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

• A. Fraternal order
• B. Association or labor group
• C. Credit union
• D. Professional association

Answer: (B)

In group insurance, the type of group is defined by its purpose and its formal governance structure. A group that has a constitution and bylaws and has been organized for reasons other than obtaining insurance fits the definition of an association or labor group. The key idea is that the group exists first for a shared interest or purpose (professional, social, labor-related, etc.), with formal rules and an ongoing structure, rather than being created primarily to obtain insurance coverage.

This distinction matters for underwriting and eligibility because an association or labor group presents a stable, membership-based base of individuals who join for the association’s purposes, not to secure insurance as the primary objective. While fraternal orders or professional associations can also be organized with rules, they’re often categorized differently based on their characteristic aims and activities; credit unions are financial cooperatives, not membership groups formed around a common purpose for insurance. Therefore, the best fit for a group meeting the described criteria is an association or labor group.