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Form a Business

FRATERNAL BENEFIT SOCIETIES

M.G.L. pt. Part I, tit. Title XXII, ch. c. 176
in effect

M.G.L. c. 176, § 1 Definitions

c. 176, § 1. Definitions Section 1. Any incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries, and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which makes provision for the payment of benefits in accordance with this chapter, is hereby declared to be a fraternal benefit society. As used in this chapter, the following words shall have the following meanings:— ''Benefit contract'', the agreement for provision of benefits authorized by section 17. ''Benefit member'', an adult member who is designated by the laws of the society to be a member under a benefit contract. ''Certificate'', any document issued as written evidence of the benefit contract. ''Commissioner'', the commissioner of insurance. ''Fraternal benefit society or society'', an incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries, and not for profit, operated on a lodge system with a ritualistic form of work, having a representative form of government, and which makes provision for the payment of benefits in accordance with this chapter. Fraternal benefit societies shall be governed by the provisions of this chapter and shall not be subjected to any provisions of chapter 176P. ''Laws'', the society's articles of incorporation, constitution and by-laws however designated. ''Limited society'', a domestic society or association that meets the requirements of section 45 or section 46 as in full force and effect immediately preceding August 15, 1958 and as codified in chapter 176P. Limited societies shall not include any society defined in this section. Limited societies shall be governed by said chapter 176P and shall not be subject to this chapter as modified, amended or added after August 15, 1958. ''Premiums'', premiums, rates, dues or other required contributions by whatever name known, which are payable under the certificate. ''Rules'', all rules, regulations or resolutions adopted by the supreme governing body or board of directors that are intended to have general application to the members of the society.

M.G.L. c. 176, § 1A Applicability of chapter 176V to fraternal benefit societies

c. 176, § 1A. Applicability of chapter 176V to fraternal benefit societies Section 1A. Notwithstanding any general or special law to the contrary, chapter 176V shall apply to fraternal benefit societies governed by this chapter.

M.G.L. c. 176, § 1B Applicability of chapter 176W to fraternal benefit societies

c. 176, § 1B. Applicability of chapter 176W to fraternal benefit societies Section 1B. Notwithstanding any general or special law to the contrary, chapter 176W shall apply to fraternal benefit societies governed by this chapter.

M.G.L. c. 176, § 2 Lodge system

c. 176, § 2. Lodge system Section 2. A society having a supreme legislative or governing body and subordinate lodges or branches by whatever name known, into which members are elected, initiated or admitted in accordance with its constitution, by-laws, ritual and rules, which subordinate lodges or branches are required by the by-laws of the society to hold regular meetings at least once in each month, shall be deemed to be operating on the lodge system.

M.G.L. c. 176, § 3 Representative form of government

c. 176, § 3. Representative form of government Section 3. A society has a representative form of government when: (a) it has a supreme governing body constituted in one of the following ways: (1) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than two-thirds of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws. (2) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board may be filled in the manner prescribed by the society's laws. Those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society. (b) the officers of the society are elected whether by the supreme governing body or by the board of directors. (c) only benefit members are eligible for election to the supreme governing body, the board of directors or any intermediate assembly. (d) each voting member shall have one vote and no vote may be cast by proxy.

M.G.L. c. 176, § 4 Articles of incorporation; preliminary certificate; certificate; powers

c. 176, § 4. Articles of incorporation; preliminary certificate; certificate; powers Section 4. (1) Seven or more citizens of the United States, a majority of whom are citizens of the commonwealth who desire to form a fraternal benefit society, may make, sign and acknowledge before some officer, competent to take acknowledgment of deeds, articles of incorporation, in which shall be stated:— (a) The proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company as to be misleading or confusing; (b) The purposes for which it is being formed and the mode in which its corporate powers are to be exercised. Such purposes shall not include more liberal powers than are granted by this chapter, but any lawful, social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious advantages may be set forth among the purposes of the society. Such purposes may be carried out directly by the society, or indirectly through subsidiary corporations or affiliated organizations; and (c) The names and residences of the incorporators and the names, residences and official titles of all the officers, trustees, directors, or other persons who are to have and exercise the general control of the management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme legislative or governing body, which election shall be held not later than one year from the date of the issuance of the permanent certificate. (2) Such articles of incorporation, duly certified copies of the constitution, by-laws and rules, copies of all proposed forms of certificates, applications therefor, and circulars to be issued by the society and a bond conditioned upon the return to applicants of the advance payments if the organization is not completed within one year, such bond to be in an amount to be determined by the commissioner not less than $300,000 and not more than $1,500,000 with sureties approved by the commissioner, shall be filed with the commissioner, who may require such further information as he deems necessary. All documents filed are to be in the English language. If the purposes of the society conform to the requirements of this chapter, and all provisions of the law have been complied with, the commissioner shall so certify, retain and file the articles of incorporation and furnish the incorporators a preliminary certificate authorizing the society to solicit members as hereinafter provided. (3) No preliminary certificate granted under the provisions of this section shall be valid after one year from its date or after such further period, not exceeding one year, as may be authorized by the commissioner upon cause shown, unless the five hundred applicants hereinafter required have been secured and the organization has been completed as herein provided. The articles of incorporation and all other proceedings thereunder shall become null and void in one year from the date of the preliminary certificate, or at the expiration of the extended period, unless the society shall have completed its organization and received a certificate of authority to do business as hereinafter provided. (4) Upon receipt of a preliminary certificate from the commissioner, the society may solicit members for the purpose of completing its organization, shall collect from each applicant the amount of not less than one regular monthly premium in accordance with its table of rates as provided by its constitution and by-laws, and shall issue to each such applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of such advance premium, nor issue any certificate, nor pay, allow or offer or promise to pay or allow, any death or disability benefit to any person until— (a) Actual bona fide applications for death benefits have been secured aggregating at least five hundred thousand dollars on not less than five hundred lives; (b) All such applicants for death benefits shall have furnished evidence of insurability satisfactory to the society; (c) Certificates of examinations or acceptable declarations of insurability have been duly filed and approved by the chief medical examiner of the society; (d) Ten subordinate lodges or branches have been established into which the five hundred applicants have been admitted; (e) There has been submitted to the commissioner, under oath of the president or secretary, or corresponding officer of the society, a list of such applicants, giving their names, addresses, date each was admitted, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted and premiums therefor; and (f) It shall have been shown to the commissioner, by sworn statement of the treasurer, or corresponding officer of such society, that at least five hundred applicants have each paid in cash at least one regular monthly premium as herein provided, which premiums in the aggregate shall amount to at least $150,000, all of which shall be credited to the fund or funds from which benefits are to be paid, and no part of which may be used for expenses. Said 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 one year, as herein provided, such premiums shall be returned to said applicants. (5) The commissioner may make such examination and require such further information as he deems advisable. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, he shall issue to the society a certificate to that effect, and that the society is authorized to transact business pursuant to the provisions of this chapter. The certificate shall be prima facie evidence of the existence of the society at the date of such certificate. The commissioner shall cause a record of such certificate to be made. A certified copy of such record may be given in evidence with like effect as the original certificate. (6) Every society shall have the power to adopt a constitution and by-laws for the government of the society, the admission of its members, the management of its affairs and the fixing and readjusting of the rates of its members from time to time. It shall have the power to change, alter, add to or amend such constitution and by-laws, and shall have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.

M.G.L. c. 176, § 5 Principal office

c. 176, § 5. Principal office Section 5. The principal office of any domestic society shall be located in the commonwealth. The meetings of its supreme legislative or governing body may be held in any state, district, province or territory wherein such society has at least five subordinate branches, and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in the commonwealth.

M.G.L. c. 176, § 6 Change in location of place of business or purposes of incorporation; rights, powers and privileges

c. 176, § 6. Change in location of place of business or purposes of incorporation; rights, powers and privileges Section 6. A domestic fraternal benefit corporation may, with the approval of the commissioner, change the location of its place of business to another location in the commonwealth, or change the purposes for which it was incorporated so as to permit it to transact any business authorized by this chapter. Upon such approval the presiding, financial and recording officers, and a majority of its other officers having the powers of directors, shall file in the office of the state secretary a certificate, with the approval of the commissioner endorsed thereon, setting forth the change in the location of its place of business or in the purposes of the corporation. The state secretary shall, upon receipt of a fee to be determine annually by the commissioner of administration under the provision of section three B of chapter seven, cause such certificate to be filed in his office. Every domestic fraternal beneficiary corporation may exercise all the rights, powers and privileges conferred by this chapter, including the powers specified in section forty, or its certificate of incorporation or charter, not inconsistent herewith, and shall be subject to this chapter, as if reincorporated hereunder.

