,000 18,270 2,250 9,480 7,920 1,560 Books and Periodicals 35,350 32,194 340 2,816 2,390 426 Depr., Maint., & Rental of Equipment 356,864 258,796 43,576 54,492 51,183 3,309 District Fraternal Funds Program 46,000 46,000 46,000 Employee 401k Contribution 148,261 91,989 8,715 47,557 38,340 9,217 Employee Group Insurance 229,756 144,368 15,846 69,542 58,555 10,987 Field Expense Allowance 159,400 159,400 Field Staff 401k Contribution 11,000 11,000 Field Staff Conferences 152,500 152,500 Fraternal Promotion 127,850 4,750 123,100 123,100 Insurance & Bonding 118,766 70,313 31,431 17,022 14,157 2,865 International Convention 75,000 45,675 5,625 23,700 19,800 3,900 International Leadership Conference 15,000 15,000 15,000 Investment Advisor Fee 277,500 277,500 Legal Fees and Expenses 187,000 78,540 7,480 100,980 95,370 5,610 Lodge Revenue Sharing 27,000 27,000 Management Consulting Fees 68,600 44,471 5,701 18,428 15,353 3,075 Medical Exam & Inspection Report Fees 118,000 118,000 Merchandise Cost 45,500 45,500 45,500 Official Publication 681,500 681,500 681,500 Other Employee Welfare 61,060 36,531 4,961 19,568 16,869 2,699 Outside Labor and Services 391,551 287,686 3,756 100,109 97,584 2,525 Postage and Express 191,500 130,900 60,600 60,600 Printing and Supplies 202,570 127,826 524 74,220 72,893 1,327 Real Estate Expenses 330,624 330,624 Rent 387,278 246,929 17,195 123,154 102,861 20,293 Salaries & Wages 2,462,957 1,454,895 194,391 813,671 657,297 156,374 Telephone 41,775 25,330 1,049 15,396 14,340 1,056 Travel and Entertainment 296,300 203,691 16,375 76,234 60,701 15,533 Other 10,800 10,800 Sub-total General Expenses 7,503,437 3,932,255 992,779 2,578,403 1,655,458 922,945 TOTAL BENEFITS AND EXPENSES 43,525,000 39,357,255 1,529,342 2,638,403 1,705,458 932,945

Gain (Loss) Before Allocation of Investment Inc. 970,000 (14,492,255) 16,910,658 (1,448,403) (760,458) (687,945) Allocation of Net Investment Income 16,910,658 (16,910,658) Refunds to Certificateholders 145,000 145,000

GAIN (LOSS) FROM OPERATIONS 825,000 2,273,403 (1,448,403) (760,458) (687,945)

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SONS OF NORWAY STATEMENT OF OPERATIONS BY LINE OF BUSINESS - 2013

GRAND TOTAL FRATERNAL VIKING REVENUE TOTAL INSURANCE INVESTMENT FRATERNAL SERVICE MAGAZINE Premium and Annuity Considerations 23,102,779 23,102,779 Other Certificateholder Deposits 207,102 207,102 Commissions on Reinsurance Ceded 197,271 197,271 Other 560,692 560,692 Gross Investment Income 17,889,597 17,889,597 Fraternal Benefit Income: Membership Dues 1,026,944 1,026,944 849,087 177,857 Merchandise Sales 31,709 31,709 31,709 Services 135,954 135,954 23,754 112,200 TOTAL REVENUE 43,152,048 24,067,844 17,889,597 1,194,607 904,550 290,057

BENEFITS & EXPENSES Benefits to Certificateholders 24,022,828 24,022,828 Increase in Reserves for Future Benefits 8,974,783 8,974,783 Commissions Paid to Field Staff 1,323,625 1,323,625 Taxes, Licenses, and Fees 593,430 191,845 350,372 51,213 42,660 8,553 Depreciation on Real Estate 173,467 173,467 Sub-total 35,088,133 34,513,081 523,839 51,213 42,660 8,553

GENERAL EXPENSES Actuarial and Audit Fees 84,051 48,840 31,710 3,501 2,642 859 Advertising 52,005 36,304 15,701 15,701 Association Dues 18,301 10,567 7,734 7,734 Bank Charges 28,069 19,474 1,649 6,946 5,803 1,143 Books and Periodicals 34,978 34,166 200 612 532 80 Depr., Maint., & Rental of Equipment 359,406 282,054 13,481 63,871 61,931 1,940 District Fraternal Funds Program 47,424 47,424 47,424 Employee 401k Contribution 147,242 91,144 8,833 47,265 37,988 9,277 Employee Group Insurance 211,493 132,772 14,590 64,131 54,015 10,116 Field Expense Allowance 169,168 169,168 Field Staff 401k Contribution 8,929 8,929 Field Staff Conferences 155,097 155,097 Fraternal Promotion 65,252 4,600 60,652 60,652 Insurance & Bonding 81,703 64,667 1,673 15,363 12,777 2,586 International Convention 74,131 45,146 5,560 23,425 19,570 3,855 Investment Advisor Fee 229,737 229,737 Legal Fees and Expenses 264,259 110,989 10,570 142,700 134,772 7,928 Lodge Revenue Sharing 24,990 24,990 Management Consulting Fees 21,915 15,864 1,430 4,621 3,850 771 Medical Exam & Inspection Report Fees 102,998 102,998 Merchandise Cost 21,028 21,028 21,028 Official Publication 653,751 653,751 653,751 Other Employee Welfare 43,978 27,547 2,360 14,071 12,481 1,590 Outside Labor and Services 360,994 259,101 2,436 99,457 98,139 1,318 Postage and Express 158,245 96,072 10 62,163 62,157 6 Printing and Supplies 152,579 122,476 381 29,722 29,491 231 Real Estate Expenses 453,785 453,574 211 211 Rent 340,766 217,272 15,130 108,364 90,508 17,856 Salaries & Wages 2,307,483 1,409,830 96,122 801,531 649,247 152,284 Telephone 36,579 22,948 885 12,746 11,962 784 Travel and Entertainment 219,080 164,406 13,051 41,623 35,121 6,502 Other 17,805 17,805 Sub-total General Expenses 6,947,221 3,695,226 903,382 2,348,613 1,475,736 872,877 TOTAL BENEFITS AND EXPENSES 42,035,354 38,208,307 1,427,221 2,399,826 1,518,396 881,430

Gain (Loss) Before Allocation of Investment Inc. 1,116,694 (14,140,463) 16,462,376 (1,205,219) (613,846) (591,373) Allocation of Net Investment Income 16,462,376 (16,462,376) Refunds to Certificateholders 156,443 156,443

GAIN (LOSS) FROM OPERATIONS 960,251 2,165,470 (1,205,219) (613,846) (591,373)

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SONS OF NORWAY STATEMENT OF OPERATIONS BY LINE OF BUSINESS - 2012

GRAND TOTAL FRATERNAL VIKING REVENUE TOTAL INSURANCE INVESTMENT FRATERNAL SERVICE MAGAZINE Premium and Annuity Considerations 24,129,975 24,129,975 Other Certificateholder Deposits 193,403 193,403 Commissions on Reinsurance Ceded 237,934 237,934 Other 307,395 307,395 Gross Investment Income 17,795,485 17,795,485 Fraternal Benefit Income: Membership Dues 1,024,588 1,024,588 842,390 182,198 Merchandise Sales 31,394 31,394 31,394 Services 187,329 187,329 46,523 140,806 TOTAL REVENUE 43,907,503 24,868,707 17,795,485 1,243,311 920,307 323,004

BENEFITS & EXPENSES Benefits to Certificateholders 24,960,277 24,960,277 Increase in Reserves for Future Benefits 9,181,536 9,181,536 Commissions Paid to Field Staff 1,431,480 1,431,480 Taxes, Licenses, and Fees 589,673 207,151 334,359 48,163 40,120 8,043 Depreciation on Real Estate 173,423 173,423 Sub-total 36,336,389 35,780,444 507,782 48,163 40,120 8,043

GENERAL EXPENSES Actuarial and Audit Fees 108,374 76,447 28,752 3,175 2,396 779 Advertising 69,773 53,549 16,225 16,225 Association Dues 16,585 9,518 7,067 7,067 Bank Charges 28,524 17,046 2,202 9,277 7,750 1,527 Books and Periodicals 36,179 35,495 232 452 367 85 Depr., Maint., & Rental of Equipment 372,379 292,018 14,515 65,846 63,351 2,495 District Fraternal Funds Program 49,138 49,138 49,138 Employee 401k Contribution 133,594 82,695 8,016 42,884 34,467 8,416 Employee Group Insurance 238,443 149,294 16,617 72,533 61,012 11,521 Field Expense Allowance 187,896 187,896 Field Staff 401k Contribution 11,626 11,626 Field Staff Conferences 137,384 137,384 Fraternal Promotion 75,360 6,078 69,282 69,282 Insurance & Bonding 66,624 52,138 1,423 13,063 10,864 2,199 International Convention 38,150 23,233 2,861 12,055 10,072 1,984 Investment Advisor Fee 179,218 179,218 Legal Fees and Expenses 174,138 73,138 6,966 94,035 88,811 5,224 Lodge Revenue Sharing 24,549 24,549 Management Consulting Fees 5,801 5,533 63 205 171 34 Medical Exam & Inspection Report Fees 112,665 112,665 Merchandise Cost 27,088 27,088 27,088 Official Publication 657,355 657,355 657,355 Other Employee Welfare 37,854 22,469 2,514 12,871 11,453 1,418 Outside Labor and Services 384,981 239,165 47,493 98,324 97,025 1,299 Postage and Express 153,029 84,278 16 68,735 68,726 9 Printing and Supplies 158,591 110,318 624 47,649 46,726 922 Real Estate Expenses 346,117 346,117 Rent 294,253 187,616 13,065 93,572 78,154 15,419 Salaries & Wages 2,259,052 1,390,457 92,806 775,789 627,640 148,149 Telephone 40,057 24,794 1,130 14,132 13,137 995 Travel and Entertainment 236,567 164,763 14,465 57,339 49,871 7,467 Other 9,768 9,768 Sub-total General Expenses 6,671,113 3,583,929 779,094 2,308,090 1,440,793 867,297 TOTAL BENEFITS AND EXPENSES 43,007,502 39,364,373 1,286,876 2,356,253 1,480,913 875,340

Gain (Loss) Before Allocation of Investment Inc. 900,001 (14,495,666) 16,508,609 (1,112,942) (560,606) (552,336) Allocation of Net Investment Income 16,508,609 (16,508,609) Refunds to Certificateholders 142,981 142,981

