Which type of insurer is organized primarily on a nonprofit basis?

A fraternal insurer is organized primarily on a nonprofit basis, providing insurance products and services to members who share a common bond, such as religion, occupation, or social fraternal affiliation. These organizations operate based on the principle of mutual aid among members and often offer policies only to individuals who are part of the fraternal group. The profits generated by a fraternal insurer are typically used to benefit the members and fund community initiatives rather than maximizing shareholder returns, which is a hallmark of for-profit entities.

In contrast, a mutual insurer is owned by its policyholders and also serves a community purpose, but it operates as a for-profit entity aimed at providing dividends or profit returns to its members. Foreign insurers refer to companies that are headquartered in one state but operate in another, while admitted insurers have the necessary licenses to operate in a specific state. These options do not primarily focus on the nonprofit aspect tied to the concept of fraternal organizations.