Fraternal Benefit Society
A nonprofit organization, often lodge-based, that provides insurance to members on a lodge or assessment basis. State insurance code exemptions often apply.
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Practice This Concept
A fraternal benefit society is best described as a(n):
Nonprofit insurer that issues insurance to its members and is organized under a lodge or representative form of government — A fraternal benefit society is a nonprofit insurer that provides life, health, and related benefits to its members, who belong to a lodge or are represented through a representative form of government. Members typically share common bonds such as religion, ethnicity, or occupation. It is one of the recognized insurer forms alongside stock and mutual companies.
National insurance concept
A fraternal benefit society is best described as an insurer that:
provides benefits to members of a fraternal or social organization — A fraternal benefit society is an incorporated, nonprofit organization that provides insurance benefits to its members, who typically belong to a lodge, church, ethnic group, or similar association. It operates without capital stock, which distinguishes it from stock insurers, and it is organized around the member organization rather than around investors. Fraternals provide life, health, and annuity benefits to their members under a special regulatory framework that recognizes their nonprofit, member-based character. They are regulated as insurers but are structured differently from stock and mutual companies because their purpose centers on the fraternal or social organization that defines membership.
National insurance concept
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