State RegulationsNC specificDifficulty 2/5
Which characteristic describes a fraternal benefit society operating under North Carolina's Article 24 (G.S. 58-24-1)?
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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 Article 24, a fraternal benefit society is a not-for-profit society operating under a lodge system with a ritual and a representative form of government, providing benefits to members and their dependents. Fraternals are exempt from many Chapter 58 provisions but remain governed by Article 24 itself.
Why the other options are wrong
- A) Fraternal benefit societies are not organized for profit and have no stockholders to pay.
- B) Coverage flows through membership in the society, not through sales to the general public at large.
- C) Article 24 regulates fraternals directly, so the exemption from other Chapter 58 provisions is not total.
Memory hook
Lodge, ritual, representatives: that is a fraternal.