reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies › Section 884.558. Effective Date of Agreement

Sec. 884.558.  EFFECTIVE DATE OF AGREEMENT.  A direct reinsurance agreement that is ratified under Section 884.556 takes effect on the date specified in the agreement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies › Section 884.559. Action After Agreement Ratification

Sec. 884.559.  ACTION AFTER AGREEMENT RATIFICATION.  (a)  After ratification of the reinsurance agreement under Section 884.556, the mutual assessment company shall cease doing business and shall transfer all of its assets to the assuming stipulated premium company.
(b)  The stipulated premium company shall assume:
(1)  all policy liability in accordance with the reinsurance agreement;  and
(2)  all other liabilities in accordance with the method of payment of those liabilities.
(c)  On transfer of a mutual assessment company's assets:
(1)  the company shall promptly surrender its certificate of authority and charter to the department;  and
(2)  the company's corporate existence ceases.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies › Section 884.560. Assumption Certificate

Sec. 884.560.  ASSUMPTION CERTIFICATE.  Immediately after ratification of the reinsurance agreement under Section 884.556, the stipulated premium company shall issue to each member of the mutual assessment company an assumption certificate that states:
(1)  the terms of the assumption;  and
(2)  the reserve and interest table under which the policy is assumed.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies › Section 884.561. Adjustment of Life Insurance Premiums

Sec. 884.561.  ADJUSTMENT OF LIFE INSURANCE PREMIUMS.  (a)  If the premium charged on a life insurance policy assumed by the stipulated premium company is less than the renewal net premium computed under the reserve standard adopted in the reinsurance agreement, the stipulated premium company shall adjust the premium rate to provide an amount that is at least equal to the renewal net premium based on the age of the insured on the date the policy was issued by the mutual assessment company.
(b)  Notwithstanding Subsection (a), if the gross premium charged on a family group policy reinsured by a stipulated premium company is less than the renewal net premium for that policy, the stipulated premium company may choose to not adjust the rate if:
(1)  the deficiency reserve of the business of the mutual assessment company is less than 25 percent of the required reserve on the business to be reinsured, including the deficiency premium reserve required by Subdivision (3);
(2)  at the time of reinsurance, the gross premium of all family group policies to be reinsured by the stipulated premium company is in the aggregate equal to at least 120 percent of the required net premiums on those family group policies;  and
(3)  the stipulated premium company maintains on that policy, in addition to any other reserve required by law, a deficiency premium reserve that is equal to the present value, computed using the reserve standard adopted in the reinsurance agreement, of an annuity, the amount of which is equal to the difference between the premium charged and that net premium and the term of which in years is equal to the number of annual premiums for the remainder of the premium paying period.
(c)  The deficiency premium reserve required by Subsection (b)(3) is a part of the company's deficiency reserve and shall be reduced in the manner provided by Section 884.453.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies › Section 884.562. Approval of Rate Adjustment

Sec. 884.562.  APPROVAL OF RATE ADJUSTMENT.  A stipulated premium company may not adjust a life insurance premium rate under this subchapter before:
(1)  obtaining the approval of the department;  and
(2)  providing notice to the policyholder.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter M. Conversion to Legal Reserve Company › Section 884.601. Authorization to Convert

Sec. 884.601.  AUTHORIZATION TO CONVERT.  (a)  The shareholders of a stipulated premium company that possesses capital in an amount equal to at least $700,000, unencumbered surplus in an amount equal to at least $700,000, and sufficient reserves on hand for the company's policies as required under provisions of Chapter 425, other than Sections 425.002-425.005, may convert the company to a legal reserve company that operates under Chapter 841 by complying with each requirement applicable to a company operating under that chapter.
(b)  The department may approve the conversion only after determining that the converting company has complied with the requirements applicable to that company under Subsection (a).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.089, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter M. Conversion to Legal Reserve Company › Section 884.602. Assumption Certificate

Sec. 884.602.  ASSUMPTION CERTIFICATE.  (a)  Not later than the 30th day after the date of a conversion under this subchapter, the converted company shall issue to each policyholder an assumption certificate by which the policy liability is assumed by the converted company.
(b)  The certificate must contain all of the provisions applicable to a policy issued by a company operating under Chapter 841.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter M. Conversion to Legal Reserve Company › Section 884.603. Exemption From Capital and Surplus Requirements

