SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 885.001 - Definitions
In this chapter: (1) "Benefit certificate" means a document issued as written evidence of a benefit contract. (2) "Benefit contract" means an agreement for provision...
- Texas Section 885.002 - Limited Exemption From Insurance Laws
(a) Except as provided by this chapter, a fraternal benefit society is governed by this chapter and is exempt from all other insurance laws of...
- Texas Section 885.003 - Exemption From Taxation
(a) A fraternal benefit society organized or holding a certificate of authority under this chapter, including the former Chapter 10 of this code and Chapter...
- Texas Section 885.004 - Inapplicability To Certain Societies
(a) Except as provided by Subsection (b), this chapter does not apply to: (1) a grand or subordinate lodge of Masons, Odd Fellows, Knights of...
- Texas Section 885.005 - Fraternal Benefit Societies That Provide Benefits Resulting From Accidents Only
(a) A fraternal benefit society that provides benefits for death or disability resulting from accidents only and does not provide death benefits or benefits for...
SUBCHAPTER B STRUCTURE OF FRATERNAL BENEFIT SOCIETY
- Texas Section 885.006 - Treatment Of Certain Grand Lodges
A grand lodge, by whatever name known and without regard to whether incorporated, that holds a charter from any supreme governing body and that was...
- Texas Section 885.051 - Fraternal Benefit Society Defined
A corporation, society, order, or voluntary association is a fraternal benefit society if it: (1) has a lodge system and a representative form of government...
- Texas Section 885.052 - Control Of Fraternal Benefit Society
(a) In this section, "control" has the meaning described by Sections 823.005 and 823.151. (b) Control of a fraternal benefit society must be ultimately vested...
- Texas Section 885.053 - Lodge System Defined
A fraternal benefit society is considered to be operating on the lodge system if the society: (1) has a supreme governing body; and (2) has...
- Texas Section 885.054 - Representative Form Of Government Defined
A fraternal benefit society has a representative form of government if: (1) the society has a supreme governing body constituted as: (A) an assembly, as...
- Texas Section 885.055 - Assembly As Supreme Governing Body
(a) The supreme governing body of a fraternal benefit society is an assembly if the body is composed of: (1) delegates elected directly by the...
- Texas Section 885.056 - Assembly Meetings; Directors
(a) An assembly that is the supreme governing body of a fraternal benefit society shall: (1) meet at least once every four years; and (2)...
- Texas Section 885.057 - Board As Supreme Governing Body
(a) The supreme governing body of a fraternal benefit society is a board if the body is composed of: (1) individuals elected directly by the...
- Texas Section 885.058 - Board Members; Meetings
(a) The term of a member of a board that is the supreme governing body of a fraternal benefit society may not exceed four years....
- Texas Section 885.059 - Location Of Meetings Of Supreme Governing Body
(a) A domestic fraternal benefit society may provide that its supreme governing body may hold meetings in any state, district, province, or territory in which...
- Texas Section 885.060 - Fraternal Benefit Society's Laws Binding
A fraternal benefit society's laws may provide that a lodge or a subordinate officer or member of the society may not waive any provision of...
- Texas Section 885.061 - Amendment Of Fraternal Benefit Society's Laws
(a) A fraternal benefit society transacting business under this chapter shall file with the department a certified copy of each amendment of the fraternal benefit...
- Texas Section 885.062 - Quarterly Lodge Meetings Required
A fraternal benefit society's laws must require each lodge to hold regular meetings at least once each calendar quarter to further the society's purposes. Added...
SUBCHAPTER C MEMBERS
- Texas Section 885.063 - Merger Or Transfer Of Membership Or Funds
(a) A domestic fraternal benefit society may not merge with or accept a transfer of the membership or funds of another fraternal benefit society unless:...
- Texas Section 885.101 - Qualifications For Fraternal Benefit Society Membership
(a) A fraternal benefit society shall specify in the fraternal benefit society's laws or rules: (1) subject to Subsection (b), the eligibility standards for each...
- Texas Section 885.102 - Social Members
A fraternal benefit society may admit social members. A social member may not vote in the management of the insurance affairs of the society. Added...
- Texas Section 885.103 - Children
(a) A fraternal benefit society may organize and operate branches for children on whose lives the society provides insurance or annuities. (b) A child is...
