reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-308 - Term and Renewal of Registration

(a)    A registration expires 2 years from the date of issuance unless it is renewed as provided in this section.
(b)    Before a registration expires, the registrant may renew it for an additional 2–year term, if the registrant:
(1)    otherwise is entitled to be registered;
(2)    files with the Commissioner a renewal application on the form that the Commissioner requires;
(3)    pays to the Commissioner a renewal fee of $50; and
(4)    except as provided in § 8–306(d) of this subtitle, files with the Commissioner evidence of a bond in compliance with § 8–306 of this subtitle.
(c)    An application for renewal of a registration shall be considered made in a timely manner if it is postmarked on or before the date the registration expires.
(d)    The Commissioner shall renew the registration of each registrant that meets the requirements of this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-308.1 - Reinstatement of Registration

(a)    Within 1 year after the expiration date, a person whose third party administrator’s registration has expired may reinstate the expired registration by:
(1)    filing with the Commissioner the appropriate reinstatement application;
(2)    subject to subsection (b) of this section, paying to the Commissioner a reinstatement fee of $100; and
(3)    complying with the bond requirement of § 8–306 of this subtitle.
(b)    The Commissioner may limit the reinstatement fee to the amount of the renewal fee in cases where the reinstatement applicant did not make timely renewal because of temporary incapacity, hospitalization, or other hardship.
(c)    A person whose third party administrator’s registration has expired is prohibited from acting as a third party administrator until the effective date of reinstatement of the registration.
(d)    A person who does not comply with subsection (a) of this section within 1 year after the expiration date shall apply for a third party administrator’s registration under § 8–305 of this subtitle and meet any other requirements specified by the Commissioner in regulation.
(e)    The Commissioner may adopt regulations to carry out this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-309 - Denials, Refusals to Renew, Suspensions, and Revocations

(a)    Subject to the hearing provisions of Title 2 of this article, the Commissioner may deny a registration to an applicant or refuse to renew, suspend, or revoke the registration of a registrant if the applicant or registrant:
(1)    makes a material misstatement in an application for registration;
(2)    fraudulently or deceptively obtains or attempts to obtain a registration for the applicant or registrant or for another;
(3)    has been convicted of a felony or of a misdemeanor involving moral turpitude;
(4)    in connection with the administration of a plan or with activities on behalf of a life insurer, commits fraud or engages in illegal or dishonest activities; or
(5)    violates any provision of this subtitle or a regulation adopted under it.
(b)    This section does not limit any regulatory power of the Commissioner under Title 2 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-310 - Administrator's Duties With Respect to Plan

An administrator shall discharge the administrator’s duties with respect to a plan or a life insurer:
(1)    solely in the interest of providing to the plan’s participants and beneficiaries the benefits to which they are entitled under the plan or on behalf of a life insurer;
(2)    for the exclusive purpose of providing benefits to the plan’s participants and beneficiaries and defraying reasonable expenses of administering the plan or on behalf of a life insurer;
(3)    with the care, skill, prudence, and diligence that a prudent person acting in a similar capacity and under similar circumstances would use to conduct an enterprise of similar character and with similar aims;
(4)    if applicable, by diversifying the investments of the plan or the life insurer to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and
(5)    in accordance with the documents and instruments governing the plan or the life insurer to the extent that the documents and instruments are not inconsistent with this subtitle.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-311 - Agreement Between Administrator and Plan Sponsor or Insurer

(a)    A person may not act as an administrator without a written agreement between the administrator and the plan sponsor or insurer.
(b)    An administrator shall retain the agreement required by this section as an official record of the administrator for the duration of the agreement and for 3 years after termination of the agreement.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-312 - Books and Records About Plan

