What type of insurance company is specifically formed to provide insurance for members of an affiliated organization?

The correct answer is Fraternal Benefit Society. This type of insurance company is established specifically to provide insurance and other benefits to members of a particular fraternal organization. These societies offer various insurance packages, typically life insurance, to their members as part of their mission to promote social and charitable activities within the organization.

Members usually share a common bond, such as a religious affiliation, occupation, or ethnicity, and the services provided often extend beyond insurance to include social support and community engagement. The fraternal benefit society model is unique, as it often includes mutual assistance among members, promoting a sense of community and shared purpose.

In contrast, the other types of insurance companies don’t focus exclusively on members of affiliated organizations. A mutual insurance company is owned by its policyholders and does not have the specific fraternal or communal aspect. A stock insurance company is a profit-driven enterprise owned by shareholders, while a health maintenance organization (HMO) primarily provides managed health care services rather than insurance specifically for members of an organization.