SUBCHAPTER D AUTHORITY TO ENGAGE IN BUSINESS
- Texas Section 885.104 - Grievance Or Complaint Procedures
A fraternal benefit society's laws or rules may provide for grievance or complaint procedures for members. Added by Acts 2001, 77th Leg., ch. 1419, Sec....
- Texas Section 885.151 - Applicability To Certain Fraternal Benefit Societies Continuously Authorized To Engage In Business
This subchapter does not apply to a fraternal benefit society authorized to engage in business in this state on June 1, 1965, as long as...
- Texas Section 885.152 - Eligibility To Provide Benefits
After June 1, 1965, a corporation, society, order, or voluntary association may qualify as a fraternal benefit society as defined by Section 885.051 for the...
- Texas Section 885.153 - Filing Of Articles Of Incorporation Or Association
A corporation, society, order, or voluntary association eligible under Section 885.152 may qualify as a fraternal benefit society by filing with the department: (1) certified...
- Texas Section 885.154 - Name Of Fraternal Benefit Society
The name of a fraternal benefit society may not so closely resemble the name of any society or insurance company engaging in business in this...
- Texas Section 885.155 - Purposes Of Fraternal Benefit Society
(a) The purposes for which a fraternal benefit society is organized may not include more liberal powers than are granted by this chapter. Any lawful,...
- Texas Section 885.156 - Surety Bond
(a) A fraternal benefit society must file with the department a bond in an amount not less than $300,000 and not more than $1.5 million,...
- Texas Section 885.157 - Issuance Of Preliminary Certificate Of Authority
If the purposes of a fraternal benefit society conform to the requirements of this chapter and all provisions of law have been complied with, the...
- Texas Section 885.158 - Powers And Duties Under Preliminary Certificate Of Authority; Qualification
(a) On receipt of a preliminary certificate of authority from the department under Section 885.157, a fraternal benefit society: (1) may solicit from its members...
- Texas Section 885.159 - Termination Of Authority Under Preliminary Certificate Of Authority
(a) Unless a fraternal benefit society has qualified under this subchapter, a preliminary certificate of authority granted under Section 885. 157 is void on the...
SUBCHAPTER E FOREIGN FRATERNAL BENEFIT SOCIETIES
- Texas Section 885.160 - Issuance Of Certificate Of Authority
(a) The department may make an examination and require information in addition to that required by Section 885.158(b) that the department considers advisable. On presentation...
- Texas Section 885.201 - Certificate Of Authority Required
A foreign fraternal benefit society organized and engaging in business before July 1, 1913, that was not authorized to engage in business in this state...
- Texas Section 885.202 - Admission Of Foreign Fraternal Benefit Society
(a) To engage in business in this state, a foreign fraternal benefit society described by Section 885.201 must: (1) have the qualifications required of a...
- Texas Section 885.203 - Refusal To Issue Certificate Of Authority To Foreign Fraternal Benefit Society
(a) If the commissioner refuses to issue a certificate of authority to a foreign fraternal benefit society under Section 885.202, the commissioner shall: (1) make...
- Texas Section 885.204 - Notice Of Intent To Revoke Foreign Fraternal Benefit Society's Certificate Of Authority
(a) The commissioner shall notify a foreign fraternal benefit society engaging in business under this chapter of the commissioner's determination if, following an investigation, the...
- Texas Section 885.205 - Revocation Of Foreign Fraternal Benefit Society's Certificate Of Authority
(a) The commissioner may revoke a foreign fraternal benefit society's certificate of authority to engage in business in this state if, on the date stated...
SUBCHAPTER F POWERS AND DUTIES OF FRATERNAL BENEFIT SOCIETY
- Texas Section 885.206 - Continuance Of Contracts Following Revocation Of Certificate Of Authority
This subchapter may not be construed to prevent a foreign fraternal benefit society that has had its certificate of authority refused under former Article 10.23,...
- Texas Section 885.251 - General Powers
A fraternal benefit society may: (1) make a constitution and bylaws for the government of the society, the admission of its members, the management of...
- Texas Section 885.252 - Powers Of Certain Fraternal Benefit Societies
(a) A fraternal benefit society engaged in business in this state on July 1, 1913, may exercise: (1) each right conferred by this chapter; and...
- Texas Section 885.253 - Principal Office Of Domestic Fraternal Benefit Society
A domestic fraternal benefit society shall have its principal office in this state. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June...
