H.B. 1022                                                     VETOES

(2) if the [ member] OWNER does not pay the [ member's] OWNER'S share
of the deficiency, that share [ is]:

(I)       SHALL STAND AS an indebtedness against the [member's]
certificate and is subject to interest not exceeding [5% per year compounded annually]
THE RATE SPECIFIED FOR CERTIFICATE LOANS UNDER THE CERTIFICATE; OR

(II)     INSTEAD OF OR IN COMBINATION WITH ITEM (I) OF THIS
PARAGRAPH, THE OWNER OF THE CERTIFICATE MAY ACCEPT A PROPORTIONATE
REDUCTION IN BENEFITS UNDER THE CERTIFICATE.

(B) THE SOCIETY MAY SPECIFY THE MANNER OF THE ELECTION AND WHICH
ALTERNATIVE IS TO BE PRESUMED IF NO ELECTION IS MADE.

8-449.

(a)     Except as otherwise provided in this section, a person must obtain a certificate
of qualification issued under Part V of this subtitle before the person acts as a fraternal
benefit agent in the State.

(b)     Subsection (a) of this section does not apply to a regular salaried officer or
employee of a licensed society who:

(1)     devotes substantially all of the officer's or employee's services to
activities other than soliciting insurance contracts; and

(2)     does not receive, for soliciting insurance contracts, a commission or
other compensation that is directly dependent on the amount of business obtained.'

(c)      (1) Subsection (a) of this section does not apply to a fraternal benefit agent
or representative of a society that devotes, or intends to devote, less than 50% of the
person's time to soliciting and procuring insurance contracts for the society.

(2) For the purposes of paragraph (1) of this subsection, a person is
presumed to be devoting, or intending to devote, 50% or more of the person's time to
soliciting or procuring insurance contracts for a society if, in the preceding calendar year,
the person has solicited and procured:

[(i) life insurance contracts on behalf of the society in an amount of
insurance exceeding $50,000; or

(ii) any kind of insurance on the persons of more than 25 individuals
for which the person has received or will receive a commission or other compensation.]

(I)       LIFE INSURANCE CONTRACTS THAT, IN THE AGGREGATE,
EXCEED $200,000 OF COVERAGE FOR ALL LIVES INSURED FOR THE PRECEDING
CALENDAR YEAR;

(II)     A PERMANENT LIFE INSURANCE CONTRACT OFFERING MORE
THAN $10,000 OF COVERAGE ON AN INDIVIDUAL LIFE;

(III)    A TERM LIFE INSURANCE CONTRACT OFFERING MORE THAN
$50,000 OF COVERAGE ON AN INDIVIDUAL LIFE;

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