38.2-4135 - Exemption of certain societies.
§ 38.2-4135. Exemption of certain societies.
A. Nothing contained in this chapter shall be construed to affect or apply to:
1. Grand or subordinate lodges of Masons, Odd Fellows, or Knights of Pythias,exclusive of the insurance department of the Supreme Lodge Knights ofPythias, or the Junior Order of United American Mechanics, exclusive of thebeneficiary degree or insurance branch of the National Council, Junior Orderof United American Mechanics;
2. Similar societies which do not issue insurance certificates;
3. An association of local lodges of a society now doing business in thisCommonwealth which provides death benefits of not more than $500 to any 1person, or disability benefits of not more than $300 in any 1 year to any 1person, or both;
4. Contracts of reinsurance business on benefits of fraternal benefitsocieties in this Commonwealth;
5. Grand or subordinate lodges of societies, orders or associations now doingbusiness in this Commonwealth which provide benefits exclusively throughlocal or subordinate lodges;
6. Orders, societies or associations which admit to membership only personsengaged in one or more crafts or hazardous occupations, in the same orsimilar lines of business, insuring only their own members and theirfamilies, and the ladies' societies or ladies' auxiliaries to such orders,societies or associations;
7. Domestic societies which limit their membership to employees of aparticular city or town, designated firm, business house or corporation andwhich provide for a death benefit of not more than $400 to any 1 person, ordisability benefits of not more than $350 to any 1 person in any 1 year, orboth;
8. Domestic societies or associations of a purely religious, charitable orbenevolent description, which provide for a death benefit of not more than$100 or for disability benefits of not more than $150 to any 1 person in any1 year, or both; or
9. Any association, whether a fraternal benefit society or not, which wasorganized before 1880 and whose members are officers or enlisted, regular orreserve, active, retired, or honorably discharged members of the Armed Forcesor Sea Services of the United States, and a principal purpose of which is toprovide insurance and other benefits to its members and their dependents orbeneficiaries.
B. Any such society or association described in subdivisions 7 and 8 ofsubsection A which provides for death or disability benefits for whichbenefit certificates are issued, and any such society or association includedin subdivision 8 of subsection A which has more than 1,000 members, shallcomply with all provisions of this chapter.
C. No society which, by the provisions of this section, is exempt from therequirements of this chapter, except any society described in subdivision 6of subsection A of this section, shall give or allow, or promise to give orallow to any person any compensation for procuring new members.
D. Every society which provides for benefits in case of death or disabilityresulting solely from accident, and which does not obligate itself to paynatural death or sick benefits, shall have all privileges and be subject tothe applicable provisions and regulations of this chapter except that theprovisions relating to medical examination, valuations of benefitcertificates, and incontestability shall not apply to such society.
E. The Commission may require from any society or association, by examinationor otherwise, such information as will enable the Commission to determinewhether such society or association is exempt from the provisions of thischapter.
F. Societies, orders or associations exempted under the provisions of thissection shall also be exempt from all other provisions of the insurance lawsof this Commonwealth.
(Code 1950, §§ 38-258, 38.1-573; 1952, c. 317, § 38.1-638.5; 1968, c. 654;1986, c. 562; 1995, c. 321.)