Life & Health · Chapter 1 · Company Types
Fraternal Benefit Society
Definition
Nonprofit, no capital stock, conducted solely for the benefit of members and their beneficiaries, operated on a lodge system with ritualistic form of work and a representative form of government (elected officers). Members typically share a common bond (religion/nationality/ethnicity), and insurance is a member benefit, not the sole purpose.
Exam tip
The statutory tests are the lodge system and the representative form of government (F.S. 632.601) — "common bond" is descriptive shorthand, not the legal element.
Related terms