GAIN (LOSS) FROM OPERATIONS 757,020 1,869,962 (0) (1,112,942) (560,606) (552,336)

www.sonsofnorway.com 81 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Board & Staff Expenses Jacksonville, Florida | www.sonsofnorway2014.com 2010 2,750.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 7,250.00 3,750.00 2,500.00 2,500.00 2,500.00 $2,750.00 $36,500.00 2011 2,750.00 2,750.00 7,250.00 3,750.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 $2,750.00 $36,750.00 Honorarium 2012 2,500.00 2,750.00 4,833.36 3,750.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 $2,750.00 $34,083.36 Start August 2010 Start August 2012 Through August 2010 Through August 2012 Executive Committee Member Excludes salaries (f) (a) (c) (e) (b) (d) 2013 Notes 2,750.00 3,750.00 2,750.00 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 2,750.00 2,500.00 2,500.00 $7,250.00 $36,750.00 2010 691.21 674.00 1,513.96 7,023.06 2,597.80 5,822.55 3,164.42 2,327.50 3,989.85 9,884.62 1,175.55 7,026.87 4,635.84 2,055.44 2,080.02 4,130.41 5,085.24 1,471.55 1,454.67 6,501.39 28,212.41 37,324.88 $81,104.30 $14,443.58 $29,754.31 $101,936.83 2011 527.84 6,461.07 2,699.14 2,440.15 6,524.24 2,965.71 6,580.66 3,745.49 1,573.93 4,133.53 4,201.74 1,562.18 5,256.50 3,443.73 7,912.55 $8,735.71 27,230.88 34,103.75 10,536.12 $74,549.66 $88,129.36 $22,044.10 2012 Travel Expenses Travel Travel Expenses Travel 572.29 1,921.84 3,252.67 3,600.02 1,281.06 4,343.75 4,427.59 4,032.96 1,505.13 4,160.21 1,782.13 4,007.70 2,754.16 3,321.22 1,567.00 4,708.14 3,665.54 5,655.89 $7,172.93 17,055.62 31,336.74 33,793.56 $74,551.88 $30,761.52 $102,127.79 0.00 2013 731.57 4,104.11 7,120.13 3,382.75 3,421.46 2,152.84 3,137.90 6,596.88 6,501.96 2,522.95 3,513.56 6,152.22 3,536.22 5,607.99 2,280.65 7,781.97 39,115.44 $6,261.72 26,260.69 $83,342.24 $84,020.50 $27,179.73 e c,e Notes c b,e c e c e d,e b d,e a d b a a a Board and Staff Expenses Kristiansen, Marit Gene Brandvold Board Members Current Jostein Bakken Peterson, Ralph Sherrill Swenson Tehven, John Tehven, Erik Brochmann Fosmoe, Bill Rude, Dan Hoover, Bob Hoover, Gythfeldt, Audun Stevenson, Erlene Berntsen, Barbara Larson, Marci Meals & Conferences Staff (f) Eivind Heiberg, Carlson, Leonard Nelson, Elaine Knutson, Ray Stiller, Dean Stiller, Nelson, Dean Hockert, Rachele Olson, Cindy Kelly, Janie Kelly, Pederson, Linda Gill, Diane Wnek, Mike Stubbings, Ron Granly, Ernst Granly, Former Members

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Sons of Norway Investment Portfolio The assets of the Sons of Norway are invested to: * Meet conservative investment philosophy * Provide financial integrity to meet obligations * Provide competitive rates of return on insurance products

Sons of Norway’s assets are invested primarily in a diversified portfolio of investment grade bonds as required by the investment policy ad- opted by the Society’s Board of Directors. To ensure a high level of expertise in management of the portfolio an outside investment advisor is used. At December 31, 2013 94% of our invested assets are in bonds. The remaining 6% consists of real estate (headquarters building), certificate loans, commercial mortgage loans, short-term investments and cash.

As required by the investment policy, the credit quality of the portfolio will be maintained at its current high investment grade level. This helps to insulate the portfolio from credit risk problems thereby providing our certificate owners with a high level of safety. Shown below is the credit quality of the bond portfolio at December 31, 2012 and 2013:

December 31, 2012 December 31, 2013 Credit Quality Amount Percent Amount Percent US Treasury & Agencies $ 23,273,354 7.3% $ 23,108,229 7.0% AAA, AA, A 203,279,320 64.1% 219,240,952 66.6% BBB 78,776,931 24.9% 79,232,927 24.0% Sub-total investment grade 305,329,605 96.3% 321,582,108 97.6% Less than investment grade 11,862,376 3.7% 7,785,106 2.4% Total bonds $317,191,981 100.0% $329,367,214 100.0%

Amounts in the less than investment grade category are the result of ratings declines after purchase. The portfolio manager has discretion regarding the sale of these bonds.

Diversification of the investments in the portfolio by sector, industry, issuer, size, and maturity minimizes both interest rate risk and credit risk. The Society’s portfolio is required to be well diversified according to the Board approved investment policy. The year-end 2012 and 2013 sector allocation and contractual maturity distribution of the portfolio are shown below:

December 31, 2012 December 31, 2013 Sector Amount Percent Amount Percent US Treasury Bonds and Notes $23,273,354 7.3% $ 23,108,229 7.0% US Government Agencies 40,890,291 12.9% 58,642,043 17.8% Foreign Bonds 25,102,498 7.9% 23,195,493 7.1% Industrial & Miscellaneous Bonds 182,632,479 57.6% 203,266,499 61.7% Mortgage and Other Asset-backed Securities 45,293,359 14.3% 52,681,890 6.4% Total bonds $317,191,981 100.0% $303,646,047 100.0%

December 31, 2012 December 31, 2013 Maturity Distribution Amount Percent Amount Percent Due in 1 year or less $7,603,467 2.4% $6,265,732 1.9% Due after 1 year through 5 years 70,555,924 22.2% 105,772,896 32.1% Due after 5 years through 10 years 183,914,928 58.0% 150,463,083 45.7% Due after 10 years through 20 years 46,731,704 14.7% 60,265,414 18.3% Due after 20 years 8,385,958 2.7% 6,600,084 2.0% Total bonds $317,191,981 100.0% $329,367,209 100.0%

www.sonsofnorway.com 83 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Glossary of Terms Jacksonville, Florida | www.sonsofnorway2014.com

Admitted Assets: Assets recognized and accepted by state insurance laws in determining the solvency of insurers or reinsurers. These assets are the only ones allowed to be included as assets on an insurance company’s statutory balance sheet.

Amortized Value: The cost of bonds less the accumulated amortization of premium or plus the accumulated accrual of discount, from the date of purchase.

Asset Valuation Reserve (AVR): A reserve calculation that provides for the volatile incidence of asset losses (default risk) and appropriate recognition of the long-term expectations for equity type investments (market value risk).

Carrying Value: Net amount at which assets and liabilities are reported on the balance sheet.

Cash Flow: A Statement of Cash Flows measures the flow of money in and out of a business. One of four financial statements found in the annual report, it categorizes a company’s cash receipts and disbursements for a given fiscal year by three major activities: operations, investments and financing

Ceded Reinsurance Arrangements (Cede): To pass on to another insurer (the reinsurer) all or part of the insurance written by an insurer (the ceding insurer) with the object of reducing the possible liability of the latter.

Certificate and Contract Reserves:Liabilities established to assure that future policy benefits such as death claims can be paid. These reserves are required both by law and actuarial theory to ensure fulfillment of commitments guaranteed to certificate holders and their beneficiaries, even though the obligations may not be due for many years.

Defined Benefit Plan:A type of retirement plan in which a specified monthly benefit (pension) is paid to retirees. The monthly benefit is calculated by formula based on years of service and salary.

Defined Contribution Plan:A type of retirement plan in which contributions are specified based on a formula but the retirement benefit is not specified.

Equity Based Investments: Investments in which the investor has ownership in the issuer, such as common stock.

Fair Value: The price that a property would bring in a competitive open market under all conditions requisite to a fair sale. Quoted market prices may be fair value, where such a market exists.

Generally Accepted Accounting Principles (GAAP): A method for reporting the financial results of a business using a going-concern basis. GAAP assigns income and expenses to their proper period, as distinguished from the more conservative requirements of statutory accounting affecting insurers.

IMR (Interest Maintenance Reserve): The IMR captures the realized capital gains and losses on fixed income investments resulting from changes in the general level of interest rates and amortizes them into investment income over the remaining life of the investments sold.

Investment Grade Bonds: Bonds rated in one of the top four credit rating categories by one of the ratings agencies such as Standard & Poor’s or Moody’s.

Material: An amount is considered to be material and cannot be ignored if its effect on financial statements is important to users.

NAIC (National Association of Insurance Commissioners):An organization of the Chief Insurance regulatory officials of the fifty states, the District of Columbia and four U.S. territories. It facilitates the regulation of multi-state companies through uniform reporting requirements, standardized procedures for financial examination, and uniform regulatory procedures embodied in Model Acts and Regulations.

Net Realized Capital Losses: The excess of carrying value over consideration received on sale of assets.

Non-Admitted Assets: Assets owned by an insurance company which are not recognized for solvency purposes by state insurance laws or insurance department regulations (e.g., premiums dues and uncollected past ninety days, and furniture and fixtures, among others).

Premiums – Deferred and Uncollected: An asset established when premiums are paid more frequently than annually, e.g., monthly or quarterly, that is equal to the remainder of the year’s premium.

Publicly Traded versus Privately Traded Income Securities: Publicly traded income securities are traded on major exchanges such as the New York Stock Exchange. Privately traded income securities are sold directly to a limited number of institutional investors, avoiding the need for the registration with regulators if the securities are purchased for investment as opposed to resale

Statutory Accounting Principles (SAP): Those principles required by state law which must be followed by insurance companies in submitting their financial statements to state insurance departments. Such principles differ from generally accepted accounting principles (GAAP) in some important respects (SAP requirements are generally more conservative.)

