Vermont § 4502 - Exemption of certain societies

§ 4502. Exemption of certain societies

• (a) Nothing contained in this chapter shall be so construed as to affect or apply to: (1) grand or subordinate lodges of societies, orders, or associations now doing business
  in this State that provide benefits exclusively through local or subordinate lodges; (2) orders, societies, or associations that 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, their families, and descendants of members, and the
  ladies’ societies, or ladies’ auxiliaries to the orders, societies, or associations; (3) domestic societies that limit their membership to employees of a particular city or
  town, designated firm, business house, or corporation that provide for a death benefit
  of not more than $400.00 or disability benefits of not more than $350.00 to any person
  in any one year, or both; or (4) domestic societies or associations of a purely religious, charitable, or benevolent
  description, which provide for a death benefit of not more than $400.00 or for disability
  benefits of not more than $350.00 to any one person in any one year, or both. (b) A society or association described in subdivision (a)(3) or (4) of this section that
  provides for death or disability benefits for which benefit certificates are issued,
  and society or association included in subdivision (a)(4) that has more than 1,000
  members, is not exempted from the provisions of this chapter but shall comply with
  all its requirements. (c) No society that, by the provisions of this section, is exempt from the requirements
  of this chapter, except any society described in subdivision (a)(2) of this section,
  shall give or allow, or promise to give or allow to any person any compensation for
  procuring new members. (d) A society that provides for benefits in case of death or disability resulting solely
  from accident and that does not obligate itself to pay natural death or sick benefits
  has all of the privileges and is subject to all the applicable provisions and rules
  of this chapter, except that the provisions of this chapter relating to medical examination,
  valuations of benefit certificates, and incontestability do not apply to the society. (e) The Commissioner of Financial Regulation may require from any society or association,
  by examination or otherwise, such information as will enable him or her to determine
  whether the society or association is exempt from the provisions of this chapter. (f) Societies, exempted under the provisions of this section, shall also be exempt from
  all other provisions of the insurance laws of this State. (Added 1959, No. 197, § 42, eff. Nov. 22, 1959; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 203, eff. July 1, 2022.)