California Code, Insurance Code - INS § 11041
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An admitted society may, by the issuance of certificates, provide for payment to its members of insurance benefits contained within the following classes:
(b) All forms of disability insurance, as defined in Section 106 , except group insurance.
Except as otherwise provided in this chapter, benefits may be paid in any manner compatible with their nature.
Any benefits authorized in this section, or combinations thereof, may be provided in the same or separate certificates.
A society shall specify in its laws or rules those persons who may receive benefits or be covered by benefits through the society. For all coverages, the member shall be the applicant or the insured provided that if the member is the applicant, there shall be a bona fide familial or other dependent relationship between the member and the insured or beneficiary. Every society, by its constitution, laws, or rules, may limit the scope of beneficiaries only to the extent required by federal law governing fraternal benefit societies. The society may specify the terms and conditions on which benefit certificates may be assigned.
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