(a)    An administrator shall maintain adequate books and records about each plan administered by the administrator or about activities of the administrator on behalf of a life insurer:
(1)    in accordance with prudent standards of record keeping; and
(2)    for the duration of the agreement required by § 8–311 of this subtitle.
(b)    Subject to any restrictions in the agreement required by § 8–311 of this subtitle on the proprietary rights of the parties in the books and records, the plan sponsor or insurer has the right to reasonable access to the books and records that is sufficient to allow the plan sponsor or insurer to fulfill its contractual obligations to the plan participants and beneficiaries.
(c)    If an administrator ceases to administer a plan or ceases to act on behalf of a life insurer, the administrator:
(1)    shall deliver the books and records about the plan or about activities on behalf of the life insurer that are in the administrator’s possession to the administrator’s successor, the plan sponsor, or the insurer; or
(2)    for 3 years after the administrator ceases to administer the plan or act on behalf of the life insurer:
(i)    shall retain the books and records about the plan or about activities on behalf of the life insurer; and
(ii)    shall provide access to the plan sponsor and insurer as provided under subsection (b) of this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-313 - Notice to Pharmacies of Change in Pharmaceutical Benefits

(a)    At least 30 days before the change is effective, an administrator of a plan that provides pharmaceutical benefits shall notify in writing all pharmacies under contract with the plan of any of the following changes in the pharmaceutical benefit program rules or requirements:
(1)    exclusion of coverage for classes of drugs as specified by contract;
(2)    changes in prior or preauthorization procedures; or
(3)    selection of new prescription claims processors.
(b)    An administrator that fails to provide advance notice under subsection (a) of this section shall honor and pay in full any claim under the program rules or requirements that existed before the change for 30 days after the postmarked date of the notice.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-315 - Waiver of Liability by Administrator Void; Liability Insurance

(a)    A provision in an agreement or instrument that relates to the administration of a plan that purports to relieve an administrator from responsibility or liability for a duty or requirement imposed under this subtitle is void as against public policy.
(b)    Notwithstanding subsection (a) of this section:
(1)    a plan may purchase insurance for its administrators or for itself to cover liability or losses that occur because of an act or omission of an administrator if the insurance allows recourse by the insurer against the administrator in a case of breach of responsibility under this subtitle by the administrator;
(2)    an administrator may purchase insurance to cover the administrator’s possible liability under this subtitle if the insurance is obtained for and paid from the administrator’s own account; or
(3)    an employer or an employee organization may purchase insurance to cover possible liability of one or more persons that act as administrators with respect to a plan.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-316 - Prohibited Activities of Administrator

(a)    With respect to a plan or the life insurer, an administrator, directly or indirectly:
(1)    may not deal with the assets of the plan or the life insurer in the administrator’s own interest or for the administrator’s own account;
(2)    in a transaction involving the plan or the life insurer, may not act in any capacity on behalf of or represent in any capacity a party whose interests are adverse to the interests of the life insurer, the plan, or the plan’s participants or beneficiaries;
(3)    other than commissions or service fees received from an insurer, may not receive consideration for the administrator’s own personal account from a party dealing with the plan or the life insurer in connection with a transaction involving the assets of the plan or the life insurer; or
(4)    may not knowingly participate in or attempt to conceal an act or omission of another administrator involved in the administration of that plan or in activities on behalf of the life insurer, knowing that the act or omission of the other administrator would be a violation of this subtitle.
(b)    An administrator may not procure the bond required by this subtitle from a surety insurer or other company or through an insurance producer in whose business operations the administrator has direct or indirect control or significant financial interest.
(c)    Notwithstanding subsection (a)(1) of this section, an administrator is not considered to have dealt with the assets of a plan in the administrator’s own interest or for the administrator’s own account solely because:
(1)    the administrator held the assets, at interest for the benefit of the administrator, for an administratively reasonable period of time before remitting the assets to an insurer or other payee; or
(2)    the compensation that the administrator receives for services necessary for establishing or operating the plan does not exceed reasonable compensation.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-318 - Discharging, Fining, Suspending, Expelling, Disciplining, or Discriminating Against Plan Participant or Beneficiary

(a)    A person may not discharge, fine, suspend, expel, discipline, or discriminate against a plan participant or beneficiary:
(1)    for exercising a right to which the participant or beneficiary is entitled under this subtitle; or
(2)    for the purpose of interfering with a right to which the participant or beneficiary may become entitled under this subtitle.
(b)    A person may not discharge, fine, suspend, expel, discipline, or discriminate against a person, whether or not the person is a plan participant or beneficiary, because the person:
(1)    has given information or testified in an inquiry or proceeding that relates to this subtitle; or
(2)    is about to give information or testify in an inquiry or proceeding that relates to this subtitle.
(c)    A person may not, by fraud, force, violence, or the threat of force or violence, restrain, coerce, or intimidate or attempt to restrain, coerce, or intimidate a plan participant or beneficiary for the purpose of interfering with or preventing the exercise of a right to which the plan participant or beneficiary is or may become entitled under this subtitle.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-319 - Investigations by Commissioner