Sec. 884.603.  EXEMPTION FROM CAPITAL AND SURPLUS REQUIREMENTS.  (a)  A stipulated premium company is exempt from the capital and surplus requirements of Section 884.601(a) if the company:
(1)  was organized before September 1, 1989;
(2)  possesses capital in an amount equal to at least $100,000 and unencumbered surplus in an amount equal to at least $100,000;  and
(3)  converted to a company that operates under Chapter 841 before September 1, 1999.
(b)  A stipulated premium company that is exempt under Subsection (a) shall immediately increase its capital and surplus to amounts that satisfy Section 884.601(a) on:
(1)  a change of control of at least 50 percent of the voting securities of the converted company;  or
(2)  if the converted company or the holding company that controls the converted company, if any, is not controlled by voting securities, a change of at least 50 percent of the ownership of the converted company or its holding company.
(c)  For purposes of Subsection (b), a transfer of ownership that occurs because of death, regardless of whether the decedent died testate or intestate, may not be considered a change in the control of a converted stipulated premium company or holding company if ownership is transferred solely to one or more individuals, each of whom would be an heir of the decedent if the decedent had died intestate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 884 - Stipulated Premium Insurance Companies › Subchapter O. General Financial Regulation › Section 884.701. Hazardous Financial Condition, Supervision, Conservatorship, and Liquidation

Sec. 884.701.  HAZARDOUS FINANCIAL CONDITION, SUPERVISION, CONSERVATORSHIP, AND LIQUIDATION.  Subchapter A, Chapter 404, and Chapters 441 and 443 apply to a stipulated premium company engaged in the business of insurance in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.090, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter A. General Provisions › Section 885.001. Definitions

Sec. 885.001.  DEFINITIONS.  In this chapter:
(1)  "Benefit certificate" means a document issued as written evidence of a benefit contract.
(2)  "Benefit contract" means an agreement for provision of benefits authorized by Section 885.301, as that agreement is described by Section 885.306.
(3)  "Benefit member" means an adult designated by the laws or rules of a fraternal benefit society as a benefit member under a benefit contract.
(4)  "Fraternal benefit society's laws" means a fraternal benefit society's articles of incorporation, constitution, and bylaws, however designated.
(5)  "Lodge" means a subordinate member unit of a fraternal benefit society.  The term includes a camp, court, council, or branch.
(6)  "Premium" means a premium, a rate, dues, or another required contribution that is payable under a benefit certificate or benefit contract.
(7)  "Rule" means a rule, regulation, or resolution adopted by the supreme governing body or board of directors that has general application to the members of a fraternal benefit society.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter A. General Provisions › Section 885.002. Limited Exemption From Insurance Laws

Sec. 885.002.  LIMITED EXEMPTION FROM INSURANCE LAWS.  (a)  Except as provided by this chapter, a fraternal benefit society is governed by this chapter and is exempt from all other insurance laws of this state for all purposes.
(b)  A law enacted after July 1, 1913, does not apply to fraternal benefit societies unless a fraternal benefit society is expressly designated in the law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter A. General Provisions › Section 885.003. Exemption From Taxation

Sec. 885.003.  EXEMPTION FROM TAXATION.  (a)  A fraternal benefit society organized or holding a certificate of authority under this chapter, including the former Chapter 10 of this code and Chapter 8, Title 78, Revised Statutes, is a charitable and benevolent institution.  Except as provided by Subsection (b), all funds of a fraternal benefit society described by this subsection are exempt from any state, county, district, municipal, or school tax, including an occupation tax.
(b)  Real estate or office equipment used for a purpose other than a lodge purpose is subject to taxation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter A. General Provisions › Section 885.004. Inapplicability to Certain Societies

