Fraternal benefit societies are characterized by which of the following?

Fraternal benefit societies are unique organizations that provide insurance benefits to their members, and they are primarily characterized by the requirement of having a lodge system. This means that these societies operate on a membership basis, where individuals typically join a local lodge or chapter, emphasizing camaraderie and mutual aid among members. This lodge structure is integral to their function as fraternal organizations, fostering community and shared interests among members.

The characteristics of the other options do not align with the fundamental nature of fraternal benefit societies. For instance, profiting is not their primary motive; instead, they focus on providing benefits to members. They usually do not offer coverage to non-members, as membership is a core requirement for participation in the benefits available. Furthermore, fraternal societies are not owned by stockholders, as they operate on a non-profit basis, indicating that surpluses are typically reinvested for the benefit of members rather than distributed to shareholders. This non-profit orientation and community focus distinguish them within the insurance landscape.