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2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 1 - Definitions

Section 1. Any incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries, and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which makes provision for the payment of benefits in accordance with this chapter, is hereby declared to be a fraternal benefit society.
As used in this chapter, the following words shall have the following meanings:—
''Benefit contract'', the agreement for provision of benefits authorized by section 17.
''Benefit member'', an adult member who is designated by the laws of the society to be a member under a benefit contract.
''Certificate'', any document issued as written evidence of the benefit contract.
''Commissioner'', the commissioner of insurance.
''Fraternal benefit society or society'', an incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries, and not for profit, operated on a lodge system with a ritualistic form of work, having a representative form of government, and which makes provision for the payment of benefits in accordance with this chapter. Fraternal benefit societies shall be governed by the provisions of this chapter and shall not be subjected to any provisions of chapter 176P.
''Laws'', the society's articles of incorporation, constitution and by-laws however designated.
''Limited society'', a domestic society or association that meets the requirements of section 45 or section 46 as in full force and effect immediately preceding August 15, 1958 and as codified in chapter 176P. Limited societies shall not include any society defined in this section. Limited societies shall be governed by said chapter 176P and shall not be subject to this chapter as modified, amended or added after August 15, 1958.
''Premiums'', premiums, rates, dues or other required contributions by whatever name known, which are payable under the certificate.
''Rules'', all rules, regulations or resolutions adopted by the supreme governing body or board of directors that are intended to have general application to the members of the society.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 2 - Lodge System

Section 2. A society having a supreme legislative or governing body and subordinate lodges or branches by whatever name known, into which members are elected, initiated or admitted in accordance with its constitution, by-laws, ritual and rules, which subordinate lodges or branches are required by the by-laws of the society to hold regular meetings at least once in each month, shall be deemed to be operating on the lodge system.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 3 - Representative Form of Government

Section 3. A society has a representative form of government when:
(a) it has a supreme governing body constituted in one of the following ways:
(1) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than two-thirds of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws.
(2) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board may be filled in the manner prescribed by the society's laws. Those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society.
(b) the officers of the society are elected whether by the supreme governing body or by the board of directors.
(c) only benefit members are eligible for election to the supreme governing body, the board of directors or any intermediate assembly.
(d) each voting member shall have one vote and no vote may be cast by proxy.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 5 - Principal Office

Section 5. The principal office of any domestic society shall be located in the commonwealth. The meetings of its supreme legislative or governing body may be held in any state, district, province or territory wherein such society has at least five subordinate branches, and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in the commonwealth.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 6 - Change in Location of Place of Business or Purposes of Incorporation; Rights, Powers and Privileges

Section 6. A domestic fraternal benefit corporation may, with the approval of the commissioner, change the location of its place of business to another location in the commonwealth, or change the purposes for which it was incorporated so as to permit it to transact any business authorized by this chapter. Upon such approval the presiding, financial and recording officers, and a majority of its other officers having the powers of directors, shall file in the office of the state secretary a certificate, with the approval of the commissioner endorsed thereon, setting forth the change in the location of its place of business or in the purposes of the corporation. The state secretary shall, upon receipt of a fee to be determine annually by the commissioner of administration under the provision of section three B of chapter seven, cause such certificate to be filed in his office. Every domestic fraternal beneficiary corporation may exercise all the rights, powers and privileges conferred by this chapter, including the powers specified in section forty, or its certificate of incorporation or charter, not inconsistent herewith, and shall be subject to this chapter, as if reincorporated hereunder.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 8 - Conversion to Mutual Life Insurance Company

Section 8. Any domestic society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of chapter one hundred and seventy-five relating to the financial requirements of mutual life insurance companies if such plan of conversion has been approved by the commissioner. Such plan shall be prepared in writing setting forth in full the terms and conditions thereof. The board of directors shall submit such plan to the supreme legislative or governing body of such society at any regular or special meeting thereof, by giving a full, true and complete copy of such plan, with the notice of such meeting. Such notice shall be given as provided in the laws of the society for the convocation of a regular or special meeting of such body, as the case may be. The affirmative vote of two thirds of all members of such body shall be necessary for the approval of such agreement. No such conversion shall take effect unless and until approved by the commissioner who may give such approval if he finds that the proposed change is in conformity with the requirements of law and not prejudicial to the certificate holders of the society.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 9 - Admission to Membership

