What is a key characteristic of a fraternal benefit society?

A key characteristic of a fraternal benefit society is that it provides benefits exclusively to its members. These organizations typically operate as non-profit entities, focusing on offering various types of insurance and other benefits to their members, who usually share a common bond such as religion, ethnicity, or professional affiliation. This focus on mutual aid and support is central to their operations, distinguishing them from traditional insurance companies that aim to generate profits for shareholders.

While it is true that they may be regulated by the government, that aspect does not capture the essence of what a fraternal benefit society is. The member-centric model emphasizes the social and communal aspects of these societies, where the aim is to serve the needs of members rather than maximizing profit for external stakeholders.