Sec. 885.004.  INAPPLICABILITY TO CERTAIN SOCIETIES.  (a)  Except as provided by Subsection (b), this chapter does not apply to:
(1)  a grand or subordinate lodge of Masons, Odd Fellows, Knights of Pythias, or the Junior Order of the United American Mechanics;
(2)  a society that limits its membership to those engaged in one or more hazardous occupations in the same or similar lines of business;
(3)  a society that does not issue benefit certificates;
(4)  an association of local lodges of a society engaged in business in this state on July 1, 1913, that provides:
(A)  death benefits of not more than $500 to any one individual;
(B)  disability benefits of not more than $300 in any one year to any one individual;  or
(C)  both death benefits described by Paragraph (A) and disability benefits described by Paragraph (B);
(5)  a contract of reinsurance on a plan in this state described by Subdivision (4);
(6)  a domestic society that limits its membership to the employees of:
(A)  a particular municipality;  or
(B)  a designated firm or corporation;  or
(7)  a domestic lodge, order, or association of a purely religious, charitable, and benevolent description that does not provide:
(A)  death benefits of more than $100;  or
(B)  disability benefits of more than $150 to any one individual in any one year.
(b)  This chapter applies to:
(1)  the insurance department of the supreme lodge Knights of Pythias;  and
(2)  the beneficiary degree of insurance branch of the Junior Order of the United American Mechanics.
(c)  The department may require from any society information that will permit the department to determine whether the society is exempt from this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter A. General Provisions › Section 885.005. Fraternal Benefit Societies That Provide Benefits Resulting From Accidents Only

Sec. 885.005.  FRATERNAL BENEFIT SOCIETIES THAT PROVIDE BENEFITS RESULTING FROM ACCIDENTS ONLY.  (a)  A fraternal benefit society that provides benefits for death or disability resulting from accidents only and does not provide death benefits or benefits for sickness may hold a certificate of authority under this chapter if the society:
(1)  was organized and incorporated before July 1, 1913;  and
(2)  operates as provided by Sections 885.051-885.054 and 885.062.
(b)  A fraternal benefit society that holds a certificate of authority as provided by Subsection (a) may exercise all the privileges provided by and is subject to this chapter other than:
(1)  provisions requiring medical examination;
(2)  provisions requiring that a benefit certificate specify the amount of benefits;  and
(3)  provisions relating to the valuation of benefit certificates.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter A. General Provisions › Section 885.006. Treatment of Certain Grand Lodges

Sec. 885.006.  TREATMENT OF CERTAIN GRAND LODGES.  A grand lodge, by whatever name known and without regard to whether incorporated, that holds a charter from any supreme governing body and that was engaging in business in this state on July 1, 1913, as a fraternal beneficiary association under the separate jurisdiction plan is considered to be a single state organization.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.051. Fraternal Benefit Society Defined

Sec. 885.051.  FRATERNAL BENEFIT SOCIETY DEFINED.  A corporation, society, order, or voluntary association is a fraternal benefit society if it:
(1)  has a lodge system and a representative form of government or limits its membership to a secret fraternity that has a lodge system and a representative form of government;
(2)  is organized and operated solely for the mutual benefit of its members and their beneficiaries and not for profit;
(3)  does not have capital stock;  and
(4)  provides for the payment of benefits in accordance with Section 885.301.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.052. Control of Fraternal Benefit Society

Sec. 885.052.  CONTROL OF FRATERNAL BENEFIT SOCIETY.  (a)  In this section, "control" has the meaning described by Sections 823.005 and 823.151.
(b)  Control of a fraternal benefit society must be ultimately vested in the membership as provided by this chapter.  Control of a fraternal benefit society may be exercised by lodges and a supreme governing body elected under Section 885.054.
(c)  The methods provided by this section for exercising control over a fraternal benefit society are exclusive.
(d)  Chapter 823 applies to a fraternal benefit society.  Each change in control of a fraternal benefit society must be consistent with the nature of a fraternal benefit society as specified by this section, Sections 885.051, 885.053, and 885.054, and other applicable law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.053. Lodge System Defined

Sec. 885.053.  LODGE SYSTEM DEFINED.  A fraternal benefit society is considered to be operating on the lodge system if the society:
(1)  has a supreme governing body;  and
(2)  has lodges:
(A)  into which members are admitted in accordance with the fraternal benefit society's laws, rituals, and rules;  and
(B)  that are required by the fraternal benefit society's laws to hold periodic meetings.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.054. Representative Form of Government Defined

