(a) A fraternal benefit society shall derive the funds from which the society pays benefits and the funds from which the society defrays its expenses from:
(1) premiums paid by members of the society; and
(2) accretions of those funds.
(b) A domestic or foreign fraternal benefit society may not engage in business in this state unless the society provides for stated premiums sufficient to permit meeting the obligations contracted, when valued in accordance with the reserving standards specified by this chapter.

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