(a)    (1)    A person aggrieved by the conduct of a person registered or required to be registered under this subtitle may file a written complaint with the Commissioner.
(2)    On receipt of a complaint, the Commissioner shall investigate the complaint.
(b)    The Commissioner may investigate any person if the Commissioner has reasonable cause to believe that the person has violated any provision of this subtitle or a regulation adopted under it.
(c)    Without limitation of the powers granted to the Commissioner under Title 2 of this article, in connection with an investigation under this section, the Commissioner may:
(1)    examine the books and records of a person registered under this subtitle or any other person that the Commissioner believes has violated this subtitle or a regulation adopted under it;
(2)    subpoena documents and other evidence; and
(3)    summon and examine under oath a person whose testimony the Commissioner requires.
(d)    For the purpose of conducting an investigation under this section, the Commissioner may not require an administrator to submit to the Commissioner, more than once in a 12-month period, any books or records of a plan administered by the administrator unless the Commissioner has reasonable cause to believe that a violation of this subtitle or a regulation adopted or order issued under it exists.
(e)    Subject to subsection (f) of this section, the Commissioner may make available information about a matter that may be subject to an investigation to:
(1)    the National Association of Insurance Commissioners;
(2)    a unit of state or federal government; and
(3)    a person that is the subject of the investigation.
(f)    Unless disclosure is required by a court of competent jurisdiction in a legal proceeding, the Commissioner shall keep confidential and may not disclose a trade secret or commercial information contained in:
(1)    an administrator’s books, records, or other documents; or
(2)    data provided by the administrator, including the identity and address of persons covered by a plan.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-320 - Enforcement of Subtitle

(a)    To enforce this subtitle and any regulation adopted under it, the Commissioner may issue an order that requires the violator to:
(1)    cease and desist from the violation and further similar violations; and
(2)    take specific affirmative action to correct the violation, including:
(i)    the restitution of money, property, or other assets to a person aggrieved by the violation;
(ii)    the restoration to the plan or the life insurer of profits realized by the administrator that have been made through use of assets of the plan or the life insurer by the administrator; and
(iii)    the removal of the administrator that committed the violation.
(b)    (1)    The Commissioner may file a petition in the circuit court of any county to enforce an order issued under this section.
(2)    In an action brought by the Commissioner under this section, the Commissioner may recover for the use of the State reasonable attorney’s fees and the costs of the action.
(c)    (1)    In addition to any other enforcement action taken by the Commissioner under this section, the Commissioner may impose a civil penalty of not more than $10,000 for each violation of this subtitle.
(2)    Notwithstanding paragraph (1) of this subsection, the Commissioner may impose a civil penalty of not more than $1,000 per day for each day that a person is in violation of § 8–303(a) of this subtitle.
(3)    In determining the amount of the civil penalty imposed under this subsection, the Commissioner shall consider:
(i)    the seriousness of the violation;
(ii)    the good faith of the violator;
(iii)    the violator’s history of previous violations;
(iv)    the deleterious effect of the violation on the plan and its participants and beneficiaries;
(v)    the assets of the violator; and
(vi)    any other factors that relate to the determination of a financial penalty.
(d)    This section does not limit any regulatory power of the Commissioner under Title 2 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 3 - Third Party Administrators › Section 8-321 - Liability of Administrator

