State RegulationsNC specificDifficulty 2/5
Which statement best describes a fraternal benefit society under North Carolina insurance law (Article 24, G.S. 58-24-1 and following)?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-24-1 and following, a fraternal benefit society in North Carolina is a nonprofit organization operating on a lodge system with a representative form of government, providing benefits to members who share a common fraternal bond. Societies are governed by a dedicated statutory article rather than by the general rules applicable to commercial insurers, but they are not unregulated.
Why the other options are wrong
- A) Fraternals are nonprofit member organizations, not stock companies selling to the general public.
- B) Fraternals are subject to their own dedicated statutory article; they are not exempt from all regulation.
- C) A fraternal benefit society is a private member organization, not a government program.
Memory hook
Lodge, bond, benefits — a fraternity, not a stock company.