Section 9. A society may admit to benefit membership any person not less than fifteen years of age, nearest birthday, who has furnished evidence of insurability acceptable to the society. Any such member who shall apply for additional benefits more than six months after becoming a benefit member shall pass an additional medical examination, or make an additional declaration of insurability, as required by the society.
Any person admitted prior to attaining the age of majority shall be bound by the terms of the application and certificate and by all the by-laws and rules of the society, and shall be entitled to all the rights and privileges of membership therein to the same extent as though said applicant had attained said full age at the time of application.
No society authorized to issue certificates under this chapter may refuse to admit to benefit membership any person, otherwise qualified, for the sole reason of blindness.
A society shall specify in its laws or rules eligibility standards for each and every class of membership, the process for admission to membership, the process for admission to membership for each membership class, and the rights and privileges of each membership class, but only the benefit members shall have the right to vote on the management of insurance affairs of the society.
Membership rights of a society are personal to the member and are not assignable.
A society may provide in its laws or rules for grievance or complaint procedures for members.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 10 - Amendment of Articles of Incorporation

Section 10. A domestic society may amend its articles of incorporation, constitution or laws in accordance with the provisions thereof by action of its supreme legislative or governing body at any regular or special meeting thereof, or, if its articles of incorporation, constitution or laws so provide, by referendum. Such referendum may be held in accordance with the provisions of its articles of incorporation, constitution or by-laws by the vote of the voting members of the society, by the vote of delegates or representatives of voting members, or by the vote of local lodges or branches. No amendment submitted for adoption by referendum shall be adopted unless, within six months from the date of submission thereof, a majority of all of the voting members of the society shall have signified their consent to such amendment by one of the methods herein specified.
No amendment to the articles of incorporation, constitution or by-laws of any domestic society shall take effect unless approved by the commissioner who shall approve such amendment if he finds that it has been duly adopted and is not inconsistent with any requirement of the laws of the commonwealth or with the character, objects and purposes of the society. Unless the commissioner shall disapprove any such amendment within sixty days after the filing of same, such amendment shall be considered approved. The approval or disapproval of the commissioner shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office. In case he disapproves such amendment, the reasons therefor shall be stated in such written notice.
Within ninety days from the approval thereof by the commissioner, or from the time such amendment is considered approved, as provided in this section, all such amendments, or a synopsis thereof, shall be furnished to all members of the society either by mail or by publication in full in the official organ of the society. The affidavit of any officer of the society or of any one authorized by it to mail any amendments or synopsis thereof, stating facts which show that same have been duly addressed and mailed, shall be prima facie evidence that such amendments or synopsis thereof have been furnished the addressee.
Every foreign or alien society authorized to do business in the commonwealth shall file with the commissioner a duly certified copy of all amendments of, or additions to, its articles of incorporation, constitution or laws within ninety days after the enactment of same.
Printed copies of the constitution or laws, as amended, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 11 - Fraudulent Alteration, etc., of Records

Section 11. Whoever with fraudulent intent alters, defaces, mutilates, destroys or conceals any record of any society made by or in the custody of the secretary thereof shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 12 - Funds

Section 12. Any society may create, maintain, invest, disburse and apply a death fund, any part of which may in accordance with the by-laws of the society be designated and set apart as an emergency, a surplus or other similar fund, and a disability fund and a hospitalization and medical service fund. Such funds shall be held, invested and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any part thereof except as provided in sections seventeen, twenty or twenty-five. The funds from which benefits shall be paid shall be derived and the fund from which the expenses of the society shall be defrayed may be derived from periodical or other payments by the members of the society and accretions of said funds.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 13 - Disbursements; Vouchers

Section 13. No society shall make any disbursements of fifteen dollars or more, except disbursements on account of the return of dues paid in advance, unless the same be evidenced by a voucher signed by or on behalf of the person receiving the money and correctly describing the consideration for the payment, and if the same be for services and disbursements setting forth the services rendered and an itemized statement of the disbursements made; and if it be in connection with any matter pending before any legislature or public body, or before any department, board, commission or officer of any government, whether local, state or national, correctly describing in addition the nature of the matter and of the interest of such society therein; or, if such voucher cannot be obtained, by an affidavit stating the reason for not obtaining such voucher, and setting forth the particulars above mentioned.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 14 - Creation and Operation of Charitable, Benevolent or Educational Institutions

