Which of the following statements about mutual insurers is true?
A)They are legally organized as partnerships.
B)They have a board of directors which is selected by state insurance departments.
C)They are owned by their stockholders.
D)They may pay dividends to their policyowners.

Question

Quizplus · Accepted Answer

Mutual insurers are owned by their policyholders and may pay dividends to them. They are not legally organized as partnerships and do not have a board of directors selected by state insurance departments. They are also not owned by stockholders.

Which of the Following Statements About Mutual Insurers Is True