Sec. 885.054.  REPRESENTATIVE FORM OF GOVERNMENT DEFINED.  A fraternal benefit society has a representative form of government if:
(1)  the society has a supreme governing body constituted as:
(A)  an assembly, as described by Section 885.055;  or
(B)  a board, as described by Section 885.057;
(2)  the officers of the society are elected by the supreme governing body or the board of directors;
(3)  only a benefit member is eligible to serve as a member of the supreme governing body, the board of directors, or an intermediate assembly of the society;
(4)  only a benefit member may vote on the management of the society's insurance affairs;
(5)  a voting member of the society has only one vote;  and
(6)  a voting member of the society may not cast a vote by proxy.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.055. Assembly as Supreme Governing Body

Sec. 885.055.  ASSEMBLY AS SUPREME GOVERNING BODY.  (a)  The supreme governing body of a fraternal benefit society is an assembly if the body is composed of:
(1)  delegates elected directly by the members or at intermediate assemblies or conventions by the members or their representatives;  and
(2)  other delegates as prescribed by the fraternal benefit society's laws.
(b)  The elected delegates to an assembly must:
(1)  constitute a majority of the assembly in number;  and
(2)  be entitled to cast the greater of:
(A)  two-thirds of the votes in the assembly;  or
(B)  the number of votes required to amend the fraternal benefit society's laws.
(c)  A fraternal benefit society may provide for election of delegates by mail.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.056. Assembly Meetings; Directors

Sec. 885.056.  ASSEMBLY MEETINGS;  DIRECTORS.  (a)  An assembly that is the supreme governing body of a fraternal benefit society shall:
(1)  meet at least once every four years;  and
(2)  elect a board of directors to conduct the business of the society between meetings of the assembly.
(b)  A vacancy on the board of directors that occurs between elections may be filled in the manner prescribed by the fraternal benefit society's laws.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.057. Board as Supreme Governing Body

Sec. 885.057.  BOARD AS SUPREME GOVERNING BODY.  (a)  The supreme governing body of a fraternal benefit society is a board if the body is composed of:
(1)  individuals elected directly by the members or at intermediate assemblies by the members or their representatives;  and
(2)  other individuals as prescribed by the fraternal benefit society's laws.
(b)  The individuals elected to the board must:
(1)  constitute a majority of the board in number;  and
(2)  have at least the number of votes required to amend the fraternal benefit society's laws, other than laws, if any, that must be amended by direct vote of the members.
(c)  A fraternal benefit society may provide for election of the board by mail.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.058. Board Members; Meetings

Sec. 885.058.  BOARD MEMBERS;  MEETINGS.  (a)  The term of a member of a board that is the supreme governing body of a fraternal benefit society may not exceed four years.
(b)  A vacancy on the board that occurs between elections may be filled in the manner prescribed by the fraternal benefit society's laws.  An individual filling the unexpired term of an elected board member is considered to be an elected member.
(c)  A board shall meet at least annually to conduct the business of the fraternal benefit society.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.059. Location of Meetings of Supreme Governing Body

Sec. 885.059.  LOCATION OF MEETINGS OF SUPREME GOVERNING BODY.  (a)  A domestic fraternal benefit society may provide that its supreme governing body may hold meetings in any state, district, province, or territory in which the society has a lodge.
(b)  All business transacted at a meeting authorized under Subsection (a) is as valid in all respects as if the meeting were held in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.060. Fraternal Benefit Society's Laws Binding

Sec. 885.060.  FRATERNAL BENEFIT SOCIETY'S LAWS BINDING.  A fraternal benefit society's laws may provide that a lodge or a subordinate officer or member of the society may not waive any provision of those laws.  Those laws are binding on:
(1)  the society;
(2)  each member of the society;  and
(3)  each beneficiary of a member.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.061. Amendment of Fraternal Benefit Society's Laws

Sec. 885.061.  AMENDMENT OF FRATERNAL BENEFIT SOCIETY'S LAWS.  (a)  A fraternal benefit society transacting business under this chapter shall file with the department a certified copy of each amendment of the fraternal benefit society's laws not later than the 90th day after the date of enactment of the amendment.
(b)  A printed copy of a fraternal benefit society's laws, as amended, that is certified by the society's secretary or corresponding officer is prima facie evidence that the laws were legally adopted.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.062. Quarterly Lodge Meetings Required

Sec. 885.062.  QUARTERLY LODGE MEETINGS REQUIRED.  A fraternal benefit society's laws must require each lodge to hold regular meetings at least once each calendar quarter to further the society's purposes.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter B. Structure of Fraternal Benefit Society › Section 885.063. Merger or Transfer of Membership or Funds