Unassigned Surplus: The undistributed and unappropriated amount of surplus at the balance sheet date. This surplus represents funds that are available to meet unpre- dictable contingencies of an unspecified nature and losses from future operations. 84 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway Sons of Norway Foundation UNITED IN HERITAGE 2014 international convention Statement of Financial Position Jacksonville, Florida | www.sonsofnorway2014.com

December 31 Assets 2013 2012 Long term investments: Bond mutual funds 1,770,511 1,410,595 Common stocks 2,202,920 1,657,069 Equity mutual funds 991,746 996,552 Real Estate Investment Trust mutual funds 0 17,686 Life insurance policies 13,384 13,998 Total long term investments 4,978,561 4,095,900

Short term investments and cash Money market fund 536,197 220,266 Cash 59,506 122,222 Total short term investments and cash 595,703 342,488

Assets held under charitable remainder unitrust 454,592 405,599 Contributions receivable 85,550 400,383 Interest receivable 2,972 3,849 Total assets 6,117,378 5,248,219

Liabilities and net assets Accounts payable 22,638 17,624 Accrued liability 0 2,672 Total liabilities 22,638 20,296

Net Assets Unrestricted Current unrestricted 363,150 259,165 Heritage and Culture Fund 34,674 30,652 Transfer to deficient TR funds 0 (20,310) Total unrestricted 397,824 269,507

Board designated Astrid G. Cates Fund 68,019 64,176 Humanitarian/Beinhauer Fund 342,604 303,376 Johansson OSS 60,195 52,288 Lund Fund 35,671 30,987 Total Board Designated 506,489 450,827

Temporarily restricted Gene and Shirley Moe Unitrust 454,592 405,600 Evenson Fund 67,473 60,345 Norex Charitable Fund 5,647 5,022 Tronvold Fund 198,808 172,699 Carl M. Saltveit Scholarship Fund 28,016 16,155 Dan & Betty Rude Scholarship Fund 7,661 2,743 Draxten Memorial Fund 19,246 0 Heritage and Culture Fund 108,199 25,522 Humanitarian Fund 231,279 161,060 Kenneth Algot Nelson Fund 29,122 29,374 King Olav V Fund 73,418 39,791 Lund Fund 9,920 2,067 Nancy Lorraine Jensen Memorial Scholarship Fund 188,336 49,562 Orel and Marie Winjum Scholarship Fund 10,753 3,491 Warne Fund 2,029 6 Total temporarily restricted 1,434,499 973,437

(Sons of Norway Foundation Statement of Financial Position continued on next page.) www.sonsofnorway.com 85 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED Sons of Norway Foundation IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Statement of Financial Position (Continued)

December 31 Assets 2013 2012

Permanently restricted Carl M. Saltveit Scholarship Fund 111,921 86,713 Dan & Betty Rude Scholarship Fund 25,224 21,224 Draxten Memorial Fund 328,264 326,335 Heritage and Culture Fund 662,787 652,051 Humanitarian Fund 409,212 396,423 Kenneth Algot Nelson Fund 290,589 246,086 King Olav V Fund 245,274 242,611 Lund Fund 51,917 50,269 Nancy Lorraine Jensen Memorial Scholarship Fund 1,569,286 1,475,352 Orel and Marie Winjum Scholarship Fund 40,529 35,989 Warne Fund 20,925 1,100 Total permanently restricted 3,755,928 3,534,152 Total net assets 6,094,740 5,227,923

Total liabilities and net assets 6,117,378 5,248,219

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2013 Unrestricted Board Designated Temp. Restricted Perm. Restricted Total Revenues and other support Contributions 67,703 606 42,078 185,064 295,451 Investment income 4,956 8,870 82,450 208 96,484 Merchandise sales (net of expenses) -- -- 463 -- 463 Net realized and unrealized capital gains (losses) 44,080 69,967 594,021 42,985 751,053 Transfers due to deficient TR funds 20,310 -- (20,310) -- 0 Net assets released from restriction 215,614 28,507 (237,640) (6,481) 0 Total revenues and other support 352,663 107,950 461,062 221,776 1,143,451 Expenses Grants 143,240 143,240 Salary and benefits 75,677 75,677 Board 6,459 6,459 Interest 8,230 8,230 General administration 3,329 3,329 Travel 4,161 4,161 Professional fees 12,140 12,140 Outside services 15,955 15,955 Printing and forms 3,864 3,864 Advertising 1,640 1,640 Seminars & education 930 930 Fundraising expense 1,009 1,009 Total expenses 276,634 0 0 0 276,634

Change in net assets 76,029 107,950 461,062 221,776 866,817 Net assets, beginning of year 321,795 398,539 973,437 3,534,152 5,227,923 Net assets, end of year 397,824 506,489 1,434,499 3,755,928 6,094,740

2012 Unrestricted Board Designated Temp. Restricted Perm. Restricted Total Revenues and other support Contributions 117,398 31,609 44,735 558,861 752,602 Investment income 6,550 9,919 95,359 216 112,044 Merchandise sales (net of expenses) -- -- 1,496 -- 1,496 Net realized and unrealized capital gains (losses) 42,351 30,853 230,551 21,520 325,275 Transfers due to deficient TR funds 20,240 -- (20,240) -- 0 Net assets released from restriction 205,835 (22,334) (176,886) (6,614) 0 Total revenues and other support 392,374 50,047 175,015 573,982 1,191,418 Expenses Grants 113,034 113,034 Salary and benefits 72,537 72,537 Board 3,927 3,927 Interest 10,400 10,400 General administration 5,193 5,193 Travel 1,808 1,808 Professional fees 8,850 8,850 Outside services 8,805 8,805 Printing and forms 6,859 6,859 Advertising 1,485 1,485 Seminars & education 169 169 Fundraising expense 3,759 3,759 Total expenses 236,826 0 0 0 236,826 Change in net assets 155,548 50,047 175,015 573,982 954,592 Net assets, beginning of year 166,247 348,492 798,422 2,960,170 4,273,331 Net assets, end of year 321,795 398,539 973,437 3,534,152 5,227,923

www.sonsofnorway.com 87 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED 2012 International Lodge Meeting IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com and Convention Action Items

The following are the actions as a result of the items Name of Organization that were approved at the 2012 International Lodge President Kristiansen assigned the District Presidents as Meeting and Convention. the committee to study the impact of a name change to the organization. As stated in the original motion, Viking for Kids “this committee will draw conclusions, and then pres- A resolution was passed directing Sons of Norway to ent a written report to the International Lodge at the develop a form of regular communication with the next International Convention.” The Board of Directors youth of the organization. This communication was to commend the District Presidents on this daunting task be produced on a regular basis before the 2014 Con- and applaud their final efforts, which is a very well vention. After considerable discussion, and a review of thought out, thought-provoking document included as numerous options, a quarterly article in an addendum to this book. Viking magazine, called Family Matters, was deter- mined to offer the opportunity with the greatest potential. Not only will this page provide an avenue Charter, Constitutions and to communicate with our youth, but it can also create Procedures Manual interest and excitement among all our members. Two resolutions were proposed for the Charter, Con- stitutions and Procedures Manual. The first was the approval of the changes that were presented to the Cultural Programs delegates in a separate exhibit. Most of these chang- There was a resolution for District 1 to pilot a multi- es were for clarification and paragraphs were moved media program to highlight cultural programs such as to a more logical location. The second of these reso- genealogy, Norwegian language, cooking, etc. Dis- lutions contained a resolution that the Procedures trict 1 submitted a list containing culturally focused section be separated from the Charter and Constitu- YouTube videos, which Sons of Norway’s Fraternal tions and published online. Staff inspected for content suitability, viewability and quality. These videos are now posted under the Due to the perceived complications, it took the State appropriate sections of the Sons of Norway Website of Minnesota a significant amount of time (1.5 years) and we encourage the Districts to submit additional to approve these changes to our legal corporate YouTube videos and other multimedia alternatives documents. However, as of July 3, 2013, those chang- with appropriate content to be examined by our staff es were accepted and a new, slimmer version of the for inclusion on our website. Charter and Constitutions was printed and sent to all the 2012 Delegates and all of the lodges in the organization.

The Policy and Procedures Manual (P&P) is now on the Sons of Norway website.

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Changes to the Policy and Procedures Manual Upon approval of the Reordered Constitution in 2008, it was resolved that “the Procedures sections of said document require only a simple majority vote for change and that changes may be adopted by the International Board of Directors or the International Lodge with the understanding that any changes made by the International Board of Directors shall be reported to the International Lodge at its next meet- ing”. During the last biennium, the Board of Direc- tors approved changes to P&P paragraph 2.22.1.2.2., which now reads:

“When a Sons of Norway Lodge disbands, 50% of the assets shall go to Sons of Norway Foundation (United States, Canada or Norway) and 50% shall be distributed within the District in consultation with the appropriate District Board. All assets shall remain in Sons of Norway. (11/13)”

This paragraph was revised in the online version.

www.sonsofnorway.com 89 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Convention Delegates Jacksonville, Florida | www.sonsofnorway2014.com

46. Theodore Fosberg Seattle, WA Cascade 87 International Board 47. Bjarne Varnes Seattle, WA Leif Erikson 1 1. Marit Kristiansen President 48. Earl Mikkelson Bonney Lake, WA Norden 2 2. Ron Stubbings Vice President 49. Gerald Erickson Bremerton, WA Oslo 35 3. Jon Tehven Secretary 50. Ronald Rolla Kennewick, WA Sol-Land 86 4. William Fosmoe Treasurer 51. Asbjorn Rostad Post Falls, ID Harald Haarfager 11 5. Bob Hoover Director - District 1 52. Karen Aanes Kennewick, WA Sol-Land 86 6. Mark Agerter Director - District 2 53. Martha Andrew Anchorage, AK Bernt Balchen 46 7. Marci Larson Director - District 3 8. Elaine Nelson Director - District 4 9. Raymond Knutson Director - District 5 District 3 10. Janie Kelly Director - District 6 54. Mary Andersen Exton, PA Bondelandet 612 11. Gloria Benazic Director - District 7 55. Barbara Berntsen Valley Stream, NY Garborg 265 12. Ernst Granly Director - District 8 56. Kenneth Johnson Patchogue, NY Henrik Ibsen 393 57. Peter Hanson Concord, MA Norumbega 506 District 1 58. Barbara Bensen Little Silver, NJ Noreg 466 13. Barbara Olson Vining, MN Leif Erikson 32 59. Audun Gythfeldt Pocono Pines, PA Nor-Bu 427 14. Dennis Rusinko Minneapolis, MN Syttende Mai 517 60. James Mc Killop Staten Island, NY Nansen 410 15. Karen Aakre Fergus Falls, MN Heimskringla 12 61. Arnold Johnsen Rhinebeck, NY Hudson Valley 432 16. Jorleif Andol Huron, SD Solskinn 550 62. Gail Martinsen Hudson, FL Sun Viking 607 17. Claudia Bomier Anoka, MN Vennekretsen 559 63. Ronald Martinsen Hudson, FL Sun Viking 607 18. John Bungum Saint Peter, MN Elvesvingen 582 64. Louis Olsen Lutherville Timonium, MD Nordkap 215 19. Norman Carlson Windsor Heights, IA Marsteinen 596 65. Deanna Rumney Virginia Beach, VA Hampton Roads 522 20. Phyllis Dall Makinen, MN Haarfager 40 66. Peter Vatne Nashua, NH Norumbega 506 21. Ronald Dall Makinen, MN Haarfager 40 67. Katherine Dollymore Secane, PA Restauration 555 22. Arlene Field Des Moines, IA Marsteinen 596 68. Helen Timoney Islip, NY Henrik Ibsen 393 23. Andrew Halvorson Thief River Falls, MN Snorre 70 69. Alf Rasmussen Smithtown, NY Loyal 252 24. Diane Halvorson Brooklyn Park, MN Vennekretsen 559 25. Karl Hella Northfield, MN Nordmarka 585 District 4 26. Dorothy Hoover Detroit Lakes, MN Vikingland 495 70. Martha Elliott Minot, ND Thor 67 27. Gustav Melendez Mcallen, TX Palmedal 644 71. Russell Wiigs Calgary, AB Valhalla 341 28. Kenneth Mjoen Owatonna, MN Storting 519 72. Carrol Juven Fargo, ND Kringen 25 29. James Otteson Owatonna, MN Nortonna 638 73. Florene Kallenbach Maddock, ND Mollargutten 478 30. Kelsey Patton Saint Paul, MN Syttende Mai 517 74. Carol O’Dell Livingston, MT Fjell Heim 524 31. Philip Patton Saint Paul, MN Syttende Mai 517 75. Paul Vesledahl Moorhead, MN Kringen 25 32. Richard Phillips Sioux Falls, SD Gjoa 65 76. Daniel Haglund Moorhead, MN Kringen 25 33. Chantel Quissell Tea, SD Gjoa 65 77. Jerry Saude Bismarck, ND Sverdrup 107 34. Helen Scherer Shawnee, KS Maihaugen 665 78. Nordis Riley Missoula, MT Normanden 424 35. Ronald Stow Stillwater, MN Synnove-Nordkap 8 79. Carol Nelson Bottineau, ND Nordlyset 488 36. Marilyn Syverson Morris, MN Norskfodt 590 80. Ruth Olson Bismarck, ND Sverdrup 107 37. Dorothy Zimmerman Porter, MN Vennskap 554 81. Mae Streich Bottineau, ND Nordlyset 488 38. Craig Zuidema Mounds View, MN Fjell Syn 667 82. John Pettersen Beaverlodge, AB Northern Lights 493 83. Becky Lewis Harlowton, MT Fjell Heim 524 District 2 84. Dan Rude Missoula, MT Normanden 424 39. Douglas Quammen Longview, WA Breidablik 27 85. John Knudsen Missoula, MT Normanden 424 40. Margaret Bueing Redmond, WA Edmonds 130 41. Waldo Bueing Redmond, WA Edmonds 130 District 5 42. Vicki Nelson Edmonds, WA Edmonds 130 86. Owen Christianson Stratford, WI Myrmarken 609 43. E Olson Kenmore, WA Normanna 3 87. Darlene Arneson Stoughton, WI Mandt 314 44. Janet Fruchtl Kirkland, WA Leif Erikson 1 88. Jon Grinde Madison, WI Idun 74 45. Douglas Warne Seattle, WA Leif Erikson 1

