State RegulationsFL specificDifficulty 2/5
A society organized on the lodge system, without capital stock, wants to transact life and health insurance for its members in Florida. Under which chapter of the Florida Statutes are fraternal benefit societies specifically governed?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 632, Florida Statutes, fraternal benefit societies are governed by a dedicated chapter covering their lodge-system organization, their membership, and the insurance they provide to members and their beneficiaries. Stock and mutual insurers are organized under Chapter 628, and the Insurance Code's administrative and general provisions sit in Chapter 624, but the fraternal's distinct member-based, nonprofit structure has its own statutory home.
Why the other options are wrong
- A) Chapter 624 holds the Insurance Code's administration and general provisions; it does not govern fraternal organization, and fraternals are not organized as stock insurers.
- C) Chapter 641 governs health care service programs such as HMOs - a different entity type entirely; it is not the fraternal societies' governing chapter.
- D) Fraternals are inside the Florida Insurance Code: Chapter 632 regulates their organization and insurance activities; they are not exempt from regulation.
Memory hook
Fraternals live in Chapter 632.