- Texas Section 885.254 - Immunity
(a) A director, officer, employee, member, or volunteer of a fraternal benefit society serving without compensation is not personally liable for damages resulting from an...
- Texas Section 885.255 - Indemnification Or Reimbursement
(a) A fraternal benefit society may indemnify and reimburse a person for expenses reasonably incurred by, and liabilities imposed on, that person in connection with...
- Texas Section 885.256 - Indemnification Or Reimbursement In Relation To Breach Of Duty Prohibited
(a) Except as provided by Subsection (b), a person may not be indemnified or reimbursed under Section 885.255 in relation to: (1) a matter in...
- Texas Section 885.257 - Insurance For Directors, Officers, Employees, Or Agents
(a) A fraternal benefit society may purchase and maintain insurance on behalf of a person who is or was a director, officer, employee, or agent...
- Texas Section 885.258 - Management And Use Of Assets And Funds
(a) A fraternal benefit society shall hold, invest, and disburse all assets for the use and benefit of the society. A member or beneficiary may...
- Texas Section 885.259 - Source Of Funds
(a) A fraternal benefit society shall derive the funds from which the society pays benefits and the funds from which the society defrays its expenses...
- Texas Section 885.260 - Specified Payments
(a) A fraternal benefit society may provide in the fraternal benefit society's laws and benefit certificates for specified payments on account of the expense or...
- Texas Section 885.261 - Control Of Fund By Lodge
(a) This section applies if the constitution and bylaws of the grand lodge or governing body of a fraternal benefit society: (1) provide that all...
- Texas Section 885.262 - Investment Of Fraternal Benefit Society Funds
(a) Except as provided by Subsection (b), a fraternal benefit society may invest its funds only in securities permitted by state law for the investment...
SUBCHAPTER G BENEFITS PROVIDED BY FRATERNAL BENEFIT SOCIETIES
- Texas Section 885.263 - Treatment Of Deferred Claims
(a) A deferred payment or an installment of a claim is considered to be a fixed liability on the occurrence of the contingency on which...
- Texas Section 885.301 - Types Of Benefits Permitted
(a) A fraternal benefit society may provide for the payment of: (1) death benefits in any form; (2) endowment benefits; (3) annuity benefits; (4) benefits...
- Texas Section 885.302 - Issuance Of Benefit Contracts On Variable Basis
A fraternal benefit society may, as provided by a resolution of its supreme governing body, establish and operate one or more separate accounts and issue...
- Texas Section 885.303 - Benefits For Children
(a) A fraternal benefit society may provide by its laws, in addition to other benefits provided for by the fraternal benefit society's laws, for insurance...
- Texas Section 885.304 - Beneficiaries
(a) The owner of a benefit contract may change the beneficiary at any time in accordance with a fraternal benefit society's laws or rules unless...
- Texas Section 885.305 - Organization As Beneficiary
A fraternal benefit society may provide in the fraternal benefit society's laws for the issuance to its members of benefit certificates under which an association,...
- Texas Section 885.306 - Benefit Certificate
(a) A fraternal benefit society may not deliver or issue for delivery in this state a benefit certificate unless the form of the certificate has...
- Texas Section 885.307 - Grace Period
A fraternal benefit society shall include in the terms of a benefit certificate a grace period of at least one month for payment of premiums....
- Texas Section 885.308 - Assignment Of Life Insurance Benefit Contract
A fraternal benefit society may specify the terms for the assignment of a life insurance benefit contract. Added by Acts 2001, 77th Leg., ch. 1419,...
- Texas Section 885.309 - Nonforfeiture Benefits
(a) The value of a nonforfeiture benefit provided under a benefit certificate issued before January 1, 2001, must comply with the law applicable to the...
- Texas Section 885.310 - Enforcing Payment Of Premiums; Control Of Benefit Certificates
A fraternal benefit society may provide for: (1) enforcing payment of premiums; (2) designating beneficiaries; and (3) controlling benefit certificates and all rights, obligations, and...
- Texas Section 885.311 - Deficiency Payments
(a) A fraternal benefit society shall provide in the fraternal benefit society's laws that if the society's reserves for any class of the society's benefit...
- Texas Section 885.312 - Continuation Of Benefit Certificate On Expulsion Or Suspension Of Member
If a fraternal benefit society's laws provide for expulsion or suspension of a member, the benefit certificate must provide that a member who is expelled...
