{"data":{"id":"us-md/md.-code-insurance-8-402","jurisdiction":"us-md","citation":"Md. Code, Insurance § 8–402","heading":"","body":"(a) (1) An incorporated society, order, or supreme lodge without capital stock is deemed to be a fraternal benefit society if it:\n(i) is conducted solely for the benefit of its members and their beneficiaries;\n(ii) is not conducted for profit;\n(iii) is operated on a lodge system with ritualistic form of work;\n(iv) has a representative form of government; and\n(v) provides for benefits to be paid in accordance with this subtitle.\n(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.\n(b) A society is deemed to be operating on a lodge system if it operates under a system by which the society:\n(1) has a supreme legislative or governing body and subordinate lodges or branches, by whatever name known;\n(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\n(3) elects, initiates, or admits members in accordance with its laws, rituals, and rules.\n(c) A society is deemed to have a representative form of government if:\n(1) (i) the society provides in its laws for a supreme legislative or governing body composed of:\n1. representatives elected by the members of the society or by delegates elected directly or indirectly by the members; and\n2. any other individuals required by the laws of the society;\n(ii) election of delegates may be accomplished by mail;\n(iii) the elected representatives of the society:\n1. are a majority of the supreme legislative or governing body;\n2. have at least two-thirds of the votes; and\n3. have at least the number of votes required to amend the laws of the society;\n(iv) at least once every 4 years:\n1. the supreme legislative or governing body of the society meets; and\n2. officers, representatives, or delegates of the society are elected;\n(v) each insured member is eligible for election to act or serve as a delegate to the meeting;\n(vi) the society has a board of directors that:\n1. is responsible for the management of the affairs of the society between meetings of the supreme legislative or governing body;\n2. is subject to control by the supreme legislative or governing body;\n3. 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\n4. has powers and duties delegated by the laws of the society;\n(vii) the officers of the society are elected by the supreme legislative or governing body or by the board of directors; and\n(viii) the members, officers, representatives, or delegates of the society may not vote by proxy; or\n(2) (i) the society provides in its laws for a supreme legislative or governing body composed of:\n1. a board composed of individuals elected by the members, either directly or by their representatives in intermediate assemblies; and\n2. any other individuals required by the laws of the society;\n(ii) election of the board may be accomplished by mail;\n(iii) the term of an elected board member may not exceed 4 years;\n(iv) the individuals elected to the board:\n1. are a majority of the board; and\n2. have at least the number of votes required to amend the laws of the society;\n(v) vacancies on the board between elections are filled as prescribed by the laws of the society;\n(vi) an individual filling the unexpired term of an elected board member is considered to be an elected member; and\n(vii) the board meets at least quarterly to conduct the business of the society.","path":["Article - Insurance"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gin\u0026section=8-402","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:28Z","sha256":"f858e3878d03c4f0283e9db40a6a601c2192569485b6d4dd186e81964df2b7a9","source_id":"us-md","stale":false,"prev":"us-md/md.-code-insurance-8-401","next":"us-md/md.-code-insurance-8-403"},"notice":"GroundRules: Original legal text. Not legal advice."}