Question

Policyholders elect the governing bodies of which of the following types of insurance companies?

1) Life insurance companies
2) Health insurance companies
3) Property and casualty insurance companies
4) All of the above

Answer 1

Policyholders can elect the governing bodies of mutual insurance companies, which can include life insurance, health insurance, and property and casualty insurance companies.

Step-by-step explanation:

Policyholders elect the governing bodies of mutual insurance companies, which can include life insurance companies, health insurance companies, and property and casualty insurance companies. This is typically not the case for stock insurance companies, where the shareholders elect the governing bodies. Mutual insurance companies are owned by the policyholders themselves, and the premiums paid into the company contribute to the ownership stake that comes with voting rights for the election of the company's board of directors or other governing entities. These companies operate on the principle that the policyholders, as owners, should have the ability to influence decisions that affect how policies are structured and how the company is managed.