Fraternal Insurance

A form of mutual life, and perhaps, also, health and accident, insurance. Its distinguishing characteristics seem to be (a) that it is written on members of a fraternal or beneficial society only, and (b) that the organization itself is the insurer. The premiums are usually paid by way of assessment or monthly dues, rather than by annual premium, and may or may not involve the creation of a reserve fund.

The form of life or accident insurance furnished by a fraternal beneficial association, consisting in the undertaking to pay to a member, or his heirs in case of death, a stipulated sum of money, out of funds raised for that purpose by the payment of dues or assessments by ali the members of the association.

— Guaranty insurance. a contract whereby one, for a consideration, agrees to indemnify another against loss arising from the want of integrity or fidelity of employes and persons holding positions of trust, or embezzlements by them, or against the insolvency of debtors, losses in trade, loss by non-payment of notes, or against breaches of contract. See People v. Rose, 174 111. 310, 51 N. E. 246, 44 In R. A. 124; Co.wles v. United States Fidelity & Guaranty Co., 32 Wash. 120, 72 Pac. 1032.

Defined under Insurance in Black's Law Dictionary.