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89. Judith Ghastin Appleton, WI Norse Valley 491 90. Donald Hermanson Woodville, WI Valkyrien 53 91. Duane Kittleson Verona, WI Vennelag 513 92. David Hermundson Eau Claire, WI Løven 29 93. Adrian Johnson La Crosse, WI Wergeland 28 94. Ramona Johnson La Crosse, WI Wergeland 28 95. Cheryl Schlesser Mount Horeb, WI Vennelag 513 96. Michaela Decker Racine, WI Nordlyset 183 97. Thomas Maxson Des Plaines, IL Elvesund 593 98. Esther Charlton Cincinnati, OH Edvard Grieg 657 99. Andrew Johnsen Cedar Lake, IN Scandiana 600 100. Mary Beth Ingvoldstad Hidden Valley Lake, CA Vikings Of Lake 166

District 6 101. Lyle Berge Thornton, CO Fjellheim 107 102. Carl Ingvoldstad Hidden Valley Lake, CA Vikings Of Lake 166 103. Robert Sather Rio Vista, CA Victory 43 104. Warren Anderson San Francisco, CA Henrik Ibsen 7 105. Bonnie Anderson San Francisco, CA Henrik Ibsen 7 106. Ordale Johnson Ventura, CA Norrona 50 107. Marilyn Molinari West Hills, CA Norseman 91 108. Richard Hausvik El Cajon, CA Valhall 25 109. L Espeland Scottsdale, AZ Desert Fjord 133 110. Beverly Moe Arvada, CO Trollheim 110 111. Reegan Moen Highlands Ranch, CO Fjelldalen 162 112. Marne Olson Santa Rosa, CA Freya 62 113. Luella Grangaard Morongo Valley, CA Solskinn 150 114. Nancy Madson Thousand Palms, CA Solskinn 150 115. Crystal Sundet Littleton, CO Fjelldalen 162

District 7 116. Erik Brochmann Mission, BC Sleipner 8 117. Jim Breivik Nanaimo, BC North Star 63 118. Alice Cristofoli Trail, BC Nordic 76 119. Veronica Brochmann Mission, BC Sleipner 8

District 8 120. Per Mikalsen 4878 Grimstad, Terje Vigen 15 121. Odd Olsen 4130 Hjelmeland, Ryfylke 23 122. Helge Skjulestad 4856 Arendal, Terje Vigen 15 123. Harald Thygesen 4817 His, Terje Vigen 15 124. Tor Halvorsen 4370 Egersund, Dalbuen 22

www.sonsofnorway.com 91 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED IN HERITAGE 2014 international convention Consent Agenda Jacksonville, Florida | www.sonsofnorway2014.com (from Robert’s Rules of Order)

To expedite business at a convention, the delegates can approve the use of a consent agenda that includes those items considered to be routine in nature. A consent agenda would appear as part of the regular conven- tion meeting agenda. Full information about these items should be provided to the delegates in the reports books for the convention meeting agenda and any questions or concerns can be directed to the makers of the motions and answered prior to the meeting. This allows a thorough examination of the routine items without using up precious meeting time.

A delegate may remove any item that appears on the consent agenda. The remaining items will be voted on by a single motion. The approved motion will then be recorded in the minutes, including a listing of all items appearing on the consent agenda. Use of a consent agenda eliminates the need to vote separately on many of the routine items and resolutions not requiring explanation or delegate discussion. There is generally one motion to approve all items on the consent agenda but it takes only one request from any delegate, generally not a formal vote, to remove any item from the consent agenda before the vote. If removed from the consent agenda, the item will be taken up later in the regular agenda. The item or items will then discussed and voted on separately, after the rest of the consent agenda has been approved.

In all cases, it is assumed there is nothing controversial about these items therefore no need for discussion. Grouping agenda items like these facilitates the meeting and allows time to be properly spent on issues that do need discussion.

92 www.sonsofnorway .com IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention Convention Committees IN E Jacksonville, Florida | www.sonsofnorway2014.com

Law Committee 1. Gerald Erickson District 2 2. Dan Rude District 4 (Chair) 3. Owen Christiansen District 5 4. Erik Brochmann District 7

Resolutions Committee 1. Barbara Olson District 1 2. Mary Anderson District 3 (Chair) 3. Judy Ghastin District 5 4. Harald Thygesen District 8

Finance Committee 1. Vicki Nelson District 2 2. Peter Vatne District 3 (Chair) 3. Roger Espeland District 6 4. Per Mikalsen District 8

Reports Committee 1. Claudia Bomier District 1 2. Martha Elliott District 4 3. Don Hermanson District 5 4. Mary Beth Ingvoldstad District 6 (Chair)

Tellers 1. District 1 Norman Carlson 2. District 2 Jane Bueing 3. District 3 Ken Johnson (Chair) 4. District 4 Russell Wiigs 5. District 5 Darlene Arneson 6. District 6 Richard Hausvik 7. District 7 Jim Tore Brevick 8. District 8 Helge Skjulestad

www.sonsofnorway.com 93 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway International Lodge UNITED IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Meeting Rules 2014

1. The Regular Meeting of the International Lodge shall 13. Consent Agenda issues will be limited to housekeep- be one meeting, recessing from session-to-session ing and/or non-debatable items: within the meeting. a. Each Convention Committee will develop a Consent 2. Member badges and voting materials will be issued at Agenda from the issues assigned to their committee; the Registration Desk. ONLY duly authorized Members may vote–ONE vote per Member. b. Each Committee will develop and distribute their Consent Agenda prior to the beginning of the 3. Members shall be in their seats FIVE minutes before Lodge meeting; the scheduled session time. c. Each Committee will present their Consent Agenda 4. The right to raise a point of order shall be reserved for for Lodge Meeting action as a first item of business; Members ONLY; the chair will decide its validity. d. Any member may request the removal of any item 5. ANY Member may speak to any motion before the from the Consent Agenda; Lodge. Any Member who desires to speak shall address the chair by going to the microphone, with identifica- e. When the Consent Agenda presentation is deemed tion paddle raised, and state name and District. complete, it will be presented to the lodge for ap- proval. Consent Agenda presented by the Law Com- 6. Each speaker will be allowed a maximum of TWO mittee will require 2/3 vote to pass and other Com- MINUTES. No Member shall speak to the motion more mittee Agenda will require 1/2 plus one vote to pass. than once, unless allowed otherwise by the chair. 14. Any voting on bylaws will require a 2/3 vote to pass. 7. Any messages to Members should be relayed to the Marshal or Assistant Marshal. 15. Any voting on resolutions will require a 1/2 plus one vote to pass. 8. If the previous question is moved and carried, Members who are in line at the microphones at the time the motion is passed will be permitted to speak.

9. Officers are elected at large from the International Lodge. Ballots shall be used in cases where there are two or more candidates for office; otherwise election shall be by acclamation.

10. No smoking shall be permitted in any meeting rooms.

11. Cell phones will be turned off or set to vibrate.

12. Any resolution or by-law which has significant financial impact upon the Order must be introduced by 10:00 a.m. Monday. Such resolution or by-law must be reviewed by the Committee on Finance and Investment and the Controller, and their findings presented to the Lodge.

94 www.sonsofnorway .com www.sonsofnorway.com 95 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Proposed Law Changes Jacksonville, Florida | www.sonsofnorway2014.com

INTERNATIONAL BOARD LAW CHANGES 1. REPRESENTATION

CURRENT LAW:

2.6.1. REPRESENTATION (TO INTERNATIONAL LODGE MEETING) Each District Lodge shall be entitled to two (2) Delegates for the District (one of whom shall be the District President) plus one (1) Delegate for each 400 members, or major fraction thereof, in the District according to the last annual report before the election. The District Lodge in computing its representation, shall also include the members of a newly established Local Lodge in its District, as defined and provided for in 3.6.2.

