A nonprofit incorporated society that operates solely for the benefit of its members is known as?

A fraternal benefit society is a type of nonprofit organization that is formed primarily for the benefit of its members. These societies typically provide insurance products, including life and health insurance, to their members, often at lower rates. The key characteristic of a fraternal benefit society is its nonprofit nature and the emphasis on serving the community and members rather than generating profit. Members often share a common bond, such as a belief, profession, or geographic location.

In contrast, a stock insurer is a for-profit entity that aims to generate profits for its shareholders. A mutual insurer, while also providing benefits to members, operates on a principle of mutuality, meaning that policyholders are also the owners, but it is generally organized differently from fraternal benefit societies. The Life and Health Insurance Guaranty Association is an organization designed to provide protection to policyholders in case of insurer insolvency and does not operate as a fraternal group.

Understanding the specific structure and purpose of fraternal benefit societies is crucial in distinguishing them from other types of insurance providers.