Fraternal Benefit Societies
What are the four points to an non-profit fraternal benefit society?
1. Operates on the lodge system 2. Has a representative form of government 3. Has no capital stock 4. Sells insurance only to it's members
Soliciting membership for a fraternal benefit society that is not licensed in North Carolina is considered to be what?
Class 3 misdemeanor.
Making a false statement under oath in a verified report or declaration is considered to be what?
Class I felony.
An officer, member, or examining physician of a fraternal benefit society who intentionally makes a false or fraudulent statement in a membership application or to obtain money from a fraternal benefit society is guilty of a Class 1 misdemeanor.
Penalties
True or False: Agents of fraternal benefit societies must comply with the same general laws governing licensing that apply to resident and nonresident agents.
TRUE
Fraternal benefit societies authorized to do business in North Carolina must comply with the provisions of the Insurance Code relating to unfair methods of competition and unfair or deceptive acts or practices.
Trade Practices
True or False: Fraternal benefit society agents must comply with the same general laws governing licensing applicable to resident and nonresident agents.
True
What benefits can a fraternal benefit society offer to its members?
life insurance endowment contracts annuities temporary or permanent disability insurance hospital, medical, or nursing benefits monument or tombstone benefits to the memory of deceased members other benefits that life insurers may provide2
A fraternal benefit society is a nonprofit entity that operates on the ________ system, has a representative form of government, has no capital stock, and sells insurance only to its members.
lodge
Are these individuals required to be licensed? Those who are regular, salaried officers, employees, or members of a fraternal benefit society who devote substantial amount of time to activities other than soliciting fraternal insurance contracts and who do not receive commission?
They are NOT required to be licensed
Which of the following is NOT true about fraternal benefit societies? They operate on a lodge system. They have a representative form of government. They have no capital stock. They exist for profit solely for the benefit of their members.
They exist for profit solely for the benefit of their members. A fraternal benefit society is a nonprofit entity that operates on the lodge system, has a representative form of government, has no capital stock sells insurance only to its members.
Which statement regarding the licensing of fraternal benefit society agents is TRUE? They must be licensed as agents but are not required to take the licensing exam. They must be licensed as special agents only. They are not required to be licensed as agents. They must comply with the same licensing requirements that apply to resident and nonresident agents.
They must comply with the same licensing requirements that apply to resident and nonresident agents. - Agents of fraternal benefit societies must comply with the same general laws governing licensing that apply to resident and nonresident agents.
Beatrice is a member of the Supreme Lodge fraternal benefit society. What must Beatrice do before she can sell insurance on its behalf? obtain a restricted agent's license obtain a surplus lines license become a licensed agent with a specialty in fraternal lines insurance comply with the same general licensing requirements that apply to resident agents
comply with the same general licensing requirements that apply to resident agents Agents of fraternal benefit societies must comply with the same general laws governing licensing that apply to resident and nonresident agents.