Section 14. It shall be lawful for a society to create, maintain and operate charitable, benevolent or educational institutions for the benefit of its members and their families and dependents, and for the benefit of children insured by the society. For such purpose it may own, hold or lease personal property or real property located within or without the commonwealth, with necessary buildings thereon. Such property shall be reported in every annual statement, but shall not be allowed as an admitted asset of such society.
Maintenance, treatment and proper attendance in any such institution may be furnished free or a reasonable charge may be made therefor, but no such institution shall be operated for profit. The society shall maintain a separate accounting of any income and disbursements under this section and report them in its annual statement. No society shall own or operate funeral homes or undertaking establishments.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 15 - Benefits Other Than Insurance Benefits

Section 15. A society may pay benefits, other than insurance benefits, to its members from any special account or fund maintained for such purpose; provided, that if such benefits are of such a nature that they could constitute benefits within the classes of insurance set forth in section seventeen, a society making such payments may not—
(a) Make any separate charge therefor;
(b) Issue any certificate, policy or other document promising such payments;
(c) Provide in its constitution, laws or any other document that such payments may be received by the member as a matter of right; or
(d) Advertise such payments as insurance or as payments to which the member has any right.
The society shall maintain a separate accounting of all disbursements made under this section and report them in its annual statement.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 17 - Benefits

Section 17. A society authorized to do business in the commonwealth may provide for the payment of—
(a) Death benefits in any form;
(b) Endowment benefits;
(c) Annuity benefits;
(d) Temporary or permanent disability benefits;
(e) Hospital, medical or nursing benefits;
(f) Monument or tombstone benefits to the memory of deceased members not exceeding in any case the sum of three hundred dollars; and
(g) Such other benefits as authorized for life insurers and which are not inconsistent with this chapter.
A society shall specify in its rules those persons who may be issues, or covered by, the contractual benefits authorized in clauses (a) to (g), inclusive, consistent with providing benefits to members and their dependents.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 18 - Children

Section 18. A society may provide for benefits on the lives of children under the minimum age for adult membership, but not greater than eighteen years of age at time of application therefor, upon the application of some adult person, as its by-laws or rules may provide, which benefits shall be in accordance with the provisions of section seventeen. A society may, at its option, organize and operate branches for such children. Membership and initiation in local lodges shall not be required of such children, nor shall they have a voice in the management of the society.
A society shall have power to provide for the designation and changing of designation of beneficiaries in the certificates providing for such benefits, and to provide in all other respects for the regulation, government and control of such certificates, and all rights, obligations and liabilities incident thereto and connected therewith.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 19 - Deferred Payments or Instalments

Section 19. Deferred payments or instalments of claims shall be considered as fixed liabilities on the happening of the contingency upon which such payments or instalments are thereafter to be paid. Such liability shall be the present value of such future payments or instalments upon the rate of interest and mortality assumed by the society for establishing contributions and for valuation; and every society shall at once, upon the filing of due proofs of the happening of the contingency, set apart a fund to meet such deferred payments, regardless of proposed future collections to meet any such payments, and hold such fund, with its interest accretions, in trust for the beneficiary entitled thereto.
No society shall provide for such deferred payments or instalments unless it possesses the full reserve specified in the following section, or, if paying accident benefits only, has assets sufficient to pay all its liabilities.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 20 - Paid-Up Nonforfeiture Benefits, Cash Surrender Values, and Other Options

Section 20. A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans and such other options as its by-laws may permit. As to each certificate issued, a society shall grant at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts or contracts of term insurance of uniform amount of fifteen years or less expiring before age sixty-six.
In the case of certificates other than those for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table, the Commissioners 1958 Standard Ordinary Mortality Table, or such later tables as are authorized for use by domestic life insurers and approved by the commissioner, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the excess, if any, of (a) over (b) as follows:
(a) The reserve under the certificate determined on the basis specified in the certificate; and
(b) The sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to two and one-half per cent of the face amount of the certificate, which, in the case of insurance on the lives of children, shall be the ultimate face amount of the certificate, if death benefits provided therein are graded.
However, in the case of certificates issued on a substandard basis, or in the case of certificates, the reserves for which are computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted, including accompanying pure endowment, if any, may be computed upon the rates of mortality not greater than one hundred and thirty per cent of those shown by the mortality table specified in the certificate for the computation of the reserve.
In the case of certificates for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table, the Commissioners 1958 Standard Ordinary Mortality Table, or such later tables as are authorized for use by domestic life insurers and approved by the commissioner, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of the commonwealth applicable to life insurance companies issuing policies containing life insurance benefits based upon such tables.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 21 - Change of Beneficiary; Interest of Beneficiary; Funeral Benefits; Payment of Benefits to Personal Representative

