What characterizes a fraternal benefit society?

A fraternal benefit society is characterized primarily as a non-profit organization that provides insurance and other benefits to its members. These societies are usually formed around a common bond, such as religious affiliation, ethnic background, or social interests, and they focus on mutual aid for their members. Members often share a commitment to communal values and support one another, with the society functioning to enhance these connections through providing insurance benefits, financial assistance, and social activities.

Non-profit organizations do not distribute profits to owners or shareholders. Instead, any surplus income is usually reinvested into the organization to improve member services or to fund various community projects, which is a fundamental aspect of fraternal benefit societies. This distinct structure differentiates them from for-profit entities that prioritize shareholder profits.

The other options describe entities or functions that do not align with the principles of a fraternal benefit society. For instance, for-profit companies focus on shareholder returns, while an exchange of insurance products among corporations does not inherently involve the mutual support characteristic of fraternal organizations. Additionally, a government entity's role is focused on regulation rather than provision of benefits to members, highlighting how fraternal benefit societies exist outside these frameworks.