WHEREAS a decrease in membership has decreased the amount of delegates attending; and

WHEREAS it would be beneficial to have more members attending an International Lodge Meeting, thereby increasing their knowledge of the business of our Order:

THEREFORE BE IT RESOLVED that Charter and Constitutions paragraph 2.6.1. be amended to read as follows:

PROPOSED LAW:

2.6.1. REPRESENTATION (TO INTERNATIONAL LODGE MEETING) Each District Lodge shall be entitled to two (2) Delegates for the District (one of whom shall be the District Presi- dent) plus one (1) Delegate for each 400 300 members, or major fraction thereof, in the District according to the last annual report before the election. The District Lodge in computing its representation, shall also include the members of a newly established Local Lodge in its District, as defined and provided for in 3.6.2.

p Approved p Defeated p Substituted p Amended ______

2. MEETING BIDS

CURRENT LAW:

2.9.3. MEETING BIDS The place of the meeting shall be determined by the International Lodge or the International Board of Directors. Bids to host the International Convention must be forwarded to the International Board of Directors prior to the opening of the International Lodge meeting. Such bids must have prior approval from the respective District Board of Directors. The International Board of Directors shall determine the time, in consultation with Host Lodges. (9/80)

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WHEREAS Charter and Constitutions paragraph 2.9.3. “Meeting Bids” does not stipulate a deadline for submitting a bid, other than “prior to the opening of the International Lodge Meeting”, and

WHEREAS advance notice of any bid, or the absence thereof, would be beneficial to the International Board of Directors;

THEREFORE BE IT RESOLVED that Charter and Constitutions paragraph 2.9.3. be amended to read as follows:

PROPOSED LAW:

2.9.3. MEETING BIDS The place of the meeting shall be determined by the International Lodge or the International Board of Directors. Bids to host the International Convention must be forwarded to the International Board of Directors at least 30 days prior to the opening of the International Lodge meeting. Such bids must have prior approval from the respective District Board of Directors. The International Board of Directors shall determine the time, in consultation with Host Lodges.

p Approved p Defeated p Substituted p Amended ______

3. OFFICER NOMINATIONS/DISTRICT OFFICERS AND DIRECTORS TITLES AND NUMBERS

CURRENT LAW:

2.11.4.1. Officer Nominations. All nominations for the International President, Vice President, Secretary or Treasurer at the International Lodge Meeting shall be made by another member from the floor. (8/02)

WHEREAS it is in the best interest of Sons of Norway to have well qualified candidates for District and International Board -of ficers and directors;

WHEREAS it is in the best interest of delegates to District and International Lodge meetings to have background information about candidates for District and International Board officers and directors; and

WHEREAS the Nomination Committee needs time to vet candidates;

THEREFORE BE IT RESOLVED that paragraph 2.11.4.1. be amended to read:

PROPOSED LAW:

2.11.4.1. Officer Nominations and Director Nominations. All nominations for the International President, Vice President, Secretary or Treasurer at the International Lodge Meeting shall be made by another member from the floor. or Director shall be submitted to the Nominating Committee no later than two weeks after the District Convention. All nominations shall cease at that time. www.sonsofnorway.com 97 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway NITED U HERITAG 2014 international convention IN E Proposed Law Changes Jacksonville, Florida | www.sonsofnorway2014.com

p Approved p Defeated p Substituted p Amended ______

CURRENT LAW:

3.11.2. DISTRICT OFFICERS AND DIRECTORS TITLES AND NUMBER The Officers of a District Lodge shall be President, Vice President, Secretary, Treasurer, and such other officers and directors as decided by the District Lodge. (8/94)

BE IT FURTHER RESOLVED that paragraph 3.11.2. be amended to read:

PROPOSED LAW:

3.11.2. DISTRICT OFFICERS AND DIRECTORS TITLES AND NUMBER The Officers of a District Lodge shall be President, Vice President, Secretary, Treasurer and such other officers and directors as decided by the District Lodge. Nominations for District officers and directors shall be submitted to the Nominating Committee no later than two weeks prior to the District Convention. All nominations shall cease at that time.

p Approved p Defeated p Substituted p Amended ______

DISTRICT 1 LAW CHANGES 4. INTERNATIONAL DIRECTOR NOMINATING COMMITTEE

WHEREAS it is in the best interest of the society to provide for the most reasoned and informed selection process of candidates and the purpose of a Nominating Committee is to identify, review, and recommend qualified candidates to serve in leadership positions.

WHEREAS a Nominating Committee in a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal Organizations such as Royal neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor, Protective Association, Catholic United, and Thrivent (to name just a few) all utilize Nominating Committees to select candidates for the highest boards.

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WHEREAS the Sons of Norway Charter and Constitution (4.11.4) currently requires a Nominating Committee structure at the local level. If required at the local level, then it should be at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership.

WHEREAS insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the selection of qualified officers and directors.

WHEREAS it is in the best interest of the society to elect the most qualified candidates as leaders.

THEREFORE BE IT RESOLVED that the following Nominating Committee for International Director be adopted and added to the Sons of Norway Charter and Constitution as 3.7.7.

3.7.7. NOMINATING COMMITTEE FOR INTERNATIONAL DIRECTOR The District Board of Directors shall elect a Nominating Committee of no fewer than three (3) and no more than five (5) members of the District Lodge. The purpose of the Nominating Committee is to identify, review, and recommend qualified candidates for the election of International Director. The Nominating Committee shall elect the Committee Chair from the elected committees determined by the District Lodge. Candidates for nomination to the International Board of Directors shall be insured members and must meet the qualifications of the candidates and submit a slate of qualified candidates for election. Should the District allow nominations from the floor before such candidates may be slated on the ballot for election.

Other procedures and deadlines for the nomination of candidates for International Director shall be determines by the District Lodge.

p Approved p Defeated p Substituted p Amended ______

5. DISTRICT OFFICERS NOMINATING COMMITTEE

CURRENT LAW:

3.11.5. ELECTIONS 3.11.5.1. Time of Elections. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office, otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority.

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WHEREAS it is in the best interest of the society to provide for the most reasoned and informed selection process of candi- dates and the purpose of a Nominating Committee is to identify, review, and recommend qualified candidates to serve in leadership positions.

WHEREAS a Nominating Committee in a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal Organizations such as Royal neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor, Protective Association, Catholic United, and Thrivent (to name just a few) all utilize Nominating Committees to select candidates for the highest boards.

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local level. If required at the local level, then it should be at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership.

WHEREAS insurance regulators may soon introduce legislation mandating new corporate governance requirements for frater- nals. Some of the proposed requirements relate specifically to the selection of qualified officers and directors.

WHEREAS it is in the best interest of the society to elect the most qualified candidates as leaders.

THEREFORE BE IT RESOLVED that the following Nominating Committee for District Lodge Officers and Directors be adopted by each District for their respective bylaws and added to the Sons of Norway Charter and Constitution by replacing 3.11.5. in its entirety with the following:

PROPOSED LAW:

3.11.5. NOMINATING COMMITTEE AND ELECTIONS 3.11.5.1. Nominating Committee. The District Nominating Committee, as established by 3.7.7, shall identify, review, and submit a slate of candidates for election of District Officers and Directors. No member of the Nominating Committee shall be a candidate for election as District Lodge Officer or Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates of nomination to the District Board shall be insured members and must meet all qualifications as set forth by the District Lodge.

The insured member provision for District Board officers and directors shall not be required for countries, provinces where Sons of Norway is not authorized to sell insurance. Should the District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate from the floor before such candidate may be slated to the ballot for election. Other procedures and deadlines for the nomi- nation of candidates for District Lodge Officers or Directors shall be determined by the District Lodge. 3.11.5.2. Elections Procedures 3.11.5.2.1. Time of Election. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors, and District Delegates present, all being the current members of the District Lodge. 3.11.5.2.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office. A majority of the votes cast is necessary for elections; otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.2.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority vote on the first ballot, the candidate

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receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority. When there is only one (1) candidate for any office, vote by acclamation is permissible.

p Approved p Defeated p Substituted p Amended ______

DISTRICT 2 LAW CHANGES 6. INTERNATIONAL DIRECTOR NOMINATING COMMITTEE

3.7.7. NOMINATING COMMITTEE FOR INTERNATIONAL DIRECTOR AND ALTERNATE The District Board of Directors shall elect a Nominating Committee of no fewer than three (3) and no more than (5) members of the District Lodge. The purpose of the Nominating Committee is to identity, review and recommend qualified candidates for the election for International Director and Alternate. The Nominating Committee shall elect the Committee Chair from the elected committee members. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the International Board of Directors shall be insured members and must meet all qualifications as set forth by the International Lodge. Those qualifications shall be published and provided to the delegates a minimum of 10 days prior to start of the District Convention. The Nominating Committee shall review the qualifications of the candidates and approve a slate of one or more candidates for election. Nominations may also be made from the floor at the time of election. The candidate or candidates nominated from the floor must show they meet the published qualifications before such candidate may be slated to the ballot for election. Other procedures and deadlines for the nomination of candidates for International Director and Alternate shall be determined by the District Lodge.

p Approved p Defeated p Substituted p Amended ______

7. DISTRICT OFFICERS NOMINATING COMMITTEE

CURRENT LAW:

3.11.5. ELECTIONS 3.11.5.1. Time of Elections. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. www.sonsofnorway.com 101 IAL • FRATERNAL • FOUNDA FINANC TION Sons of Norway UNITED IN HERITAGE 2014 international convention Jacksonville, Florida | www.sonsofnorway2014.com Proposed Law Changes

3.11.5.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office, otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority.

PROPOSED LAW:

3.11.5. NOMINATING COMMITTEE AND ELECTIONS 3.11.5.1. Nominating Committee. The District Nominating Committee, as established by 3.7.7. shall identify, review and recommend qualified candidates for the election of District Lodge Officers and Directors. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the District Board shall be insured members and must meet all qualifications as set forth by the District Lodge. Those qualifications should be pub- lished and provided to delegates 10 days prior the start of a district convention.. The insured member provision for District Board officers and directors shall not be required for countries, provinces or states where Sons of Norway is not authorized to sell insurance. Nominations may also be made from the floor at the time of election. The candidate or candidates nominated from the floor must show that they meet the published qualifications before such candidate may be slated to the ballot for elec- tion. Other procedures and deadlines for the nomination of candidates for District Lodge Officers or Directors shall be determined by the District Lodge. 3.11.5.2. Elections Procedures 3.11.5.2.1. Time of Election. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors, and District Delegates present, all being the current members of the District Lodge. 3.11.5.2.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office. A majority of the votes cast is necessary for elections; otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.2.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority vote on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority. When there is only one (1) candidate for any office, vote by acclamation is permissible.

p Approved p Defeated p Substituted p Amended ______

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DISTRICT 3 LAW CHANGES 8. OWNERSHIP OF REAL ESTATE

CURRENT LAW

1.17.1. ACQUISITION OF REAL ESTATE When a Lodge desires to acquire real estate, it shall organize a separate nonprofit corporation under its local laws for the purpose of taking title to such real estate. The Articles of Incorporation, or Charter, of such nonprofit corporation must provide that the voting members, officers, and directors of such nonprofit corporation shall be members in good standing of the Lodge.