(a)    With respect to a plan or activities on behalf of a life insurer, an administrator who breaches a responsibility imposed on the administrator by this subtitle:
(1)    is personally liable for the restitution of money, property, or other assets to a person aggrieved by the violation and for the restoration to the plan of any profits realized by the administrator that have been made through use of assets of the plan by the administrator; and
(2)    is subject to any other equitable or remedial relief that a court considers appropriate, including removal of the administrator.
(b)    In addition to any liability that an administrator may have under subsection (a) of this section, the administrator is liable for a breach of responsibility under this subtitle by another administrator with respect to the same plan if the administrator:
(1)    knowingly participates in or knowingly attempts to conceal an act or omission of the other administrator involved in the administration of the same plan, knowing that the act or omission of the other administrator would be a violation of this subtitle;
(2)    by the administrator’s failure to comply with § 8–310 of this subtitle, has enabled the other administrator to violate this subtitle; or
(3)    knows of a violation of this subtitle by the other administrator, unless the administrator makes reasonable efforts under the circumstances to remedy the violation.
(c)    (1)    An administrator is not liable under this subtitle, by reason of a breach of responsibility, for a loss to a participant’s or beneficiary’s account if:
(i)    the plan provides for individual accounts and allows a participant or beneficiary to exercise investment control over assets in the participant’s or beneficiary’s account;
(ii)    the participant or beneficiary exercises that control; and
(iii)    the loss or breach results from the participant’s or beneficiary’s exercise of that investment control.
(2)    An administrator is not liable for a violation of this subtitle if the violation was committed before the administrator became an administrator or after the administrator ceased to be an administrator.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part I - Definitions; General Provisions › Section 8-401 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Benefit contract” means the agreement for provision of benefits authorized by § 8-432 of this subtitle.
(c)    “Benefit member” means an adult member who is designated by the laws or rules of a society to be a benefit member under a benefit contract.
(d)    “Certificate” means the document issued as written evidence of a benefit contract.
(e)    “Laws” means a society’s articles of incorporation, constitution, and bylaws, however designated.
(f)    “Lodge” means subordinate member units of a society, known as camps, courts, councils, branches, or by any other designation.
(g)    “Premiums” means premiums, rates, dues, or other required contributions by whatever name known that are payable under a certificate.
(h)    “Rules” means all rules, regulations, or resolutions adopted by the supreme governing body or board of directors of a society which are intended to have general application to the members of the society.
(i)    Unless the context requires otherwise, “society” means fraternal benefit society.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part I - Definitions; General Provisions › Section 8-403 - Application of Subtitle and Other Insurance Laws

(a)    (1)    Except as otherwise provided in this section, societies are:
(i)    governed exclusively by this subtitle; and
(ii)    exempt from the other insurance laws of the State.
(2)    A statute enacted after December 31, 1963, does not apply to societies unless the statute expressly states that it applies to them.
(b)    (1)    In addition to the provisions of this subtitle, the following provisions of this article apply to societies to the extent not in conflict with the express provisions and reasonable implications of this subtitle:
(i)    Title 1 of this article;
(ii)    Title 2, Subtitle 1 of this article, including § 2–112 of this article;
(iii)    Title 2, Subtitle 2 of this article;
(iv)    § 3–117 of this article;
(v)    § 3–127 of this article;
(vi)    § 4–102(b) of this article;
(vii)    § 4–113(a)(7), (8), and (9) of this article;
(viii)    § 4–203 of this article;
(ix)    § 4–204 of this article;
(x)    § 5–103 of this article;
(xi)    § 5–201 of this article;
(xii)    Title 6, Subtitle 2 of this article;
(xiii)    Title 9, Subtitle 2 of this article;
(xiv)    § 10–120 of this article;
(xv)    Title 15, Subtitle 9 of this article;
(xvi)    Title 27 of this article;
(xvii)    § 1–301 of this article; and
(xviii)    Title 4, Subtitle 3 of this article.
(2)    In addition to the provisions of this subtitle, societies are subject to the provisions of Title 13, Subtitle 5 of the Estates and Trusts Article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part I - Definitions; General Provisions › Section 8-405 - Taxation of Societies

(a)    A society organized or authorized to transact business under this subtitle is deemed to be a charitable and benevolent institution.
(b)    The funds of a society organized or authorized to transact business under this subtitle are exempt from all taxes, except taxes on real estate and office equipment.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part I - Definitions; General Provisions › Section 8-406 - Retention of Powers by Existing Incorporated Societies

