This chapter does not apply to a fraternal benefit society that:

1. (1) sells insurance policies only as an incidental benefit to its members; and

2. (2) on September 6, 1955, was:

   1. (A) organized and licensed by the department as a fraternal benefit society; or
   2. (B) exempt under former Article 10.12 or 10.38, revised as Section 885.004.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.