What is a Fraternal Benefit Society in Rhode Island?

A Fraternal Benefit Society is characterized by its organization as an order or lodge that provides insurance benefits to its members who typically share a common bond or affiliation, such as being part of the same profession, religion, or social group. This model is distinct from traditional insurance companies because it relies on mutual aid and shared interests among its members rather than aiming for profit. The society offers various insurance products while also fostering community and camaraderie among its members, often emphasizing social and charitable activities.

This understanding highlights the unique nature of fraternal organizations within the insurance landscape compared to for-profit insurers, which prioritize financial profit, and distinctly different from a cooperative of agents, which would focus more on collaboration among insurance professionals rather than providing member-based insurance services. The option related to shared religious beliefs can be partially true in some contexts, but it does not capture the broader range of fraternal benefit societies that may encompass various affiliations beyond religion. Thus, the emphasis on being an order or lodge that solicits insurance from its members aligns accurately with the definition of a Fraternal Benefit Society in Rhode Island.