(a)    An incorporated society authorized to transact insurance business in the State on December 31, 1963, may exercise all the rights, powers, and privileges prescribed in this subtitle and in the charter or articles of incorporation of the society to the extent consistent with this subtitle.
(b)    A domestic society is not required to reincorporate.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part I - Definitions; General Provisions › Section 8-407 - Service of Process

(a)    (1)    Each society authorized to do business in the State must appoint the Commissioner as attorney for service of process issued against the society and any successor in interest in the State.
(2)    The appointment of the Commissioner shall:
(i)    be made in writing; and
(ii)    state that:
1.    any process against the society that is served on the Commissioner has the same legal effect as if served on the society; and
2.    the appointment remains in effect as long as any liability of the society remains outstanding in the State.
(b)    A copy of an appointment made under this section and certified by the Commissioner is deemed sufficient evidence of the appointment and shall be admitted in evidence with the same effect as if it were the original.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-410 - Formation of Society

(a)    Seven or more individuals, acting as incorporators, may form a society under this subtitle.
(b)    (1)    Each incorporator of a society must be a citizen of the United States.
(2)    A majority of the incorporators must be citizens of the State.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-411 - Articles of Incorporation of Society

(a)    The incorporators shall sign and acknowledge the articles of incorporation.
(b)    The articles of incorporation shall include:
(1)    the purpose for which the society is being formed and the manner in which its corporate powers are to be exercised;
(2)    the name of the society;
(3)    the name, address, and state of residence of each incorporator; and
(4)    the name, address, residence, and official title of each officer, trustee, director, and any other individual who will have general control of the management of the affairs and funds of the society for the first year and until the first election.
(c)    (1)    The powers set forth in the articles of incorporation may not exceed the powers granted to societies by this subtitle.
(2)    The purposes of a society may include any lawful social, intellectual, educational, charitable, benevolent, moral, fraternal, or religious activity.
(d)    The name of a society may not be misleadingly or confusingly similar to the name of any other society or insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-412 - Filing Requirements

(a)    The incorporators shall file with the Commissioner:
(1)    the articles of incorporation of the society;
(2)    certified copies of the society’s laws and rules;
(3)    copies of all proposed:
(i)    forms of certificates;
(ii)    applications for certificates; and
(iii)    circulars to be issued by the society; and
(4)    a bond conditioned on the return to applicants of advance premiums if the organization of the society is not completed within 1 year.
(b)    The Commissioner may require any additional information that the Commissioner considers necessary.
(c)    The bond required under subsection (a) of this section must:
(1)    be issued by a surety insurer approved by the Commissioner; and
(2)    be in the amount required by the Commissioner, but not less than $300,000 nor more than $1,500,000.
(d)    Each document filed shall be in the English language.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-413 - Minimum Capital

(a)    Each society that applies on or after July 1, 1968, for an initial certificate of authority under this subtitle must have working capital of at least $125,000.
(b)    After issuance of its initial certificate of authority, a society described in subsection (a) of this section shall maintain unencumbered assets that exceed all liabilities by $100,000.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-414 - Preliminary Certificate of Authority

If a society complies with this subtitle, the Commissioner shall:
(1)    certify, retain, and record the articles of incorporation of the society; and
(2)    provide the incorporators with a preliminary certificate of authority that authorizes the society to solicit members as provided in this subtitle.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-415 - Completing Organization of Society

(a)    (1)    After receiving a preliminary certificate of authority from the Commissioner, a society may solicit members for the purposes of completing its organization.
(2)    Until the society complies with the requirements of subsection (b) of this section, the society may not:
(i)    incur any liability other than for the return of an advance premium;
(ii)    issue any certificate; or
(iii)    pay, allow, or offer or promise to pay or allow any death or disability benefit.
(b)    Each society shall:
(1)    secure bona fide applications for death benefits in an aggregate amount of at least $500,000 on at least 500 lives;
(2)    receive from each applicant evidence of insurability satisfactory to the society;
(3)    have on file certificates of examination or acceptable declarations of insurability approved by the society’s chief medical examiner;
(4)    collect from each applicant the amount of at least one regular monthly premium under the society’s table of rates as provided by the society’s laws, and issue to each applicant a receipt for the amount received;
(5)    collect premiums as provided in item (4) of this subsection in an aggregate amount of at least $150,000 and credit the premiums to the funds from which benefits are to be paid;
(6)    establish at least ten subordinate lodges or branches into which the applicants are admitted;
(7)    submit to the Commissioner, under the oath of the president, secretary, or an equivalent officer of the society, the name, address, date of admission, and amounts of benefits and premiums of each applicant, and the name and number of the subordinate branch of which the applicant is a member; and
(8)    submit to the Commissioner, under oath of the treasurer or an equivalent officer of the society, a statement that at least 500 applicants have paid the premiums required by items (4) and (5) of this subsection.
(c)    All advance premiums shall be held in trust during the period of organization and, if the society has not qualified for a certificate of authority within 1 year, the premiums shall be returned to the applicants.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-416 - Time for Completing Organization

