Question

Which of the following statements about mutual insurers is true? Group of answer choices They are legally organized as partnerships They are owned by their stockholders They have a board of directors which is selected by state insurance departments They may pay dividends to their policyholders.

Answer 1

It is True that mutual insurers may pay dividends to their policy owners.

Step-by-step explanation:

A mutual insurance agency is an insurance agency claimed altogether by its policyholders. Any benefits earned by a common insurance agency are either held inside the organization or discounted to policyholders as profit appropriations or diminished future premiums.

Its policyholders possess a standard insurance agency. Surplus might be appropriated to policyholders as profits or held by the backup plan in return for decreases in future premiums.