Which of the following statements is true regarding fraternal benefit societies?

Fraternal benefit societies are unique organizations that provide insurance and benefits to their members, who typically share a common bond, such as a religion, ethnicity, or social affiliation. The statement that reflects this characteristic is that membership is commonly drawn from specific social groups.

These societies often function as non-profit entities where members are encouraged to participate in a community that promotes mutual aid, understanding, and support among those who share similar interests or backgrounds. This communal aspect is fundamental to the operation of fraternal benefit societies, differentiating them from traditional insurance companies that may not require a common bond for membership.

In contrast, the other options present concepts that do not accurately represent the nature of fraternal benefit societies. They do not operate on a for-profit basis, do not focus solely on investment returns, and are not mandated by government requirements, unlike some other types of insurance organizations. Instead, their primary goal is to provide benefits and insurance coverage that enhance the welfare of their members within their specific social frameworks.