(a)    Except as provided in subsection (b) of this section, unless a society receives a certificate of authority as provided in § 8-417 of this subtitle, the preliminary certificate of authority of the society, its articles of incorporation, and each action taken under the authority of the preliminary certificate of authority are void 1 year after the preliminary certificate of authority is issued.
(b)    For good cause shown, the Commissioner may extend the preliminary certificate of authority for an additional period not exceeding 1 year.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-417 - Certificate of Authority

(a)    Before the Commissioner issues a certificate of authority, the Commissioner may make any examination and require any additional information that the Commissioner considers necessary.
(b)    On presentation of satisfactory evidence that the society has complied with this subtitle, the Commissioner shall issue to the society a certificate of authority that authorizes the society to transact business under this subtitle.
(c)    The certificate of authority is prima facie evidence that the society existed on the date of the certificate of authority.
(d)    The Commissioner shall record the certificate of authority in the office of the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-418 - Constitution and Laws; General Powers

(a)    A society may adopt and amend laws to:
(1)    govern the society;
(2)    admit society members;
(3)    manage society affairs; and
(4)    fix and readjust the rates of society members.
(b)    (1)    The laws of the society may provide that subordinate lodges or branches and their officers and members may not waive any provisions of the laws of the society.
(2)    A provision adopted in accordance with this subsection is binding on the society and each member and beneficiary of a member.
(c)    Except as prohibited by this subtitle, a society has any other power necessary and incidental to accomplish the purposes for which it is established.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-419 - Amendments to Laws

(a)    A society may amend the society’s laws, in accordance with the provisions of those laws, by:
(1)    action of its supreme legislative or governing body at a regular or special meeting of the body; or
(2)    referendum.
(b)    (1)    An amendment by referendum may be approved in accordance with the laws of a society, by the vote of:
(i)    the society’s voting members;
(ii)    the delegates or representatives of the society’s voting members; or
(iii)    the society’s local lodges or branches.
(2)    An amendment may not be adopted by referendum unless, within 6 months after it is submitted for adoption, a majority of all the voting members of the society have consented to the amendment.
(c)    (1)    An amendment to the laws of a society may not take effect unless the Commissioner approves.
(2)    The Commissioner shall approve an amendment if the Commissioner finds that the amendment was adopted properly and is not inconsistent with the laws of the State or the society.
(3)    The Commissioner’s approval or disapproval shall be in writing and mailed to the secretary or equivalent officer of the society at the society’s principal office.
(4)    The Commissioner shall include in a notice of disapproval a statement of the reasons for the disapproval.
(5)    Unless disapproved by the Commissioner, an amendment is deemed approved 60 days after it is filed with the Commissioner.
(d)    (1)    Within 90 days after approval by the Commissioner, each amendment or a synopsis of it shall be mailed by the society to each member of the society or published in full in the official publication of the society.
(2)    The affidavit of an individual authorized by the society to mail an amendment or synopsis, stating that the amendment or synopsis was addressed properly and mailed, is prima facie evidence that the amendment or synopsis was provided to the addressee.
(e)    A printed copy of the laws as amended, certified by the secretary or equivalent officer of the society, is prima facie evidence of the amendment.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-421 - Membership