WHEREAS Chapter 17, Section 1.17.1. of the Constitution of the Sons of Norway provides, in pertinent part, as follows: “When a lodge desires to acquire real estate, it shall organize a separate nonprofit corporation under its local laws for the purpose of taking title to such real estate”; and

WHEREAS the purpose of the foregoing provision is to protect the local lodge (the “Lodge”), its members, and Sons of Norway from liability; and

WHEREAS ownership of real estate by a Lodge that, itself, a nonprofit corporation organized under its local laws serves to limit the liability of the Lodge, its members, and the Sons of Norway which could arise from such ownership; and

WHEREAS the transfer of real estate that is currently owned by a Lodge that is a nonprofit corporation to a separate, newly- formed nonprofit corporation may have negative financial and other consequences to the Lodge that outweigh any benefits of such transfer; now

THEREFORE BE IT RESOLVED that Chapter 17, Section 1.17.1. of the Constitution of the Sons of Norway be, and hereby is, amended to read in its entirety as follows:

PROPOSED LAW

1.17.1. OWNERSHIP OF REAL ESTATE Real estate owned by a lodge must be owned by a nonprofit corporation. 1.17.1.1. Real Estate to be acquired. If a Lodge desires to acquire real estate on or after August_____, 2014, the Lodge shall organize a separate nonprofit organization under its local laws for the purpose of taking title to such real estate and shall, as soon after organizing such nonprofit corporation as is practicable, apply to the Internal Revenue Service for tax-exempt status for such newly-formed corporation. 1.17.1.2. Real Estate Not Owned by a Nonprofit Corporation. A lodge that owns real estate on August _____, 2014, title to which is not in the name of a nonprofit corporation, shall immediately after such date take the steps specified in Section 1.17.1.1. to transfer title to such real estate to a nonprofit corporation. 1.17.1.3. Real Estate Owned by a Lodge that is a Nonprofit Corporation. A lodge incorporated under its local laws as a nonprofit corporation that own real estate on August ____, 2014, title to which is held in the name of such nonprofit corporation, shall not be required to transfer title to such real estate to a separate nonprofit corporation.

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p Approved p Defeated p Substituted p Amended ______

9. DELEGATES FROM RECRUITMENT LODGES

WHEREAS members of suspended Lodges have been transferred to temporary recruitment Lodges from time to time; and

WHEREAS those members have no representation at District Lodge meetings as they have no means of electing delegates; and

WHEREAS those members may still be members in good standing of Sons of Norway;

THEREFORE BE IT RESOLVED that the following section be added to the Constitution:

3.23.3.2. Each Recruitment Lodge may meet for the purpose of electing Delegates and Alternates to the District Lodge Meeting, and to approve resolutions for consideration at the District Lodge Meeting. Each Recruitment Lodge will be entitled to representation as calculated using the same rules that apply for the Central Lodge. The meetings will be called and conducted as for Central Lodge Delegate Elections. For the purposes of determining eligibility of Delegates, recruitment Lodges are considered to have been in existence as long as the District itself.

COST TO ORGANIZATION: There will be a small cost associated with the travel of District Officers to the election meeting. There will also be a small cost for mailing a meeting notification to every member of the Recruitment lodge. The money for District Officer travel will come from the regular District Dues.

p Approved p Defeated p Substituted p Amended ______

10. STATUS OF DISTRICT OFFICERS AND DIRECTORS

CURRENT LAW

3.6.4.2. An Officer or Director who is not re-elected to any District office shall continue to be a member of the District Lodge until final adjournment and shall be eligible for election as a Delegate or Alternate to the International Lodge Meeting.

WHEREAS Officers and Directors elected at the last District Lodge meeting have all the rights and privileges of Delegates from the Local Lodges until their successors have been elected and installed; and

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WHEREAS an Officer or Director who is not re-elected to any District office is still eligible for election as a Delegate or Alternate to the International Lodge Meeting; and

WHEREAS an Officer or Director who is not re-elected may not participate in any Special Meetings of the District Lodge, participate in Referendums of the District Lodge, or be eligible to fill any vacancies on the District Board, although every other member who was seated at the District Lodge Meeting has these rights;

THEREFORE BE IT RESOLVED that section 3.6.4.2. of the Constitution be replaced with:

PROPOSED LAW

3.6.4.2. An Officer or Director who is not re-elected to any District office shall continue to be a member of the District Lodge until final adjournment and shall be eligible for election as a Delegate or Alternate to the International Lodge Meeting the next regular District Lodge meeting begins.

AND FURTHER BE IT RESOLVED that a new section 3.6.4.3. be added to the Constitution to read:

PROPOSED LAW

3.6.4.3. An Officer or Director shall not be suspended or expelled from their office or the District Lodge on account of the suspension, dissolution, or merger of their Local Lodge, or if they transfer to another Local Lodge, provided that they remain in good standing with Sons of Norway.

CURRENT LAW

3.9.5.3. Delegates to Special Meetings. The District Officers, District Directors and Delegates elected for the term in which said meeting is held, or in the case of vacancies their successors or Alternates shall act.

AND FURTHER BE IT RESOLVED that section 3.9.5.3. of the Constitution be replaced with:

PROPOSED LAW

3.9.5.3. Delegates to Special Meetings. The District Officers, District Directors and Delegates elected for the term in which said meeting is held The last members of the regular District Lodge meeting, or in the case of vacancies, their successors or Alternates, shall act.

p Approved p Defeated p Substituted p Amended ______

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11. STATUS OF INTERNATIONAL OFFICERS AND DIRECTORS

CURRENT LAW

2.6.2. DELEGATES TO SPECIAL MEETINGS The International Officers, International Directors, and Delegates elected for the term in which said meeting is held, or in the case of vacancies, their successors or Alternates shall act.

WHEREAS an International Officer or Director who is not re-elected may not participate in any Special Meetings of the -Inter national Lodge, participate in Referendums of the International Lodge, or be eligible to fill any vacancies on the International Board, although every other member who was seated at the International Lodge Meeting has these rights;

THEREFORE BE IT RESOLVED, that section 2.6.2. of the Constitution be replaced with:

PROPOSED LAW

2.6.2. DELEGATES TO SPECIAL MEETINGS The International Officers, International Directors, and Delegates elected for the term in which said meeting is held, or in the case of vacancies, their successors or Alternates shall act.

2.6.2. STATUS OF INTERNATIONAL OFFICERS AND DIRECTORS 2.6.2.1. The Officers and Directors elected at the last regular International Lodge meeting, or their successors, shall be members of the International Lodge, and in every respect enjoy the same rights and privi- leges as the Delegate(s) from the District Lodges, and they shall so act until their successors have been elected and installed. 2.6.2.2. An Officer or Director who is not re-elected to any International office shall continue to be a member of the International Lodge until the next regular International Lodge meeting begins. 2.6.2.3. An Officer or Director shall not be suspended or expelled from their office or the International Lodge on account of the suspension, dissolution, or merger of their District Lodge, or if they transfer to a Lo- cal Lodge within another District, provided that they remain in good standing with Sons of Norway.

CURRENT LAW

2.9.5. NOTIFICATION OF SPECIAL MEETINGS The International President shall ensure that all members of the International Lodge are notified by mail of the time and place of a special meeting of the International Lodge, as well as matters to be acted upon at such -meet ing. No other matters shall be considered at such meeting. (8/96)

AND FURTHER BE IT RESOLVED, that section 2.9.5. of the Constitution be replaced with:

PROPOSED LAW

2.9.5. NOTIFICATION OF SPECIAL MEETINGS 2.9.5.1. Notice of Special Meetings. The International President shall ensure that all members of the International

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Lodge are notified by mail of the time and place of a special meeting of the International Lodge, as well as matters to be acted upon at such meeting. No other matters shall be considered at such meeting. (8/96). 2.9.5.2. Delegates to Special Meetings. The members of the last regular International Lodge meeting, or in the case of vacancies, their successors or Alternates, shall act.

p Approved p Defeated p Substituted p Amended ______

DISTRICT 4 LAW CHANGES 12. INTERNATIONAL DIRECTOR NOMINATING COMMITTEE

WHEREAS it is in the best interest of the society to provide for the most reasoned and informed selection process of candi- dates and the purpose of a Nominating Committee is to identify, review, and recommend qualified candidates to serve in leadership positions;

WHEREAS a Nominating Committee in a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor Protective Association, Catholic United Financial, and Thrivent (to name a few) all utilize Nominating Commit- tees to select candidates for their highest boards.

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership.

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors.

WHEREAS it is in the best interest of the Society to elect the most qualified candidates to lead.

THEREFORE BE IT RESOLVED that the following Nominating Committee for International Director be adopted and added to the Sons of Norway Charter and Constitutions as 3.7.7.

3.7.7. NOMINATING COMMITTEE FOR INTERNATIONAL DIRECTOR The District Board of Directors shall elect a Nominating Committee of no fewer than three (3) and no more than five (5) members of the District Lodge. The purpose of the Nominating Committee is to identify, review, and recommend qualified candidates for the election of International Director. The Nominating Committee shall elect the Committee Chair from the elected committee members. No member of the Nominating Committee shall be a candidate for election as International Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the International Board

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of Directors shall be insured members and must meet all qualifications as set forth by the International Lodge. The Nominating Committee shall review the qualifications of the candidates and place all qualified candidates on the ballot. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifica- tions of the candidate nominated from the floor before such candidate may be slated to the ballot for election.

Other procedures and deadlines for the nomination of candidates for International Director shall be determines by the District Lodge.

p Approved p Defeated p Substituted p Amended ______

13. DISTRICT OFFICERS NOMINATING COMMITTEE

CURRENT LAW:

3.11.5. ELECTIONS 3.11.5.1. Time of Elections. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office, otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority.

WHEREAS it is in the best interest of the society to provide for the most reasoned and informed selection process of candi- dates and the purpose of a Nominating Committee is to identify, review, and recommend qualified candidates to serve in leadership positions.

WHEREAS a Nominating Committee in a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal Organizations such as Royal neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor, Protective Association, Catholic United, and Thrivent (to name just a few) all utilize Nominating Committees to select candidates for the highest boards.

WHEREAS the Sons of Norway Charter and Constitution (4.11.4) currently requires a Nominating Committee structure at the local level. If required at the local level, then it should be at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership.

WHEREAS insurance regulators may soon introduce legislation mandating new corporate governance requirements for frater- nals. Some of the proposed requirements relate specifically to the selection of qualified officers and directors.

WHEREAS it is in the best interest of the society to elect the most qualified candidates as leaders.

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THEREFORE BE IT RESOLVED that the following Nominating Committee for District Lodge Officers and Directors be adopted by each District for their respective bylaws and added to the Sons of Norway Charter and Constitution by replacing 3.11.5. in its entirety with the following:

PROPOSED LAW:

3.11.5. NOMINATING COMMITTEE AND ELECTIONS 3.11.5.1. Nominating Committee. The District Nominating Committee, as established by 3.7.7., shall identify, review, and submit qualified candidates for the election of District Lodge Officers and Directors. No member of the Nominating Committee shall be a candidate for election as District Lodge Officer or Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates of nomination to the District Board shall be insured members and must meet all qualifications as set forth by the District Lodge.

