General Insurance PrinciplesCâu 188 / 474
The structural difference between a stock insurer and a mutual insurer is that a mutual:
a.may write only life insurance and not property coverage
b.must be non-profit and may not retain any earnings at all
c.is owned by its policyholders, who may receive dividends
d.is owned by shareholders who elect the board of directors
Giải thích
In a mutual, the policyholders are the owners, they elect the board, and any dividend declared is a return of unused premium rather than a payment on invested capital. The shareholder answer describes a stock insurer, whose dividends go to investors. Mutuals write property and casualty lines widely and do retain earnings as surplus to support their writings.
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