(a)    (1)    A society may admit to membership an individual who:
(i)    is older than 14 1/2 years old; and
(ii)    gives the society evidence of insurability acceptable to the society.
(2)    A minor who is admitted to the society is:
(i)    bound by the terms of the application and certificate and by the laws and rules of the society; and
(ii)    entitled to the rights and privileges of membership as though the individual were an adult at the time of application.
(b)    A society also may admit general or social members who do not have a voice or vote in the management of the society’s insurance affairs.
(c)    The members of a grand, supreme, or subordinate lodge or branch of a society are not personally liable for payment of a benefit provided by the society.
(d)    A society shall specify in its laws or rules the rights and privileges of each membership class.
(e)    Membership rights in a society are personal to the member and not assignable.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-422 - Office; Meetings; Minutes

(a)    The principal office of a domestic society shall be located in the State.
(b)    Meetings of the supreme legislative or governing body of a society may be held in any state, district, province, or territory where the society has at least five subordinate branches.
(c)    The minutes of the proceedings of the supreme legislative or governing body and of the board of directors or equivalent body of a society shall be in English.
(d)    A society may provide in its laws or rules for grievance or complaint procedures for members.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part II - Formation, Organization, and Authority to Do Business › Section 8-423 - Term and Renewal of Certificate of Authority

(a)    A certificate of authority of a society expires on the first June 30 after its effective date unless it is renewed as provided in this section.
(b)    At least 1 month before a certificate of authority expires, the Commissioner shall mail to the holder of the certificate of authority, at the last known address of the holder, or send by electronic means in accordance with § 2–116 of this article:
(1)    a renewal application form; and
(2)    a notice that states:
(i)    the date on which the current certificate of authority expires;
(ii)    the date by which the Commissioner must receive the renewal application for the renewal to be issued and mailed before the certificate of authority expires; and
(iii)    the amount of the renewal fee.
(c)    Before a certificate of authority expires, the holder of the certificate of authority may renew it for an additional 1-year term, if the holder:
(1)    otherwise is entitled to a certificate of authority;
(2)    files with the Commissioner a renewal application on the form that the Commissioner provides; and
(3)    pays to the Commissioner the fee for renewal of certificates of authority of insurers required by § 2-112 of this article.
(d)    (1)    The Commissioner shall renew the certificate of authority of each holder who meets the requirements of this subtitle.
(2)    If a certificate holder pays the applicable renewal fee before the certificate of authority expires, the certificate of authority remains in effect until the Commissioner renews or refuses to renew the certificate of authority.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part III - Benefits › Section 8-427 - Benefits in General

(a)    A society authorized to do insurance business in the State may provide for the payment of:
(1)    life insurance benefits;
(2)    annuity benefits;
(3)    health insurance benefits;
(4)    monument or tombstone benefits to the memory of a deceased member of the society; and
(5)    such other benefits as authorized for life insurers and which are not inconsistent with this subtitle.
(b)    (1)    A society shall specify in its laws those persons who may receive benefits through the society.
(2)    (i)    For all coverages, the member shall be the applicant or the insured.
(ii)    If the member is the applicant, there shall be a bona fide familial or other dependent relationship between the member and the insured or beneficiary.
(3)    (i)    Every society, by its laws, may limit the scope of beneficiaries only to the extent required by federal law governing fraternal benefit societies.
(ii)    The society may specify the terms and conditions on which benefits certificates may be assigned.
(c)    A society may not provide benefits through group insurance coverages.
(d)    A member who applies for additional benefits more than 6 months after becoming a benefit member shall provide additional evidence of insurability acceptable to the society.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part III - Benefits › Section 8-428 - Benefits on Lives of Children

(a)    In this section, “eligible children” means children under the minimum age for adult membership but not more than 18 years old at the time of application.
(b)    A society may provide for benefits on the lives of eligible children:
(1)    in accordance with § 8-427 of this subtitle;
(2)    in accordance with the laws or rules of the society; and
(3)    on application of an adult.
(c)    (1)    A society may organize and operate branches for eligible children.
(2)    A society may not require eligible children to be members of or be initiated in a local lodge.
(3)    Eligible children may not participate in the management of the society.
(d)    (1)    On obtaining the minimum age for adult beneficial membership under the laws of the society, eligible children insured under certificates issued under this section shall be transferred to and become members of the adult branch of the society if the children otherwise meet the eligibility requirements of the society.
(2)    If a child fails to meet the adult eligibility requirements of the society, the transfer is effective only as to the child’s insurance account.
(e)    A society may provide for:
(1)    the designation and changing of designation of beneficiaries in certificates;
(2)    the regulation of certificates; and
(3)    all rights, obligations, and liabilities incident to the certificates.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part III - Benefits › Section 8-429 - Nonforfeiture Benefits, Cash Surrender Values, Certificate Loans, and Other Options

