A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a

• A. labor union
• B. fraternal benefit society
• C. professional group
• D. association or labor group

Answer: (D)

In group insurance practice, the type of group that has its own constitution and bylaws and exists for purposes other than obtaining insurance is described as an association or labor group. This term covers organizations formed for non-insurance goals—like a trade association, civic club, or other employee or member groups—that still maintain formal governance documents, but whose primary aim isn’t to secure insurance coverage.

Why this fits best: the key idea is a non-insurance purpose with formal structure. A labor union is indeed a kind of association, but the broad label “association or labor group” is the standard term used to describe groups organized for non-insurance reasons. A fraternal benefit society typically centers its activities around fraternal and insurance benefits, so it doesn’t fit the description of being organized for purposes other than obtaining insurance. A professional group can be an association, but the most general, exam-preferred answer is the broad category of association or labor group.