- Texas Section 885.313 - Continuation Of Benefit Certificate Issued On Child
If the membership in a fraternal benefit society of a person responsible for the support of a child on whose account a benefit certificate has...
- Texas Section 885.314 - Responsibility For Payment Of Benefits
(a) An officer or member of the supreme, the grand, or any subordinate body of an incorporated fraternal benefit society is not individually liable for...
- Texas Section 885.315 - Damages For Failure To Timely Pay Benefits
A fraternal benefit society that is liable for a loss and that does not pay benefits before the 61st day after the date of the...
SUBCHAPTER H AGENTS
- Texas Section 885.316 - Exemption Of Benefits
Money or another benefit or charity to be paid or provided by a fraternal benefit society, before or after payment is not subject to attachment,...
- Texas Section 885.351 - Agents
(a) A fraternal benefit society may appoint an agent licensed by the department under Subchapter B, Chapter 4054, to sell benefits listed under Section 885.301(a)...
- Texas Section 885.352 - Exception
(a) Section 885.351(b) does not apply to an agent, representative, or member of a fraternal benefit society who devotes less than 50 percent of the...
SUBCHAPTER I REGULATION OF FRATERNAL BENEFIT SOCIETIES
- Texas Section 885.353 - Employment Of Certain Persons To Solicit Business Prohibited
A fraternal benefit society may not employ or otherwise retain a person to solicit business if the person has had a license revoked under Chapter...
- Texas Section 885.401 - Annual Report
(a) Each fraternal benefit society engaged in business in this state shall annually, on or before March 1: (1) file with the department in the...
- Texas Section 885.402 - Reports Of Certain Grand Lodges
The officers of the supreme state governing body of a grand lodge considered to be a single state organization under Section 885.006 shall make each...
- Texas Section 885.403 - Valuation Of Benefit Certificates
(a) A fraternal benefit society shall include in its report under Section 885.401 a valuation of the society's benefit certificates in force on the preceding...
- Texas Section 885.404 - Mortality Tables; Interest Rates
(a) In valuing benefit certificates under Section 885.403, a fraternal benefit society, at the option of the society, may use: (1) the National Fraternal Congress...
- Texas Section 885.405 - Valuation Of And Separate Fund For Disability Benefits
(a) A fraternal benefit society that provides for disability benefits shall keep the net premiums for disability benefits in a fund separate from all other...
- Texas Section 885.406 - Publication Of Valuation And Condition
A fraternal benefit society shall publish, in the society's official paper, a statement of: (1) the valuation provided by Sections 885.403 and 885.405; and (2)...
- Texas Section 885.407 - Solvency
A fraternal benefit society is considered solvent if its admissible assets are equal to or greater than its liabilities. Added by Acts 2001, 77th Leg.,...
- Texas Section 885.408 - Reserves For Accident And Health Insurance
(a) A fraternal benefit society shall establish reserves for the types of coverage specified by Sections 885.301(a)(4) and (5) in the same manner and to...
- Texas Section 885.409 - Reporting Of Reserves
The report of a fraternal benefit society under Section 885.401 must show as a liability the reserves required by this chapter. Added by Acts 2001,...
- Texas Section 885.410 - Examination Of Domestic Fraternal Benefit Societies
A domestic fraternal benefit society is subject to: (1) Subchapter A, Chapter 86; (2) Subchapter A, Chapter 401; and (3) Sections 401.051, 401.052, 401.054-401.062, 401.151,...
- Texas Section 885.411 - Examination Of Foreign Fraternal Benefit Societies
(a) The commissioner or a person appointed by the commissioner may examine a foreign fraternal benefit society transacting or applying for admission to engage in...
- Texas Section 885.412 - Adverse Publication Prohibited
(a) Pending, during, or after an examination or investigation of a fraternal benefit society, the commissioner may not make public a financial statement, report, or...
- Texas Section 885.413 - Fees
The department shall deposit fees collected under this chapter to the credit of the Texas Department of Insurance operating account. Sections 201.001 and 201.002 apply...
SUBCHAPTER J CONVERSION OF FRATERNAL BENEFIT SOCIETY
- Texas Section 885.414 - Remedies Not Exclusive
(a) This chapter does not prevent or limit any action by or remedy available to the department or the state under Chapter 441 or 443...
