J. MILLARD TAWES, Governor                     1137

profit, operated on a lodge system with ritualistic form of work,
having a representative form of government, and which makes pro-
vision for the payment of benefits in accordance with this subtitle,
is hereby declared to be a fraternal benefit society.

When used in this subtitle the word "society", unless otherwise
indicated, means fraternal benefit society.

303.    Lodge System Defined.

A society having a supreme legislative or governing body and sub-
ordinate lodges or branches by whatever name known, into which
members are elected, initiated or admitted in accordance with its
constitution, laws, ritual and rules, which subordinate lodges or
branches are required by the laws of the society to hold regular
meetings at least once in each month, shall be deemed to be operat-
ing on the lodge system.

304.    Representative Form of Government Defined.

A society shall be deemed to have a representative form of gov-
ernment when:

(a)   It provides in its constitution or laws for a supreme legisla-
tive or governing body, composed of representatives elected either
by the members or by delegates elected directly or indirectly by the
members, together with such other members of such body as may be
prescribed by the society's constitution and laws;

(b)   The representatives elected constitute a majority in number
and have not less than two-thirds of the votes nor less than the votes
required to amend its constitution and laws;

(c)   The meetings of the supreme legislative or governing body
and the election of officers, representatives or delegates are held as
often as once in four (4) calendar years;

(d)   Each insured member shall be eligible for election to act or
serve as a delegate to such meeting;

(e)   The society has a board of directors charged with the respon-
sibility for managing its affairs in the interim between meetings of
its supreme legislative or governing body, subject to control by such
body and having powers and duties delegated to it in the constitution
or laws of the society;

(f)   Such board of directors is elected by the supreme legislative
or governing body, except in case of filling a vacancy in the interim
between meetings of such body;

(g)   The officers are elected either by the supreme legislative or
governing body or by the board of directors; and

(h) The members, officers, representatives or delegates shall not
vote by proxy.

305.    Subtitle Exclusive; Applicability of Other Laws.

Except as herein provided, societies shall be governed by this sub-
title and shall be exempt from all other provisions of the insurance
laws of this State, not only in governmental relations with the State,
but for every other purpose. No law hereafter enacted shall apply to
them, unless they be expressly designated therein.