SECTIONS 10990-10993 - California Statutes

INSURANCE CODE

SECTION 10990-10993

10990. 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.
When used in this chapter, the word "society," unless otherwise
indicated, shall mean fraternal benefit society.

10991. 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, laws, and ritual, which subordinate lodges or branches
shall be required by the laws of the society to hold regular meetings
at least once a month in furtherance of the purposes of the society,
shall be deemed to be operating on the lodge system.

10992. A society shall be deemed to have a representative form of
government when:
(a) It provides in its constitution or laws for a supreme
legislative or governing body, composed of representatives elected
either by the members or by delegates elected directly or indirectly
by the members, together with such other members as may be prescribed
by the society's constitution and laws;
(b) The representatives elected constitute a majority in number
and have not less than two-thirds of the votes nor less than the
votes required to amend its constitution and laws;
(c) The meetings of the supreme legislative or governing body and
the election of officers, representatives and delegates, by whatever
name known, are held as often as once in four calendar years;
(d) The members, officers, representatives and delegates, by
whatever name known, shall not vote by proxy; and
(e) The officers may be elected by the board of directors if the
board of directors is itself elected by the supreme legislative or
governing body.

10993. Every fraternal benefit society organized or admitted 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.