The insured member provision for District Board officers and directors shall not be required for coun- tries, provinces, or states where Sons of Norway is not authorized to sell insurance. Should the District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate nominated from the floor before such candidate may be slated to the ballot for election. Other procedures and deadlines for the nomination of candidates for District Lodge Officers or Direc- tors shall be determined by the District Lodge. 3.11.5.2. Elections Procedures 3.11.5.2.1. Time of Election. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors, and District Delegates present, all being the current members of the District Lodge. 3.11.5.2.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office. A majority of the votes cast is necessary for election; otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.2.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority. When there is only one (1) candidate for any office, vote by acclamation is permissible.

p Approved p Defeated p Substituted p Amended ______

DISTRICT 5 HAD NO LAW CHANGES

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DISTRICT 6 LAW CHANGES 14. RESOLUTION FOR INTERNATIONAL DIRECTOR NOMINATING COMMITTEE

WHEREAS it is in the best interests of the Society to provide for the most reasoned and informed selection process of can- didates and the purpose of a Nominating Committee is to identify, review, and recommend qualified candidates to serve in leadership positions;

WHEREAS a Nominating Committee is a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor Protective Association, Catholic United Financial and Thrivent (to name a few) all utilize nominating commit- tees to select candidates for their highest boards;

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be required at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership;

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors.

WHEREAS it is in the best interests of the Society to elect the most qualified candidates to lead;

THEREFORE BE IT RESOLVED that the following Nominating Committee for International Director be adopted and added to the Sons of Norway Charter and Constitution as 3.7.7.

3.7.7. Nominating Committee for International Director The District Board of Directors shall elect a Nominating Committee of no fewer than three (3) and no more than (5) members of the District Lodge. The purpose of the Nominating Committee is to identify, review and recom- mend qualified candidates for the election of International Director. The Nominating Committee shall elect the Committee Chair from the elected committee members. No member of the Nominating Committee shall be a candidate for election as International Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the International Board of Directors shall be insured members and must meet all qualifications as set forth by the International Lodge. The Nominating Committee shall review the qualifications of the candidates and place all qualified candidates on the ballot. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifica- tions of the candidate nominated from the floor before such candidate may be slated to the ballot for election.

Other procedures and deadlines for the nomination of candidates for International Director shall be determined by the District Lodge.

p Approved p Defeated p Substituted p Amended ______

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15. RESOLUTION FOR DISTRICT LODGE OFFICER AND DIRECTOR NOMINATING COMMITTEE

CURRENT LAW:

3.11.5. ELECTIONS 3.11.5.1. Time of Elections. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office, otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority.

WHEREAS it is in the best interests of the Society to provide for the most reasoned and informed selection process of can- didates and the purpose of a Nominating Committee is to identify, review and recommend qualified candidates to serve in leadership positions;

WHEREAS a Nominating Committee is a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor Protective Association, Catholic United Financial and Thrivent (to name a few) all utilize nominating commit- tees to select candidates for their highest boards;

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be required at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership;

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors.

WHEREAS it is in the best interests of the Society to elect the most qualified candidates to lead;

THEREFORE be it resolved that the following Nominating Committee for District Lodge Officers and Directors be adopted by each District for their respective bylaws and added to the Sons of Norway Charter and Constitution by replacing 3.11.5. in its entirety with the following:

PROPOSED LAW

3.11.5. NOMINATING COMMITTEE AND ELECTIONS 3.11.5.1 Nominating Committee. The District Nominating Committee, as established by 3.7.7., shall identify, review, and submit qualified candidates for the election of District Lodge Officers and Directors. No member of the Nominating Committee shall be a candidate for election as District Lodge Officer or Director. Members of the District Lodge may submit candidates to the Nominating Committee as deter- mined by the District Lodge. Candidates for nomination to the District Board shall be insured members and must meet all qualifications as set forth by the District Lodge.

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The insured member provision for District Board officers and directors shall not be required for coun- tries, provinces or states where Sons of Norway is not authorized to sell insurance. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate nominated from the floor before such candidate may be slated to the ballot for election. Other procedures and deadlines for the nomination of candidates for District Lodge Officers or Direc- tors shall be determined by the District Lodge. 3.11.5.2. Elections 3.11.5.2.1. Time of Elections. The Officers are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office. A majority of the votes cast is necessary for election; otherwise election shall be by acclamation. 3.11.5.2.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority. When there is only one (1) candidate for any office, vote by acclamation is permissible.

DISTRICT 7 LAW CHANGES 16. INTERNATIONAL DIRECTOR NOMINATING COMMITTEE

WHEREAS it is in the best interests of the Society to provide for the most reasoned and informed selection process of candidates and the purpose of a Nominating Committee is to identify, review and recommend qualified candidates to serve in leadership positions.

WHEREAS a Nominating Committee is a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor Protective Association, Catholic United Financial and Thrivent (to name a few) all utilize nominating commit- tees to select candidates for their highest boards;

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be required at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership;

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors;

WHEREAS it is in the best interests of the Society to elect the most qualified candidates to lead;

THEREFORE BE IT RESOLVED that the following Nominating Committee for International Director be adopted and added to the Sons of Norway Charter and Constitution as 3.7.7.

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3.7.7. NOMINATING COMMITTEE FOR INTERNATIONAL DIRECTOR The District Board of Directors shall elect a Nominating Committee of no fewer than three (3) and no more than (5) members of the District Lodge. The purpose of the Nominating Committee is to identify, review and recommend all qualified candidates for the election of International Director. The Nominating Committee shall elect the Committee Chair from the elected committee members. No member of the Nominating Committee shall be a candi- date for election as International Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the International Board of Directors shall be insured members and must meet all qualifications as set forth by the International Lodge. The Nominating Committee shall review the qualifications of the candidates and approve a slate of one or more candidates for election. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate nominated from the floor before such candidate may be slated to the ballot for election.

Other procedures and deadlines for the nomination of candidates for International Director shall be determined by the District Board.

17. DISTRICT LODGE OFFICER AND DIRECTOR NOMINATING COMMITTEE

CURRENT LAW:

3.11.5. ELECTIONS 3.11.5.1. Time of Elections. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office, otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority.

WHEREAS it is in the best interests of the Society to provide for the most reasoned and informed selection process of can- didates and the purpose of a Nominating Committee is to identify, review and recommend qualified candidates to serve in leadership positions;

WHEREAS a Nominating Committee is a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor Protective Association, Catholic United Financial and Thrivent (to name a few) all utilize nominating commit- tees to select candidates for their highest boards;

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be required at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership;

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors;

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WHEREAS it is in the best interests of the Society to elect the most qualified candidates to lead;

THEREFORE BE IT RESOLVED that the following Nominating Committee for District Lodge Officers and Directors be adopted by each District for their respective bylaws and added to the Sons of Norway Charter and Constitution by replacing 3.11.5. in its entirety.

PROPOSED LAW

3.11.5. NOMINATING COMMITTEE AND ELECTIONS 3.11.5.1. Nominating Committee. The District Nominating Committee, as established by 3.7.7., shall identify, review and recommend all qualified candidates for the election of District Lodge Officers and Direc- tors. No member of the Nominating Committee shall be a candidate for election as District Lodge- Of ficer or Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the District Board shall be insured members and must meet all qualifications as set forth by the District Lodge. The insured member pro- vision for District Board officers and directors shall not be required for countries, provinces or states where Sons of Norway is not authorized to sell insurance. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate nominated from the floor before such candidate may be slated to the ballot for election.

Other procedures and deadlines for the nomination of candidates for District Lodge Officers or Direc- tors shall be determined by the District Board. 3.11.5.2. Election Procedures. 3.11.5.2.1. Time of Election. The Officers are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being current members of the District Lodge. 3.11.5.2.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office. A majority of the votes cast is necessary for election; otherwise election shall be by acclamation. 3.11.5.2.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority. When there is only one (1) candidate for any office, vote by acclamation is permissible. DISTRICT 8 LAW CHANGES 18. RESOLUTION FOR INTERNATIONAL DIRECTOR NOMINATING COMMITTEE

WHEREAS it is in the best interests of the Society to provide for the most reasoned and informed selection process of candidates and the purpose of a Nominating Committee is to identify, review, and recommend qualified candidates to serve in leadership positions;

WHEREAS a Nominating Committee is a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association, Degree of Honor Protective Association, Catholic United Financial and Thrivent (to name a few) all utilize nominating commit- tees to select candidates for their highest boards;

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WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be required at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership;

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors.

WHEREAS it is in the best interests of the Society to elect the most qualified candidates to lead;

THEREFORE BE IT RESOLVED that the following Nominating Committee for International Director be adopted and added to the Sons of Norway Charter and Constitution as 3.7.7.

3.7.7. NOMINATING COMMITTEE FOR INTERNATIONAL DIRECTOR The District Board of Directors shall elect a Nominating Committee of no fewer than three (3) and no more than (5) members of the District Lodge. The purpose of the Nominating Committee is to identify, review and recommend qualified candidates for the election of International Director. The Nominating Committee shall elect the Commit- tee Chair from the elected committee members. No member of the Nominating Committee shall be a candidate for election as International Director. Members of the District Lodge may submit candidates to the Nominating Com- mittee as determined by the District Lodge. Candidates for nomination to the International Board of Directors shall be insured members and must meet all qualifications as set forth by the International Lodge. The Nominating Com- mittee shall review the qualifications of the candidates and approve a slate of one or more candidates for election. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate nominated from the floor before such candidate may be slated to the ballot for election.

Other procedures and deadlines for the nomination of candidates for International Director shall be determined by the District Lodge.

19. RESOLUTION FOR DISTRICT LODGE OFFICER AND DIRECTOR NOMINATING COMMITTEE

CURRENT LAW:

3.11.5. ELECTIONS 3.11.5.1. Time of Elections. The Officers and Directors are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office, otherwise election shall be by acclamation. A majority of the votes cast is necessary for election. 3.11.5.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority.

WHEREAS it is in the best interests of the Society to provide for the most reasoned and informed selection process of candidates and the purpose of a Nominating Committee is to identify, review and recommend qualified candidates to serve in leadership;

WHEREAS a Nominating Committee is a well-established approach to the candidate selection process and is not unique to the fraternal world. Fraternal organizations such as Royal Neighbors, Baptist Life Association, Loyal Christian Benefit Association,

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Degree of Honor Protective Association, Catholic United Financial and Thrivent (to name a few) all utilize nominating commit- tees to select candidates for their highest boards;

WHEREAS the Sons of Norway Charter and Constitution (4.11.4.) currently requires a Nominating Committee structure at the local lodge level. If required at the local lodge level, then it should be required at the District and International levels as well. There is inherent value in consistency at all levels of the organization related to the evaluation and election of leadership;

WHEREAS state insurance regulators may soon introduce legislation mandating new corporate governance requirements for fraternals. Some of the proposed requirements relate specifically to the election of qualified officers and directors.

