General Insurance
Which feature identifies a fraternal benefit society?
Answer and explanation
Answer: A. A fraternal benefit society is a not-for-profit membership organization without capital stock that issues benefit certificates to its members. A stock company has shareholders, a government insurer is a public body, and a reciprocal exchange is a distinct form in which subscribers exchange contracts.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fraternal benefit societies
More general insurance questions
- Why is an insurance contract classified as a conditional contract?
- Why is an insurance policy a contract of adhesion?
- A business installs sprinklers throughout its warehouse. Which method of handling risk is that?
- A firm raises the deductible on its cover and keeps the first layer of loss itself. Which method of handling risk is that?
- A homeowner stores petrol in an attached garage. In risk terms, what is the petrol?
- A life insurance policyowner may stop paying premiums at any time without legal penalty, but the insurer is legally bound to pay the death benefit if the insured dies while the policy is in force. This situation best illustrates which legal characteristic of an insurance contract?
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