M.G.L. c. 176, § 7 Consolidation or merger

c. 176, § 7. Consolidation or merger Section 7. A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the commissioner— (a) A certified copy of the written contract containing in full the terms and conditions of the consolidation or merger; (b) A sworn statement by the president and secretary or corresponding officers of each society showing the financial condition thereof on a date fixed by the commissioner, but not earlier than December thirty-first, next preceding the date of the contract; (c) A certificate of such officers, duly verified by their respective oaths, that the consolidation or merger has been approved by a two-thirds vote of the supreme legislative or governing body of each society; and (d) Evidence that at least sixty days prior to the action of the supreme legislative or governing body of each society the text of the contract has been furnished to all members of each society either by mail or by publication in full in the official organ of each society. If the commissioner finds that the contract is in conformity with the provisions of this section, that the financial statements are correct and that the consolidation or merger is just and equitable to the members of each society, he shall approve the contract and issue his certificate to such effect. Upon such approval, the contract shall be in full force and effect unless any society which is a party to the contract is incorporated under the laws of any other state or territory. In such event the consolidation or merger shall not become effective unless and until it has been approved as provided by the laws of such state or territory, and a certificate of such approval filed with the commissioner, or, if the laws of such state or territory contain no such provision, then the consolidation or merger shall not become effective unless and until it has been approved by the commissioner of insurance, or other officer or officers, exercising like powers, of such state or territory, and a certificate of such approval filed with the commissioner. Upon the consolidation or merger becoming effective as herein provided, all the rights, franchises and interests of the consolidated or merged societies in and to every species of property, real, personal or mixed, and things in action thereunto belonging shall be vested in the society resulting from or remaining after the consolidation or merger without any other instrument, except that conveyances of real property may be evidenced by proper deeds, and the title to any real estate or interest therein, vested under the laws of the commonwealth in any of the societies consolidated or merged, shall not revert or be in any way impaired by reason of the consolidation or merger, but shall vest absolutely in the society resulting from or remaining after such consolidation or merger. The affidavit of any officer of the society or of any one authorized by it to mail any notice or document, stating that such notice or document has been duly addressed and mailed, shall be prima facie evidence that such notice or document has been furnished the addressees.

M.G.L. c. 176, § 8 Conversion to mutual life insurance company

c. 176, § 8. Conversion to mutual life insurance company Section 8. Any domestic society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of chapter one hundred and seventy-five relating to the financial requirements of mutual life insurance companies if such plan of conversion has been approved by the commissioner. Such plan shall be prepared in writing setting forth in full the terms and conditions thereof. The board of directors shall submit such plan to the supreme legislative or governing body of such society at any regular or special meeting thereof, by giving a full, true and complete copy of such plan, with the notice of such meeting. Such notice shall be given as provided in the laws of the society for the convocation of a regular or special meeting of such body, as the case may be. The affirmative vote of two thirds of all members of such body shall be necessary for the approval of such agreement. No such conversion shall take effect unless and until approved by the commissioner who may give such approval if he finds that the proposed change is in conformity with the requirements of law and not prejudicial to the certificate holders of the society.

M.G.L. c. 176, § 9 Admission to membership

c. 176, § 9. Admission to membership Section 9. A society may admit to benefit membership any person not less than fifteen years of age, nearest birthday, who has furnished evidence of insurability acceptable to the society. Any such member who shall apply for additional benefits more than six months after becoming a benefit member shall pass an additional medical examination, or make an additional declaration of insurability, as required by the society. Any person admitted prior to attaining the age of majority shall be bound by the terms of the application and certificate and by all the by-laws and rules of the society, and shall be entitled to all the rights and privileges of membership therein to the same extent as though said applicant had attained said full age at the time of application. No society authorized to issue certificates under this chapter may refuse to admit to benefit membership any person, otherwise qualified, for the sole reason of blindness. A society shall specify in its laws or rules eligibility standards for each and every class of membership, the process for admission to membership, the process for admission to membership for each membership class, and the rights and privileges of each membership class, but only the benefit members shall have the right to vote on the management of insurance affairs of the society. Membership rights of a society are personal to the member and are not assignable. A society may provide in its laws or rules for grievance or complaint procedures for members.

M.G.L. c. 176, § 10 Amendment of articles of incorporation

c. 176, § 10. Amendment of articles of incorporation Section 10. A domestic society may amend its articles of incorporation, constitution or laws in accordance with the provisions thereof by action of its supreme legislative or governing body at any regular or special meeting thereof, or, if its articles of incorporation, constitution or laws so provide, by referendum. Such referendum may be held in accordance with the provisions of its articles of incorporation, constitution or by-laws by the vote of the voting members of the society, by the vote of delegates or representatives of voting members, or by the vote of local lodges or branches. No amendment submitted for adoption by referendum shall be adopted unless, within six months from the date of submission thereof, a majority of all of the voting members of the society shall have signified their consent to such amendment by one of the methods herein specified. No amendment to the articles of incorporation, constitution or by-laws of any domestic society shall take effect unless approved by the commissioner who shall approve such amendment if he finds that it has been duly adopted and is not inconsistent with any requirement of the laws of the commonwealth or with the character, objects and purposes of the society. Unless the commissioner shall disapprove any such amendment within sixty days after the filing of same, such amendment shall be considered approved. The approval or disapproval of the commissioner shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office. In case he disapproves such amendment, the reasons therefor shall be stated in such written notice. Within ninety days from the approval thereof by the commissioner, or from the time such amendment is considered approved, as provided in this section, all such amendments, or a synopsis thereof, shall be furnished to all members of the society either by mail or by publication in full in the official organ of the society. The affidavit of any officer of the society or of any one authorized by it to mail any amendments or synopsis thereof, stating facts which show that same have been duly addressed and mailed, shall be prima facie evidence that such amendments or synopsis thereof have been furnished the addressee. Every foreign or alien society authorized to do business in the commonwealth shall file with the commissioner a duly certified copy of all amendments of, or additions to, its articles of incorporation, constitution or laws within ninety days after the enactment of same. Printed copies of the constitution or laws, as amended, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.

M.G.L. c. 176, § 11 Fraudulent alteration, etc., of records

c. 176, § 11. Fraudulent alteration, etc., of records Section 11. Whoever with fraudulent intent alters, defaces, mutilates, destroys or conceals any record of any society made by or in the custody of the secretary thereof shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.

M.G.L. c. 176, § 12 Funds

c. 176, § 12. Funds Section 12. Any society may create, maintain, invest, disburse and apply a death fund, any part of which may in accordance with the by-laws of the society be designated and set apart as an emergency, a surplus or other similar fund, and a disability fund and a hospitalization and medical service fund. Such funds 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 part thereof except as provided in sections seventeen, twenty or twenty-five. The funds from which benefits shall be paid shall be derived and the fund from which the expenses of the society shall be defrayed may be derived from periodical or other payments by the members of the society and accretions of said funds.

M.G.L. c. 176, § 13 Disbursements; vouchers

c. 176, § 13. Disbursements; vouchers Section 13. No society shall make any disbursements of fifteen dollars or more, except disbursements on account of the return of dues paid in advance, unless the same be evidenced by a voucher signed by or on behalf of the person receiving the money and correctly describing the consideration for the payment, and if the same be for services and disbursements setting forth the services rendered and an itemized statement of the disbursements made; and if it be in connection with any matter pending before any legislature or public body, or before any department, board, commission or officer of any government, whether local, state or national, correctly describing in addition the nature of the matter and of the interest of such society therein; or, if such voucher cannot be obtained, by an affidavit stating the reason for not obtaining such voucher, and setting forth the particulars above mentioned.

M.G.L. c. 176, § 14 Creation and operation of charitable, benevolent or educational institutions

c. 176, § 14. Creation and operation of charitable, benevolent or educational institutions Section 14. It shall be lawful for a society to create, maintain and operate charitable, benevolent or educational institutions for the benefit of its members and their families and dependents, and for the benefit of children insured by the society. For such purpose it may own, hold or lease personal property or real property located within or without the commonwealth, with necessary buildings thereon. Such property shall be reported in every annual statement, but shall not be allowed as an admitted asset of such society. Maintenance, treatment and proper attendance in any such institution may be furnished free or a reasonable charge may be made therefor, but no such institution shall be operated for profit. The society shall maintain a separate accounting of any income and disbursements under this section and report them in its annual statement. No society shall own or operate funeral homes or undertaking establishments.

