                                 CODE OF VIRGINIA

EXEMPTION OF CERTAIN SOCIETIES (§ 38.2-4135)

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 of Pythias,
   or the Junior Order of United American Mechanics, exclusive of the beneficiary
   degree or insurance branch of the National Council, Junior Order of 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 this
   Commonwealth which provides death benefits of not more than $500 to any 1
   person, or disability benefits of not more than $300 in any 1 year to any 1
   person, or both;

   4. Contracts of reinsurance business on benefits of fraternal benefit
   societies in this Commonwealth;

   5. Grand or subordinate lodges of societies, orders or associations now doing
   business in this Commonwealth which provide benefits exclusively through local
   or subordinate lodges;

   6. Orders, societies or associations which admit to membership only persons
   engaged in one or more crafts or hazardous occupations, in the same or similar
   lines of business, insuring only their own members and their families, and the
   ladies&#8217; societies or ladies&#8217; auxiliaries to such orders, societies
   or associations;

   7. Domestic societies which limit their membership to employees of a
   particular city or town, designated firm, business house or corporation and
   which provide for a death benefit of not more than $400 to any 1 person, or
   disability benefits of not more than $350 to any 1 person in any 1 year, or
   both;

   8. Domestic societies or associations of a purely religious, charitable or
   benevolent 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 any 1
   year, or both; or

   9. Any association, whether a fraternal benefit society or not, which was
   organized before 1880 and whose members are officers or enlisted, regular or
   reserve, active, retired, or honorably discharged members of the Armed Forces
   or Sea Services of the United States, and a principal purpose of which is to
   provide insurance and other benefits to its members and their dependents or
   beneficiaries.

B. Any such society or association described in subdivisions 7 and 8 of
subsection A which provides for death or disability benefits for which benefit
certificates are issued, and any such society or association included in
subdivision 8 of subsection A which has more than 1,000 members, shall comply
with all provisions of this chapter.

C. No society which, by the provisions of this section, is exempt from the
requirements of this chapter, except any society described in subdivision 6 of
subsection A of this section, shall give or allow, or promise to give or allow
to any person any compensation for procuring new members.

D. Every society which provides for benefits in case of death or disability
resulting solely from accident, and which does not obligate itself to pay
natural death or sick benefits, shall have all privileges and be subject to the
applicable provisions and regulations of this chapter except that the provisions
relating to medical examination, valuations of benefit certificates, and
incontestability shall not apply to such society.

E. The Commission may require from any society or association, by examination or
otherwise, such information as will enable the Commission to determine whether
such society or association is exempt from the provisions of this chapter.

F. Societies, orders or associations exempted under the provisions of this
section shall also be exempt from all other provisions of the insurance laws of
this Commonwealth.

HISTORY: Code 1950, §§ 38-258, 38.1-573; 1952, c. 317, § 38.1-638.5; 1968, c.
654; 1986, c. 562; 1995, c. 321.