Section 21. (a) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate unless the certificate has become due and payable in conformity with the provision of the benefit contract.
(b) A society may make provision for the payment of funeral benefits to the extent of such portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expense occasioned by the burial of the member.
(c) If, at the death of any member, there is no lawful beneficiary to whom the insurance benefits shall be payable, the amount of such benefits, except to the extent that funeral benefits may be paid as provided in subsection (b), shall be payable to the personal representative of the deceased member, but if the owner of the certificate is other than the insured, such proceeds shall be payable to the owner.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 22 - Attachment or Other Process

Section 22. No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 22a - Burial Benefits; Restrictions; Payment

Section 22A. No society shall by its by-laws or by any contract or policy made or issued by it in this commonwealth restrict the payment of benefits or any part thereof accruing under such by-laws, contract or policy upon the death of a member or of the person insured, as the case may be, to a designated funeral director or group of funeral directors, or in any way deprive the personal representative or family of the deceased of freedom of choice in procuring and purchasing supplies and services in connection with the burial of such deceased.
Such benefits or any part thereof shall be paid to such funeral director as the person or persons entitled to said benefits or the personal representative of the deceased shall direct.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 23 - Certificate; Agreement Between Society and Member; Statements by Member as Representations; Reserves

Section 23. Every society authorized to do business in the commonwealth shall issue to each benefit member a certificate specifying the amount of benefits provided thereby. The certificate, together with any riders or endorsements attached thereto, the charter or articles of incorporation, the constitution and by-laws of the society, the application for membership, and declaration of insurability, if any, signed by the applicant, and all amendments to each thereof, shall constitute the agreement, as of the date of issuance, between the society and the member, and the certificate shall so state. A copy of the application for membership and of the declaration of insurability, if any, shall be endorsed upon or attached to the certificate.
All statements purporting to be made by the member shall be representations and not warranties. Any waiver of this provision shall be void.
Any changes, additions or amendments to the charter or articles of incorporation, constitution or by-laws duly made or enacted subsequent to the issuance of the certificate, shall bind the member and the beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions or amendments had been made prior to and were in force at the time of the application for membership, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the member as of the date of issuance.
Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society shall be received as evidence of the terms and conditions thereof.
A society shall provide in its constitution or by-laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that there shall be paid by the member to the society the amount of the member's equitable proportion of such deficiency as ascertained by its board, and that if the payment be not made it shall stand as an indebtedness against the certificate and draw interest not to exceed five per cent per annum compounded annually.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 24 - Filing Copies of Forms With Commissioner; Standard Provisions of Certificates

Section 24. (a) No certificate shall be delivered or issued for delivery in this commonwealth unless a copy of the form has been filed with the commissioner in the manner provided for like policies issued by life insurers in this commonwealth. Every life, accident, health, or disability certificate and every annuity certificate issued on or after January 1, 2001 shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life insurers authorized to write any of these lines of insurance in this commonwealth, except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The certificate shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society's laws or rules in force at the time of the issuance of the certificate which, if violated, will result in termination or reduction of benefits payable under the certificate.
(b) A society may specify the terms and conditions on which benefit contracts may be assigned.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 25 - Surplus of Assets; Waiver of Contributions

Section 25. Whenever it appears by a valuation certified to by a competent actuary that the actual assets of a society exceed its liabilities, including in liabilities the tabular reserves computed on the basis specified in section twenty by an amount equal to five per cent of said reserves, increased by an amount equal to all its other mortuary liabilities, it may, by vote of its officers having the powers of directors, and for such period as its assets are maintained as aforesaid, waive the further collection of the regular mortuary contributions from its members. A society maintaining a surplus of assets in excess of such amount as enables it to waive contributions as aforesaid may pay back to its several members an equitable portion of such surplus in such manner as may be determined by vote of said officers.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 27 - Waiver of By-Laws or Constitutional Provisions by Subordinate Bodies, Officers or Members

Section 27. The constitution and by-laws of the society may provide that no subordinate body, nor any of its subordinate officers or members shall have the power or authority to waive any of the provisions of by-laws or the constitution. Such provisions shall be binding on the society and every member and beneficiary of a member.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 28 - Reinsurance