M.G.L. c. 176, § 15 Benefits other than insurance benefits

c. 176, § 15. Benefits other than insurance benefits Section 15. A society may pay benefits, other than insurance benefits, to its members from any special account or fund maintained for such purpose; provided, that if such benefits are of such a nature that they could constitute benefits within the classes of insurance set forth in section seventeen, a society making such payments may not— (a) Make any separate charge therefor; (b) Issue any certificate, policy or other document promising such payments; (c) Provide in its constitution, laws or any other document that such payments may be received by the member as a matter of right; or (d) Advertise such payments as insurance or as payments to which the member has any right. The society shall maintain a separate accounting of all disbursements made under this section and report them in its annual statement.

M.G.L. c. 176, § 16 Liability of officers and members; indemnification

c. 176, § 16. Liability of officers and members; indemnification Section 16. (a) The officers and members of the supreme, grand or any subordinate body of a society shall not be personally liable for the payment of any benefits provided by a society. (b) A person may be indemnified and reimbursed by a society for expenses reasonably incurred by, and liabilities imposed upon, such person in connection with or arising out of any action, suit or proceeding, whether civil, criminal, administrative or investigative, or threat thereof, in which the person may be involved by reason of the fact that the person is or was a director, officer, employee or agent of the society or for any firm, corporation or organization which the person served in any capacity at the request of the society. A person shall not be so indemnified or reimbursed (1) in relation to any matter in such action, suit or proceeding as to which the person shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee or agent of the society; or (2) in relation to any matter in such action, suit or proceeding, or threat thereof, which has been made the subject of a compromise settlement, unless in either such case the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interest of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that the person's conduct was unlawful. The determination of whether the conduct of such person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in clause (1) or (2) of the preceding sentence may only be made by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to such action, suit or proceeding or by a court of competent jurisdiction. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of no contest, as to such person shall not in itself create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement. The foregoing right of indemnification and reimbursement shall not be inclusive of other rights to which such person may be entitled as a matter of law and shall inure to the benefit of the person's heirs, executors and administrators. (c) A society shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the society, or who is or was serving at the request of the society as a director, officer, employee or agent of any other firm, corporation or organization against any liability asserted against such person and incurred by the person in any such capacity or arising out of the person's status as such, whether or not the society would have the power to indemnify the person against such liability under this section. (d) No director, officer, employee, member or volunteer of a society serving without compensation, shall be liable, and no cause of action may be brought, for damages resulting from the exercise of judgment or discretion in connection with the duties or responsibilities of such person for the society unless such act or omission involved willful or wanton misconduct.

M.G.L. c. 176, § 17 Benefits

c. 176, § 17. Benefits Section 17. A society authorized to do business in the commonwealth may provide for the payment of— (a) Death benefits in any form; (b) Endowment benefits; (c) Annuity benefits; (d) Temporary or permanent disability benefits; (e) Hospital, medical or nursing benefits; (f) Monument or tombstone benefits to the memory of deceased members not exceeding in any case the sum of three hundred dollars; and (g) Such other benefits as authorized for life insurers and which are not inconsistent with this chapter. A society shall specify in its rules those persons who may be issues, or covered by, the contractual benefits authorized in clauses (a) to (g), inclusive, consistent with providing benefits to members and their dependents.

M.G.L. c. 176, § 18 Children

c. 176, § 18. Children Section 18. A society may provide for benefits on the lives of children under the minimum age for adult membership, but not greater than eighteen years of age at time of application therefor, upon the application of some adult person, as its by-laws or rules may provide, which benefits shall be in accordance with the provisions of section seventeen. A society may, at its option, organize and operate branches for such children. Membership and initiation in local lodges shall not be required of such children, nor shall they have a voice in the management of the society. A society shall have power to provide for the designation and changing of designation of beneficiaries in the certificates providing for such benefits, and to provide in all other respects for the regulation, government and control of such certificates, and all rights, obligations and liabilities incident thereto and connected therewith.

M.G.L. c. 176, § 19 Deferred payments or instalments

c. 176, § 19. Deferred payments or instalments Section 19. Deferred payments or instalments of claims shall be considered as fixed liabilities on the happening of the contingency upon which such payments or instalments are thereafter to be paid. Such liability shall be the present value of such future payments or instalments upon the rate of interest and mortality assumed by the society for establishing contributions and for valuation; and every society shall at once, upon the filing of due proofs of the happening of the contingency, set apart a fund to meet such deferred payments, regardless of proposed future collections to meet any such payments, and hold such fund, with its interest accretions, in trust for the beneficiary entitled thereto. No society shall provide for such deferred payments or instalments unless it possesses the full reserve specified in the following section, or, if paying accident benefits only, has assets sufficient to pay all its liabilities.

M.G.L. c. 176, § 20 Paid-up nonforfeiture benefits, cash surrender values, and other options

c. 176, § 20. Paid-up nonforfeiture benefits, cash surrender values, and other options Section 20. A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans and such other options as its by-laws may permit. As to each certificate issued, a society shall grant at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts or contracts of term insurance of uniform amount of fifteen years or less expiring before age sixty-six. In the case of certificates other than those for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table, the Commissioners 1958 Standard Ordinary Mortality Table, or such later tables as are authorized for use by domestic life insurers and approved by the commissioner, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the excess, if any, of (a) over (b) as follows: (a) The reserve under the certificate determined on the basis specified in the certificate; and (b) The sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to two and one-half per cent of the face amount of the certificate, which, in the case of insurance on the lives of children, shall be the ultimate face amount of the certificate, if death benefits provided therein are graded. However, in the case of certificates issued on a substandard basis, or in the case of certificates, the reserves for which are computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted, including accompanying pure endowment, if any, may be computed upon the rates of mortality not greater than one hundred and thirty per cent of those shown by the mortality table specified in the certificate for the computation of the reserve. In the case of certificates for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table, the Commissioners 1958 Standard Ordinary Mortality Table, or such later tables as are authorized for use by domestic life insurers and approved by the commissioner, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of the commonwealth applicable to life insurance companies issuing policies containing life insurance benefits based upon such tables.

M.G.L. c. 176, § 21 Change of beneficiary; interest of beneficiary; funeral benefits; payment of benefits to personal representative

c. 176, § 21. Change of beneficiary; interest of beneficiary; funeral benefits; payment of benefits to personal representative Section 21. (a) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate unless the certificate has become due and payable in conformity with the provision of the benefit contract. (b) A society may make provision for the payment of funeral benefits to the extent of such portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expense occasioned by the burial of the member. (c) If, at the death of any member, there is no lawful beneficiary to whom the insurance benefits shall be payable, the amount of such benefits, except to the extent that funeral benefits may be paid as provided in subsection (b), shall be payable to the personal representative of the deceased member, but if the owner of the certificate is other than the insured, such proceeds shall be payable to the owner.

M.G.L. c. 176, § 22 Attachment or other process

c. 176, § 22. Attachment or other process Section 22. No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society.

M.G.L. c. 176, § 22A Burial benefits; restrictions; payment

c. 176, § 22A. Burial benefits; restrictions; payment Section 22A. No society shall by its by-laws or by any contract or policy made or issued by it in this commonwealth restrict the payment of benefits or any part thereof accruing under such by-laws, contract or policy upon the death of a member or of the person insured, as the case may be, to a designated funeral director or group of funeral directors, or in any way deprive the personal representative or family of the deceased of freedom of choice in procuring and purchasing supplies and services in connection with the burial of such deceased. Such benefits or any part thereof shall be paid to such funeral director as the person or persons entitled to said benefits or the personal representative of the deceased shall direct.

