A group of individuals forms an association based on common ethnic origin with the primary goal of providing mutual aid and insurance benefits to its members and their families. This organization operates not for profit. What type of insurer is this most likely to be?

Question: A group of individuals forms an association based on common ethnic origin with the primary goal of providing mutual aid and insurance benefits to its members and their families. This organization operates not for profit. What type of insurer is this most likely to be?

Answer options: ✅ Fraternal benefit society

• Stock life insurance company
• Mutual life insurance company
• Proprietary insurer

Correct answer: Fraternal benefit society

Explanation: A fraternal benefit society is a non-profit organization that provides insurance benefits to its members, often sharing a common bond (e.g., religious, ethnic, or vocational), along with social, intellectual, or moral purposes.