Fraternal Insurance
Fraternal insurance is a specialized form of insurance that is specifically geared towards members of fraternal organizations. Fraternal organizations are groups that are based on common interests or bonds, often oriented around social, religious, or service orientations. This type of insurance offers group coverage which often includes life insurance, disability insurance, and other member benefits. Unlike typical insurance policies, which are offered by insurance companies aiming solely for profit, fraternal insurance plans also support the communal and charitable objectives of the organization.
Key Features of Fraternal Insurance:
- Member-Exclusive: Only available to individuals who are members of a fraternal organization.
- Group Coverage Benefits: Provides benefits such as group life policies or disability cover based on employment status or affiliation to the fraternal group.
- Supports Fraternal Goals: Portions of the premiums may fund charitable causes or activities conducted by the organization.
Governing Bodies and Regulations:
Fraternal insurance is overseen by various state insurance departments, and is also subject to regulations such as the NAIC Model Fraternal Code. This model code helps ensure that fraternal insurance societies operate in a solvent, ethical manner and contribute to the protective laws of insurance.
External Source and Further Reading: -You can learn more about fraternal insurance including the underlying principles and operational guzdance by referring to this comprehensive guide on fraternal societies and their insurance operations provided by the National Association of Insurance Commissioners (NAIC).