M.G.L. c. 176, § 23 Certificate; agreement between society and member; statements by member as representations; reserves

c. 176, § 23. Certificate; agreement between society and member; statements by member as representations; reserves Section 23. Every society authorized to do business in the commonwealth shall issue to each benefit member a certificate specifying the amount of benefits provided thereby. The certificate, together with any riders or endorsements attached thereto, the charter or articles of incorporation, the constitution and by-laws of the society, the application for membership, and declaration of insurability, if any, signed by the applicant, and all amendments to each thereof, shall constitute the agreement, as of the date of issuance, between the society and the member, and the certificate shall so state. A copy of the application for membership and of the declaration of insurability, if any, shall be endorsed upon or attached to the certificate. All statements purporting to be made by the member shall be representations and not warranties. Any waiver of this provision shall be void. Any changes, additions or amendments to the charter or articles of incorporation, constitution or by-laws duly made or enacted subsequent to the issuance of the certificate, shall bind the member and the beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions or amendments had been made prior to and were in force at the time of the application for membership, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the member as of the date of issuance. Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society shall be received as evidence of the terms and conditions thereof. A society shall provide in its constitution or by-laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that there shall be paid by the member to the society the amount of the member's equitable proportion of such deficiency as ascertained by its board, and that if the payment be not made it shall stand as an indebtedness against the certificate and draw interest not to exceed five per cent per annum compounded annually.

M.G.L. c. 176, § 24 Filing copies of forms with commissioner; standard provisions of certificates

c. 176, § 24. Filing copies of forms with commissioner; standard provisions of certificates Section 24. (a) No certificate shall be delivered or issued for delivery in this commonwealth unless a copy of the form has been filed with the commissioner in the manner provided for like policies issued by life insurers in this commonwealth. Every life, accident, health, or disability certificate and every annuity certificate issued on or after January 1, 2001 shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life insurers authorized to write any of these lines of insurance in this commonwealth, except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The certificate shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society's laws or rules in force at the time of the issuance of the certificate which, if violated, will result in termination or reduction of benefits payable under the certificate. (b) A society may specify the terms and conditions on which benefit contracts may be assigned.

M.G.L. c. 176, § 25 Surplus of assets; waiver of contributions

c. 176, § 25. Surplus of assets; waiver of contributions Section 25. Whenever it appears by a valuation certified to by a competent actuary that the actual assets of a society exceed its liabilities, including in liabilities the tabular reserves computed on the basis specified in section twenty by an amount equal to five per cent of said reserves, increased by an amount equal to all its other mortuary liabilities, it may, by vote of its officers having the powers of directors, and for such period as its assets are maintained as aforesaid, waive the further collection of the regular mortuary contributions from its members. A society maintaining a surplus of assets in excess of such amount as enables it to waive contributions as aforesaid may pay back to its several members an equitable portion of such surplus in such manner as may be determined by vote of said officers.

M.G.L. c. 176, § 27 Waiver of by-laws or constitutional provisions by subordinate bodies, officers or members

c. 176, § 27. Waiver of by-laws or constitutional provisions by subordinate bodies, officers or members Section 27. The constitution and by-laws of the society may provide that no subordinate body, nor any of its subordinate officers or members shall have the power or authority to waive any of the provisions of by-laws or the constitution. Such provisions shall be binding on the society and every member and beneficiary of a member.

M.G.L. c. 176, § 28 Reinsurance

c. 176, § 28. Reinsurance Section 28. A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in the commonwealth, or, if not so authorized, one which is approved by the commissioner; but no such society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed or otherwise becoming effective, unless the reinsurance is payable by the assuming 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. Notwithstanding the first paragraph, a society may reinsure the risks of another society in a consolidation, merger or assumption of reinsurance transaction approved by the commissioner pursuant to section 20 of chapter 175.

M.G.L. c. 176, § 29 Termination and renewal of licenses; fees; license as evidence

c. 176, § 29. Termination and renewal of licenses; fees; license as evidence Section 29. The authority of a society licensed under the provisions of this chapter may be renewed annually, but in all cases shall terminate on the first day of the succeeding July; provided, however, a license so issued shall continue in full force and effect until the new license be issued or specifically refused. For each such license or renewal the society shall pay the commissioner a fee to be determined annually by the commissioner of administration under the provision of section three B of chapter seven. A duly certified copy or duplicate of such license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter.

M.G.L. c. 176, § 30 Licensing of foreign or alien societies

c. 176, § 30. Licensing of foreign or alien societies Section 30. No foreign or alien society shall transact business in the commonwealth without a license issued by the commissioner. Any such society may be licensed to transact business in the commonwealth upon filing with the commissioner— (a) A duly certified copy of its charter or articles of incorporation; (b) A copy of its constitution and by-laws, certified by its secretary or corresponding officer; (c) A power of attorney to the commissioner as prescribed in section thirty-six; (d) A statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the commissioner, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province or country, satisfactory to the commissioner; (e) A certificate from the proper official of its home state, territory, province or country that the society is legally incorporated and licensed to transact business therein; (f) Copies of its certificate forms; and (g) Such other information as he may deem necessary—and upon a showing that its assets are invested in accordance with the provisions of this chapter. Any foreign or alien society desiring admission to this commonwealth shall have the financial qualifications required of domestic societies organized under this chapter.

M.G.L. c. 176, § 31 Action by beneficiary

c. 176, § 31. Action by beneficiary Section 31. The beneficiary under a certificate issued by any society may maintain an action thereon in his own name.

M.G.L. c. 176, § 32 Foreign societies; deposits

c. 176, § 32. Foreign societies; deposits Section 32. A foreign society, if formed under the laws of any government or state other than the United States or one of the United States, shall not be admitted and authorized to transact business in the commonwealth until, besides complying with the conditions of sections thirty and thirty-six, it has satisfied the commissioner that it has made a deposit, as hereinafter provided, with the state treasurer or with the proper board or officer of some other state of the United States or with trustees who are citizens or corporations of the United States and approved by the commissioner, appointed under a deed of trust executed in a form approved by the attorney general and the commissioner and who have filed with the commissioner a bond, in a form approved by the attorney general and the commissioner, with a surety company authorized to transact business in the commonwealth as surety, and in such sum as the commissioner may require, conditioned upon the faithful performance of their duties and running to the commissioner or his successor for the benefit of all the members, certificate holders and creditors within the United States of such society. Such deposit shall be held in exclusive trust for the benefit and security of all the members, certificate holders and creditors in the United States of such society, and shall be in an amount not less than the reserves with respect to all its outstanding certificates of membership held by residents of the United States and may be made in the securities and subject to the limitations specified in sections sixty-three and sixty-six of chapter one hundred and seventy-five, or in cash or such other securities as the commissioner may approve. If made with the state treasurer, such deposit shall not be returned to the society until it has ceased to transact business in the commonwealth, nor until the commissioner is satisfied that the society is under no obligation to members, certificate holders or other persons in this commonwealth or in any other state of the United States for whose benefit such deposit was made, nor until he has given his written consent to such return; provided, that the commissioner may, in any case, authorize in writing the return to the society of any excess of any such deposit over the amount required by this section if he is satisfied that such return will not be prejudicial to the interests of its members, certificate holders or creditors.

M.G.L. c. 176, § 33 Injunction against transaction of business; grounds; procedure

c. 176, § 33. Injunction against transaction of business; grounds; procedure Section 33. When the commissioner upon investigation finds that a domestic society— (a) Has exceeded its powers; (b) Has failed to comply with any provision of this chapter; (c) Is not fulfilling its contracts in good faith; (d) Has a membership of less than four hundred after an existence of one year or more; or (e) Is conducting business fraudulently or in a manner hazardous to its members, creditors, the public or the business, he shall notify the society of his findings, state in writing the reasons for his dissatisfaction, and require the society to show cause before him, at a time and place named, why he should not take action to have the society enjoined from carrying on any business until the violation complained of shall have been corrected, or to have any other appropriate action commenced in court, as provided in the next paragraph. If on such date the society does not present good and sufficient reasons why he should not take such action, the commissioner may present the facts relating thereto to the attorney general, who shall, if he deems the circumstances warrant, commence an action to enjoin the society from transacting business or commence any other appropriate action in court. The court shall thereupon notify the officers of the society of a hearing. If after a full hearing it appears that the society should be so enjoined or liquidated or a receiver appointed, or that other appropriate action be taken by the court, the court shall enter the necessary order. No society so enjoined shall have authority to do business until— (a) The commissioner finds that the violation complained of has been corrected; (b) The cost of such action shall have been paid by the society if the court finds that the society was in default as charged; (c) The court has dissolved its injunction; and (d) The commissioner has reinstated the certificate of authority. If the court orders the society liquidated, it shall be enjoined from carrying on any further business, whereupon the receiver of the society shall proceed at once to take possession of the books, papers, money and other assets of the society, and, under the direction of the court, proceed forthwith to close the affairs of the society and to distribute its funds to those entitled thereto. No action under this section shall be commenced in any court of the commonwealth unless brought by the attorney general upon request of the commissioner. Whenever a receiver is to be appointed for a domestic society, the court shall appoint the commissioner as such receiver. The provisions of this section relating to hearing by the commissioner, action by the attorney general at the request of the commissioner, hearing by the court, injunction and receivership shall be applicable to a society which shall voluntarily determine to discontinue business.

