What type of insurance entity is the Knights of Columbus?

The correct answer describes the Knights of Columbus as a fraternal organization. A fraternal organization, such as the Knights of Columbus, is a type of insurance entity that combines social, charitable, and insurance services for its members. These organizations are typically nonprofit and operate on the principle of mutual aid, offering insurance products to members while also promoting community and charitable activities.

Fraternal organizations often provide life insurance, annuities, and other financial products and services exclusively for their members. The Knights of Columbus, in particular, emphasizes community service, social connection, and support among its members, which aligns with the definition of a fraternal organization. This differentiates it from commercial insurers, which primarily exist for profit, and from mutual insurers, which are owned by their policyholders but do not have the social or fraternal focus. A reciprocal insurer is an arrangement among policyholders to insure each other, which also differs from the fraternity model that emphasizes familial bonds among members. Hence, classifying the Knights of Columbus as a fraternal organization reflects its underlying mission and structure accurately.