1146                            LAWS OF MARYLAND                      [CH. 553

of term insurance of uniform amount of fifteen (15) years or less
expiring before age sixty-six (66).

(b) (1) In the case of certificates other than those for which
reserves are computed on the Commissioners 1941 Standard Ordinary
Mortality Table, the 1941 Standard Industrial Table or the Com-
missioners 1958 Standard Ordinary Mortality Table, after premiums
have been paid for three (3) full years or for such lesser periods as
the contract may provide, 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 (i) over
(ii) as follows:

(1)   The reserve under the certificate determined on the basis
specified in the certificate; and

(ii) 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 percent (2½%) of the face amount of the cer-
tificate, which, in the case of insurance on the lives of children, shall
be the ultimate face amount of the certificate, if death benefits pro-
vided therein are graded.

(2)   However, in the case of certificates issued on a substandard
basis or in the case of certificates, the reserves for which are com-
puted upon the American Men Ultimate Table of Mortality, the
term of any extended insurance benefit granted including accompany-
ing pure endowment, if any, may be computed upon the rates of
mortality not greater than one hundred thirty percent (130%) of
those shown by the mortality table specified in the certificate for the
computation of the reserve.

(c)   In the case of certificates for which reserves are computed
on the Commissioners 1941 Standard Ordinary Mortality Table, the
Commissioners 1941 Standard Industrial Table, or the Commissioners
1958 Standard Ordinary Mortality Table, 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 as-
certained in accordance with the provisions of the laws of this State
applicable to life insurers issuing policies containing like insurance
benefits based upon such tables.

327. Beneficiaries.

(a)   The member shall have the right at all times to change the
beneficiary or beneficiaries in accordance with the constitution, laws
or rules of the society. Every society by its constitution, laws or rules
may limit the scope of beneficiaries and shall provide that no bene-
ficiary shall have or obtain any vested interest in the proceeds of any
certificate until the certificate has become due and payable in con-
formity with the provisions of the insurance contract.

(b)   A society may make provision for the payment of funeral
benefits to the extent of such portion of any payment under a cer-
tificate 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, but the portion so paid shall not exceed
the sum of five hundred dollars ($500).

If, at the death of any member, there is no lawful beneficiary to
whom the insurance benefits are payable, the amount of such benefits,