M.G.L. c. 176, § 34 Foreign or alien societies; suspension or denial of license

c. 176, § 34. Foreign or alien societies; suspension or denial of license Section 34. When the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state, (a) has exceeded its powers; (b) has failed to comply with any of the provisions of this chapter; (c) is not fulfilling its contracts in good faith; or (d) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, he shall notify the society of his findings, state in writing the reasons for his dissatisfaction, and require the society to show cause on a date named why its license should not be suspended, revoked or refused. If on such date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked or refused, he may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to him that such suspension or refusal should be withdrawn, or he may revoke the authority of the society to do business in this state. Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in the commonwealth during the time such society was legally authorized to transact business herein.

M.G.L. c. 176, § 35 Agents of societies; licensing

c. 176, § 35. Agents of societies; licensing Section 35. Agents of societies shall be licensed in accordance with the provisions of this section. (1) The term ''insurance agent'' as used in this section means any authorized or acknowledged agent of a society who acts as such in the solicitation, negotiation or procurement or making of a life insurance, accident and health insurance or annuity contract, including any corporation which is organized exclusively for the purpose of acting as such insurance agent and which is subject to the provisions of section one hundred and seventy-four of chapter one hundred and seventy-five insofar as said provisions are applicable to a fraternal benefit society, except that the term ''insurance agent'' shall not include— (a) Any regular salaried officer, member or employee of a licensed society who devotes substantially all of his services to activities other than the solicitation of fraternal insurance contracts from the public, and who receives for the solicitation of such contracts no commission or other compensation directly dependent upon the amount of business obtained; or (b) Any agent, representative or member of a fraternal benefit society, who devotes, or intends to devote, less than 50 per cent of the person's time to the solicitation and procurement of insurance contracts for such society. Any person who in the preceding calendar year has solicited or procured any of the following contracts of insurance on behalf of any society is presumed to have devoted or intended to devote 50 per cent of the person's time to the solicitation and procurement of insurance contracts: (1) life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year; (2) permanent life insurance contracts offering more than $10,000 of coverage on an individual life; (3) term life insurance contracts offering more than $50,000 of coverage on an individual life; (4) insurance contracts other than life that the fraternal benefit society may write that insure the lives of more than 25 individuals; (5) variable life insurance or variable annuity contracts. (2) Any person who in the commonwealth acts as insurance agent for a society without having authority so to do by virtue of a license issued and in force pursuant to the provisions of this section shall, except as provided in subsection (1), be guilty of a misdemeanor. (3) No society doing business in the commonwealth shall pay any commission or other compensation to any person for any services in obtaining in the commonwealth any new contract of life, accident or health insurance, or any new annuity contract, except to a licensed insurance agent of such society, and except an agent exempted under subsection (1)(b) of this section. (4)(a) The commissioner may issue a license to any person who has paid an annual license fee as determined annually by the commissioner of administration under the provision of section three B of chapter seven and who has complied with the requirements of this section, authorizing such licensee to act as an insurance agent on behalf of any society named in such license which is authorized to do business in the commonwealth. (b) Before any insurance agent's license shall be issued there shall be on file in the office of the commissioner the following documents:— (1) A written application by the prospective licensee in such form or forms and supplements thereto, and containing such information, as the commissioner may prescribe; and (2) A certificate by the society which is to be named in such license, stating that such society has satisfied itself that the named applicant is trustworthy and competent to act as such insurance agent, and that the society will appoint such applicant to act as its agent if the license applied for is issued by the commissioner. Such certificates shall be executed and acknowledged by an officer or managing agent of such society. (c) No written or other examination shall be required of any individual seeking to be named as a licensee to represent a society as its agent. (d) The commissioner may refuse to issue or renew any insurance agent's license if in his judgment the proposed licensee is not trustworthy and competent to act as such agent, or has given cause for revocation or suspension of such license, or has failed to comply with any prerequisite for the issuance or renewal, as the case may be, of such license. (e) Every license issued pursuant to this section, and every renewal thereof, shall expire on December thirty-first of the even-numbered calendar year following the calendar year in which such license or renewal license was issued. (f) If the application for a renewal license shall have been filed with the commissioner on or before December thirty-first of the year in which the existing license is to expire, such applicant named in such existing license may continue to act as insurance agent under such existing license, unless same shall be revoked or suspended, until the issuance by the commissioner of the renewal license, or until the expiration of five days after he shall have refused to renew such license and shall have served written notice of such refusal on the applicant. If the applicant shall, within thirty days after such notice is given, notify the commissioner in writing of his request for a hearing on such refusal, the commissioner shall, within a reasonable time after receipt of such notice, grant such hearing, and he may, in his discretion, reinstate such license. (g) Any such renewal license of an insurance agent may be issued upon the application of the society named in the existing license. Such application shall be in the form or forms prescribed by the commissioner and shall contain such information as he may require. Such application shall contain a certificate executed by the president, or by a vice president, a secretary, an assistant secretary, or corresponding officer by whatever name known, or by an employee expressly designated and authorized to execute such certificate of a domestic or foreign society or by the United States manager of an alien society, stating that the addresses therein given of the agents of such society for whom renewal licenses are requested therein have been verified in each instance immediately preceding the preparation of the application. Notwithstanding the filing of such application, the commissioner may, after reasonable notice to any such society, require that any or all agents of such society to be named as licensees in renewal licenses shall execute and file separate applications for the renewal of such licenses, as hereinbefore specified, and he may also require that each such application shall be accompanied by the certificate specified in paragraph (b)(2) of subsection (4) of this section. (5) Every society doing business in the commonwealth shall, upon the termination of the appointment of an insurance agent licensed to represent it in the commonwealth, forthwith file with the commissioner a statement, in such form as he may prescribe, of the facts relative to such termination and the cause thereof. Every statement made pursuant to this section shall be deemed a privileged communication. (6)(a) The commissioner may revoke or may suspend for such period as he may determine, any insurance agent's license if, after notice and hearing as specified in this section, he determines that the licensee has— (1) Violated any provision of, or any obligation imposed by, this section, or has violated any law in the course of his dealings as agent; (2) Made a material misstatement in the application for such license; (3) Been guilty of fraudulent or dishonest practices; (4) Demonstrated his incompetency or untrustworthiness to act as an insurance agent; or (5) Been guilty of rebating as defined by the laws of the commonwealth applicable to life insurance companies. (b) The revocation or suspension of any insurance agent's license shall terminate forthwith the license of such agent. No individual whose license has been revoked shall be entitled to obtain any insurance agent's license under the provisions of this section for a period of one year after such revocation, or, if such revocation be judicially reviewed, for one year after the final determination thereof affirming the action of the commissioner in revoking such license.

M.G.L. c. 176, § 36 Commissioner as attorney for service of process

c. 176, § 36. Commissioner as attorney for service of process Section 36. Every society authorized to do business in the commonwealth shall appoint in writing the commissioner and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and shall agree in such writing that any lawful process against it which is served on said attorney shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in the commonwealth. Copies of such appointment, certified by said commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service shall only be made upon the commissioner, or if absent, upon the person in charge of his office. It shall be made in duplicate and shall constitute sufficient service upon the society. When legal process against a society is served upon the commissioner, he shall forthwith forward one of the duplicate copies by registered mail, prepaid, directed to the secretary or corresponding officer. Such service shall be made at least thirty days prior to the return day of the writ, and a society shall not be required to appear or file an answer, pleading or defence in less than thirty days after such service of any other process not commenced by writ. Legal process shall not be served upon a society except in the manner herein provided. At the time of serving any process upon the commissioner, the plaintiff or complainant in the action shall pay to the commissioner a fee of two dollars.

M.G.L. c. 176, § 37 Injunction; attorney general

c. 176, § 37. Injunction; attorney general Section 37. No application or petition for injunction against any domestic, foreign or alien society, or branch thereof, shall be brought in any court of the commonwealth except by the attorney general upon request of the commissioner.

M.G.L. c. 176, § 38 Review of commissioner's decisions and findings

c. 176, § 38. Review of commissioner's decisions and findings Section 38. All decisions and findings of the commissioner made under the provisions of this chapter shall be subject to review by proper proceedings in any court of competent jurisdiction in the commonwealth.