Section 28. A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in the commonwealth, or, if not so authorized, one which is approved by the commissioner; but no such society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed or otherwise becoming effective, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
Notwithstanding the first paragraph, a society may reinsure the risks of another society in a consolidation, merger or assumption of reinsurance transaction approved by the commissioner pursuant to section 20 of chapter 175.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 29 - Termination and Renewal of Licenses; Fees; License as Evidence

Section 29. The authority of a society licensed under the provisions of this chapter may be renewed annually, but in all cases shall terminate on the first day of the succeeding July; provided, however, a license so issued shall continue in full force and effect until the new license be issued or specifically refused. For each such license or renewal the society shall pay the commissioner a fee to be determined annually by the commissioner of administration under the provision of section three B of chapter seven. A duly certified copy or duplicate of such license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 30 - Licensing of Foreign or Alien Societies

Section 30. No foreign or alien society shall transact business in the commonwealth without a license issued by the commissioner. Any such society may be licensed to transact business in the commonwealth upon filing with the commissioner—
(a) A duly certified copy of its charter or articles of incorporation;
(b) A copy of its constitution and by-laws, certified by its secretary or corresponding officer;
(c) A power of attorney to the commissioner as prescribed in section thirty-six;
(d) A statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the commissioner, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province or country, satisfactory to the commissioner;
(e) A certificate from the proper official of its home state, territory, province or country that the society is legally incorporated and licensed to transact business therein;
(f) Copies of its certificate forms; and
(g) Such other information as he may deem necessary—and upon a showing that its assets are invested in accordance with the provisions of this chapter.
Any foreign or alien society desiring admission to this commonwealth shall have the financial qualifications required of domestic societies organized under this chapter.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 32 - Foreign Societies; Deposits

Section 32. A foreign society, if formed under the laws of any government or state other than the United States or one of the United States, shall not be admitted and authorized to transact business in the commonwealth until, besides complying with the conditions of sections thirty and thirty-six, it has satisfied the commissioner that it has made a deposit, as hereinafter provided, with the state treasurer or with the proper board or officer of some other state of the United States or with trustees who are citizens or corporations of the United States and approved by the commissioner, appointed under a deed of trust executed in a form approved by the attorney general and the commissioner and who have filed with the commissioner a bond, in a form approved by the attorney general and the commissioner, with a surety company authorized to transact business in the commonwealth as surety, and in such sum as the commissioner may require, conditioned upon the faithful performance of their duties and running to the commissioner or his successor for the benefit of all the members, certificate holders and creditors within the United States of such society. Such deposit shall be held in exclusive trust for the benefit and security of all the members, certificate holders and creditors in the United States of such society, and shall be in an amount not less than the reserves with respect to all its outstanding certificates of membership held by residents of the United States and may be made in the securities and subject to the limitations specified in sections sixty-three and sixty-six of chapter one hundred and seventy-five, or in cash or such other securities as the commissioner may approve. If made with the state treasurer, such deposit shall not be returned to the society until it has ceased to transact business in the commonwealth, nor until the commissioner is satisfied that the society is under no obligation to members, certificate holders or other persons in this commonwealth or in any other state of the United States for whose benefit such deposit was made, nor until he has given his written consent to such return; provided, that the commissioner may, in any case, authorize in writing the return to the society of any excess of any such deposit over the amount required by this section if he is satisfied that such return will not be prejudicial to the interests of its members, certificate holders or creditors.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 33 - Injunction Against Transaction of Business; Grounds; Procedure

Section 33. When the commissioner upon investigation finds that a domestic society—
(a) Has exceeded its powers;
(b) Has failed to comply with any provision of this chapter;
(c) Is not fulfilling its contracts in good faith;
(d) Has a membership of less than four hundred after an existence of one year or more; or
(e) Is conducting business fraudulently or in a manner hazardous to its members, creditors, the public or the business, he shall notify the society of his findings, state in writing the reasons for his dissatisfaction, and require the society to show cause before him, at a time and place named, why he should not take action to have the society enjoined from carrying on any business until the violation complained of shall have been corrected, or to have any other appropriate action commenced in court, as provided in the next paragraph.
If on such date the society does not present good and sufficient reasons why he should not take such action, the commissioner may present the facts relating thereto to the attorney general, who shall, if he deems the circumstances warrant, commence an action to enjoin the society from transacting business or commence any other appropriate action in court.
The court shall thereupon notify the officers of the society of a hearing. If after a full hearing it appears that the society should be so enjoined or liquidated or a receiver appointed, or that other appropriate action be taken by the court, the court shall enter the necessary order.
No society so enjoined shall have authority to do business until—
(a) The commissioner finds that the violation complained of has been corrected;
(b) The cost of such action shall have been paid by the society if the court finds that the society was in default as charged;
(c) The court has dissolved its injunction; and
(d) The commissioner has reinstated the certificate of authority.
If the court orders the society liquidated, it shall be enjoined from carrying on any further business, whereupon the receiver of the society shall proceed at once to take possession of the books, papers, money and other assets of the society, and, under the direction of the court, proceed forthwith to close the affairs of the society and to distribute its funds to those entitled thereto.
No action under this section shall be commenced in any court of the commonwealth unless brought by the attorney general upon request of the commissioner. Whenever a receiver is to be appointed for a domestic society, the court shall appoint the commissioner as such receiver.
The provisions of this section relating to hearing by the commissioner, action by the attorney general at the request of the commissioner, hearing by the court, injunction and receivership shall be applicable to a society which shall voluntarily determine to discontinue business.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 34 - Foreign or Alien Societies; Suspension or Denial of License