Sec. 885.063.  MERGER OR TRANSFER OF MEMBERSHIP OR FUNDS.  (a)  A domestic fraternal benefit society may not merge with or accept a transfer of the membership or funds of another fraternal benefit society unless:
(1)  the merger or transfer is evidenced by a written contract that fully sets out the terms of the merger or transfer;  and
(2)  the societies file with the department:
(A)  a copy of the contract;
(B)  a sworn statement of the financial condition of each society by its president and secretary or corresponding officers;  and
(C)  a certificate of those officers, verified under oath, that the merger or transfer has been approved by a vote of two-thirds of the members of the supreme governing body of each society.
(b)  On submission, the commissioner shall examine the contract, financial statements, and certificates.  The commissioner shall approve the merger or transfer and issue a certificate to that effect if the commissioner determines that:
(1)  the contract conforms with this section and Section 885.052(d);
(2)  the financial statements are correct;
(3)  the merger or transfer is just and equitable to the members of each society;  and
(4)  the new or surviving society complies with each requirement of a fraternal benefit society under this chapter.
(c)  A contract of merger or transfer takes effect on issuance of a certificate under Subsection (b).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter C. Members › Section 885.101. Qualifications for Fraternal Benefit Society Membership

Sec. 885.101.  QUALIFICATIONS FOR FRATERNAL BENEFIT SOCIETY MEMBERSHIP.  (a)  A fraternal benefit society shall specify in the fraternal benefit society's laws or rules:
(1)  subject to Subsection (b), the eligibility standards for each membership class;
(2)  the process for admission for each membership class;  and
(3)  subject to Subsection (c), the rights and privileges of each membership class.
(b)  If a fraternal benefit society provides benefits on the lives of children, the minimum age for adult membership may not be less than 15 years or more than 21 years.
(c)  Only a benefit member may vote on the management of the insurance affairs of a fraternal benefit society.
(d)  Membership rights in a fraternal benefit society are personal to the member, and a member may not assign those rights.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter C. Members › Section 885.102. Social Members

Sec. 885.102.  SOCIAL MEMBERS.  A fraternal benefit society may admit social members.  A social member may not vote in the management of the insurance affairs of the society.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter C. Members › Section 885.103. Children

Sec. 885.103.  CHILDREN.  (a)  A fraternal benefit society may organize and operate branches for children on whose lives the society provides insurance or annuities.
(b)  A child is not required to be a member of a lodge or to be initiated in a lodge.
(c)  A child may not have any voice in the management of a fraternal benefit society.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter C. Members › Section 885.104. Grievance or Complaint Procedures

Sec. 885.104.  GRIEVANCE OR COMPLAINT PROCEDURES.  A fraternal benefit society's laws or rules may provide for grievance or complaint procedures for members.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.151. Applicability to Certain Fraternal Benefit Societies Continuously Authorized to Engage in Business

Sec. 885.151.  APPLICABILITY TO CERTAIN FRATERNAL BENEFIT SOCIETIES CONTINUOUSLY AUTHORIZED TO ENGAGE IN BUSINESS.  This subchapter does not apply to a fraternal benefit society authorized to engage in business in this state on June 1, 1965, as long as the society's certificate of authority or any renewal or extension of its certificate of authority continues in force.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.152. Eligibility to Provide Benefits

Sec. 885.152.  ELIGIBILITY TO PROVIDE BENEFITS.  After June 1, 1965, a corporation, society, order, or voluntary association may qualify as a fraternal benefit society as defined by Section 885.051 for the purpose of providing for the payment of benefits as provided by Section 885.301 only if it:
(1)  has at least 500 members and at least 10 lodges;  and
(2)  has been in continuous operation for at least the five years preceding the filing of its articles of incorporation or association as provided by Section 885.153.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.153. Filing of Articles of Incorporation or Association

Sec. 885.153.  FILING OF ARTICLES OF INCORPORATION OR ASSOCIATION.  A corporation, society, order, or voluntary association eligible under Section 885.152 may qualify as a fraternal benefit society by filing with the department:
(1)  certified articles of incorporation or association that set out:
(A)  the name of the society;
(B)  the purpose for which the society is formed;  and
(C)  the manner in which the society's corporate powers are to be exercised;
(2)  certified copies of the fraternal benefit society's laws and rules;
(3)  copies of all proposed forms of benefit certificates, applications for benefit certificates, and circulars to be issued by the society;
(4)  a surety bond as required by Section 885.156;  and
(5)  additional information that the commissioner considers necessary.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.154. Name of Fraternal Benefit Society