M.G.L. c. 176, § 39 Assets; special funds; expenses

c. 176, § 39. Assets; special funds; expenses Section 39. 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 apportionment or the surrender of any part thereof, except as provided in the contract. A society may create, maintain, invest, disburse and apply any special fund or funds necessary to carry out any purpose permitted by the by-laws of such society. 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, shall, in every provision of the by-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 may, pursuant to resolution of its supreme governing body, establish and operate one or more separate accounts and issue contracts on a variable basis, subject to the law regulating life insurers establishing such accounts and issuing such contracts. To the extent the society deems it necessary in order to comply with the federal or state laws, or any rules issued under such laws, the society may adopt special procedures for the conduct of the business and affairs of such separate accounts. The society may also, for persons having beneficial interests in such accounts, provide special voting and other rights, including without limitation special rights and procedures relating to an investment policy, investment advisory services, selection of a committee to manage the business and affairs of the account and the society may further issue contracts on a variable basis to which the first and fifth paragraphs of section 23 shall not apply.

M.G.L. c. 176, § 40 Investment of funds

c. 176, § 40. Investment of funds Section 40. Every society shall invest its funds in securities permitted by chapter one hundred and seventy-five for the investment of the capital of insurance companies, except that it may invest its funds in the shares or savings deposits of federal savings and loan associations located in the commonwealth, in shares or deposits in credit unions insured by the Massachusetts Credit Union Share Insurance Corporation and, in addition, invest and deposit in paid-up shares and accounts of and in co-operative banks chartered by the commonwealth, and may deposit any of its funds in savings accounts in any savings bank or trust company, chartered under the laws of the commonwealth; provided, that any foreign society permitted or seeking to do business in the commonwealth may invest its funds in accordance with the laws of the state where it is incorporated; and provided, further, that a part thereof, not exceeding twenty per cent of its death fund, may be invested in a building for use and occupation by the society as its home office; and that a society having branches situated in the Dominion of Canada may invest a part of its death fund in the public funds of the Dominion of Canada, or of any province of the Dominion of Canada, not exceeding in the aggregate an amount equal to the sum of its collected premiums for the four months last past. Any society, having admitted assets as shown by its annual statement filed with the commissioner in excess of one hundred and five per cent of it entire liabilities, including its required reserves, provided such reserves are at least equivalent to the amount required by the American experience table of mortality with interest at two and one half per cent per annum, may invest an amount not exceeding five per cent of its funds in the capital stock of a trust company incorporated in and doing business in the commonwealth, or of a national banking association incorporated under federal law and located in any one of the New England states, if such trust company or association has paid dividends in cash of not less than four per cent on its capital stock in each of the five years next preceding the date of the investment, and if the amount of surplus of such trust company or association is at least equal to fifty per cent of the amount of its capital stock. Any society, having admitted assets as shown by its annual statement filed with the commissioner in excess of one hundred per cent of its entire liabilities, including its required reserves, provided such reserves are at least equivalent to the amount required by the American Experience Table of Mortality with interest at two and one half per cent per annum, may invest an amount not exceeding twenty-five per cent of such excess in the shares of stock of companies incorporated under the laws of the United States, or any state thereof, or in the certificates of beneficial interest issued by an association or trust as defined in section one of chapter one hundred and eighty-two; provided, that the owners or holders of such stock or certificates may not become liable to any assessment except for taxes. No society shall invest in, acquire, or hold directly or indirectly, more than ten per cent of the capital stock of any corporation, or of the certificates of any association or trust; nor shall more than ten per cent of the society's funds be invested in the stock of any one corporation or in the shares of any one association or trust.

M.G.L. c. 176, § 41 Reports; annual statements

c. 176, § 41. Reports; annual statements Section 41. Reports shall be filed and synopsis of annual statements shall be published in accordance with the provisions of this section. (1) Every society transacting business in the commonwealth shall annually, on or before the first day of March, unless for cause shown such time has been extended by the commissioner, file with the commissioner a true statement of its financial condition, transactions and affairs for the preceding calendar year and pay a fee to be determined annually by the commissioner of administration under the provision of section three B of chapter seven 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. (2) 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 first of each year, or, in lieu thereof, such synopsis may be published in the society's official publication. (3) As a part of the annual statement herein required, each society shall, on or before the first day of March, file with the commissioner a valuation of its certificates in force on December thirty-first last preceding, provided the commissioner may, in his discretion for cause shown, extend the time for filing such valuation for not more than two calendar months. Such report of valuation shall show, as reserve liabilities, the difference between the present mid-year value of the promised benefits provided in the certificates of such society in force and the present mid-year value of the future net premiums as the same are in practice actually collected, not including therein any value for the right to make extra assessments, and not including any amount by which the present mid-year value of future net premiums exceeds the present mid-year value of promised benefits on individual certificates. At the option of any society, in lieu of the above, the valuation may show the net tabular value. Such net tabular value as to certificates issued prior to January first, nineteen hundred and fifty-nine, shall be determined in accordance with the provisions of law applicable prior to said January first, and, as to certificates issued on or after said January first, shall not be less than the reserves determined according to the Commissioners' Reserve Valuation method as hereinafter defined. If the premium charged is less than the tabular net premium according to the basis of valuation used, and additional reserve equal to the present value of the deficiency in such premiums shall be set up and maintained as a liability. The reserve liabilities shall be properly adjusted in the event that the mid-year or tabular values are not appropriate. (4) Reserves according to the Commissioners' Reserve Valuation method, for the life insurance and endowment benefits of certificates providing for a uniform amount of insurance and requiring the payment of uniform premiums shall be the excess, if any, of the present value, at the date of valuation, of such future guaranteed benefits provided for by such certificates, over the then present value of any future modified net premiums therefor. The modified net premiums for any such certificate shall be such uniform percentage of the respective contract premiums for such benefits that the present value, at the date of issue of the certificate, of all such modified net premiums shall be equal to the sum of the then present value of such benefits provided for by the certificate and the excess of (a) over (b), as follows:— (a) A net level premium equal to the present value, at the date of issue, of such benefits provided for after the first certificate year, divided by the present value, at the date of issue, of an annuity of one per cent per annum payable on the first and each subsequent anniversary of such certificate on which a premium falls due; provided, however, that such net level annual premium shall not exceed the net level annual premium on the nineteen year premium whole life plan for insurance of the same amount at an age one year higher than the age at issue of such certificate; and (b) A net one-year term premium for such benefits provided for in the first certificate year. Reserves according to the Commissioners' Reserve Valuation method for (1) life insurance benefits for varying amounts of benefits or requiring the payment of varying premiums; (2) annuity and pure endowment benefits; (3) disability and accidental death benefits in all certificates and contracts; and (4) all other benefits except life insurance and endowment benefits, shall be calculated by a method consistent with the principles of this subsection. (5) The present value of deferred payments due under incurred claims or matured certificates shall be deemed a liability of the society, and shall be computed upon mortality and interest standards prescribed in the following subsection:— (6) Such valuation and underlying data shall be certified by a competent actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society. The minimum standards of valuation for certificates issued prior to January first, nineteen hundred and fifty-nine, shall be those provided by the law applicable immediately prior to said January first, but not lower than the standards used in the calculating of rates for such certificates. The minimum standard of valuation for certificates issued on or after said January first shall be three and one-half per cent interest and the following tables, or such interest assumptions and tables as are authorized for use by domestic life insurers and approved by the commissioner:— (a) For certificates of life insurance — American Men Ultimate Tables of Mortality, with Bowerman's or Davis' Extension thereof or with the consent of the commissioner, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table, using actual age of the insured for male risks and an age not more than three years younger than the actual age of the insured for female risks; (b) For annuity certificates, including life annuities provided or available under optional modes of settlement in such certificates — the 1937 Standard Annuity Table; (c) For disability benefits issued in connection with life benefit certificates — Hunter's Disability Table, which, for active lives, shall be combined with a mortality table permitted for calculating the reserves on life insurance certificates, except that the table known as Class III Disability Table (1926) modified to conform to the contractual waiting period, shall be used in computing reserves for disability benefits under a contract which presumes that total disability shall be considered to be permanent after a specified period; (d) For accidental death benefits issued in connection with life benefit certificates — the Inter-Company Double Indemnity Mortality Table combined with a mortality table permitted for calculating the reserves for life insurance certificates; and (e) For non-cancellable accident and health benefits — the Class III Disability Table (1926) with conference modifications or, with the consent of the commissioner, tables based upon the society's own experience. The commissioner may, in his discretion, accept other standards for valuation if he finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The commissioner may, in his discretion, vary the standards of mortality applicable to all certificates of insurance on substandard lives or other extra hazardous lives by any society authorized to do business in the commonwealth. Whenever the mortality experience under all certificates valued on the same mortality table is in excess of the expected mortality according to such table for a period of three consecutive years, the commissioner may require additional reserves when deemed necessary in his judgment on account of such certificates. Any society, with the consent of the commissioner of insurance or other officer or officers exercising like powers of the state of domicile of the society and under such conditions, if any, which he may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any insured member shall not be affected thereby. (61/2) The minimum standard valuation for certificates issued on or after January 1, 2001, shall be based in the following tables: (a) for certificates of life insurance — the Commissioner's 1941 Standard Ordinary Mortality Table, the Commissioner's 1941 Standard Industrial Mortality Table, the Commissioner's 1958 Standard Ordinary Mortality Table, the Commissioner's 1980 Standard Ordinary Mortality Table or any more recent table made applicable to life insurers; (b) for annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancellable accident and health benefits — such tables as are authorized for use by life insurers who are authorized to write accident and health insurance in the commonwealth. All of the above valuations shall be under valuation methods, including interest assumptions, in accordance with the laws of this commonwealth applicable to life insurers issuing policies containing like benefits. (7) A society neglecting to file the annual statement in the form and within the time provided by this section shall forfeit one hundred dollars for each day during which such neglect continues, and, upon notice by the commissioner to that effect, its authority to do business in this state shall cease while such default continues.

