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§ 8-437. Creation and operation of charitable, benevolent, or educational institutions

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 8. Entities that Act as Insurers
Subtitle 4. Fraternal Benefit Societies (Refs & Annos)
Part IV. Other Powers and Duties
MD Code, Insurance, § 8-437
§ 8-437. Creation and operation of charitable, benevolent, or educational institutions
Currentness
In general
(a) A society may create, maintain, and operate charitable, benevolent, or educational institutions for the benefit of:
(1) society members;
(2) families and dependents of society members; and
(3) children insured by the society.
Ownership, holding, or lease of personal or real property
(b)(1) For the purposes of an institution authorized by subsection (a) of this section, a society may own, hold, or lease personal or real property inside or outside the State.
(2) The property shall be reported in each annual statement of the society, but may not be allowed as an admitted asset of the society.
Reasonable fees for maintenance, treatment, and attendance in institution
(c)(1) Subject to paragraph (2) of this subsection, a society may charge a reasonable fee for maintenance, treatment, and proper attendance in an institution authorized by subsection (a) of this section.
(2) A society may not operate an institution authorized under subsection (a) of this section for profit.
Funeral homes or undertaking establishments
(d) A society may not own or operate a funeral home or undertaking establishment.
Separate accounting for income and disbursements
(e) A society shall maintain a separate accounting for any income and disbursements under this section and report them in its annual statement.
Purposes of society carried out directly or indirectly
(f) The purposes of a society as specified in its laws, and as provided in this section and § 8-411(c)(2) of this subtitle, may be carried out:
(1) directly by the society; or
(2) indirectly:
(i) with respect to activities regulated by the Insurance Commissioner, through a subsidiary or affiliate operating under a certificate of authority, certificate of qualification, or other license issued by the Commissioner; and
(ii) for all other activities, through subsidiary corporations and affiliated organizations.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 183, § 1, eff. Jan. 1, 1998.
MD Code, Insurance, § 8-437, MD INSURANCE § 8-437
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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