J. MILLARD TAWES, Governor 1151
ceded, renewed, or otherwise becoming effective after the effective
date of this subtitle, unless the reinsurance is payable by the assum-
ing insurer on the basis of the liability of the ceding society under
the contract or contracts reinsured without diminution because of
the insolvency of the ceding society.
(a) All assets shall be held, invested and disbursed for the use
and benefit of the society and no member or beneficiary shall have
or acquire individual rights therein or become entitled to any appor-
tionment or the surrender of any part thereof, except as provided
in the contract.
(b) A society may create, maintain, invest, disburse and apply
any special fund or funds necessary to carry out any purpose per-
mitted by the laws of such society.
(c) Every society, the admitted assets of which are less than the
sum of its accrued liabilities and reserves under all of its certificates
when valued according to standards required for certificates issued
after the effective date of this subtitle, shall, in every provision of
the laws of the society for payments by members of such society, in
whatever form made, distinctly state the purpose of the same and the
proportion thereof which may be used for expenses, and no part of
the money collected for mortuary or disability purposes or the net
accretions thereto shall be used for expenses.
A society shall invest its funds only in such investments as are
authorized by the laws of this State for the investment of assets of
life insurers and subject to the limitations thereof.
338. Annual Statement.
(a) Reports shall be filed and synopses of annual statements shall
be published in accordance with the provisions of this section.
(b) Every society transacting business in this State shall annual-
ly, on or before the first day of March, unless for cause shown such
time has been extended by the Commissioner, file with the Commis-
sioner a true statement of its financial condition, transactions and
affairs for the preceding calendar year and pay a fee of twenty-five
dollars ($25) for filing same. The statement shall be in general form
and context as approved by the National Association of Insurance
Commissioners for fraternal benefit societies and as supplemented
by additional information required by the Commissioner.
(c) A synopsis of its annual statement providing an explanation
of the facts concerning the condition of the society thereby disclosed
shall be printed and mailed to each benefit member of the society not
later than June 1 of each year, or, in lieu thereof, such synopsis may
be published in the society's official publication.
339. Annual Valuation of Certificates.
(a) As a part of the annual statement required under section 338,
each society shall, on or before the first day of March, file with the
Commissioner a valuation of its certificates in force on December