(a)    For certificates issued before January 1, 1998, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall comply with the provisions of law applicable on December 31, 1997.
(b)    (1)    Each paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted under a certificate may not be less than the corresponding amount ascertained under the laws of the State that apply to life insurers issuing policies containing like insurance benefits based on the same tables.
(2)    This subsection applies to certificates issued on or after January 1, 1998, for which reserves are computed on:
(i)    the Commissioners 1941 Standard Ordinary Mortality Table;
(ii)    the Commissioners 1941 Standard Industrial Table;
(iii)    the Commissioners 1958 Standard Ordinary Mortality Table;
(iv)    the Commissioners 1980 Standard Mortality Table; or
(v)    any more recent table authorized for use under § 5-304(b) of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part III - Benefits › Section 8-430 - Beneficiaries; Funeral Benefits; Payment of Benefits to Personal Representative

(a)    (1)    A member of a society may change the beneficiary in a certificate at any time in accordance with the laws or rules of the society.
(2)    By its laws or rules, a society:
(i)    may limit the scope of beneficiaries; and
(ii)    shall provide that a beneficiary may not have or get a vested interest in the proceeds of a certificate until the certificate becomes due and payable under the insurance contract.
(b)    (1)    A society may provide for the payment of funeral benefits, not exceeding $5,000, to the extent of that part of any payment under a certificate that reasonably appears to be due to a person equitably entitled to reimbursement of expenses incurred by the burial of a member.
(2)    (i)    Subject to subparagraph (ii) of this paragraph, if at the death of a member there is no lawful beneficiary to whom the insurance benefits are payable, the society shall pay to the personal representative of the deceased member the insurance benefits under the certificate, less any funeral benefits paid under paragraph (1) of this subsection.
(ii)    If the owner of the certificate is other than the insured, the proceeds shall be payable to that owner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part III - Benefits › Section 8-431 - Benefits Exempt From Attachment or Execution

Benefits to be paid by a society are not subject to attachment, garnishment, or other process and may not be seized, appropriated, or applied by any process or operation of law to pay a debt or liability of a member, beneficiary, or other person with a right to the benefit, whether before or after payment.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part III - Benefits › Section 8-432 - Benefit Certificates -- Issuance; Statements as Representations; Amendments to Laws; Certified Copies as Evidence

(a)    (1)    Each society authorized to do business in the State shall issue to each member entitled to benefits a certificate that specifies the amount of benefits provided under the certificate.
(2)    The certificate, any rider or endorsement attached to the certificate, the laws of the society, the application for membership, any declaration of insurability signed by the applicant, and all amendments to each of these documents constitute the agreement between the society and the member as of the date of issuance of the certificate.
(3)    The certificate shall state that the documents listed in paragraph (2) of this subsection constitute the agreement between the society and the member as of the date of issuance of the certificate.
(4)    A copy of the application for membership and of any declaration of insurability shall be endorsed on or attached to the certificate.
(b)    (1)    Each statement purporting to be made by an applicant for insurance is a representation and not a warranty.
(2)    A waiver of this subsection is void.
(c)    (1)    Subject to paragraph (2) of this subsection, an amendment to the laws made after the date of issuance of the certificate:
(i)    binds the member and each beneficiary; and
(ii)    governs the agreement between the society and the member as though the amendments were made before and were in force on the date that the member applied for membership.
(2)    An amendment does not destroy or diminish the benefits that the society contracted to give the member or owner as of the date of issuance of the certificate.
(d)    A copy of a document listed in this section, certified by the secretary or equivalent officer of the society, is evidence of the terms and conditions of the document.