Section 34. When the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state, (a) has exceeded its powers; (b) has failed to comply with any of the provisions of this chapter; (c) is not fulfilling its contracts in good faith; or (d) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, he shall notify the society of his findings, state in writing the reasons for his dissatisfaction, and require the society to show cause on a date named why its license should not be suspended, revoked or refused. If on such date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked or refused, he may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to him that such suspension or refusal should be withdrawn, or he may revoke the authority of the society to do business in this state.
Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in the commonwealth during the time such society was legally authorized to transact business herein.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 36 - Commissioner as Attorney for Service of Process

Section 36. Every society authorized to do business in the commonwealth shall appoint in writing the commissioner and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and shall agree in such writing that any lawful process against it which is served on said attorney shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in the commonwealth. Copies of such appointment, certified by said commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted.
Service shall only be made upon the commissioner, or if absent, upon the person in charge of his office. It shall be made in duplicate and shall constitute sufficient service upon the society. When legal process against a society is served upon the commissioner, he shall forthwith forward one of the duplicate copies by registered mail, prepaid, directed to the secretary or corresponding officer. Such service shall be made at least thirty days prior to the return day of the writ, and a society shall not be required to appear or file an answer, pleading or defence in less than thirty days after such service of any other process not commenced by writ. Legal process shall not be served upon a society except in the manner herein provided. At the time of serving any process upon the commissioner, the plaintiff or complainant in the action shall pay to the commissioner a fee of two dollars.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 39 - Assets; Special Funds; Expenses

Section 39. All assets shall be held, invested and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment or the surrender of any part thereof, except as provided in the contract.
A society may create, maintain, invest, disburse and apply any special fund or funds necessary to carry out any purpose permitted by the by-laws of such society.
Every society, the admitted assets of which are less than the sum of its accrued liabilities and reserves under all of its certificates when valued according to standards required for certificates issued, shall, in every provision of the by-laws of the society for payments by members of such society, in whatever form made, distinctly state the purpose of the same and the proportion thereof which may be used for expenses, and no part of the money collected for mortuary or disability purposes or the net accretions thereto shall be used for expenses.
A society may, pursuant to resolution of its supreme governing body, establish and operate one or more separate accounts and issue contracts on a variable basis, subject to the law regulating life insurers establishing such accounts and issuing such contracts. To the extent the society deems it necessary in order to comply with the federal or state laws, or any rules issued under such laws, the society may adopt special procedures for the conduct of the business and affairs of such separate accounts. The society may also, for persons having beneficial interests in such accounts, provide special voting and other rights, including without limitation special rights and procedures relating to an investment policy, investment advisory services, selection of a committee to manage the business and affairs of the account and the society may further issue contracts on a variable basis to which the first and fifth paragraphs of section 23 shall not apply.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 176 - Fraternal Benefit Societies › Section 42 - Valuation of Bonds or Other Evidences of Debt

Section 42. Any society may, in the annual statement required by section forty-one, value its bonds or other evidences of debt having a fixed term and rate and not in default as to principal or interest and if amply secured, in accordance with the following rule:— if purchased at par, at the par value; if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield meantime the effective rate of interest at which the purchase was made; provided that the purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase and provided, further, that the commissioner shall have full discretion in determining the method of calculating values according to the foregoing rule; and provided, also, that any society may return such bonds or other evidences of debt at either their market or their book value but in no event at any aggregate value exceeding the aggregate of the values calculated according to the foregoing rule.