§ 8–402
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 8-402 (2026)
Title 8. Entities That Act as Insurers
Subtitle 4. Fraternal Benefit Societies
§ 8–402LinkCopy Citation
(a)
(1)
An incorporated society, order, or supreme lodge without capital stock is deemed to be a fraternal benefit society if it:
(i)
is conducted solely for the benefit of its members and their beneficiaries;
(ii)
is not conducted for profit;
(iii)
is operated on a lodge system with ritualistic form of work;
(iv)
has a representative form of government; and
(v)
provides for benefits to be paid in accordance with this subtitle.
(2)
An incorporated or unincorporated society, order, or supreme lodge without capital stock that is exempted under § 8-404(a)(2) of this subtitle is deemed to be a fraternal benefit society.
(b)
A society is deemed to be operating on a lodge system if it operates under a system by which the society:
(1)
has a supreme legislative or governing body and subordinate lodges or branches, by whatever name known;
(2)
by its laws, requires the subordinate lodges or branches to hold regular meetings at least once each month in furtherance of the purposes of the society; and
(3)
elects, initiates, or admits members in accordance with its laws, rituals, and rules.
(c)
A society is deemed to have a representative form of government if:
(1)
(i)
the society provides in its laws for a supreme legislative or governing body composed of:
(1)
representatives elected by the members of the society or by delegates elected directly or indirectly by the members; and
(2)
any other individuals required by the laws of the society;
(ii)
election of delegates may be accomplished by mail;
(iii)
the elected representatives of the society:
(1)
are a majority of the supreme legislative or governing body;
(2)
have at least two-thirds of the votes; and
(3)
have at least the number of votes required to amend the laws of the society;
(iv)
at least once every 4 years:
(1)
the supreme legislative or governing body of the society meets; and
(2)
officers, representatives, or delegates of the society are elected;
(v)
each insured member is eligible for election to act or serve as a delegate to the meeting;
(vi)
the society has a board of directors that:
(1)
is responsible for the management of the affairs of the society between meetings of the supreme legislative or governing body;
(2)
is subject to control by the supreme legislative or governing body;
(3)
except when a vacancy is filled between meetings of the supreme legislative or governing body, is elected by the supreme legislative or governing body; and
(4)
has powers and duties delegated by the laws of the society;
(vii)
the officers of the society are elected by the supreme legislative or governing body or by the board of directors; and
(viii)
the members, officers, representatives, or delegates of the society may not vote by proxy; or
(2)
(i)
the society provides in its laws for a supreme legislative or governing body composed of:
(1)
a board composed of individuals elected by the members, either directly or by their representatives in intermediate assemblies; and
(2)
any other individuals required by the laws of the society;
(ii)
election of the board may be accomplished by mail;
(iii)
the term of an elected board member may not exceed 4 years;
(iv)
the individuals elected to the board:
(1)
are a majority of the board; and
(2)
have at least the number of votes required to amend the laws of the society;
(v)
vacancies on the board between elections are filled as prescribed by the laws of the society;
(vi)
an individual filling the unexpired term of an elected board member is considered to be an elected member; and
(vii)
the board meets at least quarterly to conduct the business of the society.