PARRIS N- GLENDENING, Governor                          H.B. 1022

8-415.

(a)     (1) After receiving a preliminary certificate of authority from the
Commissioner, a society may solicit members for the purposes of completing its
organization.

(2) Until the society complies with the requirements of subsection (b) of this

section, the society may not:

(i) incur any liability other than for the return of an advance
premium;

(ii) issue any certificate; or

(iii) pay, allow, or offer or promise to pay or allow any death or
disability benefit.

(b)     Each society shall:

(1)     secure bona fide applications for death benefits in an aggregate amount
of at least $500,000 on at least 500 lives;

(2)     receive from each applicant evidence of insurability satisfactory to the
society;

(3)     have on file certificates of examination or acceptable declarations of
insurability approved by the society's chief medical examiner;

(4)     collect from each applicant the amount of at least one regular monthly
premium under the society's table of rates as provided by the society's [constitution and]
laws, and issue to each applicant a receipt for the amount received;

(5)     collect premiums as provided in item (4) of this subsection in an
aggregate amount of at least [$2,500] $150,000 and credit the premiums to the funds
from which benefits are to be paid;

(6)     establish at least ten subordinate lodges or branches into which the
applicants are admitted;

(7)     submit to the Commissioner, under the oath of the president, secretary,
or an equivalent officer of the society, the name, address, date of admission, and amounts
of benefits and premiums of each applicant, and the name and number of the subordinate
branch of which the applicant is a member; and

(8)     submit to the Commissioner, under oath of the treasurer or an
equivalent officer of the society, a statement that at least 500 applicants have paid the
premiums required by items (4) and (5) of this subsection.

(c)     All advance premiums shall be held in trust during the period of organization
and, if the society has not qualified for a certificate of authority within 1 year, the
premiums shall be returned to the applicants. .

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