M.G.L. c. 176, § 42 Valuation of bonds or other evidences of debt

c. 176, § 42. Valuation of bonds or other evidences of debt Section 42. Any society may, in the annual statement required by section forty-one, value its bonds or other evidences of debt having a fixed term and rate and not in default as to principal or interest and if amply secured, in accordance with the following rule:— if purchased at par, at the par value; if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield meantime the effective rate of interest at which the purchase was made; provided that the purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase and provided, further, that the commissioner shall have full discretion in determining the method of calculating values according to the foregoing rule; and provided, also, that any society may return such bonds or other evidences of debt at either their market or their book value but in no event at any aggregate value exceeding the aggregate of the values calculated according to the foregoing rule.

M.G.L. c. 176, § 43 Additional, increased or extra rates of contributions

c. 176, § 43. Additional, increased or extra rates of contributions Section 43. If the stated periodical contributions of the members of any society subject to section forty-one are insufficient to pay all reported death, disability, hospitalization and medical service claims in full, and to provide for the creation and maintenance of the funds required by its by-laws or by this chapter, additional contributions or additional, increased or extra rates of contributions shall be collected from its members to meet the deficiency, and the by-laws of the society shall so provide; and such by-laws may provide that upon the written application or consent of the member his certificate may be charged with its proportion of any deficiency disclosed by valuation, with interest not exceeding five per cent per annum.

M.G.L. c. 176, § 44 Domestic societies; visitation and examination; confidentiality and privilege; report and recommendations

c. 176, § 44. Domestic societies; visitation and examination; confidentiality and privilege; report and recommendations Section 44. The commissioner, or any person he may appoint, shall have the power of visitation and examination into the affairs of any domestic society, and he shall make such examination at least once in every three years. He may employ assistants for the purpose of such examination, and he, or any person he may appoint, shall have free access to all books, papers and documents that relate to the business of the society. The minutes of the proceedings of the supreme legislative or governing body and of the board of directors or corresponding body of a society shall be in the English language. In making any such examination the commissioner may summon and qualify as witnesses under oath and examine its officers, agents and employees or other persons in relation to the affairs, transactions and condition of the society. A summary of the report of the commissioner and such recommendations or statements of the commissioner as may accompany such report, shall be read at the first meeting of the board of directors or corresponding body of the society following the receipt thereof, and if directed so to do by the commissioner, shall also be read at the first meeting of the supreme legislative or governing body of the society following the receipt thereof. A copy of the report, recommendations and statements of the commissioner shall be furnished by the society to each member of such board of directors or other governing body. Notwithstanding any other provision of the General Laws, including clause Twenty-sixth of section 7 of chapter 4 and chapter 66, documents, materials or other information, including but not limited to, all working papers and copies thereof created, produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made pursuant to this section or in the course of analysis by the commissioner of the financial condition or market conduct of a domestic society shall be confidential by law and privileged, shall not be a public record under said clause Twenty-sixth, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner may use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. Documents, materials or other information, including but not limited to, all working papers and copies thereof in the possession or control of the National Association of Insurance Commissioners and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action if they are: (i) created, produced, obtained by or disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries in the course of the National Association of Insurance Commissioners and its affiliates and subsidiaries assisting an examination made pursuant to this section or assisting the commissioner in the analysis of the financial condition or market conduct of a domestic society; or (ii) disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section by any member of the National Association of Insurance Commissioners. Neither the commissioner nor any person who received the documents, material or other information while acting under the authority of the commissioner, including the National Association of Insurance Commissioners and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to this section. In order to assist in the performance of the commissioner's duties, the commissioner: (i) may share documents, materials or other information, including the confidential and privileged documents, materials or information subject to this section, with other state, federal and international regulatory agencies, the National Association of Insurance Commissioners and its affiliates and subsidiaries and state, federal and international law enforcement authorities provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information; (ii) may receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries and regulatory and law enforcement officials of other foreign or domestic jurisdictions and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and (iii) may enter into agreements governing sharing and use of information consistent with this section. No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in this section. A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this section shall be available and enforced in any proceeding in and in any court of the commonwealth.

M.G.L. c. 176, § 45 Foreign or alien societies; examination; confidentiality and privilege

c. 176, § 45. Foreign or alien societies; examination; confidentiality and privilege Section 45. The commissioner, or any person whom he may appoint, may examine any foreign or alien society transacting or applying for admission to transact business in this state. He may employ assistants, and he, or any person he may appoint, shall have free access to all books, papers and documents that relate to the business of the society. He may in his discretion accept, in lieu of such examination, the examination of the insurance department of the state, territory, district, province or country where such society is organized. The compensation and actual expenses of the examiners making any examination or general or special valuation shall be paid by the society examined or by the society whose certificate obligations have been valued, upon statements furnished by the commissioner. Notwithstanding any other provision of the General Laws, including clause Twenty-sixth of section 7 of chapter 4 and chapter 66, documents, materials or other information, including but not limited to, all working papers and copies thereof created, produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made pursuant to this section or in the course of analysis by the commissioner of the financial condition or market conduct of a foreign society shall be confidential by law and privileged, shall not be a public record under said clause Twenty-sixth, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner may use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. Documents, materials or other information, including but not limited to, all working papers and copies thereof in the possession or control of the National Association of Insurance Commissioners and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action if they are: (i) created, produced, obtained by or disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries in the course of the National Association of Insurance Commissioners and its affiliates and subsidiaries assisting an examination made under this section or assisting the commissioner in the analysis of the financial condition or market conduct of a foreign society; or (ii) disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries under this section by any member of the National Association of Insurance Commissioners. Neither the commissioner nor any person who received the documents, material or other information while acting under the authority of the commissioner, including the National Association of Insurance Commissioners and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to this section. In order to assist in the performance of the commissioner's duties, the commissioner: (i) may share documents, materials or other information, including the confidential and privileged documents, materials or information subject to this section, with other state, federal and international regulatory agencies, the National Association of Insurance Commissioners and its affiliates and subsidiaries and state, federal and international law enforcement authorities provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information; (ii) may receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries and regulatory and law enforcement officials of other foreign or domestic jurisdictions and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and (iii) may enter into agreements governing sharing and use of information consistent with this section. No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in this section. A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this section shall be available and enforced in any proceeding in and in any court of the commonwealth.

M.G.L. c. 176, § 46 Financial statement, report or finding; service upon society

c. 176, § 46. Financial statement, report or finding; service upon society Section 46. Pending, during or after an examination or investigation of a society, either domestic, foreign or alien, the commissioner shall make public no financial statement, report or finding, nor shall he permit to become public any financial statement, report or finding affecting the status, standing or rights of any society, until a copy thereof shall have been served upon the society at its principal office and the society shall have been afforded a reasonable opportunity to answer any such financial statement, report or finding and to make such showing in connection therewith as it may desire.