Sec. 885.154.  NAME OF FRATERNAL BENEFIT SOCIETY.  The name of a fraternal benefit society may not so closely resemble the name of any society or insurance company engaging in business in this state as to mislead the public or lead to confusion.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.155. Purposes of Fraternal Benefit Society

Sec. 885.155.  PURPOSES OF FRATERNAL BENEFIT SOCIETY.  (a)  The purposes for which a fraternal benefit society is organized may not include more liberal powers than are granted by this chapter.  Any lawful, social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious advantages may be set out among the society's purposes.
(b)  A fraternal benefit society's purposes may be implemented directly by the society or indirectly through subsidiary corporations or affiliated organizations.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.156. Surety Bond

Sec. 885.156.  SURETY BOND.  (a)  A fraternal benefit society must file with the department a bond in an amount not less than $300,000 and not more than $1.5 million, as required by the commissioner, with sureties approved by the commissioner.
(b)  The bond must be conditioned on the return of advance payments to applicants for benefit certificates as provided by this subchapter if the fraternal benefit society fails to qualify under this subchapter within one year.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.157. Issuance of Preliminary Certificate of Authority

Sec. 885.157.  ISSUANCE OF PRELIMINARY CERTIFICATE OF AUTHORITY.  If the purposes of a fraternal benefit society conform to the requirements of this chapter and all provisions of law have been complied with, the commissioner shall:
(1)  certify that the society is in compliance with all provisions of law;
(2)  retain and record the articles of incorporation or association;  and
(3)  issue to the society a preliminary certificate of authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.159. Termination of Authority Under Preliminary Certificate of Authority

Sec. 885.159.  TERMINATION OF AUTHORITY UNDER PRELIMINARY CERTIFICATE OF AUTHORITY.  (a)  Unless a fraternal benefit society has qualified under this subchapter, a preliminary certificate of authority granted under Section 885. 157 is void on the first anniversary of the date the certificate is issued.
(b)  The department, on cause shown, may extend the period prescribed by Subsection (a).  An extension may not exceed one year.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter D. Authority to Engage in Business › Section 885.160. Issuance of Certificate of Authority

Sec. 885.160.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  (a)  The department may make an examination and require information in addition to that required by Section 885.158(b) that the department considers advisable.  On presentation of satisfactory evidence that a fraternal benefit society has complied with all provisions of law, the department shall issue to the society a certificate of authority.
(b)  The certificate of authority issued is prima facie evidence of the qualification of the fraternal benefit society as of the date of the certificate.
(c)  The department shall make a record of a certificate of authority issued under Subsection (a).  A certified copy or duplicate of the department's record shall be accepted in evidence with the same effect as the original certificate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter E. Foreign Fraternal Benefit Societies › Section 885.201. Certificate of Authority Required

Sec. 885.201.  CERTIFICATE OF AUTHORITY REQUIRED.  A foreign fraternal benefit society organized and engaging in business before July 1, 1913, that was not authorized to engage in business in this state as of that date may not engage in business in this state without a certificate of authority from the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter E. Foreign Fraternal Benefit Societies › Section 885.202. Admission of Foreign Fraternal Benefit Society

Sec. 885.202.  ADMISSION OF FOREIGN FRATERNAL BENEFIT SOCIETY.  (a)  To engage in business in this state, a foreign fraternal benefit society described by Section 885.201 must:
(1)  have the qualifications required of a domestic fraternal benefit society under this chapter;  and
(2)  have its assets invested as required by the laws of the state, territory, district, province, or country in which the society is organized.
(b)  A foreign fraternal benefit society described by Section 885.201 is entitled to a certificate of authority to engage in business in this state on filing with the department:
(1)  a certified copy of the society's charter or articles of association;
(2)  a copy of the fraternal benefit society's laws, certified by its secretary or corresponding officer;
(3)  a statement of the society's business;
(4)  a certificate from the proper official in the society's home state, province, or country showing that the society is legally organized;
(5)  a copy of the society's benefit contract;
(6)  information showing that the society's assets are invested as required by Subsection (a)(2);  and
(7)  additional information the commissioner considers necessary to demonstrate the society's business and method of operation.
(c)  A statement of business filed by a foreign fraternal benefit society under Subsection (b)(3) must:
(1)  be under oath of the society's president and secretary or corresponding officers;
(2)  be in the form required by the commissioner;  and
(3)  be verified by an examination made by the supervising insurance official of the society's home state or another state satisfactory to the commissioner.
(d)  A benefit contract filed by a foreign fraternal benefit society under Subsection (b)(5) must show that benefits are provided for by premiums paid by persons holding similar contracts.
(e)  The commissioner shall issue a certificate of authority to a foreign fraternal benefit society that complies with Subsection (b).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter E. Foreign Fraternal Benefit Societies › Section 885.203. Refusal to Issue Certificate of Authority to Foreign Fraternal Benefit Society

