State RegulationsNC specificDifficulty 1/5
Which portion of the North Carolina Insurance Code governs fraternal benefit societies?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Fraternal benefit societies are governed by Article 24 of Chapter 58, beginning at G.S. 58-24-1, which provides the statutory framework for these lodge-based, mutual benefit organizations that operate separately from commercial insurers. The article sets out their organization, licensing, and operational requirements.
Why the other options are wrong
- B) Article 50 contains general regulations such as the small-employer and payroll-deduction premium rules, not fraternal society law.
- C) Article 51 governs the nature of individual accident and health policies and their standard provisions.
- D) Article 62 creates the North Carolina Life and Health Insurance Guaranty Association, which has no bearing on fraternal societies.
Memory hook
Fraternals live in Article 24 - lodge law, not commercial law.