M.G.L. c. 176, § 47 Misrepresentations, etc., concerning society or contract

c. 176, § 47. Misrepresentations, etc., concerning society or contract Section 47. No person shall cause or permit to be made, issued or circulated in any form— (a) Any misrepresentation or false or misleading statement concerning the terms, benefits or advantages of any fraternal insurance contract now issued or to be issued in the commonwealth, or the financial condition of any society; (b) Any false or misleading estimate or statement concerning the dividends or shares of surplus paid or to be paid by any society on any insurance contract; or (c) Any incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse, forfeiture or surrender of any insurance contract. A comparison of insurance contracts is incomplete if it does not compare in detail— (1) The gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and (2) Any increase in cash values, and all the benefits provided by each contract for the possible duration thereof as determined by the life expectancy of the insured; or if it omits from consideration— (3) Any benefit or value provided in the contract; (4) Any differences as to amount or period of rates; or (5) Any differences in limitations or conditions or provisions which directly or indirectly affect the benefits. In any determination of the incompleteness or misleading character of any comparison or statement, it shall be presumed that the insured had no knowledge of any of the contents of the contract involved. Any person who violates any provision of this section or knowingly receives any compensation or commission by or in consequence of such violation, shall be punished by a fine not less than one hundred dollars nor more than five hundred dollars or by imprisonment for not less than thirty days nor more than one year, or by both such fine and imprisonment; and shall, in addition, be liable in the amount of three times the sum received by such violator as compensation or commission, which may be sued for and recovered by any person or society aggrieved for his or its own use and benefit in an action of tort.

M.G.L. c. 176, § 48 Unfair discrimination; inducements not specified in certificate or contract

c. 176, § 48. Unfair discrimination; inducements not specified in certificate or contract Section 48. No society doing business in the commonwealth shall make or permit any unfair discrimination between insured members of the same class and equal expectation of life in the premiums charged for certificates of insurance, in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contracts it makes. No society, by itself, or any other party, and no agent or solicitor, personally, or by any other party, shall offer, promise, allow, give, set off, or pay, directly or indirectly, any valuable consideration or inducement to, or for insurance, on any risk authorized to be taken by such society, which is not specified in the certificate. No member shall receive or accept, directly or indirectly, any rebate of premium, or part thereof, or agent's or solicitor's commission thereon, payable on any certificate, or receive or accept any favor or advantage or share in the dividends or other benefits to accrue on, or any valuable consideration or inducement not specified in, the contract of insurance.

M.G.L. c. 176, § 49 Tax exemption

c. 176, § 49. Tax exemption Section 49. Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal and school tax other than taxes on real estate and office equipment.

M.G.L. c. 176, § 50 Law governing

c. 176, § 50. Law governing Section 50. Societies shall be governed by this chapter, and shall be exempt from all other provisions of the insurance laws of the commonwealth except sections sixteen, one hundred and sixty A, one hundred and sixty B, one hundred and seventy-eight to one hundred and eighty, inclusive, and one hundred and eighty-five of chapter one hundred and seventy-five, not only in governmental relations with the commonwealth, but for every other purpose; and no law hereafter enacted shall apply to them unless they are expressly designated therein; provided, however, that the provisions of sections one hundred and eighty M to one hundred and eighty Q, inclusive, of chapter one hundred and seventy-five shall apply to domestic societies.

M.G.L. c. 176, § 51 Application of chapter

c. 176, § 51. Application of chapter Section 51. Nothing contained in this chapter shall be so construed as to affect or apply to— (a) Grand or subordinate lodges of societies, orders or associations doing business in the commonwealth on December thirty-first, nineteen hundred and fifty-eight, which provide benefits exclusively through local or subordinate lodges; (b) Orders, societies or associations which admit to membership only persons engaged in one or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members, their families and descendants of members, and the ladies' societies or ladies' auxiliaries to such orders, societies or associations; No society which, by the provisions of this section, is exempt from the requirements of this chapter, except any society described in clause (b) of this section, shall give or allow, or promise to give or allow, to any person any compensation for procuring new members. Every society which provides for benefits in case of death or disability resulting solely from accident, and which does not obligate itself to pay natural death or sick benefits, shall have all of the privileges and be subject to all the applicable provisions and regulations of this chapter except that the provisions thereof relating to medical examination, valuations of benefit certificates, and incontestability, shall not apply to such society. The commissioner may require from any society or association, by examination or otherwise, such information as will enable him to determine whether such society or association is exempt from the provisions of this chapter.

M.G.L. c. 176, § 52 Penalties

c. 176, § 52. Penalties Section 52. Any person who willfully makes a false or fraudulent statement in or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society, shall be punished by a fine of not less than one hundred nor more than five hundred dollars, or by imprisonment for not less than thirty days nor more than one year, or by both such fine and imprisonment. Any person who willfully makes a false or fraudulent statement in any verified report or declaration under oath required or authorized by this chapter, or of any material fact or thing contained in a sworn statement concerning the death or disability of a member for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of perjury and shall be subject to the penalties therefor prescribed by law. Any person who solicits membership for, or in any manner assists in procuring membership in, any society not licensed to do business in this state shall be punished by a fine of not less than fifty nor more than two hundred dollars. Any person guilty of a willful violation of, or neglect or refusal to comply with, the provisions of this chapter for which a penalty is not otherwise prescribed, shall be punished by a fine of not more than two hundred dollars.

M.G.L. c. 176, § 53 Jurisdiction to restrain violations, etc.

c. 176, § 53. Jurisdiction to restrain violations, etc. Section 53. The superior court shall have jurisdiction in equity, upon an information filed by the Attorney General at the relation of the commissioner, to restrain all violations of this chapter and to enforce compliance with the provisions thereof and payment of all fines, forfeitures or penalties provided thereby. The remedy herein provided shall be in addition to all other remedies otherwise provided by law or by this chapter, and not in substitution therefor.

M.G.L. c. 176, § 54 Validity of contracts issued in violation of chapter, charter, articles, constitution or by-laws

c. 176, § 54. Validity of contracts issued in violation of chapter, charter, articles, constitution or by-laws Section 54. Any contract of insurance or any benefit certificate made, issued, issued or delivered by any society in violation of any provision of this chapter, or any provision of its charter, articles of association, constitution or by-laws, shall nevertheless be valid and binding upon it and its members, but the rights, duties and obligations of the parties thereto shall be determined by the provisions of this chapter and of the charter, articles of association, constitution and by-laws of the society.

M.G.L. c. 176, § 55 Solicitation of membership in society not authorized to transact business, etc.

c. 176, § 55. Solicitation of membership in society not authorized to transact business, etc. Section 55. Whoever solicits membership in any society not duly authorized to transact business in the commonwealth, or, whoever, for a person other than himself, or as an agent, solicitor, organizer, officer or other representative of any such society or of any local or subordinate lodge or branch thereof, acts or aids in any manner in the issue, delivery, negotiation, continuance or renewal of any contract of insurance or benefit certificate in such society, or whoever, as such agent, solicitor, organizer, officer or other representative, acts or aids in any manner in the transaction of any business on behalf of such society or of any local or subordinate lodge or branch thereof, by the collection or transmission of dues or assessments, the calling or holding of meetings, or otherwise, shall be punished by a fine of not less than fifty nor more than five hundred dollars. Whoever, by the means of cards, circulars, letterheads, advertisements, signs or other methods, represents or holds himself out to the public as being an agent, solicitor, organizer, officer or other representative of any such society or of any local or subordinate lodge or branch thereof shall be punished by a fine of not less than twenty nor more than one hundred dollars.

M.G.L. c. 176, § 56 Payment of pensions to employees of society

c. 176, § 56. Payment of pensions to employees of society Section 56. Any society operating on the lodge system with a representative form of government whose rates are on a basis of mortality not lower than the national fraternal congress table as adopted by the national fraternal congress, August twenty-third, eighteen hundred and ninety-nine, if its constitution and by-laws so provide, may pay a pension to any employee who has been continuously in the service of the society for ten years or more and who has become incapacitated for further service by reason of physical or mental disability, and may pay a pension to any employee who has been continuously in the service of the society for fifteen years or more and who is retired by reason of the infirmities of age or has attained the age of sixty-five years. All moneys expended for the purposes of this section shall be paid from the expense fund of the society.
Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter176Fetched: 10/20/2026

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