H.B. 1022

VETOES

(c)     (1) Subject to paragraph (2) of this subsection, a society may charge a
reasonable fee for maintenance, treatment, and proper attendance in an institution
authorized by subsection (a) of this section.

(2) A society may not operate an institution authorized under subsection (a)
of this section for profit.

(d)     A society may not own or operate a funeral home or undertaking
establishment.

(e)     A society shall maintain a separate accounting for any income and
disbursements under this section and report them in its annual statement.

(F) THE PURPOSES OF A SOCIETY AS SPECIFIED IN ITS LAWS, AND AS
PROVIDED IN THIS SECTION AND § 8-411(C)(2) OF THIS SUBTITLE, MAY BE CARRIED
OUT DIRECTLY BY THE SOCIETY OR INDIRECTLY THROUGH SUBSIDIARY
CORPORATIONS OR AFFILIATED ORGANIZATIONS.:

(1) DIRECTLY BY THE SOCIETY; OR

(2) INDIRECTLY:

(I) WITH RESPECT TO ACTIVITIES REGULATED BY THE
INSURANCE COMMISSIONER. THROUGH A SUBSIDIARY OR AFFILIATE OPERATING
UNDER A CERTIFICATE OF AUTHORITY, CERTIFICATE OF QUALIFICATION, OR
OTHER LICENSE ISSUED BY THE COMMISSIONER; AND

(II) FOR ALL OTHER ACTIVITIES, THROUGH SUBSIDIARY
CORPORATIONS AND AFFILIATED ORGANIZATIONS.

8-441.

(a)     Subject to subsection (b) of this section, a domestic society may cede wholly or
partly any individual risk by reinsurance agreement to an insurer that:

(1)     is not a fraternal benefit society;

(2)     has the power to make reinsurance; and

(3)     is authorized to do insurance business in the State or is approved by the
Commissioner.

(b)     A domestic society may not reinsure substantially all of its insurance in force
without the written permission of the Commissioner.

(c)     (1) Except as provided in paragraph (2) of this subsection, a ceding
domestic society may take credit for the reserves on risks ceded under this section to the
extent reinsured.

(2) A ceding domestic society may not be allowed credit, as an admitted
asset or as a deduction from liability, for reinsurance made, ceded, renewed, or that
otherwise became effective after December 31, 1963, unless the reinsurance is payable by
the assuming insurer on the basis of the liability of the ceding society under the contracts
reinsured without diminution because of the insolvency of the ceding society.

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