State Representative Mike Henne (R-Clayton) recently introduced legislation to implement standards for Fraternal Benefit Societies, in an effort to protect the policyholders and to make the organizations’ insurance guidelines more comparable to the requisite operations of every other insurance company.

A Fraternal Benefit Society is a non-profit, mutual aid organization funded in part by the sale of life insurance, annuities and other service products to their members. Although Fraternals must comply with state and federal regulations in regards to their financial services and must be licensed by the insurance department of the state, they are not on a level playing field with other insurance companies. They are exempt from insurance laws of the state unless specifically designated in the law or otherwise stated in Chapter 3921 of the Ohio Revised Code.

“There are currently 58 Fraternal Benefit Societies that do business in Ohio, 10 of which are headquartered in Ohio,” Henne said. “The overall impact of this legislation will provide consumer protection safeguards for Ohioans who may purchase products from Fraternals, in addition to establishing fair standards for both Fraternal Benefit Societies and insurance companies.”

This legislation will be assigned to a House committee, where it will undergo further consideration and debate.