PARRIS N. GLENDENING, Governor

H.B. 1022

(ii) the member elects to apply the automatic premium loan before the
grace period of an overdue premium expires;

(2)     a supplemental provision that relates to benefits in the event of
temporary or permanent disability or hospitalization and a provision that grants
additional insurance specifically against death by accident or accidental means may also
be excepted from the incontestability provision of subsection (c)(8) of this section; and

(3)     a provision that, subject to subsections (c)(8) and (d)(2) of this section,
with regard to statements made to procure reinstatement, the society has the right to
contest a reinstated certificate within 2 years after the date of reinstatement.

(e)     Any provision or part of a provision required by subsection (c) of this section
may be omitted from a life benefit certificate to the extent it is inapplicable because of
the plan of insurance or because the certificate is an annuity certificate.

(f)     After December 31, 1963, a life benefit certificate may not be delivered or
issued for delivery in the State if the certificate contains in substance any of the following

.provisions:

(1)     a provision that limits the time within which an action may be
commenced to less than 3 years after the cause of action accrues;

(2)     a provision in which the certificate purports to be issued or to take effect
more than 6 months before the original application for the certificate was made, except in
case of transfer from one form of certificate to another by which the member is to receive
credit for any reserve accumulation under the form of certificate from which the transfer

is made; or

(3)     a provision for forfeiture of the certificate for failure to repay a loan on
the certificate or to pay interest on the loan while the total indebtedness, including
interest, is less than the loan value of the certificate.)

8-437.

(a)     A society may create, maintain, and operate charitable, benevolent, or
educational institutions for the benefit of:

(1)     society members;

(2)     families and dependents of society members; and

(3)     children insured by the society.

(b)     (1) For the purposes of an institution authorized by subsection (a) of this
section, a society may own, hold, or lease personal or real property inside or outside the
State.

(2) The property shall be reported in each annual statement of the society,
but may not be allowed as an admitted asset of the society.

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