Sec. 885.203.  REFUSAL TO ISSUE CERTIFICATE OF AUTHORITY TO FOREIGN FRATERNAL BENEFIT SOCIETY.  (a)  If the commissioner refuses to issue a certificate of authority to a foreign fraternal benefit society under Section 885.202, the commissioner shall:
(1)  make the refusal in writing;
(2)  file the refusal in the department's office;  and
(3)  on request, provide a copy of the refusal and a statement of the commissioner's reasons for the refusal to the society's officers.
(b)  The commissioner's refusal to issue a certificate of authority to a foreign fraternal benefit society for authority to engage in business in this state is reviewable by proper proceedings in a state court.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter E. Foreign Fraternal Benefit Societies › Section 885.204. Notice of Intent to Revoke Foreign Fraternal Benefit Society's Certificate of Authority

Sec. 885.204.  NOTICE OF INTENT TO REVOKE FOREIGN FRATERNAL BENEFIT SOCIETY'S CERTIFICATE OF AUTHORITY.  (a)  The commissioner shall notify a foreign fraternal benefit society engaging in business under this chapter of the commissioner's determination if, following an investigation, the commissioner determines that the society:
(1)  has failed to comply with this chapter;
(2)  has exceeded its powers;
(3)  is not fulfilling its contracts in good faith;  or
(4)  is engaging in business fraudulently.
(b)  A notification under Subsection (a) must:
(1)  state in writing the grounds of the commissioner's dissatisfaction;  and
(2)  require that the society, after reasonable notice and on the date stated in the notice, show cause why the society's certificate of authority should not be revoked.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter E. Foreign Fraternal Benefit Societies › Section 885.205. Revocation of Foreign Fraternal Benefit Society's Certificate of Authority

Sec. 885.205.  REVOCATION OF FOREIGN FRATERNAL BENEFIT SOCIETY'S CERTIFICATE OF AUTHORITY.  (a)  The commissioner may revoke a foreign fraternal benefit society's certificate of authority to engage in business in this state if, on the date stated in the notice under Section 885.204, the society:
(1)  has not, to the commissioner's satisfaction, removed the commissioner's objections;  or
(2)  does not present good and sufficient reason why its certificate of authority should not be revoked.
(b)  Section 885.203 applies to a decision by the commissioner to revoke a foreign fraternal benefit society's authority to engage in business in this state as if it were a decision to refuse to issue a certificate of authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter E. Foreign Fraternal Benefit Societies › Section 885.206. Continuance of Contracts Following Revocation of Certificate of Authority

Sec. 885.206.  CONTINUANCE OF CONTRACTS FOLLOWING REVOCATION OF CERTIFICATE OF AUTHORITY.  This subchapter may not be construed to prevent a foreign fraternal benefit society that has had its certificate of authority refused under former Article 10.23, Insurance Code, or a predecessor to that statute, or that has had its certificate of authority revoked, from continuing in good faith each contract made in this state during the time the society was authorized to engage in business in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 885 - Fraternal Benefit Societies › Subchapter F. Powers and Duties of Fraternal Benefit Society › Section 885.251. General Powers

Sec. 885.251.  GENERAL POWERS.  A fraternal benefit society may:
(1)  make a constitution and bylaws for the government of the society, the admission of its members, the management of its affairs, and the setting and readjusting of premiums;
(2)  amend its constitution and bylaws;  and
(3)  exercise other powers necessary and incidental to achieving its purposes.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.