- Texas Section 885.451 - Conversion Of Fraternal Benefit Society To Mutual Or Stock Company
(a) Subject to Subsection (b), a fraternal benefit society engaging in business in this state may convert to a mutual life insurance company or incorporated...
- Texas Section 885.452 - Meeting Of Lodge Representatives; Notice
(a) The governing body of a fraternal benefit society that proposes converting to a mutual life insurance company or incorporated stock company shall call a...
- Texas Section 885.453 - Resolution To Convert; Additional Requirements
(a) As provided by the notice under Section 885.452 and after convening the supreme governing body of the fraternal benefit society, the lodge representatives shall...
- Texas Section 885.454 - Conversion Documents
(a) A fraternal benefit society that converts to a mutual life insurance company or incorporated stock company shall file with the department: (1) the certificate...
- Texas Section 885.455 - Sale Of Stock Of Converted Fraternal Benefit Society
(a) If a fraternal benefit society converts to an incorporated stock company, each holder of a benefit certificate or other member of the society has...
- Texas Section 885.456 - Legal Effect Of Conversion To Mutual Life Insurance Company
A fraternal benefit society that converts to a mutual life insurance company is subject to Chapter 882. Added by Acts 2001, 77th Leg., ch. 1419,...
- Texas Section 885.457 - Completion And Legal Effect Of Conversion To Stock Company
(a) The conversion of a fraternal benefit society to an incorporated stock company is complete when the society has: (1) complied with this subchapter and...
- Texas Section 885.458 - Continuing Obligations Of Converted Fraternal Benefit Society
(a) The rights of each member, holder of a benefit certificate, or creditor and the standing of each claim against a fraternal benefit society that...
- Texas Section 885.459 - Name Of Converted Fraternal Benefit Society
The name of a mutual life insurance company or incorporated stock company to which a fraternal benefit society converts: (1) must, if possible, be a...
- Texas Section 885.460 - Principal Office Of Converted Fraternal Benefit Society
The principal office of a mutual life insurance company or incorporated stock company created by the conversion of a fraternal benefit society under this subchapter...
SUBCHAPTER K TERMINATION OF FRATERNAL BENEFIT SOCIETY
- Texas Section 885.461 - Social Or Charitable Clubs Formed By Members Of Converted Fraternal Benefit Society
The members of a converted fraternal benefit society or the policyholders in the new corporation may form local clubs for social and charitable purposes. A...
- Texas Section 885.501 - Discontinuation Of Business By Domestic Fraternal Benefit Society
A domestic fraternal benefit society's certificate of authority becomes void if the society: (1) discontinues business for a period of one year; or (2) has...
- Texas Section 885.502 - Initiation Of Proceedings For Termination Of Domestic Fraternal Benefit Society
(a) The commissioner may advise the attorney general of the commissioner's determination if: (1) after examining a domestic fraternal benefit society, the commissioner determines that...
SUBCHAPTER O CRIMINAL PENALTIES
- Texas Section 885.503 - Issuance Of Injunction And Appointment Of Receiver
(a) If it appears on the trial of an action brought under Section 885.502(b) that the fraternal benefit society should be closed, the court shall:...
- Texas Section 885.701 - False Statements; Criminal Penalty
(a) A person commits an offense if the person wilfully makes a false or fraudulent statement or representation: (1) in or with reference to an...
- Texas Section 885.702 - Soliciting Membership In Unauthorized Fraternal Benefit Society; Criminal Penalty
(a) A person commits an offense if the person solicits membership for or in any manner assists in procuring membership in a fraternal benefit society...
- Texas Section 885.703 - Soliciting Membership In Lodge Of Unauthorized Fraternal Benefit Society; Criminal Penalty
(a) A person commits an offense if the person solicits for or organizes a lodge of a fraternal benefit society without first obtaining from the...
- Texas Section 885.704 - Exception To Solicitation Offenses
Sections 885.702 and 885.703 do not: (1) prohibit a member of an existing lodge from soliciting a person to become a member of the lodge;...
- Texas Section 885.705 - General Criminal Penalty
(a) An officer, agent, or employee of a domestic fraternal benefit society commits an offense if the person neglects, refuses to comply with, or violates...
- Texas Section 885.706 - Other Penalties
Notwithstanding Section 885.705, if another section of this chapter provides a penalty for a violation of the section, the penalty provided in the other section...