State RegulationsNC specificDifficulty 2/5
Under North Carolina's fraternal benefit society law (G.S. 58-24-1 and following), a fraternal benefit society is best described as:
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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, fraternal benefit societies operate on a lodge system, are not organized for profit, and provide life, sickness, disability, and similar benefits to their members. Because of their special structure, they are exempt from certain insurance code provisions that apply to commercial insurers, though they remain subject to a dedicated regulatory article enforced by the Commissioner of Insurance.
Why the other options are wrong
- A) Fraternal societies are not ordinary commercial insurers; the code expressly exempts them from certain requirements.
- B) Fraternal societies are not organized for profit and have no shareholders to reward.
- C) Paying life, sickness, and disability benefits to members is the core purpose of a fraternal benefit society.
Memory hook
Fraternal = lodge + nonprofit + member benefits, with statutory exemptions.