SECTIONS 10970-10976

10970.  Fraternal benefit societies shall be governed by thischapter and shall be exempt from all other provisions of this code,except: (a) Those provisions prior to Division 1 entitled "GeneralProvisions." (b) Sections 880, 881, 10112, 10114, 10117, 10118, 10119, 10120,10171, 10172, and 10191. (c) Article 15 (commencing with Section 1070) and Article 17(commencing with Section 1100) of Chapter 1 of Part 2 of Division 1. (d) Those provisions specifically referred to in this chapter tothe extent made necessary by such reference. A statute relating to insurance shall not apply to them, unlessthey are expressly designated therein.10971.  This chapter shall not, except as provided by Sections 10972and 10974, affect: (a) A lodge operating under the lodge system, which provides inits bylaws or rules or regulations for the payment of death benefitsnot exceeding one thousand dollars ($1,000) on the death of a memberor for the payment of disability benefits not exceeding one thousanddollars ($1,000) to a member during any period of 12 consecutivecalendar months, or both of those types of benefits. (b) The subordinate branch of a lodge, as a lodge is defined inSection 10972, or any association formed by the members of a lodge,which association confines its membership to the members of suchlodge, which subordinate branch or association (1) is organizedwithout capital stock, (2) is organized and operated solely for thebenefit of its members or their beneficiaries and not for profit, and(3) provides in its bylaws or rules or regulations for the paymentof either or both of the following benefits: (i) a benefit of notexceeding one thousand dollars ($1,000) on the death of a member fromany cause; (ii) a benefit of not exceeding one thousand dollars($1,000) on the accidental death of a member or benefits notexceeding one thousand dollars ($1,000) during any period of 12consecutive calendar months to a member for his or her disability. (c) A lodge operating under the lodge system or any subordinatebranch thereof or any association formed by the members thereof whichassociation confines its membership to the members of such lodge,which subordinate branch or association (1) is organized withoutcapital stock, (2) is organized and operated solely for the benefitof its members or their beneficiaries and not for profit, and (3)provides in its bylaws or rules or regulations for the payment ofdeath benefits not exceeding five thousand dollars ($5,000) on thedeath of a member or for the payment of disability benefits notexceeding one thousand dollars ($1,000) to a member during any periodof 12 consecutive calendar months, or both of those types ofbenefits. (d) An organization authorized to operate pursuant to a superiorcourt judgment issued between January and April of 1940 whether ornot the amount of benefits offered by that organization conforms tothat judgment. (e) Contracts of reinsurance on a plan under subdivisions (a),(b), (c), or (d).10972.  (1) A lodge operating under the lodge system, as this termis used in Section 10971, shall have all of the followingcharacteristics: (a) It is organized without capital stock. (b) It is organized and operated solely for the benefit of itsmembers or their beneficiaries and not for profit. (c) It has a lodge system and representative form of governmentwithin the meaning of Section 10992, holds regular meetings atperiodical intervals, and has a ritualistic form of work, and it hasnot less than 10 subordinate branches with more than a total of 1,000dues-paying, active members in good standing. (2) Any lodge, subordinate branch or association otherwise coveredby Section 10971, which issues to any person a policy or certificateproviding for the payment of benefits, shall comply with all therequirements of this chapter.10973.  The commissioner may require from any society suchinformation as will enable him to determine whether or not suchsociety is exempt from the provisions of this chapter.10974.  A lodge, subordinate branch thereof or association formed bythe members thereof which is exempted from the requirements of thischapter by Section 10971 shall not give or allow, nor promise to giveor allow, any compensation for procuring new members.10975.  Any fraternal benefit society organized and operating withinthe definition set forth in Sections 10990 to 10992 on July 29,1911, providing benefits in case of death or disability resultingsolely from accidents but not obligating itself to pay death or sickbenefits, may obtain a certificate of authority under this chapter.Such society shall have all the privileges and shall be subject toall the provisions of this chapter, except those requiring medicalexamination, valuations of policies, and that the policies specifythe amount of benefits.10976.  Any incorporated fraternal benefit society engaged on July29, 1911, in transacting business in this State may exercise all ofthe rights conferred by this chapter, and all of the rights, powersand privileges not inconsistent with this chapter, which weretheretofore exercised or possessed by it under its charter. Anyunincorporated fraternal benefit society thus engaged may incorporatehereunder. A society already incorporated shall not be required toreincorporate hereunder. Any such society may amend its articles ofincorporation. All such amendments shall be filed with thecommissioner and shall become operative upon such filing, unless alater time is otherwise provided.