Which of the following is a type of insurance company?

Which of the following is a type of insurance company?

• A. Investment company
• B. Fraternal
• C. Retail company
• D. Non-profit organization

Answer: (B)

A fraternal organization is a type of insurance company that is typically formed by a group of people sharing a common bond, such as a profession, religion, or ethnicity. These organizations provide insurance benefits to their members and often promote social and charitable activities as part of their mission. Unlike traditional insurance companies that are primarily focused on profit, fraternal organizations often operate on a not-for-profit basis and may offer lower premiums or additional benefits to their members due to their structure. In contrast, investment companies focus primarily on pooling and managing investments rather than providing insurance products. Retail companies are involved in selling goods and services directly to consumers and do not classify as insurance providers. Non-profit organizations might provide a range of services, but they are not specifically defined as insurance companies. Thus, "fraternal" correctly identifies a specific type of insurance provider within the broader insurance industry.

A fraternal organization is a type of insurance company that is typically formed by a group of people sharing a common bond, such as a profession, religion, or ethnicity. These organizations provide insurance benefits to their members and often promote social and charitable activities as part of their mission. Unlike traditional insurance companies that are primarily focused on profit, fraternal organizations often operate on a not-for-profit basis and may offer lower premiums or additional benefits to their members due to their structure.

In contrast, investment companies focus primarily on pooling and managing investments rather than providing insurance products. Retail companies are involved in selling goods and services directly to consumers and do not classify as insurance providers. Non-profit organizations might provide a range of services, but they are not specifically defined as insurance companies. Thus, "fraternal" correctly identifies a specific type of insurance provider within the broader insurance industry.