WHEREAS it is in the best interests of the Society to elect the most qualified candidates to lead;

THEREFORE BE IT RESOLVED that the following Nominating Committee for District Lodge Officers and Directors be adopted by each District for their respective bylaws and added to the Sons of Norway Charter and Constitution by replacing 3.11.5. in its entirety with the following:

PROPOSED LAW

3.11.5. NOMINATING COMMITTEE AND ELECTIONS 3.11.5.1. Nominating Committee. The District Nominating Committee, as established by 3.7.7., shall identify, review, and recommend qualified candidates for the election of District Lodge Officers and Directors. No member of the Nominating Committee shall be a candidate for election as District Lodge Officer or Director. Members of the District Lodge may submit candidates to the Nominating Committee as determined by the District Lodge. Candidates for nomination to the District Board shall be insured members and must meet all qualifications as set forth by the District Lodge. The insured member pro- vision for District Board officers and directors shall not be required for countries, provinces or states where Sons of Norway is not authorized to sell insurance. Should a District allow nominations from the floor, the Nominating Committee must approve the qualifications of the candidate nominated from the floor before such candidate may be slated to the ballot for election.

Other procedures and deadlines for the nomination of candidates for District Lodge Officers or Direc- tors shall be determined by the District Lodge. 3.11.5.2. Election Procedures 3.11.5.2.1. Time of Election. The Officers are elected at the regular meetings of the District Lodge by the International Officers, International Directors, District Officers, District Directors and District Delegates present, all being the current members of the District Lodge. 3.11.5.2.2. Ballots. Ballots shall be used in all cases where there are two (2) or more candidates for any office. A majority of the votes cast is necessary for election; otherwise election shall be by acclamation. 3.11.5.2.3. Candidates. If more than two (2) candidates have been nominated for an office and none receives a majority on the first ballot, the candidate receiving the least number of votes shall withdraw, and so on until one (1) candidate gets a majority. When there is only one (1) candidate for any office, vote by acclamation is permissible.

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NO RESOLUTIONS FROM THE INTERNATIONAL BOARD DISTRICT 1 RESOLUTIONS 20. STANDARDIZING NUMERICAL CODING SYSTEM FOR SONS OF NORWAY

WHEREAS Sons of Norway identifies lodges by the numbers (1-8) for the Districts and for the numbers (517).

WHEREAS adding a number to identify the zone will give greater clarification in identifying the subject of their search for a given lodge. Not only will you know the District of that lodge and it lodge number, but also which Zone they are in.

BE IT RESOLVED that an additional number be added to identify the Zone that the lodge is in.

p Approved p Defeated p Substituted p Amended ______

21. SONS OF NORWAY ABBREVIATIONS

WHEREAS there are a number of Abbreviations used to denote Sons of Norway.

WHEREAS one consistent abbreviation will unify the organization’s communications. One that is used (SON) ads to the uncon- scious message the Sons of Norway is for men.

THEREFORE BE IT RESOLVED that the abbreviation used to denote Sons of Norway (SofN) be standardized as its abbreviation throughout the order.

COST TO ORGANIZATION: This is used in informal communications so it will be able to get the message through to each member. If there are websites using it they will need to be changed. Any stationary, etc. should be allowed to be used up and changed when supplies need to be reordered.

p Approved p Defeated p Substituted p Amended ______

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DISTRICT 2 HAD NO RESOLUTIONS DISTRICT 3 RESOLUTIONS 22. PARENT 501(c)(2) ORGANIZATION

WHEREAS the International Lodge wishes District and Local Lodges to reclassify their real estate holding organizations as 501(c)(2) organizations; and

WHEREAS reclassifying an existing organization as an independent 501(c)(2) organization requires applying to the IRS as though it were a new organization, which is a relatively expensive process; and

WHEREAS reclassifying an existing organization under a group exemption code is a relatively inexpensive process; and

WHEREAS it would save the entire Order much time and money if only one application were made to the IRS for a 501(c)(2) organization;

THEREFORE BE IT RESOLVED that if and when the International Lodge requires District and Local Lodges to reclassify their real estate holding organizations as 501(c)(2) organizations, then the International Lodge will create a new 501(c)(2) organization with a group exemption code so that District and Local Lodges could reclassify their real estate holding organizations under the group exemption code.

COST TO ORGANIZATION: The cost to create a 501(c)(2) organization is estimated to be $900 for the IRS application, plus an estimated minimum of $10,000 in lawyer’s fees to shepherd the process. However, this same amount will then be saved by each District and Local Lodge that wants to reclassify their real estate holding organization. The Funds will have to come out of members’ existing dues.

p Approved p Defeated p Substituted p Amended ______

23. LODGE MERGER

WHEREAS the procedure for the merger of two lodges is not specifically addressed in the Constitution; and

WHEREAS spelling out the procedure would help lodges that are already constrained in resources; and

WHEREAS the procedure for the merger of lodges is similar but not identical to the dissolution of lodges;

THEREFORE BE IT RESOLVED that a new paragraph 4.22.8 be added to the Policies and Procedures manual as appropriate to read:

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4.22.8. LODGE MERGER 4.22.8.1. Motion to Merge. The Motion to Merge is treated the same way as an amendment or repeal of the Local Lodge Bylaws, except that prior notification is required as for a Special Meeting, and the vote must be made by secret ballot. A Lodge may not merge with another if it is under suspension. 4.22.8.2. Required Information. The Motion to Merge must specify the set of Bylaws to be used for the new Lodge. The Bylaws must specify the new Lodge’s name, number, dues amounts, officers, and meeting location. The merging Lodges must approve the same set of Bylaws, and submit them jointly to the Sons of Norway Headquarters. The merger shall be effective when the new Bylaws are approved by the Chief Executive Officer and Legal Counsel. 4.22.8.3. Continuity. The new Lodge is considered to be the successor of each of the merged Lodges, and is not considered a dissolution of the merged Lodges. The new Lodge may retain the name of one of its predecessors and/or the number of one of its predecessors. 4.22.8.4. Institution of the New Lodge. Election of Officers will take place at the first meeting of the new Lodge. The election will be chaired by a person of the new Lodge’s choosing. Delegates and Alternates to the next District Lodge Meeting may also be elected at this time.

p Approved p Defeated p Substituted p Amended ______

24. VOLUNTARY LODGE DISSOLUTION

WHEREAS the procedure for the voluntary dissolution of a lodge is not specifically addressed in the Constitution; and

WHEREAS spelling out the procedure would help lodges that are already constrained in resources; and

WHEREAS the procedure for the involuntary dissolution of lodges is already covered in section 4.22;

THEREFORE BE IT RESOLVED that a new paragraph 4.22.7 be added to the Policies and Procedures manual as appropriate to read:

4.22.7. VOLUNTARY LODGE DISSOLUTION 4.22.7.1. Motion to Dissolve. The Motion to Dissolve is treated the same way as an amendment or repeal of the Local Lodge Bylaws, except that prior notification is required as for a Special Meeting, and the vote must be made by secret ballot. A Lodge may not voluntarily dissolve if it is under suspension. 4.22.7.2. Required Documents. If the Motion to Dissolve carries, the following documents must be mailed to Sons of Norway Headquarters: a completed “Official Notice of Lodge Dissolution” form; the Lodge’s original charter document, if available; a completed “Lodge Income Statement and Balance Sheet” for the current year up to the date of the vote; and a completed “Funds Disbursement Plan”, detailing the plans for the distribution of any remaining Lodge assets. 4.22.7.3. Distribution of Assets. Sons of Norway Headquarters shall not oppose any plan of distribution that complies with relevant state and Federal Laws and regulations.

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4.22.7.4. Transfer of Members. The Motion to Dissolve may include a clause automatically transferring all members to another Lodge, provided that the receiving Lodge so approves. Otherwise, each member will be given the opportunity to transfer to another Lodge of their choice within a time limit set by the International Board. If no choice is made within the time limit, the member will be automatically transferred to the Central Lodge.

p Approved p Defeated p Substituted p Amended ______

25. STATUS OF DISTRICT LODGE MEMBERS

WHEREAS the status of District Lodge members from suspended, dissolved, or merged Lodges is not clearly specified by the Constitution; and

WHEREAS it would reduce confusion in the event of a Special Meeting or Referendum if the membership of the District Lodge did not change greatly from the regular Lodge meeting;

THEREFORE BE IT RESOLVED that a new paragraph 3.6.6 be added to the Policies and Procedures manual as appropriate to read:

3.6. MEMBERSHIP ADMINISTRATION 3.6.6. STATUS OF DISTRICT LODGE MEMBERS 3.6.6.1. Delegates-elect or Alternates-elect from suspended, dissolved, or merged Local Lodges may not be admitted as members of the District Lodge. Merged Local Lodges may elected new Delegates and Alternates from the new Lodge. 3.6.6.2. Once a member is admitted to the District Lodge, the member shall not be suspended or expelled from the District Lodge on account of the suspension, dissolution, or merger of their Local Lodge, provided that the member remains in good standing with Sons of Norway. 3.6.6.3. A Delegate-elect or Alternate-elect who transfers membership to another Local Lodge before being admitted as a member of the District Lodge will be treated as having resigned their election. Once a member is admitted to the District Lodge, the member shall not be suspended or expelled from the District Lodge on account of transferring to another Local Lodge.

p Approved p Defeated p Substituted p Amended ______

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DISTRICT 4 HAD NO RESOLUTIONS

DISTRICT 5 RESOLUTIONS 26. DISTRICT ACTIONS

WHEREAS general business “best practices” include all administrative levels of a large organization,

WHEREAS local lodges often correspond directly with Sons of Norway International headquarters with a problem or situation,

WHEREAS Sons of Norway International headquarters often takes action regarding a local lodge, and

WHEREAS often actions taken or resulting conditions require district headquarters intervene to satisfy the outcome; now,

THEREFORE BE IT RESOLVED that Sons of Norway International Headquarters take no action regarding a local lodge until the district to which the local lodge is assigned is involved in such action and International Headquarters notify the District upon receipt of direct correspondence.

p Approved p Defeated p Substituted p Amended ______

27. MEMBERSHIP CATEGORIES AND DUES

WHEREAS the current dues structure and membership categories are complicated and very hard to explain to prospective members AND for current members to understand; now,

THEREFORE BE IT RESOLVED that a committee be established by the International Lodge President to present a resolution in 2016 to the International Lodge which will simplify the current membership classifications to include Insurance/Social and Individual/Family and make total dues for each lodge consistent within each country.

p Approved p Defeated p Substituted p Amended ______DISTRICT 6, 7 AND 8 HAD NO RESOLUTIONS

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