The Goodwill Society was formed as a fraternal benefit society to help underprivileged children. The founding members set up the society as a for-profit entity, and established a representative form of government with elected officers. The society also sells life insurance only to members of the society, and is considering offering sickness and accident insurance to its members as well. Which one of the following statements about the society is CORRECT?

A) The society cannot sell sickness and accident insurance to its members.

B) The society must operate under a lodge system, not a representative form of government.

C) The society cannot have elected officers.

D) The society must be operated as a nonprofit entity if it is a fraternal benefit society.

Answer: D) The society must be operated as a nonprofit entity if it is a fraternal benefit society.